Toronto-based Fairfax Financial Holdings Ltd. (FFH.TO) says it saw a more than $600-million jump in net earnings after a nearly $597-million non-cash gain in its first quarter.

The investment and insurance-focused company says its net earnings totalled $684.3 million, or $23.60 per diluted share, in the first quarter of its 2018 financial year compared to $82.6 million, or $3.03 per share, in the same quarter the previous year.

Fairfax says it added a $596.8 million non-cash gain related to a change in accounting for Quess Corp.

CEO Prem Watsa says the gain was related to a change in how its Thomas Cook India unit accounts for its ownership interest in Quess, switching from a subsidiary to an associate company.

That meant that it was deconsolidated and Fairfax's ownership interest was recorded at fair value after non-controlling interests.

Watsa says Fairfax's insurance companies continued to have excellent underwriting performance, with a first-quarter underwriting profit of $109.1 million compared to $107.2 million in the first quarter of 2017.