Market MoversOn The Rise Fairfax Financial Holdings Ltd. saw gains after reporting better-than-anticipated quarterly results after the bell on Thursday
The Toronto-based holding company announced an earnings per share loss of US$3.65 per diluted share, beating the Street’s expectation of a US$13.94 loss.
Fairfax says it saw net losses on investments total $519.1-million on bonds as interest rates rose, as well as stocks and currency exchange.
Gross premiums written were up 16.3 per cent to $6.92 billion, while net premiums written rose by 18.6 per cent to $5.61 billion, both of which the company attributed primarily to new business and continued incremental rate increases.
Revenues for the three months ended Sept. 30 were $6.84-billion, up from $6.71-billion last year.
Calling it a “nice EPS beat,” BMO analyst Tom MacKinnon said: “Reported EPS loss of US$3.65, versus our US$12.53 loss, helped by better earnings from associates/non-insurance operations, partially offset by weaker underwriting results. Despite better EPS, all-important BVPS was 1% lower than expected, at US$570, largely due to larger AOCI hit than expected. We’re increasing [our] 2023 EPS estimate by 6 per cent, reflecting increased interest income, improving earnings visibility in non-insurance segment, partially offset by increased CAT load. ... Good quarter but still a ‘show me’ story. A more consistent track record is needed before becoming more constructive.”