UPDATE 3-Fairfax posts Q1 loss on investment woes

Thu Apr 30, 2009 11:10pm BST

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* First-quarter loss $3.55/shr vs EPS $33.78

* Revenue drops to $1.28 billion from $2.37 billion

* Consolidated combined ratio 98.7 pct (Adds analyst reaction; in U.S. dollars unless noted)

TORONTO, April 30 (Reuters) - Fairfax Financial Holdings Ltd (FFH.TO: Quote, Profile, Research) said on Thursday it had a net loss in the first quarter as investments shed value in volatile markets.

The Toronto-based insurance holding company said it had a loss of $60.4 million, or $3.55 a diluted share, in the quarter ended March 31, compared with net earnings of $631.8 million, or $33.78 a share, in the comparable period in 2008.

Revenue fell to $1.28 billion from $2.37 billion.

Analysts had expected earnings per share of $6.71, according to Reuters Estimates.

The company said net losses on investments were $153.0 million in the first quarter, principally due to the inclusion of $213.0 million of impairments recorded on common stock and bond investments. That compared with investment gains of $1.07 billion for the same period a year earlier. Continued...