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Fairfax Financial 
Insurance and reinsurance / Insurance and investment management
At a Glance | Core Facts | Company Due Diligence: | Industry Due Diligence: | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | WebOverview
Fairfax Financial Holdings Limited is a Canadian multinational financial services holding company. It is headquartered in Toronto, Ontario and has operations in over 100 countries. The company was founded in 1985 by Canadian businessman Prem Watsa and initially focused on property and casualty insurance. Over the years, Fairfax has expanded its business to include reinsurance, investment management, and other financial services.
The company has a diverse portfolio of insurance and reinsurance companies, including Northbridge Financial Corporation, OdysseyRe, and Zenith National Insurance Corp. It also has investments in several companies such as BlackBerry, Resolute Forest Products, and Atlas Mara Limited.
Fairfax has a strong track record of profitable underwriting and disciplined investment management. It has consistently delivered above-average returns to its shareholders, with a compounded annual growth rate of over 20% since 1985. The company has a strong balance sheet and maintains a conservative approach to risk management.
Fairfax is known for its long-term investment strategy and has a history of successful acquisitions and partnerships. It has a global presence and is well-positioned to take advantage of opportunities in emerging markets. The company is committed to creating value for its shareholders, customers, and business partners through its strong financial performance and responsible business practices.
In addition to its business operations, Fairfax also has a strong commitment to corporate social responsibility. The company supports various charitable initiatives and environmental sustainability efforts in the communities where it operates.
In conclusion, Fairfax Financial Holdings Limited is a well-respected and successful multinational financial services company with a strong track record of delivering value to its stakeholders. With its diverse portfolio, disciplined approach to underwriting and investment management, and commitment to responsible business practices, Fairfax is a leader in the financial services industry.
The company has a diverse portfolio of insurance and reinsurance companies, including Northbridge Financial Corporation, OdysseyRe, and Zenith National Insurance Corp. It also has investments in several companies such as BlackBerry, Resolute Forest Products, and Atlas Mara Limited.
Fairfax has a strong track record of profitable underwriting and disciplined investment management. It has consistently delivered above-average returns to its shareholders, with a compounded annual growth rate of over 20% since 1985. The company has a strong balance sheet and maintains a conservative approach to risk management.
Fairfax is known for its long-term investment strategy and has a history of successful acquisitions and partnerships. It has a global presence and is well-positioned to take advantage of opportunities in emerging markets. The company is committed to creating value for its shareholders, customers, and business partners through its strong financial performance and responsible business practices.
In addition to its business operations, Fairfax also has a strong commitment to corporate social responsibility. The company supports various charitable initiatives and environmental sustainability efforts in the communities where it operates.
In conclusion, Fairfax Financial Holdings Limited is a well-respected and successful multinational financial services company with a strong track record of delivering value to its stakeholders. With its diverse portfolio, disciplined approach to underwriting and investment management, and commitment to responsible business practices, Fairfax is a leader in the financial services industry.
What is special about the company?
1. Successful Track Record: Fairfax Financial has a long and successful history in the insurance and financial services industry, dating back to its founding in 1985. In its over 35 years of operation, the company has consistently delivered strong financial performance and has earned a reputation for being a reliable and stable investment option.
2. Diversified Portfolio: Fairfax Financial has a diverse portfolio of businesses, including insurance and reinsurance, investment management, and real estate. This diversification helps the company mitigate risk and generate stable and consistent returns for its shareholders.
3. Strong Leadership: Fairfax Financial is led by its founder and CEO, Prem Watsa, who is known for his astute investment strategies and risk management expertise. Under his leadership, the company has grown into a global business empire with operations in over 40 countries.
4. Strategic Acquisitions: Fairfax Financial has a well-established track record of making strategic acquisitions. These acquisitions have helped the company expand its operations and enter into new markets, further diversifying its revenue streams.
5. Focus on Long-Term Value Creation: Instead of focusing on short-term gains, Fairfax Financial takes a long-term approach to its investments and operations. This allows the company to build sustainable growth and create value for its shareholders over the long run.
6. Strong Culture of Risk Management: Fairfax Financial has a strong culture of risk management, which is reflected in the company’s conservative investment approach and its ability to weather market downturns.
7. Commitment to Corporate Social Responsibility: Fairfax Financial is committed to giving back to the communities in which it operates. The company has various initiatives and programs focused on education, healthcare, and environmental conservation.
8. Consistently High Credit Ratings: Fairfax Financial has consistently received high credit ratings from major rating agencies, which reflects its strong financial position and ability to fulfill its financial obligations.
9. Exceptional Shareholder Returns: Fairfax Financial has delivered exceptional returns for its shareholders over the years. The company’s total shareholder return has outperformed major stock indices and its peers in the financial services industry.
10. Long-Term Outlook: Fairfax Financial has a proven track record of being able to navigate through various market cycles and deliver solid long-term returns for its shareholders. This makes it an attractive investment option for those looking for steady and stable returns.
2. Diversified Portfolio: Fairfax Financial has a diverse portfolio of businesses, including insurance and reinsurance, investment management, and real estate. This diversification helps the company mitigate risk and generate stable and consistent returns for its shareholders.
3. Strong Leadership: Fairfax Financial is led by its founder and CEO, Prem Watsa, who is known for his astute investment strategies and risk management expertise. Under his leadership, the company has grown into a global business empire with operations in over 40 countries.
4. Strategic Acquisitions: Fairfax Financial has a well-established track record of making strategic acquisitions. These acquisitions have helped the company expand its operations and enter into new markets, further diversifying its revenue streams.
5. Focus on Long-Term Value Creation: Instead of focusing on short-term gains, Fairfax Financial takes a long-term approach to its investments and operations. This allows the company to build sustainable growth and create value for its shareholders over the long run.
6. Strong Culture of Risk Management: Fairfax Financial has a strong culture of risk management, which is reflected in the company’s conservative investment approach and its ability to weather market downturns.
7. Commitment to Corporate Social Responsibility: Fairfax Financial is committed to giving back to the communities in which it operates. The company has various initiatives and programs focused on education, healthcare, and environmental conservation.
8. Consistently High Credit Ratings: Fairfax Financial has consistently received high credit ratings from major rating agencies, which reflects its strong financial position and ability to fulfill its financial obligations.
9. Exceptional Shareholder Returns: Fairfax Financial has delivered exceptional returns for its shareholders over the years. The company’s total shareholder return has outperformed major stock indices and its peers in the financial services industry.
10. Long-Term Outlook: Fairfax Financial has a proven track record of being able to navigate through various market cycles and deliver solid long-term returns for its shareholders. This makes it an attractive investment option for those looking for steady and stable returns.
What the company's business model?
Fairfax Financial is a holding company that primarily operates in the insurance and reinsurance industries. Its business model is based on acquiring and managing a diverse portfolio of insurance and reinsurance companies. This allows Fairfax Financial to spread its risks across different markets and classes of insurance, reducing its exposure to any one type of risk.
Fairfax Financial also invests in various other industries, including retail, energy, and technology, to diversify its sources of income. It also has a significant presence in emerging markets, particularly in Asia, where it has invested in various insurance companies.
The company’s primary source of revenue is through underwriting insurance policies and earning premiums on them. It also generates income through its investments, such as earning returns on its equity investments and interest income from its fixed-income securities.
Fairfax Financial’s key strategy is disciplined underwriting and a long-term investment approach, which focuses on generating profitable returns over the long term. The company also emphasizes prudence in risk management, emphasizing underwriting discipline, and maintaining a strong balance sheet.
Overall, Fairfax Financial’s business model is focused on building a diversified portfolio of profitable insurance and investment businesses that can generate sustainable earnings and value for its shareholders.
Fairfax Financial also invests in various other industries, including retail, energy, and technology, to diversify its sources of income. It also has a significant presence in emerging markets, particularly in Asia, where it has invested in various insurance companies.
The company’s primary source of revenue is through underwriting insurance policies and earning premiums on them. It also generates income through its investments, such as earning returns on its equity investments and interest income from its fixed-income securities.
Fairfax Financial’s key strategy is disciplined underwriting and a long-term investment approach, which focuses on generating profitable returns over the long term. The company also emphasizes prudence in risk management, emphasizing underwriting discipline, and maintaining a strong balance sheet.
Overall, Fairfax Financial’s business model is focused on building a diversified portfolio of profitable insurance and investment businesses that can generate sustainable earnings and value for its shareholders.
Interesting facts about the company
1. Fairfax Financial Holdings Limited is a Canadian insurance and investment company headquartered in Toronto, Ontario. It was founded in 1985 by its current chairman and CEO, Prem Watsa.
2. The company’s initial name was Markel Financial Holdings Limited, but it was changed to Fairfax Financial Holdings in 1987.
3. Fairfax Financial Holdings has operations in over 30 countries, with its primary businesses in property and casualty insurance, reinsurance, and investment management.
4. In 2017, the company’s investments were spread across different sectors, with financial services accounting for 35%, manufacturing and retail at 18%, and service, healthcare, and real estate at 13%.
5. Fairfax Financial Holdings is known for its successful track record of acquiring distressed companies, turning them around, and generating long-term value for its shareholders.
6. In 1990, the company was on the brink of bankruptcy after suffering significant losses from its investments in the stock market. However, Prem Watsa refused to sell the company and instead implemented a new investment strategy that eventually led to its recovery.
7. Fairfax Financial Holdings is heavily invested in the Indian subcontinent, with subsidiaries in India, Sri Lanka, and Bangladesh. The company has a 35% stake in the Indian insurance company ICICI Lombard, which is the largest non-life insurance company in India.
8. In 2010, Fairfax Financial Holdings acquired the majority stake in the Greek non-life insurance company Eurolife ERB for €298 million, making it one of the company’s largest investments in Europe.
9. In 2014, Fairfax Financial Holdings partnered with Berkshire Hathaway to acquire one of the largest water treatment companies in North America, the US-based NOVA Chemicals, for $4.9 billion.
10. The company has been recognized for its corporate social responsibility efforts, donating millions of dollars to various charities and foundations around the world. In 2005, Fairfax Financial Holdings was awarded the “Most Compassionate Corporation” by the Canadian Red Cross.
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2. The company’s initial name was Markel Financial Holdings Limited, but it was changed to Fairfax Financial Holdings in 1987.
3. Fairfax Financial Holdings has operations in over 30 countries, with its primary businesses in property and casualty insurance, reinsurance, and investment management.
4. In 2017, the company’s investments were spread across different sectors, with financial services accounting for 35%, manufacturing and retail at 18%, and service, healthcare, and real estate at 13%.
5. Fairfax Financial Holdings is known for its successful track record of acquiring distressed companies, turning them around, and generating long-term value for its shareholders.
6. In 1990, the company was on the brink of bankruptcy after suffering significant losses from its investments in the stock market. However, Prem Watsa refused to sell the company and instead implemented a new investment strategy that eventually led to its recovery.
7. Fairfax Financial Holdings is heavily invested in the Indian subcontinent, with subsidiaries in India, Sri Lanka, and Bangladesh. The company has a 35% stake in the Indian insurance company ICICI Lombard, which is the largest non-life insurance company in India.
8. In 2010, Fairfax Financial Holdings acquired the majority stake in the Greek non-life insurance company Eurolife ERB for €298 million, making it one of the company’s largest investments in Europe.
9. In 2014, Fairfax Financial Holdings partnered with Berkshire Hathaway to acquire one of the largest water treatment companies in North America, the US-based NOVA Chemicals, for $4.9 billion.
10. The company has been recognized for its corporate social responsibility efforts, donating millions of dollars to various charities and foundations around the world. In 2005, Fairfax Financial Holdings was awarded the “Most Compassionate Corporation” by the Canadian Red Cross.
See Company Due Diligence:
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