In Q3 2024, Fairfax Financial Holdings reported net earnings attributable to shareholders of $1,030.8 mn, down slightly from $1,068.9 mn in Q3 2023. The figure reflects an increased adjusted operating income of $1,136.8 mn, along with net gains on investments.
Fairfax’s book value per share was $1,033.18 as of September 30, 2024, up 11.7% from $939.65 at the end of 2023, factoring in a $15 per share dividend paid in Q1 2024.
Net earnings for Q3 2024 stood at $1,119.5 mn, a slight decrease from $1,187.0 mn in Q3 2023. Gross premiums written (GPW) for Q3 2024 reached $8,302.2 mn, rising from $7,272.2 mn in Q3 2023.
Fairfax’s insurance and reinsurance units reported an improved combined ratio of 93.9%, down from 95% in 2023, alongside an underwriting profit of $389.7 mn, up from $291.6 mn in the previous year.
Net premiums written by Fairfax’s property and casualty operations rose by 10% to $6,420.4 mn from $5,837.9 mn, while GPW increased by 13.9%.
The increase in premiums partly reflects the consolidation of Gulf Insurance on December 26, 2023, adding $420.5 mn in net premiums and $778.4 mn in GPW for 2024.
This growth was offset by a slight decrease at Odyssey Group. Fairfax reported a net expense of $731.8 mn from discounting insurance and reinsurance contracts, including a net finance expense of $1,112.6 mn related to insurance and reinsurance contract assets.
Odyssey Group, a Fairfax subsidiary specializing in reinsurance, posted $1,546.2 mn in GPW, down 4.7% from $1,621.9 mn in Q3 2023. Brit, another Fairfax unit, recorded $888.8 mn in GPW, marking a 3.8% decrease from $923.5 mn in the previous year.
In contrast, Allied World, a Fairfax provider of reinsurance solutions, saw a 3% rise in GPW, reaching $1,671.8 mn from $1,623.2 mn.
Prem Watsa, Fairfax Chairman and CEO, noted the strong Q3 2024 results, with adjusted operating income at $1,136.8 mn, up from $967.2 mn in Q3 2023.
Our underwriting performance in the third quarter of 2024 was outstanding, with our property and casualty insurance and reinsurance companies reporting a consolidated combined ratio of 93.9% and consolidated underwriting profit of $389.7 mn, on an undiscounted basis, despite higher current period catastrophe losses of $434.5 mn
Prem Watsa, Fairfax Chairman and CEO
The Gulf Insurance acquisition added $778.4 mn in GPW and $420.5 mn in net premiums written, with organic growth excluding Gulf at 3.2% and 2.8%, respectively.
Fairfax’s net investment gains of $1,287.3 mn in Q3 included mark-to-market gains on bonds and common stocks, totaling $828.6 mn and $322.9 mn, respectively. Watsa also highlighted Fairfax’s strong financial position, with $2 bn in cash and marketable securities, plus an additional $2.1 bn in investments in associates and non-insurance entities.
