Fairfax Financial Holdings Limited

Fairfax Financial Holdings Limited

FRFHF

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Market Cap$32.15B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Fairfax Financial Holdings LimitedFairfax Financial Holdings Limited7.10.97%18%0.90.5

Earnings Call Q1 2026

May 1, 2026 - AI Summary

Earnings momentum strong; investment results volatile (key “good but with caveats” point) - Operating income (insurance & reinsurance adjusted, undiscounted, before risk margin): $1.2B in Q1’26 vs $686M in Q1’25 (+~$514M YoY). - Components: Underwriting income $382M, interest & dividend income $561M, profits of associates $271M (all “strong and up significantly” YoY). - Net earnings: $696M in Q1’26. - But: net losses on investments of $386M driven mainly by mark-to-market bond losses (notably U.S. treasuries from rising rates). This is contrasted with net gains of $1.1B in Q1’25 → ~$1.5B quarter-over-quarter swing (a major driver of reported earnings volatility). - Management emphasis: long-term investment gains matter, but quarter-to-quarter fluctuations are expected.
Underwriting performance improved notably; combined ratio meaningful swing due to catastrophes - Group combined ratio: 94.1% in Q1’26 vs 98.5% in Q1’25; underwriting income $382M vs $97M. - Primary driver: lower catastrophe losses with ~1.8 combined ratio points vs 12.7 points in Q1’25 (mainly California wildfire losses). - Favorable reserve development: $86M benefit (~1.3 points) in Q1’26 (each major segment positive). - Segment highlights: Global insurers & reinsurers combined 92.5% (Odyssey 91.1%, Brit 93%, Allied World 93.4%, Ki 94.7% incl. 3.8 pts separation costs). North America combined about 96%; International 95.8%.
Book value slightly up; capital actions active (dividend + share repurchases) - Book value per share: $1,250 at March 31, 2026 → +0.5% vs year-end 2025, adjusted for the $15 dividend. - Dividend: paid $329M during the quarter (implied $15 per share). - Buyback/cancellation: 375,000 shares for cancellation for $631M during Q1’26 (a continuing support to per-share metrics). - Balance sheet / equity: consolidated common shareholders’ equity decreased to $25.8B (to the extent driven by buybacks, dividends, and OCI effects).

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$1524.08

Current Fair Value

2.6% downside

Overvalued by 2.6% based on the discounted cash flow analysis.

Share Statistics

Market cap$32.15 Billion
Enterprise Value$40.90 Billion
Dividend Yield$15.00 (0.97%)
Earnings per Share$234.1
Beta0.46
Outstanding Shares20,778,000

Return

Return on Equity17.71%ROE
Return on Assets4.29%
Return on Invested Capital7.29%

Valuation & Multiples

P/E Ratio7.15P/E Ratio
PEG-27.03PEG
Price to Sales0.87Price to Sales
Price to Book Ratio1.06Price to Book Ratio
Enterprise Value to Revenue1.09
Enterprise Value to EBIT5.69
Enterprise Value to Net Income8
Total Debt to Enterprise0.34
Debt to Equity0.54Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 7, 2026
EPS Estimate
$38.35
Average shareholder expectation
Revenue Estimate
$8.62 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 30, 2026
EPS Estimate
$79.02
Average shareholder expectation
Revenue Estimate
$9.34 B
Average shareholder expectation

Institutional Sentiment (Put/Call)

No data available for the latest quarter.

Institutional Ownership

No data available for the latest quarter.

ESG Score

No data

About Fairfax Financial Holdings Ltd.

CEO: Vivian Prem Watsa

Fairfax Financial Holdings Ltd. engages in the provision of property and casualty insurance, and reinsurance and investment management. It operates through the following segments: Insurance and Reinsurance, Runoff, and Other. The Insuran...

Relevant Senate Committees

Joint Committee on Taxation

This committee provides critical analysis and revenue estimates for all tax legislation, directly influencing the final corporate tax structures and policies that significantly impact FRFHF's profitability and capital management.

Finance

As the most powerful economic committee, its control over taxation and trade policy directly impacts FRFHF's corporate profitability, investment decisions, global operations, and the overall economic environment.

Agriculture, Nutrition, and Forestry

The committee's oversight of the CFTC and derivatives markets is highly relevant for FRFHF's investment management and hedging strategies. Its role in defining cryptocurrencies as digital commodities could also impact future investment opportunities.

Banking, Housing, and Urban Affairs

This committee is a primary regulator of the entire financial system, including the Fed and SEC. Its decisions on bank capital requirements, cryptocurrency regulation, and real estate markets directly impact FRFHF's investment management, capital strategies, and the underlying assets (e.g., property) for its core insurance business.

Commerce, Science, and Transportation

This committee's vast jurisdiction over interstate commerce, consumer protection (FTC), and technology regulation impacts FRFHF through data privacy laws (e.g., how it handles customer data) and its oversight of industries (e.g., aerospace, telecom, Big Tech) that are significant for both insurance underwriting and investment portfolios.

Energy and Natural Resources

This committee's oversight of national energy policy, public lands, and the Department of Energy directly impacts the valuation of energy companies (oil & gas, renewables, mining), which are significant sectors for FRFHF's investment portfolio and for underwriting specialized P&C risks.

Environment and Public Works

This committee's regulatory authority over the EPA and environmental policy directly influences underwriting risks related to climate change, pollution, and environmental liabilities for FRFHF's property and casualty insurance segment. Infrastructure initiatives create both risks and opportunities for insurance.

Foreign Relations

As a global financial and reinsurance company, FRFHF is directly impacted by U.S. foreign policy, sanctions, and global market stability, affecting its international operations, investment portfolio, and geopolitical risk assessments for underwriting.