Fairfax Financial Holdings Limited issued C$650 million in senior notes, comprising C$400 million of 4.40% notes due 2036 and C$250 million of 5.10% notes due 2055. The 2036 notes were priced at C$99.968 per C$100 principal, while the 2055 notes were priced at C$99.485 per C$100 principal. The offering is expected to close around February 27 2026 and will be sold through a syndicate of Canadian dealers.
The debt issuance follows a record 2025 year for Fairfax, when net earnings rose to $4.8 billion, or $213.78 per diluted share, a 20.5% increase in book value per share. The company’s strong underwriting profit, interest and dividend income, and net gains on investments underpinned that performance. By raising capital in the current low‑interest environment, Fairfax can refinance existing debt at more favorable terms and extend its maturity profile, preserving the financial flexibility that supported its 2025 results.
Management indicated that the proceeds will be used to refinance, repay or redeem existing debt, pursue potential acquisitions, and support general corporate purposes. The company’s recent acquisition of Kennedy Wilson, a real‑estate investment firm, was financed in part by a $1.65 billion commitment, illustrating Fairfax’s strategy of using debt to fund growth opportunities. The long‑dated notes provide a stable funding base that aligns with the company’s long‑term investment horizon.
"2025 was the best year in our history with net earnings of $4.8 billion or $213.78 per diluted share, reflecting record underwriting profit and interest and dividends, continued strong contributions from our share of profit of associates and non‑insurance companies and very strong net gains on investments," management said.
The senior notes offering enhances Fairfax’s capital structure by adding low‑cost, long‑term debt that can be deployed across its insurance, reinsurance, and investment businesses. The additional liquidity positions the company to seize opportunistic acquisitions and support its disciplined underwriting and investment strategy, while maintaining a strong balance sheet and credit profile.
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