Schedule of pledged assets, by nature of pledge requirement


		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

Schedule of fair value hierarchy of assets and liabilities


	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.

Summary of valuation techniques and unobservable inputs used to estimate fair value of assets

 

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

Increase

Discounted cash flow

Credit spread

2.3

%

9.8

%

Decrease

Other

127.8

Various

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

N/A

758.2

Common stocks^(c):

Limited partnerships and other⁽³⁾

2,284.0

Net asset value

N/A

Increase

Private equity funds⁽³⁾

492.4

Net asset value

N/A

Increase

Other

613.0

Various

N/A

3,389.4

Derivatives, net of derivative obligations^(d)

51.2

Various

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

Increase

Discount rate

18.0

%

18.0

%

Decrease

Other

136.5

Various

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.

Schedule of gains (losses) on investment


	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.