Zenith Net Income Plummets in Second Quarter

Zenith National Insurance Corp. on Tuesday reported net income of $28.4 million in the second quarter of 2008, down from $70.3 in the prior-year quarter.Zenith Chairman and President Stanley Zax said in a press release that the carrier would likely have to raise rates by 5% next year to accommodate new benefit schedules in California that will take effect on Jan. 1. The state adjusts maximum benefits annually according to changes in the average weekly wage.Zenith's second-quarter financial report showed the insurer is no longer enjoying the declining loss-ratios that spread throughout the indu...