Fairfax Financial Holdings Ltd ( (FRFHF) ) has released its Q4 earnings. Here is a breakdown of the information Fairfax Financial Holdings Ltd presented to its investors.
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Fairfax Financial Holdings Limited is a Toronto-based holding company engaged in property and casualty insurance and reinsurance through its subsidiaries, coupled with investment management activities. In 2024, Fairfax reported net earnings of $3.87 billion, a decrease from the previous year’s $4.38 billion. Despite the dip in net earnings, the company achieved a record underwriting profit of $1.8 billion and increased its book value per share by 14.5%, reflecting strong performance in its core insurance operations.
The company’s property and casualty operations saw substantial growth, with gross premiums written rising by 12.6% to $32.5 billion, aided by the acquisition of Gulf Insurance. The combined ratio improved slightly to 92.7%, indicating enhanced efficiency in managing claims and expenses. Fairfax also reported a significant increase in interest and dividend income to $2.5 billion, bolstered by favorable investment returns, particularly from common stocks, despite some setbacks from bond market fluctuations.
Fairfax’s strategic moves in 2024 included the complete acquisition of Brit and the consolidation of Sleep Country Canada and Peak Achievement, expanding its footprint in non-insurance sectors. The company’s investment portfolio remains cautiously positioned, with a focus on government and high-quality corporate bonds. Despite experiencing unrealized foreign currency losses due to the strengthening U.S. dollar, Fairfax maintains a strong financial position with $2.5 billion in cash and marketable securities.
Looking ahead, Fairfax’s management is committed to maintaining a robust financial stance and leveraging strategic acquisitions to drive growth. While challenges such as currency fluctuations and market volatility persist, the company remains focused on enhancing shareholder value through disciplined financial management and strategic investments.
