| Cash and Investments |
Presented in the table below are holding company cash and investments and portfolio investments, net of derivative obligations, all of which are classified at FVTPL except for investments in associates and other invested assets. | | | | | | | December 31, | | December 31, | | | 2025 | | 2024 | Holding company | | | | | Cash and cash equivalents(1) | | 197.2 | | 663.2 | Short term investments | | 19.5 | | 51.6 | Bonds | | 328.7 | | 444.8 | Preferred stocks | | 12.7 | | 20.2 | Common stocks(2) | | 141.4 | | 92.5 | Derivatives (note 7) | | 1,817.6 | | 1,036.8 | | | 2,517.1 | | 2,309.1 | Assets pledged for derivative obligations: | | | | | Cash equivalents | | — | | 101.1 | Bonds | | 207.8 | | 92.5 | | | 207.8 | | 193.6 | | | | | | Holding company cash and investments as presented on the consolidated balance sheet | | 2,724.9 | | 2,502.7 | Derivative obligations (note 7) | | (8.0) | | (0.6) | | | 2,716.9 | | 2,502.1 | Portfolio investments(3) | | | | | Cash and cash equivalents(1) | | 6,563.7 | | 6,662.1 | Short term investments | | 2,415.5 | | 958.4 | Bonds | | 39,988.8 | | 37,390.3 | Preferred stocks | | 2,307.4 | | 2,365.0 | Common stocks(2) | | 9,204.0 | | 7,464.2 | Investments in associates (note 6) | | 8,362.3 | | 7,153.3 | Derivatives (note 7) | | 1,029.5 | | 538.0 | Other invested assets(4) | | 734.8 | | 621.7 | | | 70,606.0 | | 63,153.0 | Assets pledged for derivative obligations: | | | | | Bonds | | 190.8 | | 150.8 | | | | | | Fairfax India cash, portfolio investments and associates: | | | | | Cash and cash equivalents(1) | | 22.0 | | 86.2 | Bonds | | 42.6 | | 157.1 | Common stocks | | 445.1 | | 321.0 | Investments in associates (note 6) | | 1,615.3 | | 1,352.3 | | | 2,125.0 | | 1,916.6 | | | | | | Portfolio investments as presented on the consolidated balance sheet | | 72,921.8 | | 65,220.4 | Derivative obligations (note 7) | | (778.9) | | (356.3) | | | 72,142.9 | | 64,864.1 | Total cash and investments, net of derivative obligations | | 74,859.8 | | 67,366.2 |
| (1) | Includes aggregate restricted cash and cash equivalents at December 31, 2025 of $644.6 (December 31, 2024 - $1,400.1). See note 25. |
| (2) | Includes aggregate investments in limited partnerships with a carrying value at December 31, 2025 of $2,368.8 (December 31, 2024 – $2,282.3). |
| (3) | Excludes portfolio investments of the Eurolife Life Operations totaling $1,663.6, comprised principally of bonds of $1,403.8, that were classified as held for sale on the consolidated balance sheet at December 31, 2025. See note 21. |
| (4) | Comprised primarily of investment property. |
Restricted cash and cash equivalents Restricted cash and cash equivalents at December 31, 2025 of $644.6 (December 31, 2024 – $1,400.1) was comprised of amounts required to be maintained on deposit with various regulatory authorities to support the operations of the insurance and reinsurance subsidiaries. Restricted cash at December 31, 2024 included $835.0 held at a depository that was released on January 1, 2025 in connection with the company’s investments in Blizzard Vacatia Equity Partners LLC (“Blizzard Vacatia”). On January 1, 2025 the company acquired a 50.0% equity interest in Blizzard Vacatia as described in note 6. The company’s total cash investment of $835.0 was comprised of a senior secured loan of $365.0, preferred shares of $275.0 (which were classified as bonds due to their redemption features), a mortgage - backed loan of $170.0 (subsequently sold on December 12, 2025) and common shares of $25.0. Refer to note 25 for details of restricted cash and cash equivalents presented on the consolidated balance sheet. Pledged cash and investments The company’s subsidiaries have pledged cash and investments, inclusive of trust funds and regulatory deposits, as security for their own obligations to pay claims or make premium payments (these pledges are either direct or collateral for letters of credit). In order to write insurance business in certain jurisdictions (primarily U.S. states) the company’s subsidiaries must deposit funds with local insurance regulatory authorities to provide security for future claims payments as ultimate protection for the policyholder. Additionally, some of the company’s subsidiaries provide reinsurance to primary insurers, for which funds must be posted as security for losses that have been incurred but not yet paid. These pledges are in the normal course of business and are generally released when the payment obligation is fulfilled. The table that follows summarizes assets pledged to third parties by the nature of the pledge requirement (excluding assets pledged in favour of Lloyd’s (note 20), for derivative obligations and for certain intercompany reinsurance arrangements). Pledged assets primarily consist of cash and cash equivalents, short term investments and bonds within portfolio investments on the consolidated balance sheet. | | | | | | | December 31, | | December 31, | | | 2025 | | 2024 | Regulatory deposits | | 7,817.8 | | 6,714.4 | Security for reinsurance and other | | 1,877.4 | | 1,809.5 | | | 9,695.2 | | 8,523.9 |
Fixed Income Maturity Profile Bonds are summarized by their earliest contractual maturity date in the table below. Actual maturities may differ from maturities shown below due to the existence of call and put features. At December 31, 2025 bonds containing call, put and both call and put features represented $8,766.5, $671.3 and $5.7 respectively (December 31, 2024 - $9,657.6, $148.9 and $448.1) of the total fair value of bonds. The table below excludes: at December 31, 2025, the impact of U.S. treasury bond forward contracts to sell long - dated U.S. treasury bonds with a notional amount of $246.6 that economically hedge the company’s exposure to interest rate risk (December 31, 2024 - nil); at December 31, 2024, the impact of interest rate swaps with a notional amount of $1,900.0 that provided the company the right to receive fixed rates in exchange for the obligation to pay floating rates in relation to a majority of the net purchases of first mortgage loans completed during 2023; and at December 31, 2024, the impact of U.S. treasury bond forward contracts to buy long-dated U.S. treasury bonds with a notional amount of $1,330.2. | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | | | Amortized | | Fair | | Amortized | | Fair | | | | cost(1)(2) | | value(1)(2) | | cost(1) | | value(1) | | Due in 1 year or less(3) | | 9,473.6 | | 9,182.3 | | 9,324.8 | | 9,117.2 | | Due after 1 year through 3 years(3)(4) | | 13,652.3 | | 13,720.5 | | 8,110.9 | | 7,975.6 | | Due after 3 years through 5 years(3)(5) | | 14,796.8 | | 15,196.6 | | 6,939.6 | | 7,004.5 | | Due after 5 years through 10 years(6) | | 2,233.2 | | 2,225.4 | | 12,309.6 | | 12,273.6 | | Due after 10 years(7) | | 415.7 | | 433.9 | | 2,036.2 | | 1,864.6 | | | | 40,571.6 | | 40,758.7 | | 38,721.1 | | 38,235.5 | | Effective interest rate(8) | | | | 5.4 | % | | | 5.2 | % |
| (1) | Includes bonds held by the holding company and Fairfax India. |
| (2) | Excludes the bonds of the Eurolife Life Operations totaling $1,403.8 that were classified as held for sale on the consolidated balance sheet at December 31, 2025. See note 21. |
| (3) | Includes the company’s investments in first mortgage loans at December 31, 2025 of $5,402.5 (December 31, 2024 - $4,777.8) secured by real estate predominantly in the U.S., Europe and Canada. |
| (4) | Includes U.S. treasury bonds at December 31, 2025 of $7,372.2 (December 31, 2024 - $1,379.4) with maturities between 1 to 3 years. |
| (5) | Includes U.S. treasury bonds at December 31, 2025 of $11,575.7 (December 31, 2024 - $2,314.5) with maturities between 3 to 5 years. |
| (6) | Includes U.S. treasury bonds at December 31, 2025 of $372.1 (December 31, 2024 – $10,222.4) with maturities between 5 to 7 years. |
| (7) | Includes U.S. treasury bonds at December 31, 2025 of $0.9 (December 31, 2024 – $1,204.7) with maturities between 28 to 30 years. |
| (8) | The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the fixed income investment to its gross carrying amount at initial recognition. The effective interest rate does not reflect changes in market interest rates that affect the fair value of the fixed income investment over time. |
The increase in the company’s holdings of bonds due after 1 year through 3 years was primarily due to net purchases of U.S. treasury bonds of $5,740.5, corporate and other bonds of $994.5 and Canadian government bonds of $561.6, partially offset by the reclassification of bonds of the Eurolife Life Operations to assets held for sale (see note 21). The increase in the company’s holdings of bonds due after 3 years through 5 years was primarily due to the passage of time impacting their earliest maturity date. The decrease in the company’s holdings of bonds due after 5 years through 10 years was primarily due to the passage of time impacting their earliest maturity date and net sales of U.S. treasury bonds of $431.0 and corporate and other bonds of $291.9, partially offset by net purchases of other government bonds of $917.9. The decrease in the company’s holdings of bonds due after 10 years was primarily due to net sales of U.S. treasury bonds with maturities principally between 28 to 30 years for net proceeds of $1,173.2. Fair Value Disclosures The company’s use of quoted market prices (Level 1), valuation models with significant observable market information as inputs (Level 2) and valuation models with significant unobservable information as inputs (Level 3) in the valuation of securities and derivative contracts by type of issuer was as follows: | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | | | | | Significant | | | | | | | | Significant | | | | | | | | | | other | | Significant | | Total fair | | | | other | | Significant | | Total fair | | | | Quoted | | observable | | unobservable | | value | | Quoted | | observable | | unobservable | | value | | | | prices | | inputs | | inputs | | asset | | prices | | inputs | | inputs | | asset | | | | (Level 1) | | (Level 2) | | (Level 3) | | (liability) | | (Level 1) | | (Level 2) | | (Level 3) | | (liability) | | Cash and cash equivalents(1) | | 6,782.9 | | — | | — | | 6,782.9 | | 7,512.6 | | — | | — | | 7,512.6 | | | | | | | | | | | | | | | | | | | | Short term investments: | | | | | | | | | | | | | | | | | | Canadian government and provincials | | 1,542.8 | | — | | — | | 1,542.8 | | 98.5 | | — | | — | | 98.5 | | U.S. treasury | | 107.2 | | — | | — | | 107.2 | | 217.8 | | — | | — | | 217.8 | | Other government | | 93.6 | | 282.5 | | — | | 376.1 | | 55.7 | | 171.0 | | — | | 226.7 | | Corporate and other | | — | | 408.9 | | — | | 408.9 | | — | | 467.0 | | — | | 467.0 | | | | 1,743.6 | | 691.4 | | — | | 2,435.0 | | 372.0 | | 638.0 | | — | | 1,010.0 | | Bonds: | | | | | | | | | | | | | | | | | | Canadian government and provincials | | — | | 2,609.8 | | — | | 2,609.8 | | — | | 2,741.0 | | — | | 2,741.0 | | U.S. treasury | | — | | 20,081.9 | | — | | 20,081.9 | | — | | 15,863.9 | | — | | 15,863.9 | | U.S. states and municipalities | | — | | 163.1 | | — | | 163.1 | | — | | 179.6 | | — | | 179.6 | | Other government | | — | | 6,027.5 | | 54.0 | | 6,081.5 | | — | | 6,087.4 | | 45.9 | | 6,133.3 | | Corporate and other(2) | | — | | 4,826.0 | | 6,996.4 | | 11,822.4 | | — | | 7,601.0 | | 5,716.7 | | 13,317.7 | | | | — | | 33,708.3 | | 7,050.4 | | 40,758.7 | | — | | 32,472.9 | | 5,762.6 | | 38,235.5 | | Preferred stocks: | | | | | | | | | | | | | | | | | | Canadian | | 18.7 | | — | | 12.1 | | 30.8 | | 16.3 | | — | | 19.2 | | 35.5 | | U.S. | | — | | — | | 444.9 | | 444.9 | | — | | — | | 398.9 | | 398.9 | | Other(3) | | 16.2 | | 1,527.0 | | 301.2 | | 1,844.4 | | 12.3 | | 1,936.7 | | 1.8 | | 1,950.8 | | | | 34.9 | | 1,527.0 | | 758.2 | | 2,320.1 | | 28.6 | | 1,936.7 | | 419.9 | | 2,385.2 | | Common stocks: | | | | | | | | | | | | | | | | | | Canadian | | 1,737.7 | | 101.3 | | 245.7 | | 2,084.7 | | 1,264.5 | | 175.4 | | 332.4 | | 1,772.3 | | U.S. | | 1,341.0 | | 39.4 | | 1,640.0 | | 3,020.4 | | 902.4 | | 34.3 | | 1,396.0 | | 2,332.7 | | Other | | 2,536.9 | | 644.8 | | 1,503.7 | | 4,685.4 | | 1,757.0 | | 575.7 | | 1,440.0 | | 3,772.7 | | | | 5,615.6 | | 785.5 | | 3,389.4 | | 9,790.5 | | 3,923.9 | | 785.4 | | 3,168.4 | | 7,877.7 | | Derivatives and other invested assets: | | | | | | | | | | | | | | | | | | Derivatives | | — | | 2,340.4 | | 506.7 | | 2,847.1 | | — | | 1,354.2 | | 220.6 | | 1,574.8 | | Other invested assets(4) | | — | | — | | 734.8 | | 734.8 | | — | | — | | 621.7 | | 621.7 | | | | — | | 2,340.4 | | 1,241.5 | | 3,581.9 | | — | | 1,354.2 | | 842.3 | | 2,196.5 | | | | | | | | | | | | | | | | | | | | Derivative obligations (note 7) | | — | | (331.4) | | (455.5) | | (786.9) | | — | | (222.7) | | (134.2) | | (356.9) | | | | | | | | | | | | | | | | | | | | Holding company cash and investments and portfolio investments measured at fair value | | 14,177.0 | | 38,721.2 | | 11,984.0 | | 64,882.2 | | 11,837.1 | | 36,964.5 | | 10,059.0 | | 58,860.6 | | | | | | | | | | | | | | | | | | | | | | 21.9 | % | 59.7 | % | 18.4 | % | 100.0 | % | 20.1 | % | 62.8 | % | 17.1 | % | 100.0 | % | | | | | | | | | | | | | | | | | | | Investments in associates (note 6)(5) | | 6,217.6 | | 735.8 | | 7,279.7 | | 14,233.1 | | 4,420.5 | | 679.5 | | 5,643.8 | | 10,743.8 | |
| (1) | Includes restricted cash and cash equivalents of $644.6 at December 31, 2025 (December 31, 2024 – $1,400.1). Aggregate restricted cash and cash equivalents at December 31, 2024 included cash of $835.0 held at a depository in connection with the company’s investments in Blizzard Vacatia that closed on January 1, 2025 as described earlier. See also note 6 and note 25. |
| (2) | Included in Level 3 are the company’s investments in first mortgage loans at December 31, 2025 of $5,402.5 (December 31, 2024 – $4,777.8) secured by real estate predominantly in the U.S., Europe and Canada. |
| (3) | Primarily comprised of the company’s investment in compulsory convertible preferred shares of Go Digit Infoworks Services Limited (“Digit”). The company also holds a 49.0% equity interest in Digit as described in note 6. |
| (4) | Comprised primarily of investment property. |
| (5) | The fair value of investments in associates is presented separately as such investments are measured using the equity method of accounting. |
In the preceding table certain limited partnerships included in common stocks are classified as Level 3 because their net asset values are unobservable or because they contractually require greater than three months to liquidate or redeem. During 2025 and 2024 there were no significant transfers of financial instruments between Level 1 and Level 2. There were no other significant transfers of financial instruments in or out of Level 3 as a result of changes in the observability of valuation inputs except as described in the following table which summarizes changes in Level 3 financial assets measured at fair value on a recurring basis. During 2024 the company’s holdings in common shares and compulsory convertible preferred shares of Digit were transferred from investments in associates and preferred stocks classified as Level 3 to Level 2, respectively, due to the completion of the initial public offering of Digit’s general insurance subsidiary, Go Digit General Insurance Limited (“Digit Insurance”) as described in note 6. Also, during 2024 Fairfax India’s holdings in CSB Bank Limited common shares were transferred from investments in associates classified as Level 3 to Level 1 as a result of the release of selling restrictions in August 2024. | | | | | | | | | | | | | | | | | | | 2025 | | | Private | | Private | | | | | | | | Derivatives, | | | | | | | placement | | company | | Limited | | Private | | | | net of | | Other | | | | | debt | | preferred | | partnerships | | equity | | Common | | derivative | | invested | | | | | securities | | shares | | and other(1) | | funds(1) | | shares | | obligations | | assets | | Total | Balance - January 1 | | 5,762.6 | | 419.9 | | 2,104.8 | | 70.9 | | 992.7 | | 86.4 | | 621.7 | | 10,059.0 | Net realized and unrealized gains (losses) included in the consolidated statement of earnings | | (5.8) | | 25.6 | | 152.0 | | 8.2 | | 41.4 | | 259.0 | | (8.1) | | 472.3 | Purchases(2)(3) | | 3,181.2 | | 11.5 | | 274.0 | | — | | 83.8 | | 39.7 | | 131.3 | | 3,721.5 | Transfer into category(4) | | — | | 299.6 | | — | | — | | — | | — | | — | | 299.6 | Sales and distributions(2)(3) | | (1,859.0) | | (1.4) | | (262.8) | | (14.6) | | (58.6) | | (334.0) | | (17.0) | | (2,547.4) | Unrealized foreign currency translation gains on foreign subsidiaries included in other comprehensive income (loss) | | 78.6 | | 4.6 | | 16.0 | | 6.6 | | 10.0 | | 0.1 | | 6.9 | | 122.8 | Deconsolidation of non-insurance subsidiary | | — | | (1.6) | | — | | — | | (11.5) | | — | | — | | (13.1) | Assets held for sale (note 21) | | (107.2) | | — | | — | | — | | (23.5) | | — | | — | | (130.7) | Balance - December 31 | | 7,050.4 | | 758.2 | | 2,284.0 | | 71.1 | | 1,034.3 | | 51.2 | | 734.8 | | 11,984.0 |
| | | | | | | | | | | | | | | | | | | 2024 | | | Private | | Private | | | | | | | | Derivatives, | | | | | | | placement | | company | | Limited | | Private | | | | net of | | Other | | | | | debt | | preferred | | partnerships | | equity | | Common | | derivative | | invested | | | | | securities | | shares | | and other(1) | | funds(1) | | shares | | obligations | | assets | | Total | Balance - January 1 | | 5,797.0 | | 2,142.0 | | 1,998.2 | | 72.8 | | 957.5 | | (84.5) | | 577.0 | | 11,460.0 | Net realized and unrealized gains (losses) included in the consolidated statement of earnings | | 29.4 | | 57.8 | | 125.1 | | 9.0 | | 80.4 | | 207.2 | | (28.4) | | 480.5 | Purchases(2) | | 1,306.3 | | 12.7 | | 203.6 | | — | | 160.6 | | — | | 94.0 | | 1,777.2 | Sales and distributions(2) | | (1,280.3) | | (1.4) | | (203.5) | | (8.6) | | (191.7) | | (35.7) | | (7.3) | | (1,728.5) | Transfer out of category(5) | | (31.8) | | (1,784.3) | | — | | — | | — | | — | | — | | (1,816.1) | Unrealized foreign currency translation losses on foreign subsidiaries included in other comprehensive income (loss) | | (58.0) | | (6.9) | | (18.6) | | (2.3) | | (14.1) | | (0.6) | | (13.6) | | (114.1) | Balance - December 31 | | 5,762.6 | | 419.9 | | 2,104.8 | | 70.9 | | 992.7 | | 86.4 | | 621.7 | | 10,059.0 |
| (1) | Included in common stocks in the fair value hierarchy table presented on the previous page and in holding company cash and investments or common stocks on the consolidated balance sheets. |
| (2) | Private placement debt securities include net purchases of first mortgage loans of $662.6 (2024 – $103.5). |
| (3) | On January 1, 2025 the company acquired a 50.0% equity interest in Blizzard Vacatia. The company’s total cash investment of $835.0 was comprised of a senior secured loan of $365.0, preferred shares of $275.0 (classified as bonds due to their redemption features), a mortgage-backed loan of $170.0 (subsequently sold on December 12, 2025) and common shares of $25.0. The common shares are recorded and measured using the equity method of accounting. See note 6 for details. |
| (4) | During 2025 the company’s investment in Atlas Corp. preferred shares was transferred from Level 2 to Level 3 following a change in the observability of the instrument’s credit spread which is used in the valuation of the instrument. |
| (5) | During 2024 the company’s investment in Digit compulsory convertible preferred shares was transferred from Level 3 to Level 2 following the completion of Digit Insurance’s initial public offering as described above. |
The table below presents the valuation techniques and unobservable inputs used to estimate fair values for the company’s significant Level 3 financial assets at December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | Effect on fair | | | | | | | | | | | | | value if input | | | Carrying | | | | | | Input range used | | value is | Asset class | | value | | Valuation technique | | Significant unobservable input | | Low | | High | | increased | Bonds(a): | | | | | | | | | | | | | Private placement debt securities(1) | | 1,520.1 | | Discounted cash flow | | Credit spread | | 2.7 | % | 9.5 | % | Decrease | Mortgage loans(2) | | 5,402.5 | | Market approach | | Recent transaction price | | N/A | | N/A | | Increase | | | | | Discounted cash flow | | Credit spread | | 2.3 | % | 9.8 | % | Decrease | Other | | 127.8 | | Various | | Various | | N/A | | N/A | | N/A | | | 7,050.4 | | | | | | | | | | | | | | | | | | | | | | | | Preferred stocks(b): | | | | | | | | | | | | | Private placement preferred shares(1) | | 676.6 | | Discounted cash flow | | Credit spread | | 2.7 | % | 4.6 | % | Decrease | Other | | 81.6 | | Various | | Various | | N/A | | N/A | | N/A | | | 758.2 | | | | | | | | | | | | | | | | | | | | | | | | Common stocks(c): | | | | | | | | | | | | | Limited partnerships and other(3) | | 2,284.0 | | Net asset value | | Net asset value | | N/A | | N/A | | Increase | Private equity funds(3) | | 492.4 | | Net asset value | | Net asset value | | N/A | | N/A | | Increase | Other | | 613.0 | | Various | | Various | | N/A | | N/A | | N/A | | | 3,389.4 | | | | | | | | | | | | | | | | | | | | | | | | Derivatives, net of derivative obligations(d) | | 51.2 | | Various | | Various | | N/A | | N/A | | N/A | | | | | | | | | | | | | | Other invested assets(d): | | | | | | | | | | | | | Investment property(4) | | 383.2 | | Income capitalization | | Terminal capitalization rate | | 6.3 | % | 9.0 | % | Decrease | | | | | | | Discount rate | | 8.0 | % | 10.3 | % | Decrease | | | | | | | Market rent growth rate | | 2.2 | % | 3.0 | % | Increase | | | | | | | Overall capitalization rate | | 5.5 | % | 5.5 | % | Decrease | | | 215.1 | | Sales comparison | | Price per acre (Cdn$ thousands) | | 40.2 | | 183.6 | | Increase | | | | | | | Price per square foot (US$) | | 120.0 | | 120.0 | | Increase | | | | | | | Discount rate | | 18.0 | % | 18.0 | % | Decrease | Other | | 136.5 | | Various | | Various | | N/A | | N/A | | N/A | | | 734.8 | | | | | | | | | | | Total | | 11,984.0 | | | | | | | | | | |
| (a) | Included in holding company cash and investments or bonds on the consolidated balance sheet. |
| (b) | Included in holding company cash and investments or preferred stocks on the consolidated balance sheet. |
| (c) | Included in holding company cash and investments or common stocks on the consolidated balance sheet. |
| (d) | Included in holding company cash and investments or derivatives and other invested assets, net of derivative obligations, on the consolidated balance sheet. |
| (1) | At December 31, 2025 these private placement debt securities and private placement preferred shares were valued using industry accepted discounted cash flow models that incorporated unobservable credit spreads of the issuers. Private placement debt securities consisted of 11 investments, the three largest being $369.3 (Orla Mining Ltd.), $365.0 (Blizzard Vacatia) and $275.0 (Blizzard Vacatia) (December 31, 2024 – 11 investments, the three largest being $125.6 (construction and home building), $121.0 (Amynta Group) and $114.6 (Duke Capital Limited)). By increasing (decreasing) the credit spreads applied at December 31, 2025 by 100 basis points, the fair value of private placement debt securities would collectively decrease by $43.6 (increase by $43.0). Private placement preferred shares consisted of 3 investments, the largest being $299.2 (global containership owner-operator) (December 31, 2024 - 2 investments, the largest being $191.0 (real estate management and development)). By increasing (decreasing) the credit spreads applied at December 31, 2025 by 100 basis points, the fair value of private placement preferred shares would collectively decrease by $49.5 (increase by $74.3). |
| (2) | At December 31, 2025 these mortgage loans consisted of 112 investments, the largest being $374.2 (December 31, 2024 – 93 investments, the largest being $235.0). By increasing (decreasing) the credit spreads applied at December 31, 2025 by 100 basis points, the fair value of this asset class would collectively decrease by $38.1 (increase by $10.1). |
| (3) | Limited partnerships and other, and certain private equity funds, are investment funds managed by third party fund managers and general partners that invest in a diverse range of industries and geographies. These investment funds were valued primarily using net asset value statements provided by those third party fund managers and general partners. The fair values in those statements are determined using quoted prices of the underlying assets, and to a lesser extent, observable inputs where available and unobservable inputs, in conjunction with industry accepted valuation models, where required. Typically investment funds, when they otherwise meet the criteria to be classified as Level 2, are instead classified as Level 3 if they require at least three months’ notice to liquidate or redeem. At December 31, 2025 limited partnerships and other consisted of 45 investments, the three largest being $488.8 (industrials), $283.5 (industrials) and $261.6 (industrials) (December 31, 2024 - 44 investments, the three largest being $320.1 (industrials), $288.4 (oil and gas extraction) and $265.6 (industrials)). By increasing (decreasing) net asset values at December 31, 2025 by 10%, the fair value of limited partnerships and other would collectively increase (decrease) by $228.4. |
| (4) | These investment property were primarily valued by third party appraisers using an industry accepted income capitalization approach that incorporated unobservable capitalization rates, discount rates and market rent growth rates, as applicable. Certain investment property were valued using an industry accepted direct sales comparison approach that incorporated sale prices from recent comparable market transactions in similar locations. |
Investment Income An analysis of investment income for the years ended December 31 follows: Interest and dividends and Share of profit of associates | | | | | | | 2025 | | 2024 | Interest income: | | | | | Cash and short term investments | | 341.0 | | 359.8 | Bonds | | 2,109.2 | | 2,055.3 | Derivatives and other invested assets | | (23.3) | | (68.5) | | | 2,426.9 | | 2,346.6 | Dividends: | | | | | Preferred stocks(1) | | 57.0 | | 164.7 | Common stocks | | 170.2 | | 98.2 | | | 227.2 | | 262.9 | Investment expenses | | (80.1) | | (97.6) | Interest and dividends | | 2,574.0 | | 2,511.9 | | | | | | Share of profit of associates (note 6) | | 816.1 | | 956.3 |
| (1) | On October 30, 2024 the company received a dividend of $112.3 from Digit on the company’s investment in Digit compulsory convertible preferred shares. See note 6 for details. |
Net gains (losses) on investments | | | | | | | | | | | | | | | 2025 | | 2024 | | | | | Net change in | | Net gains | | | | Net change in | | Net gains | | | Net realized | | unrealized | | (losses) on | | Net realized | | unrealized | | (losses) on | | | gains (losses) | | gains (losses) | | investments | | gains (losses) | | gains (losses) | | investments | Common stocks(1) | | 391.3 | | 1,099.9 | | 1,491.2 | | 507.0 | | (210.2) | | 296.8 | Bonds and preferred stocks - convertible | | 100.2 | | 78.5 | | 178.7 | | 18.2 | | (3.6) | | 14.6 | Other equity derivatives(2)(3) | | 210.1 | | 838.4 | | 1,048.5 | | 375.3 | | 564.0 | | 939.3 | Disposition of non-insurance associates(4)(5)(6)(7) | | 233.8 | | — | | 233.8 | | 575.5 | | — | | 575.5 | Other | | 97.9 | | — | | 97.9 | | 32.8 | | — | | 32.8 | Long equity exposures and financial effects | | 1,033.3 | | 2,016.8 | | 3,050.1 | | 1,508.8 | | 350.2 | | 1,859.0 | Bonds | | (190.6) | | 573.8 | | 383.2 | | (16.5) | | (590.8) | | (607.3) | U.S. treasury bond forward contracts | | (42.7) | | 44.9 | | 2.2 | | (90.0) | | (34.0) | | (124.0) | Total bonds | | (233.3) | | 618.7 | | 385.4 | | (106.5) | | (624.8) | | (731.3) | Foreign currency(8) | | (377.3) | | (62.4) | | (439.7) | | 166.6 | | (191.8) | | (25.2) | Other | | (59.3) | | 214.9 | | 155.6 | | (17.9) | | (17.4) | | (35.3) | Net gains (losses) on investments | | 363.4 | | 2,788.0 | | 3,151.4 | | 1,551.0 | | (483.8) | | 1,067.2 |
| (1) | During 2025 the company sold 25 million common shares of Orla Mining Ltd. (“Orla Mining”) for cash proceeds of $316.5 (Cdn$441.1) and recorded a realized gain of $228.1, of which $52.5 was recognized as unrealized gains in prior years. The company continued to hold Orla Mining common shares with a fair value of $423.6 at December 31, 2025. |
| (2) | Other equity derivatives include long equity total return swaps and equity warrants and options. Net change in unrealized gains (losses) in 2025 included $782.7 of unrealized gains (2024 - $515.8) on the company’s investment in long equity total return swaps on Fairfax subordinate voting shares principally related to the increase in market value movement on Fairfax subordinate voting shares in the period for which collateral was pledged by the counterparties, with the fair value of $1,815.4 at December 31, 2025 (December 31, 2024 - $1,032.7) recorded in holding company cash and investments, as described in note 7. |
| (3) | Amounts recorded in net realized gains (losses) include net gains (losses) on total return swaps where the counterparties are generally required to cash-settle monthly or quarterly the market value movement since the previous reset date notwithstanding that the total return swap positions remain open subsequent to the cash settlement. Net realized gains (losses) in 2025 included $57.9 of realized gains (2024 - $517.7) on the company’s investment in long equity total return swaps on Fairfax subordinate voting shares, which represented cash-settlement amounts on market value movement since previous reset date of $57.9 (2024 - $295.3). Realized gains in 2024 also included the cash - settlement of $222.4 on closing $68.5 original notional amount of contracts, recorded in holding company cash and investments. |
| (4) | On March 28, 2025 the company sold its investment in Sigma Companies International Corp. for total consideration of $327.1 and recorded a net realized gain of $178.7 as described in note 6. |
| (5) | During 2025 the company sold 96.9 million shares of Eurobank for cash consideration of $248.5 (€232.9) and recorded a net realized gain of $58.5 as described in note 6. |
| (6) | On November 1, 2024 the company sold its investment in Stelco for total consideration of $638.1 and recorded a net realized gain of $343.7 as described in note 6. |
| (7) | On December 20, 2024 the company acquired additional interests in Peak Achievement, increasing its ownership from 42.6% to 100.0%. Accordingly, the company commenced consolidating Peak Achievement and recorded a realized remeasurement gain of $203.4 in the consolidated statement of earnings as described in note 21. |
| (8) | Foreign currency net losses during 2025 were primarily related to foreign currency net losses on foreign currency contracts, underwriting activities and investing activities. Foreign currency net losses on investing activities during 2025 primarily related to the strengthening of the U.S. dollar relative to the Indian rupee on Indian rupee denominated investments. Foreign currency net losses on investing activities during 2024 primarily related to the strengthening of the U.S. dollar relative to the Brazilian real, Canadian dollar and Egyptian pound on investments denominated in those currencies. |
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