Fairfax group turnaround in 3-Q

Fairfax Financial Holdings (TSX: FFH) produced signs of a financial turnaround for the third quarter of this year, showing the largest quarterly profit in the company’s history.

After posting a loss of $458.3 million for the same period in 2001, the company came through with net earnings of $281.4 million for the 2002 third quarter, equal to earnings a share of $19.31 versus a loss of $35.23 a share for the same period last year. For the first nine months, net earnings came in at $339.7 million, translating to $22.72 a share. Fairfax’s Odyssey Re Holdings Inc. (TSX: ORH) posted net taxed income for the third quarter of this year of US$87.8 million, equivalent to US$1.35 a share. Net taxed income for the first nine months of 2002 amounted to US$176.9 million, or US$2.72 a share. Net earnings include US$68 million in taxed realized capital gains for the third quarter, and US$80.3 million for the nine-month period. Year-to-date, the company’s combined ratio stands at 99.9% compared with 141.7% reported 12 months previously.

Fairfax’s Lindsey Morden operation, which operates in Canada as Cunningham Lindsey, saw this year’s third quarter revenue rise to $117 million compared with the $105 million made for the same period a year prior.

The company’s net earnings for the latest reporting period clocked in at $124,000 versus a loss of more than $1.7 million for the third quarter of last year. Earnings for the latest reporting period amount to 1 a share against a loss of 12 a share from a year ago. The company notes that all operations reported improved operating earnings, except for Canada and the U.S.

The company posted a loss of $9.5 million, or 67 a share, for the first nine months of the year. This compares with a loss of $6.9 million, or 48 a share, disclosed for the first nine months of 2001.