Fairfax Financial (FFH) Q3 2025 earnings summary

Executive summary

• Net earnings reached $1.2 billion in Q3 2025, up from $1 billion in Q3 2024, with $3.5 billion for the first nine months of 2025.

• Net earnings for Q3 2025 were $1,151.7 million ($52.04 per diluted share), up from $1,030.8 million ($42.62 per diluted share) in Q3 2024, driven by strong underwriting, higher investment income, and favorable associate results.

• Book value per share increased to $1,204 (or $1,203.65) at September 30, 2025, up 15.1% year-to-date, adjusted for dividends.

• Strong performance across all insurance segments, with favorable reserve development and improved ratings from S&P and AM Best.

• Announced sale of 80% interest in Eurolife's life insurance operations for $940 million and acquisition of 45% of ERB Asfalistiki for $68 million.

Financial highlights

• Net earnings of $1.2 billion in Q3 2025, up from $1 billion in Q3 2024.

• Operating income from non-insurance companies was $211 million, up from $49 million in Q3 2024, driven by acquisitions.

• Net gains on investments were $426 million, mainly from $525 million in equity gains, partially offset by bond and other investment losses.

• Book value per share rose to $1,204, a 15.1% increase year-to-date.

• Common shareholders' equity increased by $2.7 billion to $25.7 billion at September 30, 2025.

Outlook and guidance

• Annual operating income is expected to remain stable at approximately $5 billion over the next 3-4 years.

• The company expects continued focus on property and casualty insurance and reinsurance, with ongoing benefits from associate investments.

• The sale of Eurolife and acquisition of ERB Asfalistiki are expected to close in Q1 2026, with an estimated pre-tax gain of $250 million.

• Management remains focused on underwriting discipline and capitalizing on market opportunities as conditions evolve.