Fairfax Financial Reports $1.4B Q2 Earnings Growth Driven by Investment Gains

Fairfax Financial Holdings Ltd reported strong financial results for Q2 2025, with net earnings rising to $1.4 billion from $915 million in the previous year, driven by substantial net gains on investments and effective underwriting performance. The company's book value per share increased by 10.8% to $1,158, reflecting enhanced shareholder value, while consolidated investment returns stood at 2.6%. Insurance and reinsurance operations showed growth with $9.1 billion in gross premiums and a combined ratio of 93.3%, indicating efficient risk management. Analysts have raised earnings per share estimates, with the latest quarterly EPS at $61.61, surpassing consensus estimates, and multiple brokerages maintaining or upgrading their ratings to Buy or Strong Buy. Despite some challenges, including a decline in profits from associates and issues at certain subsidiaries, Fairfax's overall outlook remains positive, supported by robust revenue growth and strong investment performance. Separately, Fairfax India Holdings Corporation also posted improved Q2 earnings and book value growth, underlining strong operational stability and strategic positioning in its market.