Fairfax Financial Holdings Reports Strong Financial Results for 2024

Fairfax Financial Holdings Limited has announced its financial results for the year ended December 31, 2024, showcasing impressive growth in net earnings and underwriting profits despite challenges in the investment landscape. The company reported a net income of $3.87 billion, reflecting a solid performance in its insurance and reinsurance operations.<\/p>

• Net Earnings<\/strong>: $3.87 billion, down from $4.38 billion in 2023.<\/li>
• Net Earnings Per Share<\/strong>: $160.56, compared to $173.24 in the previous year.<\/li>
• Record Underwriting Profit<\/strong>: $1.8 billion with a combined ratio of 92.7%.<\/li>
• Gross Premiums Written<\/strong>: Increased by 12.6% to $32.5 billion.<\/li>
• Investment Gains<\/strong>: Net gains on investments totaled $1.1 billion.<\/li><\/ul>

Fairfax Financial Holdings reported net earnings of $3.87 billion<\/strong> for the fiscal year 2024, translating to $160.56 per diluted share<\/strong> after preferred dividends. This marks a decrease from the previous year’s earnings of $4.38 billion<\/strong> or $173.24 per diluted share<\/strong>. Despite this decline, the company achieved a 14.5% increase<\/strong> in book value per basic share, reaching $1,059.60<\/strong>.<\/p>

The company achieved a record underwriting profit of $1.8 billion<\/strong> in 2024, with a consolidated combined ratio of 92.7%<\/strong>. This performance was bolstered by:<\/p>

• Strong Premium Growth<\/strong>: Gross premiums written rose by 12.6%<\/strong> to $32.5 billion<\/strong>, primarily due to the acquisition of Gulf Insurance.<\/li>
• Net Premiums Written<\/strong>: Increased by 11.6%<\/strong>, reflecting robust growth across various segments.<\/li><\/ul>

Fairfax reported net gains on investments<\/strong> of $1.1 billion<\/strong>, primarily driven by:<\/p>

• Common Stocks<\/strong>: Net gains of $1.9 billion<\/strong>.<\/li>
• Bonds<\/strong>: Marked losses of $0.7 billion<\/strong> due to market fluctuations.<\/li>
• Interest and Dividends<\/strong>: Increased to $2.5 billion<\/strong>, contributing to overall financial health.<\/li><\/ul>

However, the company faced a comprehensive income loss<\/strong> of $477 million<\/strong> related to unrealized foreign currency losses, attributed to the strengthening of the U.S. dollar.<\/p>

In 2024, Fairfax made significant strides in expanding its portfolio through strategic acquisitions:<\/p>

1. Gulf Insurance<\/strong>: Contributed $2.7 billion<\/strong> in gross premiums.<\/li>
2. Sleep Country Canada Holdings<\/strong>: Acquired for $880.6 million<\/strong>.<\/li>
3. Peak Achievement Athletics<\/strong>: Increased ownership to 100%<\/strong> for $765 million<\/strong>.<\/li><\/ol>

These acquisitions are expected to enhance Fairfax’s market position and drive future growth.<\/p>

Fairfax Financial Holdings Limited’s financial results for 2024 reflect a resilient performance in a challenging economic environment. With record underwriting profits and strategic acquisitions, the company is well-positioned for continued success in the insurance and reinsurance sectors. The upcoming conference call on February 14, 2025, will provide further insights into the company’s future strategies and outlook.<\/p>

• Fairfax Financial Holdings Limited: Financial Results for the Year Ended December 31, 2024<\/a>, Yahoo Finance.<\/li><\/ul>