Zenith National continues to record solid operating profitability in the workers' compensation market despite this segment's challenging trends such as lower rates and higher loss costs driven by the rising cost of health care, which in turn is offsetting favorable frequency trends. Zenith National's very strong balance sheet strength assessment is supported by its strongest risk-adjusted capitalization, as well as its long, steady track record of favorable loss reserve development, which has benefited its underwriting income materially, albeit at a reduced level in recent years. 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 these lines of business. These products have been profitable, and despite a recent increase in volatility, they have helped to mitigate the impact of softening market conditions in the workers' compensation market over the past several years.