EXHIBIT 99
[logo]
Zenith National Insurance Corp.
21255 Califa Street
Woodland Hills, CA 91367-5021
Reply to: P.O. Box 9055
Van Nuys, CA 91409-9055
Telephone 818/713-1000
PRESS RELEASE
- -------------------------------------------------------------------------------
BUSINESS & FINANCIAL EDITORS FREDRICKA TAUBITZ
Executive Vice President
FOR IMMEDIATE RELEASE & Chief Financial Officer
ZENITH NATIONAL CLOSES ITS PURCHASE OF ASSETS OF RISCORP
WOODLAND HILLS, CA, April 2, 1998 . . . . . . . Zenith National
Insurance Corp. (ZNT) announced today that its wholly-owned subsidiary,
Zenith Insurance Company, closed its transaction to purchase certain assets
of RISCORP, Inc. and its subsidiaries under an agreement previously announced
on June 17, 1997. The transaction is effective April 1, 1998.
Under the transaction, Zenith acquired all the assets and assumed certain of
the liabilities of RISCORP, Inc. and its subsidiaries related to the workers'
compensation business, including inforce insurance business as well as the
right to all new and renewal policies. Zenith also purchased RISCORP's
"First Call"(sm) managed care workers' compensation system.
RISCORP will no longer engage in the workers' compensation or managed care
businesses.
The purchase price, to be paid in cash, will be the difference between the
book value of the assets purchased and the book value of the liabilities
assumed by Zenith as of April 1, 1998. The final purchase price is subject
to audit and a dispute resolution process and cannot be determined at this
time. At closing, Zenith paid the minimum cash purchase price of $35 million
and assumed $15 million in certain indebtedness of RISCORP, Inc.
Continued
Stanley R. Zax, Chairman and President commented, "We are delighted to expand
our Southeast operations with the closing of the purchase of the assets and
inforce business of RISCORP. The consummation of this strategic acquisition
provides expanded geographic diversification in our workers' compensation
business and adds state-of-the-art managed care and agent Internet
communication capabilities to our operations. We welcome all of RISCORP's
policyholders, agents, claimants and employees to the Zenith Family and we
are excited about renewing and energizing our new partners with a goal of a
mutually beneficial and profitable relationship."
The above release contains statements that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities and Exchange of 1934, as
amended. The words "believe", "estimate", "expect", "intend", "anticipate",
and similar expressions and variations thereof identify certain of such
forward-looking statements, which speak only as of the dates on which they
were made. Zenith National Insurance Corp. undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events, or otherwise. Readers are cautioned that
any such forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may differ
materially from those indicated in the forward-looking statements as a result
of various factors. Readers are cautioned not to place undue reliance on
these forward-looking statements.
* * * * * * * * *