- Fairfax Financial’s EPS in the fourth quarter was $50.42, outperforming the estimated EPS of $38.11.
- The company’s net income reached $1.15 billion, surpassing the estimated $966.5 million.
- Pretax profit for the quarter was significantly higher at $1.68 billion, compared to an estimate of $1.17 billion.
- Gross written premiums amounted to $7.55 billion, with net premiums written at $5.92 billion.
- Book value per basic share was slightly below expectations, at $1,060 compared to an estimated $1,071.
- The firm reported net investment losses of $403.2 million, while insurance revenue stood at $7.74 billion.
- Fairfax Financial’s gross premiums written rose by 12.6% to $32.5 billion, aided by the acquisition of Gulf Insurance in 2023, contributing an additional $2.7 billion in gross premiums written.
- Net gains on investments totaled $1.1 billion, mainly from net gains on common stocks of $1.9 billion, partially offset by $0.7 billion in mark to market net losses on bonds.
- Annual interest and dividend income increased to $2.5 billion.
- The book value per share included a comprehensive net loss of $477 million, equivalent to $22 per share, primarily due to unrealized foreign currency losses affected by the U.S. dollar’s appreciation.
- Investment community sentiment shows 6 buy recommendations, no holds, and 1 sell.
A look at Fairfax Financial Holdings Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Fairfax Financial Holdings Ltd, a holding company primarily involved in property and casualty insurance and reinsurance, as well as investment management, has garnered mixed Smart Scores reflecting its diverse outlook. While scoring high in momentum, indicating strong market performance, Fairfax falls short in dividend and growth scores. This suggests potential challenges in dividend payouts and growth opportunities for investors. However, with solid scores in value and resilience, Fairfax demonstrates a robust financial foundation and a steady outlook amidst fluctuations in the market.
On a broader scale, Fairfax Financial Holdings Ltd maintains a strategic focus on achieving a high return on invested capital and enhancing long-term shareholder value by combining disciplined underwriting with astute asset investments. With a balanced approach of managing risks and seeking growth opportunities, Fairfax positions itself as a resilient player in the insurance and reinsurance sector, aiming to deliver above-average returns for its stakeholders over the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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