05:30 PM EDT, 05/01/2025 (MT Newswires) -- Fairfax Financial ( FRFHF ) on Thursday after-hours reported a higher first-quarter profit.

The company said it earned US$945.7 million, or US$42.70 per share, from US$776.5 million or US$30.82, for the prior year period. The increase was due to higher gains on investments, partly offset by a lower adjusted operating income of US$685.5 million, compared with last year's US$997.1 million, due to a lower underwriting profit as a result of the California wildfires.

Fairfax recorded an underwriting profit of US$97 million, a sharp decrease from the prior year period's US$373 million, while the combined operating ratio weakened to 98.5% from 93.6%.

"Despite the significant current period catastrophe losses of $781.3 million primarily from the California wildfires, our property and casualty insurance and reinsurance companies reported a consolidated combined ratio of 98.5% and consolidated underwriting profit of $96.9 million, on an undiscounted basis. Gross and net premiums written grew by 5.0% and 8.4%, reflecting new business and continued incremental rate increases in certain lines of business.," said Chief Executive Prem Watsa.