Odyssey Re ROE hits 17%

Fairfax’s Odyssey Re Holdings Corp. (NYSE: ORH) exceeded its own goals, posting return on equity of 17% for the first quarter of 2004.The reinsurer posted after-tax income of US$59.0 million (US$0.90 per share) for the first quarter, versus US$46.6 million (US$0.72 per share) for the same period in 2003. While realized gains were strong at US$22.6 million for the quarter (Q1 2003: US$24.9 million), the company’s success came largely from strong operating performance. After-tax operating income was up 67% for US$36.3 million (Q1 2003: US$21.7 million) on a combined ratio of 95.0%, down from 98.9% in first quarter 2003.Gross written premiums were up 11.6% between first quarter 2003 and 2004, with strong growth in Euro-Asia (51.8%), U.S. insurance (25.7%), and the London market (15.9%). Net written premiums in the first quarter of this year were US$553.2 million, up 12.9% over the US$489.9 million posted in first quarter 2003.In total, revenue for the first quarter was US$616.6 million, up from US$518.0 million in early 2003.Investment income was relatively stable at US$35.5 million, versus US$34.8 million a year prior.”Odyssey Re continues to produce solid results by executing well in both the underwriting and investment arenas,” says president and CEO Andrew A. Barnard. “Our annualized return on equity for the first quarter is 17%, exceeding our long term target of 15%.”As of the end of March, investments and cash totaled US$4.4 billion and net book value per common share stood at US$22.12.