Fairfax takes tax hit on half-year recovery (August 14, 2002)

Toronto-based financial services group Fairfax Financial Holdings (TSE: FFH) lifted net premium for the first six months of this year by 20% to $3.1 billion compared with the previous year’s half year amount of $2.6 billion.Pre-tax income rose by a dramatic 206% year-on-year to 103.8 million, however, Fairfax incurred a hefty tax bill of $41.7 million in the second quarter (against a tax recovery the previous year of $14.4 million) which saw the company’s net income drop for the latest six months. Net income for the first six months of this year fell to $58.3 million (June 2001: $76.9 million), which is equal to 341c a share against the previous year’s 538c a share. The average number of outstanding shares had risen marginally to 14.3 million by end of June this year against the 14.3 million shares in issue 12 months prior.