- Fairfax Financial’s earnings per share (EPS) for the first quarter of 2025 was $42.70, significantly exceeding the estimate of $26.29.
- Net income reached $945.7 million, surpassing the estimated $541.3 million.
- The company’s pretax profit stood at $1.17 billion, beating the anticipated amount of $889.3 million.
- Gross written premiums were recorded at $8.47 billion, while net premiums written amounted to $6.84 billion.
- Net investment gains for the quarter were $1.06 billion, contributing to strong financial performance.
- Book value per basic share was registered at $1,080, slightly higher than the expected $1,073.
- Insurance revenue was reported at $7.48 billion.
- The property and casualty insurance and reinsurance operations generated an adjusted operating income of $685.5 million, despite facing California wildfire losses of $692.1 million.
- The consolidated combined ratio for these operations was 98.5%, indicating operational efficiency despite catastrophe losses totaling $781.3 million.
- The company achieved an underwriting profit of $96.9 million on an undiscounted basis.
- There was a growth in gross and net premiums written by 5.0% and 8.4%, respectively, driven by new business and incremental rate increases.
- Market sentiment included six buy recommendations, no holds, and one sell recommendation.
A look at Fairfax Financial Holdings Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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
Based on the Smartkarma Smart Scores, Fairfax Financial Holdings Ltd has a positive long-term outlook. With strong scores in value, momentum, and resilience, the company is positioned well for sustained performance. Fairfax’s focus on achieving high returns on invested capital and building long-term shareholder value aligns with these scores, indicating a solid foundation for growth.
Despite having lower scores in dividend and growth, Fairfax’s strategic approach of combining disciplined underwriting with asset investment on a total return basis is likely to drive above-average returns over time. As a holding company engaged in insurance, reinsurance, and investment management, Fairfax Financial Holdings Ltd appears to be well-equipped to navigate market challenges and capitalize on opportunities for long-term success.
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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