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Posted (edited)

https://www.globenewswire.com/news-release/2026/02/19/3241605/0/en/Fairfax-Financial-Holdings-Limited-Financial-Results-For-The-Year-Ended-December-31-2025.html

 

PDF of press release is available now:

https://www.fairfax.ca/wp-content/uploads/2026/02/02_February_19_2026-FFH-2025-Q4-Press-Release-Final.pdf

 

 

  • At December 31, 2025 there were 20,856,086 common shares effectively outstanding, representing a decrease of 3.7% from the 21,668,466 common shares effectively outstanding at December 31, 2024.

 

Subsequent to year end:

"

  • The company has purchased 130,573 of its subordinate voting shares for cancellation at an aggregate cost of $220.0 million or $1,684.70 per share."
Edited by gfp
Posted

It looks like the final gain on the Eurobank closing in Q1 may be greater than initially anticipated.

 

  • Pursuant to the company’s previously announced proposed sale of its Eurolife Life Operations to Eurobank, at December 31, 2025 the company had classified assets of $3.4 billion and liabilities of $3.6 billion related to the Eurolife Life Operations as held for sale in its consolidated balance sheet. The current estimated pre-tax gain on closing is approximately $350 million, which will be affected prior to closing by market value changes in the investment portfolio of the Eurolife Life Operations and by the company's expected purchase of certain investments in that portfolio.
Posted

I couldn't find anything troublesome in this report. Very impressive.

 

Q4 combined ratio was 88.6%! 93% for the whole year. Favorable reserve development in Q4 2025 was actually less than in Q4 2024, but low cat losses were helpful in reducing the CR. Insurance operations are looking good.

Posted
31 minutes ago, treasurehunt said:

I couldn't find anything troublesome in this report. Very impressive.

 

Q4 combined ratio was 88.6%! 93% for the whole year. Favorable reserve development in Q4 2025 was actually less than in Q4 2024, but low cat losses were helpful in reducing the CR. Insurance operations are looking good.

 

+1 

Posted
1 hour ago, gfp said:

https://www.globenewswire.com/news-release/2026/02/19/3241605/0/en/Fairfax-Financial-Holdings-Limited-Financial-Results-For-The-Year-Ended-December-31-2025.html

 

PDF of press release is available now:

https://www.fairfax.ca/wp-content/uploads/2026/02/02_February_19_2026-FFH-2025-Q4-Press-Release-Final.pdf

 

 

  • At December 31, 2025 there were 20,856,086 common shares effectively outstanding, representing a decrease of 3.7% from the 21,668,466 common shares effectively outstanding at December 31, 2024.

 

Subsequent to year end:

"

  • The company has purchased 130,573 of its subordinate voting shares for cancellation at an aggregate cost of $220.0 million or $1,684.70 per share."
  • During 2025 the company purchased 1,006,535 subordinate voting shares for cancellation at a cost of $1,625.2 million or $1,614.69 per share.
  • At December 31, 2025 there were 20,856,086 common shares effectively outstanding, representing a decrease of 3.7% from the 21,668,466 common shares effectively outstanding at December 31, 2024.

Repurchased 1006k shares but shares effectively outstanding (is this taking treasury stock into account?) down only by 812k. Is the remaining 194k yearly dilution due to stock comp? At 1% seems high.

 

 

 

 

Posted (edited)

Outstanding year. Best in company's history. Reported diluted EPS was a strong $214 per share. The number that matters much more - economic EPS - was $269 per share ($214 + $55, from change in excess of FV over CV). BVPS is now $1,260.  

 

Q1 is shaping up to be a strong start to 2026:

  • $350 million gain from pending sale of Eurolife's life insurance business in Greece
  • Equities are up ~$1.3B (as of Feb 18)
  • 'Normal' (solid) quarter for insurance

 

image.thumb.png.9010ca215c7af7ab8cd18c64d4694c45.png

 

Edited by Viking
  • Like 1
Posted
2 hours ago, This2ShallPass said:
  • During 2025 the company purchased 1,006,535 subordinate voting shares for cancellation at a cost of $1,625.2 million or $1,614.69 per share.
  • At December 31, 2025 there were 20,856,086 common shares effectively outstanding, representing a decrease of 3.7% from the 21,668,466 common shares effectively outstanding at December 31, 2024.

Repurchased 1006k shares but shares effectively outstanding (is this taking treasury stock into account?) down only by 812k. Is the remaining 194k yearly dilution due to stock comp? At 1% seems high.

 

 

 

 


I wouldn’t think of it as 1% dilution because they buy all of the shares contemporaneously with the grant. They could give them extra cash but instead they buy shares and stick them in treasury. 

Posted
6 hours ago, gfp said:

https://www.globenewswire.com/news-release/2026/02/19/3241605/0/en/Fairfax-Financial-Holdings-Limited-Financial-Results-For-The-Year-Ended-December-31-2025.html

 

PDF of press release is available now:

https://www.fairfax.ca/wp-content/uploads/2026/02/02_February_19_2026-FFH-2025-Q4-Press-Release-Final.pdf

 

 

  • At December 31, 2025 there were 20,856,086 common shares effectively outstanding, representing a decrease of 3.7% from the 21,668,466 common shares effectively outstanding at December 31, 2024.

 

Subsequent to year end:

"

  • The company has purchased 130,573 of its subordinate voting shares for cancellation at an aggregate cost of $220.0 million or $1,684.70 per share."


A question for the accounting folks. I noticed that net underwritten premiums grew 3.9% to $26.3B(about 1B)whereas float grew by 11.2%($35.4B-->39.3B) almost $4B. 
Is that a function of them locking in longer term insurance contracts or how exactly would that sized discrepancy arise? 

Posted
44 minutes ago, Txvestor said:


A question for the accounting folks. I noticed that net underwritten premiums grew 3.9% to $26.3B(about 1B)whereas float grew by 11.2%($35.4B-->39.3B) almost $4B. 
Is that a function of them locking in longer term insurance contracts or how exactly would that sized discrepancy arise? 

 

Yes, as well as gains on investment within the float.  Cheers!

Posted
54 minutes ago, Parsad said:

Yes, as well as gains on investment within the float.  Cheers


Yes that’s the magic of compounding and investing well. (And a function of investment leverage inherent in the business model).

 

great quarter again!

Posted (edited)
9 hours ago, backtothebeach said:

Book value per basic share at December 31, 2025 was $1,260.19.

 

So 1.35 PBV. Excess of fair value of 3.1 B adjusted for recent 18 percent tax rate is ~120 USD, so adjusted BV is ~1380 USD and adjusted PBV at 2025 year end ~1.23 PBV. Adding ~15 percent growth for 2026 would lead to ~1.07 adjusted PVB.

 

Edited by UK
Posted
6 hours ago, Parsad said:

 

Yes, as well as gains on investment within the float.  Cheers!

What??

 

gains on investments “within the float” don’t increase the liability!

 

float is a liability!  
 

 

Posted
7 hours ago, Txvestor said:


A question for the accounting folks. I noticed that net underwritten premiums grew 3.9% to $26.3B(about 1B)whereas float grew by 11.2%($35.4B-->39.3B) almost $4B. 
Is that a function of them locking in longer term insurance contracts or how exactly would that sized discrepancy arise? 

 

There are few factors.  "Mix" toward "long tail" lines - which makes sense if property pricing took a dive but casualty, professional liability, workers comp, and longer tail reinsurance is still well priced.  Also, the reported float value fluctuates with changes in the discount rate.  If interest rates decrease during a period (which they did) the value of the liability on the books increases.  We usually think of this as being offset by gains on the bond portfolio but if you single out just the float liability it shrinks or grows in response to changes in the discount rate applied under IFRS.

 

I would also say that they are slightly increasing the amount of their written premium that they retain - that they don't lay off at other reinsurance companies.  And since they are so international and float lives in a bunch of different jurisdictions there could also be currency fluctuations that show up in the USD calculation of float.

 

 

Posted

I noticed that Fairfax had a negative reserve development from runoff of $300M with most of this occurring in Q4.  That offset the positive Q4 reserve development of $258M for insurance.  Looking at the prior 3 years this seems to be variable but not out of the norm with 2 of the prior 3 year having a run-off of >$200M.  Is this something that we can generally expect to grow with the insurance business?

 

  • Life insurance and Run-off operations reported an operating loss of $213.7 million compared to an operating loss of $92.1 million in 2024, principally reflecting higher net adverse prior year reserve development at Run-off of $298.5 million in 2025 (2024 – $221.1 million) on an undiscounted basis, primarily related to latent hazard claims.
Posted
Just now, MMM20 said:

I could’ve sworn they have a webcast. Anyone have a link?

 

Call the phone number The call, consisting of a presentation by the company followed by a question period, may be accessed at 1 (800) 369-2143 (Canada and U.S.) or 1 (312) 470-0063 (International) with the passcode “FAIRFAX”.

Posted
5 minutes ago, Junior R said:

using app Quartr


Yeah I don’t see the livestream on there this time. Oh well, calling in 

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