Fairfax Financial revealed that by 2025, all its major insurance and reinsurance divisions will have a combined ratio of less than 100%, with a combined ratio of 93% and record underwriting profits of $1.8 billion.
Fairfax Chairman and CEO Prem Watsa hailed 2025 as the strongest year in the company’s history, with net profit of $4.8 billion.
This performance was driven by the aforementioned record underwriting profits, strong interest and dividend income, continued strong contributions from associates and non-insurance businesses, and substantial net investment income.
Fairfax disclosed that full-year gross premiums in 2025 were US$33.63 billion, up from US$32.83 billion in 2024, while net premiums increased from US$25.61 billion to US$26.63 billion.
Full-year insurance net income increased to US$26.07 billion, compared with US$24.87 billion in the same period last year.
Premiums for Fairfax’s property and casualty insurance and reinsurance business alone increased 3.9% to a record $26.3 billion, while gross premiums increased 2.3%.
This growth was reported to be broad-based across most operating companies, driven primarily by continued new business in the reinsurance and casualty sectors, as well as modest growth in select key areas.
In 2025, Fairfax’s property and casualty insurance and reinsurance businesses had a combined undiscounted combined ratio of 93%, adjusted operating income of $4.6 billion, and operating income including discount gains of $5.9 billion.
Watsa concluded: “Our investment performance was also strong, generating $3.2 billion in net investment income, consisting primarily of $3.1 billion in common equity net income and $400 million in debt net income, as well as a record $2.6 billion in interest and dividend income.”
