Fairfax Financial reports net income drop as investments underperform

TORONTO – Fairfax Financial Holdings Ltd. says its profits dropped by 78 per cent in the third quarter compared with last year as it took a hit from investments.

The insurance-focused financial services company says net income came in at US$106.2 million, or US$3.34 per diluted share after dividends, down from the US$476.9 million or US$16.42 per share for the same quarter last year.

Analysts had expected a profit of US$283.7 million, or US$9.50 per share, according to Thomson Reuters Eikon.

Underwriter profit was US$74.2 million for the quarter ending Sept. 30, compared with a net loss of US$833 million for last year as the company recorded fewer catastrophe losses.

Investment income showed a US$41.2 million gain in the quarter, compared with a US$1.1 billion gain for the same quarter last year.

The company booked US$2.96 billion in net premiums, up from US$2.78 billion last year.

Companies in this story: (TSX:FFH)