Fairfax Financial’s Q1 net earnings hit $776.5m driven by strong P&C operations

Fairfax Financial Holdings has revealed that its property and casualty insurance and reinsurance operations produced an adjusted operating income of $977.1 million in Q1 of 2024, up from $843 million in the opening quarter of 2023.

As per Fairfax, this operating income increase largely contributed to its Q1 2024 net earnings of $776.5 million.

The firm also noted that all of its insurance and reinsurance reporting segments continued to achieve undiscounted combined ratios below 100% in Q1 for an improved consolidated combined ratio of 93.6% and an increased consolidated underwriting profit of $373 million.

Fairfax’s gross premiums written in Q1 of 2024 grew by 12.8%, reflecting the acquisition of Gulf Insurance, which added $649.5 million in gross premiums written. Excluding Gulf Insurance gross premiums written were up 3.6%.

Meanwhile, net premiums written by the property and casualty insurance and reinsurance operations in Q1 of 2024 increased 11.2% to $6.25 billion, with net insurance revenue improving to $6.09 billion.

Fairfax’s net losses on investments in Q1 of  2024 were $58.5 million, reportedly comprised of mark to market losses on bonds of $318.8 million due to continued rising interest rates, which were largely offset by mark to market gains on common stocks of $275.1 million.

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