Fairfax 4th Q Results

[Parsad]

It's out.  Cheers!

http://finance.yahoo.com/news/Fairfax-Financial-Holdings-iw-477178339.html?x=0

[Parsad]

Not very good due to mark to market losses on the hedges and catastrophe losses.  A breakeven year.  Hedges still in place as Prem thinks things will be bad in the next few years.  Nice to see Northbridge coming back to form, and Asia is still a rock-star!  Cheers!

[racemize]

This is likely to sting in the morning!

[naboo]

Definitely not good

Net investment gains of $691.2 million (net investment losses of $914.9 million in the fourth quarter)

[zarley]

I guess I've managed to forget the last 6 months, but what catastrophes were driving the 4th qtr combined ratios?  Reinsurance was brutal.

Edit--

Thai flooding for one.  Ironic that it slipped my mind since Western Digital (WDC) is one of my holdings.

[naboo]

And you won't be too happy to see these numbers:



Combined ratios of the insurance and
 reinsurance operations in the
 fourth quarters and years ended
 December 31, 2011 and 2010 were:
                                                             Year ended
                                                             Fourth quarter       December 31,
                                                             ------------------- -------------------
                                                             2011      2010      2011      2010
                                                              --------- --------- --------- ---------
 Insurance   - Canada (Northbridge)     101.9%    111.2%    102.8%    106.9%
                    - U.S. (Crum & Forster
                       and Zenith National)      124.2%    130.1%    114.3%    116.5%
                          - Asia (Fairfax Asia)       89.2%     90.8%     83.2%     89.3%
Reinsurance  - OdysseyRe                    122.7%     85.8%    116.7%     95.0%
Reinsurance and Insurance - Other      155.1%     90.1%    140.9%    107.2%
                                     --------- --------- --------- ---------
Insurance and reinsurance operations  121.0%    102.9%    114.2%    103.5%

Definitely not good

Net investment gains of $691.2 million (net investment losses of $914.9 million in the fourth quarter)

[Uccmal]

Cant say I expected alot.  Guess we know why the dividend wasn't increased, eh?

Alot of cash sitting in the subs.  Explains their ability to buy more companies.  Well see what Prem or Andy say about the Insurance outlook tomorrow. 

Perhaps a buying opportunity?

[zgrendi]

Uh oh ... guess were gonna shoot down to 375 or lower tomorrow.  Bummer.

[racemize]

If we exclude the craziness in the early 2000's, what's the book value multiple range that FFH trades at?  0.8-1.6?

[Santayana]

Uh oh ... guess were gonna shoot down to 375 or lower tomorrow.  Bummer.

Not a bummer if you have cash.