Fairfax Financial Holdings Limited has announced its financial result for the third quarter of 2025, reporting net earnings of $1,151.7 million, increasing from the $1,030.8 million net earnings reported in the same period last year.
This quarter, the company’s gross premiums written (GPW) saw a slight rise, to $8,262.8 million from $8,302.2 million reported in Q3 2024, reflecting continued growth in new business across reinsurance and casualty lines and modest rate increases in certain key segments.
Property and casualty insurance and reinsurance GPW was $8,179.8 million in Q3 2025, compared to the $8,237.9 million seen in the same period last year.
The company reported $720.2 million in GPW from Brit, $1,592.6 million from Odyssey, $225.9 million from Ki, and $1,700.9 million from Allied World.
Net premiums written by the property and casualty insurance and reinsurance operations increased by 2.1% to $6,555.5 million from $6,420.4 million, primarily reflecting increased retentions in US casualty lines of business.
Brit saw $641.3 million in net premium written in Q3 2025, Odyssey $1,535.2 million, Ki $218.6 million, and Allied World $1,104.1 million.
Fairfax’s property and casualty insurance and reinsurance operations saw an increase in underwriting profit, reaching $540.3 million from $389.7 million in 2024.
This improvement was accompanied by a better undiscounted combined ratio, which moved from 93.9% in 2024 to 92.0%.
Key factors contributing to these positive results include decreased current period catastrophe losses of $150.0 million (2024 – $434.5 million) and growth in business volumes, partially offset by a modest decrease in net favourable prior year reserve development to $111.2 million (2024 – $130.5 million).
In Q3 2025, Fairfax’s Brit saw a 92.1 % combined ratio, Odyssey 91.2%, Ki 105.4%, and Allied World 88.9%.
Adjusted operating income (which excludes the impact of discounting, net of a risk adjustment on claims) of the property and casualty insurance and reinsurance operations increased to $1,343.2 million from $1,136.8 million.
According to Fairfax, this figure mainly reflects stronger underwriting performance, increased interest and dividends and a modest increase in share of profit of associates.
“Net gains on investments of $426.2 million in the quarter were principally comprised of net gains on common stocks of $524.6 million. As we have said in the past, we expect our common stock positions to perform well over the long term, but our net gains will fluctuate from quarter to quarter,” Watsa added.
He continued: “We announced the agreement to sell our 80.0% interest in Eurolife’s life insurance operations to Eurobank for approximately $940 million and concurrently will acquire a 45.0% equity interest in Eurobank’s Cyprus-based property and casualty insurance company, ERB Asfalistiki, for approximately $68 million.
“We are very pleased to be able to maintain the focus of our insurance operations on property and casualty insurance and reinsurance, while still benefitting from the continued success of the Eurolife life insurance business through our ownership stake in Eurobank.”
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