Fairfax sees record underwriting profit of $1.8bn in 2024

Fairfax Financial Holdings’ consolidated undiscounted combined ratio for its property and casualty insurance and reinsurance operations improved to 92.7% in 2024, resulting in a record underwriting profit of $1.79 billion, despite absorbing higher catastrophe losses of $1.01 billion.

This compares to an undiscounted combined ratio of 93.2% and an underwriting profit of $1.52 million in 2023.

Meanwhile, gross premiums written by the property and casualty insurance and reinsurance operations grew by 12.6% in 2024 to $32.5 billion, and net premiums written by 11.6%. According to Fairfax, the growth here reflected its acquisition of Gulf Insurance in 2023, which added $2.7 billion in gross and $1.6 billion in net premiums written.

Of the total gross premiums written, the Global Insurers and Reinsurers segment accounted for $17.15 billion, with Brit contributing $3.76 billion.

In 2024, the Global Insurers and Reinsurers segment’s combined ratio improved to 91%, compared to 91.7% in 2023. Within this segment, Brit reported a combined ratio of 93.6%, Odyssey Group 91.2%, and Allied World 89.1%.

At the same time, Fairfax’s property and casualty insurance and reinsurance operations achieved record adjusted operating income of $4.8 billion and operating income of $6.5 billion, including the benefit of discounting, net of a risk adjustment on claims.

The firm said that these figures reflected its strong underwriting performance, interest and dividends, and continued favourable results from share of profit of associates.

For Q4 2024 alone, property and casualty insurance and reinsurance operations produced an underwriting profit of $658 million, up from $579 million in 2023.

Fairfax’s property and casualty insurance and reinsurance operations adjusted operating income in Q4 2024 was $1.53 billion, up from $1.21 billion in Q4 2023.

Fairfax’s total 2024 net earnings were $3.87 billion, down from 2023 net earnings of $4.38 billion.

Prem Watsa, Chairman and Chief Executive Officer of Fairfax commented, “We remain focused on being soundly financed and ended 2024 in a strong financial position with $2.5 billion in cash, marketable securities and investments in the holding company, and an additional $2.0 billion, at fair value, of investments in associates and consolidated non-insurance companies owned by the holding company.”

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