Fairfax Financial (FFH) Q4 2025 earnings summary

Executive summary

• Achieved record net earnings of $4,772.4 million ($213.78 per diluted share) for 2025, up from $3,874.9 million ($160.56 per diluted share) in 2024, marking the best year in company history.

• Book value per basic share rose to $1,260.19, a 20.5% increase adjusted for dividends.

• All major insurance and reinsurance segments posted combined ratios below 100%, with a consolidated combined ratio of 93.0% and record underwriting profit of $1.8 billion.

• Investment performance was strong, with net gains on investments of $3.2 billion and record interest and dividend income of $2.6 billion.

• Purchased over 1 million shares for cancellation at a cost of $1.6 billion.

Financial highlights

• Gross premiums written increased by 2.3% to $33.3 billion; net premiums written grew by 3.9% to $26.3 billion.

• Adjusted operating income for property and casualty insurance and reinsurance was $4,629.8 million, down 2.8% year-over-year.

• Float increased by 11.2% to $39.3 billion.

• Net gains on investments totaled $3,151.4 million, mainly from equities and equity total return swaps.

• Interest and dividend income reached $2,574.0 million.

Outlook and guidance

• Consolidated operating income for the coming years is targeted at $5 billion, including $1.5 billion underwriting profit, $2.5 billion interest/dividend income, and $1 billion from associates/non-insurance income.

• Underwriting profit guidance remains at $1.5 billion, with recent years exceeding this due to benign catastrophe losses and strong reserves.

• Proposed sale of Eurolife Life Operations to Eurobank expected to generate a pre-tax gain of approximately $350 million, with assets/liabilities classified as held for sale.

• AGT filed for a CAD 460 million IPO, with the company expecting to retain a 51–53% equity interest post-offering.

• Entered into a definitive merger agreement to acquire Kennedy Wilson, committing up to $1.65 billion in funding; transaction expected to close in Q2 2026.