| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 18.7% | - | - |
Fairfax Financial Holdings delivered record performance in 2025 with net income of $4.8 billion and book value per share increasing 21% to $1,260. The company's decentralized insurance operations generated record underwriting profit of $1.8 billion on $33 billion of gross premiums, benefiting from the hard market cycle. Investment returns of 9.3% were driven by gains in their equity portfolio, particularly Eurobank which has generated a 15% compound annual return since 2014. The company maintains a strong balance sheet with $40.8 billion in float and $2.7 billion in holding company cash. Fairfax bought back $1.6 billion in shares while maintaining its $15 dividend. Looking forward, management expects to sustain $5 billion in operating income annually and sees significant opportunities in India's growth story. The company warns of extreme valuations in U.S. markets while identifying opportunities globally. With intrinsic value well above book value, Fairfax targets 15% annual book value growth over time.
Fairfax operates a decentralized global insurance business generating substantial float for long-term value investing, with particular focus on India's transformation and quality companies trading below intrinsic value.
Fairfax expects to sustain consolidated operating income at $5 billion for the next four years, consisting of underwriting profit of $1.5 billion or more, interest and dividends of $2.5 billion, and income from associates of $1 billion. The company aims to grow book value at 15% per year over time and sees significant long-term potential in their investment portfolio.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Mar 6 2026 | 2026 Q1 | CLF, CVS, OXY, UA | Buybacks, Decentralization, energy, Float, India, insurance, Underwriting, value | - | Fairfax delivered record results with $4.8 billion net income and 21% book value growth. The decentralized insurance business generated $1.8 billion underwriting profit while investment gains drove 9.3% portfolio returns. Strong balance sheet supports $1.6 billion in buybacks. Management sees continued opportunities in India and quality global investments despite warning of extreme U.S. market valuations. |
| Dec 31 2024 | 2024 Q4 | ALS.TO, BB, BRMI.TO, CIB.CA, DXT.TO, EUROB.AT, FFH.TO, FFI.TO, FMCN.TO, JKHL.CO, KW, ORLA.TO, OXY, QUESSCORP.NS, TCIL.NS, ZZZ.TO | Decentralization, Float, India, insurance, Underwriting, value | - | Fairfax delivered 14.5% book value growth in 2024 through record $1.8 billion underwriting profits and strong investment returns. The decentralized insurance model with 26 companies generates sustainable $5 billion annual operating income. Global value investments from India growth to European banks offer significant upside, though management stays cautious on expensive U.S. markets. |
| Dec 31 2023 | 2023 Q4 | AAPL, ALS.TO, BB, BIAL.NS, CIBEG.CA, CSBB.NS, DIGIT.NS, EUROB.AT, FORAN.TO, IIFL.NS, JKHL.CM, KW, MSFT, MU, ORLA.TO, OXY, QUESS.NS, STLC.TO, TCIL.NS | global, growth, India, insurance, Investments, real estate, Underwriting, value | - | Fairfax delivered record results with $4.4 billion net earnings and 25% book value growth, transforming into a $32 billion premium global insurer. Record $1.5 billion underwriting profit and doubled interest income to $1.9 billion drive sustainable $4 billion annual operating income. Strong India exposure positions the firm for 7% GDP growth in the world's soon-to-be third-largest economy. |
| Dec 31 2022 | 2022 Q4 | FFH CN | - | - | |
| Dec 31 2021 | 2021 Q4 | FFH CN | - | - | |
| Dec 31 2020 | 2020 Q4 | FFH CN | - | - | |
| Dec 31 2019 | 2019 Q4 | FFH CN | - | - | |
| Dec 31 2018 | 2018 Q4 | FFH CN | - | - | |
| Dec 31 2017 | 2017 Q4 | FFH CN | - | - | |
| Dec 31 2016 | 2016 Q4 | FFH CN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
InsuranceFairfax operates a global property and casualty insurance business with $33 billion in gross premiums and record underwriting profit of $1.8 billion. The company has benefited from a hard market that began in 2019 but is now beginning to soften. All major insurance companies achieved combined ratios below 100% with strong reserve development. |
Property Casualty Underwriting Premiums Float |
IndiaIndia represents a major growth opportunity with the economy now fourth largest globally and expected to be third by 2030. Fairfax has invested $1.7 billion in India now valued at $4.3 billion, including investments through Fairfax India. The country's transformation under Prime Minister Modi includes GDP growth of 7.6% and significant infrastructure development. |
GDP Infrastructure Digital Demographics Modi | |
ValueFairfax emphasizes long-term value investing with a focus on buying quality companies at attractive prices. The company highlights that intrinsic value is way above book value now, with significant unrealized gains in their investment portfolio. They maintain a patient, contrarian approach to investing. |
Intrinsic Quality Patient Contrarian Long-term | |
BuybacksFairfax bought back 1.0 million shares at $1,615 per share for $1.6 billion in 2025, representing a hidden dividend of $78 per share for remaining shareholders. Share count has declined 24.8% since 2017 through buybacks, significantly enhancing per-share metrics. |
Repurchase Capital Per-share Hidden Dividend | |
DecentralizationFairfax operates under a decentralized structure with outstanding management executing disciplined underwriting. The company has over 275 profit centers globally, each focused on unique customers and geographies. This empowerment-focused approach prioritizes people over short-term cost savings. |
Empowerment Profit Centers Entrepreneurial Culture | |
EnergyFairfax has significant energy investments including partnerships with Waterous Energy Fund in Strathcona Resources and Greenfire Resources, EXCO Resources natural gas operations, and Orla Mining gold operations. These investments focus on long-life, low-decline assets with strong cash generation. |
Oil Gas Mining Resources Cash | |
| 2024 Q4 |
InsuranceRecord underwriting profits of $1.8 billion on record gross premiums of $33 billion, with combined ratio of 93%. The company operates 26 decentralized insurance companies globally with strong reserve redundancies averaging $0.5 billion per year over eight years. |
Underwriting Premiums Float Reinsurance Catastrophe |
IndiaSignificant investments across India including Fairfax India, Thomas Cook India, Digit Insurance, and Quess. Prime Minister Modi won historic third term with continued economic growth of 6-7% annually and remarkable digital infrastructure transformation benefiting hundreds of millions. |
Modi Digital Infrastructure Growth Transformation | |
DecentralizationCore operating philosophy emphasizing empowered local management across 26 insurance companies. Presidents average close to 20 years of service, enabling continuity, flexibility, and reduced acquisition leakage while maintaining the company's fair and friendly culture. |
Autonomy Presidents Culture Empowerment Continuity | |
ValueFocus on buying large amounts of future earnings for low prices, following mentors Phil Carret and John Templeton. Multiple investments trading below intrinsic value including Eurobank at 1x tangible book value and 6x earnings despite strong performance. |
Intrinsic Earnings Undervalued Patience Compounding | |
| 2023 Q4 |
IndiaPrime Minister Modi has taught the average Indian to dream. The Indian economy is expected to grow at 7% for the foreseeable future, the highest growth rate for a major economy. In the next four years, India is expected to be the third largest economy behind the U.S. and China. Fairfax has significant investments across India including Thomas Cook India, Fairfax India, Digit, Quess, and various portfolio companies through Fairfax India. |
India Growth Modi Economy Investments |
InsuranceFairfax has transformed itself to become one of the largest property and casualty companies in the world with $32 billion in gross written premium. The company posted a record underwriting profit of $1.5 billion with a combined ratio of 93%. All major insurance companies had combined ratios in the mid-90s or below despite absorbing catastrophe losses of $900 million. |
Insurance Underwriting Premium Combined Ratio Catastrophe | |
ValueFairfax follows a disciplined value investing approach, seeking to buy large amounts of future earnings for a low price. The company has built intrinsic value through organic growth in its insurance operations and careful investment selection. Book value per share has compounded at 18.9% annually since inception while maintaining a focus on long-term value creation. |
Value Intrinsic Value Book Value Compounding Long-term | |
GoldFairfax has investments in gold mining companies including Orla Mining and Foran Mining. Orla Mining had an outstanding year with the Camino Rojo open pit mine producing at capacity of approximately 120,000 ounces of gold per year at a cash cost of approximately $800 per ounce. The company continues to make progress in permitting its South Railroad mine in Nevada. |
Gold Mining Production Orla Foran | |
Real EstateFairfax has significant real estate investments through Kennedy Wilson partnerships and first mortgage construction loans. The company has $4.6 billion in first mortgages on mainly multi-family buildings with an average all-in yield of about 10% over approximately three years. Kennedy Wilson owns and manages 40,000 apartments in the U.S. |
Real Estate Mortgages Kennedy Wilson Multi-family Construction | |
TechnologyFairfax acknowledges the technology sector's dominance but remains cautious about valuations. The Magnificent Seven now account for 28% and technology 30% of the S&P 500, higher than the 26% at the dot-com peak. The company compares current conditions to the Nifty Fifty of the late 1960s and early 1970s, expressing skepticism about current valuations despite outstanding track records. |
Technology Valuations Magnificent Seven AI Skepticism |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| UA | We have established a significant position in Under Armour, Inc., the Baltimore-based athletic apparel and footwear company. While the business has faced operational challenges in recent years, we believe the brand remains powerful, differentiated, and globally relevant. We strongly support founder Kevin Plank, who returned as CEO in April 2024 after a four-year absence. To date, we have acquired 65 million shares – approximately 15% of the company – for $337 million at an average cost of $5.20 per share. |
| OXY | Occidental Petroleum 5.5 million shares, 1% ownership, carried at $41.11 per share with market value of $0.2 billion. |
| CVS | CVS Health 2.7 million shares, less than 1% ownership, carried at $79.35 per share with market value of $0.2 billion. |
| CLF | Cleveland Cliffs 14.9 million shares, 3% ownership, carried at $13.27 per share with market value of $0.2 billion. |
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