Fairfax Financial (FFH) Q3 2025 earnings summary

Executive summary

• Net earnings for Q3 2025 reached $1.2 billion, up from $1 billion in Q3 2024, with nine-month net earnings at $3.5 billion.

• Net earnings for Q3 2025 were $1,151.7 million ($52.04 per diluted share), up from $1,030.8 million ($42.62 per diluted share) in Q3 2024, driven by strong underwriting, higher investment income, and favorable associate results.

• Book value per share increased to $1,204, up 15.1% for the first nine months, adjusted for a $15 dividend.

• All insurance segments produced underwriting profit, with a combined ratio of 92% and favorable reserve development.

• Announced sale of 80% interest in Eurolife's life insurance operations for $940 million and acquisition of 45% of ERB Asfalistiki for $68 million.

Financial highlights

• Interest and dividend income was $655 million, up 7.5% year-over-year.

• Net gains on investments were $426 million, driven by $525 million in equity gains, offset by bond and other investment losses.

• Non-insurance consolidated companies delivered $211 million in operating income, up from $49 million in Q3 2024, aided by acquisitions.

• Property and casualty net premiums written increased 2.1% year-over-year to $6,555.5 million, with gross premiums written up 3.1% excluding Gulf Insurance.

• Underwriting profit rose to $540.3 million from $389.7 million, with the combined ratio improving to 92.0% from 93.9% due to lower catastrophe losses.

Outlook and guidance

• Annual operating income is expected to remain stable at approximately $5 billion over the next 3–4 years, with $2.5 billion from interest/dividends, $1.5 billion from underwriting profit, and $1 billion from associates and non-insurance companies.

• The company expects continued focus on property and casualty insurance and reinsurance, with ongoing benefits from associate investments.

• The sale of Eurolife and acquisition of ERB Asfalistiki are expected to close in Q1 2026, with an estimated pre-tax gain of $250 million.

• Management remains focused on underwriting discipline and capitalizing on market opportunities as conditions evolve.