Fairfax Q2 Net Earnings $1.39B; Book Value $1,304.39; Buyback $1.09B
Fairfax Financial Holdings Limited reported net earnings of $1,392.7 million ($63.38 diluted EPS) for the second quarter of 2026, a slight decrease from $1,436.7 million in Q2 2025. Despite this, book value per basic share grew by 4.8% to $1,304.39, adjusted for dividends. The company's property and casualty insurance operations showed strong underwriting performance with a profit of $458.6 million and an improved combined ratio of 93.1%, alongside growth in gross and net premiums written. Fairfax also engaged in significant corporate actions, including a $1.09 billion share buyback, participation in the privatization of Kennedy Wilson, and planned acquisitions of Andrew Peller Limited and Sleep Number Corporation by its subsidiaries, while also issuing new senior notes and redeeming others.
Key Highlights
- Net earnings for Q2 2026 were $1,392.7 million ($63.38 diluted EPS), down from $1,436.7 million in Q2 2025.
- Book value per basic share increased 4.8% to $1,304.39 at June 30, 2026, from $1,260.19 at December 31, 2025.
- Purchased 680,307 subordinate voting shares for cancellation for $1,089.3 million ($1,601 per share) in Q2 2026.
- Property and casualty underwriting profit increased to $458.6 million from $426.9 million, with a combined ratio of 93.1%.
- Gross premiums written increased by 4.1%, and net premiums written increased by 2.4% in Q2 2026.
- Fairfax provided $400.0 million financing for the privatization of Kennedy Wilson.
- Consortium led by Fairfax to acquire Andrew Peller Limited for approximately $233 million (Cdn$330 million).
- Sleep Country (subsidiary) to acquire Sleep Number Corporation for approximately $530 million.
- Total debt to total capital ratio (excluding non-insurance companies) increased to 28.0% from 26.2%.
Price Impact
More from FRFHF