Zenith National Insurance (ZNT) 8-K/A Acquisition or disposition of assets

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Exhibit 99.2

Group Financial Statements
of
Advent Capital (Holdings) PLC
as of and for the six months ended 30 June 2002 (unaudited),
together with related notes.

ADVENT CAPITAL (HOLDINGS) PLC

SUMMARY FINANCIAL STATEMENTS
30 JUNE 2002
Summary Financial Statements
30 June 2002

1.

Group Profit and Loss Account

2.

Group Balance Sheet

3.

Group Cash Flow Statement

4.

Basis of Preparation

5.

Group Balance on Technical Account

6.

Group Non Technical Account

7.

Company Balance Sheet

8.

Company Profit and Loss Account

ADVENTCAPITAL (HOLDINGS) PLC

Group Profit & Loss Account
General Business Technical Account

	Six months ended 30.6.2002				Year Ended 31.12.2001
	£'000s		£'000s		£'000s		£'000s
Gross premiums written			124,722				206,398
Outwards reinsurance premiums			(20,324	)			(36,530	)
Net premiums written			104,398				169,868
Change in the gross provision for unearned premiums			(51,926	)			16,153
Reinsurers' share			(2,125	)			(28,452	)
Earned premiums, net of reinsurance			50,347				157,569
Allocated Investment Income			2,912				7,153
Total technical income			53,259				164,722
Claims paid
—gross amount	(89,045	)			(191,302	)
—reinsurers' share	45,562				85,212
	(43,483	)			(106,090	)
Change in the provision for claims
—gross amount	(180,684	)			(306,685	)
—reinsurers' share	137,177				198,513
	(43,507	)			(108,172	)
Claims incurred, net of reinsurance			(86,990	)			(214,262	)
Change in other Technical Provisions			41,767				47,548
Net operating expenses			(10,050	)			(44,464	)
Balance on technical account			(2,014	)			(46,456	)
Non Technical Account
Investment Income			444				1,169
Other Income			585				1,033
Other charges			3,350				4,619
Profit/(Loss) on Ordinary Activities before Tax			(4,335	)			(48,873	)
Tax on profit on ordinary activities			197				103
Profit/(Loss) on Ordinary Activities after Tax			(4,532	)			(48,976	)
Retained (Loss)/Profit brought forward			(51,273	)			(2,297	)
Retained (Loss)/Profit carried forward			(55,805	)			(51,273	)

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ADVENTCAPITAL (HOLDINGS) PLC

Group Balance Sheet
30 June 2002

	30 June 2002						31 December 2001
	At Lloyd's		Corporate		Total		At Lloyd's		Corporate		Total
	£'000s		£'000s		£'000s		£'000s		£'000s		£'000s
Assets
Tangible Fixed Assets			686		686				810		810
Intangible Fixed Assets			10,476		10,476				10,875		10,875
Investments	121,417		0		121,417		106,090		0		106,090
Reinsurer's share of technical provisions:
Provision for unearned premiums	10,735				10,735		13,329				13,329
Provision for outstanding claims	453,063				453,063		284,819				284,819
Debtors	221,091		634		221,725		134,107		996		135,103
Cash	17,211		24,759		41,970		7,324		24,500		31,824
Overseas deposits	10,077				10,077		7,215				7,215
Prepayments & accrued income	23,867		3,122		26,989		28,146		3,695		31,841
Total assets	857,461		39,677		897,138		581,030		40,876		621,906
Liabilities
Capital & reserves:
Called-up share capital			11,316		11,316				11,316		11,316
Share premium account			28,802		28,802				28,802		28,802
Other reserves (merger)			(4,308	)	(4,308	)			(4,308	)	(4,308	)
Profit & loss account	(53,846	)	(1,959	)	(55,805	)	(47,439	)	(3,834	)	(51,273	)
Share holders funds	(53,846	)	33,851		(19,995	)	(47,439	)	31,976		(15,463	)
Technical provisions:
Other technical provisions	(71,225	)			(71,225	)	(63,035	)			(63,035	)
Provision for unearned premiums	157,890				157,890		105,456				105,456
Provision for outstanding claims	708,309				708,309		507,392				507,392
	794,974				794,974		549,813				549,813
Provision for other charges			0		0				90		90
Creditors	98,133		8,228		106,361		76,798		1,427		78,225
Accruals & deferred income	15,698		100		15,798		8,705		536		9,241
Total liabilities	854,959		42,179		897,138		587,877		34,029		621,906
	2,502		(2,502	)	0		(6,847	)	6,847

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ADVENT CAPITAL (HOLDINGS) PLC

Group Cashflow Statement

	Six months ended 30.6.2002
	£'000's		£'000's
Net Cash Inflow from Operating Activities			27,921
Return on Investments and Servicing of Finance			444
Investing Activities
Additions to tangible fixed assets	(30	)
Net Cash Outflow from Investing Activities			(30	)
Net movement in syndicates' portfolio investments			(15,327	)
Increase in net funds in the period			13,008

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ADVENTCAPITAL (HOLDINGS) PLC

Basis of Preparation

        The Summary Financial Statements have been prepared in accordance with the Group's accounting policies as stated in the 31 December 2001 group accounts.

Post Balance Sheet Event

        In July 2002, Advent Capital (Holdings) PLC (the "Company") conducted an Open Offer and Placing for an additional 60,058,737 of its Ordinary Shares at 50 pence a share. All conditions to the issuance of the additional shares were met on August 23, 2002 when Lloyd's and the Financial Services Authority provided the necessary approvals. The Company realized net proceeds of £29,704,200 (gross proceeds of £30,029,368 less expenses of £325,168) from the Open Offer and Placing and increased its net assets by that amount.

Underwriting Results

        For 2001 and prior years of account ultimate loss ratios are based on the mid range Syndicate Quarterly Reporting (SQR) forecast results as reported to Lloyd's at 30 June 2002. Some years show profits for the six months as a result of the mid range SQR forecast result being better than the Lloyd's Solvency based ultimate loss ratios adopted at the year end.

        For the 2002 years of account of Syndicates 780 and 2 an ultimate net loss ratio of 70% was applied to the net earned premium at 30 June 2002. The premium earning profile of each syndicate resulted in the earned element of premiums written being 37% for Syndicate 2 and 15% for Syndicate 780. The lower percentage of Syndicate 780 is largely attributable to its level of Hurricane exposure causing the incidence of risk against which premiums are earned to be skewed towards the second half of the year.

        In summary, 2002 premiums written and earned at 30 June 2002 were:

	Written Premium Income	Unearned	Earned
	£m	£m	£m
Syndicate 2	95	60	35
Syndicate 780	120	102	18

        [Figures are at Syndicate level and are gross of brokerage and other acquisition costs. ROE £1=$1.52 and C$2.32]

DIFFERENCES BETWEEN ADVENT CAPITAL ACCOUNTING PRINCIPLES AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

        The accounting policies, under which the Group Accounts are prepared, conform with the Companies Act 1985, and with the ABI SORP ("Advent Group Accounting Principles"), which differ in certain respects from generally accepted accounting principles in the United States ("U.S. GAAP"). Differences which have a significant effect on consolidated net income and shareholders' equity are as follows:

ACQUISITION ACCOUNTING

        On 23 November 1999, the Company acquired the remaining 75% of the equity shares of B F Caudle Agencies Limited ("B F Caudle"). The acquisition was accounted for using merger accounting in accordance with Financial Reporting Standard number 6 (FRS 6), and an arising merger reserve of £4,308,102 was recorded by the Company in shareholders' equity. In addition, under FRS 6,

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legal and professional fees incurred in connection with the acquisition of £521,996 were not included in the fair value of assets and liabilities acquired, but were instead included in post acquisition costs and were charged to the Group Profit and Loss Account in 1999. Under U.S. GAAP, this acquisition transaction is accounted for as a purchase in accordance with the Accounting Principles Board Opinion No. 16, "Business Combinations."

GOODWILL

        Under U.S. GAAP, Statement of Financial Accounting Standards Board No. 142, "Goodwill and Other Intangible Assets" has been adopted and goodwill is not being amortized effective 1 January 2002.

PENSIONS AND OTHER POST RETIREMENT BENEFITS

        The Kingsmead Underwriting Agency Limited Defined Benefit Pension Scheme ("KUAL Fund") had a deficit of £3,340,000 at 31 December 2001 which was disclosed but not recognized by the Group in 2001. Under U.S. GAAP, such deficit is recorded as a liability of the Group at 31 December 2001.

TAXATION

        Deferred taxation is provided by the Group on all temporary differences, except that no deferred tax asset is recognized by the Group on loss on ordinary activities in the six months ended 30 June 2002. Under U.S. GAAP, deferred tax assets are subject to a valuation allowance if it is more likely than not that they will not be realized.

        The following is a summary of the significant adjustments to profit (loss) and shareholders' equity (deficit) which would be required if U.S. GAAP had been applied instead of applying Advent Group Accounting Principles.

Group Profit and Loss Account

			Six months ended 30.6.2002		Year Ended 31.12.2001
			£'000's		£'000's
(Loss) on Ordinary Activities after Taxation			(4,532	)	(48,976	)
Significant adjustments:
	Increase:
		Deferred tax benefit on loss on ordinary activities	1,301		14,662
		Goodwill amortization expense recorded by Advent Capital in six months ended 30.06.02	329
		Pension fund deficit recognized as a liability at 30.06.02 by Advent Capital, net of tax	1,016
	Decrease:
		Amortization expense of goodwill on B. F. Caudle acquisition			(322	)
		Recognition of pension fund deficit in existence as of 31.12.01 not recognized by Advent Capital, net of tax			(2,338	)
Net loss as adjusted in accordance with U.S. GAAP			(1,886	)	(36,974	)

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Group Shareholders' Funds

			30 June 2002		31 December 2001
			£'000's		£'000's
Shareholders' funds as reported in the Group balance sheet			(19,995	)	(15,463	)
Significant adjustments:
	Increase:
		Merger reserve recorded and group reorganization costs incurred in connection with the B. F. Caudle acquisition as accounted for as Goodwill	4,673		4,673
		Deferred tax assets	17,375		16,075
		Goodwill amortization expense recorded by Advent Capital in six months ended 30.06.02	329
		Pension fund deficit recognized as a liability at 30.06.02 by Advent Capital	1,016
	Decrease:
		Accumulated amortization on B. F. Caudle acquisition Goodwill	(671	)	(671	)
		Recognition of pension fund deficit in existence as of 31.12.01 not recognized by Advent Capital	(2,338	)	(2,338	)
Shareholders' equity as adjusted in accordance with U.S. GAAP			389		2,276

CONSOLIDATED CASH FLOW STATEMENT

        The consolidated statement of cash flows prepared under Advent Group Accounting Principles present substantially the same information as those required under U.S. GAAP. These statements differ, however, with regard to classification of certain items.

        Under Advent Group Accounting Principles, cash flows are presented separately for operating activities, returns on investments and servicing of finance, taxation, investing activities and management of liquid resources and financing. U.S. GAAP, however, requires only three categories of cash flow activity to be reported: operating, investing and financing. Cash flows from taxation and returns on investments and servicing of finance shown under Advent Group Accounting Principles, would be included as operating activities under U.S. GAAP. Net movement in portfolio investments shown under Advent Group Accounting Principles, would be included as investing activities under U.S. GAAP.

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        The categories of cash flow activity under U.S. GAAP can be summarized as follows:

Group Cash Flow Statement

		Six months ended 30.6.2002
		£'000's
Net Cash Inflow from Operating Activities		27,921
Increase:
	Interest received	444
Cash flow provided by operating activities in accordance with U.S. GAAP		28,365
Net Cash (Outflow) from Investing Activities		(30	)
Decrease:
	Net movement in syndicates' portfolio Investments	(15,327	)
Cash flow used in investing activities		(15,357	)
Net increase in cash		13,008
Cash at beginning of year		39,039
Cash at end of year		52,047

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ADVENTCAPITAL (HOLDINGS) PLC

Group Balance
on Technical Account

						Years Ended 31 December
		Year of Account Total		Six months ended 30.6.2002
						2001		2000		1999		1998
		£'000s		£'000s		£'000s		£'000s		£'000s		£'000s
Syndicate 780—Non Marine Underwriting Year of Account
	2002        open	959		959
	2001        open	(22,507	)	(5,311	)	(17,196	)
	2000        open	(2,377	)	371		(4,147	)	1,399
	1999        closed	(3,092	)			2,970		(3,723	)	(2,339	)
Balance on technical account				(3,981	)	(18,373	)
Syndicate 2—Marine Underwriting Year of Account
	2002        open	2,123		2,123
	2001        open	(15,905	)	(1,002	)	(14,903	)
	2000        open	(17,194	)	(5,621	)	(8,770	)	(2,803	)
	1999        closed	(6,241	)			(1,090	)	515		(5,666	)
Balance on technical account				(4,500	)	(24,763	)
Syndicate 271—Aviation Underwriting Year of Account
	2000        open	(64,925	)	(7,897	)	(33,316	)	(23,712	)
	1999        open	(13,602	)	(88	)	(9,865	)	(434	)	(3,215	)
	1998        open	(3,633	)	(1,178	)	(3,601	)	39		488		619
Balance on technical account				(9,163	)	(46,782	)
Syndicate 506—Non Marine Underwriting Year of Account
	2001        open	(12,038	)	845		(12,883	)
	2000        open	(15,024	)	354		(13,955	)	(1,423	)
	1999        open	(14,468	)	(967	)	(8,278	)	(163	)	(5,060	)
Balance on technical account				232		(35,116	)
All Syndicates Balance on technical account				(17,412	)	(125,034	)
Underwriting Indemnity				15,398		78,563
Distribution adjustment						15
Group Balance on Technical Account				(2,014	)	(46,456	)

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ADVENTCAPITAL (HOLDINGS) PLC

Group Non Technical Account

	Six months ended 30.6.2002
	£'000s
Investment Income
Interest receivable	443
Other Income
Managing Agency Fees (non group)	585
Other Charges
Amortisation of goodwill	329
LOC charges	445
Amortisation of capacity costs	70
Bank charges	150
Provision for KUAL pension deficit	1,452
Other operating costs	904
	3,350

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ADVENTCAPITAL (HOLDINGS) PLC

Balance Sheet

	30.6.2002		31.12.2001
	£'000s		£'000s
Assets
Investments	14,406		14,406
Debtors	6,289		6,224
Cash	13,238		13,594
Other Tangible Assets	491		592
Total assets	34,424		34,816
Liabilities
Capital & reserves:
Called-up share capital	11,316		11,316
Share premium account	27,553		27,553
Profit & loss account	(50,799	)	(48,792	)
Shareholders funds	(11,930	)	(9,923	)
Provision for other charges	45,557		43,543
Creditors	732		889
Accruals & deferred income	65		307
Total liabilities	34,424		34,816

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ADVENTCAPITAL (HOLDINGS) PLC

Detailed Profit & Loss Account

		Six months ended 30 June 2002			Year ended 31 December 2001
		£	£		£	£
Income
Interest Receivable			235,873			656,697
Management Recharges:
	Payroll & related costs		300,446			568,048
	Depreciation		97,209			113,410
			633,528			1,338,155
Expenses
Direct:
Payroll		335,009			770,326
Pension		29,289			46,190
Accommodation costs—America Square					13,050
Audit					25,000
Legal & Professional Fees		35,795			75,704
Insurance		53,475			12,270
Bank fees and charges		6,375			6,495
Depreciation		101,513			118,432
Printing & stationery					380
Other					2,285
Recharges:
Payroll & related costs		32,211			31,617
Accommodation costs—America Square		12,704			2,616
Accommodation costs—Room 813					9,707
Accommodation costs—KUAL					3,056
Legal & Professional Fees		3,445			1,743
Printing & stationery		968			390
Marketing					2,798
Travel & subsistence		11,485			13,972
Entertaining		171			9,075
Telephone & Fax		1,047
Depreciation		1,837			4,422
Computer					1,518
Other		884			1,108
			626,208			1,152,154
Profit before investment write down, provisions and corporation tax			7,320			186,001
Provision for Advent Capital PLC underwriting losses			2,014,000			43,542,907
Advent Capital PLC debtor written off						5,969,282
Advent Capital PLC investment written off						426,250
Loss before Corporation Tax			(2,006,680	)		(49,752,438	)
Corporation Tax						60,000
Loss after Corporation Tax			(2,006,680	)		(49,812,438	)

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QuickLinks

Exhibit 99.2

Group Profit & Loss Account General Business Technical Account

Group Balance Sheet 30 June 2002
Group Cashflow Statement

Basis of Preparation
Group Profit and Loss Account
Group Shareholders' Funds
Group Cash Flow Statement

Group Balance on Technical Account

Group Non Technical Account

Balance Sheet

Detailed Profit & Loss Account