Fairfax Financial (FFH) Q2 2026 earnings summary

Executive summary

• Underwriting income reached $427 million in Q2 2025, with strong results across major insurance and reinsurance segments and disciplined underwriting in a softening market, especially in North America.

• Net earnings for Q2 2026 were $1,392.7 million ($63.38 per diluted share), slightly down from $1,436.7 million ($61.61 per diluted share) in Q2 2025.

• Book value per basic share rose to $1,304.39 at June 30, 2026, up 4.8% from December 31, 2025, adjusted for dividends.

• International operations grew 8% and now represent about 20% of total business, with further diversification from international books in larger subsidiaries.

• Property and casualty insurance and reinsurance operations delivered adjusted operating income of $1,105.5 million, with a consolidated combined ratio of 93.1% and underwriting profit of $458.6 million.

Financial highlights

• Book value per basic share increased 4.8% to $1,304.39 at June 30, 2026, adjusted for dividends.

• Common shareholders' equity decreased by CAD 234 million to CAD 26 billion, mainly due to share buybacks, dividends, and FX losses, partially offset by net earnings of CAD 2.1 billion.

• Non-insurance companies reported operating income of $194 million in Q2 2026, up from $126 million in Q2 2025.

• Interest and dividend income rose 11% year-over-year, driven by portfolio growth and higher reinvestment rates.

• Net premiums written in property and casualty increased 2.4% to $7,344.1 million, driven by new business and growth in international segments.

Outlook and guidance

• Management remains focused on profitability over top-line growth, optimizing portfolios for higher-margin business and pulling back from less attractive lines.

• The company expects continued growth in international and global insurance segments despite competitive pricing.

• Associate income can fluctuate due to one-time items, but management expects strong long-term potential from holdings.

• No formal guidance provided, but combined income from associates and consolidated investments is running above the previously indicated $1 billion annual target.

• Several acquisitions and divestitures are pending, including the sale of Eurolife Life Operations and acquisitions of Andrew Peller Limited and Sleep Number assets.