Fairfax Financial Holdings: Second Quarter Financial Results
August 01 2019 - 5:02PM
Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) announces
net earnings of $494.3 million ($17.18 net earnings per diluted
share after payment of preferred share dividends) in the second
quarter of 2019 compared to net earnings of $63.1 million ($1.82
net earnings per diluted share after payment of preferred share
dividends) in the second quarter of 2018, primarily reflecting
significant net gains on investments. Book value per basic
share at June 30, 2019 was $464.86 compared to $432.46 at
December 31, 2018 (an increase of 9.9% adjusted for the $10
per common share dividend paid in the first quarter of 2019).
"Our insurance companies continued to have strong underwriting
performance in the second quarter and first half of 2019 with a
second quarter consolidated combined ratio of 96.8%, and our
operating income was excellent at $330 million. Net gains on
investments of $449 million included a gain of $171 million from
the deconsolidation of Grivalia Properties upon its merger with
Eurobank. We continue to be soundly financed, with no holding
company debt maturities until 2021," said Prem Watsa, Chairman and
Chief Executive Officer.
The table below shows the sources of the company's net earnings,
set out in a format which the company has consistently used as it
believes it assists in understanding Fairfax:
|
Second quarter |
|
First six months |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
($ millions) |
Gross premiums written |
4,335.4 |
|
|
4,067.2 |
|
|
9,062.0 |
|
|
7,999.4 |
|
Net premiums written |
3,354.3 |
|
|
3,175.8 |
|
|
7,295.8 |
|
|
6,415.9 |
|
|
|
|
|
|
|
|
|
Underwriting profit |
101.0 |
|
|
115.8 |
|
|
189.4 |
|
|
224.9 |
|
Interest and dividends -
insurance and reinsurance |
229.0 |
|
|
121.5 |
|
|
387.3 |
|
|
250.0 |
|
Operating income |
330.0 |
|
|
237.3 |
|
|
576.7 |
|
|
474.9 |
|
Run-off (excluding net gains
(losses) on investments) |
(12.8 |
) |
|
(20.6 |
) |
|
(30.8 |
) |
|
(53.1 |
) |
Non-insurance operations |
114.4 |
|
|
102.1 |
|
|
155.7 |
|
|
179.1 |
|
Interest expense* |
(121.9 |
) |
|
(86.3 |
) |
|
(233.5 |
) |
|
(175.1 |
) |
Corporate overhead and other
income / expense |
(32.3 |
) |
|
(74.8 |
) |
|
83.1 |
|
|
(111.2 |
) |
Net gains (losses) on
investments |
448.6 |
|
|
(58.2 |
) |
|
1,172.5 |
|
|
876.0 |
|
Pre-tax income |
726.0 |
|
|
99.5 |
|
|
1,723.7 |
|
|
1,190.6 |
|
Income taxes and
non-controlling interests |
(231.7 |
) |
|
(36.4 |
) |
|
(460.2 |
) |
|
(443.2 |
) |
Net earnings attributable to
shareholders of Fairfax |
494.3 |
|
|
63.1 |
|
|
1,263.5 |
|
|
747.4 |
|
* Including $14.7 and $31.6 in the second quarter and first six
months of 2019, respectively, related to the revised accounting for
leases effective January 1, 2019
Highlights for the second quarter of 2019 (with comparisons to
the second quarter of 2018 except as otherwise noted) include the
following:
- The combined ratio of the insurance and reinsurance operations
was 96.8% on a consolidated basis, producing an underwriting profit
of $101.0 million, compared to a combined ratio of 96.1% and an
underwriting profit of $115.8 million in 2018, primarily reflecting
lower net favourable prior year reserve development.
- Net premiums written by the insurance and reinsurance
operations increased by 6.2% to $3,372.5 million (6.8% excluding
the net premiums written by Advent in the second quarter of 2018
(effective January 1, 2019, Advent was reported in the Run-off
reporting segment) and the net premiums written related to the
acquisition of the insurance operations of AXA in Ukraine in the
first quarter of 2019).
- The insurance and reinsurance operations produced operating
income of $330.0 million, compared to operating income of $237.3
million in 2018, reflecting primarily higher interest and
dividends.
- Interest and dividends of $221.6 million increased from $177.5
million in 2018, primarily reflecting higher interest income earned
on increased holdings of short-dated U.S. treasury bonds and high
quality corporate bonds, partially offset by lower interest income
earned as a result of a reduction in holdings of U.S. municipal
bonds.
- Interest expense of $121.9 million is comprised of $74.5
million incurred on borrowings by the holding company and the
insurance and reinsurance companies, $32.7 million incurred on
borrowings by the non-insurance companies (which are non-recourse
to the holding company) and $14.7 million of accretion on lease
liabilities subsequent to the adoption of IFRS 16 on January 1,
2019.
- Corporate overhead and other expense of $32.3 million decreased
from $74.8 million in 2018, primarily due to a loss on repurchase
of long term debt of $38.0 million in 2018.
- Short-dated U.S. treasury bonds and high quality corporate
bonds represented 24.2% of the company's portfolio investments at
June 30, 2019 compared to 34.7% at December 31,
2018.
- Net investment gains of $448.6 million in 2019 consisted of the
following:
|
|
|
|
|
|
|
Second quarter of 2019 |
|
($ millions) |
|
Realizedgains(losses) |
|
Unrealizedgains(losses) |
|
Net gains(losses) |
Net gains (losses) on: |
|
|
|
|
|
Long equity exposures |
268.5 |
|
|
5.1 |
|
|
273.6 |
|
Short equity exposures |
(7.9 |
) |
|
68.9 |
|
|
61.0 |
|
Net equity exposures |
260.6 |
|
|
74.0 |
|
|
334.6 |
|
Bonds |
(278.7 |
) |
|
440.6 |
|
|
161.9 |
|
Other |
(25.4 |
) |
|
(22.5 |
) |
|
(47.9 |
) |
|
(43.5 |
) |
|
492.1 |
|
|
448.6 |
|
|
First six months of 2019 |
|
($ millions) |
|
Realizedgains(losses) |
|
Unrealizedgains(losses) |
|
Net gains(losses) |
Net gains (losses) on: |
|
|
|
|
|
Long equity exposures |
428.9 |
|
|
521.5 |
|
|
950.4 |
|
Short equity exposures |
(7.9 |
) |
|
134.9 |
|
|
127.0 |
|
Net equity exposures |
421.0 |
|
|
656.4 |
|
|
1,077.4 |
|
Bonds |
(274.5 |
) |
|
423.6 |
|
|
149.1 |
|
Other |
2.1 |
|
|
(56.1 |
) |
|
(54.0 |
) |
|
148.6 |
|
|
1,023.9 |
|
|
1,172.5 |
|
- On June 14, 2019, the company completed an offering of
Cdn$500.0 million principal amount of 4.23% unsecured senior notes
due June 14, 2029 at an issue price of 99.952 for net proceeds
after discount, commissions and expenses of $371.5 million
(Cdn$497.3 million).
- On May 31, 2019, the company's equity accounted investee IIFL
Holdings Limited spun off two of its subsidiaries in a non-cash
distribution to its shareholders and recognized a significant gain,
which resulted in the company, primarily through Fairfax India,
recording its $116.0 million share of that gain ($45.3 million
attributable to shareholders of Fairfax after deferred taxes of
$31.2 million and non-controlling interests of $39.5 million) in
share of profit of associates.
- On May 17, 2019, Grivalia Properties REIC ("Grivalia
Properties") merged into Eurobank Ergasias S.A. (“Eurobank”), as a
result of which shareholders of Grivalia Properties, including the
company, received 15.8 newly issued Eurobank shares in exchange for
each share of Grivalia Properties. Accordingly, the company
deconsolidated Grivalia Properties, recognized a non-cash gain of
$171.3 million and reduced non-controlling interests by $466.2
million. The company owned approximately 53% of Grivalia
Properties and 18% of Eurobank prior to the merger, and now owns
32.4% of Eurobank. The company continues to account for its
investment in Eurobank as a common stock at fair value, primarily
due to regulatory restrictions on the relevant activities of
Eurobank. Eurobank is a financial services provider in Greece and
is listed on the Athens Stock Exchange.
- On April 17, 2019, the company acquired a 100% equity interest
in AGT Food & Ingredients Inc. (“AGT”) through AGT's
management-led privatization for Cdn$18.00 per common share or
purchase consideration of $441.7 million (Cdn$588.6 million),
inclusive of the company’s prior holdings in AGT with a fair value
of $116.8 million (Cdn$155.7 million). Contemporaneously, AGT
management and co-investors acquired a 40.4% equity interest in AGT
for $98.4 million (Cdn$131.1 million), and the company received
warrants that, if exercised, would increase its equity interest in
AGT from 59.6% to approximately 80%. AGT is a supplier of pulses,
staple foods and food ingredients.
- Subsequent to June 30, 2019:
- On July 15, 2019, the company redeemed its remaining
Cdn$395.6 million principal amount of 6.40% unsecured senior notes
due May 25, 2021 for cash consideration of $329.1 million
(Cdn$429.0 million) including accrued interest, and will recognize
a loss on repurchase of long term debt of $23.7 million (Cdn$30.7
million) in its consolidated financial reporting in the third
quarter of 2019.
- The company held $1,978.0 million of cash, short term
investments and marketable securities at the holding company level
($1,978.0 million net of short sale and derivative obligations) at
June 30, 2019, compared to $1,557.2 million ($1,550.6 million
net of short sale and derivative obligations) at December 31,
2018.
- The company's total debt to total capital ratio, excluding
non-insurance operations, increased to 28.3% (27.3% reflecting the
July 15, 2019 senior notes redemption) at June 30, 2019 from
25.0% at December 31, 2018, primarily reflecting increased
borrowings by the holding company.
- During the second quarter of 2019 the company purchased 43,796
subordinate voting shares for treasury at an aggregate cost of
$20.2 million. From the fourth quarter of 2017 up to June 30,
2019, the company has purchased 621,204 subordinate voting shares
for cancellation and 596,974 subordinate voting shares for treasury
at an aggregate cost of $606.1 million.
- At June 30, 2019, common shareholders' equity was
$12,496.3 million, or $464.86 per basic share, compared to
$11,779.3 million, or $432.46 per basic share, at December 31,
2018. The increase in common shareholders' equity per basic share
was primarily due to net earnings.
There were 26.9 million and 27.6 million weighted average common
shares effectively outstanding during the second quarters of 2019
and 2018 respectively. At June 30, 2019 there were
26,881,817 common shares effectively outstanding.
Unaudited consolidated balance sheet, earnings and comprehensive
income information, together with segmented premium and combined
ratio information, follow and form part of this news release.
In presenting the company’s results in this news release,
management has included operating income (loss), combined ratio and
book value per basic share measures. Operating income (loss)
is used in the company's segment reporting. The combined
ratio is calculated by the company as the sum of claims losses,
loss adjustment expenses, commissions, premium acquisition costs
and other underwriting expenses, expressed as a percentage of net
premiums earned. Book value per basic share is calculated by
the company as common shareholders' equity divided by the number of
common shares effectively outstanding.
As previously announced, Fairfax will hold a conference call to
discuss its second quarter 2019 results at 8:30 a.m. Eastern time
on Friday, August 2, 2019. The call, consisting of a
presentation by the company followed by a question period, may be
accessed at 1 (800) 369-2013 (Canada or U.S.) or 1 (517) 308-9087
(International) with the passcode “Fairfax”. A replay of the
call will be available from shortly after the termination of the
call until 5:00 p.m. Eastern time on Friday, August 16,
2019. The replay may be accessed at 1 (866) 351-2787 (Canada
or U.S.) or 1 (203) 369-0057 (International).
Fairfax Financial Holdings Limited is a holding company which,
through its subsidiaries, is engaged in property and casualty
insurance and reinsurance and the associated investment
management.
For further information, contact: |
John VarnellVice President, Corporate Development and Chief
Financial Officer(416) 367-4941 |
Certain statements contained herein may constitute
forward-looking statements and are made pursuant to the “safe
harbour” provisions of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of Fairfax to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, but
are not limited to: a reduction in net earnings if our loss
reserves are insufficient; underwriting losses on the risks we
insure that are higher or lower than expected; the occurrence of
catastrophic events with a frequency or severity exceeding our
estimates; changes in market variables, including interest rates,
foreign exchange rates, equity prices and credit spreads, which
could negatively affect our investment portfolio; the cycles of the
insurance market and general economic conditions, which can
substantially influence our and our competitors' premium rates and
capacity to write new business; insufficient reserves for asbestos,
environmental and other latent claims; exposure to credit risk in
the event our reinsurers fail to make payments to us under our
reinsurance arrangements; exposure to credit risk in the event our
insureds, insurance producers or reinsurance intermediaries fail to
remit premiums that are owed to us or failure by our insureds to
reimburse us for deductibles that are paid by us on their behalf;
our inability to maintain our long term debt ratings, the inability
of our subsidiaries to maintain financial or claims paying ability
ratings and the impact of a downgrade of such ratings on derivative
transactions that we or our subsidiaries have entered into; risks
associated with implementing our business strategies; the timing of
claims payments being sooner or the receipt of reinsurance
recoverables being later than anticipated by us; risks associated
with any use we may make of derivative instruments; the failure of
any hedging methods we may employ to achieve their desired risk
management objective; a decrease in the level of demand for
insurance or reinsurance products, or increased competition in the
insurance industry; the impact of emerging claim and coverage
issues or the failure of any of the loss limitation methods we
employ; our inability to access cash of our subsidiaries; our
inability to obtain required levels of capital on favourable terms,
if at all; the loss of key employees; our inability to obtain
reinsurance coverage in sufficient amounts, at reasonable prices or
on terms that adequately protect us; the passage of legislation
subjecting our businesses to additional supervision or regulation,
including additional tax regulation, in the United States, Canada
or other jurisdictions in which we operate; risks associated with
government investigations of, and litigation and negative publicity
related to, insurance industry practice or any other conduct; risks
associated with political and other developments in foreign
jurisdictions in which we operate; risks associated with legal or
regulatory proceedings or significant litigation; failures or
security breaches of our computer and data processing systems; the
influence exercisable by our significant shareholder; adverse
fluctuations in foreign currency exchange rates; our dependence on
independent brokers over whom we exercise little control; an
impairment in the carrying value of our goodwill and
indefinite-lived intangible assets; our failure to realize deferred
income tax assets; technological or other change which adversely
impacts demand, or the premiums payable, for the insurance
coverages we offer; disruptions of our information technology
systems; and assessments and shared market mechanisms which may
adversely affect our insurance subsidiaries. Additional risks
and uncertainties are described in our most recently issued Annual
Report which is available at www.fairfax.ca and in our Supplemental
and Base Shelf Prospectus (under “Risk Factors”) filed with the
securities regulatory authorities in Canada, which is available on
SEDAR at www.sedar.com. Fairfax disclaims any intention or
obligation to update or revise any forward-looking statements
unless otherwise required by law.
CONSOLIDATED BALANCE SHEETSas at June 30,
2019 and December 31, 2018(unaudited - US$ millions)
|
June 30,2019 |
|
December 31,2018 |
Assets |
|
|
|
|
|
Holding company cash and investments (including assets pledged for
short sale and derivative obligations – $12.0; December 31, 2018 –
$21.5) |
|
1,978.0 |
|
|
|
1,557.2 |
|
Insurance contract
receivables |
|
5,956.8 |
|
|
|
5,110.7 |
|
|
|
|
|
|
|
Portfolio investments |
|
|
|
|
|
Subsidiary cash and short term
investments |
|
10,186.1 |
|
|
|
6,722.0 |
|
Bonds (cost $15,824.0;
December 31, 2018 – $19,281.8) |
|
16,174.9 |
|
|
|
19,256.4 |
|
Preferred stocks (cost $239.9;
December 31, 2018 – $327.2) |
|
229.8 |
|
|
|
260.1 |
|
Common stocks (cost $5,746.5;
December 31, 2018 – $5,014.2) |
|
5,487.0 |
|
|
|
4,431.4 |
|
Investments in associates
(fair value $3,490.5; December 31, 2018 – $3,279.1) |
|
3,925.5 |
|
|
|
3,471.9 |
|
Derivatives and other invested
assets (cost $1,202.4; December 31, 2018 – $971.3) |
|
712.4 |
|
|
|
563.6 |
|
Assets pledged for short sale
and derivative obligations (cost $102.0; December 31, 2018 –
$164.8) |
|
102.2 |
|
|
|
164.6 |
|
Fairfax India and Fairfax
Africa cash, portfolio investments and investments in
associates |
|
2,750.0 |
|
|
|
2,562.9 |
|
|
|
39,567.9 |
|
|
|
37,432.9 |
|
|
|
|
|
|
|
Deferred premium acquisition
costs |
|
1,278.0 |
|
|
|
1,127.3 |
|
Recoverable from reinsurers
(including recoverables on paid losses – $858.0; December 31, 2018
– $651.0) |
|
8,969.0 |
|
|
|
8,400.9 |
|
Deferred income taxes |
|
257.0 |
|
|
|
497.9 |
|
Goodwill and intangible
assets |
|
6,217.1 |
|
|
|
5,676.9 |
|
Other assets |
|
6,369.5 |
|
|
|
4,568.3 |
|
Total assets |
|
70,593.3 |
|
|
|
64,372.1 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Accounts payable and accrued
liabilities |
|
4,949.8 |
|
|
|
3,020.0 |
|
Short sale and derivative
obligations (including at the holding company – nil; December 31,
2018 – $6.6) |
|
154.1 |
|
|
|
149.5 |
|
Insurance contract
payables |
|
2,583.0 |
|
|
|
2,003.1 |
|
Insurance contract
liabilities |
|
36,969.3 |
|
|
|
35,353.9 |
|
Borrowings – holding company
and insurance and reinsurance companies |
|
6,026.1 |
|
|
|
4,855.2 |
|
Borrowings – non-insurance
companies |
|
2,067.8 |
|
|
|
1,625.2 |
|
Total liabilities |
|
52,750.1 |
|
|
|
47,006.9 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Common shareholders’
equity |
|
12,496.3 |
|
|
|
11,779.3 |
|
Preferred stock |
|
1,335.5 |
|
|
|
1,335.5 |
|
Shareholders’ equity
attributable to shareholders of Fairfax |
|
13,831.8 |
|
|
|
13,114.8 |
|
Non-controlling interests |
|
4,011.4 |
|
|
|
4,250.4 |
|
Total equity |
|
17,843.2 |
|
|
|
17,365.2 |
|
|
|
70,593.3 |
|
|
|
64,372.1 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EARNINGSfor the
three and six months ended June 30, 2019 and 2018(unaudited -
US$ millions except per share amounts)
|
|
Second quarter |
|
First six months |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Income |
|
|
|
|
|
|
|
|
Gross premiums written |
|
4,335.4 |
|
|
4,067.2 |
|
|
9,062.0 |
|
|
7,999.4 |
|
Net premiums written |
|
3,354.3 |
|
|
3,175.8 |
|
|
7,295.8 |
|
|
6,415.9 |
|
Gross premiums earned |
|
3,954.9 |
|
|
3,731.9 |
|
|
8,182.2 |
|
|
7,111.2 |
|
Premiums ceded to reinsurers |
|
(795.7 |
) |
|
(731.9 |
) |
|
(1,500.4 |
) |
|
(1,369.5 |
) |
Net premiums earned |
|
3,159.2 |
|
|
3,000.0 |
|
|
6,681.8 |
|
|
5,741.7 |
|
Interest and dividends |
|
221.6 |
|
|
177.5 |
|
|
457.5 |
|
|
388.9 |
|
Share of profit of associates |
|
143.2 |
|
|
32.7 |
|
|
265.5 |
|
|
63.0 |
|
Net gains (losses) on investments |
|
448.6 |
|
|
(58.2 |
) |
|
1,172.5 |
|
|
876.0 |
|
Other revenue |
|
1,468.7 |
|
|
1,058.4 |
|
|
2,496.6 |
|
|
2,067.2 |
|
|
|
5,441.3 |
|
|
4,210.4 |
|
|
11,073.9 |
|
|
9,136.8 |
|
Expenses |
|
|
|
|
|
|
|
|
Losses on claims, gross |
|
2,613.9 |
|
|
2,476.0 |
|
|
5,683.2 |
|
|
4,530.5 |
|
Losses on claims ceded to reinsurers |
|
(600.8 |
) |
|
(617.9 |
) |
|
(1,270.5 |
) |
|
(992.6 |
) |
Losses on claims, net |
|
2,013.1 |
|
|
1,858.1 |
|
|
4,412.7 |
|
|
3,537.9 |
|
Operating expenses |
|
610.5 |
|
|
630.3 |
|
|
1,212.3 |
|
|
1,243.1 |
|
Commissions, net |
|
535.2 |
|
|
500.0 |
|
|
1,064.0 |
|
|
967.8 |
|
Interest expense |
|
121.9 |
|
|
86.3 |
|
|
233.5 |
|
|
175.1 |
|
Other expenses |
|
1,434.6 |
|
|
1,036.2 |
|
|
2,427.7 |
|
|
2,022.3 |
|
|
|
4,715.3 |
|
|
4,110.9 |
|
|
9,350.2 |
|
|
7,946.2 |
|
Net earnings before
income taxes |
|
726.0 |
|
|
99.5 |
|
|
1,723.7 |
|
|
1,190.6 |
|
Provision for income
taxes |
|
146.5 |
|
|
15.6 |
|
|
329.6 |
|
|
68.7 |
|
Net
earnings |
|
579.5 |
|
|
83.9 |
|
|
1,394.1 |
|
|
1,121.9 |
|
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
Shareholders of Fairfax |
|
494.3 |
|
|
63.1 |
|
|
1,263.5 |
|
|
747.4 |
|
Non-controlling interests |
|
85.2 |
|
|
20.8 |
|
|
130.6 |
|
|
374.5 |
|
|
|
579.5 |
|
|
83.9 |
|
|
1,394.1 |
|
|
1,121.9 |
|
|
|
|
|
|
|
|
|
|
Net earnings per share |
|
$ |
17.94 |
|
|
$ |
1.88 |
|
|
$ |
46.01 |
|
|
$ |
26.23 |
|
Net earnings per
diluted share |
|
$ |
17.18 |
|
|
$ |
1.82 |
|
|
$ |
44.17 |
|
|
$ |
25.46 |
|
Cash dividends paid
per share |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10.00 |
|
|
$ |
10.00 |
|
Shares outstanding
(000) (weighted average) |
|
26,899 |
|
|
27,550 |
|
|
26,964 |
|
|
27,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOMEfor the three and six months ended June 30,
2019 and 2018(unaudited - US$ millions)
|
|
Second quarter |
|
First six months |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Net earnings |
|
579.5 |
|
|
83.9 |
|
|
1,394.1 |
|
|
1,121.9 |
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be subsequently reclassified to net
earnings |
|
|
|
|
|
|
|
|
Net unrealized foreign currency translation gains (losses) on
foreign operations |
|
55.8 |
|
|
(350.6 |
) |
|
150.4 |
|
|
(428.5 |
) |
Gains (losses) on hedge of net investment in Canadian
subsidiaries |
|
(45.1 |
) |
|
41.1 |
|
|
(89.1 |
) |
|
90.8 |
|
Gains (losses) on hedge of net investment in European
operations |
|
(55.0 |
) |
|
38.8 |
|
|
(39.8 |
) |
|
38.8 |
|
Share of other comprehensive income (loss) of associates, excluding
net gains on defined benefit plans |
|
18.7 |
|
|
(35.7 |
) |
|
(11.0 |
) |
|
(12.1 |
) |
|
|
(25.6 |
) |
|
(306.4 |
) |
|
10.5 |
|
|
(311.0 |
) |
Items that will not be subsequently reclassified to net
earnings |
|
|
|
|
|
|
|
|
Share of net gains on defined benefit plans of associates |
|
3.2 |
|
|
6.5 |
|
|
18.5 |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of income taxes |
|
(22.4 |
) |
|
(299.9 |
) |
|
29.0 |
|
|
(309.0 |
) |
Comprehensive income
(loss) |
|
557.1 |
|
|
(216.0 |
) |
|
1,423.1 |
|
|
812.9 |
|
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
Shareholders of Fairfax |
|
455.9 |
|
|
(120.7 |
) |
|
1,269.1 |
|
|
583.4 |
|
Non-controlling interests |
|
101.2 |
|
|
(95.3 |
) |
|
154.0 |
|
|
229.5 |
|
|
|
557.1 |
|
|
(216.0 |
) |
|
1,423.1 |
|
|
812.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENTED INFORMATION(unaudited - US$
millions)
Net premiums written, net premiums earned and combined ratios
for the insurance and reinsurance operations (excluding Run-off) in
the second quarters and first six months ended June 30, 2019
and 2018 were as follows:
Net Premiums Written
|
Second quarter |
|
First six months |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Northbridge |
382.6 |
|
|
337.7 |
|
|
639.8 |
|
|
576.8 |
|
Odyssey Group |
856.4 |
|
|
790.0 |
|
|
1,654.9 |
|
|
1,479.7 |
|
Crum & Forster |
600.3 |
|
|
511.5 |
|
|
1,140.0 |
|
|
996.3 |
|
Zenith National |
154.0 |
|
|
162.3 |
|
|
427.1 |
|
|
470.7 |
|
Brit |
391.5 |
|
|
387.0 |
|
|
825.2 |
|
|
795.6 |
|
Allied World |
656.5 |
|
|
628.5 |
|
|
1,384.2 |
|
|
1,363.5 |
|
Fairfax Asia |
52.5 |
|
|
46.1 |
|
|
105.3 |
|
|
99.7 |
|
Insurance and Reinsurance - Other |
278.7 |
|
|
312.8 |
|
|
556.2 |
|
|
633.8 |
|
Insurance and reinsurance
operations |
3,372.5 |
|
|
3,175.9 |
|
|
6,732.7 |
|
|
6,416.1 |
|
Net Premiums Earned
|
Second quarter |
|
First six months |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Northbridge |
297.3 |
|
|
275.1 |
|
|
578.8 |
|
|
543.2 |
|
Odyssey Group |
791.2 |
|
|
707.5 |
|
|
1,508.5 |
|
|
1,325.5 |
|
Crum & Forster |
529.4 |
|
|
491.7 |
|
|
1,028.4 |
|
|
959.2 |
|
Zenith National |
182.7 |
|
|
199.6 |
|
|
363.3 |
|
|
395.7 |
|
Brit |
416.6 |
|
|
431.3 |
|
|
807.0 |
|
|
779.3 |
|
Allied World |
626.4 |
|
|
560.8 |
|
|
1,191.2 |
|
|
1,079.2 |
|
Fairfax Asia |
47.6 |
|
|
46.3 |
|
|
93.1 |
|
|
96.1 |
|
Insurance and Reinsurance - Other |
254.7 |
|
|
285.7 |
|
|
498.7 |
|
|
559.4 |
|
Insurance and reinsurance
operations |
3,145.9 |
|
|
2,998.0 |
|
|
6,069.0 |
|
|
5,737.6 |
|
Combined Ratios
|
Second quarter |
|
First six months |
|
2018 |
|
2018 |
|
2019 |
|
2018 |
Northbridge |
99.1 |
% |
|
106.2 |
% |
|
99.4 |
% |
|
102.7 |
% |
Odyssey Group |
96.6 |
% |
|
91.4 |
% |
|
95.5 |
% |
|
91.3 |
% |
Crum & Forster |
97.5 |
% |
|
98.5 |
% |
|
97.6 |
% |
|
99.1 |
% |
Zenith National |
84.5 |
% |
|
88.6 |
% |
|
81.4 |
% |
|
87.4 |
% |
Brit |
96.0 |
% |
|
96.8 |
% |
|
96.4 |
% |
|
97.7 |
% |
Allied World |
97.9 |
% |
|
94.9 |
% |
|
100.0 |
% |
|
94.9 |
% |
Fairfax Asia |
97.9 |
% |
|
99.5 |
% |
|
98.4 |
% |
|
102.1 |
% |
Insurance and Reinsurance - Other |
100.3 |
% |
|
100.2 |
% |
|
100.8 |
% |
|
100.9 |
% |
Insurance and reinsurance
operations |
96.8 |
% |
|
96.1 |
% |
|
96.9 |
% |
|
96.1 |
% |
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