1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Fairfax delivered a strong second quarter, as better insurance market pricing buoyed its underwriting results, and a bull equity market propelled its investment results. Adjusted for dividends, book value per share was up 15% from year-end, as the company continues to bounce back from a volatile 2020. We will maintain our CAD 569 fair value estimate and no-moat rating.
Fairfax Financial offers reinsurance and property and casualty insurance in Canada, the United States, and other international markets. About 25% of premiums come from reinsurance activities, and almost 30% of premiums are generated from outside Canada and the U.S. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chairman and CEO, since its formation in 1985.
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