Fairfax Financial Holdings Limited’s property and casualty (P&C) insurance and reinsurance operations posted an adjusted operating income of USD 1.11 billion for Q2’26, up slightly from USD 1.13 billion in Q2’25, the same was USD 2.32 billion for H1’26, compared with USD 1.82 billion in H1’25.
This growth has been attributed to increased underwriting profit and interest and dividends, partially offset by lower results from associates.
There was a dip in net earnings for the second quarter of 2026 to USD 1.56 billion, compared to USD 1.6 billion in Q2’25. The same trend followed in net earnings for the first half of 2026 at USD 2.29 billion, compared to USD 2.55 billion in H1’25.
For the quarter, gross premiums written (GWP) increased by 4.1% to USD 9.63 billion, reflecting growth across the P&C insurance and reinsurance operations, led by the international insurers and reinsurers reporting segment.
Fairfax’s P&C insurance and reinsurance operations GWP rose to USD 5.08 billion in the quarter. Brit reported GWP of USD 947.4 million, Odyssey’s hit USD 1.8 billion, Ki’s USD 264.4 million, and Allied World’s was USD 2.07 billion.
Meanwhile, overall net premiums written (NPW) increased by 2.4% to USD 7.52 billion, reflecting growth in Fairfax’s global insurers and reinsurers reporting segment despite a more competitive pricing environment.
For the quarter, NPW for the P&C insurance and reinsurance operations saw an increase of 2.4% to USD 7.34 billion from USD 7.17 billion, primarily reflecting growth in new business despite a more competitive pricing environment in certain lines of business in the Global Insurers and Reinsurers, especially Brit, Fairfax Asia, and Fairfax Latin America.
Brit reported Q2’26 NPW of 795 million, Odyssey was USD 1.63 billion, Ki was USD 232 million, and Allied World was USD 1.39 billion.
The company’s P&C insurance and reinsurance underwriting profit rose to $458.6 million from $426.9 million in Q2’25, and the undiscounted combined ratio improved to 93.1% from 93.3% in the comparative quarter, primarily reflecting growth in business volumes.
In Q2’26, Fairfax’s Brit reported a combined ratio of 94.6%, Odyssey was 93.6%, Ki was 81.5%, and Allied World was 90.2%.
Prem Watsa, Chairman and Chief Executive Officer, commented, “In the second quarter of 2026, our property and casualty insurance and reinsurance operations produced adjusted operating income of $1,105.5 million compared with $1,130.0 million in the second quarter of 2025, reflecting increased underwriting profit and interest and dividends, partially offset by lower results from associates. Underwriting performance in the second quarter of 2026 remained strong, with our property and casualty insurance and reinsurance companies reporting a consolidated combined ratio of 93.1% and consolidated underwriting profit of $458.6 million, on an undiscounted basis.
“Gross premiums written increased by 4.1% reflecting growth across the property and casualty insurance and reinsurance operations, led by our International insurers and reinsurers reporting segment, and net premiums written increased by 2.4%, principally reflecting growth in our Global insurers and reinsurers reporting segment despite a more competitive pricing environment.
“Net gains on investments of $768.9 million in the second quarter of 2026 principally comprised net gains on equity exposures of $743.8 million, primarily reflecting a realized gain of $838.4 million on the sale of 23.1% of Poseidon, partially offset by mark-to-market losses on bonds of $122.1 million due to increased interest rates. This compared to net gains on investments of $952.0 million in the second quarter of 2025. During the quarter we purchased 680,307 of our subordinate voting shares for cancellation for cash consideration of $1,089.3 million, or $1,601 per share.”
