Fairfax Financial Holdings reported fiscal 2025 net earnings of $4,772.4 mn, equal to $213.78 per diluted share after preferred dividends. A year earlier, the group posted $3,874.9 mn, or $160.56 per diluted share.
Book value per basic share reached $1,260.19 at December 31, 2025, up from $1,059.60 at year-end 2024, a 20.5% increase adjusted for the $15 common dividend paid in Q1 2025.
Prem Watsa, Chairman and Chief Executive Officer, called 2025 the strongest year in the company’s history. Net earnings approached $4.8 bn.
Record underwriting profit, elevated interest and dividend income, sustained contributions from associates and non-insurance holdings, and strong net investment gains drove the result.
All major insurance and reinsurance segments posted combined ratios below 100%. The consolidated combined ratio stood at 93% on an undiscounted basis, producing underwriting profit of $1,816.6 mn, above $1,791.4 mn in 2024 when the combined ratio reached 92.7%.
Growth in business volumes and higher favorable prior-year reserve development of $751.5 mn, or 2.9 combined ratio points, supported performance.
In 2024, favorable development totaled $593.6 mn, or 2.4 points. Higher current-year catastrophe losses weighed on margins, rising to $1,242.1 mn, or 4.8 points, against $1,099.3 mn, or 4.5 points, in 2024.
Property and casualty insurance and reinsurance operations generated adjusted operating income of $4,629.8 mn, down 2.8% from $4,761.1 mn.
Lower share of profit from associates reduced earnings, though underwriting gains and stronger interest and dividend income offset part of the decline. Including discounting net of risk adjustment on claims, operating income reached $5.9 bn.
Net premiums written in property and casualty insurance and reinsurance increased 3.9% to a record $26.3 bn from $25.3 bn. Gross premiums written rose 2.3% to $33.3 bn, an increase of $0.8 bn.
Most operating companies expanded, driven by new business in reinsurance and casualty lines, alongside modest rate increases in selected segments.
Investment performance delivered net gains of $3.2 bn. Common stocks contributed $3.1 bn in net gains and bonds added $0.4 bn. Interest and dividend income reached a record $2.6 bn.
Consolidated interest and dividends totaled $2,574.0 mn, up from $2,511.9 mn, with $2,241.5 mn generated by property and casualty investment portfolios compared with $2,224.6 mn in 2024.
The consolidated statement of earnings recorded a net loss of $58.5 mn tied to declines in discount rates during the year. In 2024, the comparable loss reached $529.9 mn.
The 2025 result included a $443.9 mn net loss on insurance contracts and reinsurance contracts held, partly offset by $385.4 mn in net bond gains. The fourth quarter produced a net benefit of $8.7 mn. A year earlier, Q4 reflected a net loss of $437.7 mn.
Float within property and casualty operations increased 11.2% to $39.3 bn at December 31, 2025, up from $35.4 bn a year earlier. Life insurance and Run-off operations reported an operating loss of $213.7 mn, wider than the $92.1 mn loss in 2024.
Higher adverse prior-year reserve development at Run-off, totaling $298.5 mn on an undiscounted basis and largely tied to latent hazard claims, drove the deterioration. In 2024, adverse development reached $221.1 mn.
At year-end 2025, insurance and reinsurance subsidiaries held $70 bn in portfolio investments, excluding Fairfax India’s $2.1 bn portfolio. Cash and short-term investments represented $9 bn, or 12.8% of total portfolio investments.
Consolidated share of profit from associates reached $816.1 mn, including $571.7 mn earned within property and casualty investment portfolios.
Contributions included $474.1 mn from Eurobank, $286.9 mn from Poseidon, formerly Atlas, $55.1 mn from Digit and $52.5 mn from EXCO.
Waterous Energy Fund III reduced the total with a $64.7 mn share of loss. In 2024, share of profit from associates totaled $956.3 mn and included $57.0 mn from Peak Achievement, consolidated on December 20, 2024.
During 2025, Fairfax repurchased 1,006,535 subordinate voting shares for cancellation at an aggregate cost of $1.6 bn, or $1,615 per share.
According to Beinsure analysts, the buyback underscores capital flexibility as earnings and float expand.
