Insurance firm Fairfax Financial Holdings Ltd. reported a fourth-quarter loss of reversing a year-ago profit because of losses from hurricanes Katrina, Rita and Wilma.

Net loss for the quarter ended Dec. 31, 2005 was it US$318.1 million, compared with a year-ago profit of US$5.1 million.

Losses from Hurricanes Katrina, Rita and Wilma during the fourth quarter were US$249.5 million.

Quarterly sales were US$1.36 billion, compared with $1.45 billion the year before.

For the year, the company’s loss widened to US$497.9 million or US$30.72 a share, from US$19.8 million. or US$2.16 a share, in 2004.

Revenues for the year came in at US$5.9 billion, up from US$5.8 billion.

Fairfax said its insurance and reinsurance operations continued to generate strong underwriting results prior to giving effect to the hurricane losses.

The combined ratios of Fairfax’s ongoing insurance and reinsurance operations were 112.7% and 107.6% for the fourth quarter and full year of 2005, respectively, and prior to giving effect to the hurricane losses were 92.0% and 93.7%, respectively.

Prem Watsa, chairman and CEO, commented, “During 2005, the insurance industry experienced the largest catastrophe losses in its history, including from Hurricanes Katrina, Rita and Wilma. Our results were significantly affected by these losses, but our financial strength and the capital base of our insurance and reinsurance companies permitted us to absorb them.”