Stanley Zax, the Chairman of the Board and President of Zenith National, who has built up and developed Zenith National and its subsidiaries for over 30 years, and has been amongst the most powerful of political voices in Workers' Compensation in California for these more than three decades, had this to say on Wednesday, February 24th, when he directly answered his phone in his office in Woodland Hills, California.

"I can't comment on any question that you might ask me," Stanley bluntly but politely stated most unequivocally.

So, that was that. Upon hearing that impenetrable statement, this writer politely, in return, said good-bye. 

That was a different experience.  Stanley Zax usually has plenty to say.  But not this time.

Fairfax Financial Holdings will purchase Zenith National in a deal that values Zenith National at approximately 1.4 billion US dollars.

Last month, Zenith National reported a fourth-quarter profit of 10.8 million dollars, up from the previous year's fourth quarter number of $8.4 million dollars.  However, Zenith's full year profit for 2009 fell to 34.4 million dollars down from 95.3 million dollars in profit for 2008.  Increased unemployment and declining payrolls in 2009 reduced net premiums earned by 24 percent.

Fairfax Financial said it will finance the acquisition with cash and subsidiary dividends, and will also raise 200 million dollars through an equity issue.  After it closes, the company said it expects to keep about 1 billion dollars in cash and marketable securities in holding company coffers.