(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 ("IFRS"), except as otherwise noted, and are unaudited. This news release contains certain non-GAAP and other financial measures, including underwriting profit (loss), operating income (loss), combined ratio, combined ratio points, float, book value per basic share, total debt to total capital ratio, excluding non-insurance companies and excess (deficiency) of fair value over adjusted carrying value, that do not have a prescribed meaning under IFRS and may not be comparable to similar financial measures presented by other issuers. See "Glossary of non-GAAP and other financial measures" at the end of this news release for further details.)
TORONTO, Feb. 10, 2022 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) announces fiscal year 2021 net earnings of $3,401.1 million ($122.25 net earnings per diluted share after payment of preferred share dividends) compared to fiscal year 2020 net earnings of $218.4 million ($6.29 net earnings per diluted share after payment of preferred share dividends). Book value per basic share at December 31, 2021 was $630.60 compared to $478.33 at December 31, 2020 (an increase of 34.2% adjusted for the $10 per common share dividend paid in the first quarter of 2021).
"2021 was the best year we have had in our history. We had record net earnings of $3.4 billion and growth in book value per share of 34.2% (adjusted for the $10 per common share dividend paid in the first quarter) to $630.60. At $23.8 billion, our gross premium grew by 25.4% in 2021 or $4.8 billion - essentially all organic and the most in any one year in our history. All of our major insurance and reinsurance companies achieved a combined ratio below 100% for a consolidated combined ratio of 95.0%, despite significant catastrophe losses of $1.1 billion or 7.2 combined ratio points. Core underwriting performance was exceptionally strong with a combined ratio excluding catastrophe losses of 87.8% with continued strong reserving.
"Our net gains on investments of $3.4 billion included net gains of $2.3 billion on equity exposures and net gains of $1.5 billion on Digit compulsorily convertible preference shares, partially offset by losses on the bond portfolio of $287 million.
"We ended 2021 in a strong financial position with $1.5 billion in cash and investments in the holding company, our debt to capital ratio reduced to 24.1%, and no significant holding company debt maturities until 2024.
"Throughout 2020 and 2021, I stated publicly that the market price of Fairfax shares was ridiculously cheap. We were able to take advantage of this opportunity and on December 29, 2021 we successfully completed a substantial issuer bid, purchasing and cancelling 2 million shares at a price of $500.00 per share," said Prem Watsa, Chairman and Chief Executive Officer.
https://www.globenewswire.com/news-release/2022/02/10/2383321/0/en/Fairfax-Financial-Holdings-Limited-Financial-Results-for-the-Year-Ended-December-31-2021.html