Fairfax gross written premiums up 26 percent in 2011

Fairfax Financial has reported an increase in gross written premiums of 25.7 percent, up from $5.36 billion in 2010 to $6.74 billion in 2011.

Net written premiums also rose by 26 percent, from $4.44 billion in 2010, to $5.6 billion in 2011.

However, net income fell by 86 percent to $45.1 million in 2011, from $335.8 million in 2010.

“Notwithstanding catastrophe losses of $1 billion in one of the worst catastrophe years on record, our investment results allowed Fairfax to basically break even in 2011 with our book value being essentially unchanged,” says Prem Watsa, chairman and chief executive officer of Fairfax.

“We are maintaining our equity hedges as we remain very concerned about the economic outlook over the next few years. We continue to be soundly financed with year-end cash and marketable securities at the holding company of about $1 billion.”