Overview

* Fairfax Q2 net earnings rise to $1,436.7 mln, driven by investment gains

* Gross premiums written increase 2.6%, reflecting new reinsurance and casualty business

Outlook

* Company expects common stock positions to perform well long term

* Company expects net gains will fluctuate from quarter to quarter

Result Drivers

* INVESTMENT GAINS - Net gains on investments of $952 mln, primarily from common stocks, drove earnings increase, per CEO Prem Watsa

* UNDERWRITING PERFORMANCE - "Strong" underwriting performance contributed to adjusted operating income of $1,130 mln

* PREMIUM GROWTH - Gross premiums written grew by 2.6%, driven by new reinsurance and casualty business

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Gross $9.18

Premiums bln

Q2 Net $1.60

Income bln

Q2 $1.95

Pretax bln

Profit

Q2 $952 mln

Investme

nts

Gains/Lo

sses

Q2 $426.90

Underwri mln

ting

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy"

* Wall Street's median 12-month price target for Fairfax Financial Holdings Ltd ( FRFHF ) is C$2,790.93, about 11.8% above its July 30 closing price of C$2,461.12

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)