Fairfax Financial Holdings Limited reported fourth‑quarter 2025 earnings that surpassed analyst expectations, delivering earnings per share of $57.57 and total revenue of $8.110 billion. The results beat consensus estimates of $48.68 (and $50.19) per share and $6.557 billion (and $6.31 billion) in revenue, underscoring the company’s disciplined underwriting and investment strategy.
Earnings per share rose from $50.42 in Q4 2024 and $52.04 in Q3 2025, reflecting a 14.5% year‑over‑year increase. The beat of $6.89 (or $7.38) per share—an 11.9% (or 14.7%) lift over the lower consensus estimate—was driven by a combination of higher underwriting profit, a favorable combined ratio of 92.7% for 2024, and robust investment income that added to net earnings.
Revenue climbed 7.5% from $7.55 billion in Q4 2024 to $8.110 billion, a jump that exceeded the $1.5 billion forecast gap. The growth was supported by a 9% rise in net premiums written, which increased to $26.63 billion from $25.61 billion in 2024, and by higher interest and dividend income from the company’s investment portfolio.
Underwriting performance remained strong, with a combined ratio of 92.0% in Q3 2025 and 92.7% for the full 2024 year, indicating efficient risk‑selection and pricing. The company’s investment strategy continued to generate attractive returns, contributing to the earnings beat. Fairfax also repurchased approximately 1.0 million subordinate voting shares for $1.6 billion in 2025, signaling confidence in its valuation and supporting shareholder value.
Strategic transactions added to the company’s balance sheet strength: the sale of 80% of Eurolife’s life‑insurance operations for $940 million and the acquisition of 45% of ERB Asfalistiki for $68 million, expected to close in Q1 2026 with an estimated pre‑tax gain of $250 million. Book value per share rose to $1,204 at September 30 2025 and to $1,260.19 for the full 2025 year, a 20.5% increase that reflects disciplined capital allocation and investment performance.
While the company did not issue new forward guidance, management expressed confidence in sustaining profitability amid favorable pricing conditions in the property‑and‑casualty reinsurance market and higher investment yields. The results reinforce Fairfax’s long‑term strategy of leveraging underwriting float to fuel value‑creating investments.
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