Fairfax Financial Holdings Ltd. is reporting sharply higher profit for the fourth quarter profit, and a record profit for the year.

The financial services and insurance company earned $76 million, or $6.06 a share, compared with $35.4 million, or $1.81 per share, in the year-before quarter.

Revenues rose to $2.1 billion from $1.7 billion.

For the year, the company made a record $415.7 million, or $28.78 a share, up from a loss of $346 million, or $28.04 a share.

The company said the results for the fourth quarter of 2002 were impacted by reserve strengthening of $314.3 million and restructuring charges of $99.9 million resulting from the company’s decision to merge TIG Insurance Co. with International Insurance Col (IIC) and to discontinue TIG’s program business in Dallas, Texas.

Fairfax said each of the operating companies improved their underwriting profitability significantly during 2002 with each company achieving a combined ratio of less than 100% except for Crum & Forster and TIG’s continuing operations.

Crum & Forster’s combined ratio for 2002 was 103.3% with a combined ratio in the fourth quarter of 101.4%, a continuing improvement from its combined ratio of 102.6% in the third quarter of 2002.

TIG’s continuing operations include cost allocations associated with the discontinued Dallas program business. TIG’s special risk operations unit based in Napa, Calif. will operate going forward predominantly as a managing general underwriter, focusing on excess property and excess casualty insurance.

The health care business of this unit will be written through a subsidiary of OdysseyRe (or reinsured by OdysseyRe) effective January 1, 2003.

Each of the operating companies (including TIG as to its continuing operations) increased net premiums written significantly during 2002, reflecting the favorable insurance market and increased retentions.