Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) announces
net earnings of $1,250.0 million ($49.38 net earnings per diluted
share after payment of preferred share dividends) in the first
quarter of 2023 compared to net earnings of $588.7 million ($22.67
net earnings per diluted share after payment of preferred share
dividends) in the first quarter of 2022. Book value per basic share
at March 31, 2023 was $803.49 compared to $762.28 at
December 31, 2022 (an increase of 6.8% adjusted for the $10
per common share dividend paid in the first quarter of 2023).
"We got off to a great start in 2023, with our
property and casualty insurance and reinsurance operations
producing operating income of $1,309.3 million ($843.0 million
excluding discounting and risk adjustment on claims of $466.3
million) for the first quarter, reflecting increased interest and
dividends, increased share of profit of associates and strong
insurance service result. Our underwriting performance in the first
quarter of 2023 continued to produce favourable results, with
additional growth in gross premiums written of 7.2% and net
premiums written of 6.1%, primarily reflecting new business and
continued incremental rate increases in certain lines of business.
We achieved underwriting profit of $313.8 million on an
undiscounted basis and a consolidated combined ratio of 94.0% for
the quarter.
"On January 1, 2023 we were required to adopt
the new accounting standard for insurance contracts (IFRS 17) –
with the most significant changes being the discounting of our
insurance liabilities and a specific risk margin for uncertainty.
As we have stated before, this new reporting requirement will not
change the way management evaluates the business and we will
continue to be focused on underwriting profit on an undiscounted
basis with strong reserving. The effects of discounting and risk
adjustment in the quarter resulted in an increase to pre-tax
earnings of $309.6 million.
"Net gains on investments of $771.2 million in
the quarter were principally comprised of mark to market gains on
common stocks of $410.4 million and bonds of $319.0 million. The
pre-tax gain on the sale of Brit's MGA Ambridge of approximately
$255 million was not accounted for in the first quarter as the
transaction only closed on May 10, 2023. Also, on closing of the
Gulf Insurance transaction, the company expects it will record a
pre-tax gain of approximately $300 million when our equity interest
increases from 43.7% to a controlling interest of 90.0%.
"As we have previously said, we have increased
our interest and dividend annual run-rate to over $1.5 billion and
have locked it in at this level for the next three years. Our fixed
income portfolio is conservatively positioned with effectively 80%
of our fixed income portfolio in government bonds and only 14% in
primarily short-dated corporate bonds.
"We continue to focus on being soundly financed
and ended the quarter with approximately $1.0 billion in cash and
investments in the holding company, which does not include any
proceeds from the sale of Brit's MGA Ambridge that closed on May
10, 2023," said Prem Watsa, Chairman and Chief Executive
Officer.
The table below presents the sources of the
company's net earnings in a format which the company has
consistently used as it believes it assists in understanding
Fairfax:
|
First quarter |
|
2023 |
|
|
2022 |
|
|
($ millions) |
Gross premiums written |
7,138.5 |
|
|
6,662.9 |
|
Net premiums written |
5,663.1 |
|
|
5,342.7 |
|
Net insurance revenue |
5,159.9 |
|
|
4,674.4 |
|
|
|
|
|
Sources of net
earnings |
|
|
|
Operating income - Property
and Casualty Insurance and Reinsurance: |
|
|
|
Insurance service result: |
|
|
|
North American Insurers |
275.8 |
|
|
211.6 |
|
Global Insurers and Reinsurers |
625.3 |
|
|
399.1 |
|
International Insurers and Reinsurers |
76.6 |
|
|
51.2 |
|
Insurance service result |
977.7 |
|
|
661.9 |
|
Other insurance operating expenses |
(197.6 |
) |
|
(170.0 |
) |
|
780.1 |
|
|
491.9 |
|
Interest and dividends |
311.5 |
|
|
110.5 |
|
Share of profit of associates |
217.7 |
|
|
127.5 |
|
Operating income - Property
and Casualty Insurance and Reinsurance |
1,309.3 |
|
|
729.9 |
|
Operating income - Life
insurance and Run-off |
3.4 |
|
|
44.6 |
|
Operating income (loss) -
Non-insurance companies |
(0.6 |
) |
|
27.1 |
|
Net finance income (expense)
from insurance contracts and reinsurance contract assets held |
(163.4 |
) |
|
419.0 |
|
Net gains (losses) on
investments |
771.2 |
|
|
(195.2 |
) |
Interest expense |
(124.3 |
) |
|
(103.9 |
) |
Corporate overhead and other
expense |
(26.5 |
) |
|
(16.3 |
) |
Earnings before income
taxes |
1,769.1 |
|
|
905.2 |
|
Provision for income
taxes |
(365.1 |
) |
|
(206.4 |
) |
Net
earnings |
1,404.0 |
|
|
698.8 |
|
|
|
|
|
Attributable to: |
|
|
|
Shareholders of Fairfax |
1,250.0 |
|
|
588.7 |
|
Non-controlling interests |
154.0 |
|
|
110.1 |
|
|
1,404.0 |
|
|
698.8 |
|
The table below presents the insurance service
result for the property and casualty insurance and reinsurance
operations reconciled to underwriting profit, a key performance
measure used by the company and the property and casualty industry
in which it operates. The reconciling adjustments are (i) other
insurance operating expenses as presented on the consolidated
statement of earnings, and (ii) the effects of discounting of
losses and ceded losses on claims recorded in the period and the
effects of the risk adjustment and other, which are presented in
insurance service expenses and recoveries of insurance service
expenses.
|
First Quarter |
|
2023 |
|
|
2022 |
|
|
($ millions) |
Insurance service
result |
977.7 |
|
|
661.9 |
|
Other insurance operating expenses |
(197.6 |
) |
|
(170.0 |
) |
Discounting of losses and ceded losses on claims recorded in the
period |
(422.4 |
) |
|
(175.7 |
) |
Changes in the risk adjustment and other |
(43.9 |
) |
|
8.2 |
|
Underwriting
profit |
313.8 |
|
|
324.4 |
|
Interest and dividends |
311.5 |
|
|
110.5 |
|
Share of profit of
associates |
217.7 |
|
|
127.5 |
|
Adjusted operating
income - Property and Casualty Insurance and
Reinsurance |
843.0 |
|
|
562.4 |
|
Adoption of IFRS 17
Insurance Contracts ("IFRS 17") on January
1, 2023
On January 1, 2023 Fairfax adopted the new
accounting standard for insurance contracts (IFRS 17).
- It resulted in
considerable changes to the recognition, measurement, presentation
and disclosure of the company’s insurance and reinsurance
operations – the most significant being the discounting of the
company's net insurance liabilities and a new risk adjustment for
uncertainty.
- This new
accounting standard has not changed the way management evaluates
the performance of its property and casualty insurance and
reinsurance operations. The company remains focused on underwriting
profit on an undiscounted basis with strong reserving with all of
the property and casualty insurance and reinsurance operations
continuing to use the traditional performance measures of gross
premiums written, net premiums written and combined ratios to
manage the business.
- The cumulative
effect of implementing IFRS 17 was $2.4 billion and was recognized
as an increase in common shareholders' equity at December 31,
2022 (an increase in book value per share of $104.60), primarily
reflecting the introduction of discounting net claims reserves of
$4.7 billion, partially offset by a risk adjustment of $1.6 billion
for uncertainty related to the timing and amount of cash flows from
non-financial risk and by the tax effect of the measurement changes
and other of $0.7 billion.
- The new standard
increased common shareholders' equity at December 31, 2022 to
$17.8 billion, a book value per share of $762.28.
Highlights for the first quarter of 2023 (with
comparisons to the first quarter of 2022 except as otherwise noted,
and excluding the effects of IFRS 17 when discussing the combined
ratio and adjusted operating income) include the following:
- Net premiums
written by the property and casualty insurance and reinsurance
operations increased 6.1% to $5,619.4 million from
$5,297.3 million, while gross premiums written increased by
7.2%.
- The consolidated
combined ratio of the property and casualty insurance and
reinsurance operations was 94.0%, producing an underwriting profit
of $313.8 million, compared to a combined ratio of 93.1% and
an underwriting profit of $324.4 million in 2022, driven by
continued growth in business volumes (net insurance revenue
increased by 10.6%) and prudent expense management, partially
offset by increased catastrophe losses of $191.9 million or
3.7 combined ratio points in the quarter.
- Adjusted
operating income of the property and casualty insurance and
reinsurance operations increased by 49.9% to $843.0 million from
$562.4 million, principally due to increased interest and dividend
income and share of profit of associates.
- Net finance
expense from insurance contracts and reinsurance contract assets
held of $163.4 million reflected interest accretion as a result of
the unwinding of the effects of discounting recognized at higher
interest rates compared to net finance income from insurance
contracts and reinsurance contract assets held of $419.0 million in
the prior year that benefited from the significant increase in
discount rates during the quarter, the effects of which exceeded
the interest accretion.
- Consolidated
interest and dividends increased significantly in the quarter from
$168.9 million to $382.3 million. At March 31, 2023 the
company's insurance and reinsurance companies held portfolio
investments of $54.5 billion (excluding Fairfax India's portfolio
of $2.0 billion), of which approximately $7.5 billion was in cash
and short term investments representing approximately 13.7% of
those portfolio investments. During the first quarter of 2023 the
company used net proceeds from sales and maturities of short dated
U.S. treasuries to purchase $5.9 billion of U.S. treasuries with
maturities between 3 to 5 years, which will benefit interest and
dividend income in the remainder of 2023.
- Consolidated
share of profit of associates of $333.8 million principally
reflected share of profit of $94.6 million from Eurobank, $69.2
million from EXCO Resources Inc., $50.1 million from Poseidon
(formerly Atlas Corp.) and $28.7 million from Gulf Insurance.
- Net gains on investments of $771.2
million consisted of the following:
|
First quarter of 2023 |
|
($ millions) |
|
Realizedgains(losses) |
|
|
Unrealizedgains |
|
|
Netgains |
|
Net gains (losses) on: |
|
|
|
|
|
|
|
Equity exposures |
172.7 |
|
|
237.7 |
|
|
410.4 |
|
Bonds |
(331.9 |
) |
|
650.9 |
|
|
319.0 |
|
Other |
(63.1 |
) |
|
104.9 |
|
|
41.8 |
|
|
(222.3 |
) |
|
993.5 |
|
|
771.2 |
|
Net gains on equity exposures of $410.4 million
was primarily comprised of unrealized gains on common stocks,
convertible bonds and preferred stocks and net gains on equity
derivatives. At March 31, 2023 the company continued to hold
equity total return swaps on 1,964,155 Fairfax subordinate voting
shares with an original notional amount of $732.5 million
(Cdn$935.0 million) or approximately $372.96 (Cdn$476.03) per
share, on which the company recorded $139.8 million of net gains in
the first quarter of 2023.
Net gains on bonds of $319.0 million included
net gains of $216.9 million on U.S. treasuries and net gains of
$55.8 million on corporate and other bonds (principally U.S. and
other corporate bonds).
- The
Non-insurance companies reporting segment had an operating loss of
$0.6 million in the first quarter of 2023 compared to operating
income of $27.1 million in the first quarter of 2022. Excluding
non-cash charges and adjustments and the operating loss at Grivalia
Hospitality (consolidated on July 5, 2022), which together totaled
$74.7 million in the first quarter of 2023, operating income
increased by $47.0 million to $74.1 million, principally reflecting
higher share of profit of associates and increased interest and
dividend income at Fairfax India and higher business volumes at
AGT.
- Interest expense
of $124.3 million (inclusive of $13.0 million on leases) was
principally comprised of $81.8 million incurred on borrowings by
the holding company and the insurance and reinsurance companies and
$29.5 million incurred on borrowings by the non-insurance companies
(which are non-recourse to the holding company).
- At
March 31, 2023 the excess of fair value over carrying value of
investments in non-insurance associates and consolidated
non-insurance subsidiaries was $439.1 million.
- The company's
total debt to total capital ratio, excluding non-insurance
companies, decreased to 22.9% at March 31, 2023 compared to
23.7% at December 31, 2022, principally reflecting increased
common shareholders' equity as a result of the strong net earnings
reported in the quarter.
- During the first
quarter of 2023 the company purchased 156,685 of its subordinate
voting shares for cancellation at an aggregate cost of $100.0
million.
- Transactions closing or closed
subsequent to March 31, 2023:
- On May 10, 2023
Brit completed the sale of Ambridge Group ("Ambridge"), its
Managing General Underwriter operations, to Amynta Group. In the
second quarter of 2023 Brit will deconsolidate the assets and
liabilities of Ambridge and will record a pre-tax gain of
approximately $255 million (prior to ascribing any fair value to
the potential additional receivable).
- On April 19, 2023 the company
entered into an agreement to acquire all shares of Gulf Insurance
Group K.S.C.P. (“Gulf Insurance”) under the control of KIPCO and
certain of its affiliates, representing 46.3% of the equity of Gulf
Insurance. On closing of the transaction, which is expected to be
in the second half of 2023, the company's equity interest in Gulf
Insurance will increase from 43.7% to a controlling interest of
90.0%. The company anticipates that upon closing it will
consolidate the assets and liabilities of Gulf Insurance and will
record a pre-tax gain of approximately $300 million, with changes
in the company's carrying value of its equity accounted investment
in Gulf Insurance up until the date of closing impacting the
pre-tax gain.
There were 23.3 million and 23.8 million
weighted average common shares effectively outstanding during the
first quarters of 2023 and 2022 respectively. At March 31,
2023 there were 23,228,539 common shares effectively
outstanding.
Consolidated balance sheet, earnings and
comprehensive income information, together with segmented premium
and combined ratio information, follow and form part of this news
release.
As previously announced, Fairfax will hold a
conference call to discuss its first quarter 2023 results at 8:30
a.m. Eastern time on Friday May 12, 2023. The call, consisting
of a presentation by the company followed by a question period, may
be accessed at 1 (888) 390-0867 (Canada or U.S.) or 1 (212)
547-0141 (International) with the passcode “FAIRFAX”. A replay of
the call will be available from shortly after the termination of
the call until 5:00 p.m. Eastern time on Friday, May 26, 2023.
The replay may be accessed at 1 (800) 814-6746 (Canada or U.S.) or
1 (203) 369-3827 (International).
Fairfax Financial Holdings Limited is a holding
company which, through its subsidiaries, is primarily engaged in
property and casualty insurance and reinsurance and the associated
investment management.
For further information, contact: |
John VarnellVice President, Corporate Development(416)
367-4941 |
|
|
CONSOLIDATED BALANCE SHEETSas at March 31,
2023, December 31, 2022 and January 1, 2022 (US$ millions
except per share amounts)
|
|
March 31,2023 |
|
December 31,2022 |
|
January 1,2022 |
|
|
|
|
|
Restated(1) |
|
Restated(1) |
Assets |
|
|
|
|
|
|
|
|
Holding company cash and investments (including assets pledged for
derivative obligations – $208.9; December 31, 2022 – $104.6;
January 1, 2022 – $111.0) |
|
971.6 |
|
|
1,345.8 |
|
|
1,478.3 |
|
Insurance contract
receivables |
|
613.9 |
|
|
648.9 |
|
|
650.1 |
|
|
|
|
|
|
|
|
|
|
Portfolio investments |
|
|
|
|
|
|
|
|
Subsidiary cash and short term
investments (including restricted cash and cash equivalents –
$731.0; December 31, 2022 – $854.4; January 1, 2022 –
$1,246.4) |
|
7,455.7 |
|
|
9,368.2 |
|
|
21,799.5 |
|
Bonds (cost $32,271.3;
December 31, 2022 – $29,534.4; January 1, 2022 – $13,836.3) |
|
32,054.0 |
|
|
28,578.5 |
|
|
14,091.2 |
|
Preferred stocks (cost $777.7;
December 31, 2022 – $808.3; January 1, 2022 – $576.6) |
|
2,324.4 |
|
|
2,338.0 |
|
|
2,405.9 |
|
Common stocks (cost $5,600.0;
December 31, 2022 – $5,162.6; January 1, 2022 – $4,717.2) |
|
5,823.6 |
|
|
5,124.3 |
|
|
5,468.9 |
|
Investments in associates
(fair value $7,139.4; December 31, 2022 – $6,772.9; January 1, 2022
– $5,671.9) |
|
6,035.4 |
|
|
6,093.1 |
|
|
4,749.2 |
|
Derivatives and other invested
assets (cost $872.3; December 31, 2022 – $869.8; January 1, 2022 –
$888.2) |
|
849.4 |
|
|
828.5 |
|
|
991.2 |
|
Assets pledged for derivative
obligations (cost $111.9; December 31, 2022 – $52.4; January 1,
2022 – $119.6) |
|
113.4 |
|
|
51.3 |
|
|
119.6 |
|
Fairfax India cash, portfolio
investments and associates (fair value $3,079.1; December 31, 2022
– $3,079.6; January 1, 2022 – $3,336.4) |
|
1,982.6 |
|
|
1,942.8 |
|
|
2,066.0 |
|
|
|
56,638.5 |
|
|
54,324.7 |
|
|
51,691.5 |
|
|
|
|
|
|
|
|
|
|
Reinsurance contract assets
held |
|
9,891.6 |
|
|
9,691.5 |
|
|
9,893.1 |
|
Deferred income tax
assets |
|
132.9 |
|
|
137.3 |
|
|
449.1 |
|
Goodwill and intangible
assets |
|
5,737.2 |
|
|
5,689.0 |
|
|
5,928.2 |
|
Other assets |
|
7,183.6 |
|
|
6,981.3 |
|
|
6,034.1 |
|
Total assets |
|
81,169.3 |
|
|
78,818.5 |
|
|
76,124.4 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities |
|
4,918.8 |
|
|
4,806.6 |
|
|
4,587.6 |
|
Derivative obligations |
|
301.3 |
|
|
191.0 |
|
|
152.9 |
|
Deferred income tax
liabilities |
|
1,071.0 |
|
|
868.0 |
|
|
586.5 |
|
Insurance contract
payables |
|
1,440.0 |
|
|
1,402.7 |
|
|
1,826.0 |
|
Insurance contract
liabilities |
|
40,691.4 |
|
|
39,906.6 |
|
|
39,742.2 |
|
Borrowings – holding company
and insurance and reinsurance companies |
|
6,631.7 |
|
|
6,621.0 |
|
|
6,129.3 |
|
Borrowings – non-insurance
companies |
|
2,086.6 |
|
|
2,003.9 |
|
|
1,623.7 |
|
Total liabilities |
|
57,140.8 |
|
|
55,799.8 |
|
|
54,648.2 |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Common shareholders’
equity |
|
18,663.8 |
|
|
17,780.3 |
|
|
15,199.8 |
|
Preferred stock |
|
1,335.5 |
|
|
1,335.5 |
|
|
1,335.5 |
|
Shareholders’ equity
attributable to shareholders of Fairfax |
|
19,999.3 |
|
|
19,115.8 |
|
|
16,535.3 |
|
Non-controlling interests |
|
4,029.2 |
|
|
3,902.9 |
|
|
4,940.9 |
|
Total equity |
|
24,028.5 |
|
|
23,018.7 |
|
|
21,476.2 |
|
|
|
81,169.3 |
|
|
78,818.5 |
|
|
76,124.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per basic
share |
|
803.49 |
|
|
762.28 |
|
|
636.89 |
|
|
|
|
|
|
|
|
|
|
|
(1) Restated for the transition to IFRS 17.
CONSOLIDATED STATEMENTS OF EARNINGSfor the
three months ended March 31, 2023 and 2022(US$ millions except per
share amounts)
|
|
First quarter |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
Restated(1) |
|
Insurance |
|
|
|
|
Insurance revenue |
|
6,279.9 |
|
|
5,638.2 |
|
Insurance service expenses |
|
(5,177.4 |
) |
|
(4,697.8 |
) |
Net insurance result |
|
1,102.5 |
|
|
940.4 |
|
Cost of reinsurance |
|
(1,120.0 |
) |
|
(963.8 |
) |
Recoveries of insurance service expenses |
|
1,004.3 |
|
|
691.1 |
|
Net reinsurance result |
|
(115.7 |
) |
|
(272.7 |
) |
Insurance service result |
|
986.8 |
|
|
667.7 |
|
Other insurance operating expenses |
|
(246.1 |
) |
|
(144.4 |
) |
Net finance income (expense) from insurance contracts |
|
(225.8 |
) |
|
513.6 |
|
Net finance income (expense) from reinsurance contract assets
held |
|
62.4 |
|
|
(94.6 |
) |
|
|
577.3 |
|
|
942.3 |
|
Investment
income |
|
|
|
|
Interest and dividends |
|
382.3 |
|
|
168.9 |
|
Share of profit of associates |
|
333.8 |
|
|
180.6 |
|
Net gains (losses) on investments |
|
771.2 |
|
|
(195.2 |
) |
|
|
1,487.3 |
|
|
154.3 |
|
Other revenue and
expenses |
|
|
|
|
Non-insurance revenue |
|
1,558.4 |
|
|
1,066.3 |
|
Non-insurance expenses |
|
(1,623.1 |
) |
|
(1,075.0 |
) |
Interest expense |
|
(124.3 |
) |
|
(103.9 |
) |
Corporate and other expenses |
|
(106.5 |
) |
|
(78.8 |
) |
|
|
(295.5 |
) |
|
(191.4 |
) |
Earnings before income
taxes |
|
1,769.1 |
|
|
905.2 |
|
Provision for income
taxes |
|
(365.1 |
) |
|
(206.4 |
) |
Net
earnings |
|
1,404.0 |
|
|
698.8 |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
Shareholders of Fairfax |
|
1,250.0 |
|
|
588.7 |
|
Non-controlling interests |
|
154.0 |
|
|
110.1 |
|
|
|
1,404.0 |
|
|
698.8 |
|
|
|
|
|
|
Net earnings per
share |
|
53.17 |
|
|
24.23 |
|
Net earnings per
diluted share |
|
49.38 |
|
|
22.67 |
|
Cash dividends paid
per share |
|
10.00 |
|
|
10.00 |
|
Shares outstanding
(000) (weighted average) |
|
23,282 |
|
|
23,838 |
|
|
|
|
|
|
|
|
(1) Restated for the transition to IFRS 17.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
for the three months ended March 31, 2023 and 2022(US$
millions)
|
|
First quarter |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
Restated(1) |
|
|
|
|
|
|
Net
earnings |
|
1,404.0 |
|
|
698.8 |
|
|
|
|
|
|
Other comprehensive
income (loss), net of income taxes |
|
|
|
|
|
|
|
|
|
Items that may be reclassified to net
earnings |
|
|
|
|
Net unrealized foreign currency translation gains (losses) on
foreign subsidiaries |
|
60.6 |
|
|
(18.1 |
) |
Losses on hedge of net investment in Canadian subsidiaries |
|
(2.4 |
) |
|
(24.9 |
) |
Gains (losses) on hedge of net investment in European
operations |
|
(14.3 |
) |
|
18.2 |
|
Share of other comprehensive income (loss) of associates, excluding
net gains (losses) on defined benefit plans |
|
2.2 |
|
|
(47.0 |
) |
Other |
|
(3.3 |
) |
|
— |
|
|
|
42.8 |
|
|
(71.8 |
) |
Net unrealized foreign currency translation gains on associates
reclassified to net earnings |
|
(4.8 |
) |
|
— |
|
|
|
38.0 |
|
|
(71.8 |
) |
Items that will not be reclassified to net
earnings |
|
|
|
|
Net gains (losses) on defined benefit plans |
|
(10.3 |
) |
|
50.1 |
|
Share of net gains on defined benefit plans of associates |
|
0.3 |
|
|
5.8 |
|
|
|
(10.0 |
) |
|
55.9 |
|
|
|
|
|
|
Other comprehensive
income (loss), net of income taxes |
|
28.0 |
|
|
(15.9 |
) |
Comprehensive
income |
|
1,432.0 |
|
|
682.9 |
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
Shareholders of Fairfax |
|
1,264.9 |
|
|
600.7 |
|
Non-controlling interests |
|
167.1 |
|
|
82.2 |
|
|
|
1,432.0 |
|
|
682.9 |
|
|
|
|
|
|
|
|
(1) Restated for the transition to IFRS 17.
SEGMENTED INFORMATION (US$ millions)
Third party gross premiums written, net premiums
written and combined ratios, on an undiscounted basis, for the
property and casualty insurance and reinsurance operations
(excluding Life insurance and Run-off) in the first quarters ended
March 31, 2023 and 2022 were as follows:
Gross Premiums Written
|
|
First quarter |
% changeyear-over-year |
|
|
2023 |
|
|
2022 |
|
|
Northbridge |
|
506.3 |
|
|
474.7 |
|
|
6.7 |
% |
Crum & Forster |
|
1,155.6 |
|
|
1,036.6 |
|
|
11.5 |
% |
Zenith National |
|
257.3 |
|
|
259.0 |
|
|
(0.7 |
)% |
North
American Insurers |
|
1,919.2 |
|
|
1,770.3 |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
Allied World |
|
1,883.6 |
|
|
1,751.8 |
|
|
7.5 |
% |
Odyssey Group |
|
1,508.8 |
|
|
1,417.1 |
|
|
6.5 |
% |
Brit(1) |
|
895.1 |
|
|
885.4 |
|
|
1.1 |
% |
Global
Insurers and Reinsurers |
|
4,287.5 |
|
|
4,054.3 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
International Insurers and Reinsurers |
|
886.3 |
|
|
791.2 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
Property
and casualty insurance and reinsurance |
|
7,093.0 |
|
|
6,615.8 |
|
|
7.2 |
% |
Net Premiums Written
|
|
First quarter |
% changeyear-over-year |
|
|
2023 |
|
|
2022 |
|
|
Northbridge |
|
443.1 |
|
|
431.1 |
|
|
2.8 |
% |
Crum & Forster |
|
855.3 |
|
|
833.3 |
|
|
2.6 |
% |
Zenith National |
|
259.8 |
|
|
257.5 |
|
|
0.9 |
% |
North American
Insurers |
|
1,558.2 |
|
|
1,521.9 |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
Allied World |
|
1,460.8 |
|
|
1,334.3 |
|
|
9.5 |
% |
Odyssey Group |
|
1,409.6 |
|
|
1,320.0 |
|
|
6.8 |
% |
Brit(1) |
|
644.0 |
|
|
630.2 |
|
|
2.2 |
% |
Global Insurers and
Reinsurers |
|
3,514.4 |
|
|
3,284.5 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
International Insurers
and Reinsurers |
|
546.8 |
|
|
490.9 |
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
Property and casualty
insurance and reinsurance |
|
5,619.4 |
|
|
5,297.3 |
|
|
6.1 |
% |
Combined Ratios
|
|
First quarter |
|
|
2023 |
|
|
2022 |
|
Northbridge |
|
91.1 |
% |
|
87.3 |
% |
Crum & Forster |
|
94.7 |
% |
|
94.8 |
% |
Zenith National |
|
99.3 |
% |
|
95.4 |
% |
North American
Insurers |
|
94.1 |
% |
|
92.5 |
% |
|
|
|
|
|
Allied World |
|
91.7 |
% |
|
92.1 |
% |
Odyssey Group |
|
96.4 |
% |
|
93.7 |
% |
Brit(1) |
|
90.8 |
% |
|
91.8 |
% |
Global Insurers and
Reinsurers |
|
93.5 |
% |
|
92.8 |
% |
|
|
|
|
|
International Insurers
and Reinsurers |
|
96.4 |
% |
|
97.5 |
% |
|
|
|
|
|
Property and casualty
insurance and reinsurance |
|
94.0 |
% |
|
93.1 |
% |
|
|
|
|
|
|
|
(1) Excluding Ki Insurance,
gross premiums written decreased by 4.8% and net premiums written
decreased by 2.2% in the first quarter of 2023. Excluding Ki
Insurance, the combined ratios were 90.5% and 92.2% in the first
quarter of 2023 and 2022.
Certain statements contained herein may
constitute forward-looking statements and are made pursuant to the
“safe harbour” provisions of the United States Private Securities
Litigation Reform Act of 1995 and any applicable Canadian
securities regulations. Such forward-looking statements are subject
to known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of
Fairfax to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: a reduction in net earnings if our loss reserves are
insufficient; underwriting losses on the risks we insure that are
higher or lower than expected; the occurrence of catastrophic
events with a frequency or severity exceeding our estimates;
unfavourable changes in market variables, including interest rates,
foreign exchange rates, equity prices and credit spreads, which
could negatively affect our investment portfolio; the cycles of the
insurance market and general economic conditions, which can
substantially influence our and our competitors' premium rates and
capacity to write new business; insufficient reserves for asbestos,
environmental and other latent claims; exposure to credit risk in
the event our reinsurers fail to make payments to us under our
reinsurance arrangements; exposure to credit risk in the event our
insureds, insurance producers or reinsurance intermediaries fail to
remit premiums that are owed to us or failure by our insureds to
reimburse us for deductibles that are paid by us on their behalf;
our inability to maintain our long term debt ratings, the inability
of our subsidiaries to maintain financial or claims paying ability
ratings and the impact of a downgrade of such ratings on derivative
transactions that we or our subsidiaries have entered into; risks
associated with implementing our business strategies; the timing of
claims payments being sooner or the receipt of reinsurance
recoverables being later than anticipated by us; risks associated
with any use we may make of derivative instruments; the failure of
any hedging methods we may employ to achieve their desired risk
management objective; a decrease in the level of demand for
insurance or reinsurance products, or increased competition in the
insurance industry; the impact of emerging claim and coverage
issues or the failure of any of the loss limitation methods we
employ; our inability to access cash of our subsidiaries; our
inability to obtain required levels of capital on favourable terms,
if at all; the loss of key employees; our inability to obtain
reinsurance coverage in sufficient amounts, at reasonable prices or
on terms that adequately protect us; the passage of legislation
subjecting our businesses to additional adverse requirements,
supervision or regulation, including additional tax regulation, in
the United States, Canada or other jurisdictions in which we
operate; risks associated with government investigations of, and
litigation and negative publicity related to, insurance industry
practice or any other conduct; risks associated with political and
other developments in foreign jurisdictions in which we operate;
risks associated with legal or regulatory proceedings or
significant litigation; failures or security breaches of our
computer and data processing systems; the influence exercisable by
our significant shareholder; adverse fluctuations in foreign
currency exchange rates; our dependence on independent brokers over
whom we exercise little control; risks associated with IFRS 17;
impairment of the carrying value of our goodwill, indefinite-lived
intangible assets or investments in associates; our failure to
realize deferred income tax assets; technological or other change
which adversely impacts demand, or the premiums payable, for the
insurance coverages we offer; disruptions of our information
technology systems; assessments and shared market mechanisms which
may adversely affect our insurance subsidiaries; and risks
associated with the global pandemic caused by COVID-19 and the
conflict in Ukraine. Additional risks and uncertainties are
described in our most recently issued Annual Report which is
available at www.fairfax.ca and in our Base Shelf Prospectus (under
“Risk Factors”) filed with the securities regulatory authorities in
Canada, which is available on SEDAR at www.sedar.com. Fairfax
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
securities law.
Grafico Azioni Fairfax Financial (TSX:FFH.U)
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Da Apr 2024 a Mag 2024
Grafico Azioni Fairfax Financial (TSX:FFH.U)
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Da Mag 2023 a Mag 2024