Odyssey Re benefits from pricing rebound for half year

Odyssey Re, the reinsurance arm of Fairfax Financial Holdings, increased net income for the first six months of this year by 120% to US$89.1 million compared with the US$40.6 million reported at the end of June 2001. Earnings for the latest six month period amount to US137c a share. The company increased its shares in issue to 65.1 million last year June through an initial public offering representing about 26% of its share capital base. The company declared a cash dividend of US25c a share on June 28.Odyssey also showed record growth for the second-quarter of this year, with net income for the three month period rising by 50% year-on-year to US$32.8 million, which is equal to earnings of US50c a share. Net written premiums for the last six months rose by 58.2% to US$733.7 million compared with the same period the year prior, with net written premiums rising by 58.4% for the second-quarter to US$370.8 million. The company’s combined ratio stood at 98.8% at the end of June this year against the 101.8% ratio reported 12 months previous.Odyssey Re’s three geographic regional markets all showed strong growth in premiums for the second-quarter of this year, with the Americas showing a 58.6% increase in gross written premiums, Euro-Asia up by 89.6%, and the London market by 71.3%. Commenting on the company’s performance, CEOAndrew Barnard says, "our second quarter and six months operating performance continue to evidence the significant improvements in rates, terms and conditions achieved in all our business segments globallyOur July 1st renewals indicate a continuation of improved market conditions."