Fairfax Financial Holdings Ltd. took advantage of some “substantial” investment gains, while shrugging off the adverse impact of the rising Canadian dollar, to post a five-fold jump in earnings for the second quarter of this year.

The property, casualty and life insurer saw its earnings for the three months to June 30 jump to $246.2 million ($17.15 a share) from $47 million ($2.95) a year ago. The jump reflected “continuing success in [our] insurance and reinsurance operations and substantial realized gains in [our] investment portfolio, notwithstanding the adverse impact on earnings of the 11.9% decrease during the quarter in the average value of the U.S. dollar against the Canadian dollar,” the Toronto-based company said.

Fairfax said net premiums written increased by 21.9% (29.8% excluding the effect of changes in foreign exchange rates) over the previous year, and realized gains on investments totalled $578.1 million. At June 30, 2003, the pre-tax unrealized gain on portfolio investments was $393.8 million vs $207.9 million at Dec. 31.

Two Fairfax subsidiaries also posted second quarter results.

Northbridge Financial Corp. said net earnings increased to $57.5 million ($1.16 per share) vs $16.4 million (36¢) for the same period in 2002, while revenues jumped almost 69% to $323.4 million. The Toronto-based property and casualty insurer said its pre-tax underwriting profit was $15.2 million vs $7.1 million a year earlier.

Claims adjuster Lindsey Morden Group Inc. reported a net loss of $2.5 million vs a loss for the year-earlier period of $1.7 million. Operating earnings fell to $1.1 million from $4.4 million. Revenue for the period increased 3.5% to $113.9 million. The Toronto-based company said all operating segments reported an increase in revenue over second quarter 2002 except for the Canadian operations.

Insurance broker Hub International Ltd. also reported its second quarter earnings.

Net earnings declined to US$10.1 million from US$10.7 million, while diluted earnings per share declined to US$0.31 from US$0.41.

Revenue increased 29% to US$74.1 million in the second quarter ended June 30, 2003, due to acquisitions and an organic growth rate of 13%.