Fairfax Financial Holdings Ltd. (FFH.TO) reported net income for the second quarter of US$95.0 million or US$3.85 per share, compared to US$83.3 million or US$3.40 per share for the year-ago quarter.
The increase in second quarter 2012 profit reflects improved underwriting results, with a consolidated combined ratio of 97.5%, and lower losses on repurchase of long term debt, partially offset by lower interest and dividend income, lower net investment gains and higher income tax expense.
Revenue for the second quarter was US$1.74 billion, compared to US$1.76 billion in the same quarter last year.
Net premiums earned for the second quarter rose to US$1.38 billion from US$1.28 billion a year earlier.
The combined ratio of the insurance and reinsurance operations was 97.5% on a consolidated basis, producing an underwriting profit of US$34.8 million in the second quarter, compared to a combined ratio and underwriting loss of 100.5% and US$6.1 million respectively in 2011. Underwriting results in 2011 were negatively affected by catastrophe losses related to U.S. tornadoes.
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