Fairfax Financial Holdings has reported that it achieved net earnings of $1.07 billion in Q3 of 2023, up from $499.4 million in Q3 of 2022.
The firm’s Q3 adjusted operating income stood at $967.2 million, which Fairfax said reflects its strong core underwriting performance, increased interest and dividends and favourable results from profit of associates.
Elsewhere, Fairfax’s Q3 gross premiums written were $7.3 billion, up from $6.9 billion in the same quarter of 2022.
Net premiums written by the property and casualty insurance and reinsurance operations increased 4.8% to $5,837.9 million.
Meanwhile, the consolidated combined ratio of the property and casualty insurance and reinsurance operations was 95%, producing an underwriting profit of $291.6 million, compared to a combined ratio of 100.3% and an underwriting loss of $16.9 million in 2022.
According to Fairfax, this was driven by decreased catastrophe losses of $388.7 million or 6.7 combined ratio points in the quarter, continued improvement in current accident year underwriting margins from prudent underwriting and continued growth in business volumes (net insurance revenue increased by 11.3%).
Prem Watsa, Chairman and Chief Executive Officer, added, “Net gains on investments of $56 million in the quarter was principally comprised of mark-to-market gains on common stocks of $273.3 million, which was largely offset by mark-to-market losses on bonds of $196.7 million due to continued rising interest rates.
“We remain focused on being soundly financed and ended the quarter with approximately $1.2 billion in cash and investments in the holding company.”
