Fairfax Financial Holdings reported net earnings of $3.87bn for the 2024 fiscal year, or $160.56 per diluted share after preferred dividends. This compares to $4.38bn in net earnings for 2023, or $173.24 per diluted share.
Book value per basic share rose to $1,059.60 as of December 31, 2024, from $939.65 a year earlier, reflecting a 14.5% increase when adjusted for the $15 per common share dividend paid in early 2024.
The company achieved a record $1.8bn in underwriting profit, with a consolidated combined ratio of 92.7%. Property and casualty insurance and reinsurance operations delivered a record $4.8bn in adjusted operating income and $6.5bn in total operating income, including the impact of discounting, net of risk adjustments.
These gains were driven by strong underwriting results, investment income, and contributions from associates. Gross premiums written increased by 12.6% to $32.5bn, while net premiums written rose by 11.6%, largely due to the 2023 acquisition of Gulf Insurance. Without this acquisition, gross premiums written grew by 3.1%, and net premiums written increased by 4.5%.
Key Highlights
- Net premiums written rose 11.6% to a record $25.3bn, while gross premiums written increased 12.6%. Gulf Insurance, consolidated in late 2023, contributed $2.7bn in gross premiums and $1.6bn in net premiums in 2024.
- The combined ratio improved to 92.7%, producing a record $1.79bn underwriting profit despite absorbing $1.1bn in catastrophe losses. Higher business volumes and favorable prior-year reserve development, amounting to $593.6mn, contributed to this result.
- Adjusted operating income from property and casualty insurance and reinsurance operations increased by 20.9% to $4.76bn. Total investment portfolio holdings reached $62.9bn, excluding Fairfax India’s $1.9bn portfolio, with 12.1% held in cash and short-term investments.
- Net investment gains reached $1.07bn, though Q4 saw a $403.2mn net loss. Equity investments drove gains, including a $343.7mn realized gain from selling Stelco and a $203.4mn remeasurement gain from consolidating Peak Achievement. Net equity total return swap gains reached $1.03bn, with 1.76mn Fairfax subordinate voting shares still held under swap agreements as of year-end.
- Net bond losses of $731.3mn reflected higher interest rates, causing unrealized losses on U.S. treasuries, Brazilian government bonds, and corporate bonds.
- Unrealized losses totaled $477mn due to the strong U.S. dollar. Fairfax considers these fluctuations similar to unrealized gains or losses on equities.
Investment gains totaled $1.1bn, led by $1.9bn in common stock gains, partially offset by $0.7bn in bond losses. Interest and dividend income rose to $2.5bn.
However, book value per share reflected a $477mn net comprehensive loss from unrealized foreign currency losses, mainly due to the U.S. dollar strengthening against various currencies in Q4 2024. The company considers these fluctuations similar to unrealized gains or losses on equity holdings.
Fairfax repurchased 1,346,953 subordinate voting shares for $1.6bn, or $1,179 per share. The company ended 2024 in a strong financial position, with $2.5bn in cash, marketable securities, and investments at the holding company level, plus $2bn in additional investments in associates and consolidated non-insurance subsidiaries.
Net premiums written for property and casualty insurance and reinsurance operations rose 11.6% to a record $25.3bn, while gross premiums written increased by 12.6%.
Gulf Insurance contributed $2.7bn in gross premiums and $1.6bn in net premiums in 2024. The combined ratio improved to 92.7%, generating a record $1.79bn underwriting profit despite absorbing $1.1bn in catastrophe losses. Increased business volumes and favorable prior-year reserve development, totaling $593.6mn, contributed to this result.
Adjusted operating income from property and casualty insurance and reinsurance operations rose 20.9% to $4.76bn. Investment holdings reached $62.9bn, excluding Fairfax India’s $1.9bn portfolio, with 12.1% held in cash and short-term investments. Net investment gains totaled $1.07bn, though Q4 saw a $403.2mn net loss.
| 2024 | 2023 | |||||
| Gross premiums written | 32,825.4 | 29,092.5 | ||||
| Net premiums written | 25,607.4 | 22,903.6 | ||||
| Net insurance revenue | 24,866.4 | 21,957.4 | ||||
| Sources of net earnings | ||||||
| Operating income – Property and Casualty Insurance and Reinsurance: | ||||||
| Insurance service result: | ||||||
| North American Insurers | 1,101.1 | 977.1 | ||||
| Global Insurers and Reinsurers | 3,037.4 | 2,828.0 | ||||
| International Insurers and Reinsurers | 463.6 | 330.8 | ||||
| Insurance service result | 4,602.1 | 4,135.9 | ||||
| Other insurance operating expenses | (1,038.1) | (822.1) | ||||
| 3,564.0 | 3,313.8 | |||||
| Interest and dividends | 2,224.6 | 1,654.7 | ||||
| Share of profit of associates | 745.1 | 761.6 | ||||
| Operating income – Property and Casualty Insurance and Reinsurance | 6,533.7 | 5,730.1 | ||||
| Operating loss – Life insurance and Run-off | (92.1) | (144.6 | ||||
| Operating income (loss) – Non-insurance companies | 241.4 | 121.9 | ||||
| Net finance income (expense) from insurance contracts and reinsurance contract assets held | (1,279.9) | (1,605.6 | ||||
| Net gains (losses) on investments | 1,067.2 | 1,949.5 | ||||
| Gain on sale and consolidation of insurance subsidiaries | — | 549.8 | ||||
| Interest expense | (649.0) | (510.0) | ||||
| Corporate overhead and other | (182.8) | (182.8 | ||||
| Earnings before income taxes | 5,638.5 | 5,908.3 | ||||
| Provision for income taxes | (1,375.6) | (813.4) | ||||
| Net earnings | 4,262.9 | 5,094.9 | ||||
| Attributable to: | ||||||
| Shareholders of Fairfax | 3,874.9 | 4,381.8 | ||||
| Non-controlling interests | 388.0 | 713.1 | ||||
| 4,262.9 | 5,094.9 | |||||
Equity investments generated significant gains, including a $343.7mn realized gain from selling Stelco and a $203.4mn remeasurement gain from consolidating Peak Achievement. Net equity total return swap gains reached $1.03bn, with 1.76mn Fairfax subordinate voting shares still held under swap agreements at year-end.
Net bond losses of $731.3mn reflected higher interest rates, which caused unrealized losses on U.S. treasuries, Brazilian government bonds, and corporate bonds.
Unrealized foreign currency losses totaled $477mn, mainly from the strong U.S. dollar. Fairfax views these as similar to unrealized gains or losses on equities.
Fairfax increased its ownership in Brit Insurance from 86.2% to 100%. It also acquired Sleep Country Canada for $880.6mn (Cdn$1.2bn), adding a national specialty sleep retailer to its portfolio.
The company raised its stake in Peak Achievement Athletics to 100% for $765mn, consolidating brands such as Bauer Hockey and Cascade Lacrosse. It also acquired a 50% stake in Blizzard Vacatia for $835mn, investing in timeshare resort development and rentals.
Additionally, it agreed to purchase a 33% equity interest in Albingia SA for $216mn (€209mn), with regulatory approval expected in Q2 2025.
The total debt-to-capital ratio, excluding non-insurance companies, rose to 24.8% from 23.1%, reflecting a $1bn senior notes issuance. Fairfax also raised Cdn$700mn in unsecured senior notes and redeemed Series C and D preferred shares.
The effective tax rate increased to 24.4% from 13.8%, reflecting new global tax regulations, reduced tax benefits on foreign income, and changes to India’s capital gains tax rates. The company repurchased 207,974 shares for $240.4mn and canceled 1,346,953 shares for $1.59bn at an average price of $1,179.24 per share.
In January 2025, Fairfax sold 80mn shares of Eurobank for $190.8mn, reducing its stake to 32.3% and recording a $40mn realized gain for Q1 2025. The excess of fair value over carrying value of non-insurance investments rose to $1.48bn from $1.01bn in 2023.
The company remains focused on expanding its insurance, reinsurance, and non-insurance businesses while maintaining financial strength.
At December 31, 2024 there were 21,668,466 common shares effectively outstanding.
