Northbridge Gains Strong Earnings Footing For 2-Q

Toronto-based Northbridge Finan- cial Corp. (TSX: NB), part of the Fairfax group, increased net earnings by 250% to $57.5 million for the second quarter of this year compared with the $16.4 million shown for the same period in 2002. The latest earnings equal $1.16 a share versus the 36 a share for the comparable period in 2002.

For the first-half of 2003, Northbridge’s net earnings climbed four-fold to $86.5 million (2002 2-Q: $21 million). The company’s revenue rose to $323.4 million for second-quarter 2003 compared with $191.4 million for the same period in 2002, while the first-half of 2003 produced revenue of $572.8 million versus the $369 million in first-half 2002.

Northbridge was able to increase net written premiums for the second quarter of this year by 41% year-on-year to $308.8 million, with the six month review showing a 39% year-on-year gain to $547.4 million.

The company generated an underwriting profit of $15.2 million for the second quarter of this year compared with $7 million shown for the same period in 2002. The underwriting profit for the first six months of this year came in at $25.3 million (June 2002: $6.2 million). As a result, the combined ratio dropped to 93.7% for the second quarter of this year against 95.8% at the end of second-quarter 2002. The combined ratio for the first half of this year was 94.5% compared with 98.2% reported at the end of June 2002. Furthermore, the company statement notes that, “our earnings received a significant contribution from our investment portfolio, with pre-tax net investment income of $80.3 million for the [second] quarter [of this year], and $109.9 million for the six months, including net realized gains of $63.6 million and $69.3 million respectively”.