Fairfax Financial Reports 21.8% Rise in Q1 2025 Earnings to $945.7M

Fairfax Financial Holdings reported a strong start to 2025, with net earnings attributable to shareholders rising 21.8% to $945.7 million in the first quarter and earnings per share reaching $42.70, significantly surpassing analyst expectations. The company's property and casualty insurance and reinsurance divisions saw an 8.4% increase in net premiums written, though underwriting profit declined due to losses from the California wildfires. Investment gains contributed substantially to the company's results, with over $1 billion in net gains, mainly from common stocks and bonds. Multiple analysts have responded positively, raising their target prices for Fairfax Financial and assigning ratings ranging from 'moderate buy' to 'outperform.' The company also redeemed several series of preferred shares and maintains a strong liquidity position with substantial cash and marketable securities. Despite a downturn in annual earnings for 2024, recent performance and analyst sentiment indicate growing confidence in Fairfax Financial's outlook.