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FAIRFAX News Release TSX Stock Symbol : FFH and FFH.U TORONTO , July 29 , 2021 FINANCIAL RESULTS FOR THE SECOND QUARTER ( Note : All dollar amounts in this news release are expressed in U.S. dollars except as otherwise noted . The financial results are derived from financial statements prepared using the recognition and measurement requirements of International Financial Reporting Standards as issued by the International Accounting Standards Board except as otherwise noted , and are unaudited . ) Fairfax Financial Holdings Limited ( TSX : FFH and FFH.U ) announces net earnings of $ 1,201.4 million ( $ 43.25 net earnings per diluted share after payment of preferred share dividends ) in the second quarter of 2021 compared to net earnings of $ 434.9 million ( $ 15.26 net earnings per diluted share after payment of preferred share dividends ) in the second quarter of 2020. Book value per basic share at June 30 , 2021 was $ 540.62 compared to $ 478.33 at December 31 , 2020 ( an increase of 15.2 % adjusted for the $ 10 per common share dividend paid in the first quarter of 2021 ) . " In the second quarter of 2021 , all of our major insurance companies achieved a combined ratio well below 100 % , with Northbridge and Zenith National leading the way at 84.7 % and 92.7 % respectively . Our consolidated combined ratio of 94.3 % in the second quarter of 2021 included catastrophe losses of $ 138.4 million or 3.5 combined ratio points . Core underwriting performance continued to be very strong , with growth in gross premiums written of 27.1 % and operating income increasing to $ 398.3 million , reflecting greatly reduced COVID - 19 losses . Our investments increased significantly with net gains on investments of $ 1,290.2 million , primarily reflecting net gains on long equity exposures and $ 425.0 million on Digit compulsorily convertible preference shares . Mark - to- market movements on our non - insurance investments in associates and consolidated investments which are not reflected in our financial statements also increased in the second quarter of 2021 by approximately $ 338 million . As previously reported , upon closing of the Digit Insurance equity issuance in the third quarter , and upon final approval by the Indian government of its previously announced intention to increase foreign ownership limits , we anticipate recording an additional gain of approximately $ 1.4 billion or $ 46 in book value per basic share . We continue to focus on being soundly financed and ended the quarter with approximately $ 1.5 billion in cash and investments in the holding company , " said Prem Watsa , Chairman and Chief Executive Officer . The table below presents the sources of the company's net earnings in a format which the company has consistently used as it believes it assists in understanding Fairfax : FAIRFAX FINANCIAL HOLDINGS LIMITED 95 Wellington Street West , Suite 800 , Toronto , Ontario , M5J 2N7 Telephone : 416-367-4941 Facsimile : 416-367-4946