Despite huge catastrophe losses, Canadian insurance investor Fairfax says it has recorded the best result in its 32-year history, with profit at $US1.74 billion ($2.23 billion) last year.

The sum improves on a net loss of $US512.5 million ($656.58 million) in 2016.

The strong results are attributed to a reduction in its shareholding in Indian insurer ICICI Lombard that netted $US930 million ($1.19 billion) and the sale of its 97.7% interest in First Capital, netting about $US1 billion ($1.28 billion) after tax.

The combined operating ratio for insurance and reinsurance operations was 106.6% on a consolidated basis, compared with 92.5% in 2016. It recorded an underwriting loss of $US641.5 million ($822.53 million), compared with underwriting profit of $US575.9 million ($738.53 million) the previous year.

Hurricanes Harvey, Irma and Maria, Californian wildfires and other catastrophes cost the Toronto-based company $US1.33 billion ($1.70 billion) in losses, compared with just $US352.7 million ($452.23 million) in 2016.

Gross written premium was $US12.2 billion ($15.55 billion), up from $US9.53 billion ($12.15 billion). Investment income was up to $US1.46 billion ($1.86 billion) from $US1.2 billion ($1.53 billion).