Fairfax reports drop in 2010 profits

Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) reported a drop in its 2010 net earnings to $469 million from 2009’s profit of $856.8 million.
The company said lower net gains on investments and weaker underwriting results were responsible for the loss. In 2010 Q4, it reported an investment loss of $683.9 million, a sharp decrease from the investment loss of $30.3 million in 2009 Q4.
Fairfax reported a net loss of $363.3 million in 2010 Q4, a stark contrast from the net earnings of $83.2 million in 2009 Q4.
Northbridge, Fairfax’s Canadian commercial insurer, reported $985 million in net premiums written in 2010, an increase from $928.7 million in 2009. When comparing this figure for 2010 Q4 to 2009 Q4, net premiums written premium were virtually flat ($248.6 million and $245.8 million, respectively).
Northbridge’s combined operating ratio (COR) ticked up to 107.3% in 2010 from 105.9% in 2009. The COR was 111.1% in 2010 Q4, a slight improvement over 2009 Q4’s COR of 112.6%.
OdysseyRe, a reinsurance unit at Fairfax, reported a slight decrease in net premiums written year-over-year ($1.89 billion in 2009 and $1.85 billion in 2010). Quarter-over-quarter, this figure saw a slight uptick, growing from $431 million in 2009 Q4 to $434.7 million in 2010 Q4.
OdysseyRe’s combined ratio in 2010 was 98.6%, marking a slight increase from 2009’s 96.7%. In 2010 Q4, this figure showed improvement from 96.6% in 2009 Q4 to 92.9%.