Fairfax Financial Holdings Ltd. is reporting slightly higher profit for the second quarter ended June 30.

The financial services and insurance company earned $47 million, or $2.95 a share, in the quarter, up from $46 million, or $3.27 per share, in the year-before quarter.

The company said the slight increase was the result of there being $41.7 million of income tax expense in 2002 as compared to $14.4 million of income tax recovery in 2001, and a $10.4 million deduction in respect of the OdysseyRe non-controlling interest in 2002 as compared to no similar deduction in 2001 when OdysseyRe was wholly owned.

Revenues rose to $1.9 billion from $1.5 billion.