Fairfax experiences a surge in Q2 results

Fairfax Financial Holding’s has reported a surge in its Q2 profit, increasing from US$27.6 million in 2008 Q2 to US$275.4 million in 2009 Q2.The company’s combined ratio for the quarter improved from 2008 Q2’s 105.8% to 98.4% in 2009 Q2.On a consolidated basis, the company turned an underwriting profit of US$17.3 million in the quarter, compared to an underwriting loss of US$65 million during the same period of last year. The company also saw large gains on investments in 2009 Q2 at US$330 million compared to an investment loss of US$47.4 million in 2008 Q2.Northbridge, its Toronto-based commercial insurer, reported a net underwriting loss of US$12.1 million in 2009 Q2, compared to an underwriting profit of $500,000 in 2008 Q2. The insurer’s combined ratio deteriorated quarter-over-quarter to 105.1% from 99.8%.Northbridge reported gains on investments worth US$51.7 million, marking a vast improvement over its US$152.4-million investment loss during the same period last year.Odyssey Re, also a subsidiary of Fairfax, reported a quarterly underwriting profit of US$16.6 million, an increase from its 2008 Q2 underwriting profit of US$6.8 million.Odyssey Re more than doubled its investment gains, increasing from US$50.7 million in 2008 Q2 to US$112.9 million in 2009 Q2. The reinsurer’s combined ratio improved slightly from 98.2% in 2008 Q2 to 96.5% in 2009 Q2.