Fairfax reports 2006 Q3 net loss of US$359.2 million

Fairfax Financial Holdings Limited (TSX and NYSE: FFH) has announced a net loss of US$359.2 million for 2006 Q3, and net earnings of US$68.4 million for the first nine months of 2006.
The combined ratios of the company’s insurance and reinsurance operations for 2006 Q3 and the first nine months of 2006 were 98.5 % and 98.0% respectively on a consolidated basis.
On an individual company basis, 2006 Q3 combined ratios were as follows:
Northbridge 94.5 %
Crum & Forster 98.7%
OdysseyRe 100.3%
Underwriting profit at the company’s insurance and reinsurance operations for 2006 Q3 and the first nine months of 2006 was US$16.6 million and US$64.4 million respectively.
Net premiums written during 2006 Q3 and the first nine months of 2006 grew by 2.6% (to US$1.2 billion) and 2.7% (to US$3.6 billion) respectively compared to the prior year’s periods.
“The 2006 Q3 net loss included a US$412.6 million non-cash charge related to the previously announced commutation of the Swiss Re corporate insurance cover,” the company noted in a press release. “Prior to giving effect to the commutation loss, net earnings for the third quarter and for the nine months were US$53.4 million and US$481.0 million respectively.”
Reinsurance recoverables declined to US$5.8 billion as of Sept. 30, 2006, from US$7.7 billion as of Dec. 31, 2005 a reduction of US$1.8 billion that included a reduction of US$1 billion recoverable from Swiss Re after the commutation of the corporate insurance cover.