Northbridge earnings top $162 million for 2004

Northbridge Financial Corp. (TSX: NB), the Canadian operations of Fairfax Financial, posted record earnings of $162.2 million, or $3.19 per share, for 2004. This follows earnings of $153.0 million, or $3.07 per share, in 2003.
For the fourth quarter ending December 31, 2004, Northbridge posted earnings of $48.1 million, or $0.94 per share, compared to fourth-quarter 2003 earnings of $43.7 million, or $0.86 per share.
Gross written premiums for 2004 were up 4.0% to $1.94 billion, versus $1.86 billion in 2003. And net earned premiums grew 23.5% to $1.23 billion in 2004, from $992.9 million in 2003.
For the fourth quarter of 2004 gross written premiums dropped 2.5% to $493.5 million, versus $506.3 million in the last quarter of 2003. However, net earned premiums were up 20.2% over the same comparative period to $326.6 million from $271.7 million.
The companies posted an underwriting profit of $150.7 million in 2004, on a combined ratio of 87.7%. This more than doubles the underwriting profit of $73.8 million posted in 2003, on a combined ratio of 92.6%.
In the fourth quarter of 2004, the underwriting profit was $68.7 million, on a combined ratio of 78.9%, again more than double the fourth-quarter 2003 underwriting profit of $29.7 million, on a combined ratio of 89.1%.
Each of the four companies which make up Northbridge Lombard, Commonwealth, Markel and Federated posted improved underwriting results for the fourth-quarter and full-year 2004.
"The impact of rate increases, reduced cessions to reinsurers, favorable levels of new business and renewal retention, adherence to strict underwriting discipline, and a general year-over-year decline in claims counts contributed to the significant improvement in underwriting profit."