Fairfax Financial Holdings Limited has announced impressive financial results for the second quarter of 2025. The company reported net earnings of $1.44 billion, which translates to $61.61 per diluted share. This is a significant increase compared to $915.4 million, or $37.18 per diluted share, during the same period last year.
As of June 30, 2025, Fairfax’s book value per basic share reached $1,158.47, up from $1,059.60 at the end of 2024. This increase comes after the company paid a $15 per share dividend in the first quarter of 2025.
In its property and casualty insurance and reinsurance operations, Fairfax reported adjusted operating income of $1.13 billion for the quarter. When factoring in discounting and risk adjustments, the operating income rose to $1.45 billion. The combined ratio for these operations stood at 93.3%, indicating a healthy underwriting profit of $426.9 million before discounting. Gross premiums written increased by 2.6% to $9.18 billion, while net premiums written grew by 4.8% to $7.26 billion. The company attributed this growth to new business in reinsurance and casualty lines, along with higher retention rates.
Fairfax also saw improvements in its underwriting profit, which rose from $370.4 million in Q2 2024 to $426.9 million this quarter. The better combined ratio was supported by increased business volumes, favorable reserve developments from previous years, and lower catastrophe losses compared to last year.
On the investment side, Fairfax reported net investment gains of $952 million for the quarter, with $800.4 million coming from common stock holdings. The fixed income portfolio was primarily invested in U.S. treasury and government bonds, making up 70% of the total, while high-quality corporate bonds accounted for 19%. Net gains on bonds totaled $74.8 million, largely due to a drop in interest rates.
Interest and dividend income also saw a rise, totaling $666.3 million, compared to $614 million in the same quarter last year. As of June 30, 2025, Fairfax’s insurance and reinsurance subsidiaries held $67.8 billion in portfolio investments, including $10 billion in cash and short-term investments.
In terms of corporate developments, Fairfax’s non-insurance businesses reported operating income of $126 million, a significant increase from $25.2 million in Q2 2024. This growth was driven by the consolidation of Peak Achievement, the acquisition of Sleep Country, and increased income from Fairfax India.
During the quarter, Fairfax acquired a 33% stake in Albingia SA, a French property and casualty insurer, for $236.5 million. The company also completed a $900 million offering of unsecured senior notes and agreed to acquire all outstanding units of The Keg Royalties Income Fund not already owned for approximately $151 million.
At the end of the quarter, Fairfax’s holding company had over $3 billion in cash and marketable securities, along with $1.9 billion in investments in associates and non-insurance companies. The fair value of these investments exceeded their carrying value by $2.4 billion, thanks to the increased market value of the company’s investment in Eurobank.
Fairfax’s total debt to capital ratio, excluding non-insurance companies, was 25.9% as of June 30, 2025, up from 24.8% at the end of 2024. This increase was attributed to new debt issuance and the redemption of preferred shares, offset by higher common shareholders’ equity. The company also extended the maturity of its $2 billion unsecured revolving credit facility to July 16, 2030.
As of June 30, 2025, there were 21,591,832 common shares outstanding. Overall, Fairfax Financial’s strong performance reflects its effective strategy in both insurance and investment sectors, positioning the company for continued growth.