Fairfax Financial (FFH) Q1 2025 earnings summary

Executive summary

• Net earnings for Q1 2025 were $946 million, up from $777 million in Q1 2024, driven by higher net investment gains despite significant catastrophe losses from California wildfires totaling $692 million.

• Book value per share increased to $1,080.38 as of March 31, 2025, up 3.5% from year-end, adjusted for a $15 dividend.

• Insurance and reinsurance operations produced an underwriting profit of $97 million, with a consolidated combined ratio of 98.5%.

• Gross premiums written grew 5% year-over-year to $8.4 billion, with strong growth in North America and global segments.

Financial highlights

• Operating income from insurance and reinsurance (undiscounted, before risk margin) was $686 million, down from $977 million in Q1 2024 due to wildfire losses.

• Interest and dividend income rose to $607 million, up 2.8% year-over-year.

• Net gains on investments were $1.06 billion, driven by $780 million in equity gains and $388 million in bond gains.

• Book value per share does not include $1.4 billion in unrealized gains on certain investments.

Outlook and guidance

• Management remains confident in the long-term growth prospects of international operations, citing underpenetrated markets and strong local economies.

• Companies are well-positioned to capitalize on market opportunities in 2025, supported by strong management and conservative reserving.

• Management remains focused on strong financing, ending the quarter with $2.1 billion in cash and marketable securities and $1.7 billion in investments in associates and consolidated non-insurance companies.