Fairfax Financial combines 93.1% underwriting profitability, 18%+ historical book-value compounding, and an 8.01x P/E into a compelling long-term insurance compounder.
Overview
Fairfax Financial Holdings is a Toronto-based insurance and reinsurance holding company whose decentralized subsidiaries combine underwriting profits with centralized value-oriented investment management. Northbridge, Crum & Forster, Zenith National, Odyssey Group, Allied World, Brit, Ki, and other platforms serve commercial, specialty, workers’ compensation, Lloyd’s, and global reinsurance markets. **The core investment case is long-term book-value compounding supported by disciplined underwriting and permanent insurance float.** Q2 2026 gross premiums written rose 5.0% year over year to $9,633.9 million, net premiums written increased 2.4% to $7,344.1 million, and the undiscounted combined ratio improved to 93.1%. Diluted EPS increased 2.9% to $63.38 despite net gains on investments declining 19.2% to $768.9 million. Book value per basic share reached $1,304.39, up 4.8% year to date and from $567.18 at year-end 2021. At approximately $1,646.00, Fairfax trades at 1.26x book value and 8.01x trailing earnings, below several peers and its estimated 22% conglomerate discount. Near-term catalysts include continued underwriting profitability, higher reinvestment yields, buybacks, associate monetizations, and progress toward management’s approximately $5.0 billion annual operating-income framework.