AM Best affirms the credit ratings of members of Zenith National Insurance Group | Business Insurance

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OLDWICK, New Jersey–(COMMERCIAL WIRE)–I am better has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Zenith Insurance Company and ZNAT Insurance Company, which are members of Zenith National Insurance Group (Zenith National) and are domiciled in Woodland Hills, CA. The outlook on these Credit Ratings (ratings) is stable.

The ratings reflect Zenith National’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and adequate enterprise risk management.

The rating affirmations reflect the group’s continued strong operating profitability in the workers’ compensation market despite challenging market conditions in this line of business. Zenith’s strong balance sheet assessment is supported by its consistently stronger risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and track record of favorable loss reserve development, which has materially benefited technical income in recent years. Zenith National’s niche experience and presence in the farm workers’ compensation market has provided inroads toward developing its property/casualty ancillary offerings for clients in that space. These products have been profitable, which has helped partially mitigate the impact of weakening market conditions in the workers’ compensation market in recent years.

Zenith also benefits from the financial flexibility provided by Fairfax Financial Holdings Limited, the ultimate publicly traded parent, which maintains financial leverage that is in line with its current ratings, as well as additional sources of liquidity given its access to equity markets. capital and lines of credit.

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