THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Zenith National Insurance Corp. (ZNT)

4/5/2006 Proxy Information

As of December 31, 2005, Fairfax Financial and its affiliates beneficially owned over 10% of the outstanding Common Stock. After December 31, 2005, Fairfax Financial sold all of its shares of Common Stock to a third party.

Odyssey Re Holdings Corp. ("Odyssey Re") is a majority-owned subsidiary of Fairfax Financial and Odyssey America Reinsurance Corporation ("Odyssey America") is a wholly-owned subsidiary of Odyssey Re. Odyssey America and Zenith Insurance and its insurance subsidiaries were parties to a ten percent quota share ceded reinsurance agreement with Odyssey America relating to all new and renewal business written by Zenith Insurance and its insurance subsidiaries for three years commencing January 1, 2002. Zenith Insurance terminated the quota share agreement effective December 31, 2004. In connection with the termination, Zenith Insurance also elected to reassume the ceded unearned premiums in force as of December 31, 2004 of approximately $8 million, net of commission. In 2005, pursuant to the ten percent quota share ceded reinsurance agreement, Zenith Insurance paid approximately $1.0 million in net premium adjustments to Odyssey America and Odyssey America paid approximately $19.0 million to Zenith Insurance and its insurance subsidiaries for losses and loss expenses. At December 31, 2005, Odyssey America's share of the loss reserves on the ceded business was approximately $49.3 million.

4/1/2005 Proxy Information

Holly Zax, M.B.A., an adult daughter of Mr. Zax, is employed by Zenith Insurance as Assistant Vice President/Corporate Communications at an annual salary of $150,000 plus a discretionary bonus.

In December 2001, Zenith Insurance and its insurance subsidiaries entered into a ten percent quota share ceded reinsurance agreement with Odyssey America relating to all new and renewal business written by Zenith Insurance and its insurance subsidiaries for three years commencing January 1, 2002. Fairfax Financial owns approximately 81% of the outstanding shares of common stock of Odyssey Re Holdings. Odyssey America is a wholly-owned subsidiary of Odyssey Re Holdings. In 2004, pursuant to the ten percent quota share ceded reinsurance agreement, Zenith Insurance and its insurance subsidiaries paid approximately $100.3 million in premiums to Odyssey America and Odyssey America paid approximately $58.2 million to Zenith Insurance and its insurance subsidiaries for commissions, losses and loss expenses. At December 31, 2004, Odyssey America's share of the loss reserves on the ceded business was $78 million. Zenith Insurance terminated the quota share agreement effective December 31, 2004. In connection with the termination, Zenith Insurance also elected to reassume the ceded unearned premiums in force as of December 31, 2004 of approximately $8 million, net of commission.

In June 2004, at the request of Fairfax Financial, we filed a registration statement on Form S-3 with the Commission relating to the sale of up to 3.5 million shares of Common Stock owned by certain subsidiaries of Fairfax Financial. As of the date of the filing of the registration statement, Fairfax Financial and its subsidiaries owned approximately 7.8 million shares, or 41% of the total outstanding shares of Common Stock (not including shares issuable upon conversion of the Convertible Notes held by such companies). In July 2004, subsidiaries of Fairfax Financial sold 3.1 million shares of Common Stock in an underwritten public offering. Zenith did not sell any shares in the offering. Fairfax Financial reimbursed us $537,000 for certain fees and expenses related to the preparation and filing of the registration statement. In addition, we and Fairfax Financial agreed to indemnify each other against some liabilities, including liabilities under the Securities Act of 1933.

4/7/2004 Proxy Information

Holly Zax, M.B.A., the adult daughter of Mr. Zax, is employed by Zenith Insurance as Director of Corporate Communications at an annual salary of $137,388 plus discretionary bonus.

3/28/2003 Proxy Information

Mr. Sessions is a Partner of Holland & Knight LLP, which provided legal services to Zenith in 2002 in a litigation matter that predated Mr. Sessions' becoming associated with the firm. The amount paid to Holland & Knight LLP for services in the matter, which was concluded in 2002, was approximately $15,000 (substantially less than 5% of the gross revenues of Holland & Knight LLP in 2002). Zenith does not plan to utilize the services of Holland & Knight LLP in 2003.

Holly Zax, M.B.A., the adult daughter of Mr. Zax, is employed by Zenith Insurance at an annual salary of $128,400.