Fairfax Q1 shareholder net profit plunges, partially due to loss on investments

TORONTO – Fairfax Financial Holdings Ltd. says its net income attributable to shareholders plunged to US$125.5 million in the first quarter, in part due to a loss on investments.

The Toronto-based insurance company, which reports in U.S. dollars, says it earned US$4.49 per diluted share, compared with US$28.91 per share or US$806 million a year earlier.

The results included US$214.4 million in losses on investments, compared with a gain of US$908.7 million in the first quarter of 2021. Fairfax says it had US$262.9 million in net gains on common stocks, but had US$494.1 million in unrealized losses on bonds due to rising interest rates.

Gross premiums written up increased 21.9 per cent to US$6.62 billion while net premiums rose 27.8 per cent to US$5.3 billion.

Revenues for the three months ended March 31 were US$5.98 billion, down from nearly US$6 billion in the year-ago period.

Fairfax was expected to earn US$3.96 per share on US$6.15 billion in revenues, according to financial data firm Refinitiv.

This report by The Canadian Press was first published April 28, 2022.

Companies in this story: (TSX:FFH)