Fairfax Financial (FFH) Q2 2026 earnings summary

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 further diversification from significant international books in larger companies.

• Property and casualty insurance and reinsurance operations delivered adjusted operating income of $1,105.5 million, with a consolidated combined ratio of 93.1% and underwriting profit of $458.6 million.

Financial highlights

• Net premiums written in property and casualty increased 2.4% to $7,344.1 million, driven by new business and growth in international segments.

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

• Interest and dividends increased to $737.2 million, with $652.4 million from property and casualty portfolios.

• Non-insurance companies reported operating income of $194 million in Q2 2026, up from $126 million in Q2 2025, driven by improved results at Fairfax India and other segments.

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

Outlook and guidance

• Management remains focused on profitability over top-line growth, emphasizing portfolio optimization and higher-margin business amid softening property markets.

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

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

• Several acquisitions and divestitures are pending, including the sale of Eurolife Life Operations and acquisitions of Andrew Peller Limited and Sleep Number assets.