Canada-based insurer/reinsurer Fairfax Financial Holdings ended the first nine months of the year with net income of $777.4m, a decline of 31% that was largely attributable to a 48% drop in investment income and realized gains to $974.8m. The group's operating companies swung to an underwriting gain of $34m from a prior-year loss of $232.5m,  as an 11% decrease in claims losses to $2.35bn offset a 2.9% drop in net earned premiums to $3.31bn. The combined ratio improved to 99% from 106.8%. The rebound in underwriting income was led by Fairfax's Connecticut-based reinsurance unit Odyssey Re, which swung to operating income of $48m from a loss of $56m, as its combined ratio improved to 96.7% from 103.6%. US primary insurance unit Crum & Foster saw its underwriting loss narrow to $18.7m from the prior-year $167.7m, as its combined ratio improved to 103.2% from 121.8%. Underwriting losses at Canadian insurance unit Northbridge grew to $24.9m from $15.3m, as the combined ratio rose to 103.5% from 101.8%. For Q3, Fairfax saw net earnings rise 20% to $562.4m, reflecting a swing to $1.6m in underwriting income from a year-earlier loss of $170.3m, which offset a 7.7% drop in net investment gains to $797.8m. Chairman and chief executive Prem Watsa noted that Fairfax's book value per share stood at $371.84 at end-Q3, up 36% over the nine months.

Bermudian insurer/reinsurer Endurance Specialty Holdings has closed the first nine months of the year with net income of $369.7m, more than five times than the year-earlier $70.1m, owing to improved underwriting and investment results. The group's underwriting income reached $166.4m, more than quadrupling the prior-year $42m, as the lack of hurricane losses helped lower claims losses by 23% to $702.6m and offset a 7.2% drop in net earned premiums to $1.24bn. Endurance's investment income jumped 67% to $224.9m, while net impairment losses fell 53% to $19.3m. For Q3, net income swung to $150m from a prior-year net loss of $103.3m, as the lack of cat losses led to a 52% drop in claims losses to $211.7m. "Although market conditions remain competitive, we are committed to maintaining our underwriting discipline", said chairman and chief executive Kenneth LeStrange, adding that the group is "well positioned strategically and financially to capitalize on attractive underwriting opportunities".

... swung to nine-month net income of $358.8m from a prior-year loss of $97.8m owing to improved underwriting and investment results. The group posted $171m in unrealized investment gains against year-earlier losses of $109.2m. Underwriting results swung to nine-month income of $137.5m from a loss of $1.8m, as earned premiums grew by 6.3% to $418.4m and claims losses fell 48% to $172.4m owing to the absence of significant storm losses. The year-to-date combined ratio improved to 67.1% from 100.5%. For Q3, Montpelier swung to net income of $147.2m from a loss of $142m.

Australia-based insurer QBE's head of European operations Steven Burns has predicted a 4% rise in rates for full-year 2009, with the strongest increases being seen in US cat-exposed classes, mainly energy, up 30%, and reinsurance up 10%. He noted in a trading update for the QBE group that a downturn in economic activity and a fall in asset values had hit 2009 gross written premiums, and had also caused some minor additional claims inflation. Reinsurance rates were expected to be flat in 2010, if there are not major cat losses, while the lagging casualty and property rates were predicted to rise by H2 2010. Mr Burns observed that underwriting conditions were likely to "remain challenging" in most classes of business until at least the second half of next year. The company was targeting gross written premiums of £2.8bn (US$4.56bn) in 2010, although this is at a projected exchange rate of $1.55. QBE's London operation does 30% of its business in US dollars.