Fairfax Financial Holdings . Stock Earnings Reports

Fairfax reported a strong Q3 2025: net earnings were $1.2 billion (bringing YTD to $3.5 billion) and book value per share rose to $1,204 (up 15.1% YTD, adjusted for the $15 dividend). Underwriting was robust with a 92% combined ratio producing $540 million of underwriting profit; all insurance segments generated underwriting profits, and catastrophe activity was lower in the quarter. Rating agencies continued to take notice (S&P upgraded core operating companies to AA-; A.M. Best upgraded several businesses to A+). Investment income was solid: interest and dividends of $655 million and net investment gains of $426 million (driven by equity unrealized gains). Fairfax highlighted a conservative, diversified investment approach: fixed income ($50.9B at ~5.1% yield), public equities and preferreds (~$14.2B), and equity-accounted/private holdings (~$11.8B, led by Eurobank and Poseidon). Management reiterated a stable operating-income base (~$5B annually, split roughly 2.5B interest/dividends, 1.5B underwriting, 1B associates/noninsurance) they believe is sustainable for several years. Significant transactions: agreement to sell 80% of Eurolife life operations to Eurobank (expected pretax gain ~ $250M on closing, Q1 2026), Fairfax bought back shares and continues opportunistic debt issuances, and a take-private proposal was made for Kennedy-Wilson. Holding company liquidity remains solid (≈$2.8B cash/investments, $2B unused revolver). Management emphasized underwriting discipline, decentralized operations run by long-tenured presidents, and patience deploying capital into areas of clear value while curtailing activity where pricing is unattractive. They also flagged interest-rate-related volatility this quarter (discounting effects produced a net loss component), but on a YTD basis results aligned with expectations for partial mitigation of interest-rate risk.