Fairfax falls 8% on timing-driven Q1 & tougher underwriting backdrop
Fairfax Financial (FFH) shed 8% on the back of its Q1 earnings, which were down materially versus last year driven by some mark-to-market investment losses and a smaller reserve release - with management calling out Q4 as the main period of actuarial reserve review. While the main swing factors in Q1 look temporary, the underwriting environment could have some staying power - with slow-to-no growth in North America being carried by double-digit growth in international, which historically has been a less profitable line of business for the company.
