Fairfax Financial has revealed that all of its major insurance and reinsurance segments achieved combined ratios below 100% in 2025 for a consolidated combined ratio of 93% and record underwriting profit of $1.8 billion.
Prem Watsa, Chairman and Chief Executive Officer of Fairfax, hailed 2025 as the strongest year in the firm’s history, reporting net earnings of $4.8 billion.
The result was driven by the aforementioned record underwriting profit, robust interest and dividend income, sustained strong contributions from associates and non-insurance operations, and substantial net investment gains.
Fairfax disclosed full-year 2025 gross premiums written of $33.63 billion, up from $32.83 billion in 2024, while net premiums written increased to $26.63 billion from $25.61 billion.
Net insurance revenue for the year rose to $26.07 billion, compared with $24.87 billion a year earlier.
Premiums written by Fairfax’s property and casualty insurance and reinsurance operations alone rose 3.9% to a record $26.3 billion, while gross premiums written increased 2.3%.
This growth was reportedly broad-based across most operating companies, driven primarily by continued new business in reinsurance and casualty lines, along with modest rate increases in select key segments.
The consolidated undiscounted combined ratio of Fairfax’s property and casualty insurance and reinsurance operations in 2025 was 93%, with adjusted operating income of $4.6 billion and operating income of $5.9 billion, including the benefit of discounting.
“Our investment performance was also outstanding, producing net gains on investments of $3.2 billion, principally comprising net gains on common stocks of $3.1 billion and on bonds of $0.4 billion and record interest and dividend income of $2.6 billion,” Watsa concluded.
