Fairfax Financial Q2 profits drop as first half COVID losses near US$400 million

TORONTO — Fairfax Financial Holdings Ltd. says its net income attributable to shareholders decreased 12 per cent in its latest quarter as COVID-19 losses in the first six months of the year approached US$400 million.

The Toronto-based company says it earned US$434.9 million or US$15.26 per diluted share for the three months ended June 30, down from US$494.3 million or US$17.18 per share in the second quarter of 2019.

Fairfax, which reports in U.S. dollars, says net income including non-controlling interests was $426.3 million, compared with $579.5 million in the year-ago period.

Revenues mainly from insurance premiums were $5.06 billion, down 6.9 per cent from $5.44 billion a year earlier.

The company was expected to report $15.99 per share on $5.3 billion of revenues, according to financial markets data firm Refinitiv.

Total COVID-19 losses in the first half of the year were $392.4 million, mainly due to business interruption of which about 46 per cent was from international business and event cancellation. Incurred but not reported losses comprised about 70 per cent of the total.

This report by The Canadian Press was first published July 31, 2020.

Companies in this story: (TSX:FFH)

The Canadian Press

Return to The Albertan