Fairfax Financial (FFH) Q1 2025 earnings summary

Executive summary

• Net earnings for Q1 2025 were $946 million, up from $777 million in Q1 2024, driven by higher net investment gains despite significant catastrophe losses from California wildfires totaling $692 million.

• Book value per share increased to $1,080.38 as of March 31, 2025, up 3.5% from the previous quarter, adjusted for a $15 dividend.

• Insurance and reinsurance operations produced an underwriting profit of $97 million, with a consolidated combined ratio of 98.5%.

Financial highlights

• Operating income from insurance and reinsurance was $686 million, down from $977 million year-over-year due to wildfire losses.

• Net gains on investments exceeded $1 billion, including $779.5 million from equities, $388.4 million from bonds, and a $179 million realized gain from the sale of Sigma.

• Interest and dividend income rose to $607 million, up 2.8% year-over-year.

• Gross premiums written grew 5% year-over-year to $8.4 billion; net premiums written in property and casualty insurance and reinsurance grew 8.4% to $6,774.6 million.

• Favorable reserve development of $219 million benefited the combined ratio by 3.5 percentage points.

Outlook and guidance

• Management remains confident in the long-term growth prospects of international operations, citing strong management and underpenetrated markets.

• Companies are well-positioned to capitalize on market opportunities in 2025, supported by strong underlying margins and conservative reserving.

• Focus remains on strong financing, ending the quarter with $2.1 billion in cash and marketable securities.