Fairfax Financial Holdings Limited announces net earnings of $945.7 million ($42.70 net earnings per diluted share) in the first quarter of 2025 compared to net earnings of $776.5 million in the first quarter of 2024, primarily reflecting increased net gains on investments, partially offset by decreased adjusted operating income of $685.5 million (2024 – $977.1 million). Book value per basic share at March 31, 2025 was $1,080.38 compared to $1,059.60 at December 31, 2024 (an increase of 3.5% adjusted for the $15 per common share dividend paid in the first quarter of 2025).
“In the first quarter of 2025 our property and casualty insurance and reinsurance operations produced adjusted operating income of $685.5 million (or operating income of $945.5 million including the benefit of discounting, net of a risk adjustment on claims), including California wildfire losses of $692.1 million and reflecting continued strong interest and dividend income. Despite the significant current period catastrophe losses of $781.3 million primarily from the California wildfires, our property and casualty insurance and reinsurance companies reported a consolidated combined ratio of 98.5% and consolidated underwriting profit of $96.9 million, on an undiscounted basis. Gross and net premiums written grew by 5.0% and 8.4%, reflecting new business and continued incremental rate increases in certain lines of business.
“Net gains on investments of $1,056.1 million in the quarter was principally comprised of net gains on common stocks of $779.5 million and mark to market gains on bonds of $388.4 million.
“We remain focused on being soundly financed and ended the quarter with approximately $2.1 billion of cash and marketable securities and an additional $1.7 billion, at fair value, of investments in associates and consolidated non-insurance companies owned by the holding company,” said Prem Watsa, Chairman and Chief Executive Officer.