$FRFFF

FAIRFAX FINANCIAL HOLDINGS LTD/ CAN

CIK:0000915191|SEC Filings

Consolidated Statements of Earnings - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Earnings - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Insurance
Insurance revenue	$ 31,595.0	$ 31,064.1
Insurance service expenses	(26,051.5)	(24,866.8)
Net insurance result	5,543.5	6,197.3
Cost of reinsurance	(5,522.1)	(6,197.7)
Recoveries of insurance service expenses	3,826.6	4,453.2
Net reinsurance result	(1,695.5)	(1,744.5)
Insurance service result	3,848.0	4,452.8
Other insurance operating expenses	(1,150.7)	(1,182.9)
Net finance expense from insurance contracts	(2,450.6)	(1,754.9)
Net finance income from reinsurance contract assets held	613.8	475.0
Total	860.5	1,990.0
Investment income
Interest and dividends	2,574.0	2,511.9
Share of profit of associates	816.1	956.3
Net gains on investments	3,151.4	1,067.2
Total	6,541.5	4,535.4
Other revenue and expenses
Non-insurance revenue	8,537.6	6,682.8
Non-insurance expenses	(8,196.9)	(6,470.5)
Interest expense	(821.9)	(649.0)
Corporate and other expenses	(480.5)	(450.2)
Total	(961.7)	(886.9)
Earnings before income taxes	6,440.3	5,638.5
Provision for income taxes	(1,156.5)	(1,375.6)
Net earnings	5,283.8	4,262.9
Attributable to:
Shareholders of Fairfax	4,772.4	3,874.9
Non-controlling interests	511.4	388.0
Net earnings	$ 5,283.8	$ 4,262.9
Net earnings per share (in dollars per share)	$ 230.07	$ 173.41
Net earnings per diluted share (in dollars per share)	213.78	160.56
Cash dividends paid per share (in dollars per share)	$ 15	$ 15
Shares outstanding (000) (weighted average) (in shares)	21,449,822	22,373,092

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Operating activities
Net earnings	$ 5,283.8	$ 4,262.9
Depreciation, amortization and impairment charges	783.8	753.8
Net bond discount amortization	(258.5)	(310.2)
Amortization of share-based payment awards	176.6	164.9
Share of profit of associates	(816.1)	(956.3)
Deferred income taxes	201.9	255.0
Net gains on investments	(3,151.4)	(1,067.2)
Net purchases of investments classified at FVTPL	(4,059.1)	(515.8)
Changes in operating assets and liabilities	4,258.4	1,406.8
Cash provided by operating activities	2,419.4	3,993.9
Investing activities
Sales of investments in associates	630.0	682.7
Distributions and dividends from investments in associates	740.0	419.6
Purchases of investments in associates	(1,281.7)	(630.0)
Net purchases of premises and equipment and intangible assets	(586.2)	(408.8)
Net purchases of investment property	(22.7)	(33.0)
Purchases of subsidiaries, net of cash acquired	(222.8)	(1,421.0)
Deconsolidation of non-insurance subsidiaries	(59.0)
Cash used in investing activities	(523.8)	(1,323.1)
Financing activities
Purchases for treasury	(189.1)	(240.4)
Purchases for cancellation	(1,625.2)	(1,588.4)
Common share dividends	(343.6)	(363.1)
Preferred shares:
Redemptions	(689.4)	(173.8)
Dividends	(24.5)	(48.6)
Subsidiary shares:
Issuances to non-controlling interests, net of issuance costs	14.9	1.3
Purchases of non-controlling interests	(181.3)	(539.9)
Sales to non-controlling interests		0.9
Dividends paid to non-controlling interests	(181.8)	(294.7)
Cash used in financing activities	(1,825.0)	(1,563.5)
Increase in cash and cash equivalents	70.6	1,107.3
Cash and cash equivalents - beginning of year	6,112.5	5,121.4
Foreign currency translation	59.7	(116.2)
Cash and cash equivalents - end of year	6,242.8	6,112.5
Holding company and insurance and reinsurance companies
Financing activities
Proceeds, net of issuance costs	1,458.8	2,430.9
Repayments	(212.1)	(1,209.8)
Net borrowings on other revolving credit facilities	84.9
Principal payments on lease liabilities	(71.9)	(62.6)
Non-insurance companies
Investing activities
Proceeds from sale of subsidiaries, net of cash divested	278.6	67.4
Financing activities
Proceeds, net of issuance costs	603.8	1,380.9
Repayments	(560.0)	(665.2)
Net borrowings (repayments) on revolving credit facilities and short term loans	239.4	(51.2)
Principal payments on lease liabilities	$ (147.9)	$ (139.8)

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2025	Dec. 31, 2024
Assets
Holding company cash and investments (including assets pledged for derivative obligations - $207.8; December 31, 2024 - $193.6)	$ 2,724.9	$ 2,502.7
Insurance contract receivables	1,006.2	780.4
Portfolio investments
Subsidiary cash and short term investments (including restricted cash and cash equivalents - $640.4; December 31, 2024 - $1,240.7)	8,979.2	7,620.5
Bonds (cost $39,655.2; December 31, 2024 - $37,852.9)	39,988.8	37,390.3
Preferred stocks (cost $957.4; December 31, 2024 - $944.6)	2,307.4	2,365.0
Common stocks (cost $7,926.0; December 31, 2024 - $7,116.1)	9,204.0	7,464.2
Investments in associates (fair value $11,057.7; December 31, 2024 - $8,144.8)	8,362.3	7,153.3
Derivatives and other invested assets (cost $1,312.7; December 31, 2024 - $903.9)	1,764.3	1,159.7
Assets pledged for derivative obligations (cost $187.2; December 31, 2024 - $154.8)	190.8	150.8
Fairfax India cash, portfolio investments and associates (fair value $3,685.1; December 31, 2024 - $3,163.3)	2,125.0	1,916.6
Total portfolio investments	72,921.8	65,220.4
Assets held for sale	3,445.9
Reinsurance contract assets held	11,251.0	10,682.6
Deferred income tax assets	367.1	325.0
Goodwill and intangible assets	8,339.4	8,278.2
Other assets	7,731.4	8,988.0
Total assets	107,787.7	96,777.3
Liabilities
Accounts payable and accrued liabilities	6,119.7	6,078.3
Derivative obligations	786.9	356.9
Liabilities associated with assets held for sale	3,638.1
Deferred income tax liabilities	1,946.7	1,714.0
Insurance contract payables	338.3	923.0
Insurance contract liabilities	50,441.0	47,602.2
Borrowings	13,642.9	11,753.7
Total liabilities	76,913.6	68,428.1
Equity
Shareholders' equity attributable to shareholders of Fairfax	26,514.3	24,068.0
Non-controlling interests	4,359.8	4,281.2
Total equity	30,874.1	28,349.2
Total liabilities and total equity	107,787.7	96,777.3
Common shares
Equity
Equity in stock	26,282.6	22,959.8
Preferred shares
Equity
Equity in stock	231.7	1,108.2
Holding company and insurance and reinsurance companies
Liabilities
Borrowings	10,455.7	8,858.2
Non-insurance companies
Liabilities
Borrowings	$ 3,187.2	$ 2,895.5