Fairfax reports improvement in 2010 Q2 net income

Fairfax Financial Holdings (TSX: FFH and FFH.U) reported a net income of $325.2 million in 2010 Q2, marking an improvement from 2009 Q2’s net income of $275.4 million.The company attributes the improvement primarily to a $388.7-million gain in investment income in 2010 Q2. Fairfax’s combined ratio in 2010 Q2, on a consolidated basis, was 101.2%, producing an underwriting loss of $13 million. This represents a deterioration since 2009 Q2, when the combined ratio was 98.4% and the company reported an underwriting profit of $17.3 million.Northbridge, Fairfax’s Canadian commercial insurance operations, reported a slight deterioration in its combined operating ratio – from 105.1% in 2009 Q2 to 107.3% in 2010 Q2. Northbridge increased its net premiums earned quarter-over-quarter to $246.1 million in 2010 Q2 from $235.6 million in the same period of 2009.OdysseyRe, Fairfax’s reinsurer, also reported a slight deterioration in combined operating ratio, from 96.5% in 2009 Q2 to 97.1% in 2010 Q2.OdysseyRe’s net premium earned decreased from $480.5 million in 2009 Q2 to $470.5 million in 2010 Q2.