Catastrophe Losses and Investment Hits Have Pushed Fairfax to a Loss in Third Quarter

Fairfax had a rough third quarter, with catastrophe losses and mark-to-market investment impacts pushing the company to a modest loss in the quarter. In our view, the results speak to the potential volatility the company’s approach creates. Book value per share, adjusted for dividends, is down 8% since the start of the year. However, we see nothing in the quarter to materially alter our long-term view, and will maintain our CAD 636 fair value estimate and no-moat rating.