Fairfax Financial (FFH) investor relations material

Executive summary

• Underwriting income reached $427 million in Q2 2025, with strong results across major insurance and reinsurance segments and disciplined underwriting in a softening market, especially in North America.

• Net earnings for Q2 2026 were $1,392.7 million ($63.38 per diluted share), slightly down from $1,436.7 million ($61.61 per diluted share) in Q2 2025.

• Book value per basic share rose to $1,304.39 at June 30, 2026, up 4.8% from December 31, 2025, adjusted for dividends.

• International operations grew 8% and now represent about 20% of total business, with diversification helping offset property market pressures.

• Significant transactions included the sale of a portion of Poseidon, privatization of Kennedy Wilson, and pending acquisitions in India, Cyprus, and the U.S.

Financial highlights

• IFRS 17 combined ratio was 81.9% in Q2 2025, down from 84.1% a year ago.

• Underwriting profit rose to $458.6 million from $426.9 million year-over-year; combined ratio improved to 93.1% from 93.3%.

• Net gains on investments totaled $768.9 million, mainly from equity exposures, including a realized gain on the sale of 23.1% of Poseidon.

• Operating income from non-insurance companies was $193.6 million, up from $126.0 million.

• Book value per basic share increased 4.8% in the first six months of 2026, reaching $1,304.39.

Outlook and guidance

• Management remains focused on profitability over top-line growth, with a long-term approach to float growth and disciplined underwriting.

• The company expects continued growth in international and global insurance segments despite competitive pricing.

• Associate income can fluctuate quarter-to-quarter, but management is confident in achieving or exceeding $1 billion annual income from associates and consolidated investments.