Fairfax’s 2007 Q2 profit down

Fairfax Financial Holdings Limited (TSX: FFH) announced a 2007 Q2 profit of Cdn$168.1 million, down from 2006 Q2 earnings of Cdn$229.2 million.

Northbridge Financial Corporation (TSX: NB) and Odyssey Re Holdings Corp, Fairfax’s primary insurance and reinsurance operations, announced 2007 Q2 net earnings of Cdn$116.7 million and Cdn$153.38 million.

These financial results represent an increase in profit of Cdn$79.4 million for Northbridge and a decrease in profit of Cdn$65.58 million for Odyssey Re over 2006 Q2.

The combined ratio of Fairfax’s insurance and reinsurance operations for 2007 Q2 was 92.4% on a consolidated basis: Northbridge had a CR of 86.9% and Odyssey Re 93.9%.

Odyssey Re saw a decrease of 5.3% in gross premiums written over 2006 Q2. Northbridge reported an underwriting profit of Cdn$35.5 million during this same period, marking a significant improvement from 2006 Q2’s underwriting loss of Cdn$38.3 million.

Fairfax’s consolidated underwriting profit for 2007 Q2 at the company’s insurance and reinsurance operations – which includes, as well as Northbridge and Odyssey Re, Crum & Foster, Fairfax Asia, and Group Re – was Cdn$87.2 million, compared to an underwriting loss of Cdn$1.6 million for the same period in 2006.

The Co-operators’ 2007 Q2 net income drops marginally

Co-operators General Insurance Company announced its 2007 Q2 net income was down marginally, dropping from Cdn$49.6 million in 2006 Q2 to Cdn$48.9 million in 2007 Q2.

The company’s 2007 Q2 gross written premium decreased 0.7% to Cdn$$598.6, compared to Cdn$602.8 million in 2006 Q2.

At the same time, the company’s loss and combined ratios were both down for the quarter. The 2007 Q2 loss ratio dipped to 61.8%, compared to 63.1% during the comparable period last year. And the 2007 Q2 combined ratio of claims and operating expenses was 92.5%, compared to 93.8% for 2006 Q2.

“Following a challenging first quarter of 2007, we are pleased that our results improved in the second quarter and are very consistent with the same period last year,” The Co-operators president and CEO Kathy Bardswick said in a press release. “Net investment income is down compared to last year, but our underwriting results are an improvement over the same quarter last year and the organization’s financial strength remains solid.”

Net earned premium growth was 2.3% from the previous year. Net investment income and realized gains totalled Cdn$39 million, a decrease of 13.3% from the Cdn$45 million reported for 2006.