TORONTO, Feb. 19, 2026 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited (TSX:FFH) announces 2025 fiscal year net earnings of $4,772.4 million ($213.78 net earnings per diluted share after payment of preferred share dividends) compared to fiscal year 2024 net earnings of $3,874.9 million ($160.56 net earnings per diluted share after payment of preferred share dividends). Book value per basic share at December 31, 2025 was $1,260.19 compared to $1,059.60 at December 31, 2024 (an increase of 20.5% adjusted for the $15 per common share dividend paid in the first quarter of 2025).
"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. All of our major insurance and reinsurance segments achieved combined ratios below 100% for a consolidated combined ratio of 93.0% and record underwriting profit of $1.8 billion, on an undiscounted basis. Our property and casualty insurance and reinsurance operations achieved adjusted operating income of $4.6 billion and operating income of $5.9 billion including the benefit of discounting, net of a risk adjustment on claims. Gross premiums written grew by 2.3% or $0.8 billion to $33.3 billion and net premiums written grew by 3.9%.
"Our investment performance was also outstanding, producing net gains on investments of $3.2 billion, principally comprising net gains on common stocks of $3.1 billion and on bonds of $0.4 billion and record interest and dividend income of $2.6 billion.
"During the year we purchased 1,006,535 subordinate voting shares for cancellation for cash consideration of $1.6 billion, or $1,615 per share", said Prem Watsa, Chairman and Chief Executive Officer.
The table below presents the sources of the company's net earnings in a segment reporting format which the company has consistently used as it believes it assists in understanding Fairfax:
Fourth quarter
Year ended December 31,
2025
2024
2025
2024
($ millions)
Gross premiums written
7,713.7
7,548.7
33,626.8
32,825.4
Net premiums written
5,901.0
5,923.0
26,625.0
25,607.4
Net insurance revenue
6,698.9
6,329.3
26,072.9
24,866.4
Sources of net earnings
Operating income - Property and Casualty Insurance and Reinsurance:
Insurance service result:
North American Insurers
342.2
301.2
1,128.9
1,101.1
Global Insurers and Reinsurers
785.3
1,026.1
2,413.4
3,037.4
International Insurers and Reinsurers
154.9
144.1
608.8
463.6
Insurance service result
1,282.4
1,471.4
4,151.1
4,602.1
Other insurance operating expenses
(262.6
)
(292.1
)
(1,043.1
)
(1,038.1
)
Interest and dividends
559.3
632.8
2,241.5
2,224.6
Share of profit of associates
159.3
236.7
571.7
745.1
Operating income - Property and Casualty Insurance and Reinsurance
1,738.4
2,048.8
5,921.2
6,533.7
Operating loss - Life insurance and Run-off
(255.7
)
(108.8
)
(213.7
)
(92.1
)
Operating income - Non-insurance companies
101.1
150.1
397.4
241.4
Net finance income (expense) from insurance contracts and reinsurance contract assets held
(317.9
)
203.4
(1,836.8
)
(1,279.9
)
Net gains (losses) on investments
717.1
(403.2
)
3,151.4
1,067.2
Interest expense
(211.0
)
(172.7
)
(821.9
)
(649.0
)
Corporate overhead and other
(16.0
)
(40.4
)
(157.3
)
(182.8
)
Earnings before income taxes
1,756.0
1,677.2
6,440.3
5,638.5
Provision for income taxes
(272.8
)
(359.3
)
(1,156.5
)
(1,375.6
)
Net earnings
1,483.2
1,317.9
5,283.8
4,262.9
Attributable to:
Shareholders of Fairfax
1,238.3
1,152.2
4,772.4
3,874.9
Non-controlling interests
244.9
165.7
511.4
388.0
1,483.2
1,317.9
5,283.8
4,262.9
The table below presents the insurance service result for the property and casualty insurance and reinsurance operations reconciled to underwriting profit, a key performance measure used by the company and the property and casualty industry in which it operates. The reconciling adjustments are principally (i) other insurance operating expenses, as presented in the consolidated statement of earnings, (ii) the effects of discounting losses and ceded losses on claims recorded in the period and (iii) the effects of changes in the risk adjustment, the latter two of which are included in insurance service expenses and recoveries of insurance service expenses in the consolidated statement of earnings.
Fourth quarter
Year ended December 31,
Property and Casualty Insurance and Reinsurance
2025
2024
2025
2024
($ millions)
Insurance service result
1,282.4
1,471.4
4,151.1
4,602.1
Other insurance operating expenses
(262.6
)
(292.1
)
(1,043.1
)
(1,038.1
)
Discounting of losses and ceded losses on claims recorded in the period
(369.9
)
(399.6
)
(1,621.6
)
(1,667.5
)
Changes in the risk adjustment and other
102.6
(121.4
)
330.2
(105.1
)
Underwriting profit
752.5
658.3
1,816.6
1,791.4
Interest and dividends
559.3
632.8
2,241.5
2,224.6
Share of profit of associates
159.3
236.7
571.7
745.1
Adjusted operating income
1,471.1
1,527.8
4,629.8
4,761.1
Net Earnings
Highlights for fiscal year 2025 (with comparisons to fiscal year 2024 except as otherwise noted) include the following:
Net premiums written by the property and casualty insurance and reinsurance operations increased by 3.9% to a record $26.3 billion from $25.3 billion, while gross premiums written increased by 2.3%, reflecting growth at most operating companies, with the majority of the growth due to continued new business across reinsurance and casualty lines and modest rate increases in certain key segments.
The consolidated undiscounted combined ratio of the property and casualty insurance and reinsurance operations was 93.0%, producing record underwriting profit of $1,816.6 million, compared to an undiscounted combined ratio of 92.7% and underwriting profit of $1,791.4 million in 2024. The increase reflected growth in business volumes and higher net favourable prior year reserve development of $751.5 million, or 2.9 combined ratio points (2024 - $593.6 million or 2.4 combined ratio points), partially offset by increased current period catastrophe losses of $1,242.1 million, or 4.8 combined ratio points (2024 - $1,099.3 million, or 4.5 combined ratio points).
Adjusted operating income (which excludes the benefit of discounting, net of a risk adjustment on claims) of the property and casualty insurance and reinsurance operations modestly decreased by 2.8% to $4,629.8 million from $4,761.1 million, reflecting decreased share of profit of associates, partially offset by increased underwriting profit and interest and dividends.
The consolidated statement of earnings included a net loss of $58.5 million (2024, a net loss of $529.9 million) reflecting the effects of decreases in discount rates during the year, which was comprised of a net loss on insurance contracts and reinsurance contracts held of $443.9 million, partially offset by net gains on bonds of $385.4 million. Of the $58.5 million net loss in 2025, a net benefit of $8.7 million was incurred in the fourth quarter (2024, a net loss of $437.7 million).
Float of the property and casualty insurance and reinsurance operations increased by 11.2% to $39.3 billion at December 31, 2025 from $35.4 billion at December 31, 2024.
Life insurance and Run-off operations reported an operating loss of $213.7 million compared to an operating loss of $92.1 million in 2024, principally reflecting higher net adverse prior year reserve development at Run-off of $298.5 million in 2025 (2024 - $221.1 million) on an undiscounted basis, primarily related to latent hazard claims.
Consolidated interest and dividends increased from $2,511.9 million to $2,574.0 million of which $2,241.5 million (2024 - $2,224.6 million) was earned by the investment portfolios of the property and casualty insurance and reinsurance operations. At December 31, 2025 the company's insurance and reinsurance companies held portfolio investments of $70.0 billion (excluding Fairfax India's portfolio of $2.1 billion), of which $9.0 billion was in cash and short term investments representing 12.8% of those portfolio investments.
Consolidated share of profit of associates of $816.1 million (comprised of $571.7 million earned by the property and casualty insurance and reinsurance operations investment portfolios), principally reflected share of profit of $474.1 million from Eurobank, $286.9 million from Poseidon (formerly Atlas), $55.1 million from Digit and $52.5 million from EXCO, partially offset by share of loss of $64.7 million from Waterous Energy Fund III. Consolidated share of profit of associates of $956.3 million in 2024 included $57.0 million from Peak Achievement, which was consolidated on December 20, 2024.
Net gains on investments of $3,151.4 million (net gains on investments of $717.1 million in the fourth quarter) consisted of the following:
Fourth quarter of 2025
($ millions)
Realized gains (losses)
Unrealized gains (losses)
Net gains (losses)
Net gains (losses) on:
Equity exposures
416.3
529.3
945.6
Bonds
(20.4
)
(13.1
)
(33.5
)
Other
(14.8
)
(180.2
)
(195.0
)
381.1
336.0
717.1
Year ended December 31, 2025
($ millions)
Realized gains (losses)
Unrealized gains
Net gains (losses)
Net gains (losses) on:
Equity exposures
1,033.3
2,016.8
3,050.1
Bonds
(233.3
)
618.7
385.4
Other
(436.6
)
152.5
(284.1
)
363.4
2,788.0
3,151.4
Net gains on equity exposures of $3,050.1 million in 2025 was primarily comprised of net gains on common stocks of $1,491.2 million and net gains of $840.6 million on the company's continued holdings of equity total return swaps on 1,760,355 Fairfax subordinate voting shares with an original notional amount of $664.0 million (Cdn$846.1 million) or $377.19 (Cdn$480.62) per share. Net gains on bonds of $385.4 million primarily reflected net unrealized gains on U.S. treasuries, principally due to the decrease in interest rates during 2025. Net losses on other of $284.1 million principally reflected net losses of $439.7 million due to fluctuations in foreign currency exchange rates on the company's investment portfolio. Conversely, associates and subsidiaries with foreign-denominated functional currencies experienced foreign currency translation gains of $305.8 million that were recorded in other comprehensive income.
The company's fixed income portfolio remains conservatively positioned with effectively 75% of the fixed income portfolio invested in government bonds, 14% in high quality corporate bonds, primarily short-dated, and 11% in first mortgage loans.
The non-insurance companies reported increased operating income of $397.4 million compared to $241.4 million in 2024 primarily reflecting the consolidation of Peak Achievement on December 20, 2024 and the acquisition of Sleep Country on October 1, 2024.
Interest expense of $821.9 million (inclusive of $73.9 million on leases) was primarily comprised (other than leases) of $524.7 million incurred on borrowings by the holding company and the insurance and reinsurance companies and $223.3 million incurred on borrowings by the non-insurance companies (which are non-recourse to the holding company).
Provision for income taxes of $1,156.5 million with an effective tax rate of 18.0% decreased from $1,375.6 million with an effective tax rate of 24.4% in 2024, principally reflecting higher benefit from the tax rate differential on income and losses outside Canada and higher non-taxable investment income.
Other Key Financial Highlights
At December 31, 2025 the holding company held $2.7 billion of cash, marketable securities and investments, and an additional $2.2 billion, at fair value, of investments in associates and consolidated non-insurance companies.
The excess of fair value over carrying value of investments in non-insurance associates and market traded consolidated non-insurance subsidiaries increased to $3.1 billion at December 31, 2025 from $1.5 billion at December 31, 2024, with $1.4 billion of that increase related to an increase in the publicly traded market price of Eurobank.
During 2025 the company redeemed all of its Series E, F, G, H, I, J and M preferred shares with an aggregate carrying value of $876.5 million for $689.4 million (Cdn$25.00 per share) and recognized a gain of $187.1 million in net changes in capitalization in the consolidated statement of changes in equity.
Pursuant to the company's previously announced proposed sale of its Eurolife Life Operations to Eurobank, at December 31, 2025 the company had classified assets of $3.4 billion and liabilities of $3.6 billion related to the Eurolife Life Operations as held for sale in its consolidated balance sheet. The current estimated pre-tax gain on closing is approximately $350 million, which will be affected prior to closing by market value changes in the investment portfolio of the Eurolife Life Operations and by the company's expected purchase of certain investments in that portfolio.
The company's total debt to total capital ratio, excluding non-insurance companies increased to 26.2% at December 31, 2025 from 24.8% at December 31, 2024, primarily reflecting issuances of unsecured senior notes and redemptions of preferred shares, partially offset by increased common shareholders' equity.
During 2025 the company purchased 1,006,535 subordinate voting shares for cancellation at a cost of $1,625.2 million or $1,614.69 per share.
At December 31, 2025 there were 20,856,086 common shares effectively outstanding, representing a decrease of 3.7% from the 21,668,466 common shares effectively outstanding at December 31, 2024.
Subsequent to December 31, 2025
On February 5, 2026 AGT filed an amended and restated preliminary prospectus with Canadian securities regulatory authorities for a proposed Cdn$460 million initial public offering and secondary offering of its common shares, consisting of a Cdn$425 million treasury issuance and a Cdn$35 million secondary sale, with an expected price range of Cdn$26 to Cdn$30 per common share. Both Fairfax and AGT's CEO are not selling any common shares in the offering. Subsequent to AGT's initial public offering, the company expects to have, directly or indirectly, an equity interest in AGT of approximately 51% to 53%.
On February 16, 2026 the company and Kennedy-Wilson Holdings, Inc. ("Kennedy Wilson") entered into a definitive merger agreement pursuant to which Kennedy Wilson will be acquired, in an all cash-transaction, by a consortium led by William McMorrow, Chairman and Chief Executive Officer of Kennedy Wilson, and certain other senior executives of Kennedy Wilson, together with the company (collectively, the "Consortium"). Under the merger agreement, the Consortium will acquire all outstanding common shares of Kennedy Wilson not already owned by members of the Consortium for $10.90 per share in cash (the "Transaction"). Concurrent with the merger agreement, the company also committed to provide the Consortium with funding of up to $1.65 billion, principally to fund the Transaction's cash purchase price. The Transaction is subject to customary closing conditions, including shareholder approvals, and is expected to close in the second quarter of 2026.
The company has purchased 130,573 of its subordinate voting shares for cancellation at an aggregate cost of $220.0 million or $1,684.70 per share.
Consolidated balance sheet, earnings and comprehensive income information, together with segmented premium and combined ratio, prior year reserve development and catastrophe loss information, follow and form part of this news release.
As previously announced, Fairfax will hold a conference call to discuss its 2025 year-end results at 8:30 a.m. Eastern time on Friday February 20, 2026. The call, consisting of a presentation by the company followed by a question period, may be accessed at 1 (800) 369-2143 (Canada or U.S.) or 1 (312) 470-0063 (International) with the passcode "FAIRFAX". A replay of the call will be available from shortly after the termination of the call until 5:00 p.m. Eastern time on Friday, March 20, 2026. The replay may be accessed at 1 (866) 360-3309 (Canada or U.S.) or 1 (203) 369-0164 (International).
Fairfax Financial Holdings Limited is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.
For further information, contact:
John Varnell
Vice President, Corporate Development
(416) 367-4941
Information onCONSOLIDATED BALANCE SHEETSas at December 31, 2025 and December 31, 2024(US$ millions except per share amounts)
December 31, 2025
December 31, 2024
Assets
Holding company cash and investments (including assets pledged for derivative obligations, $207.8; December 31, 2024, $193.6)
2,724.9
2,502.7
Insurance contract receivables
1,006.2
780.4
Portfolio investments
Subsidiary cash and short term investments (including restricted cash and cash equivalents, $640.4; December 31, 2024, $1,240.7)
8,979.2
7,620.5
Bonds (cost $39,655.2; December 31, 2024, $37,852.9)
39,988.8
37,390.3
Preferred stocks (cost $957.4; December 31, 2024, $944.6)
2,307.4
2,365.0
Common stocks (cost $7,926.0; December 31, 2024, $7,116.1)
9,204.0
7,464.2
Investments in associates (fair value $11,057.7; December 31, 2024, $8,144.8)
8,362.3
7,153.3
Derivatives and other invested assets (cost $1,312.7; December 31, 2024, $903.9)
1,764.3
1,159.7
Assets pledged for derivative obligations (cost $187.2; December 31, 2024, $154.8)
190.8
150.8
Fairfax India cash, portfolio investments and associates (fair value $3,685.1; December 31, 2024, $3,163.3)
2,125.0
1,916.6
72,921.8
65,220.4
Assets held for sale
3,445.9
—
Reinsurance contract assets held
11,251.0
10,682.6
Deferred income tax assets
367.1
325.0
Goodwill and intangible assets
8,339.4
8,278.2
Other assets
7,731.4
8,988.0
Total assets
107,787.7
96,777.3
Liabilities
Accounts payable and accrued liabilities
6,119.7
6,078.3
Derivative obligations
786.9
356.9
Liabilities associated with assets held for sale
3,638.1
—
Deferred income tax liabilities
1,946.7
1,714.0
Insurance contract payables
338.3
923.0
Insurance contract liabilities
50,441.0
47,602.2
Borrowings, holding company and insurance and reinsurance companies
10,455.7
8,858.2
Borrowings, non-insurance companies
3,187.2
2,895.5
Total liabilities
76,913.6
68,428.1
Equity
Common shareholders' equity
26,282.6
22,959.8
Preferred stock
231.7
1,108.2
Shareholders' equity attributable to shareholders of Fairfax
26,514.3
24,068.0
Non-controlling interests
4,359.8
4,281.2
