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Fairfax P&C underwriting profit lifts Q2 results despite lower net earnings
Adjusted operating income rose to USD 1.11 billion in Q2 2026 as the combined ratio improved to 93.1%, while net earnings dipped to USD 1.56 billion.
Fairfax Financial Holdings Limited’s property and casualty insurance and reinsurance operations generated adjusted operating income of USD 1.11 billion in Q2 2026, slightly down from USD 1.13 billion in Q2 2025. For the first half of 2026, adjusted operating income totaled USD 2.32 billion versus USD 1.82 billion in H1 2025, with growth attributed to higher underwriting profit and improved interest and dividend results, partially offset by weaker results from associates, according to Reinsurance News.
The company reported a dip in net earnings to USD 1.56 billion for the quarter, compared with USD 1.6 billion in Q2 2025, and net earnings of USD 2.29 billion for H1 2026 versus USD 2.55 billion in H1 2025. Fairfax said gross premiums written increased 4.1% to USD 9.63 billion, reflecting growth across its P&C insurance and reinsurance operations led by its international insurers and reinsurers segment.
Fairfax also highlighted growth in net premiums written, which rose 2.4% to USD 7.52 billion, even as it faced a more competitive pricing environment. P&C underwriting profit increased to USD 458.6 million from USD 426.9 million in Q2 2025, and the undiscounted combined ratio improved to 93.1% from 93.3%, with improvements tied primarily to higher business volumes.