Northbridge earnings up despite hurricanes losses

Toronto-based Northbridge Financial Corp. (TSX: NB), part of Fairfax Financial, has posted improved earnings for the third quarter ending September 30, 2004 despite taking a $32.6 million hit for weather claims as a result of U.S. hurricanes, floods in Peterborough, Ontario and hailstorms in Western Canada.
For the quarter, Northbridge posted earnings of $38.5 million ($0.76 per share), up from $22.8 million ($0.45 per share) a year ago. And for the first nine months of 2004, earnings were $114.1 million ($2.24 per share), up from $109.3 million ($2.21 per share).
Underwriting results were strong in the third quarter of 2004, with the company posting an underwriting profit of $33.0 million on a combined ratio of 89.4%. This is compared to an underwriting profit of $18.9 million on a combined ratio of 92.7% in the third quarter of 2003. For the first nine months of 2004, the underwriting profit was $82.0 million on a combined ratio of 90.9%, almost double the underwriting profit of $44.1 million (combined ratio: 93.9%) posted in the first nine months of last year.
Net written premiums were up 4.4% to $295.2 million in the third quarter of 2004, while year-to-date net premiums written are up 9.9% to $912.6 million. Investment income was up to $30.5 million (including net realized gains of $13.0 million) in the third quarter of this year, from $20.2 million a year ago. And year-to-date investment income up to $999.9 million (including net realized gains of $41.6 million) from $130.1 million a year ago.
Pre-tax unrealized gains on investments stood at $91.5 million at the end of September, 2004, down from $125.7 million at the end of 2003.