Fairfax Financial Holdings Ltd. on Friday reported higher profit for the first quarter ended March 31. The insurer earned $154.6 million, or $10.60 a share, up from $11.3 million, or 46¢ a share, a year ago.
Revenues rose to $2.03 billion from $1.74 billion as net premiums written increased by 18.6% to $1.61 billion from the previous year and gains on investments totalled $228.2 million.
In a statement, Fairfax said its insurance and reinsurance operations showed continued improvement, achieving a combined ratio of 98.1%.
The company also said on Friday that reinsurers led by a division of U.S. insurer Chubb Corp. had agreed to provide up to US$200 million of the US$300 million adverse development cover relating to the reserves of Fairfax’s TIG unit.
Fairfax reported in December that it would restructure its U.S.-based TIG unit, resulting in a charge of $28 million.