Zenith National Insurance Corp. (NYSE:ZNT - News) today announced that a purported class action complaint was filed in the United States District Court for the Central District of California by Kathleen Roche d/b/a Back Doctors Chiropractic on behalf of herself and a purported class of similarly situated providers against Zenith Insurance Company.
The complaint alleges that defendants improperly discounted medical bills that were submitted for payment. Zenith has not yet been served a copy of the complaint.
The Company believes that the complaint is without merit and intends to defend the litigation vigorously.
Zenith is a specialty workers' compensation insurer with headquarters in Woodland Hills, California.
Some statements in this press release are known as "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements about the Company's beliefs and intentions regarding the reported lawsuit. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements, including a ruling by a court that is adverse to the Company's position and other uncertainties and matters beyond the Company's control inherent in legal proceedings. These forward-looking statements are based on the information currently available to the Company and speak only as of the date of this press release. The Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Thursday, August 2, 2007
XL Capital posts higher 2nd quarter net, beats view
XL Capital Ltd. (XL.N: Quote, Profile, Research), one of the largest Bermuda insurers and reinsurers, said on Tuesday that earnings rose in the second quarter, helped by a gain on the sale of part of Security Capital Assurance Ltd.
XL Capital said net earnings were $544.5 million, or $3.00 a share, up from $377.1 million, or $2.10 a share, in the year- earlier quarter.
The Hamilton, Bermuda-based provider of backup coverage for the property casualty industry said operating earnings were $516.2 million or $2.84 a share.
Analysts, who use operating earnings to measure performance because it excludes investments, had on average expected the insurer to earn $2.47 a share, according to Reuters Estimates.
In the year ago quarter, XL earned $375.8 million, or $2.10 a share, from operations.
It closed on the New York Stock Exchange at $79, down 4.8 percent. But in the last 12 months, XL rose about 25 percent, or nearly double the gain in the Standard & Poor's insurance index (.GSPINSC: Quote, Profile, Research).
In the latest quarter, the reinsurer was able to retain more than 9 cents of each premium dollar it earned after expenses and claims, up more than 4 cents from a year earlier.
"They had good-looking underwriting profitability, but I'm concerned about their investments," said Bill Bergman, an analyst with Morningstar.
During the quarter, XL recorded a gain of $81.3 million for the sale of 16.6 percent of Security Capital Assurance Ltd., a financial guaranty company in which XL now owns a 46 percent stake.
But total net realized investments showed a loss of $63 million excluding the gain on SCA. Also, net unrealized losses on investments were $309.9 million, compared with gains of nearly that much earlier in the year.
Bergman said that could signal the company has had losses in the subprime market.
"We'll wait and see what they say on their call tomorrow," he added.
XL Capital said net earnings were $544.5 million, or $3.00 a share, up from $377.1 million, or $2.10 a share, in the year- earlier quarter.
The Hamilton, Bermuda-based provider of backup coverage for the property casualty industry said operating earnings were $516.2 million or $2.84 a share.
Analysts, who use operating earnings to measure performance because it excludes investments, had on average expected the insurer to earn $2.47 a share, according to Reuters Estimates.
In the year ago quarter, XL earned $375.8 million, or $2.10 a share, from operations.
It closed on the New York Stock Exchange at $79, down 4.8 percent. But in the last 12 months, XL rose about 25 percent, or nearly double the gain in the Standard & Poor's insurance index (.GSPINSC: Quote, Profile, Research).
In the latest quarter, the reinsurer was able to retain more than 9 cents of each premium dollar it earned after expenses and claims, up more than 4 cents from a year earlier.
"They had good-looking underwriting profitability, but I'm concerned about their investments," said Bill Bergman, an analyst with Morningstar.
During the quarter, XL recorded a gain of $81.3 million for the sale of 16.6 percent of Security Capital Assurance Ltd., a financial guaranty company in which XL now owns a 46 percent stake.
But total net realized investments showed a loss of $63 million excluding the gain on SCA. Also, net unrealized losses on investments were $309.9 million, compared with gains of nearly that much earlier in the year.
Bergman said that could signal the company has had losses in the subprime market.
"We'll wait and see what they say on their call tomorrow," he added.
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