Fairfax Financial Holdings reported an increase in its quarterly earnings, boosted by an improvement at its insurance and reinsurance business and increased interest and dividend income.

The insurance company, which keeps its books in U.S. dollars, said it earned $562.4 million or $30.88 per diluted share in its most recent quarter, compared with a profit of $467.6 million or $25.27 per diluted share a year ago.

Revenue in the quarter totaled $2.21 billion, up from $2.16 billion in the same quarter last year.

“Our third quarter in 2009 was a key milestone in the history of Fairfax,” chairman and chief executive Prem Watsa said in a statement.

“Besides excellent results, we have now privatized OdysseyRe and we financed it by issuing $1 billion of common stock.”

Fairfax acquired the shares of Odyssey Re Holdings Corp. that it did not already own in a deal worth about $960 million earlier this year.

In doing so, the company said there would be no changes in Odyssey Re's strategic or operating philosophy under the deal.

Fairfax is a financial services holding company with subsidiaries in property and casualty insurance, reinsurance and investment management.