FFH 2nd Q earnings

[gaf63]

http://www.marketwire.com/press-release/fairfax-financial-holdings-limited-second-quarter-financial-results-tsx-ffh-1543761.htm

[Parsad]

Holding pattern...wait for opportunity...reap dividends and interest income while waiting for insurance market to harden.  Patience is a virtue!  Cheers!

[Uccmal]

Holding pattern...wait for opportunity...reap dividends and interest income while waiting for insurance market to harden.  Patience is a virtue!  Cheers!

 

That summarizes it nicely.  Maybe the price will go down a little.

[naboo]

Combine Ratio 100.6% including all CAT is not a bad result. 

 

By the way, i didn't see the ICO transaction was mentioned in 2Q report.

[Uccmal]

They dont break out individual investments unless it becomes part of the consolidated results.

[Nnejad]

104 million in expense this quarter for buying back the debt

[Sportgamma]

I glanced through the 2Q report and I wanted to check if my understanding of it is correct.

 

So my question is this:

Is the reason why Fairfax announces net earnings of 83.3m but at the same time records a decrease in book value to $358, that the net earnings do not take into account Other comprehensive income, such as "Change in net unrealized gains and losses on available for sale securities" and "Change in unrealized foreign currency translation gains (losses) on foreign operations"?

(It is a bit confusing to me because in the press release the earnings reported are for the quarter but change in book value is in the first half)

 

Two more questions:

- Are the amounts reported are in US$?

- Is the main impact of the transition from Canadian GAAP to IFRS that changes due to other comprehensive income are reported as changes in equity in IFRS?

- The change from Canadian GAAP to IFRS occured on 1.1.2010, so comparision between 2010 and 2011 is on a like-for-like basis?

 

Also, in their reporting they start of with a statement of net earnings and follow up with a statement of comprehensive income. I would have thought it would be the other way around.

[Sportgamma]

Found it:

 

"The decrease in common shareholders’ equity in the first six months of 2011 was primarily as a result of the net loss attributable to  shareholders of Fairfax ($157.3) and the company’s payments of dividends on its common and preferred shares ($232.4), partially offset by the effect of increased accumulated other comprehensive income (an increase of $25.4 in the first six months of 2011, primarily reflecting a net increase in foreign currency transaction). Common shareholders’ equity at June 30, 2011 decreased to $7,310.2 or $358.60 per basic share from $376.33 per basic share at December 31, 2010, representing a decrease per basic share in the first six months of 2011 of 4.7% (without adjustment for the $10.00 per common share dividend paid in the first quarter of 2011, or 2.0% adjusted to include that dividend). The adoption of IFRS reduced book value per basic share by $3.13 from book value per basic share of $379.46 previously reported under Canadian GAAPat December 31, 2010 to $376.33 under IFRS."

[biaggio]

Fairfax Financial Holdings Limited's CEO Discusses Q2 2011 Results - Earnings Call Transcript

 

http://seekingalpha.com/article/283126-fairfax-financial-holdings-limited-s-ceo-discusses-q2-2011-results-earnings-call-transcript

[Alekbaylee]

With all the incertainty surrounding the NA and Europe future, I'm surprised FFH is not fetching more than roughly book value, specially when one consider their hedged portfolio (CDS, deflation bet, etc.).

 

Any thoughts?