Fairfax Financial reported a strong third quarter in 2025, with net earnings reaching $1.15 billion. This marks an improvement from $1.03 billion during the same period last year. The company’s success builds on a solid second quarter, when it posted $1.44 billion in net earnings.
The company’s book value per basic share increased significantly, rising to $1,203.65 as of September 30, 2025. This is up from $1,059.60 at the end of 2024, reflecting a 15.1% gain after accounting for a $15 dividend paid earlier in the year.
Fairfax’s property and casualty insurance and reinsurance business saw net premiums written rise by 2.1% to $6.56 billion. This growth was driven mainly by higher retention in U.S. casualty lines. When excluding Gulf Insurance, premiums grew by 3.1%, thanks to new business and modest rate increases. The segment’s underwriting profit jumped to $540.3 million, up from $389.7 million last year. The combined ratio improved to 92.0%, helped by fewer catastrophe losses and more business volume.
Other positive results included adjusted operating income for the property and casualty segment growing to $1.34 billion from $1.14 billion. This reflects stronger underwriting, more interest and dividend income, and a small rise in profit from associated companies.
Despite these gains, Fairfax did face a net loss of $307.7 million related to changes in discount rates. This included losses on insurance contracts and bond holdings. Still, interest and dividends across the company rose to $655.4 million, with most earned by the property and casualty units.
Investment portfolios within Fairfax’s insurance operations stood at $70.9 billion at quarter’s end, not counting $2.1 billion held by Fairfax India. The company’s share of profit from associates increased to $305 million, boosted by gains from Eurobank, Poseidon, and EXCO.
Prem Watsa, Fairfax’s chairman and CEO, highlighted the company’s focus on property and casualty insurance, alongside benefits from their stake in Eurolife through Eurobank. Overall, Fairfax Financial appears to be building on steady growth with solid results in both insurance operations and investments through the first nine months of 2025.