Fairfax Financial Holdings Limited’s property and casualty insurance and reinsurance companies produced solid underwriting results, reporting an undiscounted consolidated combined ratio of 92.5% and consolidated underwriting profit of $523.9 million.
This compares with an undiscounted combined ratio of 92.0% and underwriting profit of $540.3 million in the third quarter of 2025.
The underwriting results for the quarter reflected higher catastrophe losses at Northbridge from severe weather events across Canada, as well as higher attritional loss experience and underwriting expenses at Odyssey Group. These were partially offset by improved underwriting results at the other companies within the Global Insurers and Reinsurers reporting segment.
Fairfax’s P&C insurance and reinsurance operations generated total gross premiums written of $8.94 billion, a 9.3% increase from $8.18 billion.
This was driven by a 27.1% increase in business volumes in the International Insurers and Reinsurers reporting segment, with gross premiums written rising to $1.92 billion from $1.51 billion.
Of the gross premiums written, the Global Insurers and Reinsurers segment, consisting of Allied World, Odyssey Group, Brit and Ki, accounted for $4.46 billion, up 5.3% from $4.24 billion a year earlier.
Net premiums written by the P&C re/insurance operations amounted to $6.9 billion, a 5.4% increase from $6.56 billion.
This growth was driven by increased business volumes in the Global Insurers and Reinsurers reporting segment, where net premiums written rose to $3.68 billion from $3.5 billion, primarily driven by Brit and Allied World.
P&C insurance and reinsurance operations produced adjusted operating income of $1.38 billion, compared with $1.34 billion.
Fairfax reported total net earnings of $929.6 million, down from $1.15 billion in Q3 2025.
Prem Watsa, Chairman and Chief Executive Officer of Fairfax, said, “In the third quarter of 2026 our property and casualty insurance and reinsurance operations produced adjusted operating income of $1,375.0 million compared with $1,343.2 million in the third quarter of 2025, reflecting continued strong underwriting profit and interest and dividends, and increased share of profit of associates. Our property and casualty insurance and reinsurance companies produced solid underwriting results, reporting an undiscounted consolidated combined ratio of 92.5% and consolidated underwriting profit of $523.9 million, on an undiscounted basis. Gross premiums written increased by 9.3% reflecting growth across our property and casualty insurance and reinsurance companies primarily in our International Insurers and Reinsurers reporting segment, particularly at Gulf Insurance, while net premiums written increased by 5.4%, reflecting disciplined growth across all our reporting segments.
“Net losses on investments of $858.7 million in the third quarter of 2026 principally comprised mark-to-market losses on bonds of $827.7 million due to increased interest rates and unrealized losses on preferred shares of $257.9 million due primarily to unrealised losses on the company’s investment in Digit, partially offset by net gains on equity exposures of $176.9 million and foreign exchange of $38.6 million. This compared to net gains on investments of $426.2 million in the third quarter of 2025.
“We remain focused on being soundly financed, ending the third quarter with approximately $1.9 billion of cash and investments in the holding company, an additional $2.4 billion, at fair value, of investments in associates and consolidated non-insurance companies owned by the holding company, and our $2.0 billion revolving credit facility undrawn.
“As discussed during our conference call on October 15, 2026 we are very excited to be selected by the Government of India to be the purchaser of the Government’s interest in IDBI Bank. This transaction represents a once in a lifetime opportunity to purchase a majority interest in a bank in one of the world’s fastest growing economies and combine it with a successful and growing insurance company in Digit and an established provider of investment banking and wealth management services in IIFL Capital.”
