Fairfax Financial

Fairfax completed the sale of a $900mn stake in Odyssey Group to CPPIB and Omers earlier this month.

A total of 2 million shares will be bought back by Fairfax at a price of $500 per share, the top end of the forecast range.

The arrangement allows Brit to reduce exposure to US casualty claims inflation.

Fairfax has entered into an agreement with the Canada Pension Plan Investment Board (CPPIB) and the Ontario Municipal Employees Retirement System (Omers), where each of them will acquire a 4.995% stake in Odyssey Group for an aggregate cash consideration of $900mn.

Hurricane Ida hit Fairfax’s Brit operations, but the Odyssey business took a higher proportion of Fairfax’s overall losses.

The conglomerate posted $604.6mn in Hurricane Ida and European floods losses.

The Inside P&C Select Index outperformed the S&P 500 (5.7% to 2.9%) in August, despite Hurricane Ida making landfall.

The drivers that led to the consolidation in the reinsurance industry might not replicate for a while.

The ransomware surge is likely to lead to changes in the product, a shake-up in market share and challenges for MGAs.

CEO Prem Watsa said the company expects to acquire the remaining 6% of the company and delist it from the Singapore Stock Exchange.

Net diluted earnings per share jumped to $43.25 in Q2 2021, up from $15.26 last year.

HudsonPro will be led by senior VP Trevor Howard.