Fairfax Financial Holdings Limited has announced its financial result for the first quarter of 2026, reporting net earnings of $695.7 million, compared to the $945.7 million reported in the same period last year.
The company’s property and casualty (P&C) insurance and reinsurance operations produced adjusted operating income of $1,213.4 million, up significantly from $685.5 million in the first quarter of 2025.
This result reflects improved underwriting performance, increased share of profit of associates and increased interest and dividend income, Prem Watsa, Fairfax’s Chairman and Chief Executive Officer, noted.
Gross premiums written (GWP) increased by 4.1% to $8,809.3 million, and net premiums written by 4.2% to $8,474 million, both reflecting growth in Fairfax’s International insurance and reinsurance companies.
Fairfax’s P&C insurance and reinsurance operations GWP rose to $8,739.4 million in the quarter. Brit saw $810.5 million in GWP, Odyssey’s hit $1,524.1 million, Ki’s $227.6 million, and Allied World’s were $2,240.5 million.
Net premiums written for the P&C insurance and reinsurance operations saw an increase of 4.2%, rising from $6,774.6 million to $7,058.0 million.
This growth was mainly due to strong performance in the International Insurers and Reinsurers reporting segment, driven primarily by Gulf Insurance’s expansion in medical and motor lines through new business and rate hikes.
Moreover, the Global Insurers and Reinsurers segment contributed significantly, reflecting growth in key segments at Allied World and Brit.
Brit saw $627.8 million in net premium written in Q1 2026, Odyssey $1,465.4 million, Ki $181.2 million, and Allied World $1,740.5 million.
The company’s P&C insurance and reinsurance underwriting profit grew significantly in Q1 2025, rising to $381.6 million from $96.9 million in 2025.
According to Fairfax, this improvement was due to a better undiscounted combined ratio, which decrease to 94.1% from 98.5% in 2025, largely driven by lower current period catastrophe losses – $119.3 million versus $781.3 million in 2025, the latter mainly due to California wildfires – and business volume growth.
This was partially offset by less favourable prior year reserve development of $86.1 million in Q1 2026, which compares to the $219.1 million reported in the same period last year.
In Q1 2026, Fairfax’s Brit saw a 93 % combined ratio, Odyssey 91.1%, Ki 94.7%, and Allied World 93.4%.
CEO Watsa said: “Net losses on investments of $385.9 million in the first quarter of 2026 principally comprised mark‑to‑market losses on bonds of $363.9 million due to increased interest rates. This compared to net gains on investments of $1,056.1 million in the first quarter of 2025. As we have said in the past, we expect our investments to perform well over the long term, but our net gains will fluctuate from quarter to quarter.
“During the quarter we purchased 374,883 subordinate voting shares for cancellation for cash consideration of $631.3 million, or $1,684 per share.
“We expect to close two significant transactions in the second quarter of 2026 – the sale of 23.1% of Poseidon for approximately $1.9 billion for a pre-tax gain of approximately $837 million and the proposed sale of the Eurolife Life Operations to Eurobank for approximately $935 million for a pre-tax gain of approximately $350 million. We will retain ownership of 22.2% of Poseidon.”
