FAIRFAX INCOME FALLS 35% ON SWING TO INVESTMENT LOSSES

Canadian re/insurance and investment group Fairfax Financial Holdings saw its third-quarter net earnings fall 35% to $68.6m after swinging to $96.7m in investment losses. Operating income for the quarter rose 12.1% to $280.1m as underwriting income more than quadrupled to $49.3m. Excluding run-off business, the combined ratio improved by 0.1 points to 97.5%, while gross written premiums rose 11.9%. The improved underwriting result was driven by the group’s Odyssey Re, Crum & Forster, Allied World and Fairfax Asia units, which all posted increases in income; and Brit, which halved its underwriting loss. For the first nine months of the year, the Toronto-based group’s net income rose 56% to $1.33bn as investment gains rose 17.3% to $1.08bn and underwriting income increased 5.0% to $175.7m. Excluding run-off, the combined ratio added a half-point to 97.1%, while gross written premiums grew 12.8% to $13.27bn.