Fairfax Financial Holdings

What is Fairfax Financial Holdings?

Fairfax Financial Holdings Limited is a Canadian financial services holding company that was founded in 1985 by V. Prem Watsa, who remains the Chairman and Chief Executive Officer. Fairfax, through its subsidiaries, specializes in property and casualty insurance and reinsurance, as well as investment management.

With a corporate objective to achieve a high rate of return on invested capital and build long-term shareholder value, Fairfax adopts a unique strategy. This approach involves combining disciplined underwriting with investing its assets on a total return basis, which incorporates both realized and unrealized gains, and is believed to yield above-average returns over the long run. The decentralized operation of its insurance and reinsurance companies allows for autonomous management teams that apply a focused underwriting strategy in their respective markets.

These subsidiaries offer a wide range of property and casualty products to a diverse portfolio of risks spanning all classes of business, geographic regions, and types of insureds. Investments for the Fairfax group are centrally managed by Hamblin Watsa Investment Counsel Ltd., a wholly-owned subsidiary that adheres to a conservative value investment philosophy. Fairfax's commitment to disciplined investing and consistent growth is reflected in its track record, including a compound annual growth rate in book value per share of 18.9% since its inception.

The firm manages total assets worth $87 billion USD and writes annual gross premiums of $24 billion USD. Fairfax aims for a 15% growth in book value per share over the long term and is known for its focus on building shareholder value with a strong emphasis on ethical practices and social responsibility. Fairfax's common shares are listed on the Toronto Stock Exchange with the symbols FFH and FFH.U for trading in U.S. dollars.

The minimum investment Fairfax engages in is $25,000,000, and its maximum investment amount can reach up to $2,120,000,000, demonstrating the company's significant reach in the financial marketplace.