Fairfax reports 2005 Q4 and year-end net loss

Fairfax Financial Holdings Ltd. has reported a net loss of Cdn$318.1 million in the fourth quarter of 2005 and Cdn$497.9 million for 2005.

The Toronto-based company says damages caused by Hurricanes Katrina, Rita and Wilma resulted in a loss of Cdn$249.5 during the fourth quarter and Cdn$715.5 million for the entire year. Despite the losses, Fairfax reported strong underwriting results for its insurance and reinsurance operations prior to the hurricane-related losses. Before considering the hurricane losses, Fairfax’s combined ratios were 92% (insurance) and 93.7% (reinsurance).

All of Fairfax’s operating companies produced a combined ratio, excluding hurricane losses, of below 100%.

Fairfax’s insurance and reinsurance operations together incurred an underwriting loss of Cdn$330.6 million in 2005. Excluding hurricane losses, Fairfax’s operations would have generated an underwriting profit of Cdn$279.3 million.