Home Breadcrumb caret News Breadcrumb caret Industry Fairfax hit by WTC, Enron claims The World Trade Center (WTC) attacks, combined with the failure of U.S. energy-trading giant Enron, led Canadian-based Fairfax Financial Holdings (TSE: FFH) to a $346 million loss last year, compared to $137.4 million profit in 2000. This works out to a loss of $28.04 per share for 2001, versus a gain of $9.41 the year […] February 28, 2002 | Last updated on October 1, 2024 1 min read The World Trade Center (WTC) attacks, combined with the failure of U.S. energy-trading giant Enron, led Canadian-based Fairfax Financial Holdings (TSE: FFH) to a $346 million loss last year, compared to $137.4 million profit in 2000. This works out to a loss of $28.04 per share for 2001, versus a gain of $9.41 the year prior. The company’s WTC loss estimate grew by $48.3 million in the fourth quarter, bringing its net loss estimate to $288.3 million (gross loss: $1.28 billion). The additional exposures belong largely to Fairfax’s reinsurance subsidiary Odyssey Re. The company has also made a $23 million provision for Odyssey Re’s exposure to the Enron collapse. The company’s overall combined ratio for 2001 is 121%, versus 116% in 2000. Net earned premiums were up, to $4.8 billion overall, over $4.6 billion the year prior, with $730 million coming from Canadian insurance companies. However, a lag in investment income, which fell to $162.3 million from $382.8 million, dragged overall revenue down. Save Stroke 1 Print Group 8 Share LI logo
