Fairfax’s net earnings rise in 2006 Q1

Fairfax Financial Holdings Limited (TSX:FFH.SV, NYSE:FFH) had net earnings of US$172.1 million during the first quarter of 2006, compared to US$35.2 million in 2005, the company has announced.

“Despite some softening in market conditions, the [2006 Q1] combined ratio of the company’s insurance and reinsurance operations improved to 96.0% (from 96.9% in 2005),” Fairfax announced in a press release. “Northbridge [Canada], Crum & Forster [U.S.] and OdysseyRe [Reinsurance] produced combined ratios of 91.0%, 98.4% and 97.3% respectively.”

During the same quarter in 2005, Northbridge, Crum & Forster and Odyssey Re produced combined ratios of 91.4%, 95.9% and 99.8% respectively.

Total revenue for Fairfax during 2006 Q1 amounted to US$1.68 billion, compared to the US$1.47 billion the company reported during 2005 Q1.

Underwriting profit at the company’s insurance and reinsurance operations increased to US$41.8 million in 2006 from US$33.5 million in 2005.

The company’s realized gains on investments increased to US$268 million in 2006 from US$131.4 million in 2005. Cash and investments increased to US$15.3 billion in March 2006 from US$14.9 billion in 2005.