Financial Results for the Third Quarter TORONTO, Nov. 04, 2021 (GLOBE NEWSWIRE) --
| (Note: | All dollar amounts in this news release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from financial statements prepared using the recognition and measurement requirements of International Financial Reporting Standards as issued by the International Accounting Standards Board except as otherwise noted, and are unaudited.) |
Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) announces net earnings of $462.4 million ($16.44 net earnings per diluted share after payment of preferred share dividends) in the third quarter of 2021 compared to net earnings of $133.7 million ($4.44 net earnings per diluted share after payment of preferred share dividends) in the third quarter of 2020. Book value per basic share at September 30, 2021 was $561.88 compared to $478.33 at December 31, 2020 (an increase of 19.7% adjusted for the $10 per common share dividend paid in the first quarter of 2021). Net earnings in the first nine months of 2021 was $2,469.8 million compared to a net loss of $690.7 million in the first nine months of 2020, reflecting strong performance across the business.
"Core underwriting performance in the third quarter of 2021 continued to be very strong, with growth in gross premiums written of 24.8%. Despite significant catastrophe losses, principally from Hurricane Ida and the European floods, of $604.6 million or 13.9 combined ratio points, our consolidated combined ratio was only marginally above 100% at 101.1% in the quarter (97.3% year to date), reflecting continued strong performance at Northbridge (89.6%), Zenith National (92.1%) and Allied World (94.4%), with the catastrophe losses principally impacting Odyssey Group (109.5%) and Brit (118.0%). Operating income was stable at $244.7 million, reflecting increased share of profit of associates and reduced COVID-19 losses, partially offset by the catastrophe losses which increased by $386.0 million in the third quarter of 2021 compared to 2020.
"Net gains on investments of $374.6 million primarily reflected net gains of $397.0 million on Digit compulsorily convertible preference shares. Not reflected in our financial statements are mark-to-market movements on our non-insurance investments in associates and consolidated investments, which at the end of the third quarter had an excess of fair value over adjusted carrying value of approximately $483.0 million or a pre-tax gain of $19 per basic share. Upon the closing of Digit Insurance's placement of common shares, now expected to occur in the fourth quarter, and when the company obtains regulatory approvals to increase its equity interest in Digit above 49%, we anticipate recording additional gains of approximately $1.1 billion or $37 in book value per basic share.
"We continue to focus on being soundly financed and ended the quarter with approximately $1.5 billion in cash and investments in the holding company, our credit facility fully undrawn, and our debt to total capital ratio reduced to 25.7%," said Prem Watsa, Chairman and Chief Executive Officer.
https://www.globenewswire.com/news-release/2021/11/04/2328168/0/en/Fairfax-Financial-Holdings-Limited-Financial-Results-for-the-Third-Quarter.html