Feb 16 Canada's Fairfax Financial Holdings Ltd
on Thursday reported a 27.5 percent slump in revenue,
weighed down by losses from the company cutting back on equity
hedges following the U.S. presidential election.
Net loss attributable to shareholders of Fairfax was $701.5
million, or $30.77 per share, in the fourth quarter ended Dec.
31, compared with a profit of $133.1 million, or $4.10 per
share, a year earlier.
Analysts on average had expected a loss of $22.04 per share,
according to Thomson Reuters I/B/E/S.
The company, headed by high-profile investor Prem Watsa,
realized losses on equity hedges and short equity exposures of
$2.68 billion in the quarter.
This widened net losses on investments to $1.07 billion.
Total revenue fell to $1.77 billion from $2.44 billion.
Analysts had expected revenue of $2.67 billion.
Fairfax said in November, that after considering the effect
of the U.S. election and the potential for changes that might
dramatically impact the U.S. economy and U.S. equity markets, it
now deemed it prudent to cut back its hedging.
The Toronto-based financial services holding company said
net premiums rose marginally to $1.95 billion in the quarter,
from $1.91 billion a year earlier.
Up to Wednesday's close of C$625, the company's shares had
fallen 18 percent in the past 12 months on the Toronto Stock
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj