Fairfax/Odyssey earnings up for 1-Q 2002

Toronto-based Fairfax Financial Holdings (TSE: FFH) moved into recovery for the first quarter of this year. After a $346 million net loss for the 2001 financial year, the financial services company posted before tax earnings of $29 million for the first quarter of 2002. This reflects nearly a three-fold gain on the $11.3 million in pre-tax earnings shown for the first quarter of 2001.

However, Fairfax’s net earnings dropped for the latest reporting period to $11.3 million compared with the $30.9 million made a year ago. The company attributes this negative turn to increased income tax expenses this year versus last year’s income tax recovery. Overall, earnings clocked in 46 a share for the latest quarterly reporting period against the 211 a share reported for the first quarter of 2001.

Net premiums written grew by 13.2% to $1,57 billion from the $1,39 billion reported for the same quarter last year. Overall revenue amounted to $1,74 billion for the first quarter of this year compared with $1,53 billion a year ago. Combined ratios improved for all sectors of the company’s business, including Canadian insurance operations which dropped to a 99.4% ratio for the first three months of this year against the 11.3% reported for last year.

Fairfax subsidiary Odyssey Re Holdings Corp. (TSE: ORH) lifted net taxed income to $56.3 million for the first quarter of 2002, which amounts to earnings of 86 a share. The reinsurer also grew gross revenue by more than 60% to $403.8 million compared with the $251.8 million reported at the end of the first quarter of 2001. Net premiums written rose year-on-year by 58% to $362.8 million. Pre-tax income clocked in at $29.6 million for the latest reporting period compared with $28.1 million reported for the same period a year prior. The reinsurer’s combined ratio improved to 98.8% for the latest reporting period against 103.2% for the first quarter 2001.