FFH Q2 Conference Call QNA

[nwoodman]

About 8-9 mins in length, Prem discusses

• Soft market - never know when it will end
• CPI linked derivative contracts - provides protection, contracts with strong counterparties who will be there in 10 years time
• TIG acquisition - runoff duration 3-5 years, they have looked at many runoffs and have finally found one that meets their crietera, he sounds pretty excited

Cheers
nwoodman

[omagh]

Transcript is here: http://seekingalpha.com/article/217810-fairfax-financial-holdings-ltd-q2-2010-earnings-call-transcript
click tabs in page for opening remarks and Q&A

-O

About 8-9 mins in length, Prem discusses

• Soft market - never know when it will end
• CPI linked derivative contracts - provides protection, contracts with strong counterparties who will be there in 10 years time
• TIG acquisition - runoff duration 3-5 years, they have looked at many runoffs and have finally found one that meets their crietera, he sounds pretty excited

Cheers
nwoodman

[Myth465]

Thanks so much for the MP3, now I am exited. I hate having to call in.

[FFHfan]

About 8-9 mins in length, Prem discusses

• Soft market - never know when it will end
• CPI linked derivative contracts - provides protection, contracts with strong counterparties who will be there in 10 years time
• TIG acquisition - runoff duration 3-5 years, they have looked at many runoffs and have finally found one that meets their crietera, he sounds pretty excited

Cheers
nwoodman

Thanks so much for the MP3, now I am exited. I hate having to call in.

Thank you nwoodman. This is great!!!!!!!!!!

[gaf63]

Couple of things from conf. call,   interest was the lowest since I've owned FFH, 2 questions only

The one from Cormark was about lowering costs considering the decline in premiums, Prem's answer was that the market can turn and we have to be ready, so we can expect higher cr's from Northbridge and the US cos. til the market hardens.  Also he said that most companies CR is above 100 on the accident yr. and with low interest rates  prices will have to raised at some point soon

FFH is now hedged against inflation, deflation and a fall in the market, with all these hedges I would think that earnings will be very volatile from here on out(as they were when the cd's were  in place)


Also, there was a 36.4 mil loss from the Deepwater spill.  Thought they  got out of marine after Katrina

[Zorrofan]

thanks for posting this - can anyone clarify the comment from the Q & A section about buying a runoff portfolio? I never heard about this??

thanks
Zorro

[Rabbitisrich]

thanks for posting this - can anyone clarify the comment from the Q & A section about buying a runoff portfolio? I never heard about this??

thanks
Zorro

They made a purchase through TIG: http://www.marketwatch.com/story/fairfax-financial-holdings-limited-second-quarter-financial-results-2010-07-29?reflink=MW_news_stmp

Search for "On June 11, 2010, TIG Insurance Company ("TIG"),".

[Zorrofan]

thanks

Zorro