Fairfax Financial Holdings Ltd

F:FFX

Business Description

Sector

Financials

Industry

Insurance

Headquarters

Canada CA

Employees

62 500

IPO date

Mar 17, 1980

Fairfax Financial Holdings is an insurance and investment holding company. Its main business is property and casualty insurance and reinsurance, where it collects premiums from policyholders and other insurers, then pays claims over time. It also owns and manages a portfolio of businesses and investments, which adds another source of earnings beyond underwriting.

The company sells insurance protection to businesses and individuals through its operating subsidiaries, and it also provides reinsurance to other insurers that want to pass along some of their risk. Fairfax makes money in two main ways: by earning underwriting profit when claims and expenses stay below premiums, and by earning returns on the money it invests before claims are paid. That mix gives it a different role than a typical insurer, because capital allocation and investing are a core part of how the business is run.

Fairfax’s customers are policyholders, insurance brokers, and insurance companies that buy coverage or risk protection. The company sits in the middle of the risk-transfer system: it takes on insurance risk, then uses disciplined underwriting and long-term investing to try to turn that risk into profit. Its business model is built around holding insurance float, investing it carefully, and owning operating businesses that can produce steady cash flow over time.