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, with all income sources performing strongly and marking the best year in company history.

• Book value per share rose 20.5% to $1,260.19, adjusted for a $15 dividend, with over 1 million shares repurchased at an average cost of $1,066.15 per share.

• 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 return was 9.3%, 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

• Net premiums written in property and casualty insurance and reinsurance grew 3.9% to $26.3 billion; gross premiums written increased 2.3% to $33.3 billion.

• Net gains on investments reached $3.2 billion, with $3 billion from equities and $385 million from bonds, offset by $440 million in FX losses.

• Consolidated interest and dividend income was $2.6 billion, up $62 million year-over-year.

• Float increased 11.2% to $39.3 billion.

• Effective tax rate for 2025 was 18%, lower than prior guidance due to unique capital gains in India and global tax changes.

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.

• Premium growth expected to be challenged by softening rates, but diversified operations allow for capital redeployment and resilience.

• Assets and liabilities related to the proposed sale of Eurolife Life Operations classified as held for sale, with an estimated pre-tax gain of $350 million expected at closing.

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