Fairfax, OdysseyRe Estimate Hurricane Losses

September 30, 2004

Toronto-based Fairfax Financial Holdings Limited announced that its initial estimate of aggregate potential net losses relating to Hurricanes Frances, Ivan and Jeanne is in the range of US$85 million to US$95 million after tax and minority interests.

All of the hurricane losses are recorded within Fairfax’s insurance and reinsurance companies, primarily OdysseyRe and Crum & Forster. “These losses have not adversely affected the capital adequacy of any of these companies and will not require the provision of any funds by the holding company,” said the bulletin.

It added that the estimates were “based on a preliminary review and consultation with its insurance and reinsurance companies, including OdysseyRe, Crum & Forster and Northbridge, ” and that it is “not possible to make a calculation of its financial exposure to claims relating to these hurricanes with a high degree of certainty” at this time.

In a separate bulletin Odyssey Re Holdings Corp. announced that its initial estimates of losses from Frances, Ivan and Jeanne are expected to be within the following ranges on a net after-tax basis:
— Hurricane Frances, $10 to $13 million;
— Hurricane Ivan, $13 to $18 million;
— Hurricane Jeanne, $12 to $15 million.
“These estimates are based on OdysseyRe’s internal catastrophe models, consultation with client companies and current industry insured loss estimates,” said the bulletin

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