Fairfax Financial maintains strong investment gains in 2009

Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) has reported net earnings of $856.8 million in 2009, marking a decrease from the $1.4 billion reported in 2008.Its combined ratio for last year was 99.8%, marking an improvement from 2008’s consolidated combined ratio of 110.1%.Net investment gains decreased to $945 million for the year, down from the “extraordinary” $2.6-billion investment gain in 2008.Northbridge, the company’s commercial insurer, reported a combined ratio of 105.9%, a deterioration from 2008’s combined ratio of 103.5%. Northbridge’s net premiums written decreased 15.5% in 2009 to $928.7 million. Its underwriting income declined from a $37.9-million loss in 2008 to a $57.1-million loss in 2009. Northbridge’s net earnings for last year were $91.8 million, marking an improvement from 2008’s net earnings of $45.7 million.OdysseyRe, Fairfax’s reinsurance unit, reported a combined ratio of 96.7% in 2009, marking an improvement from 2008’s combined ratio of 101.2%.The reinsurance unit reported net earnings of $486.9 million last year, a decrease from 2008’s $549 million. Underwriting income for the unit improved from the $27.7-million loss reported in 2008 to an underwriting income of $64.3 million last year.