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Earnings roundup: Fairfax sees Q4'17 net earnings increase YOY

With earnings season in gear, S&P Global Market Intelligence presents a snapshot of recently reported financial results for companies in the financial services space.

Life and health

Industrial Alliance Insurance and Financial Services Inc. reported fourth-quarter 2017 net income attributable to shareholders of C$132.8 million, or C$1.24 per share, compared with C$155 million, or C$1.48 per share, in the year-ago period.

The S&P Capital IQ consensus GAAP EPS estimate for the period was C$1.33.

Core EPS was C$1.27 in the fourth quarter of 2017, compared with C$1.14 in the prior-year quarter.

The company gave full-year 2018 EPS guidance in the range of C$5.20 to C$5.60.

The S&P Capital IQ consensus GAAP EPS estimate for the year is C$5.41.

Mortgage guaranty

NMI Holdings Inc. reported adjusted net income of $14.0 million, or 22 cents per share, for the fourth quarter of 2017, compared with $2.3 million, or 4 cents per share, in the prior-year quarter.

The S&P Capital IQ consensus normalized EPS estimate for the period was 20 cents.

The company posted a fourth-quarter 2017 GAAP net loss of $1.8 million, or a loss of 3 cents per share, compared with net income of $59.7 million, or 98 cents per share, in the fourth quarter of 2016.

Net loss and net loss per share were adjusted to reflect a one-time noncash expense of $13.6 million primarily related to the remeasurement of the company's net deferred tax asset as a result of tax reform, and a pretax noncash expense of $3.4 million related to the change in fair value of the company's warrant liability as a result of the increase in its stock price.

Property and casualty

Fairfax Financial Holdings Ltd. posted fourth-quarter 2017 net earnings attributable to shareholders of $869.5 million, or $30.06 per share, compared with a net loss attributable to shareholders of $701.5 million, or a loss of $30.77 per share, in the prior-year quarter.

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Navigators Group Inc. reported after-tax net operating earnings for the 2017 fourth quarter at $24.5 million, or 81 cents per share, up from $17.7 million, or 58 cents per share, in the year-ago period.

The company had fourth-quarter 2017 after-tax net income of $26.9 million, or 89 cents per share, compared with $21.6 million, or 71 cents per share, in the prior-year quarter.

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Baldwin & Lyons Inc. reported fourth-quarter 2017 net income of $16.5 million, or $1.10 per share, compared with $4.9 million, or 32 cents per share, in the year-ago quarter.

Net income during the fourth quarter of 2017 included an estimated tax benefit from reduced corporate tax rates of $9.6 million, or 64 cents per share.

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Echelon Financial Holdings Inc. reported fourth-quarter 2017 net operating income on continued operations of $6.3 million, or 51 cents per share, compared with $4.9 million, or 40 cents per share, in the prior-year period.

Net loss for the quarter was $4.8 million, or a loss of 42 cents per share, versus net income of $2.6 million, or 22 cents per share, in the year-ago quarter.