Fairfax Financial Holdings reported $1.39 bn in net earnings attributable to shareholders for the second quarter of 2026, equal to $63.38 per diluted share. A year earlier, the company posted $1.44 bn.
Fairfax’s Aug. 3 results point to softer pricing at Brit, faster premium growth in Asia and Latin America, and a wider gap between gross and net premium growth, which says plenty about retained risk and reinsurance use.
Fairfax’s property and casualty insurance and reinsurance operations improved their consolidated combined ratio to 93.1%, down from 93.3% a year earlier. Premium growth slowed in parts of the book, but underwriting profit stayed strong.
Brit stands out. Fairfax said slower net premium growth in its Global Insurers and Reinsurers segment came from a more competitive pricing environment in certain lines, principally at Brit, its London market and international specialty carrier.
That language gives brokers a usable renewal point. This is not loose market gossip or vague rate chatter. It is Fairfax confirming softer pricing at a named specialty underwriter.
For brokers placing specialty or London market business through Brit, the disclosure belongs in renewal discussions now. Waiting for anecdotal feedback from underwriters months later leaves value on the table.
Fairfax improved its combined ratio despite pressure in part of the book, which suggests the group grew through volume and new business rather than cutting rate to chase share. Gross premiums written rose 4.1%. Net premiums written increased 2.4% to $7.34 bn.
Underwriting performance in the second quarter of 2026 remained strong, with our property and casualty insurance and reinsurance companies reporting a consolidated combined ratio of 93.1% and consolidated underwriting profit of $458.6 mn, on an undiscounted basis
Prem Watsa, chairman and chief executive officer
Watsa also said Fairfax bought 680,307 subordinate voting shares for cancellation during the quarter, paying $1.09 bn in cash consideration.
Growth has a geographic tilt. Fairfax’s International Insurers and Reinsurers segment led gross premium growth, with the company naming Fairfax Asia and Fairfax Latin America as drivers.
According to Beinsure analysts, Fairfax’s international carriers appear to have more room for growth than its mature Global and North American operations, where pricing pressure looks tougher.
Accounts in those regions that did not previously look like natural Fairfax placements deserve another look. Not a guaranteed fit. Still worth testing.
The gross-to-net premium gap deserves attention too. Fairfax grew gross premiums 4.1%, but net premiums only 2.4%. That spread points to the group ceding a larger share of risk to reinsurance than the headline growth rate suggests.
For brokers building programs or facilities backed by Fairfax capacity, this gap creates a direct underwriting question: how much risk does Fairfax keep net, and how much does it pass to reinsurance partners? That answer affects program durability, renewal stability and claim handling over time.
Investment gains gave Fairfax more capital flexibility. Net investment gains reached $768.9 mn in the quarter, driven mainly by an $838.4 mn realized gain from the sale of a 23.1% stake in Poseidon.
Fairfax does not appear under capital pressure in the segments brokers care about here. Its underwriting margin stayed profitable, Brit faces pricing competition, Asia and Latin America are growing faster, and the carrier group is using reinsurance in a way brokers should examine before placing long-duration programs.
