0.24%
-1.48%
13.88%
21.01%
40.59%
221.01%
232.74%
AI Spotlight on FFH
Company Description
Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally.The company operates through Insurance and Reinsurance, Run-off, and Non-Insurance Companies segments.It insures against losses to property from fire, explosion, earthquake, windstorm, flood, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance.
The company also offers workers' compensation, employer's liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other risks and liabilities insurance products; and reinsurance products.In addition, it retails home improvement goods, toys and baby products, golf equipment, sports apparel and accessories, housewares and home décors, and tableware and gifts; invests in retail business; and owns and operates holiday resorts.Further, the company provides integrated travel and travel-related financial services; originates, processes, and distributes pulses and staple foods; creates, produces, and distributes entertainment content; and provision of pet medical insurance and database services, as well as media and marketing solutions.
The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987.Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.
Market Data
| Last Price | 1970.37 |
| Change Percentage | 0.24% |
| Open | 1965.34 |
| Previous Close | 1965.74 |
| Market Cap ( Millions) | 45108 |
| Volume | 17563 |
| Year High | 2071.49 |
| Year Low | 1213.01 |
| M A 50 | 1985.82 |
| M A 200 | 1705.56 |
Financial Ratios
| FCF Yield | 12.26% |
| Dividend Yield | 1.58% |
| ROE | 17.43% |
| Debt / Equity | 44.53% |
| Net Debt / EBIDTA | 66.23% |
| Price To Book | 1.25 |
| Price Earnings Ratio | 7.42 |
| Price To FCF | 8.16 |
| Price To sales | 1.07 |
| EV / EBITDA | 11.29 |
News
- Jan -27 - Lloyd’s syndicate Ki becomes stand-alone entity within Fairfax Group
- Jan -24 - Why Is Billionaire Prem Watsa Bullish on Merck & Co., Inc. (MRK) Now?
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- Jan -23 - Why Is Prem Watsa Bullish On General Motors Company (GM) Now?
- Jan -23 - Why Is Prem Watsa Bullish On The Bank of Nova Scotia (BNS) Now?
- Jan -23 - Why Is Prem Watsa Bullish On Pfizer Inc. (PFE) Now?
- Jan -23 - Why Is Prem Watsa Bullish On Micron Technology (MU) Now?
- Jan -23 - Why Is Prem Watsa Bullish On Johnson & Johnson (JNJ) Now?
- Jan -23 - Why Is Prem Watsa Bullish On Colliers International Group Inc. (CIGI) Now?
- Jan -23 - Why Is Prem Watsa Bullish On KKR & Co. Inc. (KKR) Now?
- Jan -23 - Why Is Prem Watsa Bullish On Restaurant Brands International Inc. (QSR) Now?
- Jan -23 - Why Is Prem Watsa Bullish On Garrett Motion Inc. (GTX) Now?
- Jan -15 - Fairfax Donates US$1 Million to Support California Wildfire Relief
- Jan -14 - National Bank on Top Pick Fairfax Financial
- Jan -13 - Fairfax Financial Holdings Limited (FRFHF) Mirroring Alphyn Capital Management’s Investment Thesis
- Jan -10 - AM Best Affirms Credit Ratings of Colonnade Insurance S.A.
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Property and Casualty Insurance and Reinsurance
Expected Growth : 5 %
What the company do ?
Fairfax Financial Holdings Limited's Property and Casualty Insurance and Reinsurance segment provides insurance and reinsurance products to individuals and businesses, covering risks such as accidents, natural disasters, and liability.
Why we expect these perspectives ?
Fairfax Financial Holdings Limited's Property and Casualty Insurance and Reinsurance segment growth is driven by increasing demand for risk management solutions, expansion into emerging markets, strategic acquisitions, and a strong underwriting discipline. Additionally, the company's diversified portfolio, robust capital position, and effective risk management practices contribute to its 5% growth.
Segment n°2 -> Non-Insurance Companies
Expected Growth : 3 %
What the company do ?
Non-Insurance Companies from Fairfax Financial Holdings Limited include entities like Fairfax India Holdings, Fairfax Africa Holdings, and others, which operate in various sectors such as retail, manufacturing, and more.
Why we expect these perspectives ?
Fairfax Financial Holdings Limited's non-insurance companies have achieved 3% growth driven by strategic acquisitions, expansion into new markets, and increased demand for their products and services. Additionally, operational efficiencies, cost savings initiatives, and a strong management team have contributed to this growth.
Segment n°3 -> Life Insurance and Run-off
Expected Growth : 4 %
What the company do ?
Life Insurance provides financial protection to beneficiaries in the event of death, while Run-off refers to the management of inactive insurance policies from Fairfax Financial Holdings Limited.
Why we expect these perspectives ?
Fairfax Financial Holdings Limited's Life Insurance and Run-off segment growth is driven by increasing demand for protection products, expansion into emerging markets, and strategic acquisitions. Additionally, the company's disciplined underwriting practices, effective risk management, and strong capital position contribute to its growth. Furthermore, the segment benefits from favorable regulatory environments and a growing middle class in key markets.
Fairfax Financial Holdings Limited Products
| Product Range | What is it ? |
|---|---|
| Insurance | Fairfax Financial Holdings Limited offers a range of insurance products, including property, casualty, and specialty insurance, to individuals, businesses, and governments. |
| Reinsurance | Fairfax Financial Holdings Limited provides reinsurance products to other insurance companies, helping them manage risk and increase capacity. |
| Investments | Fairfax Financial Holdings Limited invests in a diversified portfolio of stocks, bonds, and other securities to generate returns and support its insurance operations. |
| Run-off Operations | Fairfax Financial Holdings Limited manages and resolves legacy insurance liabilities, providing a cost-effective solution for companies seeking to exit the insurance market. |
| Retail and Commercial Banking | Fairfax Financial Holdings Limited offers retail and commercial banking services, including loans, deposits, and credit cards, to individuals and businesses. |
Fairfax Financial Holdings Limited's Porter Forces
Threat Of Substitutes
Fairfax Financial Holdings Limited operates in the financial services industry, which is characterized by a moderate threat of substitutes. While there are alternative financial products and services available, the company's diversified portfolio and strong brand recognition mitigate the threat of substitutes.
Bargaining Power Of Customers
Fairfax Financial Holdings Limited's customers have limited bargaining power due to the company's diversified product offerings and strong market position. The company's ability to provide a range of financial services and products reduces the bargaining power of individual customers.
Bargaining Power Of Suppliers
Fairfax Financial Holdings Limited's suppliers have a moderate level of bargaining power. While the company relies on a network of suppliers for its operations, it has a diversified supply chain and is not heavily dependent on any single supplier.
Threat Of New Entrants
The threat of new entrants in the financial services industry is low due to the high barriers to entry, including regulatory requirements and the need for significant capital investments. Fairfax Financial Holdings Limited's established market position and brand recognition also make it difficult for new entrants to gain traction.
Intensity Of Rivalry
The financial services industry is highly competitive, with many established players competing for market share. Fairfax Financial Holdings Limited faces intense rivalry from other financial institutions, which can lead to pricing pressures and increased marketing expenses.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 32.00% |
| Debt Cost | 5.48% |
| Equity Weight | 68.00% |
| Equity Cost | 8.20% |
| WACC | 7.33% |
| Leverage | 47.05% |
Fairfax Financial Holdings Limited : Quality Control
Fairfax Financial Holdings Limited passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CINF | Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States. The company operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and … |
| MFC.TO | Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance … |
| PGR | The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, general liability, and other specialty property-casualty insurance products and related services in the … |
| IFC.TO | Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada, the United States, the United Kingdom, Ireland, rest of Europe, and the … |
| TFC | Truist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Manulife
A-Score
1-Year Total Return ->
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Cincinnati Financial
A-Score
1-Year Total Return ->
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Truist
A-Score
1-Year Total Return ->
4
Intact Financial
A-Score
1-Year Total Return ->
5
Fairfax Financial Holdings
A-Score
1-Year Total Return ->
6
