For the fourth quarter 2002, the financial services and insurance company posted net earnings of Canadian $76 million (U.S.$50 million), or Canadian $6.06 (U.S.$3.96) a share, which represent a net increase of Canadian $40.6 million (U.S.$ 26.56 million) or $4.25 (U.S.$ 2.78) on a per-share basis compared to 2001.

Revenues also gained ground, rising to Canadian $2.1 billion (U.S.$1.37 billion) from Canadian $1.7 billion (U.S.$1.11 billion).

For 2002, Fairfax earned C$415.7 million (U.S.$271.71 million), or C$28.78 (U.S.$18.81) a share, which represents the largest annual profit in its history, the company stated.

Fairfax reported robust earnings for its latest quarter even though it was impacted by reserve strengthening of C$314.3 million (U.S.$200 million) and restructuring charges of C$99.9 million (U.S.$63.6 million).

The charges were the result of the company's decision last December to discontinue its subsidiary TIG Insurance Company's program business in Dallas and merge TIG with International Insurance Company, a business partly owned by Fairfax. The charges were also partly offset by negative goodwill of C$298.5 million (U.S.$195.09 million).

"Fairfax had a record year in 2002. The company earned C$415.7 million after tax or C$28.78 a share, approximately a 12.9-percent return on equity. And our revenues in 2002 were up 30 percent. So we were very satisfied with the overall results of our company," said Fairfax chairman and chief executive officer V. Prem Watsa during today's conference call.

Mr. Watsa also announced that from now on, Fairfax will hold conference calls after each earnings release, which is a departure from the company's famously reclusive manner of operating.

"This is our third conference call in 17 years and the first one with all good news to report to our shareholders. Given the noise in the marketplace in recent months and our concern for our shareholders because of misleading information, we will now have conference calls after each of our earnings releases," Mr. Watsa said.

Mr. Watsa admitted that he is still very much against conference calls because of what he perceives as short-term focus and the general promotional nature of such calls.

"However, I am also equally concerned with investors suffering from misleading information," he said. But the company still will not offer earnings guidance for quarterly or annual results, Mr. Watsa added.

In terms of the combined ratio, each of Fairfax's operating companies improved their underwriting profitability significantly last year, with each company achieving a combined ratio of less than 100 percent except for its subsidiary Crum & Forster and TIG's continuing operations.

"The combined ratio we achieved in 2002 were very gratifying. It's a result of a very hard work. I must say to you this is not a one-year result because of the hard market," Mr. Watsa said.

"In the future, we will do everything we can not to have combined ratios above 100 percent, including shrinking our businesses significantly as we have in the past," he said.

"Fairfax has achieved its 100-percent objective and is focused as never before on maintaining underwriting profitability. Given low interest rates in the United States and Canada, this is an essential requirement now for any property-casualty insurance company," Mr. Watsa said.