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AM Best Upgrades Issuer Credit Ratings of Zenith National Insurance Group’s Members

AM Best has upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” (Excellent) from “a” (Excellent) and affirmed the Financial Strength Rating 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 of 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 appropriate enterprise risk management (ERM).

The upgrade of the Long-Term ICR reflects Zenith National’s position as a member of the Fairfax Financial Holdings Limited (Fairfax), which includes the implicit support available from its affiliation with Fairfax. As part of the Fairfax group, the insurance operations benefit from the favorable financial flexibility and significant levels of cash and marketable securities held at the ultimate holding company level. In addition, Zenith National benefits from shared resources including ERM, reinsurance, actuarial, talent and investment portfolio management services among other less quantifiable benefits such as best practices and capital management.

Zenith National continues to record solid operating profitability in the workers’ compensation market despite this segment’s challenging market conditions. Zenith National’s very strong balance sheet strength assessment is supported by its risk-adjusted capitalization being consistently at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and its steady track record of favorable loss reserve development, which has materially benefited its underwriting income. Zenith National’s niche expertise and presence in the agricultural workers’ compensation market has provided inroads toward developing its ancillary property/casualty offerings to clients in that space. These products have been profitable, and despite their recent increase in volatility, they have helped to mitigate partially the impact of softening market conditions in the workers’ compensation market over the past several years.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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