Fairfax Financial (FFH) Q1 2026 earnings summary

Executive summary

• Operating income from insurance and reinsurance companies rose to $1,213.4 million (CAD 1.2 billion), up from $685.5 million (CAD 686 million) year-over-year, driven by better underwriting, higher profit from associates, and increased interest/dividend income.

• Net earnings for Q1 2026 were $695.7 million (CAD 696 million); book value per share increased 0.5% from year-end 2025, adjusted for dividend.

• Significant transactions expected in Q2: sale of 23.1% of Poseidon for ~$1.9 billion (pre-tax gain ~$837 million) and Eurolife Life Operations for ~$935 million (pre-tax gain ~$350 million).

• Share buyback of 375,000 shares for $631 million completed in the quarter.

Financial highlights

• Underwriting profit for property and casualty insurance and reinsurance surged to $381.6 million (CAD 382 million), with the combined ratio improving to 94.1% from 98.5%, mainly due to lower catastrophe losses.

• Gross premiums written increased 4.1% year-over-year to $8.7 billion (CAD 8.7 billion), led by growth in International and Global segments.

• Net losses on investments were $385.9 million (CAD 386 million), mainly mark-to-market losses on bonds, compared to net gains of $1.1 billion in Q1 2025.

• Interest and dividend income increased to $662.1 million, with $561.2 million from property and casualty portfolios; profits of associates rose to $371.5 million.

Outlook and guidance

• International operations expected to offer strong long-term growth potential due to skilled management and robust local economies.

• Combined ratio for international operations anticipated to improve, supporting overall underwriting profit outlook.

• Two major transactions expected to close in Q2 2026: sale of Poseidon stake and Eurolife Life Operations.