Fairfax Sees Insurance Market Turning Corner in ’09

Toronto-based Fairfax Financial Holdings Ltd said Friday it expects the insurance market to turn a corner this year and believes its book value will be “up significantly” in five years.

Speaking during a conference call the morning after Fairfax reported a surge in second-quarter profit, Chief Executive Prem Watsa said he sees excellent values in stocks in bonds even though the economy was in a “long and deep” recession.

A decision by Fairfax to bet heavily on a stock market rebound in the second quarter paid off handsomely for the Toronto-based insurance holding company. (Reporting by Andrea Hopkins; writing by Frank McGurty; Editing by Derek Caney)