Fairfax stock positions

[TwoCitiesCapital]

25 minutes ago, mananainvesting said:

Anyone knows what's happening here? Would hate for something like this ruin Fairfax's long term reputation. I am long Fairfax, and have no position in Avante.  I have a general disdain for anyone screwing over minority shareholders. 

 

https://x.com/ChapTwelveCap/status/1978598470664487157

 

It's been discussed here in multiple occasions that Fairfax owes it's duty to its shareholders and not the retail investors who also hold its investments.

 

There are many examples  of Fairfax doing things that retail investors in underlying targets/controlled subs felt wasn't in their best interest, but ultimately suited Fairfax. There was even a court case about one of them. Simply be aware when you're buying into underlying holdings in Fairfax's portfolio - particularly if those names are underperforming 

[LC]

This is par for the course. Just look at Berkshire buying Oxychem. I notice they weren't making a deal when oil was 90+ and Oxy's stock price was double its current price. Another similar recent deal from Fairfax would be at the Atlas corp takeout. 

[Parsad]

6 hours ago, Hoodlum said:

It is interesting to see how OMERS has been involved with Fairfax investments over the past 10 years.  There was the initial Fairfax India IPO, Allied acquisition and the $1B share purchase in 2021.   I am sure there are other involvements that I am missing. Fairfax must have a very good relationship with someone at OMERS. 

 

Fairfax has a good relationship with a lot of people!  They are developing the type of reputation that Berkshire Hathaway has when it comes to deals, success, and watching the check clear.  And we're only about half way through this story!  Cheers!

[djokovic1]

6 hours ago, dartmonkey said:

August 23, SafetyinNumbers posted a table from RBC Capital Markets (made in June 2025) with a very similar logic, based on how much leverage is involved as a multiple of equity:

 

Yes thats a nice table and thats how I like to compare the different insurers against each other. The big thing to notice there is how low a number all the others have in the investment return line (which is the big driver of ROE due to the leverage). And why is that? That is because most other insurers unlike FFH (except Berkshire, Markel and Protector) invest a very small amount of their float into equity likely because they dont have the long term alignment / skill and ability to withstand volatility. And additionally most others (including Markel) were naively long duration in a zero rate environment in 2021.

 

So the insurance model really only works really well with great capital allocation on the investment side (and that too on both the fixed income and equity side).

[Viking]

On 10/14/2025 at 3:24 PM, Viking said:

Below are some of my key take-aways from Fairfax’s recently announced sale of its 80% stake in Eurolife’s life insurance business to Eurobank (who owns the other 20%) for proceeds of US$944.7 million. Fairfax will also buy 45% of Eurobank’s P/C insurance business in Cyprus for $69 million. Both transactions are expected to close in Q1 2025.

 

1.) This is a very large transaction. Proceeds to Fairfax will be $876 million ($944.7m less $69m).

2.) This is a strategic transaction.

• Financial services in SE Europe is moving to an integrated model - banking, wealth management and insurance. Life insurance is a core business for Eurobank (buyer). Not for Fairfax (seller).
• Fairfax continues to own 80% of Eurolife’s P/C insurance business in Greece/Bulgaria. And expands into Cyprus (buying 45% of Eurobank’s P/C insurance business in Cyprus for $69 million).

3.) The price being paid is fair for both parties (P/BV = 1.45 x at Aug 31, 2025).

• This makes sense given Fairfax owns about 32.3% of Eurobank.

4.) This deal demonstrates that Fairfax is a good long term partner. When it needed cash back in 2016, Eurobank sold 80% of Eurolife to Fairfax. Now that it is flush with cash, the life insurance asset is being returned to Eurobank - where it has always belonged. This should help Fairfax with future deal flow.

5.) Fairfax’s use of minority partners has been brilliant. When Fairfax bought 80% of Eurolife in 2016 (for $361 million) they were also short on cash. They brought on OMERS as a short term partner, with each paying $180 million for 40% of Eurolife. Fairfax took out OMERS in 2021.

6.) This transaction allows Fairfax to successfully monetize another investment. Fairfax should book a large investment gain when the deal closes in Q1-2026.

• In very rough terms, Fairfax paid about $361 million in two instalments (2016 to 2021) for 80% of Eurolife. Fairfax has also received significant dividends from Eurolife. When the deal closes, Fairfax will be paid $944.7 million and will continue to own the legacy P/C insurance business of Eurolife.
• We will likely get more of the financial details when Fairfax reports Q3 results in a few weeks.

7.) This transaction will come as a surprise to investors/analysts. It shouldn’t. This is the third asset monetization of 2025 for Fairfax (after Sigma in Q1 and Praktiker in Q3). Each year Fairfax monetizes/revalues a number of assets - it is an important part of their business model.

• For 8 years Fairfax has been improving the quality of the assets (insurance and equities) on its balance sheet. With transactions like Eurolife, we are seeing the results. With much more to come.

8.) Over the past 5 years, Fairfax has been delivering a masterclass in capital allocation. This transaction is just the latest in a long list of accomplishments for the company. Welcome to ‘new Fairfax.’

 

A few final thoughts (for now) on Fairfax's recent sale of Eurolife's life insurance business to Eurobank:

 

The importance of having a seat at the table

 

Over the years, I have been quite critical of Fairfax’s initial investment in Eurobank. 

 

Eurolife has been a very good investment for Fairfax. At least that is my assumption given what we know today. We will know much more as Fairfax discloses more details on the transaction. 

 

It is likely that a big reason Fairfax was able to purchase 80% of Eurolife in 2015/16 was because it was already a large shareholder of Eurobank. 

 

I tend to look at Fairfax and its various holdings/decisions in a very narrow way. This can sometimes (often?) be too simplified of a way to look at things. Readers need to keep this in mind.  

 

—————

 

Minority partners

 

Using a minority partner (OMERS in this case) allowed Fairfax to buy 80% of Eurolife when it was short on cash in 2016. Fairfax took out OMERS in 2021. Having the ability to use the balance sheet of trusted, long term external partners like OMERS is a big benefit for Fairfax. 

 

In a kind of an ironic twist, Fairfax could now use the significant proceeds from the sale of its 80% stake in Eurolife’s life insurance business ($944.7 million) to take out its minority partner in Allied World. Essentially, it’s kind of like Fairfax trading its 80% ownership position in Eurolife’s non-core life insurance business for the 16.6% of Allied World that is currently owned by minority partners (bringing Fairfax’s ownership in Allied World to 100%). Allied World has been Fairfax’s top performing P/C insurance subsidiary in recent years. That looks like a very good trade in my book.

 

—————

 

'Transaction tree'

 

In sports it can be quite interesting to put together a 'trade tree' for when a player is traded which visually captures all subsequent trades of the players and draft picks involved. 

 

It would be really interesting to try and construct a 'transaction tree' for Fairfax that captures an initial investment and then (over the years) all the subsequent 'trades' in the form of money in (dividends and proceeds as the asset is monetized) and money out (what the proceeds were then reinvested into). In a chart. 

 

This would provide a very interesting take on the long term value creation that has been happening at Fairfax, especially in recent years. It would show how one good transaction often leads to many more good transactions in future years.

 

Yes, this is hard to do in practice. However, I think it has merits as a thought exercise. It would likely really demonstrate the power of compounding and time - as it pertains to Fairfax's business model today (and how well they have been executing).  

Edited October 16, 2025 by Viking

[gary17]

8 hours ago, Hoodlum said:

 

Likely due to market softening.  BRK is down 7% over past week, CHUBB down 6%.  Also, a general lack of understanding of Fairfax earning during a softer market.  Then you have the knee jerk reactions that come into play as well.

Market is reacting to rate cuts i think 

[glider3834]

4 hours ago, Viking said:

 

A few final thoughts (for now) on Fairfax's recent sale of Eurolife's life insurance business to Eurobank:

 

The importance of having a seat at the table

 

Over the years, I have been quite critical of Fairfax’s initial investment in Eurobank. 

 

Eurolife has been a very good investment for Fairfax. At least that is my assumption given what we know today. We will know much more as Fairfax discloses more details on the transaction. 

 

It is likely that a big reason Fairfax was able to purchase 80% of Eurolife in 2015/16 was because it was already a large shareholder of Eurobank. 

 

I tend to look at Fairfax and its various holdings/decisions in a very narrow way. This can sometimes (often?) be too simplified of a way to look at things. Readers need to keep this in mind.  

 

—————

 

Minority partners

 

Using a minority partner (OMERS in this case) allowed Fairfax to buy 80% of Eurolife when it was short on cash in 2016. Fairfax took out OMERS in 2021. Having the ability to use the balance sheet of trusted, long term external partners like OMERS is a big benefit for Fairfax. 

 

In a kind of an ironic twist, Fairfax could now use the significant proceeds from the sale of its 80% stake in Eurolife’s life insurance business ($944.7 million) to take out its minority partner in Allied World. Essentially, it’s kind of like Fairfax trading its 80% ownership position in Eurolife’s non-core life insurance business for the 16.6% of Allied World that is currently owned by minority partners (bringing Fairfax’s ownership in Allied World to 100%). Allied World has been Fairfax’s top performing P/C insurance subsidiary in recent years. That looks like a very good trade in my book.

 

—————

 

'Transaction tree'

 

In sports it can be quite interesting to put together a 'trade tree' for when a player is traded which visually captures all subsequent trades of the players and draft picks involved. 

 

It would be really interesting to try and construct a 'transaction tree' for Fairfax that captures an initial investment and then (over the years) all the subsequent 'trades' in the form of money in (dividends and proceeds as the asset is monetized) and money out (what the proceeds were then reinvested into). In a chart. 

 

This would provide a very interesting take on the long term value creation that has been happening at Fairfax, especially in recent years. It would show how one good transaction often leads to many more good transactions in future years.

 

Yes, this is hard to do in practice. However, I think it has merits as a thought exercise. It would likely really demonstrate the power of compounding and time - as it pertains to Fairfax's business model today (and how well they have been executing).  

viking I just put this table together shows my estimate for dividends paid by Eurolife Life & General businesses to the Eurolife FFH Group Holdings & I have noted Fairfax's ownership increased over 2016 to 2024 period - I took these from annual reports published on eurolife ffh website https://www.eurolife.gr/en/gnoriste-mas/financial-data/

 

I couldn't find any information on whether Eurolife Life paid any further dividends in 2025  

 

 

 

 

 

 

Edited October 17, 2025 by glider3834

[Viking]

3 hours ago, glider3834 said:

viking I just put this table together shows my estimate for dividends paid by Eurolife Life & General businesses to the Eurolife FFH Group Holdings & I have noted Fairfax's ownership increased over 2016 to 2024 period - I took these from annual reports published on eurolife ffh website https://www.eurolife.gr/en/gnoriste-mas/financial-data/

 

I couldn't find any information on whether Eurolife Life paid any further dividends in 2025  

 

 

 

@glider3834, that is great work. Bottom line, it appears Eurolife has been a cash cow for Fairfax right from the beginning in 2016. It looks like €813 million for 80% of Eurolife’s life insurance business is good price for Eurobank. Which is also good for Fairfax given their large ownership stake in Eurobank. . 
 

Of the dividends paid to FFH Group Holdings from 2016 to 2021, i wonder if it was split between Fairfax and OMERS. Or if it all went to Fairfax. 

[glider3834]

2 hours ago, Viking said:

@glider3834, that is great work. Bottom line, it appears Eurolife has been a cash cow for Fairfax right from the beginning in 2016. It looks like €813 million for 80% of Eurolife’s life insurance business is good price for Eurobank. Which is also good for Fairfax given their large ownership stake in Eurobank. . 
 

Of the dividends paid to FFH Group Holdings from 2016 to 2021, i wonder if it was split between Fairfax and OMERS. Or if it all went to Fairfax. 

it looks like FFH Group Holdings paid dividends to Costa Luxembourg jointly controlled by Fairfax & OMERS, which bought the 80% stake originally, looks to be private company & so couldn't see financials on this one.

 

Another thing which is interesting Eurolife FFH life sale price has been published as 1.45 x book value. It looks like shareholders equity for Eurolife FFH Life was €571M at 31 Dec-24 - applying 1.45 multiple would give €827M but the sale price is €813 million (implying shareholder equity of €560M  - so I have a hunch & I could be totally wrong, but i suspect there has been another dividend paid by Eurolife life to FFH Group Holdings in 2025 prior to this sale price being agreed on, given Eurolife has generally been consistently profitable and shareholders equity has fallen since end of 2024 (which is suspect could be due to dividend payout). 

 

And this might also be a consideration but if you look at the original purchase below, Eurobank took out its dividend prior to the sale to Fairfax & OMERS in 2016.

 

I think around 77% of the premium for Eurolife Life is coming from Eurobank network, so I think the natural home for this business is with Eurobank and a natural acquisition for their strategic priorities to grow fee income in AM and life insurance. This is a very off the cuff comment because I haven't really looked into details but I think given Eurolife Life appears quite dependent on the Eurobank network to distribute that might be a consideration that impacts price to book sale multiple too & might be a factor in why Fairfax wanted Eurobank as 20% shareholder.

 

I do wonder about the investment side if Hamblin Watsa will still have some involvement or if Eurolife Life just takes it all inhouse - will be interesting to get more details 

 

 

 

 

Edited October 17, 2025 by glider3834

[Viking]

Dexterra – DXT.TO

 

Dexterra is a publicly traded company based in Canada (ticker DXT.TO). Fairfax owns 50.9% of Dexterra (32.0 million shares). As a result, from a financial perspective for Fairfax, Dexterra’s financial results are consolidated.

 

Dexterra’s stock is currently trading at about C$10.10/share ($7.20/share). This puts the market value of Fairfax’s stake in Dexterra at about $230 million. Fairfax has a carrying value for Dexterra of $98 million. The excess of FV over CV for Dexterra is $132 million. This is economic value that has been created by Fairfax that is not captured in its book value. 

 

Dexterra pays a dividend of C$0.10/quarter = C$0.40/year ($0.29/year) = $9.1 million per year. This gives Fairfax a yield to CV of 9.3% ($9.1/$98).  

 

A short history of the company

 

In 2018, Fairfax purchased Carillion Canada out of bankruptcy. The problem with Carillion was its UK parent went bankrupt. Fairfax paid about five times free cash flow for the Canadian operations. In 2020, Dexterra acquired Horizon North Logistics in a reverse takeover. Fairfax owned 49% of the combined company. This deal closed in May of 2020 (as Covid was raging). At the time, Dexterra’s CEO, John MacCuish, set the audacious target for C$1 billion in revenue and C$100 million in EBITDA in the ‘next few years.’

 

Dexterra has likely been a bit of a frustrating investment for Fairfax. But that may be changing.

 

Part of the problems were external – the reverse takeover of Horizon North was completed in May of 2020, right in the teeth of Covid. And covid hit both Dexterra’s and Horizon North’s businesses very hard. Spiking inflation in 2022 then hit Dexterra hard (it took time for the different business units to reprice contracts higher). Part of the problem was a big misstep by the former CEO and an ill-fated foray into modular housing (this unit was sold in 2024).

 

However, it appears the management team at Dexterra has stabilized its business and is shifting back into growth mode. They recently expanded into the US and this now gives the company a long runway for growth. 

 

The stock has responded – at C$10.10/share, it is trading at all-time highs. 

 

Management presentation from September 2025

• https://ir.dexterra.com/wp-content/uploads/2025/09/Investor-Presentation_September-2025.pdf

Comments from Prem about Dexterra from the 2024AR. 

 

"Dexterra is on track to achieve its vision of becoming a leader in delivering quality solutions to create, manage and operate infrastructure across North America. Mark Becker and the team made significant progress in 2024. Dexterra delivered strong profitability, free cash flow and organic growth from continuing operations. The company also closed an important U.S. acquisition in the facilities management space and sold its modular business consistent with its capital light philosophy. The company has reorganized the existing business from an operating and reporting perspective into two segments – support services and asset-based services. This change provides a clear strategic direction for the future. Dexterra enters 2025 with good prospects, a strong balance sheet and debt well under 1x EBITDA. It has the financial flexibility to continue to scale the support services business through organic growth and strategic, niche acquisitions. Dexterra is carried on our balance sheet at $97 million ($3.08 per share), which is significantly less than the market value of $170 million or $5.42 per share (Cdn$7.80). Dexterra has paid Cdn$49 million in dividends to Fairfax since our initial investment in 2018."

 

 

Edited October 17, 2025 by Viking

[Txvestor]

Anyone know if they would have a tax liability if they unwound their TRS position on their own shares by retiring them? 

[gfp]

13 minutes ago, Txvestor said:

Anyone know if they would have a tax liability if they unwound their TRS position on their own shares by retiring them? 

 

I have often wondered if this position was taxable or not.  Usually, at least in the USA, transactions in an issuers own shares are not taxable.  Shares can be bought, held in treasury, re-sold at a "profit" later, without tax.

 

I don't know if derivatives on an issuers own shares receive similar treatment.  I think the derivatives gain/loss would be treated separately and ultimately buying shares from a counterparty would not change the tax treatment of the TRS gain/loss.

 

One example in the United States is Biglari's Lion Fund, which owns hundreds of millions of dollars worth of Biglari Holdings stock.  Treated primarily as treasury shares by GAAP, since 91.6% of the Lion Fund is owned by the company.  These GAAP "treasury" shares could be sold for more than they were purchased for with no tax on "gains."  This also allows the shares to be swapped between partnerships for an inside/outside basis maneuver that allows Lion Fund 2 to indefinitely defer cash taxes due on certain realized capital gains until the partnerships are unwound.  It is unusual to have a large non-taxable asset to swap so it is not a common situation.  The IRS has stated they would like to crack down on those inside/outside basis swaps between partnerships but Biglari's case is unique enough it will probably squeak by, at least under this administration. 

[Thrifty3000]

3 hours ago, Txvestor said:

Anyone know if they would have a tax liability if they unwound their TRS position on their own shares by retiring them? 

My understanding is swaps (even on your own shares) are taxed as ordinary gains.

[Thrifty3000]

Keep in mind swaps are just a derivative - an asset that derives value from the value of another asset. Swaps do not convey any ownership of the underlying asset.

[gfp]

I forgot that I actually asked John Varnell this question.  They are taxable in Canada and the reason is probably because they are cash-settled and not settled in the issuer's own shares

 

[netcash1]

Anyone know what Stand Insurance (AI insurer) valuation was when they raised $35M in a Series B round this week?  Could give us some good color on how the valuation is developing at Ki Insurance.

 

thank you

[SafetyinNumbers]

34 minutes ago, netcash1 said:

Anyone know what Stand Insurance (AI insurer) valuation was when they raised $35M in a Series B round this week?  Could give us some good color on how the valuation is developing at Ki Insurance.

 

thank you

Why do you think it’s a good comp?

[netcash1]

It may not be an apples to apples Comp but it would give us color on what investors are paying for AI related InsureTech that has $1B in premiums vs Ki premiums of $1B in 2024 and expected $1.5B in 2025.

 

 

[SafetyinNumbers]

13 minutes ago, netcash1 said:

It may not be an apples to apples Comp but it would give us color on what investors are paying for AI related InsureTech that has $1B in premiums vs Ki premiums of $1B in 2024 and expected $1.5B in 2025.

 

 

Stand has $1b of insured value  not $1b of premiums as far as I can tell. 

[netcash1]

Good catch on insured value.  The valuation is still noteworthy.

[SafetyinNumbers]

8 hours ago, netcash1 said:

Good catch on insured value.  The valuation is still noteworthy.

There doesn’t seem to be a post money valuation available. 
 

I think Ki should IPO at a very healthy multiple of premiums. 5x seems reasonable given the growth, profitability and potential for a 20% ROE. 

[Hoodlum]

It looks like Seaspan has been able to avoid but the China and US tariffs so far.  Fortunately, Fairfax is a Canadian company. 
 

https://www.lloydslist.com/LL1155154/Seaspan-shifts-from-Hong-Kong-but-courts-Beijing-as-port-fee-tensions-escalate

 

• Seaspan chairman told a Shanghai forum the company’s US ownership is below 25%, exempting it from China’s port fees, while stressing its close ties with Chinese partners
•  
• Remarks come after Seaspan relocated its headquarters and more than 100 vessel flags from Hong Kong to Singapore, amid the US port tariffs impact
•  
• Moves underscore how shipping firms are walking a tightrope in the Beijing-Washington crossfire

 

[wondering]

https://finance.yahoo.com/news/cleveland-cliffs-stock-soars-after-company-touts-plans-to-re-focus-its-rare-earth-mining-efforts-154808356.html

[Junior R]

1 hour ago, wondering said:

https://finance.yahoo.com/news/cleveland-cliffs-stock-soars-after-company-touts-plans-to-re-focus-its-rare-earth-mining-efforts-154808356.html

Wonder if FFH uses this opportunity to exit CLF (shared recived from STLC acquisition) 

[Hoodlum]

This article provide a good summary of the Eurolife acquisition by Eurobank and how it will benefit the bank.  It is also interesting to hear how seamless the integration of Eurolife will be. 

 

It looks like Eurobank is also in line for a Ratings upgrade at some point soon.

 

https://cyprus-mail.com/2025/10/21/eurolife-deal-boosts-eurobanks-profitability-and-stability-says-moodys
 

 

Eurobank’s decision to reacquire full ownership of Eurolife FFH Life Insurance has been described as a credit-positive development for the Greek lender, according to a Moody’s assessment.

Moody’s observed that operational integration is expected to proceed smoothly, given that most of Eurolife’s employees are former Eurobank staff who share a common corporate culture and work ethic.

The agency also pointed out that around 80 per cent of Eurolife’s business in recent years has come through Eurobank’s distribution networks, highlighting the natural alignment between the two entities.

Eurobank’s management expects an increase of 100 basis points in the group’s return on tangible book value (RoTBV), which stood at 16.6 per cent in June 2025.
 

The bank estimates an immediate negative impact of around 120 basis points on its Common Equity Tier 1 (CET1) ratio, reflecting goodwill from the acquisition.

However, Eurobank plans to seek approval for the so-called Danish Compromise under Article 49 of the EU Capital Requirements Regulation, which, if granted by the Single Supervisory Mechanism (SSM) next year, would mitigate the capital impact.