Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information | |
Entity Registrant Name | FAIRFAX FINANCIAL HOLDINGS LTD/ CAN |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 1-31556 |
Entity Primary SIC Number | 6331 |
Entity Incorporation, State or Country Code | Z4 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | 95 Wellington Street West |
Entity Address, Address Line Two | Suite 800 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5J 2N7 |
City Area Code | 416 |
Local Phone Number | 367-4941 |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Central Index Key | 0000915191 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 271 |
Subordinate voting shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 23,116,830 |
Multiple voting shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 1,548,000 |
Business Contact | |
Document Information | |
Contact Personnel Name | CT Corporation System |
Entity Address, Address Line One | 111 Eighth Avenue |
Entity Address, Address Line Two | 13th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10011 |
City Area Code | 212 |
Local Phone Number | 894-8700 |
Consolidated Balance Sheets
Consolidated Balance Sheets $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Assets | ||
Holding company cash and investments (including assets pledged for derivative obligations - $111.0; December 31, 2020 - $79.5) | $ 1,478.3 | $ 1,252.2 |
Insurance contract receivables | 6,883.2 | 5,816.1 |
Portfolio investments | ||
Subsidiary cash and short term investments (including restricted cash and cash equivalents - $1,246.4;December 31, 2020 - $751.9) | 11,685.4 | 4,467.1 |
Investments in associates (fair value $5,671.9; December 31, 2020 - $4,154.3) | 6,104 | 6,439.6 |
Total portfolio investments | 51,697.4 | 42,108.6 |
Deferred premium acquisition costs | 1,924.1 | 1,543.7 |
Recoverable from reinsurers (including recoverables on paid losses - $884.3; December 31, 2020 - $686.8) | 12,090.5 | 10,533.2 |
Deferred income tax assets | 522.4 | 713.9 |
Goodwill and intangible assets | 5,928.2 | 6,229.1 |
Other assets | 6,121.3 | 5,857.2 |
Total assets | 86,645.4 | 74,054 |
Liabilities | ||
Accounts payable and accrued liabilities | 4,985.4 | 4,996.1 |
Derivative obligations (including at the holding company - $32.1; December 31, 2020 - $22.8) | 152.9 | 189.4 |
Deferred income tax liabilities | 598.8 | 356.4 |
Insurance contract payables | 4,493.5 | 2,964 |
Insurance contract liabilities | 47,346.5 | 39,206.8 |
Borrowings | 7,753 | 8,814 |
Total liabilities | 65,330.1 | 56,526.7 |
Equity | ||
Shareholders' equity attributable to shareholders of Fairfax | 16,385.1 | 13,856.6 |
Non-controlling interests | 4,930.2 | 3,670.7 |
Total equity | 21,315.3 | 17,527.3 |
Total liabilities and total equity | 86,645.4 | 74,054 |
Common shares | ||
Equity | ||
Equity in stock | 15,049.6 | 12,521.1 |
Preferred shares | ||
Equity | ||
Equity in stock | 1,335.5 | 1,335.5 |
Portfolio investments | ||
Portfolio investments | ||
Subsidiary cash and short term investments (including restricted cash and cash equivalents - $1,246.4;December 31, 2020 - $751.9) | 21,799.5 | 13,197.8 |
Bonds (cost $13,836.3; December 31, 2020 - $14,916.1) | 14,091.2 | 15,734.6 |
Preferred stocks (cost $576.6; December 31, 2020 - $268.3) | 2,405.9 | 605.2 |
Common stocks (cost $4,717.2; December 31, 2020 - $4,635.5) | 5,468.9 | 4,599.1 |
Investments in associates (fair value $5,671.9; December 31, 2020 - $4,154.3) | 4,755.1 | 4,381.8 |
Investment in associate held for sale (fair value nil; December 31, 2020 - $729.5) | 729.5 | |
Derivatives and other invested assets (cost $888.2; December 31, 2020 - $944.4) | 991.2 | 812.4 |
Assets pledged for derivative obligations (cost $119.6; December 31, 2020 - $196.1) | 119.6 | 196.4 |
Total portfolio investments | 51,697.4 | 42,108.6 |
Portfolio investments | Non-insurance companies, Fairfax India | ||
Portfolio investments | ||
Fairfax India cash, portfolio investments and associates (fair value $3,336.4; December 31, 2020 - $2,791.0) | 2,066 | 1,851.8 |
Holding company and insurance and reinsurance companies | ||
Liabilities | ||
Borrowings | 6,129.3 | 6,614 |
Non-insurance companies | ||
Portfolio investments | ||
Other assets | 3,195.6 | 3,868.5 |
Liabilities | ||
Accounts payable and accrued liabilities | 2,077.2 | 2,566.4 |
Borrowings | $ 1,623.7 | $ 2,200 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement [Line Items] | ||
Restricted cash and cash equivalents | $ 1,261 | $ 789.6 |
Recoverables on paid losses | 884.3 | 686.8 |
Short sale and derivative obligations, holding company | 152.9 | 189.4 |
Holding company cash and investments | ||
Statement [Line Items] | ||
Assets pledged for derivative obligations, at cost | 111 | 79.5 |
Short sale and derivative obligations, holding company | 32.1 | 22.8 |
Portfolio investments | ||
Statement [Line Items] | ||
Restricted cash and cash equivalents | 1,246.4 | 751.9 |
Bonds, at cost | 13,836.3 | 14,916.1 |
Preferred stocks, at cost | 576.6 | 268.3 |
Common stocks, at cost | 4,717.2 | 4,635.5 |
Fair value of investments in associates | 5,671.9 | 4,154.3 |
Fair value of investments in associates held-for-sale | 0 | 729.5 |
Derivatives and other invested assets, at cost | 888.2 | 944.4 |
Assets pledged for derivative obligations, at cost | 119.6 | 196.1 |
Portfolio investments | Non-insurance companies, Fairfax India | ||
Statement [Line Items] | ||
Fairfax India cash, portfolio investments and associates, fair value | $ 3,336.4 | $ 2,791 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income | ||
Gross premiums earned | $ 21,786.8 | $ 17,898.8 |
Premiums ceded to reinsurers | (5,228.8) | (3,910.1) |
Net premiums earned | 16,558 | 13,988.7 |
Interest and dividends | 640.8 | 769.2 |
Share of profit (loss) of associates | 402 | (112.8) |
Net gains on investments | 3,445.1 | 313.1 |
Gain on sale and consolidation of insurance subsidiaries | 264 | 117.1 |
Other revenue | 5,158 | 4,719.6 |
Income | 26,467.9 | 19,794.9 |
Expenses | ||
Losses on claims, gross | 14,200.7 | 12,234.8 |
Losses on claims, ceded to reinsurers | (3,460.2) | (2,910.3) |
Losses on claims, net | 10,740.5 | 9,324.5 |
Operating expenses | 2,946.1 | 2,536.5 |
Commissions, net | 2,787.9 | 2,355 |
Interest expense | 513.9 | 475.9 |
Other expenses | 5,086.9 | 4,858.9 |
Expenses | 22,075.3 | 19,550.8 |
Earnings before income taxes | 4,392.6 | 244.1 |
Provision for income taxes | 726 | 206.7 |
Net earnings | 3,666.6 | 37.4 |
Attributable to: | ||
Shareholders of Fairfax | 3,401.1 | 218.4 |
Non-controlling interests | 265.5 | (181) |
Net earnings | $ 3,666.6 | $ 37.4 |
Net earnings per share (in dollars per share) | $ 129.33 | $ 6.59 |
Net earnings per diluted share (in dollars per share) | 122.25 | 6.29 |
Cash dividends paid per share (in dollars per share) | $ 10 | $ 10 |
Shares outstanding (000) (weighted average) (in shares) | 25,953,114 | 26,446,939 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Earnings | ||
Gross premiums written | $ 23,910.2 | $ 19,125.9 |
Net premiums written | $ 18,278.1 | $ 14,864.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement [Line Items] | ||
Net earnings | $ 3,666.6 | $ 37.4 |
Items that may be subsequently reclassified to net earnings | ||
Net unrealized foreign currency translation losses on foreign subsidiaries | (199.5) | (139.7) |
Share of other comprehensive income (loss) of associates, excluding net gains (losses) on defined benefit plans | (75.1) | 72.2 |
Items that may be subsequently reclassified to net earnings before reclassification adjustments | (227.4) | (181.3) |
Net unrealized foreign currency translation losses on foreign subsidiaries reclassified to net earningset of tax | 6.7 | 114.4 |
Net unrealized foreign currency translation (gains) losses on associates reclassified to net earnings | (45.2) | 69.5 |
Items that may be subsequently reclassified to net earnings | (265.9) | 2.6 |
Items that will not be subsequently reclassified to net earnings | ||
Net gains (losses) on defined benefit plans | 88.2 | (67.5) |
Share of net gains (losses) on defined benefit plans of associates | 67 | (51.1) |
Other | 13.8 | |
Items that will not be subsequently reclassified to net earnings | 169 | (118.6) |
Other comprehensive income (loss), net of income taxes | (96.9) | (116) |
Comprehensive income (loss) | 3,569.7 | (78.6) |
Attributable to: | ||
Shareholders of Fairfax | 3,377.6 | 103 |
Non-controlling interests | 192.1 | (181.6) |
Comprehensive income (loss) | 3,569.7 | (78.6) |
Income tax on items that may be subsequently reclassified to net earnings | ||
Net unrealized foreign currency translation losses on foreign subsidiaries | 5.2 | 10.8 |
Share of other comprehensive income (loss) of associates, excluding net gains (losses) on defined benefit plans | 12.7 | (10) |
Income tax on items that may be reclassified to net earnings | 17.9 | 0.8 |
Net unrealized foreign currency translation (gains) losses on foreign subsidiaries reclassified to net earnings (loss) | 0.1 | |
Income tax on items that may be subsequently reclassified to net earnings | 17.9 | 0.9 |
Income tax on items that will not be subsequently reclassified to net earnings | ||
Net gains (losses) on defined benefit plans | (27.4) | 20.8 |
Share of net gains (losses) on defined benefit plans of associates | (12.8) | 5.3 |
Income tax on items that will not be subsequently reclassified to net earnings | (40.2) | 26.1 |
Total income tax (expense) recovery included in other comprehensive income (loss) | (22.3) | 27 |
Canada | ||
Statement [Line Items] | ||
Net earnings | 667.2 | 91.6 |
Items that may be subsequently reclassified to net earnings | ||
Gains (losses) on hedge of net investment | (16.7) | (38) |
Europe | ||
Items that may be subsequently reclassified to net earnings | ||
Gains (losses) on hedge of net investment | $ 63.9 | $ (75.8) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Issued capitalCommon shares | Issued capitalPreferred shares | Treasury shares at cost | Share- based payments and other reserves | Retained earnings | Accumulated other comprehensive income (loss)Canada | Accumulated other comprehensive income (loss)Europe | Accumulated other comprehensive income (loss) | Common shareholders' equityCanada | Common shareholders' equityEurope | Common shareholders' equity | Equity attributable to shareholders of FairfaxCanada | Equity attributable to shareholders of FairfaxEurope | Equity attributable to shareholders of Fairfax | Non-controlling interests. | Preferred shares | Canada | Europe | Total |
Beginning balance at Dec. 31, 2019 | $ 6,797.2 | $ 1,335.5 | $ (661.1) | $ 239 | $ 7,379.2 | $ (711.7) | $ 13,042.6 | $ 14,378.1 | $ 3,529.1 | $ 17,907.2 | |||||||||
Changes in equity [abstract] | |||||||||||||||||||
Net earnings (loss) for the year | 218.4 | 218.4 | 218.4 | (181) | $ 91.6 | 37.4 | |||||||||||||
Net unrealized foreign currency translation losses on foreign operations | (117.2) | (117.2) | (117.2) | (22.5) | (139.7) | ||||||||||||||
Losses on hedge of net investment | $ (38) | $ (75.8) | $ (38) | $ (75.8) | $ (38) | $ (75.8) | (38) | $ (75.8) | |||||||||||
Share of other comprehensive income of associates, excluding net losses on defined benefit plans | 43.6 | 43.6 | 43.6 | 28.6 | 72.2 | ||||||||||||||
Net unrealized foreign currency translation losses on foreign subsidiaries reclassified to net earnings | 114.4 | 114.4 | 114.4 | 114.4 | |||||||||||||||
Net unrealized foreign currency translation (gains) losses on associates reclassified to net earnings | 69.5 | 69.5 | 69.5 | 69.5 | |||||||||||||||
Net losses on defined benefit plans | (66) | (66) | (66) | (1.5) | (67.5) | ||||||||||||||
Share of net losses on defined benefit plans of associates | (45.9) | (45.9) | (45.9) | (5.2) | (51.1) | ||||||||||||||
Issuances for share-based payments | 56.7 | (66.5) | (9.8) | (9.8) | (2.2) | (12) | |||||||||||||
Purchases and amortization for share-based payments (note 16) | (137.9) | 84.3 | (53.6) | (53.6) | 5.5 | (48.1) | |||||||||||||
Purchases for cancellation (note 16) | (85.2) | (15.7) | (100.9) | (100.9) | (100.9) | ||||||||||||||
Common share dividends (note 16) | (275.7) | (275.7) | (275.7) | (165.6) | (441.3) | ||||||||||||||
Preferred share dividends (note 16) | (44) | (44) | (44) | $ (44) | (44) | ||||||||||||||
Acquisitions of subsidiaries (note 23) | 92.9 | 92.9 | |||||||||||||||||
Deconsolidation of subsidiaries (note 23) | 9.5 | (10.9) | (53.2) | 28 | (26.6) | (26.6) | 282.3 | 255.7 | |||||||||||
Other net changes in capitalization (note 16) | 2.5 | (116.5) | 0.1 | (113.9) | (113.9) | 110.3 | (3.6) | ||||||||||||
Ending balance at Dec. 31, 2020 | 6,712 | 1,335.5 | (732.8) | 248.4 | 7,092.5 | (799) | 12,521.1 | 13,856.6 | 3,670.7 | 17,527.3 | |||||||||
Changes in equity [abstract] | |||||||||||||||||||
Net earnings (loss) for the year | 3,401.1 | 3,401.1 | 3,401.1 | 265.5 | 667.2 | 3,666.6 | |||||||||||||
Net unrealized foreign currency translation losses on foreign operations | (123.3) | (123.3) | (123.3) | (76.2) | (199.5) | ||||||||||||||
Losses on hedge of net investment | $ (16.7) | $ 63.9 | $ (16.7) | $ 63.9 | $ (16.7) | $ 63.9 | $ (16.7) | $ 63.9 | |||||||||||
Share of other comprehensive income of associates, excluding net losses on defined benefit plans | (65.2) | (65.2) | (65.2) | (9.9) | (75.1) | ||||||||||||||
Net unrealized foreign currency translation losses on foreign subsidiaries reclassified to net earnings | 3.1 | 3.1 | 3.1 | 3.6 | 6.7 | ||||||||||||||
Net unrealized foreign currency translation (gains) losses on associates reclassified to net earnings | (45.6) | (45.6) | (45.6) | 0.4 | (45.2) | ||||||||||||||
Net losses on defined benefit plans | 82.8 | 82.8 | 82.8 | 5.4 | 88.2 | ||||||||||||||
Share of net losses on defined benefit plans of associates | 68.3 | 68.3 | 68.3 | (1.3) | 67 | ||||||||||||||
Other | 9.2 | 9.2 | 9.2 | 4.6 | 13.8 | ||||||||||||||
Issuances for share-based payments | 57.3 | (56.1) | 1.2 | 1.2 | (3) | (1.8) | |||||||||||||
Purchases and amortization for share-based payments (note 16) | (132.6) | 104.1 | (28.5) | (28.5) | 6.8 | (21.7) | |||||||||||||
Purchases for cancellation (note 16) | (529.6) | (528.5) | (1,058.1) | (1,058.1) | (1,058.1) | ||||||||||||||
Common share dividends (note 16) | (272.1) | (272.1) | (272.1) | (155.4) | (427.5) | ||||||||||||||
Preferred share dividends (note 16) | (44.5) | (44.5) | (44.5) | $ (44.5) | (44.5) | ||||||||||||||
Acquisitions of subsidiaries (note 23) | 7.5 | 7.5 | |||||||||||||||||
Deconsolidation of subsidiaries (note 23) | (15.4) | (15.4) | |||||||||||||||||
Other net changes in capitalization (note 16) | 208.4 | 323.7 | 20.8 | 552.9 | 552.9 | 1,226.9 | 1,779.8 | ||||||||||||
Ending balance at Dec. 31, 2021 | $ 6,182.4 | $ 1,335.5 | $ (808.1) | $ 504.8 | $ 9,972.2 | $ (801.7) | $ 15,049.6 | $ 16,385.1 | $ 4,930.2 | $ 21,315.3 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Multiple voting shares | Issued capital. | |||
Common stock, multiple voting shares, value | $ 3.8 | $ 3.8 | $ 3.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | ||
Net earnings | $ 3,666.6 | $ 37.4 |
Depreciation, amortization and impairment charges | 930.4 | 752.1 |
Net bond premium (discount) amortization | 65 | (11.5) |
Amortization of share-based payment awards | 104.1 | 84.3 |
Share of (profit) loss of associates | (402) | 112.8 |
Net deferred income taxes | 339 | 57.9 |
Net gains on investments | (3,386.5) | (297.9) |
Gain on sale and consolidation of insurance subsidiaries | (264) | (117.1) |
Loss on repurchase of borrowings | 45.7 | |
Net increase in fair value of investment property | (58.6) | (15.2) |
Net (purchases) sales of securities classified at FVTPL | 2,614.4 | (2,336.2) |
Changes in operating assets and liabilities | 2,986.9 | 1,873.2 |
Cash provided by operating activities | 6,641 | 139.8 |
Investing activities | ||
Sales of investments in associates | 809.2 | 139.8 |
Purchases of investments in associates | (175.4) | (29.8) |
Net purchases of premises and equipment and intangible assets | (353.9) | (273.3) |
Net (purchases) sales of investment property | 27 | (7.8) |
Purchases of subsidiaries, net of cash acquired | 1,259.5 | |
Cash provided by (used in) investing activities | 1,838.6 | (46.8) |
Financing activities | ||
Net borrowings from (repayments to) revolving credit facility and short term loans | (1,046.3) | 750.5 |
Purchases for treasury | (132.6) | (137.9) |
Purchases for cancellation | (1,058.1) | (100.9) |
Common share dividends | (272.1) | (275.7) |
Preferred share dividends | (44.5) | (44) |
Issuances to non-controlling interests, net of issuance costs | 1,603.2 | 218.2 |
Purchases of non-controlling interests | (233) | (251.2) |
Sales to non-controlling interests | 174.8 | |
Dividends paid to non-controlling interests | (175.6) | (165.6) |
Cash provided by (used in) financing activities | (1,189.3) | 436.9 |
Increase in cash and cash equivalents | 7,290.3 | 529.9 |
Cash and cash equivalents - beginning of year | 4,467.1 | 3,863.3 |
Foreign currency translation | (72) | 73.9 |
Cash and cash equivalents - end of year | 11,685.4 | 4,467.1 |
Holding company and insurance and reinsurance companies | ||
Investing activities | ||
Cash divested on deconsolidation of non-insurance subsidiary | 85.4 | 221.7 |
Financing activities | ||
Proceeds, net of issuance costs | 1,250 | 645 |
Repayments | (932.9) | (0.3) |
Net borrowings (repayments) on holding company credit facility | (700) | 700 |
Net repayments on other revolving credit facilities | (84.3) | (10) |
Principal payments on lease liabilities | (64.6) | (61.9) |
Non-insurance companies. | ||
Investing activities | ||
Cash divested on deconsolidation of non-insurance subsidiary | 186.8 | (97.4) |
Financing activities | ||
Proceeds, net of issuance costs | 499.1 | 107.8 |
Repayments | (593.9) | (82.5) |
Net borrowings from (repayments to) revolving credit facility and short term loans | (262) | 60.5 |
Principal payments on lease liabilities | $ (162.8) | $ (164.6) |
Business Operations
Business Operations | 12 Months Ended |
Dec. 31, 2021 | |
Business Operations | |
Business Operations | 1. Business Operations Fairfax Financial Holdings Limited (“the company” or “Fairfax”) is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management. The holding company is federally incorporated and domiciled in Ontario, Canada. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation | |
Basis of Presentation | 2. Basis of Presentation The company’s consolidated financial statements for the year ended December 31, 2021 are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments, investment property and fair value through profit and loss (“FVTPL”) financial assets and liabilities that have been measured at fair value, and an investment in associate held for sale that has been measured at the lower of carrying value and fair value less costs to sell. The consolidated balance sheets of the company are presented on a non-classified basis. Assets expected to be realized and liabilities expected to be settled within the company’s normal operating cycle of one year are considered current, including the following balances: cash, short term investments, insurance contract receivables, investment in associate held for sale, deferred premium acquisition costs, derivative obligations and insurance contract payables. The following balances are considered non-current: deferred income tax assets, goodwill and intangible assets and deferred income tax liabilities. All other balances are comprised of current and non-current amounts. The holding company has significant liquid resources that are generally not restricted by insurance regulators. The subsidiary insurance and reinsurance companies are often subject to a wide variety of insurance and other laws and regulations that vary by jurisdiction and are intended to protect policyholders rather than investors. These laws and regulations may limit the ability of the insurance and reinsurance companies to pay dividends or make distributions to parent companies. The company’s consolidated balance sheet and consolidated statement of cash flows therefore make a distinction in classification between the holding company and the insurance and reinsurance companies for cash and investments to provide additional insight into the company’s liquidity, financial leverage and capital structure. These consolidated financial statements were approved for issue by the company’s Board of Directors on March 4, 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies The principal accounting policies applied to the presentation of these consolidated financial statements and the methods of computation have been consistently applied to all periods presented unless otherwise stated, and are as set out below. Consolidation Subsidiaries is recognized in the consolidated statement of earnings, and foreign currency translation gains (losses) of that subsidiary are recycled from accumulated other comprehensive income (loss) to the consolidated statement of earnings. The consolidated financial statements were prepared as of December 31, 2021 and 2020 based on individual holding companies’ and subsidiaries’ financial statements at those dates. Accounting policies of subsidiaries have been aligned with those of the company where necessary. The company’s significant operating subsidiaries are identified in note 29. Non-controlling interests Business combinations Business combinations are accounted for using the acquisition method of accounting whereby the consideration transferred is measured at fair value at the date of acquisition. This consideration may include cash paid and the fair value at the date of exchange of assets given, liabilities assumed and equity instruments issued by the company or its subsidiaries. Directly attributable acquisition-related costs are recorded in operating expenses or other expenses in the consolidated statement of earnings as incurred. At the date of acquisition, the company recognizes the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired business. The identifiable assets acquired and liabilities assumed are initially recognized at fair value. For each business combination the company determines whether to initially record non-controlling interest at fair value or as the proportionate share of the identifiable net assets of the acquired subsidiary. If the consideration transferred is less than the fair value of identifiable net assets acquired, the excess is recognized in the consolidated statement of earnings. An existing equity interest in an acquired subsidiary is remeasured to fair value at the date of the business combination with any gain or loss recognized in net gains (losses) on investments in the consolidated statement of earnings. Goodwill and intangible assets Goodwill Intangible assets Intangible assets are initially recognized at cost, or at fair value when acquired through a business combination. Intangible assets with a finite life are subsequently measured at cost less accumulated amortization and impairment, where amortization is calculated using the straight-line method over the estimated useful life, and carrying value is re-assessed when there are indicators of impairment. Indefinite-lived intangible assets are not subject to amortization and are assessed annually for impairment or more frequently if there are indicators of impairment. When the carrying value of an intangible asset exceeds its recoverable amount, an impairment loss is recorded in operating expenses or other expenses in the consolidated statement of earnings. The estimated useful lives of the company’s intangible assets are as follows: Customer and broker relationships 8 to 20 years Brand names and Lloyd's participation rights Indefinite Computer software 3 to 15 years Brand names and Lloyd’s participation rights are considered to be indefinite-lived based on their strength, history and expected future use. Investments in associates Investments in associates are accounted for using the equity method and are comprised of investments in corporations, limited partnerships and trusts where the company has the ability to exercise significant influence but not control. An investment in associate is initially recognized at cost and adjusted thereafter for the post-acquisition change in the company’s share of net assets of the associate. The company’s share of profit (loss) and share of other comprehensive income (loss) of associates are reported in the corresponding lines in the consolidated statement of earnings and consolidated statement of comprehensive income, respectively. An existing equity interest in an acquired associate is remeasured to fair value at the date significant influence is obtained and included in the carrying value of the associate. The fair value of associates is estimated at each reporting date using valuation techniques consistent with those applied to the company’s other investments in equity instruments. See “Determination of fair value” under the heading of “Investments” in this note for further details. If there is objective evidence that the carrying value of an associate is impaired, it is written down to its recoverable amount, being the higher of the associate’s fair value and value-in-use. The unrealized impairment loss is recognized in share of profit (loss) of associates in the consolidated statement of earnings. An impairment loss is reversed in future periods if the circumstances that led to the impairment no longer exist. The reversal is limited to restoring the carrying value to what it would have been had no impairment loss been recognized in prior periods. Upon loss of significant influence, any retained equity interest classified as a financial asset is remeasured to fair value and all amounts previously recognized in other comprehensive income (loss) are recycled to the consolidated statement of earnings except those related to defined benefit pension or post retirement plans which are reclassified to retained earnings. Gains and losses on loss of significant influence or disposition of an associate are recognized in net gains (losses) on investments in the consolidated statement of earnings. Investments in joint ventures Investments in joint ventures are accounted for using the equity method (as described in the preceding paragraphs) and are comprised of investments in corporations and limited partnerships where the company has joint control together with one or more third parties by contractual agreement. Joint control requires the unanimous consent of all parties sharing control to make decisions regarding the joint venture’s relevant activities. When a subsidiary constituting a business is contributed to a joint venture, any gain or loss on derecognition of the subsidiary, including recycling of applicable amounts in accumulated other comprehensive income (loss) and remeasurement to fair value of any retained interest in the subsidiary, is recognized in the consolidated statement of earnings. Upon loss of joint control, any retained equity interest classified as a financial asset is remeasured to fair value and all amounts previously recognized in other comprehensive income (loss) are reclassified to the consolidated statement of earnings except those related to defined benefit pension or post retirement plans which are reclassified to retained earnings. Gains and losses on loss of joint control or disposition of a joint venture are recognized in net gains (losses) on investments in the consolidated statement of earnings. Investments in joint ventures and all related activity are presented with investments in associates in these consolidated financial statements. Consolidated statement of cash flows The company’s consolidated statement of cash flows is prepared in accordance with the indirect method, classifying cash flows by operating, investing and financing activities. Cash and cash equivalents Investments Investments include cash and cash equivalents, short term investments, bonds, equity instruments, investments in associates, derivative assets, other invested assets (primarily investment property) and derivative obligations. Management determines the appropriate classifications of investments at their acquisition date. Classification - Recognition and measurement - Subsequent to initial recognition, investments classified at FVTPL are measured at fair value with changes in fair value reported in the consolidated statement of earnings as income, comprised of interest and dividends and net gains (losses) on investments. Interest and dividends represent interest income on short term investments and bonds calculated using the effective interest method, and dividends received on holdings of common stocks and preferred stocks, net of investment expenses. All other changes in fair value are reported in net gains (losses) on investments in the consolidated statement of earnings. For short term investments and bonds, the sum of their interest income and net gains (losses) on investments is equal to their total change in fair value for the reporting period. For investments classified at FVTPL, the company further disaggregates net gains (losses) on investments into realized and unrealized components in note 5. Where a financial instrument continues to be held by the company at the end of a reporting period, changes in the fair value of that instrument during the reporting period, excluding those changes reported as interest and dividends, are presented in net change in unrealized gains (losses). On disposition or as a result of a change in accounting for that financial instrument, its inception-to-date net gain (loss), excluding those changes previously reported as interest and dividends, is presented as net realized gains (losses). The cumulative unrealized net gain (loss) recognized in prior periods on that financial instrument is then reversed in net change in unrealized gains (losses). The sum of the inception-to-date net gain (loss) and the cumulative reversal of prior period net unrealized gains (losses) equals that financial instrument’s net gain (loss) on investment for the current reporting period as presented in the consolidated statement of earnings. Interest and dividends and net gains (losses) on investments are reported as operating activities in the consolidated statement of cash flows. Derecognition Short term investments Bonds Derivatives The company uses derivatives for investment purposes and to mitigate financial risks arising from its investment holdings and reinsurance recoverables, and monitors its derivatives for effectiveness in achieving their risk management objectives where applicable. The fair value of derivatives in a gain position are presented on the consolidated balance sheet in holding company cash and investments, and in portfolio investments as derivatives and other invested assets. The fair value of derivatives in a loss position are presented on the consolidated balance sheet in derivative obligations. The initial premium paid for a derivative contract, if any, is recorded as a derivative asset and subsequently adjusted for changes in the fair value of the contract at each reporting date. Changes in the fair value of derivatives are recorded as net gains (losses) on investments in the consolidated statement of earnings. Cash received from counterparties as collateral for derivative contracts is recognized on the consolidated balance sheet in holding company cash and investments or subsidiary cash and short term investments, and a corresponding liability is recognized in accounts payable and accrued liabilities. Securities received from counterparties as collateral are not recorded as assets. Cash and securities delivered to counterparties as collateral for derivative contracts continue to be reflected as assets on the consolidated balance sheet in holding company cash and investments or in portfolio investments as assets pledged for derivative obligations. The portion of the collateral related to changes in fair value of derivative contracts may be repledged by the counterparties holding the collateral. Determination of fair value Level 1 - Inputs represent unadjusted quoted prices for identical instruments exchanged in active markets. The fair values of the majority of the company’s common stocks, equity call options and certain warrants are based on published quotes in active markets. Level 2 - Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar financial instruments exchanged in active markets, quoted prices for identical or similar financial instruments exchanged in inactive markets and other market observable inputs. The fair value of the vast majority of the company’s investments in bonds are priced based on information provided by independent pricing service providers while much of the remainder, along with most derivative contracts (including total return swaps, U.S. treasury bond forward contracts and certain warrants) are based primarily on non-binding third party broker-dealer quotes that are prepared using Level 2 inputs. Where third party broker-dealer quotes are used, typically one quote is obtained from a broker-dealer with particular expertise in the instrument being priced. Preferred stocks are priced using a combination of independent pricing service providers and internal valuation models that rely on directly or indirectly observable inputs. The fair values of investments in certain limited partnerships classified as common stocks on the consolidated balance sheet are based on the net asset values received from the general partner, adjusted for liquidity as required and are classified as Level 2 when they may be liquidated or redeemed within three months or less of providing notice to the general partner. All other such investments in limited partnerships are classified as Level 3. Level 3 - Inputs include unobservable inputs that management uses to develop assumptions for which market data is limited or unavailable at the measurement date. In some instances, such as for private company preferred shares, management will use limited recent market transactions that are corroborated by industry accepted discounted cash flow models that incorporate one or more unobservable inputs. Transfers between fair value hierarchy levels are considered effective from the beginning of the annual reporting period in which the transfer is identified. Valuation techniques used by the company’s independent pricing service providers and third party broker-dealers include use of prices from similar instruments where observable market prices exist, discounted cash flow analysis, option pricing models, and other valuation techniques commonly used by market participants. The company assesses the reasonableness of pricing received from these third party sources by comparing the fair values received to recent transaction prices for similar assets where available, to industry accepted discounted cash flow models (that incorporate estimates of the amount and timing of future cash flows and market observable inputs such as credit spreads and discount rates) and to option pricing models (that incorporate market observable inputs including the quoted price, volatility and dividend yield of the underlying security and the risk free rate). The company employs specialist personnel for the valuation of its investment portfolio. Detailed valuations are prepared for those financial instruments that are priced internally, while external pricing received from independent pricing service providers and third party broker-dealers are evaluated by the company for reasonableness. The company’s Chief Financial Officer oversees the valuation function and regularly reviews valuation processes and results, including at each quarterly reporting period. Significant valuation matters, particularly those requiring extensive judgment, are communicated to the company’s Audit Committee. Foreign currency translation Functional and presentation currency Foreign currency transactions Translation of foreign subsidiaries Hedging At the inception of a hedge transaction the company documents the economic relationship between the hedged item and hedging instrument, and its risk management objective and strategy for undertaking the hedge. Net investment hedge Comprehensive income (loss) Comprehensive income (loss) consists of net earnings (loss) and other comprehensive income (loss) and includes all changes in total equity during a reporting period, except for those resulting from investments by owners or distributions to owners. Unrealized foreign currency translation amounts arising from the translation of foreign subsidiaries and associates and the effective portion of changes in the fair value of hedging instruments on hedges of net investments in foreign subsidiaries and associates are recognized in other comprehensive income (loss) and included in accumulated other comprehensive income (loss) until recycled to the consolidated statement of earnings on disposal of an investment in a foreign subsidiary or associate. Actuarial gains and losses and changes in asset limitation amounts on defined benefit pension and post retirement plans are recorded in other comprehensive income (loss) and included in accumulated other comprehensive income (loss) without recycling to the consolidated statement of earnings. Upon settlement of the defined benefit plan or disposal of the related subsidiary or associate, those amounts are reclassified directly to retained earnings. Accumulated other comprehensive income (loss), net of income taxes, is included on the consolidated balance sheet as a component of common shareholders’ equity. Property and casualty insurance contracts Insurance contracts are those contracts that have significant insurance risk at the inception of the contract. Insurance risk arises when the company agrees to compensate a policyholder if a specified uncertain future event adversely affects the policyholder, with the possibility of paying (including variability in timing of payments) significantly more in a scenario where the insured event occurs than when it does not occur. Contracts not meeting the definition of an insurance contract under IFRS are classified as investment contracts, derivative contracts or service contracts, as appropriate. Revenue recognition Deferred premium acquisition costs Provision for losses and loss adjustment expenses estimates of possible outcomes aimed at evaluating the expected ultimate cost to settle unpaid claims that occurred on or before the balance sheet date. The company establishes its reserves by product line, type and extent of coverage and year of occurrence. Loss reserves fall into two categories: reserves for reported losses (case reserves) and reserves for incurred but not reported (“IBNR”) losses. Those reserves include amounts for loss adjustment expenses, such as the estimated legal and other expenses expected to be incurred to finalize the settlement of the losses. Losses and loss adjustment expenses are charged to losses on claims, gross, in the consolidated statement of earnings. The company’s reserves for reported losses and loss adjustment expenses are based on estimates of future payments to settle reported general insurance and reinsurance claims and claims from its run-off operations. Case reserve estimates are based on the facts available at the time the reserves are established and for reinsurance, based on reports and individual case reserve estimates received from ceding companies. The company establishes these reserves on an undiscounted basis to recognize the estimated costs of bringing pending claims to final settlement, taking into account inflation, as well as other factors that can influence the amount of reserves required, some of which are subjective and some of which are dependent on future events. In determining the level of reserves, the company considers historical trends and patterns of loss payments, pending levels of unpaid claims and types of coverage. In addition, court decisions, economic conditions and public attitudes may affect the ultimate cost of settlement and, as a result, the company’s estimation of reserves. Between the reporting and final settlement of a claim, circumstances may change, which would result in changes to established reserves. Items such as changes in law and interpretations of relevant case law, results of litigation, changes in medical costs, as well as costs of vehicle and building repair materials and labour rates can substantially impact ultimate settlement costs. Accordingly, the company regularly reviews and re-evaluates case reserves. Any resulting adjustments are included in the current period consolidated statement of earnings in losses on claims, gross, and in losses on claims, ceded to reinsurers, as applicable. Amounts ultimately paid for losses and loss adjustment expenses can vary significantly from the level of reserves originally set or currently recorded. The company also establishes reserves for IBNR losses on an undiscounted basis to recognize the estimated final settlement cost for loss events which have already occurred but which have not yet been reported. Historical information and statistical models, based on product line, type and extent of coverage, as well as reported claims trends, severities and frequencies, exposure changes and other factors are relied upon to estimate IBNR reserves. These estimates are revised as additional information becomes available and as claims are actually reported and paid. Estimation techniques Where possible the company applies several commonly accepted actuarial projection methodologies in estimating required provisions to give greater insight into the trends inherent in the data being projected. These include methods based upon the following: the development of previously settled claims, where payments to date are extrapolated for each prior year; estimates based upon a projection of number of claims and average cost; notified claims development, where notified claims to date for each year are extrapolated based upon observed development of earlier years; and, expected loss ratios. In addition, the company uses other techniques such as aggregate benchmarking methods for specialist classes of business. In selecting its best estimate, the company considers the appropriateness of the methods to the individual circumstances of the line of business and accident or underwriting year. Large claims affecting each relevant line of business are generally assessed separately, being measured either at the face value of the loss adjuster’s estimate or projected separately in order to allow for the future development of large claims. Provisions for losses and loss adjustment expenses are calculated gross of any reinsurance recoveries. A separate estimate is made of the amounts that will be recoverable from reinsurers based upon the gross provisions and with due regard to collectability. The provisions for losses and loss adjustment expenses are subject to review at the subsidiary level by subsidiary actuaries and at the corporate level by the company’s Chief Actuary. In addition, for major classes of business where the risks and uncertainties inherent in the provisions are greatest, ad hoc detailed reviews are undertaken by internal and external actuaries who are able to draw upon their specialist expertise and a broader knowledge of current industry trends in claims development. The results of these reviews are considered when establishing the appropriate levels of provisions for losses and loss adjustment expenses and unexpired risks. Life insurance contracts The company, through Eurolife (which was consolidated on July 14, 2021 as described in note 23), writes life, disability, accident, health and critical illness insurance in addition to offering life annuities and insurance related investment products, both on an individual and group basis. Premiums for most life insurance contracts are generally recognized as revenue when due. The provision for policy benefits is calculated in compliance with local regulatory requirements and IFRS using actuarial principles consistent with those applied where life insurance policies are written. The provision for policy benefits is determined based on the discounting of projected future cash flows of claims and premiums using assumptions that include mortality, morbidity, lapse rates, discount rates, investment returns, inflation, and future expenses. These assumptions can vary by contract type and reflect current and expected future experience and represent the best estimates to settle outstanding claims, estimated future benefits and expenses on in-force insurance contracts. Certain insurance contracts written by Eurolife transfer the market risk associated with the underlying investment performance, which supports the benefit payments, to the policyholder (“unit-linked”). For these unit-linked contracts or funds, the company measures the underlying investments at fair value and presents them in other assets on the consolidated balance sheet. A corresponding liability is presented in insurance contract payables on the consolidated balance sheet. A change in the fair value of the investments of the unit-linked funds result in a corresponding change to the related liabilities, with both changes recorded together in the consolidated statement of earnings such that there is no effect on income, expenses or net earnings. Reinsurance Reinsurance does not relieve the originating insurer of its liability and is reflected on the consolidated balance sheet on a gross basis to indicate the extent of credit risk related to reinsurance and the obligations of the insurer to its policyholders. Reinsurance assets include balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and ceded unearned premiums. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. Reinsurance is recorded gross on the consolidated balance sheet unless a legal right to offset against a liability owing to the same reinsurer exists. Ceded premiums and losses are recorded in the consolidated statement of earnings in premiums ceded to reinsurers and losses on claims, ceded to reinsurers respectively and in recoverable from reinsurers on the consolidated balance sheet. Commission income earned on premiums ceded to reinsurers is included in commissions, net, in the consolidated statement of earnings. Unearned premiums are reported on the consolidated balance sheet before reduction for premiums ceded to reinsurers. Reinsurers’ portion of unearned premiums is included in recoverable from reinsurers on the consolidated balance sheet together with estimates of reinsurers’ share of provision for claims determined on a basis consistent with the related claims liabilities. Impairment Risk transfer Premiums Income taxes The provision for income taxes for the period comprises current and deferred income tax. Income taxes are recognized in the consolidated statement of earnings, except when related to items recognized in other comprehensive income (loss) or in equity. In those cases, the income taxes are also recognized in other comprehensive income (loss) or in equity, respectively, except for dividends where the income taxes are recognized in earnings, other comprehensive income (loss) or equity according to where the transactions that generated the distributable profits were recognized. Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company’s subsidiaries and associates operate and generate taxable income. Deferred income tax is calculated under the liability method whereby deferred income tax assets and liabilities are recognized for temporary differences between the financial statement carrying amounts of assets and liabilities and their respective income tax bases at current substantively enacted tax rates. With the exception of initial recognition of deferred income tax arising from business combinations, changes in deferred income tax associated with components of other comprehensive income (loss) are recognized in other comprehensive income (loss) while all other changes in deferred income tax are included in the provision for income taxes in the consolidated statement of earnings. Deferred income tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. Carry forwards of unused losses or unused tax credits are tax effected and recognized as deferred tax assets when it is probable that future taxable profits will be available against which these losses or tax credits can be utilized. Deferred income tax is not recognized on unremitted earnings of subsidiaries where the company has determined it is not probable those earnings will be repatriated in the foreseeable future. Current and deferred income tax assets and liabilities are offset when the income taxes are levied by the same taxation authority and there is a legally enforceable right of offset. Investment in associate held for sale An investment in associate is classified as held for sale if its carrying amount will be recovered through sale rather than through continuing use. Classification as held for sale requires that management be committed to the sale, the sale is highly probable, the asset is available for immediate sale in its present condition, and the sale is expected to be completed within one year from the date of classification. Upon classification as held for sale the investment in associate is measured at the lower of carrying value and fair value less costs to sell and the equity method of accounting is no longer applied. Investment property Investment property consists of real estate held by the company for capital appreciation, rental income, or both, and is initially recorded at cost, including transaction costs, and subsequently measured at fair value. On the consolidated balance sheet investment property is included in portfolio investments by the insurance and reinsurance companies and in other assets by the non-insurance companies. In the consolidated statement of earnings, insurance and reinsurance companies record investment property rental income and direct expenses in interest and dividends, and changes in fair value in net gains (losses) on investments, while non-insurance companies record investment property rental income and changes in fair value in other revenue, and direct expenses in other expenses. Other assets Other assets primarily consist of premises and equipment, right-of-use assets associated with leases, assets associated with unit-linked insurance products, inventories, sales receivables and finance lease receivables of the non-insurance companies, prepaid expenses, accrued interest and dividends, income taxes refundable, receivables for securities sold, pension assets, deferred compensation assets, prepaid losses on claims, and other miscellaneous receivables. Receivables are initially recognized at fair value less a provision for expected lifetime credit losses, and subsequently measured at amortized cost. Premises and equipment Other revenue Other revenue is primarily comprised of revenue earned by the non-insurance companies. Revenue from restaurant and retail sales is recognized when the company provides goods to the customer and receives payment. Revenue from the sale of other goods is typically recognized when shipped to the customer, with payment received in advance of shipment. The shipping and handling performance obligation is recorded as a contract liability and recognized as revenue once the services have been performed. Revenue from providing travel, hospitality and other non-insurance services is recognized over time based on measured progress towards complete satisfaction of the related performance obligations. Payment is usually received at the time of initial booking for travel and hospitality services, and received in installments for other services. Unconditional payments due from customers for satisfied performance obligations are recorded as sales receivables within other assets on the consolidated balance sheet. Customer prepayments are recorded as deferred revenue within accounts payable and accrued liabilities on the consolidated balance sheet and are not recognized as revenue until the shipment of goods or provision of services occurs. Certain contracts include multiple deliverables which are accounted for as separate performance obligations, with the transaction price allocated to the performance obligations based on their individual selling prices. Other expenses Other expenses is primarily comprised of the cost of inventories sold or services provided and the operating expenses of |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgments | 12 Months Ended |
Dec. 31, 2021 | |
Critical Accounting Estimates and Judgments | |
Critical Accounting Estimates and Judgments | 4. Critical Accounting Estimates and Judgments In the preparation of the company’s consolidated financial statements, management has made a number of critical accounting estimates and judgments as described below, and in certain notes to the consolidated financial statements: determination of fair value for financial instruments in note 5; carrying value of goodwill and intangibles in note 12; and contingencies in note 20. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Provision for losses and loss adjustment expenses Property and casualty insurance and reinsurance - Life insurance - Determination of fair value for financial instruments classified as Level 3 in the fair value hierarchy Fair values for substantially all of the company’s financial instruments are measured using market or income approaches. Considerable judgment may be required in developing estimates of fair value, particularly for financial instruments classified as Level 3 in the fair value hierarchy as such estimates incorporate unobservable inputs that require management to use its own assumptions. In particular, for private placement debt securities and private company preferred shares the company uses industry accepted discounted cash flow models to respectively, value the instruments directly, and to corroborate fair values implied by limited market activity. Significant judgements and assumptions are required to determine the discounted cash flows, including discount rates, long term growth rates and credit spreads, as applicable. See note 5 for details of the company’s Level 3 financial instruments and the valuation assumptions applied. Impairment assessments of goodwill and indefinite-lived intangible assets Goodwill and indefinite-lived intangible assets are assessed annually for impairment, or more frequently if there are indicators of impairment, by comparing the carrying value of the cash-generating unit (“CGU”) or group of CGUs to which these assets are allocated to their recoverable amounts. The company principally uses discounted cash flows to estimate the recoverable amount of a CGU or group of CGUs to which goodwill or indefinite-lived intangible assets have been allocated, and market approaches inclusive of a control premium are used when applicable. Significant judgements and assumptions are required to determine the discounted cash flows, including discount rates, long term growth rates and working capital requirements, and also (i) for goodwill, premiums, investment returns, revenues and expenses, and (ii) for indefinite-lived intangible assets, premiums, revenues and royalty rates. Discounted cash flows are subject to sensitivity analysis given the uncertainty in preparing forecasts. Details of goodwill and indefinite-lived intangible assets, including the results of annual impairment tests, are presented in note 12. Determination of significant influence, joint control and control The determination of whether an investment is an associate, a joint arrangement or a subsidiary requires consideration of all facts and circumstances, and typically begins with an analysis of the company’s proportion of the investee’s voting rights. Judgment may be required to determine the existence of significant influence, joint control or control when it involves elements such as contractual arrangements between shareholders, currently exercisable potential voting rights through warrants or convertible instruments, significant shareholdings relative to other third party shareholders, and regulatory restrictions on board representation, voting rights, or relevant activities of the investee. De facto control over an investee without holding the majority of its voting rights may occur due to dispersion of third party shareholdings and other factors. Conversely, having significant influence over an investee when holding the majority of its voting rights may occur due to regulatory and other restrictions that limit the application of voting and other rights. The company’s investments in associates and joint ventures are presented in note 6, business combinations and divestitures are presented in note 23 and subsidiaries are presented in note 29. During 2021 the company exercised judgment in determining it had significant influence over Gulf Insurance pursuant to arrangements related to its sale of RiverStone Barbados as described in note 6. Business combinations Accounting for business combinations requires estimates of fair value for the consideration transferred, assets acquired and liabilities assumed. The company uses all available information, including third party valuations and appraisals where appropriate, to determine these fair values. Changes in estimates of fair value due to additional information related to facts and circumstances that existed at the acquisition date would impact the amount of goodwill or gain on bargain purchase recognized. The company has up to one year from the acquisition date to finalize its determination of fair values for a business combination if needed. Details of business combinations are presented in note 23. |
Cash and Investments
Cash and Investments | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Investments | |
Cash and Investments | 5. Cash and Investments Presented in the table below are holding company cash and investments and portfolio investments, net of derivative obligations, all of which are classified at FVTPL except for investments in associates, investment in associate held for sale and other invested assets. December 31, December 31, 2021 2020 Holding company Cash and cash equivalents (1) 465.9 280.0 Short term investments 216.9 159.2 Bonds 242.6 457.2 Preferred stocks 14.0 4.7 Common stocks (2) 137.5 123.7 Derivatives (note 7) 290.5 147.9 1,367.4 1,172.7 Assets pledged for derivative obligations: Cash equivalents (1) 46.8 — Short term investments 64.1 79.5 110.9 79.5 Holding company cash and investments as presented on the consolidated balance sheet 1,478.3 1,252.2 Derivative obligations (note 7) (32.1) (22.8) 1,446.2 1,229.4 Portfolio investments Cash and cash equivalents (1)(4) 12,283.2 4,886.5 Short term investments (4) 9,516.3 8,311.3 Bonds (4) 14,091.2 15,734.6 Preferred stocks 2,405.9 605.2 Common stocks (2)(4) 5,468.9 4,599.1 Investments in associates (note 6) (4) 4,755.1 4,381.8 Investment in associate held for sale (note 6) — 729.5 Derivatives (note 7) 291.3 234.8 Other invested assets (3) 699.9 577.6 49,511.8 40,060.4 Assets pledged for derivative obligations: Cash equivalents (1) 74.0 — Short term investments 45.6 113.9 Bonds — 82.5 119.6 196.4 Fairfax India cash, portfolio investments and associates: Cash and cash equivalents (1) 76.5 90.2 Short term investments 6.2 — Bonds 199.8 21.0 Common stocks 434.6 412.3 Investments in associates (note 6) 1,348.9 1,328.3 2,066.0 1,851.8 Portfolio investments as presented on the consolidated balance sheet 51,697.4 42,108.6 Derivative obligations (note 7) (120.8) (166.6) 51,576.6 41,942.0 Total investments, net of derivative obligations 53,022.8 43,171.4 (1) Includes aggregate restricted cash and cash equivalents at December 31, 2021 of $1,261.0 (December 31, 2020 – $789.6 ). See note 27. (2) Includes aggregate investments in limited partnerships with a carrying value at December 31, 2021 of $1,971.0 (December 31, 2020 – $1,935.9 ). (3) Comprised primarily of investment property. (4) Presented in the following table are portfolio investments held by Eurolife to support its life insurance operations that are included in the table above. Eurolife was consolidated on July 14, 2021 as described in note 23. December 31, December 31, 2021 2020 Eurolife life insurance portfolio investments Cash and cash equivalents 741.5 — Short term investments 854.3 — Bonds 1,206.8 — Common stocks 148.1 — Investments in associates (note 6) 147.5 — 3,098.2 — Restricted cash and cash equivalents at December 31, 2021 of $1,261.0 (December 31, 2020 – $789.6) was comprised primarily of amounts required to be maintained on deposit with various regulatory authorities to support the operations of the insurance and reinsurance subsidiaries. Refer to note 27 for details of restricted cash and cash equivalents presented on the consolidated balance sheet. The company’s subsidiaries have pledged cash and investments, inclusive of trust funds and regulatory deposits, as security for their own obligations to pay claims or make premium payments (these pledges are either direct or collateral for letters of credit). In order to write insurance business in certain jurisdictions (primarily U.S. states) the company’s subsidiaries must deposit funds with local insurance regulatory authorities to provide security for future claims payments as ultimate protection for the policyholder. Additionally, some of the company’s subsidiaries provide reinsurance to primary insurers, for which funds must be posted as security for losses that have been incurred but not yet paid. These pledges are in the normal course of business and are generally released when the payment obligation is fulfilled. The table that follows summarizes assets pledged to third parties by the nature of the pledge requirement (excluding assets pledged in favour of Lloyd’s (note 20), for derivative obligations and for certain intercompany reinsurance arrangements). Pledged assets primarily consist of cash and cash equivalents, short term investments and bonds within portfolio investments on the consolidated balance sheet. December 31, December 31, 2021 2020 Regulatory deposits 5,147.1 4,781.0 Security for reinsurance and other 1,434.9 1,245.7 6,582.0 6,026.7 Fixed Income Maturity Profile Bonds are summarized by their earliest contractual maturity date in the table below. Actual maturities may differ from maturities shown below due to the existence of call and put features. At December 31, 2021 bonds containing call, put and both call and put features represented $4,063.0, $77.2 and $467.8 respectively (December 31, 2020 – $7,155.0, $1.3 and $1,075.8) of the total fair value of bonds. The table below does not reflect the impact of U.S. treasury bond forward contracts with a notional amount at December 31, 2021 of $1,691.3 (December 31, 2020 – $330.8) that economically hedge the company’s exposure to interest rate risk as described in note 7. The increase in the company’s holdings of bonds due in 1 year or less was primarily due to net purchases of first mortgage loans of $826.9 and an investment in Mosaic Capital 25-year debentures as described in note 23. The decrease in the company’s holdings of bonds due after 1 year through 5 years was primarily due to net sales of short to mid-dated high quality corporate bonds for net proceeds of $3,948.5, the exchange of Seaspan Corporation debentures for Atlas Corp. preferred shares and redemption of the remaining Seaspan Corporation debentures as described in note 6, partially offset by net purchases of Canadian government bonds of $617.3. The increase in the company’s holdings of bonds due after 10 years was primarily due to the consolidation of Eurolife’s bond portfolio as described in note 23. December 31, 2021 December 31, 2020 Amortized Fair Amortized Fair cost (1) value (1) cost (1) value (1) Due in 1 year or less 6,022.8 5,946.5 4,968.1 4,935.3 Due after 1 year through 5 years 6,674.2 6,950.1 9,378.4 10,096.9 Due after 5 years through 10 years 534.0 531.3 654.2 718.5 Due after 10 years 990.1 1,105.7 419.2 544.6 14,221.1 14,533.6 15,419.9 16,295.3 Pre-tax effective interest rate 2.7 % 3.2 % (1) Includes bonds held by the holding company and Fairfax India. Fair Value Disclosures The company’s use of quoted market prices (Level 1), valuation models with significant observable market information as inputs (Level 2) and valuation models with significant unobservable information as inputs (Level 3) in the valuation of securities and derivative contracts by type of issuer was as follows: December 31, 2021 December 31, 2020 Significant Significant other Significant other Significant Quoted observable unobservable Total fair Quoted observable unobservable Total fair prices inputs inputs value asset prices inputs inputs value asset (Level 1) (Level 2) (Level 3) (liability) (Level 1) (Level 2) (Level 3) (liability) Cash and cash equivalents (1) 12,946.4 — — 12,946.4 5,256.7 — — 5,256.7 Short term investments: Canadian government 16.2 — — 16.2 638.1 — — 638.1 Canadian provincials 535.8 — — 535.8 1,002.9 — — 1,002.9 U.S. treasury 7,608.8 — — 7,608.8 6,343.3 — — 6,343.3 Other government 283.5 1,140.9 — 1,424.4 266.7 234.9 — 501.6 Corporate and other — 263.9 — 263.9 — 178.0 — 178.0 8,444.3 1,404.8 — 9,849.1 8,251.0 412.9 — 8,663.9 Bonds: Canadian government — 614.6 — 614.6 — 16.5 — 16.5 Canadian provincials — 45.0 — 45.0 — 49.9 — 49.9 U.S. treasury — 3,957.9 — 3,957.9 — 3,058.4 — 3,058.4 U.S. states and municipalities — 387.2 — 387.2 — 378.2 — 378.2 Other government — 2,655.0 — 2,655.0 — 944.0 — 944.0 Corporate and other (2) — 4,078.1 2,795.8 6,873.9 — 10,074.1 1,774.2 11,848.3 — 11,737.8 2,795.8 14,533.6 — 14,521.1 1,774.2 16,295.3 Preferred stocks: Canadian — 16.6 93.6 110.2 — 12.2 93.0 105.2 U.S. — — 40.6 40.6 — — 17.0 17.0 Other (3) 13.5 288.0 1,967.6 2,269.1 10.3 — 477.4 487.7 13.5 304.6 2,101.8 2,419.9 10.3 12.2 587.4 609.9 Common stocks: Canadian 1,104.2 188.4 303.7 1,596.3 802.5 108.7 181.5 1,092.7 U.S. 597.9 32.0 1,155.3 1,785.2 485.1 32.0 998.8 1,515.9 Other 1,438.0 276.7 944.8 2,659.5 1,250.8 338.4 937.3 2,526.5 3,140.1 497.1 2,403.8 6,041.0 2,538.4 479.1 2,117.6 5,135.1 Derivatives and other invested assets 0.1 175.4 1,106.2 1,281.7 — 237.4 722.9 960.3 Derivative obligations (note 7) — (88.5) (64.4) (152.9) — (164.1) (25.3) (189.4) Holding company cash and investments and portfolio investments measured at fair value 24,544.4 14,031.2 8,343.2 46,918.8 16,056.4 15,498.6 5,176.8 36,731.8 52.3 % 29.9 % 17.8 % 100.0 % 43.7 % 42.2 % 14.1 % 100.0 % Investments in associates (note 6) (4) 4,188.8 106.8 3,995.6 8,291.2 2,916.3 175.2 4,059.8 7,151.3 (1) Includes restricted cash and cash equivalents of $1,261.0 at December 31, 2021 (December 31, 2020 – $789.6 ). See note 27. (2) Included in Level 3 are the company’s investments in first mortgage loans at December 31, 2021 of $1,659.4 (December 31, 2020 – $775.4 ) 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”),which are described in footnote (2) of the following table. The company also holds a 49.0% equity interest in Digit as described in note 6. (4) The fair value of investments in associates is presented separately as such investments are measured using the equity method of accounting. Also included is the fair value of RiverStone Barbados which was held for sale at December 31, 2020 and subsequently sold on August 23,2021 as described in note 23. In the preceding table certain limited partnerships included in common stocks are classified as Level 3 because their net asset values are unobservable or because they contractually require greater than three months to liquidate or redeem. During 2021 and 2020 there were no significant transfers of financial instruments between Level 1 and Level 2, and there were no significant transfers of financial instruments in or out of Level 3 as a result of changes in the observability of valuation inputs except as described in the following table which summarizes changes in Level 3 financial assets measured at fair value on a recurring basis. 2021 Private Limited Private Derivatives company Private partnerships placement and other preferred Common equity and other (1) debt securities invested assets shares shares funds (1) Total Balance - January 1 1,766.9 1,774.2 697.6 587.4 239.9 110.8 5,176.8 Net realized and unrealized gains included in the consolidated statement of earnings (2) 450.6 69.1 297.4 1,489.3 53.7 2.4 2,362.5 Purchases (3)(4) 254.3 1,241.5 115.5 32.0 216.9 — 1,860.2 Acquisitions of subsidiaries (note 23) — 47.5 27.4 — — — 74.9 Transfer into category (5) — 139.6 — — 10.9 — 150.5 Sales and distributions (580.9) (476.6) (91.8) (7.2) (2.5) (5.9) (1,164.9) Transfer out of category (102.0) — — — (10.7) — (112.7) Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) 0.2 0.5 (4.3) 0.3 (1.2) 0.4 (4.1) Balance - December 31 1,789.1 2,795.8 1,041.8 2,101.8 507.0 107.7 8,343.2 2020 Private Limited Private Derivatives company Private partnerships placement and other preferred Common equity and other (1) debt securities invested assets shares shares funds (1) Total Balance - January 1 1,846.7 1,420.1 764.3 569.2 205.6 129.2 4,935.1 Net realized and unrealized gains (losses) included in the consolidated statement of earnings 155.9 99.3 (100.4) (3.0) 27.4 (1.0) 178.2 Purchases 198.1 1,012.8 44.2 20.7 14.3 — 1,290.1 Sales and distributions (392.8) (474.6) — (0.1) (8.0) (18.8) (894.3) Transfer out of category (6) (44.4) (149.3) — — — — (193.7) Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) 3.4 12.5 (0.6) 0.6 0.6 1.4 17.9 Deconsolidation of non-insurance subsidiary (note 23) — (146.6) (9.9) — — — (156.5) Balance - December 31 1,766.9 1,774.2 697.6 587.4 239.9 110.8 5,176.8 (1) Included in common stocks in the fair value hierarchy table presented on the previous page and in holding company cash and investments or common stocks on the consolidated balance sheets. (2) During June 2021 the company’s associate Go Digit Infoworks Services Private Limited (“Digit”) entered into agreements with certain third party investors for its general insurance subsidiary Go Digit Insurance Limited (“Digit Insurance”) to raise approximately $200 ( 14.9 billion Indian rupees) of new equity shares, valuing Digit Insurance at approximately $3.5 billion ( 259.5 billion Indian rupees) (the “transaction fair value”). Digit Insurance subsequently raised approximately $122 ( 9.0 billion Indian rupees) at the transaction fair value, with the remaining tranches expected to close in the first half of 2022, subject to customary closing conditions and regulatory approval. The increased valuation of Digit Insurance based upon the transaction fair value, which was supported by an internal discounted cash flow analysis, resulted in the company recording a net unrealized gain of $1,490.3 (inclusive of foreign exchange losses) in 2021 on its investment in Digit compulsory convertible preferred shares. The company also holds a 49.0% equity accounted interest in Digit as described in note 6. (3) Common shares include non-voting shares of the RiverStone Barbados holding company as described in note 23. (4) Derivatives and other invested assets include a monthly royalty on future revenues of Toys “R” Us Canada as described in note 23. (5) Private placement debt securities include Mosaic Capital 25-year debentures as described in note 23. (6) On July 1, 2020 the company derecognized its investment in Farmers Edge convertible debentures pursuant to the consolidation of Farmers Edge as described in note 6. The table below presents the valuation techniques and unobservable inputs used to estimate fair values for the company’s significant Level 3 financial assets at December 31, 2021: Effect on fair value Carrying Input range used if input value is Asset class value Valuation technique Significant unobservable input Low High increased (a) Bonds (b) Private placement debt securities (1) 1,001.7 Discounted cash flow Credit spread 1.0 % 9.9 % Decrease Mortgage loans (2) 1,659.4 Market approach Recent transaction price N/A N/A Increase Discounted cash flow Credit spread 1.9 % 7.6 % Decrease Other 134.7 Various Various N/A N/A N/A 2,795.8 Preferred stocks (c) Private company preferred shares (3) 1,965.5 Market approach Recent transaction price N/A N/A Increase Discounted cash flow Discount rate 11.3 % 11.3 % Decrease Long term growth rate 6.0 % 6.0 % Increase Private placement preferred shares (4) 71.2 Discounted cash flow Credit spread 3.7 % 3.7 % Decrease Other 65.1 Various Various N/A N/A N/A 2,101.8 Common stocks (d) Limited partnerships and other (5) 1,789.1 Net asset value Net asset value N/A N/A Increase Common shares (6) 200.0 Market approach Recent transaction price N/A N/A Increase Common shares (7) 83.0 Market comparable Book value multiple 1.4 1.4 Increase Private equity funds (7) 58.3 Market comparable Price/Earnings multiple 10.0 10.0 Increase Private equity funds (5) 49.4 Net asset value Net asset value N/A N/A Increase Other 224.0 Various Various N/A N/A N/A 2,403.8 Derivatives and other invested assets (e) Investment property (8) 507.9 Income capitalization Terminal capitalization rate 5.8 % 7.5 % Decrease Discount rate 7.1 % 8.8 % Decrease Market rent growth rate 2.5 % 3.0 % Increase Warrants (9) 259.2 Option pricing model Equity volatility 19.3 % 75.1 % Increase Investment property (10) 69.5 Sales comparison Price per acre (Cdn$ thousands) 30.0 125.0 Increase Other 205.2 Various Various N/A N/A N/A 1,041.8 Total 8,343.2 (a) Decreasing the input value would have the opposite effect on the estimated fair value. (b) Included in holding company cash and investments or bonds on the consolidated balance sheet. (c) Included in preferred stocks on the consolidated balance sheet. (d) Included in holding company cash and investments or common stocks on the consolidated balance sheet. (e) 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, 2021 these private placement debt securities were valued using industry accepted discounted cash flow models that incorporated unobservable credit spreads of the issuers, and consisted of 12 investments, the largest being $535.1 (the company’s investment in Blackberry Limited) (December 31, 2020 - 10 investments, the largest being $438.6 (the company’s investment in Blackberry Limited)). By increasing (decreasing) the credit spreads applied at December 31, 2021 by 100 basis points, the fair value of this asset class would collectively decrease by $26.5 (increase by $11.3 ). (2) At December 31, 2021 these mortgage loans consisted of 36 investments, the largest being $149.4 (December 31, 2020 - 22 investments, the largest being $111.5 ). By increasing (decreasing) the credit spreads applied at December 31, 2021 by 100 basis points, the fair value of this asset class would not change significantly primarily due to the short term nature of these instruments. (3) These private company preferred shares relate to the company’s investment in Digit compulsory convertible preferred shares where the recent transaction price was applied which was supported by an industry accepted discounted cash flow model that incorporated an unobservable discount rate and long term growth rate. As the company is restricted from selling the preferred shares for a specified period a discount for lack of marketability was also applied using an industry accepted option pricing model that incorporated unobservable long-dated equity volatilities. At December 31, 2021 by increasing (decreasing) the discount rate applied by 0.5% , the fair value of the preferred shares would decrease by $212.1 (increase by $258.0 ); by increasing (decreasing) the long term growth rate applied by 0.25% , the fair value of the preferred shares would increase by $80.4 (decrease by $73.2 ). (4) These private placement preferred shares were valued using industry accepted discounted cash flow models that incorporated unobservable credit spreads of the preferred shares. By increasing (decreasing) the credit spreads applied at December 31, 2021 by 100 basis points, the fair value of this asset class would decrease by $8.0 (increase by $8.6 ). (5) 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. In some instances, such investments are classified as Level 3 if they require at least three months’ notice to liquidate or redeem. At December 31, 2021 limited partnerships and other consisted of 47 investments, the three largest being $258.2 (industrials), $252.1 (oil and gas extraction) and $192.0 (primarily household appliance manufacturing) (December 31, 2020 - 51 investments, the three largest being $299.5 (beverage manufacturing), $191.8 (industrials) and $146.4 (oil and gas extraction)). By increasing (decreasing) net asset values at December 31, 2021 by 10% , the fair value of limited partnerships and other would collectively increase (decrease) by $178.9 , and the fair value of the private equity funds would collectively increase (decrease) by $4.9 . (6) These common shares applied the recent transaction price that was supported by a probability weighted valuation model which attributed 85.0% weighting to the fair value whereby the common shares will convert into a secured loan note upon completion of certain regulatory undertakings by the investee and 15.0% weighting to the fair value whereby the common shares remain unchanged. (7) These common shares and private equity funds were valued using various valuation measures for comparable companies and transactions, including relevant valuation multiples. In some instances, such investments are classified as Level 3 because the valuation multiples applied by the company were adjusted for differences in attributes between the investment and the underlying companies or transactions from which the valuation multiples were derived. (8) These investment property were valued by third party appraisers using an industry accepted income capitalization approach that incorporated unobservable capitalization rates, discount rates and market rent growth rates. (9) These warrants were valued using industry accepted option pricing models that incorporated unobservable long-dated equity volatilities. A higher equity volatility generally results in a higher fair value due to the higher probability of obtaining a greater return from the warrant. By increasing (decreasing) equity volatilities applied at December 31, 2021 by 10% , the fair value of these warrants would collectively increase by $25.5 (decrease by $26.0 ). (10) These investment property were valued using an industry accepted direct sales comparison approach that incorporated unobservable recent sale prices per acre for comparable properties in similar locations. Investment Income An analysis of investment income for the years ended December 31 follows: Interest and dividends and share of profit (losses) of associates 2021 2020 Interest income: Cash and short term investments 26.8 104.1 Bonds 488.5 557.4 Derivatives and other invested assets 53.1 55.0 568.4 716.5 Dividends: Preferred stocks 14.1 4.3 Common stocks 94.1 73.5 108.2 77.8 Investment expenses (35.8) (25.1) Interest and dividends 640.8 769.2 Share of profit (losses) of associates (1) 402.0 (112.8) (1) Includes impairment charges recorded on investments in associates during 2021 of nil (2020 - $240.3 ). Net gains (losses) on investments 2021 2020 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) (8) gains (losses) investments Bonds 338.2 (1) (523.5) (1) (185.3) 112.1 593.5 705.6 Preferred stocks 2.2 1,509.5 (2) 1,511.7 — 10.0 10.0 Common stocks 488.0 852.3 1,340.3 243.7 (212.4) 31.3 828.4 1,838.3 2,666.7 355.8 391.1 746.9 Derivatives: Equity total return swaps - short positions — — — (613.2) (3) 84.6 (528.6) Equity total return swaps - long positions 439.6 (3) (32.1) 407.5 207.4 (3) 118.2 325.6 Equity warrants and options 15.8 98.4 114.2 (1.6) (54.7) (56.3) CPI-linked derivatives (108.5) 113.8 5.3 (300.0) 286.1 (13.9) U.S. treasury bond forwards 26.0 (0.3) 25.7 (103.0) 1.0 (102.0) Other (42.6) 171.3 128.7 (4) (59.0) 26.1 (32.9) 330.3 351.1 681.4 (869.4) 461.3 (408.1) Foreign currency net gains (losses) on: Investing activities (43.5) (78.8) (122.3) (5) (51.0) 156.4 105.4 (5) Underwriting activities 41.2 — 41.2 (16.8) — (16.8) Foreign currency contracts (62.2) 50.2 (12.0) 2.1 (35.1) (33.0) (64.5) (28.6) (93.1) (65.7) 121.3 55.6 Disposition of associates 56.4 (6) — 56.4 8.6 (9)(10) — 8.6 Deconsolidation of non-insurance subsidiaries 190.3 (7) — 190.3 (78.5) (11) — (78.5) Other 122.1 (178.7) (56.6) (19.9) 8.5 (11.4) Net gains (losses) on investments 1,463.0 1,982.1 3,445.1 (669.1) 982.2 313.1 (1) Includes the derecognition of Seaspan Corporation debentures that were exchanged for Atlas Corp. preferred shares and Seaspan Corporation debentures that were redeemed as described in note 6. (2) Includes net unrealized gains of $1,490.3 (inclusive of foreign exchange losses)on Digit compulsory convertible preferred shares described earlier in this note. (3) Amounts recorded in net realized gains (losses) include net gains (losses) on total return swaps where the counterparties are 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. (4) Includes net gains of $109.9 (excludes net foreign exchange losses) related to Asset Value Loan Notes (“AVLNs”) entered into with RiverStone Barbados as described in note 23. (5) Foreign currency net losses on investing activities during 2021 primarily related to euro and Indian rupee denominated investments held by subsidiaries with a U.S. dollar functional currency as the U.S. dollar strengthened relative to those currencies. Foreign currency net gains on investing activities during 2020 primarily related to euro and Canadian dollar denominated investments held by subsidiaries with a U.S. dollar functional currency as the U.S. dollar weakened relative to those currencies. (6) During 2021 the company sold a portion of its investment in IIFL Finance for cash proceeds of $113.7 ( 8.6 billion Indian rupees) and recorded a net realized gain of $42.0 in the consolidated statement of earnings as described in note 6. (7) Principally comprised of the sale of Toys “R” Us Canada and Fairfax India’s sale of Privi as described in note 23. (8) Amounts recorded in net realized gains (losses) in 2020 include net gains (losses) on investments that were disposed of pursuant to the deconsolidation of European Run-off on March 31, 2020 and Fairfax Africa on December 8, 2020 as described in note 23. (9) On February 28, 2020 the company sold its investment in APR Energy to Atlas Corp. in an all-stock transaction . (10) On September 30, 2020 the company sold its investment in Davos Brands for cash proceeds of $58.6 and recorded a net realized gain of $19.3 . (11) On December 8, 2020 Fairfax Africa was deconsolidated pursuant to the transaction described in note 23 and an equity accounted investment in Helios Fairfax Partners Corporation (“HFP”) was recognized, resulting in a net realized loss of $61.5 . |
Investments in Associates
Investments in Associates | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Associates | |
Investments in Associates | 6. Investments in Associates The company’s investments in associates are as follows: December 31, 2021 Year ended Carrying value December 31, 2021 Share of Ownership Associates and joint Fairfax India profit percentage (a) Fair value (b) ventures associates (c) Total (loss) Insurance and reinsurance: Gulf Insurance Group K.S.C.P. ("Gulf Insurance") (1) 43.7 % 409.5 380.0 — 380.0 55.5 Go Digit Infoworks Services Private Limited ("Digit") (2) 49.0 % 498.3 79.1 — 79.1 5.3 Other (3)(4)(5) — 191.3 148.3 — 148.3 11.8 1,099.1 607.4 — 607.4 72.6 Non-insurance: India Bangalore International Airport Limited ("Bangalore Airport") (13) 54.0 % 1,372.2 — 585.8 585.8 (45.8) Quess Corp Limited ("Quess") 31.0 % 528.5 506.3 (d) — 506.3 (1.4) IIFL Finance Limited (“IIFL Finance”) (8) 22.3 % 318.1 — 198.8 198.8 40.6 Sanmar Chemicals Group ("Sanmar") 42.9 % 421.2 — 124.2 124.2 (2.4) CSB Bank Limited ("CSB Bank") 49.7 % 227.6 — 180.8 180.8 27.6 IIFL Securities Limited ("IIFL Securities") 37.2 % 138.0 35.0 101.0 136.0 14.0 Seven Islands Shipping Limited ("Seven Islands") 48.5 % 105.9 — 98.5 98.5 (0.5) Other — 84.8 10.9 59.8 70.7 0.5 3,196.3 552.2 1,348.9 1,901.1 32.6 Real estate KWF Real Estate Ventures Limited Partnerships ("KWF LPs") — 76.3 76.3 (d) — 76.3 (9.0) Other — 139.6 140.5 — 140.5 (1.7) 215.9 216.8 — 216.8 (10.7) Other Eurobank Ergasias Services & Holdings S.A ("Eurobank") 32.2 % 1,210.3 1,298.5 — 1,298.5 162.3 Atlas Corp. ("Atlas", formerly Seaspan Corporation) (10) 36.7 % 1,285.8 922.1 — 922.1 69.5 EXCO Resources Inc. ("EXCO") 43.3 % 267.2 195.4 — 195.4 (41.2) Resolute Forest Products Inc. ("Resolute") 32.3 % 377.1 275.8 — 275.8 75.9 Helios Fairfax Partners Corporation ("HFP") (9) 34.4 % 116.2 206.1 — 206.1 (1.2) Peak Achievement Athletics ("Peak Achievement") 42.6 % 181.2 140.5 (d) — 140.5 13.3 Astarta Holding N.V. ("Astarta") 28.4 % 73.3 104.0 — 104.0 38.4 Partnerships, trusts and other — 268.8 236.3 — 236.3 (9.5) 3,779.9 3,378.7 — 3,378.7 307.5 7,192.1 4,147.7 1,348.9 5,496.6 329.4 Investments in associates 8,291.2 4,755.1 1,348.9 6,104.0 402.0 As presented on the consolidated balance sheet: Investments in associates 5,671.9 4,755.1 Fairfax India investments in associates 2,619.3 1,348.9 8,291.2 6,104.0 Year ended December 31, 2020 December 31, Carrying value 2020 Associates Ownership Fair and joint Fairfax India Share of profit percentage (a) value (b) ventures associates (c) Total (loss) Insurance and reinsurance: Eurolife ERB Insurance Group Holdings S.A. ("Eurolife") (7) 50.0 % 457.9 336.2 (d) — 336.2 6.1 Go Digit Infoworks Services Private Limited ("Digit") 49.0 % 120.5 41.8 — 41.8 8.8 RiverStone (Barbados) Ltd. ("RiverStone Barbados"), held for sale (5)(6) 60.0 % 729.5 729.5 (d) — 729.5 113.0 Other (4) — 233.6 197.2 — 197.2 (8.6) 1,541.5 1,304.7 — 1,304.7 119.3 Non-insurance: India Bangalore International Airport Limited ("Bangalore Airport") 54.0 % 1,396.1 — 642.4 642.4 (30.5) Quess Corp Limited ("Quess") 33.2 % 366.8 558.9 (d) — 558.9 (124.6) IIFL Finance Limited (“IIFL Finance”) 29.9 % 175.6 57.7 175.9 233.6 19.9 Sanmar Chemicals Group ("Sanmar") 42.9 % 338.6 — 128.6 128.6 (48.6) CSB Bank Limited ("CSB Bank") 49.7 % 214.4 — 164.4 164.4 14.1 IIFL Securities Limited (“IIFL Securities”) 35.3 % 74.3 32.1 93.4 125.5 9.8 Seven Islands Shipping Limited ("Seven Islands") 48.5 % 103.6 — 100.8 100.8 17.8 Other — 37.1 8.8 22.8 31.6 0.1 2,706.5 657.5 1,328.3 1,985.8 (142.0) Agriculture Astarta Holding N.V. ("Astarta") 28.4 % 49.9 65.3 — 65.3 (28.0) Farmers Edge Inc. ("Farmers Edge") (11) — — — — — (21.8) 49.9 65.3 — 65.3 (49.8) Real estate KWF Real Estate Ventures Limited Partnerships ("KWF LPs") — 84.3 84.3 (d) — 84.3 (17.9) Other — 48.3 50.8 — 50.8 (0.2) 132.6 135.1 — 135.1 (18.1) Other Eurobank Ergasias Services & Holdings S.A ("Eurobank") 30.5 % 799.9 1,166.3 — 1,166.3 (11.9) Atlas Corp. ("Atlas", formerly Seaspan Corporation) (12) 36.7 % 978.9 900.1 — 900.1 116.4 EXCO Resources Inc. ("EXCO") 43.7 % 237.7 238.5 — 238.5 (4.6) Resolute Forest Products Inc. ("Resolute") 30.6 % 161.9 134.3 — 134.3 (57.0) APR Energy plc ("APR Energy") (12) — — — — — (13.6) Helios Fairfax Partners Corporation ("HFP") 32.3 % 185.9 185.9 — 185.9 — Peak Achievement Athletics ("Peak Achievement") 42.6 % 171.5 140.2 (d) — 140.2 34.2 Partnerships, trusts and other — 185.0 183.4 — 183.4 (85.7) 2,720.8 2,948.7 — 2,948.7 (22.2) 5,609.8 3,806.6 1,328.3 5,134.9 (232.1) Investments in associates 7,151.3 5,111.3 1,328.3 6,439.6 (112.8) As presented on the consolidated balance sheet: Investments in associates 4,154.3 4,381.8 Investment in associate held for sale (5)(d) 729.5 729.5 Fairfax India investments in associates 2,267.5 1,328.3 7,151.3 6,439.6 (a) Ownership percentages include the effects of financial instruments that are considered in-substance equity. (b) See note 5 for fair value hierarchy information. (c) Fairfax India’s associates are domiciled in India. (d) These investments are joint ventures. Insurance and reinsurance associates and joint ventures (1) On February 8, 2021 the company entered into an arrangement to purchase (unless sold earlier) certain portfolio investments owned by RiverStone Barbados as described in note 23 and subsequently commenced applying the equity method of accounting to its interest in Gulf Insurance pursuant to that arrangement. (2) The company estimated the fair value of its 49.0% equity accounted interest in Digit at December 31, 2021 to be $498.3 based on the transaction fair value, which is further supported by an internal discounted cash flow model, as described in note 5. Indian law permits an equity interest of 74.0% but regulatory approvals are required for the company to increase its equity interest in Digit beyond 49.0% and to obtain control, so the company anticipates it will consolidate Digit when the company receives such regulatory approvals. (3) On July 14, 2021 the company increased its interest in Eurolife to 80.0% and commenced consolidating Eurolife as described in note 23. (4) On June 17, 2021 the company increased its equity interest in Singapore Re from 28.2% to 94.0% and commenced consolidating Singapore Re as described in note 23. (5) On August 23, 2021 the company completed the sale of its joint venture interest in RiverStone Barbados, which was held for sale at December 31, 2020, pursuant to the transactions described in note 23. (6) On March 31, 2020 the company received a 60.0% joint venture interest with a fair value of $605.0 in RiverStone Barbados pursuant to its contribution of European Run-off to RiverStone Barbados as described in Note 23. (7) The company held a 50.0% indirect interest in Eurolife at December 31, 2020 through its 62.5% interest in a joint venture with OMERS, the pension plan for Ontario’s municipal employees. The joint venture held an 80.0% equity interest in Eurolife, with the remaining 20.0% equity interest held by Eurobank. Non-insurance associates and joint ventures (8) During 2021 the company reduced its interest in IIFL Finance to 22.3% by selling a portion of its interest for cash proceeds of $113.7 ( 8.6 billion Indian rupees) and recorded a net realized gain of $42.0 in the consolidated statement of earnings. (9) On March 31, 2021 the company invested $100.0 in $100.0 principal amount of Helios Fairfax Partners Corporation (“HFP”) 3.0% unsecured debentures and warrants to purchase 3 million HFP subordinate voting shares exercisable at $4.90 per share any time prior to the fifth anniversary of closing. The debentures will mature on the third anniversary of closing or, at the company’s option, on either the first or second anniversary. At redemption or maturity, if the fair value of certain Fairfax Africa legacy investments held by HFP are below their fair value at June 30, 2020 of $102.6 , the redemption price of the debentures will be reduced by that difference. The company recorded the debentures at their fair value of $78.0 and recorded the balance of $22.0 as an addition to its equity accounted investment in HFP. On December 8, 2020 the company deconsolidated Fairfax Africa (subsequently renamed Helios Fairfax Partners Corporation) and accounted for its interest in HFP as an investment in associate pursuant to the transaction described in note 23. (10) On June 11, 2021 the company entered into an exchange and amendment transaction with Atlas in relation to its investment in $575.0 principal amount of debentures issued by Seaspan Corporation (“Seaspan”), an operating subsidiary of Atlas, whereby the company exchanged $288.0 principal amount of those Seaspan debentures for newly-issued Atlas Series J preferred shares and equity warrants with an exercise price of $13.71 per share. The terms of the remaining Seaspan debentures were amended to primarily remove the company’s mandatory put rights and discharge all outstanding guarantees and liens on collateral. The company derecognized the Seaspan debentures that were exchanged and recorded its investment in the Atlas preferred shares and warrants as preferred stocks and derivatives respectively on the consolidated balance sheet. On August 23, 2021 Atlas redeemed the remaining $287.0 principal amount of the Seaspan debentures. (11) On July 1, 2020 the company commenced consolidating Farmers Edge as the company held convertible debentures and warrants that, together with its holdings of common shares, represented a substantive potential voting interest of approximately 67 %. (12) On February 27, 2020 Seaspan Corporation (“Seaspan”) completed a reorganization pursuant to which Atlas Corp., a newly created holding company, became its parent. Shareholders of Seaspan, including the company, exchanged their Seaspan shares for Atlas shares with no change in ownership percentage. On February 28, 2020 Atlas acquired all issued and outstanding shares of APR Energy from the company and other APR Energy shareholders in an all-stock transaction at a deemed value of $388.3 (including certain Atlas shares reserved for holdback). Accordingly, the company derecognized its investment in APR Energy, recorded a pre-tax loss of $7.6 , increased its equity accounted carrying value of Atlas by the fair value of the APR Energy shares exchanged (considered to be equal to the fair value of the newly issued Atlas common shares received of $178.1 , which excluded the Atlas shares received by European Run-off of $45.9 ), and continued to apply the equity method of accounting to its investment in Atlas. On February 28, 2020 the company invested $100.0 in Atlas 5.50% unsecured debentures due March 1, 2027, which increased the company’s aggregate investment in Atlas debentures to a principal amount of $575.0 . Fairfax India (13) On September 16, 2021 Fairfax India transferred 43.6% out of its 54.0% equity interest in Bangalore Airport to Anchorage Infrastructure Investments Holdings Limited (“Anchorage”), its wholly-owned holding company for investments in the airport sector of India, and sold an 11.5% equity interest in Anchorage to OMERS for gross proceeds of $129.2 ( 9.5 billion Indian rupees). Upon closing Fairfax India recorded a non-controlling interest in Anchorage and continued to equity account for its consolidated 54.0% equity interest in Bangalore Airport. Annual changes in carrying value Changes in the carrying value of investments in associates, including investment in associate held for sale, for the years ended December 31 were as follows: 2021 Fairfax India Associates Joint ventures associates Total Balance - January 1 3,170.4 1,940.9 1,328.3 6,439.6 Share of pre-tax comprehensive income (loss): Share of profit 375.8 6.0 20.2 402.0 Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans (67.7) (20.5) 0.3 (87.9) Share of gains (losses) on defined benefit plans 89.1 0.1 (9.4) 79.8 397.2 (14.4) 11.1 393.9 Dividends and distributions received (153.8) (23.6) (4.6) (182.0) Purchases and acquisitions 466.5 114.4 35.7 616.6 Divestitures and other net changes in capitalization (54.8) (764.4) 0.9 (818.3) Reclassifications (1) 36.4 (352.0) — (315.6) Foreign exchange effect and other (3.2) (4.5) (22.5) (30.2) Balance - December 31 3,858.7 896.4 1,348.9 6,104.0 2020 Fairfax India Fairfax Africa Associates Joint ventures associates associates Total Balance - January 1 2,876.6 1,483.6 1,391.3 232.9 5,984.4 Share of pre-tax comprehensive income (loss): Share of profit (loss) 83.4 91.8 (24.8) (27.3) 123.1 Impairments (2) (88.3) (98.9) — (35.0) (222.2) Share of other comprehensive income (loss), excluding losses on defined benefit plans 88.0 42.1 3.2 (41.7) 91.6 Share of losses on defined benefit plans (32.2) (20.8) (4.9) — (57.9) 50.9 14.2 (26.5) (104.0) (65.4) Dividends and distributions received (70.0) (3.7) (4.9) (1.4) (80.0) Purchases and acquisitions 223.4 20.8 — 5.0 249.2 Divestitures and other net changes in capitalization (107.2) (180.6) 0.9 (1.7) (288.6) Reclassifications (1) 174.4 605.0 — — 779.4 Deconsolidation of non-insurance subsidiary (note 23) — — — (103.6) (103.6) Foreign exchange effect and other 22.3 1.6 (32.5) (27.2) (35.8) Balance - December 31 3,170.4 1,940.9 1,328.3 — 6,439.6 (1) Primarily reflects the consolidation of Eurolife and Singapore Re and the commencement of the equity method of accounting on a limited partnership investment in 2021, and the investments in HFP (an associate) and RiverStone Barbados (a joint venture) and the consolidation of Farmers Edge in 2020. See note 23. (2) Impairments recorded on associates and joint ventures are included in share of profit (loss) of associates in the consolidated statement of earnings. Impairments of $222.2 recorded during 2020 included non-cash impairment charges on Quess, Resolute, Atlas Mara and Astarta . |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives. | |
Derivatives | 7. Derivatives The following table summarizes the company’s derivative financial instruments: December 31, 2021 December 31, 2020 Notional Fair value Notional Fair value amount Cost Assets Liabilities amount Cost Assets Liabilities Equity contracts: Equity total return swaps – long positions 1,082.8 — 96.1 1.9 1,788.3 — 144.3 18.0 Equity warrants and options (1) 646.1 113.9 259.2 1.9 626.9 102.4 133.2 0.4 RiverStone Barbados AVLNs (note 23) 1,250.1 — 103.8 — — — — — CPI-linked derivative contracts 61,952.5 237.3 0.7 — 74,906.0 347.5 2.8 — U.S. treasury bond forward contracts 1,691.3 — 3.7 0.8 330.8 — 3.1 — Foreign currency forward and swap contracts (2) — — 58.4 77.4 — — 66.4 136.0 Foreign currency options — — — — — 53.7 5.8 — Other derivative contracts — 26.0 59.9 70.9 — 25.6 27.1 35.0 Total 581.8 152.9 382.7 189.4 (1) Includes the company’s investment in Atlas warrants with a fair value at December 31, 2021 of $200.1 (December 31, 2020 - $110.5 ). (2) Includes AGT’s foreign currency forward and swap liabilities with a fair value at December 31, 2021 of $47.6 (December 31, 2020 - $46.2 ). The company is exposed to significant market risk (comprised of foreign currency risk, interest rate risk and other price risk) through its investing activities. Derivative contracts entered into by the company, with limited exceptions, are considered investments or economic hedges and are not designated as hedges for financial reporting. Equity contracts Equity total return swaps - long positions During 2021 the company entered into $753.6 notional amount of long equity total return swaps for investment purposes which included long equity total return swaps on an aggregate of 969,460 Fairfax subordinate voting shares with an original notional amount of $403.3 (Cdn$508.5) or approximately $416.03 (Cdn$524.47) per share, all of which remained open at December 31, 2021. At December 31, 2021 the company held long equity total return swaps on individual equities for investment purposes with an original notional amount at December 31, 2021 of $866.2 (December 31, 2020 - $1,746.2), which included an aggregate of 1,964,155 Fairfax subordinate voting shares with an original notional amount of $732.5 (Cdn$935.0) or approximately $372.96 (Cdn $476.03) per share. These contracts provide a return which is directly correlated to changes in the fair values of the underlying individual equities. During 2021 the company received net cash of $439.6 (2020 - $207.4) in connection with the closures and reset provisions of its long equity total return swaps (excluding the impact of collateral requirements). During 2021 the company closed out $1,876.7 notional amount (2020 - $878.8) of its long equity total return swaps and recorded net realized gains on investments of $243.0 (2020 - $216.7). Equity total return swaps - short positions The company has held short equity total return swaps for investment purposes from time to time, but no longer held any at December 31, 2021 (December 31, 2020 - nil). These contracts provided a return which was inverse to changes in the fair values of the underlying individual equities. During 2021 the company did not initiate or close out any short equity total return swaps. During 2020 the company paid net cash of $613.2 in connection with the closures and reset provisions of its short equity total return swaps (excluding the impact of collateral requirements). During 2020 the company closed out $898.4 notional amount of short equity total return swaps and recognized net losses on investments of $528.6 (realized losses of $703.9, of which $175.3 was recognized as unrealized losses in prior years). Collateral deposits on derivative contracts At December 31, 2021 the fair value of collateral deposited for the benefit of derivative counterparties included in holding company cash and investments and in assets pledged for derivative obligations was $230.5 (December 31, 2020 - $275.9), comprised of collateral of $221.2 (December 31, 2020 - $226.4) required to be deposited to enter into such derivative contracts (principally related to total return swaps), and collateral of $9.3 (December 31, 2020 - $49.5) securing amounts owed to counterparties in respect of fair value changes since the most recent reset date. U.S. treasury bond forward contracts To reduce its exposure to interest rate risk (primarily exposure to certain long dated U.S. corporate bonds and U.S. state and municipal bonds held in its fixed income portfolio), the company held forward contracts to sell long dated U.S. treasury bonds with a notional amount at December 31, 2021 of $1,691.3 (December 31, 2020 - $330.8). These contracts have an average term to maturity of less than six months, and may be renewed at market rates. During 2021 the company recorded net gains on investments of $25.7 (2020 – net losses of $102.0) on its U.S. treasury bond forward contracts. Foreign currency forward contracts Long and short foreign currency forward contracts, primarily denominated in the euro, the British pound sterling and the Canadian dollar, are used to manage certain foreign currency exposures arising from foreign currency denominated transactions. These contracts have an average term to maturity of less than one year and may be renewed at market rates. Counterparty collateral The company endeavours to limit counterparty risk through diligent selection of counterparties to its derivative contracts and through the terms of negotiated agreements. The fair value of collateral deposited for the benefit of the company at December 31, 2021 consisted of cash of $14.3 and government securities of $125.7 (December 31, 2020 - $116.4 and $12.9). The cash is recorded on the consolidated balance sheet in subsidiary cash and short term investments with a corresponding liability recorded in accounts payable and accrued liabilities. The company had not exercised its right to sell or repledge collateral at December 31, 2021. The company’s exposure to counterparty risk and the management thereof are discussed in note 24. Hedge of net investment in Canadian subsidiaries At December 31, 2021 the company had designated the carrying value of Cdn$2,800.0 principal amount of its Canadian dollar denominated unsecured senior notes with a fair value of $2,364.6 (December 31, 2020 - principal amount of Cdn$2,796.0 with a fair value of $2,397.6) as a hedge of a portion of its net investment in subsidiaries with a Canadian dollar functional currency. On March 29, 2021 the company used the net proceeds from its issuance of $671.6 (Cdn$850.0) principal amount of unsecured senior notes due 2031 to redeem its unsecured senior notes with aggregate principal amount of $670.6 (Cdn$846.0) due 2022 and 2023 as described in note 15. Contemporaneously with the redemptions, the company designated the carrying value of its $671.6 (Cdn$850.0) principal amount of unsecured senior notes as a hedge of a portion of its net investment in Canadian subsidiaries. During 2021 the company recognized pre-tax losses of $16.7 (2020 - $38.0) related to exchange rate movements on the Canadian dollar denominated unsecured senior notes in losses on hedge of net investment in Canadian subsidiaries in the consolidated statement of comprehensive income. Hedge of net investment in European operations At December 31, 2021 the company had designated the carrying value of €750.0 principal amount of its euro denominated unsecured senior notes with a fair value of $926.3 (December 31, 2020 - principal amount of €750.0 with a fair value of $1,023.9) as a hedge of its net investment in European operations with a euro functional currency. During 2021 the company recognized pre-tax gains of $63.9 (2020 - pre-tax losses of $75.8) related to exchange rate movements on the euro denominated unsecured senior notes in gains on hedge of net investment in European operations in the consolidated statement of comprehensive income. |
Insurance Contract Liabilities
Insurance Contract Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Contract Liabilities | |
Insurance Contract Liabilities | 8. Insurance Contract Liabilities December 31, 2021 December 31, 2020 Gross Ceded Net Gross Ceded Net Provision for unearned premiums 10,437.7 2,260.0 8,177.7 8,397.5 1,899.1 6,498.4 Provision for losses and loss adjustment expenses 34,422.8 8,943.9 25,478.9 30,809.3 7,947.3 22,862.0 Property and casualty insurance contract liabilities 44,860.5 11,203.9 33,656.6 39,206.8 9,846.4 29,360.4 Provision for life policy benefits (1) 2,486.0 2.3 2,483.7 — — — Insurance contract liabilities 47,346.5 11,206.2 36,140.3 39,206.8 9,846.4 29,360.4 Current 20,618.3 4,740.3 15,878.0 17,389.7 4,218.2 13,171.5 Non-current 26,728.2 6,465.9 20,262.3 21,817.1 5,628.2 16,188.9 47,346.5 11,206.2 36,140.3 39,206.8 9,846.4 29,360.4 (1) Eurolife was consolidated on July 14, 2021 as described in note 23. At December 31, 2021 the company’s net provision for losses and loss adjustment expenses of $25,478.9 (December 31, 2020 - $22,862.0) was comprised of case reserves of $10,258.5 and IBNR of $15,220.4 (December 31, 2020 - $9,390.3 and $13,471.7). Provision for unearned premiums, gross Changes in the property and casualty provision for unearned premiums for the years ended December 31 were as follows: 2021 2020 Provision for unearned premiums – January 1 8,397.5 7,222.4 Gross premiums written (1) 23,796.0 18,979.4 Less: gross premiums earned (1) (21,673.6) (17,782.9) Acquisitions of subsidiaries (note 23) 64.1 — Divestiture of subsidiary (62.9) — Foreign exchange effect and other (83.4) (21.4) Provision for unearned premiums - December 31 10,437.7 8,397.5 (1) Changes in the provision for unearned premiums, gross for the year ended December 31, 2020 exclude European Run-off’s gross premiums written and gross premiums earned of $146.5 and $115.9 , as the liabilities of European Run-off were included in liabilities associated with assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. Provision for losses and loss adjustment expenses, gross Changes in the property and casualty provision for losses and loss adjustment expenses for the years ended December 31 were as follows: 2021 2020 Provision for losses and loss adjustment expenses – January 1 30,809.3 28,500.2 Decrease in estimated losses and expenses for claims occurring in the prior years (283.1) (267.7) Losses and expenses for claims occurring in the current year 14,396.8 12,303.9 Paid on claims occurring during: the current year (3,148.6) (2,987.5) the prior years (7,212.8) (7,338.0) Acquisitions of subsidiaries (note 23) 297.3 — Divestiture of subsidiary (18.7) — Foreign exchange effect and other (1) (417.4) 598.4 Provision for losses and loss adjustment expenses – December 31 34,422.8 30,809.3 (1) Included in 2020 is $347.7 of unpaid losses from loss reserves assumed from European Run-off which were previously eliminated on consolidation. See note 23 . Changes in the property and casualty provision for losses and loss adjustment expenses presented in the table above for the year ended December 31, 2020 exclude European Run-off’s losses and loss adjustment expenses of $196.9 as the liabilities of European Run-off were included in liabilities associated with assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. Provision for life policy benefits Changes in the provision for life policy benefits for the years ended December 31 were as follows: 2021 2020 Provision for life policy benefits – January 1 — — Acquisition of subsidiary (note 23) 2,638.5 — New business and renewals 78.1 — Surrenders, lapses, maturities and deaths (121.0) — Foreign exchange effect and other (109.6) — Provision for life policy benefits – December 31 2,486.0 — Development of insurance losses, gross The development of insurance liabilities illustrates the estimation uncertainty associated with these liabilities and provides a measure of the company’s ability to estimate the ultimate value of claims. The loss development table below shows the provision for losses and loss adjustment expenses at the end of each calendar year, the cumulative payments made in respect of those reserves in subsequent years and the re-estimated amount of each calendar year’s provision for losses and loss adjustment expenses as at December 31, 2021. Calendar year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Property and casualty provision for losses and loss adjustment expenses 19,648.8 19,212.8 17,749.1 19,816.4 19,481.8 28,610.8 29,081.7 28,500.2 30,809.3 34,422.8 Less: CTR Life (1) 20.6 17.9 15.2 14.2 12.8 8.7 8.0 7.0 5.5 4.4 19,628.2 19,194.9 17,733.9 19,802.2 19,469.0 28,602.1 29,073.7 28,493.2 30,803.8 34,418.4 Cumulative payments as of: One year later 4,323.5 4,081.1 3,801.6 4,441.4 4,608.0 7,564.0 7,732.0 7,288.8 7,180.7 Two years later 7,153.1 6,787.6 6,364.5 7,283.6 7,631.4 12,081.3 12,313.5 11,598.0 Three years later 9,148.0 8,775.5 8,172.7 9,466.5 9,655.9 15,222.3 15,363.3 Four years later 10,702.8 10,212.4 9,561.8 10,914.2 11,122.6 17,378.8 Five years later 11,783.3 11,354.4 10,496.4 12,013.9 12,233.4 Six years later 12,729.6 12,123.4 11,202.2 12,859.5 Seven years later 13,335.1 12,754.2 11,793.5 Eight years later 13,877.0 13,283.6 Nine years later 14,341.1 Reserves re-estimated as of: One year later 19,021.2 18,375.6 16,696.4 19,169.3 19,343.1 27,580.6 28,974.3 28,225.5 30,360.1 Two years later 18,529.4 17,475.0 16,269.2 18,973.6 18,804.8 27,565.9 28,839.4 28,165.4 Three years later 17,820.5 17,307.9 16,114.0 18,502.5 18,752.8 27,451.3 28,990.4 Four years later 17,735.5 17,287.2 15,938.9 18,469.1 18,743.9 27,698.6 Five years later 17,830.5 17,203.5 16,049.6 18,490.5 19,046.6 Six years later 17,791.8 17,340.1 16,123.1 18,759.5 Seven years later 17,931.9 17,420.0 16,403.8 Eight years later 18,041.2 17,680.5 Nine years later 18,285.9 Favourable development 1,342.3 1,514.4 1,330.1 1,042.7 422.4 903.5 83.3 327.8 443.7 Favourable development comprised of: Effect of foreign currency translation 569.8 475.0 277.4 (185.7) (148.0) 550.0 186.3 267.6 190.6 Favourable (adverse) loss reserve development 772.5 1,039.4 1,052.7 1,228.4 570.4 353.5 (103.0) 60.2 253.1 1,342.3 1,514.4 1,330.1 1,042.7 422.4 903.5 83.3 327.8 443.7 (1) Guaranteed minimum death benefit retrocessional business written by Compagnie Transcontinentale de Réassurance (“CTR Life”), a wholly owned subsidiary of the company that was transferred to Wentworth and placed into run-off in 2002. The effect of foreign currency translation in the table above primarily arose on translation to U.S. dollars of loss reserves of subsidiaries with functional currencies other than the U.S. dollar. The company’s exposure to foreign currency risk and the management thereof are discussed in note 24. Loss reserve development in the table above excludes the loss reserve development of a subsidiary in the year it is acquired whereas the consolidated statement of earnings includes the loss reserve development of a subsidiary from its acquisition date. Favourable loss reserve development in calendar year 2021 of $253.1 in the table above was principally comprised of favourable loss emergence on accident years 2020, 2019 and 2018, partially offset by adverse development primarily related to asbestos and other latent claims liabilities. Development of losses and loss adjustment expenses for asbestos A number of the company’s subsidiaries wrote general liability policies and reinsurance prior to their acquisition by the company under which policyholders continue to present asbestos-related injury claims. Substantially all of these claims are presented under policies written many years ago and reside primarily within U.S. Run-off. There is a great deal of uncertainty surrounding these types of claims, which affects the ability of insurers and reinsurers to estimate the ultimate amount of unpaid claims and related settlement expenses. The majority of these claims differ from most other types of claims because there is inconsistent precedent, if any at all, to determine what, if any, coverage exists or which, if any, policy years and insurers or reinsurers may be liable. These uncertainties are exacerbated by judicial and legislative interpretations of coverage that in some cases have eroded the clear and express intent of the parties to the insurance contracts, and in others have expanded theories of liability. Changes in the company’s provision for losses and loss adjustment expenses related to U.S. asbestos exposure on a gross and net basis for the years ended December 31 were as follows: 2021 2020 Gross Net Gross Net Provision for asbestos claims and loss adjustment expenses - January 1 1,030.6 840.0 1,074.6 860.5 Losses and loss adjustment expenses incurred 199.1 151.6 161.0 121.2 Losses and loss adjustment expenses paid (193.0) (152.7) (205.0) (141.7) Provision for asbestos claims and loss adjustment expenses - December 31 1,036.7 838.9 1,030.6 840.0 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance. | |
Reinsurance | 9. Reinsurance Reinsurers’ share of insurance contract liabilities was comprised as follows: December 31, 2021 December 31, 2020 Gross Provision for Recoverable from Gross Provision for Recoverable recoverable from uncollectible reinsurers recoverable from uncollectible from reinsurers reinsurers reinsurance (1) reinsurers reinsurance (1) Provision for losses and loss adjustment expenses 8,989.3 (43.1) 8,946.2 7,971.7 (24.4) 7,947.3 Reinsurers’ share of paid losses 1,019.9 (135.6) 884.3 818.0 (131.2) 686.8 Provision for unearned premiums 2,260.0 — 2,260.0 1,899.1 — 1,899.1 12,269.2 (178.7) 12,090.5 10,688.8 (155.6) 10,533.2 Current 5,572.4 4,839.0 Non-current 6,518.1 5,694.2 12,090.5 10,533.2 (1) Management of credit risk on reinsurance recoverables is discussed in note 24. Changes in reinsurers’ share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance for the years ended December 31 were as follows: 2021 Provision for Recoverable Paid Unpaid Unearned uncollectible from losses losses premiums reinsurance reinsurers Balance – January 1 818.0 7,971.7 1,899.1 (155.6) 10,533.2 Reinsurers’ share of losses paid to insureds 2,360.3 (2,360.3) — — — Reinsurance recoveries received (2,152.8) — — — (2,152.8) Reinsurers’ share of unpaid losses and premiums earned (1) — 3,479.0 (5,228.8) — (1,749.8) Premiums ceded to reinsurers (1) — — 5,632.1 — 5,632.1 Change in provision, recovery or write-off of impaired balances (1.7) — — (22.1) (23.8) Acquisitions of subsidiaries (note 23) 0.3 82.7 16.7 — 99.7 Divestiture of subsidiary (3.3) (6.4) (10.6) — (20.3) Foreign exchange effect and other (0.9) (177.4) (48.5) (1.0) (227.8) Balance – December 31 1,019.9 8,989.3 2,260.0 (178.7) 12,090.5 (1) Effective October 1, 2021 Brit completed a loss portfolio transfer with a third party to reinsure loss reserves for a portfolio of risks predominantly comprised of U.S. casualty and discontinued lines of business relating to prior accident years. Pursuant to this transaction Brit ceded net insurance contract liabilities of $379.1 for consideration of $344.1 and recorded net favourable reserve development of $35.0 . 2020 Provision for Recoverable Paid Unpaid Unearned uncollectible from losses losses premiums reinsurance reinsurers Balance – January 1 776.9 6,956.7 1,583.7 (161.5) 9,155.8 Reinsurers’ share of losses paid to insureds 2,375.4 (2,375.4) — — — Reinsurance recoveries received (2,317.9) — — — (2,317.9) Reinsurers’ share of unpaid losses and premiums earned (1) — 2,842.3 (3,923.6) — (1,081.3) Premiums ceded to reinsurers — — 4,261.4 — 4,261.4 Change in provision, recovery or write-off of impaired balances (2.7) — — 6.0 3.3 Foreign exchange effect and other (2) (13.7) 548.1 (22.4) (0.1) 511.9 Balance – December 31 818.0 7,971.7 1,899.1 (155.6) 10,533.2 (1) Changes in reinsurers’ share of unpaid losses and unearned premiums for the year ended December 31, 2020 exclude European Run-off’s reinsurers’ share of unpaid losses and premiums earned of $70.6 and $13.5 as the assets of European Run-off were included in assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. (2) Includes $467.1 of unpaid losses from loss reserves ceded to European Run-off which were previously eliminated on consolidation. See note 23. Commission income earned on premiums ceded to reinsurers in 2021 of $1,007.8 (2020 - $821.0) is included in commissions, net in the consolidated statement of earnings. |
Insurance Contract Receivables
Insurance Contract Receivables and Payables | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Contract Receivables and Payables | |
Insurance Contract Receivables and Payables | 10. Insurance Contract Receivables and Payables Insurance contract receivables were comprised as follows: December 31, December 31, 2021 2020 Insurance premiums receivable 4,247.1 3,665.6 Reinsurance premiums receivable 1,863.9 1,385.3 Funds withheld receivable 574.0 567.3 Other 234.0 235.6 Provision for uncollectible receivables (35.8) (37.7) 6,883.2 5,816.1 Current 6,170.0 5,144.7 Non-current 713.2 671.4 6,883.2 5,816.1 Changes in insurance premiums receivable and reinsurance premiums receivable for the years ended December 31 were as follows: Insurance Reinsurance premiums receivable premiums receivable 2021 2020 2021 2020 Balance – January 1 3,665.6 3,325.0 1,385.3 1,176.0 Gross premiums written (1) 18,118.6 14,309.4 5,791.6 4,670.0 Premiums collected (15,703.6) (12,537.2) (3,963.7) (3,375.6) Amounts due to brokers and agents (1,770.1) (1,417.3) (1,332.3) (1,104.8) Acquisitions of subsidiaries (note 23) 10.2 — 25.8 — Divestiture of subsidiary (25.2) — — — Foreign exchange effect and other (48.4) (14.3) (42.8) 19.7 Balance – December 31 4,247.1 3,665.6 1,863.9 1,385.3 (1) Changes in insurance premiums receivable and reinsurance premiums receivable for the year ended December 31, 2020 exclude European Run-off’s gross premiums written of $146.5 as the assets of European Run-off were included in assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. Insurance contract payables were comprised as follows: December 31, December 31, 2021 2020 Payable to reinsurers 2,333.7 1,669.5 Payables associated with unit-linked life insurance products (note 3 and note 23) 621.7 — Ceded deferred premium acquisition costs 510.3 441.1 Funds withheld payable to reinsurers 274.0 206.3 Amounts payable to agents and brokers 142.4 127.2 Accrued premium taxes 124.1 93.1 Accrued commissions 100.8 69.0 Other insurance contract payables 386.5 357.8 4,493.5 2,964.0 Current 3,503.4 2,705.8 Non-current 990.1 258.2 4,493.5 2,964.0 |
Deferred Premium Acquisition Co
Deferred Premium Acquisition Costs | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Premium Acquisition Costs | |
Deferred Premium Acquisition Costs | 11. Deferred Premium Acquisition Costs Changes in deferred premium acquisition costs for the years ended December 31 were as follows: 2021 2020 Balance – January 1 1,543.7 1,344.3 Premium acquisition costs deferred 4,502.4 3,629.4 Amortization (1) (4,098.1) (3,424.0) Divestiture of subsidiary (19.7) — Foreign exchange effect and other (4.2) (6.0) Balance – December 31 1,924.1 1,543.7 (1) Excludes in 2020 amortization of European Run-off’s commission expenses of $7.7 as the assets of European Run-off were included in assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 12. Goodwill and Intangible Assets Goodwill and intangible assets were comprised as follows: Goodwill Intangible assets Total Lloyd's Customer Computer participation and broker Brand software rights (1) relationships names (1) and other (1) Balance - January 1, 2021 3,126.3 503.2 867.5 1,153.3 578.8 6,229.1 Additions 60.7 — 17.8 27.9 264.3 370.7 Disposals (2) (28.9) — (25.1) (64.0) (7.5) (125.5) Amortization — — (96.6) — (342.8) (439.4) Impairments (3) (52.1) — — (33.1) (0.1) (85.3) Foreign exchange effect and other (21.2) — (2.7) 3.2 (0.7) (21.4) Balance - December 31, 2021 3,084.8 503.2 760.9 1,087.3 492.0 5,928.2 Gross carrying amount 3,214.1 503.2 1,338.5 1,139.2 1,427.0 7,622.0 Accumulated amortization — — (577.4) — (915.4) (1,492.8) Accumulated impairment (129.3) — (0.2) (51.9) (19.6) (201.0) 3,084.8 503.2 760.9 1,087.3 492.0 5,928.2 Goodwill Intangible assets Total Lloyd's Customer Computer participation and broker Brand software rights (1) relationships names (1) and other (1) Balance - January 1, 2020 2,997.3 503.2 969.8 1,181.1 542.7 6,194.1 Additions 182.1 — (1.0) 0.1 221.0 402.2 Disposals (2) (30.3) — — — (66.5) (96.8) Amortization — — (100.4) — (115.6) (216.0) Impairments (3) (33.0) — (2.1) (44.7) (6.3) (86.1) Foreign exchange effect and other 10.2 — 1.2 16.8 3.5 31.7 Balance - December 31, 2020 3,126.3 503.2 867.5 1,153.3 578.8 6,229.1 Gross carrying amount 3,199.6 503.2 1,383.6 1,200.4 1,210.4 7,497.2 Accumulated amortization — — (513.7) — (611.9) (1,125.6) Accumulated impairment (73.3) — (2.4) (47.1) (19.7) (142.5) 3,126.3 503.2 867.5 1,153.3 578.8 6,229.1 (1) Indefinite-lived intangible assets not subject to amortization had an aggregate carrying value at December 31, 2021 of $ 1,686.2 (December 31, 2020 - $ 1,751.6 ). (2) During 2021 the company sold the operations of Toys “R” Us Canada and Fairfax India sold its 48.8 % equity interest in Privi as described in note 23. During 2020 AMAG Insurance settled its bancassurance agreement with PT Bank Pan Indonesia Tbk, received cash consideration of $ 66.3 and recorded a net gain of $ 3.2 on disposal of the intangible asset. (3) Non-cash impairment charges recorded in operating expenses and in other expenses in the consolidated statement of earnings by the insurance and reinsurance companies and Non-insurance companies reporting segment, respectively. Goodwill and intangible assets were allocated to the company’s cash-generating units (“CGUs”) as follows: December 31, 2021 December 31, 2020 Intangible Intangible Goodwill assets Total Goodwill assets Total Insurance and reinsurance companies Allied World 940.0 565.8 1,505.8 940.0 611.7 1,551.7 Brit 215.6 580.5 796.1 200.2 581.1 781.3 Zenith National 317.6 84.4 402.0 317.6 93.2 410.8 Crum & Forster 189.1 91.0 280.1 188.8 104.2 293.0 Northbridge 94.9 121.3 216.2 95.4 105.5 200.9 Odyssey Group 119.7 54.9 174.6 119.7 57.3 177.0 All other (1) 95.9 116.3 212.2 148.4 64.2 212.6 1,972.8 1,614.2 3,587.0 2,010.1 1,617.2 3,627.3 Non-insurance companies Recipe 321.2 980.5 1,301.7 280.9 1,011.0 1,291.9 Farmers Edge 208.3 16.0 224.3 202.6 17.0 219.6 Thomas Cook India 142.1 54.5 196.6 144.6 56.3 200.9 AGT 154.4 34.9 189.3 168.5 47.1 215.6 Boat Rocker 89.1 90.2 179.3 90.1 230.8 320.9 All other (2) 196.9 53.1 250.0 229.5 123.4 352.9 1,112.0 1,229.2 2,341.2 1,116.2 1,485.6 2,601.8 3,084.8 2,843.4 5,928.2 3,126.3 3,102.8 6,229.1 (1) Comprised primarily of balances related to AMAG Insurance, Pacific Insurance and Eurolife, and U.S. Run-off in 2020. (2) Comprised primarily of balances related to Dexterra Group, Pethealth, Privi (deconsolidated on April 29, 2021), Mosaic Capital (deconsolidated on August 5, 2021), and Sterling Resorts. At December 31, 2021 goodwill and intangible assets were comprised primarily of amounts arising on the consolidation of Farmers Edge during 2020, the acquisitions of AGT during 2019, Allied World during 2017, St-Hubert and Original Joe’s (both by Recipe) during 2016, Recipe and Brit during 2015, Thomas Cook India during 2012, and Zenith National during 2010. Impairment tests for goodwill and indefinite-lived intangible assets were completed during 2021 and it was concluded that no significant impairments had occurred. When testing for impairment, the recoverable amount of each CGU or group of CGUs was based on the higher of (i) fair value less costs of disposal, determined using market prices inclusive of a control premium or discounted cash flow models, and (ii) value-in-use, determined using discounted cash flow models. In preparing discounted cash flow models, cash flow projections typically covering a five year period were derived from financial budgets approved by management. Cash flows beyond the projected periods were extrapolated using estimated growth rates which do not exceed the long term average historic growth rate for the business in which each CGU operates. A number of other assumptions and estimates including premiums, investment returns, revenues, expenses, royalty rates and working capital requirements were required to be incorporated into the discounted cash flow models. The forecasts were based on best estimates of future premiums or revenues and operating expenses using historical trends, general geographical market conditions, industry trends and forecasts and other available information. These assumptions and estimates were reviewed by the applicable CGU’s management and by Fairfax management. The cash flow forecasts were adjusted by applying appropriate discount rates within a range of 8.1% to 12.1% for insurance and reinsurance subsidiaries, and 9.4% to 19.8% for non-insurance subsidiaries. A long term investment return of 5.0% was applied to the investment portfolios of insurance and reinsurance subsidiaries. The long term growth rates used to extrapolate cash flows beyond five years for the majority of the CGUs ranged from 3.0% to 3.7%. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets | |
Other Assets | 13. Other assets were comprised as follows: December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Premises and equipment and right-of-use assets (note 22) 725.6 1,558.4 2,284.0 758.1 1,996.0 2,754.1 Assets associated with unit-linked insurance products (note 3 and note 23) 637.1 — 637.1 — — — Inventories — 547.3 547.3 — 645.6 645.6 Other revenue receivables — 508.4 508.4 — 550.8 550.8 Finance lease receivables (note 22) 9.4 256.7 266.1 8.5 296.9 305.4 Income tax, sales tax and subsidies receivable 61.6 170.3 231.9 85.5 170.9 256.4 Accrued interest and dividends 211.4 3.7 215.1 195.5 2.4 197.9 Prepaid expenses 110.9 94.9 205.8 125.2 120.7 245.9 Receivable for securities sold but not yet settled 135.4 — 135.4 28.5 — 28.5 Prepaid losses on claims 129.4 — 129.4 118.6 — 118.6 Pension surplus (note 21) 113.8 — 113.8 48.8 — 48.8 Other (2) 791.1 55.9 847.0 620.0 85.2 705.2 2,925.7 3,195.6 6,121.3 1,988.7 3,868.5 5,857.2 Current 989.9 1,343.7 2,333.6 925.5 1,504.5 2,430.0 Non-current 1,935.8 1,851.9 3,787.7 1,063.2 2,364.0 3,427.2 2,925.7 3,195.6 6,121.3 1,988.7 3,868.5 5,857.2 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Principally comprised of other receivables, deposits and deferred compensation plans . |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities | |
Accounts Payable and Accrued Liabilities | 14. Accounts payable and accrued liabilities were comprised as follows: December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Lease liabilities (note 22) 384.2 756.5 1,140.7 456.8 995.3 1,452.1 Payables related to cost of sales — 580.9 580.9 — 625.7 625.7 Salaries and employee benefit liabilities 482.6 85.6 568.2 394.4 90.6 485.0 Amounts withheld and accrued taxes 453.9 23.8 477.7 367.3 29.1 396.4 Deferred gift card, hospitality and other revenue 35.4 318.5 353.9 21.1 433.3 454.4 Pension and post retirement liabilities (note 21) 237.4 16.5 253.9 325.3 26.6 351.9 Income taxes payable 163.8 11.2 175.0 42.8 21.7 64.5 Administrative and other (2) 1,150.9 284.2 1,435.1 822.0 344.1 1,166.1 2,908.2 2,077.2 4,985.4 2,429.7 2,566.4 4,996.1 Current 1,538.7 1,177.2 2,715.9 1,274.7 1,414.6 2,689.3 Non-current 1,369.5 900.0 2,269.5 1,155.0 1,151.8 2,306.8 2,908.2 2,077.2 4,985.4 2,429.7 2,566.4 4,996.1 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Principally comprised of accrued operating expenses, advances from customers and liabilities related to business acquisitions. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings. | |
Borrowings | 15. December 31, 2021 December 31, 2020 Principal Carrying Fair Principal Carrying Fair value (a) value (b) value (a) value (b) Borrowings - holding company Fairfax unsecured notes (d) 5.84% due October 14, 2022 (Cdn$446.0) (4) — — — 350.1 351.1 377.6 4.50% due March 22, 2023 (Cdn$400.0) (4) — — — 314.0 312.9 334.1 4.142% due February 7, 2024 (1) — — — 85.0 85.0 85.1 4.875% due August 13, 2024 282.5 281.1 301.7 282.5 280.6 309.7 4.95% due March 3, 2025 (Cdn$350.0) 277.1 275.4 299.6 274.7 272.5 306.3 8.30% due April 15, 2026 (e) 91.8 91.7 113.3 91.8 91.7 118.6 4.70% due December 16, 2026 (Cdn$450.0) 356.3 354.8 387.9 353.2 351.5 394.6 4.25% due December 6, 2027 (Cdn$650.0) 514.6 513.1 551.4 510.2 508.5 558.3 2.75% due March 29, 2028 (€750.0) 852.9 842.4 926.3 917.7 904.4 1,023.9 4.85% due April 17, 2028 600.0 596.3 668.5 600.0 595.8 677.6 4.23% due June 14, 2029 (Cdn$500.0) 395.8 394.2 424.4 392.5 390.6 426.7 4.625% due April 29, 2030 650.0 645.9 730.0 650.0 645.4 731.8 3.375% due March 3, 2031 (3) 600.0 585.1 620.7 — — — 3.95% due March 3, 2031(Cdn$850.0) (4) 672.9 668.0 701.3 — — — 7.75% due July 15, 2037 (e) 91.3 90.6 125.4 91.3 90.6 123.1 Revolving credit facility (2) — — — 700.0 700.0 700.0 5,385.2 5,338.6 5,850.5 5,613.0 5,580.6 6,167.4 Borrowings - insurance and reinsurance companies Odyssey Group floating rate unsecured senior notes due 2021 (6) — — — 90.0 90.0 91.0 Allied World 4.35% senior notes due October 29, 2025 500.0 503.9 536.9 500.0 505.0 544.9 Allied World revolving credit facility and other borrowings 17.4 20.6 21.1 40.8 44.2 51.4 Zenith National 8.55% debentures due August 1, 2028 (d) 38.5 38.3 38.3 38.5 38.3 38.3 Brit 3.6757% subordinated notes due December 9, 2030 (£135.0) 182.9 182.9 174.5 184.5 184.5 170.4 Brit floating rate revolving credit facility 45.0 45.0 45.0 130.0 130.0 130.0 First Mercury trust preferred securities due 2036 and 2037 (5) — — — 41.4 41.4 41.4 783.8 790.7 815.8 1,025.2 1,033.4 1,067.4 Borrowings - non-insurance companies (c) Fairfax India 5.00% unsecured senior notes due 2028 (8) 441.6 438.4 440.3 550.0 547.2 550.0 Fairfax India subsidiary borrowings 91.9 91.3 91.3 167.1 166.4 166.4 AGT credit facilities, senior notes and loans (9) 491.8 488.9 488.9 516.4 514.2 514.0 Recipe term loans and credit facilities 359.0 356.9 356.9 430.7 428.4 428.4 Boat Rocker demand loans and revolving credit facilities 93.8 93.1 93.1 184.6 183.0 183.0 Loans and revolving credit facilities primarily at floating rates (7) 155.2 155.1 155.1 362.0 360.8 360.8 1,633.3 1,623.7 1,625.6 2,210.8 2,200.0 2,202.6 Total debt 7,802.3 7,753.0 8,291.9 8,849.0 8,814.0 9,437.4 ( a) Principal net of unamortized issue costs and discounts (premiums). (b) Based principally on quoted market prices with the remainder based on discounted cash flow models using market observable inputs (Levels 1 and 2 respectively in the fair value hierarchy). (c) These borrowings are non-recourse to the holding company. (d) Issuer may redeem any time at prices specified in the instrument’s offering document, except those disclosed in footnote (e) below. (e) Not redeemable prior to the contractual maturity date. During and subsequent to 2021 the company and its subsidiaries completed the following debt transactions: Holding company (1) On October 29, 2021 the company redeemed its $85.0 principal amount of 4.142% unsecured senior notes due February 7, 2024 at par. (2) On June 29, 2021 the company amended and restated its $ 2.0 billion unsecured revolving credit facility with a syndicate of lenders which extended the term from December 21, 2022 to June 29, 2026. During 2021 the company made a net repayment of $700.0 on its revolving credit facility leaving nil borrowed at December 31, 2021 (December 31, 2020 - $700.0 ). The principal financial covenants of the credit facility require the company to maintain a ratio of consolidated debt to consolidated capitalization not exceeding 0.35 :1 and consolidated shareholders’ equity attributable to shareholders of Fairfax of not less than $9.5 billion. At December 31, 2021 the company was in compliance with its financial covenants, with a consolidated debt to consolidated capitalization ratio of 0.245 :1 and consolidated shareholders’ equity attributable to shareholders of Fairfax of $ 16.4 billion, both calculated as defined in the financial covenants. (3) On March 3, 2021 the company completed an offering of $600.0 principal amount of 3.375% unsecured senior notes due March 3, 2031 for net proceeds of $583.8 after discount, commissions and expenses. Commissions and expenses of $15.4 were included in the carrying value of the notes. (4) On March 1, 2021 the company completed an offering of $671.6 (Cdn $850.0 ) principal amount of 3.95% unsecured senior notes due March 3, 2031 for net proceeds of $666.2 after premium, commissions and expenses. Commissions and expenses of $5.4 were included in the carrying value of the notes. On March 29, 2021 the company used the net proceeds of that offering to redeem its $353.5 (Cdn $446.0 ) principal amount of 5.84% unsecured senior notes due October 14, 2022 and its $317.1 (Cdn $400.0 ) principal amount of 4.50% unsecured senior notes due March 22, 2023, and recorded a loss of $ 45.7 on redemption as interest expense. Contemporaneously with the redemptions, the company designated the carrying value of its Cdn$ 850.0 senior notes due March 3, 2031 as a hedge of a portion of its net investment in Canadian subsidiaries. Insurance and reinsurance companies (5) On December 15, 2021 Crum & Forster redeemed its $ 41.4 principal amount of First Mercury trust preferred securities. (6) On June 15, 2021 and March 15, 2021 Odyssey Group redeemed $40.0 and $50.0 principal amounts of its unsecured senior notes, respectively. Non-insurance companies (7) On December 17, 2021 Fairfax India entered into a $175.0 , 3-year unsecured floating rate revolving credit facility with a syndicate of lenders, with an option to extend for an additional year. At December 31, 2021 the credit facility remained undrawn. (8) On February 26, 2021 Fairfax India completed an offering of $500.0 principal amount of 5.00% unsecured senior notes due February 26, 2028 and subsequently used the net proceeds to repay $ 500.0 principal amount of its floating rate term loan. The company’s insurance and reinsurance subsidiaries purchased $58.4 of Fairfax India’s offering on the same terms as other participants and that intercompany investment is eliminated in the company’s consolidated financial reporting. (9) On January 4, 2022 AGT extended the maturity on its credit facilities to March 17, 2023. Changes in the carrying values of borrowings for the years ended December 31 were as follows: 2021 2020 Insurance Insurance and Non- and Non- Holding reinsurance insurance Holding reinsurance insurance company companies companies Total company companies companies Total Balance – January 1 5,580.6 1,033.4 2,200.0 8,814.0 4,117.3 1,039.6 2,075.7 7,232.6 Cash inflows from issuances 1,250.0 — 499.1 1,749.1 645.0 — 107.8 752.8 Cash outflows from repayments (801.2) (131.7) (593.9) (1,526.8) — (0.3) (82.5) (82.8) Net cash inflows (outflows) from credit facilities and short term loans (700.0) (84.3) (262.0) (1,046.3) 700.0 (10.0) 60.5 750.5 Non-cash changes: Acquisition of subsidiary (note 23) — — — — — — 127.4 127.4 Deconsolidation of subsidiary (note 23) — (22.5) (187.4) (209.9) — — (118.7) (118.7) Loss on redemption 45.7 — (0.1) 45.6 — — — — Foreign exchange effect and other (36.5) (4.2) (32.0) (72.7) 118.3 4.1 29.8 152.2 Balance – December 31 5,338.6 790.7 1,623.7 7,753.0 5,580.6 1,033.4 2,200.0 8,814.0 Principal repayments on borrowings are due as follows: 2022 2023 2024 2025 2026 Thereafter Total Holding company — — 282.5 277.1 448.1 4,377.5 5,385.2 Insurance and reinsurance companies 0.3 0.3 0.3 545.3 0.3 237.3 783.8 Non-insurance companies 584.4 62.8 208.0 21.1 20.2 736.8 1,633.3 Total 584.7 63.1 490.8 843.5 468.6 5,351.6 7,802.3 Interest Expense Interest expense in 2021 of $513.9 (2020 – $475.9) was comprised of $356.8 (2020 – $286.3) incurred on borrowings by the holding company and the insurance and reinsurance companies, inclusive of a loss on redemption of holding company unsecured senior notes of $45.7 (2020 - nil |
Total Equity
Total Equity | 12 Months Ended |
Dec. 31, 2021 | |
Total Equity | |
Total Equity | 16. Equity attributable to shareholders of Fairfax Authorized capital The authorized share capital of the company consists of an unlimited number of preferred shares issuable in series, an unlimited number of multiple voting shares (cumulatively carrying 41.8% voting power) and an unlimited number of subordinate voting shares carrying one vote per share. Issued capital Issued capital at December 31, 2021 was comprised of 1,548,000 multiple voting shares and 24,986,170 subordinate voting shares without par value prior to deducting 1,869,340 subordinate voting shares reserved in treasury for share-based payment awards (December 31, 2020 - 1,548,000, 27,124,093 and 1,696,357 respectively). The multiple voting shares are not traded. Common stock The number of shares outstanding was as follows: 2021 2020 Subordinate voting shares – January 1 25,427,736 26,082,299 Purchases for cancellation (2,137,923) (343,871) Treasury shares acquired (293,197) (457,603) Treasury shares reissued 120,214 146,911 Subordinate voting shares – December 31 23,116,830 25,427,736 Multiple voting shares – beginning and end of year 1,548,000 1,548,000 Interest in multiple and subordinate voting shares held through ownership interest in shareholder – beginning and end of year (799,230) (799,230) Common stock effectively outstanding – December 31 23,865,600 26,176,506 During 2021 the company purchased for cancellation 137,923 subordinate voting shares (2020 - 343,871) under the terms of its normal course issuer bids at a cost of $58.1 (2020 - $100.9), of which $23.9 (2020 - $15.7) was charged to retained earnings. On December 29, 2021 the company completed a substantial issuer bid pursuant to which it purchased for cancellation 2,000,000 subordinate voting shares at a price of $500.00 per share, for aggregate cash consideration of $1.0 billion, of which $504.6 was charged to retained earnings representing the excess value paid over the company’s paid-up capital of $495.4 that was recorded in common shares, purchases for cancellation, in the consolidated statement of changes in equity. During 2021 the company purchased for treasury 293,197 subordinate voting shares at a cost of $132.6 (2020 - 457,603 subordinate voting shares at a cost of $137.9) on the open market for use in its share-based payment awards. Subsequent to December 31, 2021 and up to March 3, 2022 the company purchased for treasury 92,719 subordinate voting shares at a cost of $45.9 on the open market for use in its share-based payment awards. Dividends paid by the company on its outstanding multiple voting and subordinate voting shares were as follows: Date of declaration Date of record Date of payment Dividend per share Total cash payment January 5, 2022 January 20, 2022 January 27, 2022 $ 10.00 $ 249.9 January 5, 2021 January 21, 2021 January 28, 2021 $ 10.00 $ 272.1 January 3, 2020 January 17, 2020 January 28, 2020 $ 10.00 $ 275.7 Preferred stock The terms of the company’s cumulative five-year rate reset preferred shares at December 31, 2021 were as follows: Next possible redemption and Number of Liquidation Fixed dividend Floating conversion shares Carrying preference per rate per dividend rate date (1)(2) outstanding (3) value (3) Stated capital (3) share annum per annum (4) Series C December 31, 2024 7,515,642 $ 170.8 Cdn $ 187.9 Cdn $ 25.00 4.71 % — Series D December 31, 2024 2,484,358 $ 56.4 Cdn $ 62.1 Cdn $ 25.00 — 3.28 % Series E March 31, 2025 5,440,132 $ 124.5 Cdn $ 136.0 Cdn $ 25.00 3.18 % — Series F March 31, 2025 2,099,046 $ 48.1 Cdn $ 52.5 Cdn $ 25.00 — 2.29 % Series G September 30, 2025 7,719,843 $ 182.1 Cdn $ 193.0 Cdn $ 25.00 2.96 % — Series H September 30, 2025 2,280,157 $ 53.8 Cdn $ 57.0 Cdn $ 25.00 — 2.69 % Series I December 31, 2025 10,420,101 $ 250.5 Cdn $ 260.5 Cdn $ 25.00 3.33 % — Series J December 31, 2025 1,579,899 $ 38.0 Cdn $ 39.5 Cdn $ 25.00 — 2.98 % Series K March 31, 2022 9,500,000 $ 231.7 Cdn $ 237.5 Cdn $ 25.00 4.67 % — Series M March 31, 2025 9,200,000 $ 179.6 Cdn $ 230.0 Cdn $ 25.00 5.00 % — $ 1,335.5 Cdn $ 1,456.0 (1) Fixed and floating rate cumulative preferred shares are redeemable by the company at each stated redemption date and on each subsequent five-year anniversary date at Cdn$ 25.00 per share. (2) Holders of Series C, Series E, Series G, Series I, Series K and Series M fixed rate cumulative preferred shares will have the option to convert their shares into Series D, Series F, Series H, Series J, Series L and Series N floating rate cumulative preferred shares respectively, at the specified conversion dates, and on each subsequent five-year anniversary date. Holders of Series D, Series F, Series H and Series J floating rate cumulative preferred shares will have the option to convert their shares into Series C, Series E, Series G and Series I fixed rate cumulative preferred shares respectively, at the specified conversion dates, and on each subsequent five-year anniversary date. (3) For each series of preferred shares, the number of shares outstanding, carrying value and stated capital remained unchanged during 2021. (4) The Series D, Series F, Series H, and Series J preferred shares, and the Series L and Series N preferred shares (of which none are currently issued), have a floating dividend rate equal to the three-month Government of Canada treasury bill yield plus 3.15% , 2.16% , 2.56% , 2.85% , 3.51% and 3.98% respectively, with rate resets at the end of each calendar quarter. During 2021 the company paid preferred share dividends of $44.5 (2020 - $44.0). Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax was comprised as follows: December 31, 2021 December 31, 2020 Income tax Income tax After-tax (expense) After-tax Pre-tax amount recovery amount Pre-tax amount recovery amount Items that may be subsequently reclassified to net earnings Foreign currency translation losses (636.2) 24.6 (611.6) (550.8) 12.2 (538.6) Share of accumulated other comprehensive income (loss) of associates, excluding net losses on defined benefit plans (79.8) 0.4 (79.4) 43.7 (12.3) 31.4 (716.0) 25.0 (691.0) (507.1) (0.1) (507.2) Items that will not be subsequently reclassified to net earnings Net losses on defined benefit plans (104.9) 27.5 (77.4) (214.9) 54.7 (160.2) Share of net losses on defined benefit plans of associates (57.3) 5.5 (51.8) (159.1) 18.2 (140.9) Other 8.4 10.1 18.5 (0.8) 10.1 9.3 (153.8) 43.1 (110.7) (374.8) 83.0 (291.8) Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax (869.8) 68.1 (801.7) (881.9) 82.9 (799.0) Non-controlling interests Details of non-controlling interests as at and for the years ended December 31 were as follows: Net earnings (loss) attributable to non- December 31, 2021 December 31, 2020 controlling interests Domicile Voting Carrying Voting Carrying percentage (6) value percentage (6) value 2021 2020 Insurance and reinsurance companies (1) Allied World (2) Bermuda 29.1 % 1,419.6 29.1 % 1,329.0 117.8 106.6 Brit (3) United Kingdom 13.8 % 559.3 — 121.7 14.0 (10.9) Odyssey Group (4) United States 9.99 % 550.0 — — — — All other (5) — — 402.5 — 381.1 89.4 10.9 2,931.4 1,831.8 221.2 106.6 Non-insurance companies Restaurants and retail (6) — — 494.3 — 469.7 11.8 (51.2) Fairfax India (6)(7) Canada 6.1 % 1,133.1 6.6 % 1,130.9 72.7 (29.4) Thomas Cook India India 33.2 % 56.3 33.1 % 69.4 (16.8) (23.5) Other (8) — — 315.1 — 168.9 (23.4) (183.5) 1,998.8 1,838.9 44.3 (287.6) 4,930.2 3,670.7 265.5 (181.0) (1) Includes property and casualty insurance and reinsurance companies, Life insurance and Run-off, and Corporate and other. (2) On April 28, 2021 Allied World paid a dividend of $126.4 (April 30, 2020 - $126.4 ) to its minority shareholders (OMERS, AIMCo and others).The increase in carrying value of Allied World’s non-controlling interests primarily reflected the non-controlling interests’ share of Allied World’s net earnings ( $117.8 ). The company has the option to purchase the interests of the minority shareholders in Allied World at certain dates until September 2024. (3) The increase in carrying value of Brit’s non-controlling interests during 2021 primarily reflected the sale of a 13.9% equity interest in Brit to OMERS on August 27, 2021 as described in note 23 and a third party investment of $124.0 in Brit’s subsidiary Ki Insurance, a fully digital and algorithmically-driven Lloyd’s of London syndicate. (4) On December 15, 2021 the company sold a 9.99% equity interest in Odyssey Group to OMERS and CPPIB as described in note 23. (5) Principally related to Fairfax consolidated internal investment funds (held by RiverStone Barbados as described in note 23), and Fairfax Asia. (6) At December 31, 2021 Fairfax India and Recipe’s non-controlling interest economic ownership percentages were 69.9% and 61.5% (December 31, 2020 - 72.0% and 59.8% ), which differed from their non-controlling interest voting percentages of 6.1% and 39.0% (December 31, 2020 - 6.6% and 38.9% ). Subsequent to December 31, 2021, on February 15, 2022, the company acquired an additional 5,416,000 subordinate voting shares of Fairfax India from non-controlling interests, which decreased Fairfax India’s non-controlling interest economic ownership and voting percentages to 65.6% and 5.7% at that date. (7) The increase in carrying value of Fairfax India’s non-controlling interests during 2021 primarily reflected the sale of an equity interest in Anchorage ( $107.4 ) as described in note 6, the non-controlling interests’ share of Fairfax India’s net earnings and the sale of an equity interest in Fairchem, partially offset by share repurchases ( $114.3 , primarily reflecting the completion of a substantial issuer bid for cash consideration of $105.0 in which Fairfax did not tender any shares), the deconsolidation of Privi ( $58.6) as described in note 23, and the weakening of the Indian rupee relative to the U.S. dollar. (8) The increase in carrying value of Other during 2021 primarily reflected the initial public offerings and related capital transactions at Farmers Edge and Boat Rocker. Other net changes in capitalization The impact on retained earnings and non-controlling interests of certain capital transactions and changes in ownership interests of the company’s consolidated subsidiaries for the years ended December 31, 2021 and 2020 are included in other net changes in capitalization in the consolidated statement of changes in equity as shown in the table below. See note 23 and under the heading “Non-controlling interests” earlier in this note for details of those transactions. 2021 2020 Common Non- Common Non- shareholders' controlling shareholders' controlling equity interests equity interests Sale of non-controlling interests in Odyssey Group 429.1 550.0 — — Sale (acquisition) of non-controlling interests in Brit 115.4 296.7 (47.8) (189.6) Initial public offerings and related capital transactions at Farmers Edge and Boat Rocker (3.1) 242.6 — — Third party's investment in Brit's subsidiary Ki Insurance — 124.0 — 124.4 Fairfax India's sale of an equity interest in Anchorage (note 6) 21.8 107.4 — — Dividends paid to non-controlling interests by Allied World (89.6) 89.6 (88.6) 88.6 Fairfax India share repurchases (12.5) (114.3) 0.3 (29.1) Third parties' net investments in Fairfax consolidated internal investment funds — 26.2 — 93.7 Other 91.8 (95.3) 22.2 22.3 As presented in other net changes in capitalization in the consolidated statement of changes in equity 552.9 1,226.9 (113.9) 110.3 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per Share | |
Earnings per Share | 17. Net earnings per share is calculated using the weighted average common shares outstanding as follows: 2021 2020 Net earnings attributable to shareholders of Fairfax 3,401.1 218.4 Preferred share dividends (44.5) (44.0) Net earnings attributable to common shareholders – basic and diluted 3,356.6 174.4 Weighted average common shares outstanding – basic 25,953,114 26,446,939 Share-based payment awards 1,503,931 1,273,250 Weighted average common shares outstanding – diluted 27,457,045 27,720,189 Net earnings per common share – basic $ 129.33 $ 6.59 Net earnings per common share – diluted $ 122.25 $ 6.29 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 18. The company’s provision for income taxes for the years ended December 31 were comprised as follows: 2021 2020 Current income tax: Current year expense 401.6 172.6 Adjustments to prior years' income taxes (14.6) (23.8) 387.0 148.8 Deferred income tax: Origination and reversal of temporary differences 313.5 51.1 Adjustments to prior years' deferred income taxes 18.9 15.4 Other 6.6 (8.6) 339.0 57.9 Provision for income taxes 726.0 206.7 A significant portion of the company’s earnings (loss) before income taxes may be earned or incurred outside of Canada. The statutory income tax rates for jurisdictions outside of Canada generally differ from the Canadian statutory income tax rate, and may be significantly higher or lower. The company’s earnings (loss) before income taxes by jurisdiction and the associated provision for income taxes for the years ended December 31 are summarized in the following table: 2021 2020 Canada (1) U.S. (2) U.K. (3) Other (4) Total Canada (1) U.S. (2) U.K. (3) Other (4) Total Earnings (loss) before income taxes 858.8 974.5 157.3 2,402.0 4,392.6 212.6 (110.8) (221.4) 363.7 244.1 Provision for income taxes 191.6 238.6 18.7 277.1 726.0 121.0 31.4 5.7 48.6 206.7 Net earnings (loss) 667.2 735.9 138.6 2,124.9 3,666.6 91.6 (142.2) (227.1) 315.1 37.4 (1) Includes Fairfax India and Fairfax Africa (deconsolidated on December 8, 2020). (2) Principally comprised of Crum & Forster, Zenith National, Odyssey Group (notwithstanding that certain operations of Odyssey Group conduct business outside of the U.S.), U.S. Run-off and other associated holding company results. (3) Principally comprised of Brit, European Run-off (deconsolidated on March 31, 2020) and other associated holding company results. (4) Primarily includes companies in India, Asia and Europe (excluding the U.K.), and Allied World, which has operations in multiple jurisdictions. Increased pre-tax profitability across all jurisdictions in 2021 compared to 2020 primarily reflected improved investment performance (which included the unrealized gain recorded in Asia on the company’s investment in Digit compulsory convertible preferred shares as described in note 5) and improved underwriting results in most companies. Reconciliations of the provision for income taxes calculated at the Canadian statutory income tax rate to the provision for income taxes at the effective tax rate in the consolidated financial statements for the years ended December 31 are summarized in the following table: 2021 2020 Canadian statutory income tax rate 26.5 % 26.5 % Provision for income taxes at the Canadian statutory income tax rate 1,164.0 64.7 Non-taxable investment income (149.4) (108.3) Tax rate differential on income and losses outside Canada (399.1) 5.2 Change in unrecorded tax benefit of losses and temporary differences 67.2 172.8 Change in tax rate for deferred income taxes 0.3 (5.7) Provision (recovery) relating to prior years 4.3 (8.4) Foreign exchange effect (23.0) 40.9 Other including permanent differences 61.7 45.5 Provision for income taxes 726.0 206.7 Non-taxable investment income of $149.4 in 2021 and $108.3 in 2020 were principally comprised of dividend income, non-taxable interest income and long term capital gains, and the 50% of net capital gains which are not taxable in Canada. Non-taxable investment income in 2021 also included gains on the consolidation of Eurolife and the deconsolidation of Privi. Non-taxable investment income in 2020 principally reflected the gain on deconsolidation of European Run-off, as described in note 23, that was not taxable in Canada or Barbados. The tax rate differential on income and losses outside Canada of $399.1 in 2021 principally related to income taxed at lower rates in Asia (principally related to the unrealized gain recorded on the company’s investment in Digit compulsory convertible preferred shares), the U.S. and at Allied World. The tax rate differential on income and losses outside Canada of $5.2 in 2020 principally related to losses tax-effected at lower rates at Brit and Fairfax Africa (deconsolidated on December 8, 2020), and in Barbados, partially offset by income taxed at lower rates at Allied World. The change in unrecorded tax benefit of losses and temporary differences of an income tax rate expense of $67.2 in 2021 principally related to unrecorded deferred tax assets in Canada and the U.S. of $65.6 and $24.2, partially offset by the recognition of previously unrecognized deferred tax assets in the U.K. and at Allied World of $5.5 and $22.0. The change in unrecorded tax benefit of losses and temporary differences of an income tax rate expense of $172.8 in 2020 principally related to unrecorded deferred tax assets in Canada, the U.S. and the U.K. of $63.3, $54.7 and $53.9 respectively. Other including permanent differences of $61.7 in 2021 included $8.0 related to non-cash impairment charges on goodwill. Other including permanent differences of $45.5 in 2020 principally reflected non-cash impairment charges on goodwill and intangible assets recorded by the Non-insurance companies reporting segment. Income taxes refundable and payable were as follows: December 31, December 31, 2021 2020 Income taxes refundable 58.3 88.7 Income taxes payable (175.0) (64.5) Net income taxes (payable) refundable (116.7) 24.2 Changes in net income taxes (payable) refundable during the years ended December 31 were as follows: 2021 2020 Balance - January 1 24.2 90.6 Amounts recorded in the consolidated statements of earnings (387.0) (148.8) Payments made during the year 288.7 63.3 Acquisitions of subsidiaries (note 23) (54.5) (0.3) Deconsolidation of non-insurance subsidiary (note 23) — 7.6 Foreign exchange effect and other 11.9 11.8 Balance - December 31 (116.7) 24.2 Changes in the net deferred income tax asset (liability) during the years ended December 31 were as follows: 2021 Provision Operating for losses Provision Deferred and and loss for premium capital adjustment unearned acquisition Intangible Tax losses expenses premiums costs assets Investments credits Other Total Balance - January 1 236.3 168.8 141.7 (116.1) (389.5) 23.9 174.8 117.6 357.5 Amounts recorded in the consolidated statement of earnings (3.5) 35.6 46.0 (39.4) (19.5) (339.2) 32.3 (51.3) (339.0) Amounts recorded in total equity 17.5 — — — — 0.8 — (37.5) (19.2) Acquisitions of subsidiaries (note 23) (4.2) — — 7.9 (10.3) (98.9) — 31.4 (74.1) Deconsolidation of non-insurance subsidiaries (note 23) (7.5) — — — 7.8 — — 2.3 2.6 Foreign exchange effect and other (8.6) (0.2) — (0.2) (1.6) (1.1) 6.5 1.0 (4.2) Balance - December 31 230.0 204.2 187.7 (147.8) (413.1) (414.5) 213.6 63.5 (76.4) 2020 Provision Operating for losses Provision Deferred and and loss for premium capital adjustment unearned acquisition Intangible Tax losses expenses premiums costs assets Investments credits Other Total Balance - January 1 119.2 145.3 119.9 (96.9) (428.2) 128.0 211.0 177.6 375.9 Amounts recorded in the consolidated statement of earnings 105.0 22.5 21.8 (19.3) 37.9 (110.8) (36.0) (79.0) (57.9) Amounts recorded in total equity 0.4 — — — — 0.6 — 25.1 26.1 Acquisitions of subsidiaries (note 23) (0.1) — — — — — 0.1 6.0 6.0 Deconsolidation of non-insurance subsidiary (note 23) (0.5) — — — — — — 2.3 1.8 Foreign exchange effect and other 12.3 1.0 — 0.1 0.8 6.1 (0.3) (14.4) 5.6 Balance - December 31 236.3 168.8 141.7 (116.1) (389.5) 23.9 174.8 117.6 357.5 Management expects that recognized deferred income tax assets will be realized in the normal course of operations. The most significant temporary differences included in the net deferred income tax liability at December 31, 2021 related to investments (primarily related to net unrealized investment gains in the U.S. and Asia (principally related to unrealized gains recorded in Asia on the company’s investment in Digit compulsory convertible preferred shares)), intangible assets and deferred premium acquisition costs, partially offset by deferred income tax assets related to operating and capital losses, tax credits, provision for losses and loss adjustment expenses and provision for unearned premiums. In these consolidated financial statements, investment gains and losses are primarily recognized on a mark-to-market basis but are only recognized for income tax when realized (particularly in the U.S. and several other jurisdictions). The provision for losses and loss adjustment expenses is recorded on an undiscounted basis in these consolidated financial statements but is recorded on a discounted basis in certain jurisdictions for income tax, resulting in temporary differences. Deferred income tax liabilities on intangible assets primarily relate to intangible assets recognized on acquisitions (principally Allied World, Recipe and Brit) that are typically not deductible in the determination of income taxes payable. The deferred income tax asset related to operating and capital losses arises primarily at Brit, Northbridge, Thomas Cook India, AGT and Fairfax Latam. Tax credits are primarily in the U.S. and relate to foreign taxes paid that will reduce U.S. taxes payable in the future. Other deferred income tax assets include temporary differences related to pensions and premises and equipment. Management conducts ongoing reviews of the recoverability of the deferred income tax asset and adjusts, as necessary, to reflect its anticipated realization. At December 31, 2021 deferred income tax assets of $875.9 (December 31, 2020 - $837.8) related principally to operating and capital losses and U.S. foreign tax credits have not been recorded. The losses for which deferred income tax assets have not been recorded are comprised of losses in Canada of $2,089.3 (December 31, 2020 - $2,102.8), losses in Europe of $488.8 (December 31, 2020 - $537.6), losses in the U.S. of $109.4 (December 31, 2020 - $46.1), losses at Allied World of $251.4 across various jurisdictions (December 31, 2020 - $338.8) and U.S. foreign tax credits of $44.7 (December 31, 2020 - $43.0). The losses in Canada expire between 2029 and 2041. The losses and foreign tax credits in the U.S. expire between 2024 and 2041. Substantially all of the losses in Europe do not have an expiry date. Allied World’s losses are primarily in the U.K. and Asia, with no expiry date. Deferred income tax has not been recognized for the withholding tax and other taxes that could be payable on the unremitted earnings of certain subsidiaries. Unremitted earnings at December 31, 2021 amounted to approximately $7.6 billion (December 31, 2020 – approximately $5.1 billion) and are not likely to be repatriated in the foreseeable future. |
Statutory Requirements
Statutory Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Statutory Requirements | |
Statutory Requirements | 19. The retained earnings of the company are largely represented by retained earnings at the company’s insurance and reinsurance subsidiaries. Those subsidiaries are subject to certain requirements and restrictions under their respective insurance company Acts including minimum capital requirements and dividend restrictions. The company’s capital requirements and management thereof are discussed in note 24. The company’s share of dividends paid in 2021 by the insurance and reinsurance subsidiaries, which are eliminated on consolidation, was $429.5 (2020 - $239.7). Based on the surplus and net earnings (loss) of the primary insurance and reinsurance subsidiaries as at and for the year ended December 31, 2021, the maximum dividend capacity available in 2022 at each of those subsidiaries, payable to all shareholders (including non-controlling interests) is as follows: December 31, 2021 Allied World 1,014.2 Odyssey Group 400.4 Northbridge (1) 326.6 Crum & Forster 185.3 Zenith National 70.8 1,997.3 (1) Subject to prior regulatory approval. When determining the amount of dividends to be paid from its insurance and reinsurance subsidiaries, the company considers regulatory capital requirements, and also rating agency capital tests, future capital levels required to support growth and tax planning matters, among other factors. In addition, the non-controlling interests in Allied World, Odyssey Group and Brit have a dividend in priority to the company. |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Contingencies and Commitments | |
Contingencies and Commitments | 20. Subsidiaries of the company, in the ordinary course of their business, are or may be anticipated to be defendants, or named as third parties, in damage suits. The uninsured exposure to the company is not considered to be material to the company’s financial position, financial performance or cash flows. Odyssey Group, Brit and Allied World (“the Lloyd’s participants”) underwrite in the Lloyd’s of London insurance market through their participation in certain Lloyd’s syndicates. The Lloyd’s participants have pledged cash and cash equivalents of $278.8 and securities with a fair value of $1,624.1 at December 31, 2021 as capital to support those underwriting activities. Pledged securities primarily consist of short term investments, bonds and equity investments presented within portfolio investments on the consolidated balance sheet. The Lloyd’s participants have the ability to substitute other securities for these pledged securities, subject to certain admissibility criteria. The Lloyd’s participants’ liability in respect of assets pledged as capital is limited to the aggregate amount of the pledged assets and their obligation to support these liabilities will continue until such liabilities are settled or are reinsured by a third party approved by Lloyd’s. The company believes that the syndicates for which the Lloyd’s participants are capital providers maintain sufficient liquidity and financial resources to support their ultimate liabilities and does not anticipate that the pledged assets will be utilized. The company’s maximum capital commitments for potential investments in common stocks, limited partnerships, associates and joint ventures at December 31, 2021 was $762.5. Additionally, pursuant to the sale of RiverStone Barbados as described in note 23, the company has guaranteed the value of approximately $1.1 billion of certain securities held by CVC and certain affiliates thereof until such time that the securities are purchased by or sold at the direction of Hamblin Watsa, prior to the end of 2022. |
Pensions and Post Retirement Be
Pensions and Post Retirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Pensions and Post Retirement Benefits | |
Pensions and Post Retirement Benefits | 21. The funded status of the company’s defined benefit pension and post retirement plans at December 31 were as follows: Defined benefit Defined benefit pension plans post retirement plans 2021 2020 2021 2020 Benefit obligation (1,070.9) (914.8) (83.9) (89.2) Fair value of plan assets 1,014.7 700.9 — — Net accrued liability (1) (56.2) (213.9) (83.9) (89.2) Weighted average assumptions used to determine benefit obligations: Discount rate 2.6 % 2.2 % 3.1 % 2.6 % Rate of compensation increase 2.2 % 2.6 % 3.7 % 3.4 % Health care cost trend — — 3.6 % 3.5 % (1) The defined benefit pension plan net accrued liability at December 31, 2021 of $56.2 (December 31, 2020 - $213.9 ) was comprised of pension deficits of $170.0 , partially offset by pension surpluses of $113.8 (December 31, 2020 - $262.7 , partially offset by $48.8 ). See notes 13 and 14. Pension and post retirement benefit expenses recognized in the consolidated statement of earnings for the years ended December 31 were as follows: 2021 2020 Defined benefit pension plan expense 25.8 24.3 Defined contribution pension plan expense 57.8 53.7 Defined benefit post retirement plan expense (recovery) (1) 2.0 (39.8) 85.6 38.2 (1) During 2020 Odyssey Group amended its post retirement plan which resulted in a recovery of $48.5 . Pre-tax actuarial net gains (losses) recognized in the consolidated statement of comprehensive income for the years ended December 31 were comprised as follows: 2021 2020 Defined benefit pension plans Actuarial net gains on plan assets and change in asset ceiling 78.6 17.6 Actuarial net gains (losses) on benefit obligations 33.8 (101.5) 112.4 (83.9) Defined benefit post retirement plans - actuarial net gains (losses) on benefit obligations 3.2 (4.4) 115.6 (88.3) During 2021 the company contributed $45.6 (2020 - $80.3) to its defined benefit pension and post retirement plans, and expects to contribute $18.1 in 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 22. Changes in the company’s right-of-use assets for the year ended December 31 were as follows: 2021 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Balance - January 1 396.1 611.9 1,008.0 385.4 635.2 1,020.6 Additions 44.0 92.0 136.0 81.5 100.6 182.1 Disposals (41.2) (19.8) (61.0) (3.1) (19.9) (23.0) Depreciation (2) (68.3) (113.0) (181.3) (68.9) (118.0) (186.9) Acquisitions of subsidiaries (note 23) 0.9 14.1 15.0 — 20.1 20.1 Deconsolidation of subsidiaries (note 23) (1.4) (146.7) (148.1) — — — Foreign exchange effect and other (1.3) (7.5) (8.8) 1.2 (6.1) (4.9) Balance - December 31 (note 13) 328.8 431.0 759.8 396.1 611.9 1,008.0 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Recorded in operating expenses and other expenses in the consolidated statement of earnings. The maturity profile of the company’s lease liabilities was as follows: December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total One year or less 77.4 173.6 251.0 78.7 212.9 291.6 One to two years 67.6 148.1 215.7 72.5 179.6 252.1 Two to three years 58.6 129.8 188.4 64.3 152.0 216.3 Three to four years 52.0 115.4 167.4 56.5 128.7 185.2 Four to five years 45.1 96.3 141.4 50.6 110.6 161.2 More than five years 142.8 249.6 392.4 213.4 373.0 586.4 Lease liabilities, undiscounted 443.5 912.8 1,356.3 536.0 1,156.8 1,692.8 Lease liabilities, discounted 384.2 756.5 1,140.7 456.8 995.3 1,452.1 Weighted average incremental borrowing rate 3.8 % 4.5 % 4.3 % 4.2 % 4.5 % 4.4 % (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. During 2021 the company recognized in the consolidated statement of earnings interest expense on lease liabilities of $57.9 (2020 - $62.8) (note 15), and short-term, low value and other lease costs of $19.1 (2020 - $46.5) that included the benefit of COVID-19 lease concessions and government rent subsidies of $28.9 (2020 - $15.8) primarily recorded in the Non-insurance companies reporting segment (note 26). The maturity profile of the company’s finance lease receivables was as follows: December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies(1) companies Total companies (1) companies Total One year or less 2.5 62.0 64.5 1.8 65.4 67.2 One to two years 2.3 53.0 55.3 1.8 59.3 61.1 Two to three years 1.3 44.7 46.0 1.6 49.6 51.2 Three to four years 1.0 39.3 40.3 0.7 42.0 42.7 Four to five years 1.0 33.3 34.3 0.7 35.6 36.3 More than five years 2.8 64.5 67.3 3.4 90.5 93.9 Finance lease receivables, undiscounted 10.9 296.8 307.7 10.0 342.4 352.4 Unearned finance income 1.5 40.1 41.6 1.5 45.5 47.0 Finance lease receivables (note 13) 9.4 256.7 266.1 8.5 296.9 305.4 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other . |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | 23. Year ended December 31, 2021 Sale of non-controlling interest in Odyssey Group On December 15, 2021 Odyssey Group issued shares representing an aggregate 9.99% equity interest to a subsidiary of Canada Pension Plan Investment Board (“CPPIB”) and OMERS, the pension plan for Ontario’s municipal employees, for cash consideration of $900.0 which was subsequently paid by Odyssey Group as a dividend to Fairfax. The company recorded an aggregate equity gain of $429.1, principally comprised of a dilution gain and the fair value of a call option received, which was presented as other net changes in capitalization in the consolidated statement of changes in equity. The company has the option to purchase the interests of CPPIB and OMERS in Odyssey Group at certain dates commencing in January 2025. Sale of non-controlling interest in Brit On August 27, 2021 Brit issued shares representing a 13.9% equity interest to OMERS for cash consideration of $375.0 which was subsequently paid by Brit as a dividend to Fairfax. The company recorded an aggregate equity gain of $115.4, principally comprised of a dilution gain and the fair value of a call option received, which was presented as other net changes in capitalization in the consolidated statement of changes in equity. The company has the option to purchase OMERS’ interest in Brit at certain dates commencing in October 2023. Sale of RiverStone Barbados On August 23, 2021 the company sold its 60.0% joint venture interest in RiverStone (Barbados) Ltd. (“RiverStone Barbados”) to CVC Capital Partners (“CVC”). OMERS also sold its 40.0% joint venture interest in RiverStone Barbados to CVC as part of the transaction. The company received consideration of $695.7, principally comprised of cash of $462.0, non-voting shares of CVC’s RiverStone Barbados holding company with a fair value of $200.0 (which will convert into a secured vendor loan note with a principal amount of $200.0 upon completion of certain regulatory undertakings by CVC) and a pension asset on assumption of RiverStone Barbados’ closed pension plan, and recorded a net loss of $2.1 in net gains (losses) on investments in the consolidated statement of earnings, inclusive of foreign currency translation gains that were reclassified from accumulated other comprehensive income (loss) to the consolidated statement of earnings. The company also received a contingent value instrument for potential future proceeds of up to $235.7 with a nominal fair value. Prior to completion of the transaction, certain subsidiaries of RiverStone Barbados held investments in various Fairfax subsidiaries and certain other companies. Accordingly, CVC and certain affiliates thereof became the indirect owner of those securities upon completion of the transaction. As part of the transaction, on February 8, 2021 the company had entered into Asset Value Loan Notes (“AVLNs”) to guarantee the then approximately $1.3 billion value of the securities to CVC and certain affiliates thereof until such time the securities are purchased by or sold at the direction of Hamblin Watsa, prior to the end of 2022. The company, through Hamblin Watsa, continues to manage and have direction over these securities, including their voting rights. The company recorded the AVLNs as derivative instruments whose fair value is the difference between the guaranteed value of the underlying securities and their fair value, which resulted in a derivative asset of $103.8 on the consolidated balance sheet at December 31, 2021, and a net gain on investments of $103.8 for the year then ended in the consolidated statement of earnings. During 2021 securities with a guaranteed value of $120.8 were sold or purchased by Hamblin Watsa, leaving securities with a guaranteed value of approximately $1.1 billion remaining under the AVLNs at December 31, 2021. Sale of Toys “R” Us Canada On August 19, 2021 the company sold the operations of Toys “R” Us Canada for consideration of $90.3 (Cdn$115.7), deconsolidated Toys “R” Us Canada from the Non-insurance companies reporting segment and recorded a net gain of $85.7 in net gains (losses) on investments in the consolidated statement of earnings. The consideration received was comprised principally of a monthly royalty on future revenue of Toys “R” Us Canada. Privatization of Mosaic Capital On August 5, 2021 Mosaic Capital completed a privatization arrangement with a third party purchaser pursuant to which the company exchanged its holdings of Mosaic Capital debentures and warrants, and cash of $10.7 (Cdn$13.3), for $130.8 (Cdn$163.3) of newly issued Mosaic Capital 25-year debentures, and invested $4.0 (Cdn$5.0) in the privatized company for a 20.0% equity interest. The company deconsolidated Mosaic Capital from the Non-insurance companies reporting segment, recorded the Mosaic Capital 25-year debentures at FVTPL and commenced applying the equity method of accounting to its interest in the purchaser. Acquisition of Eurolife FFH Insurance Group Holdings S.A. On July 14, 2021 the company increased its interest in Eurolife FFH Insurance Group Holdings S.A. (“Eurolife”) to 80.0% from 50.0% by exercising a call option valued at $127.3 to acquire the joint venture interest of OMERS for cash consideration of $142.7 (€120.7). The assets, liabilities and results of operations of Eurolife’s life insurance business were consolidated in the Life insurance and Run-off reporting segment and those of Eurolife’s property and casualty insurance business were consolidated in the Insurance and Reinsurance - Other reporting segment, pursuant to which the company remeasured its 50.0% joint venture interest in Eurolife to its fair value of $450.0 and recorded a net gain of $130.5 in gain on sale and consolidation of insurance subsidiaries in the consolidated statement of earnings, inclusive of foreign currency translation gains that were reclassified from accumulated other comprehensive income (loss) to the consolidated statement of earnings. The remaining 20.0% equity interest in Eurolife continues to be owned by the company’s associate Eurobank. Eurolife is a Greek insurer which distributes its life and property and casualty insurance products and services through Eurobank’s network and other distribution channels. Eurolife Acquisition date July 14, 2021 Percentage of common shares acquired 80.0 % (1) Assets: Insurance contract receivables 11.6 Portfolio investments 3,653.9 (2) Recoverable from reinsurers 18.6 Deferred income tax assets 32.6 Intangible assets 45.5 (3) Other assets 616.3 (4) 4,378.5 Liabilities: Accounts payable and accrued liabilities 273.2 (5) Insurance contract payables 529.0 Insurance contract liabilities 2,751.4 Deferred income tax liabilities 100.9 3,654.5 Purchase consideration 720.0 (6) Excess of fair value of net assets acquired over purchase consideration 4.0 4,378.5 (1) The transaction was recorded as the acquisition of a 100% equity interest in Eurolife with the non-controlling interests represented by a redemption liability (described in footnote 5 below) that was included in the fair value of assets acquired and liabilities assumed. (2) Includes subsidiary cash and cash equivalents of $1,433.3 . (3) Principally an intangible asset of $29.0 related to a distribution agreement with Eurobank. (4) Principally investment assets of $532.1 related to unit-linked life insurance contracts. (5) Includes a redemption liability of $124.9 on non-controlling interests as the company’s associate Eurobank may put its 20.0% equity interest in Eurolife to the company commencing in 2024 at the then fair value of that interest. (6) Comprised of cash consideration of $142.7 , a call option exercised with a fair value of $127.3 and the company’s 50.0% joint venture interest with a fair value of $450.0 . Additional investment in Singapore Reinsurance Corporation Limited On June 17, 2021 the company increased its ownership interest in Singapore Reinsurance Corporation Limited (“Singapore Re”) from 28.2% to 94.0% for $102.9 (SGD 138.0) and subsequently increased its ownership interest to 100%. Singapore Re is a general property and casualty reinsurer that underwrites business primarily in southeast Asia. Fairfax India’s sale of Privi Speciality Chemicals Limited On April 29, 2021 Fairfax India sold its 48.8% equity interest in Privi Speciality Chemicals Limited (“Privi”) to certain affiliates of Privi’s founders for $164.8 (12.2 billion Indian rupees), deconsolidated the assets and liabilities of Privi and recorded a net realized gain on investment of $94.9 in the consolidated statement of earnings. Year ended December 31, 2020 Fairfax Africa transaction with Helios Holdings Limited On December 8, 2020 Helios Holdings Limited (“Helios”) acquired a 45.9% voting and equity interest in Fairfax Africa in exchange for contributing its entitlement to cash flows from certain fee streams. Upon closing Helios was appointed sole investment advisor to Fairfax Africa and its co-founders were appointed as Co-Chief Executive Officers, resulting in Fairfax no longer being able to exercise control over Fairfax Africa. Fairfax Africa was subsequently renamed Helios Fairfax Partners Corporation (“HFP”) and continues to be listed on the Toronto Stock Exchange. Prior to closing, in an intercompany transaction on December 7, 2020 the holding company acquired Fairfax Africa’s 42.3% equity interest in Atlas Mara for consideration of $40.0. At closing the company deconsolidated Fairfax Africa from the Non-insurance companies reporting segment, recognized its 32.3% equity interest in HFP as an associate and recorded a loss of $61.5 in net gains on investments in the consolidated statement of earnings, inclusive of foreign currency translation losses. On March 31, 2021 the company invested in HFP debentures and warrants as described in note 6. Acquisition of Horizon North Logistics On May 29, 2020 Horizon North Logistics Inc. (“Horizon North”) legally acquired 100% of Dexterra by issuing common shares to the company representing a 49.0% equity interest in Horizon North. The company obtained de facto voting control of Horizon North as its largest equity and voting shareholder and accounted for the transaction as a reverse acquisition of Horizon North by Dexterra. The assets, liabilities and results of operations of Horizon North were consolidated in the Non-insurance companies reporting segment. Horizon North, which was subsequently renamed Dexterra Group Inc. (“Dexterra Group”), is a Canadian publicly listed corporation that provides a range of industrial services and modular construction solutions. Contribution of European Run-off to a joint venture On March 31, 2020 the company contributed its wholly owned European Run-off group (“European Run-off”) to RiverStone (Barbados) Ltd. (“RiverStone Barbados”), a newly created joint venture entity, for cash proceeds of $599.5 and a 60.0% equity interest in RiverStone Barbados with a fair value of $605.0. OMERS, the pension plan for municipal employees in the province of Ontario, contemporaneously subscribed for a 40.0% equity interest for cash consideration of $599.5, based on the fair value of European Run- off at December 31, 2019 pursuant to a subscription agreement on December 20, 2019, and entered into a shareholders’ agreement with the company to jointly direct the relevant activities of RiverStone Barbados. At closing on March 31, 2020, the company deconsolidated the assets and liabilities of European Run-off and commenced applying the equity method of accounting to its joint venture interest in RiverStone Barbados. The company recorded a pre- tax gain on deconsolidation of insurance subsidiary of $117.1 in the consolidated statement of earnings, comprised of a gain of $243.4 on the disposal of 40.0% of European Run-off and a gain of $35.6 on remeasurement to fair value at the closing date of the 60.0% of European Run-off retained, partially offset by foreign currency translation losses of $161.9 that were reclassified from accumulated other comprehensive income (loss) to the consolidated statement of earnings. The deconsolidation of European Run-off increased the company’s non-controlling interests by $340.4 at March 31, 2020 as RiverStone Barbados held investments in certain of the company’s subsidiaries. Subsequently on February 8, 2021 the company entered into AVLNs relating to those investments as described above in “ Sale of RiverStone Barbados”. |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2021 | |
Financial Risk Management | |
Financial Risk Management | 24. Overview The primary goals of the company’s financial risk management are to ensure that the outcomes of activities involving elements of risk are consistent with the company’s objectives and risk tolerance, while maintaining an appropriate balance between risk and reward and protecting the company’s consolidated balance sheet from events that have the potential to materially impair its financial strength. The company’s exposure to potential loss from its insurance and reinsurance operations and investment activities primarily relates to underwriting risk, credit risk, liquidity risk and various market risks. Balancing risk and reward is achieved through identifying risk appropriately, aligning risk tolerances with business strategy, diversifying risk, pricing appropriately for risk, mitigating risk through preventive controls and transferring risk to third parties. There were no significant changes in the types of the company’s risk exposures or the processes used by the company for managing those risk exposures at December 31, 2021 compared to those identified at December 31, 2020, except as discussed below. Financial risk management objectives are achieved through a two tiered system, with detailed risk management processes and procedures at the company’s primary operating subsidiaries and its investment management subsidiary combined with the analysis of the company- wide aggregation and accumulation of risks at the holding company. In addition, although the company and its operating subsidiaries each have an officer with designated responsibility for risk management, the company regards each Chief Executive Officer as the chief risk officer of his or her company; each Chief Executive Officer is the individual ultimately responsible for risk management for his or her company and its subsidiaries. The company’s Chief Operating Officer reports on risk considerations to the company’s Executive Committee and provides a quarterly report on key risk exposures to the company’s Board of Directors. The Executive Committee, in consultation with the Chief Operating Officer, approves certain policies for overall risk management, as well as policies addressing specific areas such as investments, underwriting, catastrophe risk and reinsurance. The company’s Investment Committee approves policies for the management of market risk (including currency risk, interest rate risk and other price risk) and the use of derivative and non-derivative financial instruments, and monitors to ensure compliance with relevant regulatory guidelines and requirements. A discussion of the company’s risks and the management of those risks is an agenda item for every regularly scheduled meeting of the Board of Directors. COVID-19 pandemic Given the uncertain and continually evolving situation resulting from COVID-19 including subsequent variants, it is difficult to predict the impact the pandemic will continue to have on the company’s businesses. The extent of the impact will depend on future developments including new information which may emerge concerning the severity of COVID-19 and additional actions which may be taken to contain or mitigate COVID-19, including extending government mandated economic shutdowns, particularly as new variants continue to emerge. COVID-19 has adversely affected the company’s operations across its operating segments, with varying effects. The company’s underwriting results in 2021 showed significant improvement from those in 2020, with modest current period COVID-19 losses of $55.1 in 2021 (primarily event cancellation and accident and health exposures). Net prior year reserve development in 2021 included net adverse prior year reserve development of $73.5 related to unfavourable development on COVID-19 losses from 2020 (primarily business interruption outside North America and workers compensation exposures). Additionally, the company expects its insurance and reinsurance operations to continue to experience reduced premiums written in certain segments where premiums are directly or indirectly linked to travel or economic activity in affected industries, albeit these segments are beginning to recover. Certain of the company’s non-insurance operations continue to experience disruptions and increased uncertainty due to current economic conditions, particularly those in the restaurant, retail and hospitality sectors whose business volumes are directly linked to the re-opening of the economy in the jurisdictions in which they operate. The company’s non-insurance operations have reported improved results in the latter half of 2021 within the Restaurants and retail operating segment as a result of higher business volumes across most companies in this segment due to reduced COVID-19 related lockdown restrictions. Underwriting Risk Property and casualty insurance and reinsurance Underwriting risk is the risk that the total cost of claims, claims adjustment expenses, commissions and premium acquisition costs will exceed premiums received and can arise as a result of numerous factors, including pricing risk, reserving risk and catastrophe risk. As discussed in the preceding section, COVID-19 has increased uncertainty and may adversely affect the company’s future underwriting results. There were no other significant changes to the company’s exposure to underwriting risk, and there were no changes to the framework used to monitor, evaluate and manage underwriting risk at December 31, 2021 compared to December 31, 2020. Principal lines of business The company’s principal insurance and reinsurance lines of business and the significant insurance risks inherent therein are as follows: ● Property, which insures against losses to property from (among other things) fire, explosion, natural perils (for example, earthquake, windstorm and flood), terrorism and engineering problems (for example, boiler explosion, machinery breakdown and construction defects). Specific types of property risks underwritten by the company include automobile, commercial and personal property and crop; ● Casualty, which insures against accidents (including workers’ compensation and automobile) and also includes employers’ liability, accident and health, medical malpractice, professional liability and umbrella coverage; and ● Specialty, which insures against marine, aerospace and surety risk, and other various risks and liabilities that are not identified above. An analysis of net premiums earned by line of business is included in note 25. The table that follows shows the company’s concentration of insurance risk by region and line of business based on gross premiums written prior to giving effect to ceded reinsurance premiums. The company’s exposure to general insurance risk varies by geographic region and may change over time. Premiums ceded to reinsurers (including retrocessions) in 2021 by line of business was comprised of property of $1,717.4 (2020 - $1,470.7), casualty of $3,487.7 (2020 - $2,361.2) and specialty of $423.4 (2020 - $429.5). Canada United States Asia (1) International (2) Total (3) For the years ended December 31 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Property 1,229.1 996.2 3,912.4 3,364.7 849.2 735.4 2,141.9 1,756.2 8,132.6 6,852.5 Casualty 1,159.0 899.1 10,364.0 7,812.8 549.8 446.6 1,659.5 1,279.4 13,732.3 10,437.9 Specialty 223.3 188.9 755.6 735.7 277.4 248.4 674.8 662.5 1,931.1 1,835.5 Total 2,611.4 2,084.2 15,032.0 11,913.2 1,676.4 1,430.4 4,476.2 3,698.1 23,796.0 19,125.9 Insurance 2,475.1 1,969.4 11,448.6 9,020.4 739.7 682.2 3,341.0 2,637.4 18,004.4 14,309.4 Reinsurance 136.3 114.8 3,583.4 2,892.8 936.7 748.2 1,135.2 1,060.7 5,791.6 4,816.5 2,611.4 2,084.2 15,032.0 11,913.2 1,676.4 1,430.4 4,476.2 3,698.1 23,796.0 19,125.9 (1) The Asia geographic segment is primarily comprised of countries located throughout Asia, including China, Japan, India, Sri Lanka, Malaysia, Singapore, Indonesia and Thailand, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe and Africa. (3) Excludes Eurolife’s life insurance operations gross premiums written of $114.2 (2020 - nil ) since Eurolife’s consolidation on July 14, 2021. Pricing risk Pricing risk arises because actual claims experience may differ adversely from the assumptions used in pricing insurance risk. Historically, the underwriting results of the property and casualty industry have fluctuated significantly due to the cyclical nature of the insurance market. Market cycles are affected by the frequency and severity of losses, levels of capacity and demand, general economic conditions and competition on rates and terms of coverage. The operating companies focus on profitable underwriting using a combination of experienced underwriting and actuarial staff, pricing models and price adequacy monitoring tools. Reserving risk Reserving risk arises because actual claims experience may differ adversely from the assumptions used in setting reserves, in large part due to the length of time between the occurrence of a loss, the reporting of the loss to the insurer and the ultimate resolution of the claim. The degree of uncertainty will vary by line of business according to the characteristics of the insured risks, with the ultimate cost of a claim determined by the actual insured loss suffered by the policyholder. Claims provisions reflect expectations of the ultimate cost of resolution and administration of claims based on an assessment of facts and circumstances then known, a review of historical settlement patterns, estimates of trends in claim severity and frequency, developing case law and other factors. The time required to learn of and settle claims is often referred to as the “tail” and is an important consideration in establishing the company’s reserves. Short-tail claims are those for which losses are normally reported soon after the incident and are generally settled within months following the reported incident. This would include, for example, most property, automobile and marine and aerospace damage. Long-tail claims are considered by the company to be those that often take three years or more to develop and settle, such as asbestos, environmental pollution, workers’ compensation, professional liability and product liability. Information concerning the loss event and ultimate cost of a long-tail claim may not be readily available, making the reserving analysis of long-tail lines of business more difficult and subject to greater uncertainties than for short-tail lines of business. In the extreme cases, long-tail claims involving asbestos and environmental pollution, it may take upwards of 40 years to settle. The company employs specialized techniques to determine such provisions using the extensive knowledge of both internal and external asbestos and environmental pollution experts and legal advisors. The establishment of provisions for losses and loss adjustment expenses is an inherently uncertain process that can be affected by internal factors such as: the risk in estimating loss development patterns based on historical data that may not be representative of future loss payment patterns; assumptions built on industry loss ratios or industry benchmark development patterns that may not reflect actual experience; the intrinsic risk as to the homogeneity of the underlying data used in carrying out the reserve analyses; and external factors such as trends relating to jury awards; economic inflation; medical cost inflation; worldwide economic conditions; tort reforms; court interpretations of coverage; the regulatory environment; underlying policy pricing; claims handling procedures; inclusion of exposures not contemplated at the time of policy inception; and significant changes in severity or frequency of losses relative to historical trends. Due to the amount of time between the occurrence of a loss, the actual reporting of the loss and the ultimate settlement of the claim, provisions may ultimately develop differently from the actuarial assumptions made when initially estimating the provision for losses. The diversity of insurance risk within the company’s portfolio of issued policies makes it difficult to predict whether material prior year reserve development will occur and, if it does occur, the location and the timing of such an occurrence. Catastrophe risk Catastrophe risk arises from exposure to large losses caused by man-made or natural catastrophes that could result in significant underwriting losses. Weather-related catastrophe losses are also affected by climate change which increases the unpredictability of both frequency and severity of such losses. As the company does not establish reserves for catastrophes in advance of the occurrence of such events, these events may cause volatility in the levels of incurred losses and reserves, subject to the effects of reinsurance recoveries. This volatility may also be contingent upon political and legal developments after the occurrence of the event. The company evaluates potential catastrophic events and assesses the probability of occurrence and magnitude of these events predominantly through probable maximum loss (“PML”) modeling techniques and through the aggregation of limits exposed. A wide range of events are simulated using the company’s proprietary and commercial models, including single large events and multiple events spanning the numerous geographic regions in which the company assumes insurance risk. Each operating company has developed and applies strict underwriting guidelines for the amount of catastrophe exposure it may assume as a standalone entity for any one risk and location, and those guidelines are regularly monitored and updated. Operating companies also manage catastrophe exposure by diversifying risk across geographic regions, catastrophe types and other lines of business, factoring in levels of reinsurance protection, adjusting the amount of business written based on capital levels and adhering to risk tolerance guidelines. The company’s head office aggregates catastrophe exposure company-wide and continually monitors the group’s aggregate exposure. Independent exposure limits for each entity in the group are aggregated to produce an exposure limit for the group as there is presently no model capable of simultaneously projecting the magnitude and probability of loss in all geographic regions in which the company operates. Currently the company’s objective is to limit its company-wide catastrophe loss exposure such that one year’s aggregate pre-tax net catastrophe losses would not exceed one year’s normalized net earnings before income taxes. The company takes a long term view and generally considers a 15% return on common shareholders’ equity, adjusted to a pre-tax basis, to be representative of one year’s normalized net earnings. The modeled probability of aggregate catastrophe losses in any one year exceeding this amount is generally more than once in every 250 years. Management of underwriting risk To manage exposure to underwriting risk, and the pricing, reserving and catastrophe risks contained therein, operating companies have established limits for underwriting authority and requirements for specific approvals of transactions involving new products or transactions involving existing products which exceed certain limits of size or complexity. The company’s objective of operating with a prudent and stable underwriting philosophy with sound reserving is also achieved through the establishment of goals, delegation of authorities, financial monitoring, underwriting reviews and remedial actions to facilitate continuous improvement. The company’s provision for claims is reviewed separately by, and must be acceptable to, internal actuaries at each operating company and the company’s Chief Actuary. Additionally, independent actuaries are periodically engaged to review an operating company’s reserves or reserves for certain lines of business. The company purchases reinsurance protection for risks assumed when it is considered prudent and cost effective to do so at the operating companies for specific exposures and, if needed, at the holding company for aggregate exposures. Steps are taken to actively reduce the volume of insurance and reinsurance underwritten on particular types of risks when the company desires to reduce its direct exposure due to inadequate pricing. As part of its overall risk management strategy, the company cedes insurance risk through proportional, non-proportional and facultative reinsurance treaties. With proportional reinsurance, the reinsurer shares a pro rata portion of the company’s losses and premium, whereas with non-proportional reinsurance, the reinsurer assumes payment of the company’s loss above a specified retention, subject to a limit. Facultative reinsurance is the reinsurance of individual risks as agreed by the company and the reinsurer. The company follows a policy of underwriting and reinsuring contracts of insurance and reinsurance which, depending on the type of contract, generally limits the liability of an operating company on any policy to a maximum amount on any one loss. Reinsurance decisions are made by operating companies to reduce and spread the risk of loss on insurance and reinsurance written, to limit multiple claims arising from a single occurrence and to protect capital resources. The amount of reinsurance purchased can vary among operating companies depending on the lines of business written, their respective capital resources and prevailing or expected market conditions. Reinsurance is generally placed on an excess of loss basis and written in several layers, the purpose of which is to limit the amount of one risk to a maximum amount acceptable to the company and to protect from losses on multiple risks arising from a single occurrence. This type of reinsurance includes what is generally referred to as catastrophe reinsurance. The company’s reinsurance does not, however, relieve the company of its primary obligation to the policyholder. The majority of reinsurance contracts purchased by the company provide coverage for a one year term and are negotiated annually. The ability of the company to obtain reinsurance on terms and prices consistent with historical results reflects, among other factors, recent loss experience of the company and of the industry in general. The effects of low interest rates, increased catastrophes, uncertainty surrounding the impact of climate change on the nature of catastrophic losses and rising claims costs are elevating reinsurance pricing, which has affected the company’s reinsurance cost for loss affected business and retroactive reinsurance. Notwithstanding the significant catastrophe losses suffered by the industry since 2017 and some uncertainty surrounding the losses ultimately ceded to reinsurers related to COVID-19, capital adequacy within the reinsurance market remains strong with new capital entering the market and alternative forms of reinsurance capacity continuing to be available. The company remains opportunistic in its use of reinsurance including alternative forms of reinsurance, balancing capital requirements and the cost of reinsurance. Life Insurance Life insurance risk in the company arises principally through Eurolife’s exposure to actual experience in the areas of mortality, morbidity, longevity, policyholder behaviour and expenses which is adverse to expectations. Exposure to underwriting risk is managed by uniform underwriting procedures that have been established at Eurolife to determine the insurability of applicants and to manage aggregate exposures for adverse deviations in assumptions. These underwriting requirements are regularly reviewed by Eurolife’s actuaries. Credit Risk Credit risk is the risk of loss resulting from the failure of a counterparty to honour its financial obligations to the company. Credit risk arises predominantly on cash and short term investments, investments in debt instruments, insurance contract receivables, recoverable from reinsurers and receivables from counterparties to derivative contracts (primarily foreign currency forward contracts and total return swaps). There were no significant changes to the company’s exposure to credit risk (except as set out in the discussion which follows) or the framework used to monitor, evaluate and manage credit risk at December 31, 2021 compared to December 31, 2020. The company’s gross credit risk exposure (without consideration of amounts held by the company as collateral) was comprised as follows: December 31, December 31, 2021 2020 Cash and short term investments 22,795.5 13,920.6 Investments in debt instruments: U.S. sovereign government (1) 3,957.9 3,058.4 Other sovereign government rated AA/Aa or higher (1)(2) 1,074.7 311.2 All other sovereign government (3) 2,194.9 649.3 Canadian provincials 45.0 49.9 U.S. states and municipalities 387.2 378.2 Corporate and other (4)(5) 6,873.9 11,848.3 Receivable from counterparties to derivative contracts 158.9 222.4 Insurance contract receivables 6,883.2 5,816.1 Recoverable from reinsurers 12,090.5 10,533.2 Other assets (6) 1,881.3 1,729.7 Total gross credit risk exposure 58,343.0 48,517.3 (1) Represented together 9.5% of the company’s total investment portfolio at December 31, 2021 (December 31, 2020 - 7.8% ) and considered by the company to have nominal credit risk. (2) Comprised primarily of bonds issued by the governments of Canada, Singapore, Australia and Hong Kong with fair values at December 31, 2021 of $614.6 , $95.1 , $92.7 and $43.5 respectively (December 31, 2020 - $16.5 , $95.7 , $42.0 and $58.7 ). (3) Comprised primarily of bonds issued by the governments of Greece, Brazil, Spain and India with fair values at December 31, 2021 of $844.7 , $415.4 , $297.5 and $192.5 respectively (December 31, 2020 - $1.2 , $40.0 , $233.9 , and $22.5 ). (4) Represents 13.0% of the company’s total investment portfolio at December 31, 2021 compared to 27.4% at December 31, 2020, with the decrease principally related to net sales of short to mid-dated high quality corporate bonds of $4,867.1 , the exchange of Seaspan debentures for Atlas preferred shares and the redemption of the remaining Seaspan debentures as described in note 6 , partially offset by net purchases of unrated first mortgage loans of $826.9 and an investment in Mosaic Capital 25-year debentures as described in note 23. (5) Includes the company’s investments in first mortgage loans at December 31, 2021 of $1,659.4 (December 31, 2020 - $775.4 ) secured by real estate predominantly in the U.S., Europe and Canada . (6) Excludes assets associated with unit-linked insurance products of $637.1 at December 31, 2021 (December 31, 2020 – nil ) for which credit risk is not borne by the company, and income taxes refundable of $58.3 at December 31, 2021 (December 31, 2020 - $88.7 ) that are considered to have nominal credit risk. Cash and short term investments The company’s cash and short term investments (including those of the holding company) are primarily held at major financial institutions in the jurisdictions in which the company operates. At December 31, 2021, 82.7% of these balances were held in Canadian and U.S. financial institutions, 14.9% in European financial institutions and 2.4% in other foreign financial institutions (December 31, 2020 - 86.7%, 10.2% and 3.1% respectively). The company monitors risks associated with cash and short term investments by regularly reviewing the financial strength and creditworthiness of these financial institutions and more frequently during periods of economic volatility. From these reviews, the company may transfer balances from financial institutions where it perceives heightened credit risk to others considered to be more stable. Investments in debt instruments The company’s risk management strategy for debt instruments is to invest primarily in those of high credit quality issuers and to limit the amount of credit exposure to any one corporate issuer. Management considers high quality debt instruments to be those with a S&P or Moody’s issuer credit rating of BBB/Baa or higher. While the company reviews third party credit ratings, it also performs its own analysis and does not delegate the credit decision to rating agencies. The company endeavours to limit credit exposure by monitoring fixed income portfolio limits on individual corporate issuers and on credit quality and may, from time to time, initiate positions in certain types of derivatives to further mitigate credit risk exposure. The composition of the company’s investments in debt instruments classified according to the higher of each security’s respective S&P and Moody’s issuer credit rating is presented in the table that follows: December 31, 2021 December 31, 2020 Amortized Fair Amortized Fair Issuer Credit Rating cost value % cost value % AAA/Aaa 5,248.2 5,237.3 36.1 3,574.3 3,604.8 22.1 AA/Aa 435.0 437.7 3.0 779.1 805.1 4.9 A/A 1,838.4 1,865.5 12.8 3,856.5 4,086.6 25.1 BBB/Baa 1,749.9 1,914.6 13.2 4,157.4 4,590.8 28.2 BB/Ba 1,840.9 1,808.3 12.4 489.6 518.8 3.2 B/B 115.0 114.8 0.8 41.7 42.9 0.3 Lower than B/B 58.4 62.9 0.4 62.4 63.8 0.4 Unrated (1)(2) 2,935.3 3,092.5 21.3 2,458.9 2,582.5 15.8 Total 14,221.1 14,533.6 100.0 15,419.9 16,295.3 100.0 (1) Comprised primarily of the fair value of the company’s investments in Blackberry Limited of $535.1 (December 31, 2020 - $438.6 ), Mosaic Capital of $129.3 (December 31, 2020 - nil ), Chorus Aviation Inc. of $90.6 (December 31, 2020 - $153.0 ) and Atlas of nil (December 31, 2020 - $575.9 ). (2) Includes the company’s investments in first mortgage loans at December 31, 2021 of $1,659.4 (December 31, 2020 - $775.4 ) secured by real estate predominantly in the U.S., Europe and Canada, primarily with loan-to-value ratios of approximately 60% , reducing the company’s credit risk exposure related to these investments. At December 31, 2021, 65.1% (December 31, 2020 - 80.3%) of the fixed income portfolio’s carrying value was rated investment grade or better, with 39.1% (December 31, 2020 – 27.0%) rated AA or better (primarily consisting of government bonds). The increase in the fair value of bonds rated AAA/Aaa primarily reflected net purchases of U.S. treasury bonds of $915.7 and Canadian government bonds of $617.3. The decrease in the fair value of bonds rated AA/Aa, A/A and BBB/Baa was primarily due to net sales of high quality corporate bonds of $289.7, $2,192.6 and $2,763.2 respectively. The increase in the fair value of bonds rated BB/Ba was primarily due to the consolidation of the bond portfolios of Eurolife. The increase in the fair value of unrated bonds was primarily due to net purchases of unrated corporate bonds and first mortgage loans of $826.9 and an investment in Mosaic Capital 25-year debentures as described in note 23, partially offset by the exchange of Seaspan debentures for Atlas preferred shares and the redemption of the remaining Seaspan debentures as described in note 6. At December 31, 2021 holdings of bonds in the ten issuers to which the company had the greatest exposure (excluding U.S., Canadian, U.K. and German sovereign government bonds) totaled $3,444.5 (December 31, 2020 - $3,474.4), which represented approximately 6.5% (December 31, 2020 - 8.0%) of the total investment portfolio. Exposure to the largest single issuer of corporate bonds at December 31, 2021 was the company’s investment in Blackberry Limited of $535.1 (December 31, 2020 - Atlas of $575.9), which represented approximately 1.0% (December 31, 2020 - 1.3%) of the total investment portfolio. Counterparties to derivative contracts Counterparty risk arises from the company’s derivative contracts primarily in three ways: first, a counterparty may be unable to honour its obligation under a derivative contract and have insufficient collateral pledged in favour of the company to support that obligation; second, collateral deposited by the company to a counterparty as a prerequisite for entering into certain derivative contracts (also known as initial margin) may be at risk should the counterparty face financial difficulty; and third, excess collateral pledged in favour of a counterparty may be at risk should the counterparty face financial difficulty (counterparties may hold excess collateral as a result of the timing of the settlement of the amount of collateral required to be pledged based on the fair value of a derivative contract). The company endeavours to limit counterparty risk through diligent selection of counterparties to its derivative contracts and through the terms of negotiated agreements. Pursuant to these agreements, counterparties are contractually required to deposit eligible collateral in collateral accounts (subject to certain minimum thresholds) for the benefit of the company based on the daily fair value of the derivative contracts. The company’s exposure to risk associated with providing initial margin is mitigated where possible through the use of segregated third party custodian accounts that only permit counterparties to take control of the collateral in the event of default by the company. Agreements negotiated with counterparties provide for a single net settlement of all financial instruments covered by the agreement in the event of default by the counterparty, thereby permitting obligations owed by the company to a counterparty to be offset against amounts receivable by the company from that counterparty (the “net settlement arrangements”). The following table sets out the company’s net derivative counterparty risk assuming all derivative counterparties are simultaneously in default: December 31, December 31, 2021 2020 Total derivative assets (1) 158.9 222.4 Obligations that may be offset under net settlement arrangements (9.6) (32.0) Fair value of collateral deposited for the benefit of the company (2) (116.5) (124.3) Excess collateral pledged by the company in favour of counterparties 4.8 11.7 Initial margin not held in segregated third party custodian accounts — 5.6 Net derivative counterparty exposure after net settlement and collateral arrangements 37.6 83.4 (1) Excludes equity warrants, equity call options and other derivatives which are not subject to counterparty risk. (2) Excludes excess collateral pledged by counterparties of $22.5 at December 31, 2021 (December 31, 2020 - $5.0 ). Collateral deposited for the benefit of the company at December 31, 2021 consisted of cash of $14.3 and government securities of $125.7 (December 31, 2020 - $116.4 and $12.9). The company had not exercised its right to sell or repledge collateral at December 31, 2021. Recoverable from reinsurers Credit risk on the company’s recoverable from reinsurers balance existed at December 31, 2021 to the extent that any reinsurer may be unable or unwilling to reimburse the company under the terms of the relevant reinsurance arrangements. The company is also exposed to the credit risk assumed in fronting arrangements and to potential reinsurance capacity constraints. The company regularly assesses the creditworthiness of reinsurers with whom it transacts business; internal guidelines generally require reinsurers to have strong A.M. Best ratings and to maintain capital and surplus in excess of $500.0. Where contractually provided for, the company has collateral for outstanding balances in the form of cash, letters of credit, guarantees or assets held in trust accounts. This collateral may be drawn on when amounts remain unpaid beyond contractually specified time periods for each individual reinsurer. The company’s reinsurance security staff conduct ongoing detailed assessments of current and potential reinsurers, perform annual reviews of impaired reinsurers, and provide recommendations for uncollectible reinsurance provisions for the group. The reinsurance security staff also collect and maintain individual operating company and group reinsurance exposures across the company. The company’s single largest recoverable from a reinsurer (Munich Reinsurance Company) represented 7.5% of shareholders’ equity attributable to shareholders of Fairfax at December 31, 2021 (December 31, 2020 - 8.0%) and is rated A+ by A.M. Best. The company’s gross exposure to credit risk from its reinsurers increased at December 31, 2021 compared to December 31, 2020, primarily reflecting an increase in reinsurers’ share of unearned premiums, p |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2021 | |
Segmented Information | |
Segmented Information | 25. Segmented Information The company identifies its operating segments by operating company, consistent with its management structure. Certain of the operating segments have been aggregated into reporting segments that are categorized by type of business as described below. The accounting policies of the reporting segments are the same as those described in note 3. Prices for inter-segment reinsurance provided by Group Re, Odyssey Group and Allied World are set at arm’s length. Eliminations and adjustments principally reflect the elimination of inter-segment reinsurance, including Crum & Forster’s loss portfolio transfer to U.S. Run-off during 2021, and the elimination of intercompany investment management fees, including Fairfax India’s performance fee accrual as described in note 28. Geographic premiums are determined by the domicile of the operating companies and where the primary underlying insurance risk resides. Property and Casualty Insurance and Reinsurance Northbridge Odyssey Group Crum & Forster Zenith National Brit Allied World Fairfax Asia Insurance and Reinsurance - Other Life insurance and Run-off This reporting segment is comprised of Eurolife’s life insurance operations and U.S. Run-off, which includes TIG Insurance Company. European Run-off, which principally consisted of RiverStone (UK), Advent, Syndicate 3500 at Lloyd’s (managed by RiverStone Managing Agency Limited) and TIG Insurance (Barbados) Limited, was deconsolidated on March 31, 2020 as described in note 23. Non-insurance companies This reporting segment is comprised as follows: Restaurants and retail Fairfax India Thomas Cook India Other Corporate and Other Corporate and Other includes the parent entity (Fairfax Financial Holdings Limited), its subsidiary intermediate holding companies and Hamblin Watsa, an investment management company. Sources of Earnings by Reporting Segment Sources of earnings by reporting segment for the years ended December 31 were as follows: 2021 Property and Casualty Insurance and Reinsurance Life insurance Non- Eliminations Odyssey Crum & Zenith Allied Fairfax and insurance Corporate and Northbridge Group Forster National Brit World Asia Other Total Run-off companies and Other adjustments Consolidated Gross premiums written External 2,121.6 5,551.4 3,704.8 718.2 3,221.9 5,794.3 534.4 2,149.4 23,796.0 114.2 — — — 23,910.2 Intercompany 5.0 194.9 24.9 17.0 16.4 57.6 2.6 216.4 534.8 358.1 — — (892.9) — 2,126.6 5,746.3 3,729.7 735.2 3,238.3 5,851.9 537.0 2,365.8 24,330.8 472.3 — — (892.9) 23,910.2 Net premiums written 1,917.4 4,849.4 2,689.3 713.0 1,998.3 3,907.8 260.6 1,473.6 17,809.4 468.7 — — — 18,278.1 Net premiums earned External 1,815.9 4,178.3 2,910.5 708.9 1,754.4 3,597.9 283.1 1,199.3 16,448.3 109.7 — — — 16,558.0 Intercompany (15.0) 67.6 (397.7) 2.2 (0.1) (146.3) (33.4) 164.6 (358.1) 358.1 — — — — 1,800.9 4,245.9 2,512.8 711.1 1,754.3 3,451.6 249.7 1,363.9 16,090.2 467.8 — — — 16,558.0 Underwriting expenses (2) (1,598.7) (4,153.7) (2,410.9) (628.3) (1,698.7) (3,225.2) (229.6) (1,343.9) (15,289.0) (776.8) — — 0.3 (16,065.5) Underwriting profit (loss) 202.2 92.2 101.9 82.8 55.6 226.4 20.1 20.0 801.2 (309.0) — — 0.3 492.5 Interest income 61.8 149.0 80.9 11.7 52.2 98.4 15.4 51.4 520.8 22.2 3.9 28.2 (6.7) 568.4 Dividends 14.8 14.3 6.3 2.8 5.3 17.6 5.3 6.3 72.7 7.8 28.5 (0.8) — 108.2 Investment expenses (16.9) (46.3) (18.2) (8.1) (14.1) (39.7) (1.5) (7.0) (151.8) (10.7) (127.1) (2.8) 256.6 (35.8) Interest and dividends 59.7 117.0 69.0 6.4 43.4 76.3 19.2 50.7 441.7 19.3 (94.7) 24.6 249.9 640.8 Share of profit of associates 1.9 101.6 66.6 35.1 31.5 51.7 12.2 23.5 324.1 16.8 22.3 38.8 — 402.0 Other Revenue — — — — — — — — — — 5,157.5 — 0.5 5,158.0 Expenses — — — — — — — — — — (5,092.1) — 5.2 (5,086.9) — — — — — — — — — — 65.4 — 5.7 71.1 Operating income (loss) 263.8 310.8 237.5 124.3 130.5 354.4 51.5 94.2 1,567.0 (272.9) (7.0) 63.4 255.9 1,606.4 Net gains on investments (1) 269.2 419.2 201.9 47.4 6.9 178.0 1,485.7 36.2 2,644.5 69.7 266.0 464.9 — 3,445.1 Gain on sale and consolidation of insurance subsidiaries — — — — 33.2 35.5 60.8 4.0 133.5 — — 130.5 — 264.0 Interest expense (1.2) (4.4) (3.7) (3.7) (18.3) (27.8) (0.2) (2.2) (61.5) (7.9) (140.3) (305.4) 1.2 (513.9) Corporate overhead and other (11.8) (18.9) (32.7) (9.2) (13.2) (55.9) (19.8) (2.5) (164.0) (38.4) — 50.0 (256.6) (409.0) Pre-tax income (loss) 520.0 706.7 403.0 158.8 139.1 484.2 1,578.0 129.7 4,119.5 (249.5) 118.7 403.4 0.5 4,392.6 Provision for income taxes (726.0) Net earnings 3,666.6 Attributable to: Shareholders of Fairfax 3,401.1 Non-controlling interests 265.5 3,666.6 (1) Includes net gains on deconsolidation of non-insurance subsidiaries primarily related to the deconsolidation of Fairfax India’s subsidiary Privi of $94.9 and Toys “R” Us Canada of $85.7 as described in note 23. (2) Property and casualty insurance and reinsurance underwriting expenses for the year ended December 31, 2021 were comprised as shown below. Accident year underwriting expenses exclude the impact of favourable or adverse prior year claims reserve development. Property and Casualty Insurance and Reinsurance Odyssey Crum & Zenith Allied Fairfax Northbridge Group Forster National Brit World Asia Other Total Loss & LAE - accident year 1,038.0 3,111.7 1,434.9 427.4 981.6 2,458.3 162.9 823.7 10,438.5 Commissions 316.0 796.6 516.3 81.3 489.1 285.3 32.2 257.4 2,774.2 Other underwriting expenses 273.9 365.5 463.4 190.4 328.1 462.8 56.0 291.8 2,431.9 Underwriting expenses - accident year 1,627.9 4,273.8 2,414.6 699.1 1,798.8 3,206.4 251.1 1,372.9 15,644.6 Net (favourable) adverse claims reserve development (29.2) (120.1) (3.7) (70.8) (100.1) 18.8 (21.5) (29.0) (355.6) Underwriting expenses - calendar year 1,598.7 4,153.7 2,410.9 628.3 1,698.7 3,225.2 229.6 1,343.9 15,289.0 2020 Property and Casualty Insurance and Reinsurance Non- Eliminations Odyssey Crum & Zenith Allied Fairfax Run- insurance Corporate and Northbridge Group Forster National Brit World Asia Other Total off (1) companies and Other adjustments Consolidated Gross premiums written External 1,727.5 4,306.3 3,082.4 661.7 2,407.6 4,633.8 421.2 1,738.6 18,979.1 146.8 — — — 19,125.9 Intercompany 7.7 140.4 27.0 — 16.8 46.9 3.5 135.4 377.7 — — — (377.7) — 1,735.2 4,446.7 3,109.4 661.7 2,424.4 4,680.7 424.7 1,874.0 19,356.8 146.8 — — (377.7) 19,125.9 Net premiums written 1,540.4 3,789.6 2,543.0 646.1 1,775.6 3,017.6 221.6 1,183.8 14,717.7 146.8 — — — 14,864.5 Net premiums earned External 1,435.1 3,555.8 2,462.7 646.6 1,710.4 2,788.4 229.2 1,030.8 13,859.0 129.7 — — — 13,988.7 Intercompany (11.0) 30.8 (36.5) (2.8) 0.3 (65.8) (7.5) 94.1 1.6 (1.6) — — — — 1,424.1 3,586.6 2,426.2 643.8 1,710.7 2,722.6 221.7 1,124.9 13,860.6 128.1 — — — 13,988.7 Underwriting expenses (2) (1,315.3) (3,396.7) (2,366.1) (591.9) (1,951.0) (2,596.6) (214.6) (1,119.4) (13,551.6) (336.2) — — — (13,887.8) Underwriting profit (loss) 108.8 189.9 60.1 51.9 (240.3) 126.0 7.1 5.5 309.0 (208.1) — — — 100.9 Interest income 59.6 173.6 91.9 24.3 67.1 136.5 14.1 52.6 619.7 28.5 20.5 57.1 (9.3) 716.5 Dividends 7.9 8.6 2.2 1.8 3.4 20.3 7.1 3.7 55.0 4.9 17.2 0.7 — 77.8 Investment expenses (11.3) (31.0) (14.5) (7.1) (12.3) (30.1) (1.2) (6.6) (114.1) (8.7) 9.4 (2.0) 90.3 (25.1) Interest and dividends 56.2 151.2 79.6 19.0 58.2 126.7 20.0 49.7 560.6 24.7 47.1 55.8 81.0 769.2 Share of profit (loss) of associates (3.0) 27.8 (14.8) (4.2) 6.6 35.6 14.6 (16.4) 46.2 (11.2) (100.2) (47.6) — (112.8) Other Revenue — — — — — — — — — — 4,742.4 — (22.8) 4,719.6 Expenses — — — — — — — — — — (4,868.0) — 9.1 (4,858.9) — — — — — — — — — — (125.6) — (13.7) (139.3) Operating income (loss) 162.0 368.9 124.9 66.7 (175.5) 288.3 41.7 38.8 915.8 (194.6) (178.7) 8.2 67.3 618.0 Net gains (losses) on investments 105.7 (26.9) (158.2) (59.9) 24.4 246.0 12.3 (7.0) 136.4 (96.9) (65.6) 339.2 — 313.1 Gain (loss) on sale of insurance subsidiary (note 23) — (30.5) (25.8) — — — — — (56.3) (9.0) — 182.4 — 117.1 Interest expense (1.3) (6.4) (4.7) (3.8) (19.0) (30.3) (0.4) (1.7) (67.6) (2.3) (170.6) (235.6) 0.2 (475.9) Corporate overhead and other (8.1) (10.5) (28.2) (9.8) (11.9) (79.2) (6.0) (1.4) (155.1) (0.2) — (82.6) (90.3) (328.2) Pre-tax income (loss) 258.3 294.6 (92.0) (6.8) (182.0) 424.8 47.6 28.7 773.2 (303.0) (414.9) 211.6 (22.8) 244.1 Provision for income taxes (206.7) Net earnings 37.4 Attributable to: Shareholders of Fairfax 218.4 Non-controlling interests (181.0) 37.4 (1) Includes European Run-off prior to its deconsolidation on March 31, 2020 pursuant to the transaction described in note 23. (2) Property and casualty insurance and reinsurance underwriting expenses for the year ended December 31, 2020 were comprised as shown below. Accident year underwriting expenses exclude the impact of favourable or adverse prior year claims reserve development. Property and Casualty Insurance and Reinsurance Odyssey Crum & Zenith Allied Fairfax Northbridge Group Forster National Brit World Asia Other Total Loss & LAE - accident year 878.9 2,652.2 1,521.7 401.8 1,301.8 1,931.2 148.3 687.6 9,523.5 Commissions 243.8 693.5 415.2 74.1 436.4 253.7 30.8 215.6 2,363.1 Other underwriting expenses 231.8 270.5 434.4 190.1 275.6 416.8 54.0 246.7 2,119.9 Underwriting expenses - accident year 1,354.5 3,616.2 2,371.3 666.0 2,013.8 2,601.7 233.1 1,149.9 14,006.5 Net favourable claims reserve development (39.2) (219.5) (5.2) (74.1) (62.8) (5.1) (18.5) (30.5) (454.9) Underwriting expenses - calendar year 1,315.3 3,396.7 2,366.1 591.9 1,951.0 2,596.6 214.6 1,119.4 13,551.6 Investments in Associates, Additions to Goodwill, Segment Assets and Segment Liabilities Investments in associates, segment assets and segment liabilities at December 31, and additions to goodwill for the years then ended, by reporting segment, were as follows: Investments in associates Additions to goodwill Segment assets Segment liabilities 2021 2020 2021 2020 2021 2020 2021 2020 Property and Casualty Insurance and Reinsurance Northbridge 192.1 182.1 — — 6,152.3 5,231.6 3,978.7 3,418.3 Odyssey Group 1,211.8 1,164.9 — — 17,309.9 15,041.7 11,946.1 10,141.0 Crum & Forster 422.5 368.2 — — 8,719.4 7,596.0 6,073.4 5,448.2 Zenith National 186.9 124.5 — — 2,562.9 2,472.0 1,515.3 1,539.1 Brit 363.0 363.1 16.4 — 10,597.7 9,040.7 8,082.6 6,826.2 Allied World 593.9 537.0 — — 19,294.8 16,975.5 14,591.1 12,547.4 Fairfax Asia 159.8 149.9 — — 4,010.0 1,920.1 1,336.8 794.7 Other 255.4 219.6 — — 5,752.7 5,097.8 4,509.7 4,021.4 3,385.4 3,109.3 16.4 — 74,399.7 63,375.4 52,033.7 44,736.3 Life insurance and Run-off 272.6 129.3 — — 6,669.1 2,601.9 5,781.1 2,095.9 Non-insurance companies 1,379.7 1,373.5 44.3 182.1 7,856.4 8,349.0 4,075.1 5,124.2 Corporate and Other and eliminations and adjustments 1,066.3 1,827.5 (1) — — (2,279.8) (272.3) 3,440.2 4,570.3 Consolidated 6,104.0 6,439.6 60.7 182.1 86,645.4 74,054.0 65,330.1 56,526.7 (1) Includes investment in associate held for sale related to RiverStone Barbados of $729.5 as described in note 23. Product Line Net premiums earned by product line for the years ended December 31 were as follows: Property Casualty Specialty (1) Total 2021 2020 2021 2020 2021 2020 2021 2020 Property and Casualty Insurance and Reinsurance - net premiums earned Northbridge 810.8 626.4 828.7 659.6 161.4 138.1 1,800.9 1,424.1 Odyssey Group 2,187.5 1,838.9 1,741.8 1,444.0 316.6 303.7 4,245.9 3,586.6 Crum & Forster 355.9 364.2 1,903.3 1,837.5 253.6 224.5 2,512.8 2,426.2 Zenith National 42.9 37.5 668.2 605.9 — 0.4 711.1 643.8 Brit 699.2 544.3 745.7 853.0 309.4 313.4 1,754.3 1,710.7 Allied World 990.2 882.6 2,369.3 1,755.4 92.1 84.6 3,451.6 2,722.6 Fairfax Asia 90.4 74.5 120.9 116.4 38.4 30.8 249.7 221.7 Other 744.5 634.3 423.4 332.1 196.0 158.5 1,363.9 1,124.9 5,921.4 5,002.7 8,801.3 7,603.9 1,367.5 1,254.0 16,090.2 13,860.6 Life insurance and Run-off (1) 8.2 31.6 348.8 31.5 110.8 65.0 467.8 128.1 Consolidated net premiums earned 5,929.6 5,034.3 9,150.1 7,635.4 1,478.3 1,319.0 16,558.0 13,988.7 Interest and dividends 640.8 769.2 Share of profit (loss) of associates 402.0 (112.8) Net gains on investments 3,445.1 313.1 Gain on sale and consolidation of insurance subsidiaries (note 23) 264.0 117.1 Other revenue 5,158.0 4,719.6 Consolidated income 26,467.9 19,794.9 Distribution of net premiums earned 35.8 % 36.0 % 55.3 % 54.6 % 8.9 % 9.4 % 100.0 % 100.0 % (1) Includes Eurolife’s life insurance operations since Eurolife’s consolidation on July 14, 2021, and European Run-off prior to its deconsolidation on March 31, 2020, pursuant to the transactions described in note 23. Geographic Region Net premiums earned by geographic region for the years ended December 31 were as follows: Canada United States Asia (1) International (2) Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Property and Casualty Insurance and Reinsurance - net premiums earned Northbridge 1,782.7 1,407.3 18.2 16.8 — — — — 1,800.9 1,424.1 Odyssey Group 124.1 101.2 2,830.6 2,356.3 518.6 469.8 772.6 659.3 4,245.9 3,586.6 Crum & Forster 2.2 — 2,495.4 2,409.2 1.2 0.2 14.0 16.8 2,512.8 2,426.2 Zenith National — — 708.5 643.8 — — 2.6 — 711.1 643.8 Brit 90.5 97.7 1,271.1 1,228.5 49.3 45.9 343.4 338.6 1,754.3 1,710.7 Allied World 78.5 52.6 2,569.7 2,030.5 239.0 227.6 564.4 411.9 3,451.6 2,722.6 Fairfax Asia — — — — 249.7 221.7 — — 249.7 221.7 Other 0.2 0.1 81.8 54.8 189.2 139.6 1,092.7 930.4 1,363.9 1,124.9 2,078.2 1,658.9 9,975.3 8,739.9 1,247.0 1,104.8 2,789.7 2,357.0 16,090.2 13,860.6 Life insurance and Run-off (3) — 0.1 358.1 1.1 — — 109.7 126.9 467.8 128.1 Consolidated net premiums earned 2,078.2 1,659.0 10,333.4 8,741.0 1,247.0 1,104.8 2,899.4 2,483.9 16,558.0 13,988.7 Interest and dividends 640.8 769.2 Share of profit (loss) of associates 402.0 (112.8) Net gains on investments 3,445.1 313.1 Gain on sale and consolidation of insurance subsidiaries (note 23) 264.0 117.1 Other revenue 5,158.0 4,719.6 Consolidated income 26,467.9 19,794.9 Distribution of net premiums earned 12.6 % 11.9 % 62.4 % 62.4 % 7.5 % 7.9 % 17.5 % 17.8 % 100.0 % 100.0 % (1) The Asia geographic segment is primarily comprised of countries located throughout Asia, including China, Japan, India, Sri Lanka, Malaysia, Singapore, Indonesia and Thailand, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe and Africa. (3) Includes Eurolife’s life insurance operations since Eurolife’s consolidation on July 14, 2021, and European Run-off prior to its deconsolidation on March 31, 2020, pursuant to the transactions described in note 23. Non-insurance companies Revenue and expenses of the non-insurance companies were comprised as follows for the years ended December 31: Restaurants and retail Fairfax India (1) Thomas Cook India (2) Other Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Revenue 1,803.8 1,734.2 228.2 312.8 249.4 225.2 2,876.1 2,470.2 5,157.5 4,742.4 Expenses (1,724.8) (1,811.1) (206.9) (305.9) (293.4) (288.3) (2,867.0) (2,462.7) (5,092.1) (4,868.0) Pre-tax income (loss) before interest expense and other (3) 79.0 (76.9) 21.3 6.9 (44.0) (63.1) 9.1 7.5 65.4 (125.6) Interest and dividends 7.5 6.1 (102.2) 28.9 (0.1) — 0.1 12.1 (94.7) 47.1 Share of profit (loss) of associates — 1.3 20.2 (24.8) (0.1) (3.4) 2.2 (73.3) 22.3 (100.2) Operating income (loss) 86.5 (69.5) (60.7) 11.0 (44.2) (66.5) 11.4 (53.7) (7.0) (178.7) Net gains (losses) on investments 29.5 (6.6) 236.4 (12.4) (3.3) 4.0 3.4 (50.6) 266.0 (65.6) Pre-tax income (loss) before interest expense 116.0 (76.1) 175.7 (1.4) (47.5) (62.5) 14.8 (104.3) 259.0 (244.3) (1) These results differ from those published by Fairfax India due to Fairfax India’s application of investment entity accounting under IFRS. (2) These results differ from those published by Thomas Cook India primarily due to differences between IFRS and Ind AS, and acquisition accounting adjustments. (3) Excludes interest and dividends, share of profit (loss) of associates and net gains (losses) on investments. Segmented Balance Sheet The company’s segmented balance sheets as at December 31, 2021 and 2020 present the assets, liabilities and non-controlling interests in each of the company’s reporting segments in accordance with the company’s IFRS accounting policies and includes, where applicable, acquisition accounting adjustments principally related to goodwill and intangible assets which arose on initial acquisition of the subsidiaries or on a subsequent step acquisition. Certain of the company’s subsidiaries hold equity interests in other Fairfax subsidiaries (“affiliates”) which are carried at cost. Affiliated insurance and reinsurance balances are not shown separately and are eliminated in “Corporate and eliminations”. December 31, 2021 December 31, 2020 Insurance Life Insurance and insurance Non- Corporate and Non- Corporate reinsurance and insurance and reinsurance insurance and companies Run-off companies eliminations (5) Consolidated companies Run-off companies eliminations (5) Consolidated Assets Holding company cash and investments 604.5 — — 873.8 1,478.3 598.1 — — 654.1 1,252.2 Insurance contract receivables 7,266.0 7.8 — (390.6) 6,883.2 6,052.5 8.4 — (244.8) 5,816.1 Portfolio investments (1)(2) 45,061.8 4,963.9 2,252.8 (581.1) 51,697.4 37,947.8 1,592.4 1,810.3 758.1 42,108.6 Deferred premium acquisition costs 1,977.3 3.8 — (57.0) 1,924.1 1,574.4 — — (30.7) 1,543.7 Recoverable from reinsurers 13,497.3 457.6 — (1,864.4) 12,090.5 11,254.2 453.7 — (1,174.7) 10,533.2 Deferred income tax assets 268.2 29.0 66.9 158.3 522.4 460.0 0.1 64.5 189.3 713.9 Goodwill and intangible assets 3,579.5 7.5 2,341.2 — 5,928.2 3,586.2 41.1 2,601.8 — 6,229.1 Due from affiliates 231.9 360.2 — (592.1) — 222.6 357.7 3.8 (584.1) — Other assets 1,746.0 810.0 3,195.5 369.8 6,121.3 1,526.4 119.2 3,868.6 343.0 5,857.2 Investments in affiliates (3) 167.2 29.3 — (196.5) — 153.2 29.3 — (182.5) — Total assets 74,399.7 6,669.1 7,856.4 (2,279.8) 86,645.4 63,375.4 2,601.9 8,349.0 (272.3) 74,054.0 Liabilities Accounts payable and accrued liabilities 2,150.4 233.4 2,077.4 524.2 4,985.4 1,843.3 59.9 2,566.4 526.5 4,996.1 Derivative obligations 72.5 — 47.9 32.5 152.9 114.9 1.1 50.0 23.4 189.4 Due to affiliates 29.4 0.2 135.1 (164.7) — 8.3 — 117.6 (125.9) — Deferred income tax liabilities 322.2 72.9 198.5 5.2 598.8 152.7 — 197.7 6.0 356.4 Insurance contract payables 4,289.4 652.0 — (447.9) 4,493.5 3,224.2 11.6 — (271.8) 2,964.0 Provision for losses and loss adjustment expenses (4) 33,684.6 4,806.1 — (1,598.4) 36,892.3 29,809.4 2,023.3 — (1,023.4) 30,809.3 Provision for unearned premiums (4) 10,694.5 16.5 — (256.8) 10,454.2 8,550.1 — — (152.6) 8,397.5 Borrowings 790.7 — 1,616.2 5,346.1 7,753.0 1,033.4 — 2,192.5 5,588.1 8,814.0 Total liabilities 52,033.7 5,781.1 4,075.1 3,440.2 65,330.1 44,736.3 2,095.9 5,124.2 4,570.3 56,526.7 Equity Shareholders' equity attributable to shareholders of Fairfax 19,778.9 888.0 1,782.5 (6,064.3) 16,385.1 17,117.4 506.0 1,385.9 (5,152.7) 13,856.6 Non-controlling interests 2,587.1 — 1,998.8 344.3 4,930.2 1,521.7 — 1,838.9 310.1 3,670.7 Total equity 22,366.0 888.0 3,781.3 (5,720.0) 21,315.3 18,639.1 506.0 3,224.8 (4,842.6) 17,527.3 Total liabilities and total equity 74,399.7 6,669.1 7,856.4 (2,279.8) 86,645.4 63,375.4 2,601.9 8,349.0 (272.3) 74,054.0 (1) Includes intercompany investments in Fairfax non-insurance subsidiaries carried at cost that are eliminated on consolidation. (2) Includes investment in associate held for sale at December 31, 2021 of nil (December 31, 2020 - $729.5 ). See note 6 and note 23. (3) Intercompany investments in Fairfax insurance and reinsurance subsidiaries carried at cost that are eliminated on consolidation. (4) Included in insurance contract liabilities on the consolidated balance sheet. (5) Corporate and eliminations includes the Fairfax holding company, subsidiary intermediate holding companies, and consolidating and eliminating entries. The most significant of those entries are the elimination of intercompany reinsurance provided by Group Re, and reinsurance provided by Odyssey Group and Allied World to the primary insurers. |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Expenses | |
Expenses | 26. Expenses Losses on claims, net, operating expenses and other expenses for the years ended December 31 were comprised as follows: 2021 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Losses and loss adjustment expenses, property and casualty 10,272.9 — 10,272.9 8,954.5 — 8,954.5 Cost of sales — 2,987.5 2,987.5 — 2,997.6 2,997.6 Wages and salaries (2) 1,547.1 761.3 2,308.4 1,359.1 632.4 1,991.5 Depreciation, amortization and impairment charges 291.0 639.4 930.4 234.6 517.5 752.1 Employee benefits 345.3 116.9 462.2 293.0 105.2 398.2 Premium taxes 285.9 — 285.9 240.3 — 240.3 Information technology costs 216.3 40.7 257.0 194.4 33.0 227.4 Audit, legal and tax professional fees 159.7 43.4 203.1 141.0 64.0 205.0 Repairs, maintenance and utilities 13.2 144.2 157.4 12.7 110.0 122.7 Share-based payments to directors and employees 118.2 18.3 136.5 103.6 5.9 109.5 Shipping and delivery 1.2 120.0 121.2 1.2 107.5 108.7 Marketing costs 33.4 70.1 103.5 27.6 67.5 95.1 Administrative expense and other (3) 402.4 145.1 547.5 299.0 218.3 517.3 Losses on claims, net, operating expenses and other expenses (4)(5) 13,686.6 5,086.9 18,773.5 11,861.0 4,858.9 16,719.9 Commissions, net (note 9) (6) 2,787.9 — 2,787.9 2,355.0 — 2,355.0 Interest expense (note 15) (6) 373.6 140.3 513.9 305.3 170.6 475.9 16,848.1 5,227.2 22,075.3 14,521.3 5,029.5 19,550.8 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Includes the benefit of COVID-19 related government wage assistance of $62.1 (2020 - $123.8 ) recorded by the non-insurance companies as a reduction of other expenses in the consolidated statement of earnings. (3) Includes the benefit of COVID-19 lease concessions and government rent subsidies of $28.9 (2020 - $15.8 ), primarily at the non-insurance companies. (4) Expenses of the insurance and reinsurance companies, excluding commissions, net and interest expense, are included in losses on claims, net and operating expenses in the consolidated statement of earnings. (5) Expenses of the non-insurance companies, excluding commissions, net and interest expense, are included in other expenses in the consolidated statement of earnings. (6) Presented as separate lines in the consolidated statement of earnings. |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 27. Cash, cash equivalents and bank overdrafts as presented in the consolidated statements of cash flows excludes restricted cash and cash equivalents that are amounts primarily required to be maintained on deposit with various regulatory authorities to support the operations of the property and casualty insurance and reinsurance subsidiaries. Cash equivalents are comprised of treasury bills and other eligible bills. December 31, 2021 Unrestricted cash and cash equivalents included in the Cash and cash equivalents included on consolidated statement of cash flows Restricted cash and cash equivalents the consolidated balance sheet Cash Cash Cash Cash equivalents Total Cash equivalents Total Cash equivalents Total Holding company cash and investments 129.9 336.0 465.9 — — — 129.9 336.0 465.9 Holding company assets pledged for derivative obligations — 46.8 46.8 — — — — 46.8 46.8 Subsidiary cash and short term investments 5,259.2 5,777.6 11,036.8 484.6 761.8 1,246.4 5,743.8 6,539.4 12,283.2 Subsidiary assets pledged for derivative obligations — 74.0 74.0 — — — — 74.0 74.0 Fairfax India 35.1 26.8 61.9 1.6 13.0 14.6 36.7 39.8 76.5 5,424.2 6,261.2 11,685.4 486.2 774.8 1,261.0 5,910.4 7,036.0 12,946.4 December 31, 2020 Unrestricted cash and cash equivalents included in the consolidated statement Cash and cash equivalents included on of cash flows Restricted cash and cash equivalents the consolidated balance sheet Cash Cash Cash Cash equivalents Total Cash equivalents Total Cash equivalents Total Holding company cash and investments 81.9 192.3 274.2 5.8 — 5.8 87.7 192.3 280.0 Subsidiary cash and short term investments 2,736.0 1,398.6 4,134.6 349.4 402.5 751.9 3,085.4 1,801.1 4,886.5 Fairfax India 36.0 22.3 58.3 31.9 — 31.9 67.9 22.3 90.2 2,853.9 1,613.2 4,467.1 387.1 402.5 789.6 3,241.0 2,015.7 5,256.7 Details of certain cash flows included in the consolidated statement of cash flows for the years ended December 31 were as follows: 2021 2020 Net (purchases) sales of securities classified at FVTPL Short term investments (767.1) (2,138.1) Bonds 2,545.7 287.2 Preferred stocks (37.3) (24.5) Common stocks 477.2 18.4 Net derivatives and other invested assets 395.9 (479.2) 2,614.4 (2,336.2) Changes in operating assets and liabilities Net increase in restricted cash and cash equivalents (472.6) (187.8) Provision for losses and loss adjustment expenses 3,692.0 1,884.3 Provision for unearned premiums 2,152.2 1,243.2 Provision for life policy benefits (167.9) — Insurance contract receivables (1,152.9) (496.7) Insurance contract payables 1,079.8 441.9 Recoverable from reinsurers (1,580.0) (898.8) Other receivables (96.7) 104.9 Accounts payable and accrued liabilities 291.1 (45.4) Other (758.1) (172.4) 2,986.9 1,873.2 Net interest and dividends received Interest and dividends received 865.7 789.8 Interest paid on borrowings (366.7) (370.4) Interest paid on lease liabilities (54.8) (62.4) 444.2 357.0 Net income taxes paid (288.7) (63.3) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 28. Management and Director Compensation Compensation for the company’s key management team for the years ended December 31 determined in accordance with the company’s IFRS accounting policies was as follows: 2021 2020 Salaries and other short-term employee benefits 10.8 10.9 Share-based payments 4.7 3.5 15.5 14.4 Compensation for the company’s Board of Directors for the years ended December 31 was as follows: 2021 2020 Retainers and fees 1.5 1.1 Share-based payments 0.4 0.6 1.9 1.7 Transactions with investments in associates Atlas preferred shares and warrants On June 11, 2021 the company exchanged certain tranches of its Atlas debentures for preferred shares and warrants as described in note 6. HFP unsecured debentures and warrants On March 31, 2021 the company invested $100.0 in HFP unsecured debentures and warrants as described in note 6. RiverStone Barbados portfolio investments On February 8, 2021 the company entered into an arrangement to purchase (unless sold earlier) certain portfolio investments owned by RiverStone Barbados pursuant to the transaction described in note 23. Eurolife non-controlling interest redemption liability Pursuant to the consolidation of Eurolife as described in note 23, the company has a redemption liability on the 20.0% non-controlling interest in Eurolife held by the company’s associate Eurobank that is included in accounts payable and accrued liabilities on the consolidated balance sheet. Transactions with subsidiaries Fairfax India’s sale of Privi On April 29, 2021 Fairfax India completed the sale of its 48.8% equity interest in Privi to certain affiliates of Privi’s founders as described in note 23. Thomas Cook India preferred shares During the first quarter of 2021 the company invested $60.0 in Thomas Cook India preferred shares through a private placement. This intercompany shareholding is eliminated in the company’s consolidated financial reporting. Fairfax India Performance Fee Receivable On December 31, 2021 the holding company had a performance fee receivable of $84.7 pursuant to its investment advisory agreement with Fairfax India for the period from January 1, 2021 to December 31, 2023. This intercompany receivable is eliminated in the company’s consolidated financial reporting. Under the investment advisory agreement, if a performance fee is payable for the period ending on December 31, 2023, the performance fee will be payable in cash, or at Fairfax’s option, in subordinate voting shares of Fairfax India. If Fairfax elects to have the performance fee paid in subordinate voting shares, such election must be made no later than December 15, 2023. On March 5, 2021 the holding company received 546,263 newly issued Fairfax India subordinate voting shares as settlement of an intercompany performance fee receivable of $5.2 pursuant to its investment advisory agreement with Fairfax India as the increase in Fairfax India’s book value per share (common shareholders’ equity divided by the number of common shares effectively outstanding) over the period from January 1, 2018 to December 31, 2020 exceeded a specified threshold. Fairfax India Senior Notes Offering On February 26, 2021 the company’s subsidiaries purchased $58.4 principal amount of Fairfax India’s 5.00% unsecured senior notes pursuant to the offering described in note 15. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2021 | |
Subsidiaries. | |
Subsidiaries | 29. The company’s principal operating subsidiaries are presented in the tables below. During 2021 the company consolidated Eurolife and Singapore Re and deconsolidated Toys “R” Us Canada, Mosaic Capital and Privi, a subsidiary of Fairfax India, as described in note 23. Excluded from these tables are intermediate holding companies of investments in subsidiaries and intercompany balances that are eliminated on consolidation. Fairfax's ownership (100% other than as December 31, 2021 Domicile shown below) Property and casualty insurance and reinsurance Northbridge Financial Corporation (Northbridge) Canada Odyssey Group Holdings, Inc. (Odyssey Group) United States 90.0 % Crum & Forster Holdings Corp. (Crum & Forster) United States Zenith National Insurance Corp. (Zenith National) United States Brit Limited (Brit) United Kingdom 86.2 % Allied World Assurance Company Holdings, Ltd (Allied World) Bermuda 70.9 % Fairfax Central and Eastern Europe, which consists of: Polskie Towarzystwo Reasekuracji Spólka Akcyjna (Polish Re) Poland Colonnade Insurance S.A. (Colonnade Insurance) Luxembourg FFH Ukraine Holdings (Fairfax Ukraine), which consists of: Ukraine 70.0 % ARX Insurance Company (ARX Insurance) Ukraine Private Joint Stock Company Insurance Company Universalna (Universalna) Ukraine Fairfax Latin America, which consists of: Fairfax Brasil Seguros Corporativos S.A. (Fairfax Brasil) Brazil La Meridional Compañía Argentina de Seguros S.A. (La Meridional Argentina) Argentina SBS Seguros Colombia S.A. (Southbridge Colombia) Colombia SBI Seguros Uruguay S.A. (Southbridge Uruguay) Uruguay Southbridge Compañía de Seguros Generales S.A. (Southbridge Chile) Chile Bryte Insurance Company Ltd (Bryte Insurance) South Africa Eurolife FFH General Insurance Single Member S.A. (Eurolife General) Greece 80.0 % Group Re, which underwrites business in: CRC Reinsurance Limited (CRC Re) Barbados Wentworth Insurance Company Ltd. (Wentworth) Barbados Connemara Reinsurance Company Ltd. (Connemara) Barbados Fairfax Asia, which consists of: Falcon Insurance Company (Hong Kong) Limited (Falcon) Hong Kong The Pacific Insurance Berhad (Pacific Insurance) Malaysia 85.0 % PT Asuransi Multi Artha Guna Tbk (AMAG Insurance) Indonesia 80.3 % Fairfirst Insurance Limited (Fairfirst Insurance) Sri Lanka 78.0 % Singapore Reinsurance Corporation Limited (Singapore Re) Singapore Life insurance and Run-off Eurolife FFH Life Insurance Group Holdings S.A. (Eurolife) Greece 80.0 % Run-off , which is principally comprised of: U.S. Run-off: TIG Insurance Company (TIG Insurance) United States Investment management Hamblin Watsa Investment Counsel Ltd. (Hamblin Watsa) Canada Fairfax's December 31, 2021 Domicile ownership Primary business Non-insurance companies Restaurants and retail Recipe Unlimited Corporation (Recipe) Canada 38.5 % (1) Franchisor, owner and operator of restaurants Sporting Life Group Limited, which owns: Canada 71.4 % Invests in retail businesses 100.0% of Sporting Life Inc. (Sporting Life) Canada 71.4 % Retailer of sporting goods and sports apparel 100.0% of Golf Town Limited (Golf Town) Canada 71.4 % Retailer of golf equipment, apparel and accessories Fairfax India Fairfax India Holdings Corporation (Fairfax India) (2) Canada 30.1 % (2) Invests in public and private Indian businesses Thomas Cook India Thomas Cook (India) Limited (Thomas Cook India), which owns: India 66.8 % Provider of integrated travel and travel-related financial services 100.0% of Sterling Holiday Resorts Limited (Sterling Resorts) India 66.8 % Owner and operator of holiday resorts Other AGT Food and Ingredients Inc. (AGT) Canada 58.0 % Originator, processor and distributor of value-added pulses and staple foods Dexterra Group Inc. (Dexterra Group) Canada 48.8 % Provider of Infrastructure support services Boat Rocker Media Inc. (Boat Rocker) Canada 45.0 % (3) Entertainment content creator, producer and distributor Farmers Edge Inc. (Farmers Edge) Canada 61.4 % Provider of advanced digital tools for agriculture (1) The company owns multiple voting shares and subordinate voting shares of Recipe that give it voting rights of 61.0 %. (2) The company owns multiple voting shares and subordinate voting shares of Fairfax India that give it voting rights of 93.9 %. Fairfax India owns an equity interest of 89.5 % in National Commodities Management Services Limited (NCML), a provider of agricultural commodities storage. (3) The company has voting rights of 56.1 % due to Boat Rocker’s issuance of non-voting shares to non-controlling interests. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Consolidation | Consolidation Subsidiaries is recognized in the consolidated statement of earnings, and foreign currency translation gains (losses) of that subsidiary are recycled from accumulated other comprehensive income (loss) to the consolidated statement of earnings. The consolidated financial statements were prepared as of December 31, 2021 and 2020 based on individual holding companies’ and subsidiaries’ financial statements at those dates. Accounting policies of subsidiaries have been aligned with those of the company where necessary. The company’s significant operating subsidiaries are identified in note 29. Non-controlling interests |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method of accounting whereby the consideration transferred is measured at fair value at the date of acquisition. This consideration may include cash paid and the fair value at the date of exchange of assets given, liabilities assumed and equity instruments issued by the company or its subsidiaries. Directly attributable acquisition-related costs are recorded in operating expenses or other expenses in the consolidated statement of earnings as incurred. At the date of acquisition, the company recognizes the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired business. The identifiable assets acquired and liabilities assumed are initially recognized at fair value. For each business combination the company determines whether to initially record non-controlling interest at fair value or as the proportionate share of the identifiable net assets of the acquired subsidiary. If the consideration transferred is less than the fair value of identifiable net assets acquired, the excess is recognized in the consolidated statement of earnings. An existing equity interest in an acquired subsidiary is remeasured to fair value at the date of the business combination with any gain or loss recognized in net gains (losses) on investments in the consolidated statement of earnings. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill Intangible assets Intangible assets are initially recognized at cost, or at fair value when acquired through a business combination. Intangible assets with a finite life are subsequently measured at cost less accumulated amortization and impairment, where amortization is calculated using the straight-line method over the estimated useful life, and carrying value is re-assessed when there are indicators of impairment. Indefinite-lived intangible assets are not subject to amortization and are assessed annually for impairment or more frequently if there are indicators of impairment. When the carrying value of an intangible asset exceeds its recoverable amount, an impairment loss is recorded in operating expenses or other expenses in the consolidated statement of earnings. The estimated useful lives of the company’s intangible assets are as follows: Customer and broker relationships 8 to 20 years Brand names and Lloyd's participation rights Indefinite Computer software 3 to 15 years Brand names and Lloyd’s participation rights are considered to be indefinite-lived based on their strength, history and expected future use. |
Investment in associates | Investments in associates Investments in associates are accounted for using the equity method and are comprised of investments in corporations, limited partnerships and trusts where the company has the ability to exercise significant influence but not control. An investment in associate is initially recognized at cost and adjusted thereafter for the post-acquisition change in the company’s share of net assets of the associate. The company’s share of profit (loss) and share of other comprehensive income (loss) of associates are reported in the corresponding lines in the consolidated statement of earnings and consolidated statement of comprehensive income, respectively. An existing equity interest in an acquired associate is remeasured to fair value at the date significant influence is obtained and included in the carrying value of the associate. The fair value of associates is estimated at each reporting date using valuation techniques consistent with those applied to the company’s other investments in equity instruments. See “Determination of fair value” under the heading of “Investments” in this note for further details. If there is objective evidence that the carrying value of an associate is impaired, it is written down to its recoverable amount, being the higher of the associate’s fair value and value-in-use. The unrealized impairment loss is recognized in share of profit (loss) of associates in the consolidated statement of earnings. An impairment loss is reversed in future periods if the circumstances that led to the impairment no longer exist. The reversal is limited to restoring the carrying value to what it would have been had no impairment loss been recognized in prior periods. Upon loss of significant influence, any retained equity interest classified as a financial asset is remeasured to fair value and all amounts previously recognized in other comprehensive income (loss) are recycled to the consolidated statement of earnings except those related to defined benefit pension or post retirement plans which are reclassified to retained earnings. Gains and losses on loss of significant influence or disposition of an associate are recognized in net gains (losses) on investments in the consolidated statement of earnings. |
Investments in joint ventures | Investments in joint ventures Investments in joint ventures are accounted for using the equity method (as described in the preceding paragraphs) and are comprised of investments in corporations and limited partnerships where the company has joint control together with one or more third parties by contractual agreement. Joint control requires the unanimous consent of all parties sharing control to make decisions regarding the joint venture’s relevant activities. When a subsidiary constituting a business is contributed to a joint venture, any gain or loss on derecognition of the subsidiary, including recycling of applicable amounts in accumulated other comprehensive income (loss) and remeasurement to fair value of any retained interest in the subsidiary, is recognized in the consolidated statement of earnings. Upon loss of joint control, any retained equity interest classified as a financial asset is remeasured to fair value and all amounts previously recognized in other comprehensive income (loss) are reclassified to the consolidated statement of earnings except those related to defined benefit pension or post retirement plans which are reclassified to retained earnings. Gains and losses on loss of joint control or disposition of a joint venture are recognized in net gains (losses) on investments in the consolidated statement of earnings. Investments in joint ventures and all related activity are presented with investments in associates in these consolidated financial statements. |
Consolidated statement of cash flows | Consolidated statement of cash flows The company’s consolidated statement of cash flows is prepared in accordance with the indirect method, classifying cash flows by operating, investing and financing activities. Cash and cash equivalents |
Investments | Investments Investments include cash and cash equivalents, short term investments, bonds, equity instruments, investments in associates, derivative assets, other invested assets (primarily investment property) and derivative obligations. Management determines the appropriate classifications of investments at their acquisition date. Classification - Recognition and measurement - Subsequent to initial recognition, investments classified at FVTPL are measured at fair value with changes in fair value reported in the consolidated statement of earnings as income, comprised of interest and dividends and net gains (losses) on investments. Interest and dividends represent interest income on short term investments and bonds calculated using the effective interest method, and dividends received on holdings of common stocks and preferred stocks, net of investment expenses. All other changes in fair value are reported in net gains (losses) on investments in the consolidated statement of earnings. For short term investments and bonds, the sum of their interest income and net gains (losses) on investments is equal to their total change in fair value for the reporting period. For investments classified at FVTPL, the company further disaggregates net gains (losses) on investments into realized and unrealized components in note 5. Where a financial instrument continues to be held by the company at the end of a reporting period, changes in the fair value of that instrument during the reporting period, excluding those changes reported as interest and dividends, are presented in net change in unrealized gains (losses). On disposition or as a result of a change in accounting for that financial instrument, its inception-to-date net gain (loss), excluding those changes previously reported as interest and dividends, is presented as net realized gains (losses). The cumulative unrealized net gain (loss) recognized in prior periods on that financial instrument is then reversed in net change in unrealized gains (losses). The sum of the inception-to-date net gain (loss) and the cumulative reversal of prior period net unrealized gains (losses) equals that financial instrument’s net gain (loss) on investment for the current reporting period as presented in the consolidated statement of earnings. Interest and dividends and net gains (losses) on investments are reported as operating activities in the consolidated statement of cash flows. Derecognition Short term investments Bonds Derivatives The company uses derivatives for investment purposes and to mitigate financial risks arising from its investment holdings and reinsurance recoverables, and monitors its derivatives for effectiveness in achieving their risk management objectives where applicable. The fair value of derivatives in a gain position are presented on the consolidated balance sheet in holding company cash and investments, and in portfolio investments as derivatives and other invested assets. The fair value of derivatives in a loss position are presented on the consolidated balance sheet in derivative obligations. The initial premium paid for a derivative contract, if any, is recorded as a derivative asset and subsequently adjusted for changes in the fair value of the contract at each reporting date. Changes in the fair value of derivatives are recorded as net gains (losses) on investments in the consolidated statement of earnings. Cash received from counterparties as collateral for derivative contracts is recognized on the consolidated balance sheet in holding company cash and investments or subsidiary cash and short term investments, and a corresponding liability is recognized in accounts payable and accrued liabilities. Securities received from counterparties as collateral are not recorded as assets. Cash and securities delivered to counterparties as collateral for derivative contracts continue to be reflected as assets on the consolidated balance sheet in holding company cash and investments or in portfolio investments as assets pledged for derivative obligations. The portion of the collateral related to changes in fair value of derivative contracts may be repledged by the counterparties holding the collateral. Determination of fair value Level 1 - Inputs represent unadjusted quoted prices for identical instruments exchanged in active markets. The fair values of the majority of the company’s common stocks, equity call options and certain warrants are based on published quotes in active markets. Level 2 - Inputs include directly or indirectly observable inputs (other than Level 1 inputs) such as quoted prices for similar financial instruments exchanged in active markets, quoted prices for identical or similar financial instruments exchanged in inactive markets and other market observable inputs. The fair value of the vast majority of the company’s investments in bonds are priced based on information provided by independent pricing service providers while much of the remainder, along with most derivative contracts (including total return swaps, U.S. treasury bond forward contracts and certain warrants) are based primarily on non-binding third party broker-dealer quotes that are prepared using Level 2 inputs. Where third party broker-dealer quotes are used, typically one quote is obtained from a broker-dealer with particular expertise in the instrument being priced. Preferred stocks are priced using a combination of independent pricing service providers and internal valuation models that rely on directly or indirectly observable inputs. The fair values of investments in certain limited partnerships classified as common stocks on the consolidated balance sheet are based on the net asset values received from the general partner, adjusted for liquidity as required and are classified as Level 2 when they may be liquidated or redeemed within three months or less of providing notice to the general partner. All other such investments in limited partnerships are classified as Level 3. Level 3 - Inputs include unobservable inputs that management uses to develop assumptions for which market data is limited or unavailable at the measurement date. In some instances, such as for private company preferred shares, management will use limited recent market transactions that are corroborated by industry accepted discounted cash flow models that incorporate one or more unobservable inputs. Transfers between fair value hierarchy levels are considered effective from the beginning of the annual reporting period in which the transfer is identified. Valuation techniques used by the company’s independent pricing service providers and third party broker-dealers include use of prices from similar instruments where observable market prices exist, discounted cash flow analysis, option pricing models, and other valuation techniques commonly used by market participants. The company assesses the reasonableness of pricing received from these third party sources by comparing the fair values received to recent transaction prices for similar assets where available, to industry accepted discounted cash flow models (that incorporate estimates of the amount and timing of future cash flows and market observable inputs such as credit spreads and discount rates) and to option pricing models (that incorporate market observable inputs including the quoted price, volatility and dividend yield of the underlying security and the risk free rate). The company employs specialist personnel for the valuation of its investment portfolio. Detailed valuations are prepared for those financial instruments that are priced internally, while external pricing received from independent pricing service providers and third party broker-dealers are evaluated by the company for reasonableness. The company’s Chief Financial Officer oversees the valuation function and regularly reviews valuation processes and results, including at each quarterly reporting period. Significant valuation matters, particularly those requiring extensive judgment, are communicated to the company’s Audit Committee. |
Foreign currency translation | Foreign currency translation Functional and presentation currency Foreign currency transactions Translation of foreign subsidiaries |
Hedging | Hedging At the inception of a hedge transaction the company documents the economic relationship between the hedged item and hedging instrument, and its risk management objective and strategy for undertaking the hedge. Net investment hedge |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) consists of net earnings (loss) and other comprehensive income (loss) and includes all changes in total equity during a reporting period, except for those resulting from investments by owners or distributions to owners. Unrealized foreign currency translation amounts arising from the translation of foreign subsidiaries and associates and the effective portion of changes in the fair value of hedging instruments on hedges of net investments in foreign subsidiaries and associates are recognized in other comprehensive income (loss) and included in accumulated other comprehensive income (loss) until recycled to the consolidated statement of earnings on disposal of an investment in a foreign subsidiary or associate. Actuarial gains and losses and changes in asset limitation amounts on defined benefit pension and post retirement plans are recorded in other comprehensive income (loss) and included in accumulated other comprehensive income (loss) without recycling to the consolidated statement of earnings. Upon settlement of the defined benefit plan or disposal of the related subsidiary or associate, those amounts are reclassified directly to retained earnings. Accumulated other comprehensive income (loss), net of income taxes, is included on the consolidated balance sheet as a component of common shareholders’ equity. |
Property and casually insurance contracts | Property and casualty insurance contracts Insurance contracts are those contracts that have significant insurance risk at the inception of the contract. Insurance risk arises when the company agrees to compensate a policyholder if a specified uncertain future event adversely affects the policyholder, with the possibility of paying (including variability in timing of payments) significantly more in a scenario where the insured event occurs than when it does not occur. Contracts not meeting the definition of an insurance contract under IFRS are classified as investment contracts, derivative contracts or service contracts, as appropriate. Revenue recognition Deferred premium acquisition costs Provision for losses and loss adjustment expenses estimates of possible outcomes aimed at evaluating the expected ultimate cost to settle unpaid claims that occurred on or before the balance sheet date. The company establishes its reserves by product line, type and extent of coverage and year of occurrence. Loss reserves fall into two categories: reserves for reported losses (case reserves) and reserves for incurred but not reported (“IBNR”) losses. Those reserves include amounts for loss adjustment expenses, such as the estimated legal and other expenses expected to be incurred to finalize the settlement of the losses. Losses and loss adjustment expenses are charged to losses on claims, gross, in the consolidated statement of earnings. The company’s reserves for reported losses and loss adjustment expenses are based on estimates of future payments to settle reported general insurance and reinsurance claims and claims from its run-off operations. Case reserve estimates are based on the facts available at the time the reserves are established and for reinsurance, based on reports and individual case reserve estimates received from ceding companies. The company establishes these reserves on an undiscounted basis to recognize the estimated costs of bringing pending claims to final settlement, taking into account inflation, as well as other factors that can influence the amount of reserves required, some of which are subjective and some of which are dependent on future events. In determining the level of reserves, the company considers historical trends and patterns of loss payments, pending levels of unpaid claims and types of coverage. In addition, court decisions, economic conditions and public attitudes may affect the ultimate cost of settlement and, as a result, the company’s estimation of reserves. Between the reporting and final settlement of a claim, circumstances may change, which would result in changes to established reserves. Items such as changes in law and interpretations of relevant case law, results of litigation, changes in medical costs, as well as costs of vehicle and building repair materials and labour rates can substantially impact ultimate settlement costs. Accordingly, the company regularly reviews and re-evaluates case reserves. Any resulting adjustments are included in the current period consolidated statement of earnings in losses on claims, gross, and in losses on claims, ceded to reinsurers, as applicable. Amounts ultimately paid for losses and loss adjustment expenses can vary significantly from the level of reserves originally set or currently recorded. The company also establishes reserves for IBNR losses on an undiscounted basis to recognize the estimated final settlement cost for loss events which have already occurred but which have not yet been reported. Historical information and statistical models, based on product line, type and extent of coverage, as well as reported claims trends, severities and frequencies, exposure changes and other factors are relied upon to estimate IBNR reserves. These estimates are revised as additional information becomes available and as claims are actually reported and paid. Estimation techniques Where possible the company applies several commonly accepted actuarial projection methodologies in estimating required provisions to give greater insight into the trends inherent in the data being projected. These include methods based upon the following: the development of previously settled claims, where payments to date are extrapolated for each prior year; estimates based upon a projection of number of claims and average cost; notified claims development, where notified claims to date for each year are extrapolated based upon observed development of earlier years; and, expected loss ratios. In addition, the company uses other techniques such as aggregate benchmarking methods for specialist classes of business. In selecting its best estimate, the company considers the appropriateness of the methods to the individual circumstances of the line of business and accident or underwriting year. Large claims affecting each relevant line of business are generally assessed separately, being measured either at the face value of the loss adjuster’s estimate or projected separately in order to allow for the future development of large claims. Provisions for losses and loss adjustment expenses are calculated gross of any reinsurance recoveries. A separate estimate is made of the amounts that will be recoverable from reinsurers based upon the gross provisions and with due regard to collectability. The provisions for losses and loss adjustment expenses are subject to review at the subsidiary level by subsidiary actuaries and at the corporate level by the company’s Chief Actuary. In addition, for major classes of business where the risks and uncertainties inherent in the provisions are greatest, ad hoc detailed reviews are undertaken by internal and external actuaries who are able to draw upon their specialist expertise and a broader knowledge of current industry trends in claims development. The results of these reviews are considered when establishing the appropriate levels of provisions for losses and loss adjustment expenses and unexpired risks. |
Life insurance contracts | Life insurance contracts The company, through Eurolife (which was consolidated on July 14, 2021 as described in note 23), writes life, disability, accident, health and critical illness insurance in addition to offering life annuities and insurance related investment products, both on an individual and group basis. Premiums for most life insurance contracts are generally recognized as revenue when due. The provision for policy benefits is calculated in compliance with local regulatory requirements and IFRS using actuarial principles consistent with those applied where life insurance policies are written. The provision for policy benefits is determined based on the discounting of projected future cash flows of claims and premiums using assumptions that include mortality, morbidity, lapse rates, discount rates, investment returns, inflation, and future expenses. These assumptions can vary by contract type and reflect current and expected future experience and represent the best estimates to settle outstanding claims, estimated future benefits and expenses on in-force insurance contracts. Certain insurance contracts written by Eurolife transfer the market risk associated with the underlying investment performance, which supports the benefit payments, to the policyholder (“unit-linked”). For these unit-linked contracts or funds, the company measures the underlying investments at fair value and presents them in other assets on the consolidated balance sheet. A corresponding liability is presented in insurance contract payables on the consolidated balance sheet. A change in the fair value of the investments of the unit-linked funds result in a corresponding change to the related liabilities, with both changes recorded together in the consolidated statement of earnings such that there is no effect on income, expenses or net earnings. |
Reinsurance | Reinsurance Reinsurance does not relieve the originating insurer of its liability and is reflected on the consolidated balance sheet on a gross basis to indicate the extent of credit risk related to reinsurance and the obligations of the insurer to its policyholders. Reinsurance assets include balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and ceded unearned premiums. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. Reinsurance is recorded gross on the consolidated balance sheet unless a legal right to offset against a liability owing to the same reinsurer exists. Ceded premiums and losses are recorded in the consolidated statement of earnings in premiums ceded to reinsurers and losses on claims, ceded to reinsurers respectively and in recoverable from reinsurers on the consolidated balance sheet. Commission income earned on premiums ceded to reinsurers is included in commissions, net, in the consolidated statement of earnings. Unearned premiums are reported on the consolidated balance sheet before reduction for premiums ceded to reinsurers. Reinsurers’ portion of unearned premiums is included in recoverable from reinsurers on the consolidated balance sheet together with estimates of reinsurers’ share of provision for claims determined on a basis consistent with the related claims liabilities. Impairment Risk transfer Premiums |
Income taxes | Income taxes The provision for income taxes for the period comprises current and deferred income tax. Income taxes are recognized in the consolidated statement of earnings, except when related to items recognized in other comprehensive income (loss) or in equity. In those cases, the income taxes are also recognized in other comprehensive income (loss) or in equity, respectively, except for dividends where the income taxes are recognized in earnings, other comprehensive income (loss) or equity according to where the transactions that generated the distributable profits were recognized. Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company’s subsidiaries and associates operate and generate taxable income. Deferred income tax is calculated under the liability method whereby deferred income tax assets and liabilities are recognized for temporary differences between the financial statement carrying amounts of assets and liabilities and their respective income tax bases at current substantively enacted tax rates. With the exception of initial recognition of deferred income tax arising from business combinations, changes in deferred income tax associated with components of other comprehensive income (loss) are recognized in other comprehensive income (loss) while all other changes in deferred income tax are included in the provision for income taxes in the consolidated statement of earnings. Deferred income tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized. Carry forwards of unused losses or unused tax credits are tax effected and recognized as deferred tax assets when it is probable that future taxable profits will be available against which these losses or tax credits can be utilized. Deferred income tax is not recognized on unremitted earnings of subsidiaries where the company has determined it is not probable those earnings will be repatriated in the foreseeable future. Current and deferred income tax assets and liabilities are offset when the income taxes are levied by the same taxation authority and there is a legally enforceable right of offset. |
Investment in associate held for sale | Investment in associate held for sale An investment in associate is classified as held for sale if its carrying amount will be recovered through sale rather than through continuing use. Classification as held for sale requires that management be committed to the sale, the sale is highly probable, the asset is available for immediate sale in its present condition, and the sale is expected to be completed within one year from the date of classification. Upon classification as held for sale the investment in associate is measured at the lower of carrying value and fair value less costs to sell and the equity method of accounting is no longer applied. |
Investment property | Investment property Investment property consists of real estate held by the company for capital appreciation, rental income, or both, and is initially recorded at cost, including transaction costs, and subsequently measured at fair value. On the consolidated balance sheet investment property is included in portfolio investments by the insurance and reinsurance companies and in other assets by the non-insurance companies. In the consolidated statement of earnings, insurance and reinsurance companies record investment property rental income and direct expenses in interest and dividends, and changes in fair value in net gains (losses) on investments, while non-insurance companies record investment property rental income and changes in fair value in other revenue, and direct expenses in other expenses. |
Other assets | Other assets Other assets primarily consist of premises and equipment, right-of-use assets associated with leases, assets associated with unit-linked insurance products, inventories, sales receivables and finance lease receivables of the non-insurance companies, prepaid expenses, accrued interest and dividends, income taxes refundable, receivables for securities sold, pension assets, deferred compensation assets, prepaid losses on claims, and other miscellaneous receivables. Receivables are initially recognized at fair value less a provision for expected lifetime credit losses, and subsequently measured at amortized cost. Premises and equipment |
Other revenue and expenses | Other revenue Other revenue is primarily comprised of revenue earned by the non-insurance companies. Revenue from restaurant and retail sales is recognized when the company provides goods to the customer and receives payment. Revenue from the sale of other goods is typically recognized when shipped to the customer, with payment received in advance of shipment. The shipping and handling performance obligation is recorded as a contract liability and recognized as revenue once the services have been performed. Revenue from providing travel, hospitality and other non-insurance services is recognized over time based on measured progress towards complete satisfaction of the related performance obligations. Payment is usually received at the time of initial booking for travel and hospitality services, and received in installments for other services. Unconditional payments due from customers for satisfied performance obligations are recorded as sales receivables within other assets on the consolidated balance sheet. Customer prepayments are recorded as deferred revenue within accounts payable and accrued liabilities on the consolidated balance sheet and are not recognized as revenue until the shipment of goods or provision of services occurs. Certain contracts include multiple deliverables which are accounted for as separate performance obligations, with the transaction price allocated to the performance obligations based on their individual selling prices. Other expenses Other expenses is primarily comprised of the cost of inventories sold or services provided and the operating expenses of the non-insurance companies. |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities Accounts payable and accrued liabilities primarily consist of leases liabilities, trade payables of the non-insurance companies, accrued amounts for salaries and employee benefits, deferred revenue of the non-insurance companies, pension and post retirement liabilities, amounts withheld and accrued taxes, income taxes payable, and other administrative costs. Accounts payable and accrued liabilities are initially recognized at fair value and subsequently measured at amortized cost. |
Borrowings | Borrowings Borrowings are initially recognized at fair value, net of incremental and directly attributable transaction costs, and subsequently measured at amortized cost. Interest expense on borrowings is recognized in the consolidated statement of earnings using the effective interest rate method. Borrowings are derecognized when extinguished, with any gain or loss on extinguishment or modification recognized in interest expense in the consolidated statement of earnings. |
Equity | Equity Common stock issued by the company is classified as equity when there is no contractual obligation to transfer cash or other financial assets to the holder of the shares. Incremental costs directly attributable to the issue or repurchase of equity instruments are recognized in equity, net of tax. Treasury shares are equity instruments repurchased by the company which have not been canceled and are deducted from equity on the consolidated balance sheet, irrespective of the objective of the purchase. The company acquires its own subordinate voting shares on the open market for its share-based payment awards. No gain or loss is recognized in the consolidated statement of earnings on the purchase, sale, issue or cancellation of treasury shares. Consideration paid or received is recognized directly in equity. Dividends and other distributions to holders of the company’s equity instruments are recognized directly in equity. |
Share-based payments | Share-based payments The company has restricted share plans or equivalent for management of the holding company and its subsidiaries with vesting periods of up to fifteen years from the date of grant. The fair value of restricted share awards on the grant date is amortized to compensation expense over the vesting period, with a corresponding increase in the share-based payments equity reserve. At each balance sheet date, the company reviews its estimates of the number of restricted share awards expected to vest. |
Net earnings per share attributable to shareholders of Fairfax | Net earnings per share attributable to shareholders of Fairfax Net earnings (loss) per share Net earnings (loss) per diluted share |
Pensions and post retirement benefits | Pensions and post retirement benefits The company’s subsidiaries have a number of arrangements in Canada, the United States, the United Kingdom and certain other jurisdictions that provide pension and post retirement benefits to retired and current employees. The holding company has no such arrangements or plans. Pension arrangements of the subsidiaries include defined benefit statutory pension plans and supplemental arrangements that provide pension benefits in excess of statutory limits. These plans are a combination of defined benefit plans and defined contribution plans. The assets of these plans are held separately from the company’s general assets in separate pension funds and invested principally in equities, high quality fixed income securities and cash and short term investments. Certain of the company’s post retirement benefit plans covering medical care and life insurance are internally funded. Defined contribution plan Defined benefit plan Defined benefit obligations, net of the fair value of plan assets, and adjusted for pension asset limitations, if any, are accrued on the consolidated balance sheet in accounts payable and accrued liabilities (note 14). Plans in a net asset position, subject to any minimum funding requirements, are recognized in other assets (note 13). Defined benefit expense recognized in the consolidated statement of earnings includes the net interest on the net defined benefit liability (asset) calculated using a discount rate based on market yields on high quality bonds, past service costs arising from plan amendments or curtailments and gains or losses on plan settlements. Remeasurements, consisting of actuarial gains and losses on plan liabilities, the actual return on plan assets (excluding the net interest component) and any change in asset limitation amounts, are recognized in other comprehensive income (loss) and subsequently included in accumulated other comprehensive income (loss). Remeasurements are not recycled to the consolidated statement of earnings and are reclassified to retained earnings upon settlement of the plan or disposal of the related subsidiary. |
Leases | Leases Lessees A right-of-use asset and a lease liability are recognized at the commencement date of a lease. Right-of-use assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made before the commencement date, and any initial direct costs incurred. Lease liabilities are initially measured at the present value of lease payments, discounted using the interest rate implicit in the lease, or if that rate cannot be readily determined, the company’s incremental borrowing rate. The company typically uses its incremental borrowing rate. Right-of-use assets are included in other assets and lease liabilities are included in accounts payable and accrued liabilities on the consolidated balance sheet. Subsequent to initial recognition, right-of-use assets are depreciated using the straight-line method over the shorter of the lease term and the right-of-use asset’s useful life, with depreciation expense recorded as operating expenses or other expenses in the consolidated statement of earnings, and lease liabilities are measured at amortized cost using the effective interest method, with accretion of lease liabilities recorded as interest expense in the consolidated statement of earnings. Each lease payment is allocated between principal and interest expense to produce a constant periodic rate of interest on the remaining balance of the lease liability. The interest and principal portions of cash payments on lease liabilities are reported as operating activities and financing activities respectively in the consolidated statement of cash flows. Right-of-use assets and lease liabilities are not recognized for short-term leases that have a lease term of twelve months or less, or for low value leases, which principally relate to office equipment, furniture and fixtures. Payments for short-term and low value leases are recorded on a straight-line basis over the lease term in the consolidated statement of earnings and reported as operating activities in the consolidated statement of cash flows. Lessors Classification of a sub-lease is determined with reference to the right-of-use asset arising from the head lease, and not with reference to the underlying leased asset. If substantially all of the risk and rewards of ownership of the right-of-use asset are transferred, then the sub-lease is classified as a finance lease, where the right-of-use asset is derecognized, a finance lease receivable is recorded, representing the present value of future lease payments to be received, and any difference is recorded in the consolidated statement of earnings. Finance lease receivables are included in other assets on the consolidated balance sheet. Interest revenue earned on finance lease receivables is included in other revenue in the consolidated statement of earnings. Sub-leases classified as operating leases do not result in any change to the amounts initially recognized on the head lease. Payments received from operating leases are recorded on a straight-line basis over the lease term as other revenue in the consolidated statement of earnings. |
New accounting pronouncements adopted in 2021 | New accounting pronouncements adopted in 2021 Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) The amendments to IFRS 9 Financial Instruments Financial Instruments: Recognition and Measurement Financial Instruments: Disclosures Insurance Contracts Leases COVID-19-related Rent Concessions beyond June 30, 2021 (Amendment to IFRS 16) The amendment to IFRS 16 Leases Configuration or Customization Costs in a Cloud Computing Arrangement (IAS 38 Intangible Assets) The agenda decision by the IFRS Interpretations Committee clarifies the accounting for configuration and customization costs incurred in a Software as a Service (“SaaS”) arrangement. The agenda decision provides guidance on assessing whether costs incurred can be capitalized as an intangible asset and timing of expense recognition. Adoption of this agenda decision did not have a significant impact on the company’s consolidated financial statements. |
New accounting pronouncements issued but not yet effective | New accounting pronouncements issued but not yet effective The following new standards and amendments have been issued by the IASB and were not yet effective for the fiscal year beginning January 1, 2021. The company does not expect to adopt them in advance of their effective dates. IFRS 17 Insurance Contracts (“IFRS 17”) On May 18, 2017 the IASB issued IFRS 17, a comprehensive standard for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 requires entities to measure insurance contracts using current estimates of discounted fulfillment cash flows, including the discounting of loss reserves using one of three measurement models. On June 25, 2020 the IASB issued amendments to IFRS 17 that included targeted improvements and the deferral of the effective date to January 1, 2023. The standard must be applied retrospectively with restatement of comparatives unless impracticable. In 2021, the company’s efforts focused on the selection and evaluation of significant accounting policies and estimates, and the implementation and testing of information technology systems across the insurance and reinsurance subsidiaries to enable parallel reporting in 2022. The company continues to evaluate the effect that the adoption of IFRS 17 will have on its consolidated financial statements. Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37) On May 14, 2020 the IASB issued amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets recognized as an adjustment to opening equity at the date of initial application. The amendments are not expected to have a significant impact on the company’s consolidated financial statements. Reference to the Conceptual Framework (Amendments to IFRS 3) On May 14, 2020 the IASB issued amendments to IFRS 3 Business Combinations Framework for the Preparation and Presentation of Financial Statements Conceptual Framework for Financial Reporting Provisions, Contingent Liabilities and Contingent Assets Levies Annual Improvements to IFRS Standards 2018 – 2020 On May 14, 2020 the IASB issued amendments to certain IFRS Standards as a result of its annual improvements project, which included an amendment to IFRS 9 Financial Instruments Leases Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) On May 7, 2021 the IASB issued amendments to IAS 12 Income Taxes Leases Classification of Liabilities as Current or Non-current (Amendments to IAS 1) On January 23, 2020 the IASB issued amendments to IAS 1 Presentation of Financial Statements Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) On February 12, 2021 the IASB issued amendments to IAS 1 Presentation of Financial Statements Making Materiality Judgements Definition of Accounting Estimates (Amendments to IAS 8) On February 12, 2021 the IASB issued amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors accounting estimates and changes in accounting policies occurring on or after January 1, 2023 and are not expected to have a significant impact on the company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of intangible assets | Customer and broker relationships 8 to 20 years Brand names and Lloyd's participation rights Indefinite Computer software 3 to 15 years |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Investments | |
Schedule of cash and investments | Presented in the table below are holding company cash and investments and portfolio investments, net of derivative obligations, all of which are classified at FVTPL except for investments in associates, investment in associate held for sale and other invested assets. December 31, December 31, 2021 2020 Holding company Cash and cash equivalents (1) 465.9 280.0 Short term investments 216.9 159.2 Bonds 242.6 457.2 Preferred stocks 14.0 4.7 Common stocks (2) 137.5 123.7 Derivatives (note 7) 290.5 147.9 1,367.4 1,172.7 Assets pledged for derivative obligations: Cash equivalents (1) 46.8 — Short term investments 64.1 79.5 110.9 79.5 Holding company cash and investments as presented on the consolidated balance sheet 1,478.3 1,252.2 Derivative obligations (note 7) (32.1) (22.8) 1,446.2 1,229.4 Portfolio investments Cash and cash equivalents (1)(4) 12,283.2 4,886.5 Short term investments (4) 9,516.3 8,311.3 Bonds (4) 14,091.2 15,734.6 Preferred stocks 2,405.9 605.2 Common stocks (2)(4) 5,468.9 4,599.1 Investments in associates (note 6) (4) 4,755.1 4,381.8 Investment in associate held for sale (note 6) — 729.5 Derivatives (note 7) 291.3 234.8 Other invested assets (3) 699.9 577.6 49,511.8 40,060.4 Assets pledged for derivative obligations: Cash equivalents (1) 74.0 — Short term investments 45.6 113.9 Bonds — 82.5 119.6 196.4 Fairfax India cash, portfolio investments and associates: Cash and cash equivalents (1) 76.5 90.2 Short term investments 6.2 — Bonds 199.8 21.0 Common stocks 434.6 412.3 Investments in associates (note 6) 1,348.9 1,328.3 2,066.0 1,851.8 Portfolio investments as presented on the consolidated balance sheet 51,697.4 42,108.6 Derivative obligations (note 7) (120.8) (166.6) 51,576.6 41,942.0 Total investments, net of derivative obligations 53,022.8 43,171.4 (1) Includes aggregate restricted cash and cash equivalents at December 31, 2021 of $1,261.0 (December 31, 2020 – $789.6 ). See note 27. (2) Includes aggregate investments in limited partnerships with a carrying value at December 31, 2021 of $1,971.0 (December 31, 2020 – $1,935.9 ). (3) Comprised primarily of investment property. (4) Presented in the following table are portfolio investments held by Eurolife to support its life insurance operations that are included in the table above. Eurolife was consolidated on July 14, 2021 as described in note 23. |
Schedule of Eurolife life insurance portfolio investments | December 31, December 31, 2021 2020 Eurolife life insurance portfolio investments Cash and cash equivalents 741.5 — Short term investments 854.3 — Bonds 1,206.8 — Common stocks 148.1 — Investments in associates (note 6) 147.5 — 3,098.2 — |
Schedule of pledged assets, by nature of pledge requirement | The table that follows summarizes assets pledged to third parties by the nature of the pledge requirement (excluding assets pledged in favour of Lloyd’s (note 20), for derivative obligations and for certain intercompany reinsurance arrangements). Pledged assets primarily consist of cash and cash equivalents, short term investments and bonds within portfolio investments on the consolidated balance sheet. December 31, December 31, 2021 2020 Regulatory deposits 5,147.1 4,781.0 Security for reinsurance and other 1,434.9 1,245.7 6,582.0 6,026.7 |
Schedule of fixed income maturity profile | December 31, 2021 December 31, 2020 Amortized Fair Amortized Fair cost (1) value (1) cost (1) value (1) Due in 1 year or less 6,022.8 5,946.5 4,968.1 4,935.3 Due after 1 year through 5 years 6,674.2 6,950.1 9,378.4 10,096.9 Due after 5 years through 10 years 534.0 531.3 654.2 718.5 Due after 10 years 990.1 1,105.7 419.2 544.6 14,221.1 14,533.6 15,419.9 16,295.3 Pre-tax effective interest rate 2.7 % 3.2 % (1) Includes bonds held by the holding company and Fairfax India. |
Disclosure of fair value measurement of assets | The company’s use of quoted market prices (Level 1), valuation models with significant observable market information as inputs (Level 2) and valuation models with significant unobservable information as inputs (Level 3) in the valuation of securities and derivative contracts by type of issuer was as follows: December 31, 2021 December 31, 2020 Significant Significant other Significant other Significant Quoted observable unobservable Total fair Quoted observable unobservable Total fair prices inputs inputs value asset prices inputs inputs value asset (Level 1) (Level 2) (Level 3) (liability) (Level 1) (Level 2) (Level 3) (liability) Cash and cash equivalents (1) 12,946.4 — — 12,946.4 5,256.7 — — 5,256.7 Short term investments: Canadian government 16.2 — — 16.2 638.1 — — 638.1 Canadian provincials 535.8 — — 535.8 1,002.9 — — 1,002.9 U.S. treasury 7,608.8 — — 7,608.8 6,343.3 — — 6,343.3 Other government 283.5 1,140.9 — 1,424.4 266.7 234.9 — 501.6 Corporate and other — 263.9 — 263.9 — 178.0 — 178.0 8,444.3 1,404.8 — 9,849.1 8,251.0 412.9 — 8,663.9 Bonds: Canadian government — 614.6 — 614.6 — 16.5 — 16.5 Canadian provincials — 45.0 — 45.0 — 49.9 — 49.9 U.S. treasury — 3,957.9 — 3,957.9 — 3,058.4 — 3,058.4 U.S. states and municipalities — 387.2 — 387.2 — 378.2 — 378.2 Other government — 2,655.0 — 2,655.0 — 944.0 — 944.0 Corporate and other (2) — 4,078.1 2,795.8 6,873.9 — 10,074.1 1,774.2 11,848.3 — 11,737.8 2,795.8 14,533.6 — 14,521.1 1,774.2 16,295.3 Preferred stocks: Canadian — 16.6 93.6 110.2 — 12.2 93.0 105.2 U.S. — — 40.6 40.6 — — 17.0 17.0 Other (3) 13.5 288.0 1,967.6 2,269.1 10.3 — 477.4 487.7 13.5 304.6 2,101.8 2,419.9 10.3 12.2 587.4 609.9 Common stocks: Canadian 1,104.2 188.4 303.7 1,596.3 802.5 108.7 181.5 1,092.7 U.S. 597.9 32.0 1,155.3 1,785.2 485.1 32.0 998.8 1,515.9 Other 1,438.0 276.7 944.8 2,659.5 1,250.8 338.4 937.3 2,526.5 3,140.1 497.1 2,403.8 6,041.0 2,538.4 479.1 2,117.6 5,135.1 Derivatives and other invested assets 0.1 175.4 1,106.2 1,281.7 — 237.4 722.9 960.3 Derivative obligations (note 7) — (88.5) (64.4) (152.9) — (164.1) (25.3) (189.4) Holding company cash and investments and portfolio investments measured at fair value 24,544.4 14,031.2 8,343.2 46,918.8 16,056.4 15,498.6 5,176.8 36,731.8 52.3 % 29.9 % 17.8 % 100.0 % 43.7 % 42.2 % 14.1 % 100.0 % Investments in associates (note 6) (4) 4,188.8 106.8 3,995.6 8,291.2 2,916.3 175.2 4,059.8 7,151.3 (1) Includes restricted cash and cash equivalents of $1,261.0 at December 31, 2021 (December 31, 2020 – $789.6 ). See note 27. (2) Included in Level 3 are the company’s investments in first mortgage loans at December 31, 2021 of $1,659.4 (December 31, 2020 – $775.4 ) 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”),which are described in footnote (2) of the following table. The company also holds a 49.0% equity interest in Digit as described in note 6. (4) The fair value of investments in associates is presented separately as such investments are measured using the equity method of accounting. Also included is the fair value of RiverStone Barbados which was held for sale at December 31, 2020 and subsequently sold on August 23,2021 as described in note 23. In the preceding table certain limited partnerships included in common stocks are classified as Level 3 because their net asset values are unobservable or because they contractually require greater than three months to liquidate or redeem. During 2021 and 2020 there were no significant transfers of financial instruments between Level 1 and Level 2, and there were no significant transfers of financial instruments in or out of Level 3 as a result of changes in the observability of valuation inputs except as described in the following table which summarizes changes in Level 3 financial assets measured at fair value on a recurring basis. 2021 Private Limited Private Derivatives company Private partnerships placement and other preferred Common equity and other (1) debt securities invested assets shares shares funds (1) Total Balance - January 1 1,766.9 1,774.2 697.6 587.4 239.9 110.8 5,176.8 Net realized and unrealized gains included in the consolidated statement of earnings (2) 450.6 69.1 297.4 1,489.3 53.7 2.4 2,362.5 Purchases (3)(4) 254.3 1,241.5 115.5 32.0 216.9 — 1,860.2 Acquisitions of subsidiaries (note 23) — 47.5 27.4 — — — 74.9 Transfer into category (5) — 139.6 — — 10.9 — 150.5 Sales and distributions (580.9) (476.6) (91.8) (7.2) (2.5) (5.9) (1,164.9) Transfer out of category (102.0) — — — (10.7) — (112.7) Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) 0.2 0.5 (4.3) 0.3 (1.2) 0.4 (4.1) Balance - December 31 1,789.1 2,795.8 1,041.8 2,101.8 507.0 107.7 8,343.2 2020 Private Limited Private Derivatives company Private partnerships placement and other preferred Common equity and other (1) debt securities invested assets shares shares funds (1) Total Balance - January 1 1,846.7 1,420.1 764.3 569.2 205.6 129.2 4,935.1 Net realized and unrealized gains (losses) included in the consolidated statement of earnings 155.9 99.3 (100.4) (3.0) 27.4 (1.0) 178.2 Purchases 198.1 1,012.8 44.2 20.7 14.3 — 1,290.1 Sales and distributions (392.8) (474.6) — (0.1) (8.0) (18.8) (894.3) Transfer out of category (6) (44.4) (149.3) — — — — (193.7) Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) 3.4 12.5 (0.6) 0.6 0.6 1.4 17.9 Deconsolidation of non-insurance subsidiary (note 23) — (146.6) (9.9) — — — (156.5) Balance - December 31 1,766.9 1,774.2 697.6 587.4 239.9 110.8 5,176.8 (1) Included in common stocks in the fair value hierarchy table presented on the previous page and in holding company cash and investments or common stocks on the consolidated balance sheets. (2) During June 2021 the company’s associate Go Digit Infoworks Services Private Limited (“Digit”) entered into agreements with certain third party investors for its general insurance subsidiary Go Digit Insurance Limited (“Digit Insurance”) to raise approximately $200 ( 14.9 billion Indian rupees) of new equity shares, valuing Digit Insurance at approximately $3.5 billion ( 259.5 billion Indian rupees) (the “transaction fair value”). Digit Insurance subsequently raised approximately $122 ( 9.0 billion Indian rupees) at the transaction fair value, with the remaining tranches expected to close in the first half of 2022, subject to customary closing conditions and regulatory approval. The increased valuation of Digit Insurance based upon the transaction fair value, which was supported by an internal discounted cash flow analysis, resulted in the company recording a net unrealized gain of $1,490.3 (inclusive of foreign exchange losses) in 2021 on its investment in Digit compulsory convertible preferred shares. The company also holds a 49.0% equity accounted interest in Digit as described in note 6. (3) Common shares include non-voting shares of the RiverStone Barbados holding company as described in note 23. (4) Derivatives and other invested assets include a monthly royalty on future revenues of Toys “R” Us Canada as described in note 23. (5) Private placement debt securities include Mosaic Capital 25-year debentures as described in note 23. (6) On July 1, 2020 the company derecognized its investment in Farmers Edge convertible debentures pursuant to the consolidation of Farmers Edge as described in note 6. |
Disclosure of fair value measurement of liabilities | The company’s use of quoted market prices (Level 1), valuation models with significant observable market information as inputs (Level 2) and valuation models with significant unobservable information as inputs (Level 3) in the valuation of securities and derivative contracts by type of issuer was as follows: December 31, 2021 December 31, 2020 Significant Significant other Significant other Significant Quoted observable unobservable Total fair Quoted observable unobservable Total fair prices inputs inputs value asset prices inputs inputs value asset (Level 1) (Level 2) (Level 3) (liability) (Level 1) (Level 2) (Level 3) (liability) Cash and cash equivalents (1) 12,946.4 — — 12,946.4 5,256.7 — — 5,256.7 Short term investments: Canadian government 16.2 — — 16.2 638.1 — — 638.1 Canadian provincials 535.8 — — 535.8 1,002.9 — — 1,002.9 U.S. treasury 7,608.8 — — 7,608.8 6,343.3 — — 6,343.3 Other government 283.5 1,140.9 — 1,424.4 266.7 234.9 — 501.6 Corporate and other — 263.9 — 263.9 — 178.0 — 178.0 8,444.3 1,404.8 — 9,849.1 8,251.0 412.9 — 8,663.9 Bonds: Canadian government — 614.6 — 614.6 — 16.5 — 16.5 Canadian provincials — 45.0 — 45.0 — 49.9 — 49.9 U.S. treasury — 3,957.9 — 3,957.9 — 3,058.4 — 3,058.4 U.S. states and municipalities — 387.2 — 387.2 — 378.2 — 378.2 Other government — 2,655.0 — 2,655.0 — 944.0 — 944.0 Corporate and other (2) — 4,078.1 2,795.8 6,873.9 — 10,074.1 1,774.2 11,848.3 — 11,737.8 2,795.8 14,533.6 — 14,521.1 1,774.2 16,295.3 Preferred stocks: Canadian — 16.6 93.6 110.2 — 12.2 93.0 105.2 U.S. — — 40.6 40.6 — — 17.0 17.0 Other (3) 13.5 288.0 1,967.6 2,269.1 10.3 — 477.4 487.7 13.5 304.6 2,101.8 2,419.9 10.3 12.2 587.4 609.9 Common stocks: Canadian 1,104.2 188.4 303.7 1,596.3 802.5 108.7 181.5 1,092.7 U.S. 597.9 32.0 1,155.3 1,785.2 485.1 32.0 998.8 1,515.9 Other 1,438.0 276.7 944.8 2,659.5 1,250.8 338.4 937.3 2,526.5 3,140.1 497.1 2,403.8 6,041.0 2,538.4 479.1 2,117.6 5,135.1 Derivatives and other invested assets 0.1 175.4 1,106.2 1,281.7 — 237.4 722.9 960.3 Derivative obligations (note 7) — (88.5) (64.4) (152.9) — (164.1) (25.3) (189.4) Holding company cash and investments and portfolio investments measured at fair value 24,544.4 14,031.2 8,343.2 46,918.8 16,056.4 15,498.6 5,176.8 36,731.8 52.3 % 29.9 % 17.8 % 100.0 % 43.7 % 42.2 % 14.1 % 100.0 % Investments in associates (note 6) (4) 4,188.8 106.8 3,995.6 8,291.2 2,916.3 175.2 4,059.8 7,151.3 (1) Includes restricted cash and cash equivalents of $1,261.0 at December 31, 2021 (December 31, 2020 – $789.6 ). See note 27. (2) Included in Level 3 are the company’s investments in first mortgage loans at December 31, 2021 of $1,659.4 (December 31, 2020 – $775.4 ) 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”),which are described in footnote (2) of the following table. The company also holds a 49.0% equity interest in Digit as described in note 6. (4) The fair value of investments in associates is presented separately as such investments are measured using the equity method of accounting. Also included is the fair value of RiverStone Barbados which was held for sale at December 31, 2020 and subsequently sold on August 23,2021 as described in note 23. |
Disclosure of significant unobservable inputs used in fair value measurement of assets | The table below presents the valuation techniques and unobservable inputs used to estimate fair values for the company’s significant Level 3 financial assets at December 31, 2021: Effect on fair value Carrying Input range used if input value is Asset class value Valuation technique Significant unobservable input Low High increased (a) Bonds (b) Private placement debt securities (1) 1,001.7 Discounted cash flow Credit spread 1.0 % 9.9 % Decrease Mortgage loans (2) 1,659.4 Market approach Recent transaction price N/A N/A Increase Discounted cash flow Credit spread 1.9 % 7.6 % Decrease Other 134.7 Various Various N/A N/A N/A 2,795.8 Preferred stocks (c) Private company preferred shares (3) 1,965.5 Market approach Recent transaction price N/A N/A Increase Discounted cash flow Discount rate 11.3 % 11.3 % Decrease Long term growth rate 6.0 % 6.0 % Increase Private placement preferred shares (4) 71.2 Discounted cash flow Credit spread 3.7 % 3.7 % Decrease Other 65.1 Various Various N/A N/A N/A 2,101.8 Common stocks (d) Limited partnerships and other (5) 1,789.1 Net asset value Net asset value N/A N/A Increase Common shares (6) 200.0 Market approach Recent transaction price N/A N/A Increase Common shares (7) 83.0 Market comparable Book value multiple 1.4 1.4 Increase Private equity funds (7) 58.3 Market comparable Price/Earnings multiple 10.0 10.0 Increase Private equity funds (5) 49.4 Net asset value Net asset value N/A N/A Increase Other 224.0 Various Various N/A N/A N/A 2,403.8 Derivatives and other invested assets (e) Investment property (8) 507.9 Income capitalization Terminal capitalization rate 5.8 % 7.5 % Decrease Discount rate 7.1 % 8.8 % Decrease Market rent growth rate 2.5 % 3.0 % Increase Warrants (9) 259.2 Option pricing model Equity volatility 19.3 % 75.1 % Increase Investment property (10) 69.5 Sales comparison Price per acre (Cdn$ thousands) 30.0 125.0 Increase Other 205.2 Various Various N/A N/A N/A 1,041.8 Total 8,343.2 (a) Decreasing the input value would have the opposite effect on the estimated fair value. (b) Included in holding company cash and investments or bonds on the consolidated balance sheet. (c) Included in preferred stocks on the consolidated balance sheet. (d) Included in holding company cash and investments or common stocks on the consolidated balance sheet. (e) 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, 2021 these private placement debt securities were valued using industry accepted discounted cash flow models that incorporated unobservable credit spreads of the issuers, and consisted of 12 investments, the largest being $535.1 (the company’s investment in Blackberry Limited) (December 31, 2020 - 10 investments, the largest being $438.6 (the company’s investment in Blackberry Limited)). By increasing (decreasing) the credit spreads applied at December 31, 2021 by 100 basis points, the fair value of this asset class would collectively decrease by $26.5 (increase by $11.3 ). (2) At December 31, 2021 these mortgage loans consisted of 36 investments, the largest being $149.4 (December 31, 2020 - 22 investments, the largest being $111.5 ). By increasing (decreasing) the credit spreads applied at December 31, 2021 by 100 basis points, the fair value of this asset class would not change significantly primarily due to the short term nature of these instruments. (3) These private company preferred shares relate to the company’s investment in Digit compulsory convertible preferred shares where the recent transaction price was applied which was supported by an industry accepted discounted cash flow model that incorporated an unobservable discount rate and long term growth rate. As the company is restricted from selling the preferred shares for a specified period a discount for lack of marketability was also applied using an industry accepted option pricing model that incorporated unobservable long-dated equity volatilities. At December 31, 2021 by increasing (decreasing) the discount rate applied by 0.5% , the fair value of the preferred shares would decrease by $212.1 (increase by $258.0 ); by increasing (decreasing) the long term growth rate applied by 0.25% , the fair value of the preferred shares would increase by $80.4 (decrease by $73.2 ). (4) These private placement preferred shares were valued using industry accepted discounted cash flow models that incorporated unobservable credit spreads of the preferred shares. By increasing (decreasing) the credit spreads applied at December 31, 2021 by 100 basis points, the fair value of this asset class would decrease by $8.0 (increase by $8.6 ). (5) 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. In some instances, such investments are classified as Level 3 if they require at least three months’ notice to liquidate or redeem. At December 31, 2021 limited partnerships and other consisted of 47 investments, the three largest being $258.2 (industrials), $252.1 (oil and gas extraction) and $192.0 (primarily household appliance manufacturing) (December 31, 2020 - 51 investments, the three largest being $299.5 (beverage manufacturing), $191.8 (industrials) and $146.4 (oil and gas extraction)). By increasing (decreasing) net asset values at December 31, 2021 by 10% , the fair value of limited partnerships and other would collectively increase (decrease) by $178.9 , and the fair value of the private equity funds would collectively increase (decrease) by $4.9 . (6) These common shares applied the recent transaction price that was supported by a probability weighted valuation model which attributed 85.0% weighting to the fair value whereby the common shares will convert into a secured loan note upon completion of certain regulatory undertakings by the investee and 15.0% weighting to the fair value whereby the common shares remain unchanged. (7) These common shares and private equity funds were valued using various valuation measures for comparable companies and transactions, including relevant valuation multiples. In some instances, such investments are classified as Level 3 because the valuation multiples applied by the company were adjusted for differences in attributes between the investment and the underlying companies or transactions from which the valuation multiples were derived. (8) These investment property were valued by third party appraisers using an industry accepted income capitalization approach that incorporated unobservable capitalization rates, discount rates and market rent growth rates. (9) These warrants were valued using industry accepted option pricing models that incorporated unobservable long-dated equity volatilities. A higher equity volatility generally results in a higher fair value due to the higher probability of obtaining a greater return from the warrant. By increasing (decreasing) equity volatilities applied at December 31, 2021 by 10% , the fair value of these warrants would collectively increase by $25.5 (decrease by $26.0 ). (10) These investment property were valued using an industry accepted direct sales comparison approach that incorporated unobservable recent sale prices per acre for comparable properties in similar locations. |
Disclosure of investment income | An analysis of investment income for the years ended December 31 follows: Interest and dividends and share of profit (losses) of associates 2021 2020 Interest income: Cash and short term investments 26.8 104.1 Bonds 488.5 557.4 Derivatives and other invested assets 53.1 55.0 568.4 716.5 Dividends: Preferred stocks 14.1 4.3 Common stocks 94.1 73.5 108.2 77.8 Investment expenses (35.8) (25.1) Interest and dividends 640.8 769.2 Share of profit (losses) of associates (1) 402.0 (112.8) (1) Includes impairment charges recorded on investments in associates during 2021 of nil (2020 - $240.3 ). |
Schedule of gains (losses) on investment | 2021 2020 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) (8) gains (losses) investments Bonds 338.2 (1) (523.5) (1) (185.3) 112.1 593.5 705.6 Preferred stocks 2.2 1,509.5 (2) 1,511.7 — 10.0 10.0 Common stocks 488.0 852.3 1,340.3 243.7 (212.4) 31.3 828.4 1,838.3 2,666.7 355.8 391.1 746.9 Derivatives: Equity total return swaps - short positions — — — (613.2) (3) 84.6 (528.6) Equity total return swaps - long positions 439.6 (3) (32.1) 407.5 207.4 (3) 118.2 325.6 Equity warrants and options 15.8 98.4 114.2 (1.6) (54.7) (56.3) CPI-linked derivatives (108.5) 113.8 5.3 (300.0) 286.1 (13.9) U.S. treasury bond forwards 26.0 (0.3) 25.7 (103.0) 1.0 (102.0) Other (42.6) 171.3 128.7 (4) (59.0) 26.1 (32.9) 330.3 351.1 681.4 (869.4) 461.3 (408.1) Foreign currency net gains (losses) on: Investing activities (43.5) (78.8) (122.3) (5) (51.0) 156.4 105.4 (5) Underwriting activities 41.2 — 41.2 (16.8) — (16.8) Foreign currency contracts (62.2) 50.2 (12.0) 2.1 (35.1) (33.0) (64.5) (28.6) (93.1) (65.7) 121.3 55.6 Disposition of associates 56.4 (6) — 56.4 8.6 (9)(10) — 8.6 Deconsolidation of non-insurance subsidiaries 190.3 (7) — 190.3 (78.5) (11) — (78.5) Other 122.1 (178.7) (56.6) (19.9) 8.5 (11.4) Net gains (losses) on investments 1,463.0 1,982.1 3,445.1 (669.1) 982.2 313.1 (1) Includes the derecognition of Seaspan Corporation debentures that were exchanged for Atlas Corp. preferred shares and Seaspan Corporation debentures that were redeemed as described in note 6. (2) Includes net unrealized gains of $1,490.3 (inclusive of foreign exchange losses)on Digit compulsory convertible preferred shares described earlier in this note. (3) Amounts recorded in net realized gains (losses) include net gains (losses) on total return swaps where the counterparties are 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. (4) Includes net gains of $109.9 (excludes net foreign exchange losses) related to Asset Value Loan Notes (“AVLNs”) entered into with RiverStone Barbados as described in note 23. (5) Foreign currency net losses on investing activities during 2021 primarily related to euro and Indian rupee denominated investments held by subsidiaries with a U.S. dollar functional currency as the U.S. dollar strengthened relative to those currencies. Foreign currency net gains on investing activities during 2020 primarily related to euro and Canadian dollar denominated investments held by subsidiaries with a U.S. dollar functional currency as the U.S. dollar weakened relative to those currencies. (6) During 2021 the company sold a portion of its investment in IIFL Finance for cash proceeds of $113.7 ( 8.6 billion Indian rupees) and recorded a net realized gain of $42.0 in the consolidated statement of earnings as described in note 6. (7) Principally comprised of the sale of Toys “R” Us Canada and Fairfax India’s sale of Privi as described in note 23. (8) Amounts recorded in net realized gains (losses) in 2020 include net gains (losses) on investments that were disposed of pursuant to the deconsolidation of European Run-off on March 31, 2020 and Fairfax Africa on December 8, 2020 as described in note 23. (9) On February 28, 2020 the company sold its investment in APR Energy to Atlas Corp. in an all-stock transaction . (10) On September 30, 2020 the company sold its investment in Davos Brands for cash proceeds of $58.6 and recorded a net realized gain of $19.3 . (11) On December 8, 2020 Fairfax Africa was deconsolidated pursuant to the transaction described in note 23 and an equity accounted investment in Helios Fairfax Partners Corporation (“HFP”) was recognized, resulting in a net realized loss of $61.5 . |
Investments in Associates (Tabl
Investments in Associates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Associates | |
Schedule of investments in associates | The company’s investments in associates are as follows: December 31, 2021 Year ended Carrying value December 31, 2021 Share of Ownership Associates and joint Fairfax India profit percentage (a) Fair value (b) ventures associates (c) Total (loss) Insurance and reinsurance: Gulf Insurance Group K.S.C.P. ("Gulf Insurance") (1) 43.7 % 409.5 380.0 — 380.0 55.5 Go Digit Infoworks Services Private Limited ("Digit") (2) 49.0 % 498.3 79.1 — 79.1 5.3 Other (3)(4)(5) — 191.3 148.3 — 148.3 11.8 1,099.1 607.4 — 607.4 72.6 Non-insurance: India Bangalore International Airport Limited ("Bangalore Airport") (13) 54.0 % 1,372.2 — 585.8 585.8 (45.8) Quess Corp Limited ("Quess") 31.0 % 528.5 506.3 (d) — 506.3 (1.4) IIFL Finance Limited (“IIFL Finance”) (8) 22.3 % 318.1 — 198.8 198.8 40.6 Sanmar Chemicals Group ("Sanmar") 42.9 % 421.2 — 124.2 124.2 (2.4) CSB Bank Limited ("CSB Bank") 49.7 % 227.6 — 180.8 180.8 27.6 IIFL Securities Limited ("IIFL Securities") 37.2 % 138.0 35.0 101.0 136.0 14.0 Seven Islands Shipping Limited ("Seven Islands") 48.5 % 105.9 — 98.5 98.5 (0.5) Other — 84.8 10.9 59.8 70.7 0.5 3,196.3 552.2 1,348.9 1,901.1 32.6 Real estate KWF Real Estate Ventures Limited Partnerships ("KWF LPs") — 76.3 76.3 (d) — 76.3 (9.0) Other — 139.6 140.5 — 140.5 (1.7) 215.9 216.8 — 216.8 (10.7) Other Eurobank Ergasias Services & Holdings S.A ("Eurobank") 32.2 % 1,210.3 1,298.5 — 1,298.5 162.3 Atlas Corp. ("Atlas", formerly Seaspan Corporation) (10) 36.7 % 1,285.8 922.1 — 922.1 69.5 EXCO Resources Inc. ("EXCO") 43.3 % 267.2 195.4 — 195.4 (41.2) Resolute Forest Products Inc. ("Resolute") 32.3 % 377.1 275.8 — 275.8 75.9 Helios Fairfax Partners Corporation ("HFP") (9) 34.4 % 116.2 206.1 — 206.1 (1.2) Peak Achievement Athletics ("Peak Achievement") 42.6 % 181.2 140.5 (d) — 140.5 13.3 Astarta Holding N.V. ("Astarta") 28.4 % 73.3 104.0 — 104.0 38.4 Partnerships, trusts and other — 268.8 236.3 — 236.3 (9.5) 3,779.9 3,378.7 — 3,378.7 307.5 7,192.1 4,147.7 1,348.9 5,496.6 329.4 Investments in associates 8,291.2 4,755.1 1,348.9 6,104.0 402.0 As presented on the consolidated balance sheet: Investments in associates 5,671.9 4,755.1 Fairfax India investments in associates 2,619.3 1,348.9 8,291.2 6,104.0 Year ended December 31, 2020 December 31, Carrying value 2020 Associates Ownership Fair and joint Fairfax India Share of profit percentage (a) value (b) ventures associates (c) Total (loss) Insurance and reinsurance: Eurolife ERB Insurance Group Holdings S.A. ("Eurolife") (7) 50.0 % 457.9 336.2 (d) — 336.2 6.1 Go Digit Infoworks Services Private Limited ("Digit") 49.0 % 120.5 41.8 — 41.8 8.8 RiverStone (Barbados) Ltd. ("RiverStone Barbados"), held for sale (5)(6) 60.0 % 729.5 729.5 (d) — 729.5 113.0 Other (4) — 233.6 197.2 — 197.2 (8.6) 1,541.5 1,304.7 — 1,304.7 119.3 Non-insurance: India Bangalore International Airport Limited ("Bangalore Airport") 54.0 % 1,396.1 — 642.4 642.4 (30.5) Quess Corp Limited ("Quess") 33.2 % 366.8 558.9 (d) — 558.9 (124.6) IIFL Finance Limited (“IIFL Finance”) 29.9 % 175.6 57.7 175.9 233.6 19.9 Sanmar Chemicals Group ("Sanmar") 42.9 % 338.6 — 128.6 128.6 (48.6) CSB Bank Limited ("CSB Bank") 49.7 % 214.4 — 164.4 164.4 14.1 IIFL Securities Limited (“IIFL Securities”) 35.3 % 74.3 32.1 93.4 125.5 9.8 Seven Islands Shipping Limited ("Seven Islands") 48.5 % 103.6 — 100.8 100.8 17.8 Other — 37.1 8.8 22.8 31.6 0.1 2,706.5 657.5 1,328.3 1,985.8 (142.0) Agriculture Astarta Holding N.V. ("Astarta") 28.4 % 49.9 65.3 — 65.3 (28.0) Farmers Edge Inc. ("Farmers Edge") (11) — — — — — (21.8) 49.9 65.3 — 65.3 (49.8) Real estate KWF Real Estate Ventures Limited Partnerships ("KWF LPs") — 84.3 84.3 (d) — 84.3 (17.9) Other — 48.3 50.8 — 50.8 (0.2) 132.6 135.1 — 135.1 (18.1) Other Eurobank Ergasias Services & Holdings S.A ("Eurobank") 30.5 % 799.9 1,166.3 — 1,166.3 (11.9) Atlas Corp. ("Atlas", formerly Seaspan Corporation) (12) 36.7 % 978.9 900.1 — 900.1 116.4 EXCO Resources Inc. ("EXCO") 43.7 % 237.7 238.5 — 238.5 (4.6) Resolute Forest Products Inc. ("Resolute") 30.6 % 161.9 134.3 — 134.3 (57.0) APR Energy plc ("APR Energy") (12) — — — — — (13.6) Helios Fairfax Partners Corporation ("HFP") 32.3 % 185.9 185.9 — 185.9 — Peak Achievement Athletics ("Peak Achievement") 42.6 % 171.5 140.2 (d) — 140.2 34.2 Partnerships, trusts and other — 185.0 183.4 — 183.4 (85.7) 2,720.8 2,948.7 — 2,948.7 (22.2) 5,609.8 3,806.6 1,328.3 5,134.9 (232.1) Investments in associates 7,151.3 5,111.3 1,328.3 6,439.6 (112.8) As presented on the consolidated balance sheet: Investments in associates 4,154.3 4,381.8 Investment in associate held for sale (5)(d) 729.5 729.5 Fairfax India investments in associates 2,267.5 1,328.3 7,151.3 6,439.6 (a) Ownership percentages include the effects of financial instruments that are considered in-substance equity. (b) See note 5 for fair value hierarchy information. (c) Fairfax India’s associates are domiciled in India. (d) These investments are joint ventures. Insurance and reinsurance associates and joint ventures (1) On February 8, 2021 the company entered into an arrangement to purchase (unless sold earlier) certain portfolio investments owned by RiverStone Barbados as described in note 23 and subsequently commenced applying the equity method of accounting to its interest in Gulf Insurance pursuant to that arrangement. (2) The company estimated the fair value of its 49.0% equity accounted interest in Digit at December 31, 2021 to be $498.3 based on the transaction fair value, which is further supported by an internal discounted cash flow model, as described in note 5. Indian law permits an equity interest of 74.0% but regulatory approvals are required for the company to increase its equity interest in Digit beyond 49.0% and to obtain control, so the company anticipates it will consolidate Digit when the company receives such regulatory approvals. (3) On July 14, 2021 the company increased its interest in Eurolife to 80.0% and commenced consolidating Eurolife as described in note 23. (4) On June 17, 2021 the company increased its equity interest in Singapore Re from 28.2% to 94.0% and commenced consolidating Singapore Re as described in note 23. (5) On August 23, 2021 the company completed the sale of its joint venture interest in RiverStone Barbados, which was held for sale at December 31, 2020, pursuant to the transactions described in note 23. (6) On March 31, 2020 the company received a 60.0% joint venture interest with a fair value of $605.0 in RiverStone Barbados pursuant to its contribution of European Run-off to RiverStone Barbados as described in Note 23. (7) The company held a 50.0% indirect interest in Eurolife at December 31, 2020 through its 62.5% interest in a joint venture with OMERS, the pension plan for Ontario’s municipal employees. The joint venture held an 80.0% equity interest in Eurolife, with the remaining 20.0% equity interest held by Eurobank. Non-insurance associates and joint ventures (8) During 2021 the company reduced its interest in IIFL Finance to 22.3% by selling a portion of its interest for cash proceeds of $113.7 ( 8.6 billion Indian rupees) and recorded a net realized gain of $42.0 in the consolidated statement of earnings. (9) On March 31, 2021 the company invested $100.0 in $100.0 principal amount of Helios Fairfax Partners Corporation (“HFP”) 3.0% unsecured debentures and warrants to purchase 3 million HFP subordinate voting shares exercisable at $4.90 per share any time prior to the fifth anniversary of closing. The debentures will mature on the third anniversary of closing or, at the company’s option, on either the first or second anniversary. At redemption or maturity, if the fair value of certain Fairfax Africa legacy investments held by HFP are below their fair value at June 30, 2020 of $102.6 , the redemption price of the debentures will be reduced by that difference. The company recorded the debentures at their fair value of $78.0 and recorded the balance of $22.0 as an addition to its equity accounted investment in HFP. On December 8, 2020 the company deconsolidated Fairfax Africa (subsequently renamed Helios Fairfax Partners Corporation) and accounted for its interest in HFP as an investment in associate pursuant to the transaction described in note 23. (10) On June 11, 2021 the company entered into an exchange and amendment transaction with Atlas in relation to its investment in $575.0 principal amount of debentures issued by Seaspan Corporation (“Seaspan”), an operating subsidiary of Atlas, whereby the company exchanged $288.0 principal amount of those Seaspan debentures for newly-issued Atlas Series J preferred shares and equity warrants with an exercise price of $13.71 per share. The terms of the remaining Seaspan debentures were amended to primarily remove the company’s mandatory put rights and discharge all outstanding guarantees and liens on collateral. The company derecognized the Seaspan debentures that were exchanged and recorded its investment in the Atlas preferred shares and warrants as preferred stocks and derivatives respectively on the consolidated balance sheet. On August 23, 2021 Atlas redeemed the remaining $287.0 principal amount of the Seaspan debentures. (11) On July 1, 2020 the company commenced consolidating Farmers Edge as the company held convertible debentures and warrants that, together with its holdings of common shares, represented a substantive potential voting interest of approximately 67 %. (12) On February 27, 2020 Seaspan Corporation (“Seaspan”) completed a reorganization pursuant to which Atlas Corp., a newly created holding company, became its parent. Shareholders of Seaspan, including the company, exchanged their Seaspan shares for Atlas shares with no change in ownership percentage. On February 28, 2020 Atlas acquired all issued and outstanding shares of APR Energy from the company and other APR Energy shareholders in an all-stock transaction at a deemed value of $388.3 (including certain Atlas shares reserved for holdback). Accordingly, the company derecognized its investment in APR Energy, recorded a pre-tax loss of $7.6 , increased its equity accounted carrying value of Atlas by the fair value of the APR Energy shares exchanged (considered to be equal to the fair value of the newly issued Atlas common shares received of $178.1 , which excluded the Atlas shares received by European Run-off of $45.9 ), and continued to apply the equity method of accounting to its investment in Atlas. On February 28, 2020 the company invested $100.0 in Atlas 5.50% unsecured debentures due March 1, 2027, which increased the company’s aggregate investment in Atlas debentures to a principal amount of $575.0 . Fairfax India (13) On September 16, 2021 Fairfax India transferred 43.6% out of its 54.0% equity interest in Bangalore Airport to Anchorage Infrastructure Investments Holdings Limited (“Anchorage”), its wholly-owned holding company for investments in the airport sector of India, and sold an 11.5% equity interest in Anchorage to OMERS for gross proceeds of $129.2 ( 9.5 billion Indian rupees). Upon closing Fairfax India recorded a non-controlling interest in Anchorage and continued to equity account for its consolidated 54.0% equity interest in Bangalore Airport. Annual changes in carrying value Changes in the carrying value of investments in associates, including investment in associate held for sale, for the years ended December 31 were as follows: 2021 Fairfax India Associates Joint ventures associates Total Balance - January 1 3,170.4 1,940.9 1,328.3 6,439.6 Share of pre-tax comprehensive income (loss): Share of profit 375.8 6.0 20.2 402.0 Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans (67.7) (20.5) 0.3 (87.9) Share of gains (losses) on defined benefit plans 89.1 0.1 (9.4) 79.8 397.2 (14.4) 11.1 393.9 Dividends and distributions received (153.8) (23.6) (4.6) (182.0) Purchases and acquisitions 466.5 114.4 35.7 616.6 Divestitures and other net changes in capitalization (54.8) (764.4) 0.9 (818.3) Reclassifications (1) 36.4 (352.0) — (315.6) Foreign exchange effect and other (3.2) (4.5) (22.5) (30.2) Balance - December 31 3,858.7 896.4 1,348.9 6,104.0 2020 Fairfax India Fairfax Africa Associates Joint ventures associates associates Total Balance - January 1 2,876.6 1,483.6 1,391.3 232.9 5,984.4 Share of pre-tax comprehensive income (loss): Share of profit (loss) 83.4 91.8 (24.8) (27.3) 123.1 Impairments (2) (88.3) (98.9) — (35.0) (222.2) Share of other comprehensive income (loss), excluding losses on defined benefit plans 88.0 42.1 3.2 (41.7) 91.6 Share of losses on defined benefit plans (32.2) (20.8) (4.9) — (57.9) 50.9 14.2 (26.5) (104.0) (65.4) Dividends and distributions received (70.0) (3.7) (4.9) (1.4) (80.0) Purchases and acquisitions 223.4 20.8 — 5.0 249.2 Divestitures and other net changes in capitalization (107.2) (180.6) 0.9 (1.7) (288.6) Reclassifications (1) 174.4 605.0 — — 779.4 Deconsolidation of non-insurance subsidiary (note 23) — — — (103.6) (103.6) Foreign exchange effect and other 22.3 1.6 (32.5) (27.2) (35.8) Balance - December 31 3,170.4 1,940.9 1,328.3 — 6,439.6 (1) Primarily reflects the consolidation of Eurolife and Singapore Re and the commencement of the equity method of accounting on a limited partnership investment in 2021, and the investments in HFP (an associate) and RiverStone Barbados (a joint venture) and the consolidation of Farmers Edge in 2020. See note 23. (2) Impairments recorded on associates and joint ventures are included in share of profit (loss) of associates in the consolidated statement of earnings. Impairments of $222.2 recorded during 2020 included non-cash impairment charges on Quess, Resolute, Atlas Mara and Astarta . |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivatives. | |
Schedule of derivative financial instruments | December 31, 2021 December 31, 2020 Notional Fair value Notional Fair value amount Cost Assets Liabilities amount Cost Assets Liabilities Equity contracts: Equity total return swaps – long positions 1,082.8 — 96.1 1.9 1,788.3 — 144.3 18.0 Equity warrants and options (1) 646.1 113.9 259.2 1.9 626.9 102.4 133.2 0.4 RiverStone Barbados AVLNs (note 23) 1,250.1 — 103.8 — — — — — CPI-linked derivative contracts 61,952.5 237.3 0.7 — 74,906.0 347.5 2.8 — U.S. treasury bond forward contracts 1,691.3 — 3.7 0.8 330.8 — 3.1 — Foreign currency forward and swap contracts (2) — — 58.4 77.4 — — 66.4 136.0 Foreign currency options — — — — — 53.7 5.8 — Other derivative contracts — 26.0 59.9 70.9 — 25.6 27.1 35.0 Total 581.8 152.9 382.7 189.4 (1) Includes the company’s investment in Atlas warrants with a fair value at December 31, 2021 of $200.1 (December 31, 2020 - $110.5 ). (2) Includes AGT’s foreign currency forward and swap liabilities with a fair value at December 31, 2021 of $47.6 (December 31, 2020 - $46.2 ). |
Insurance Contract Liabilities
Insurance Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Contract Liabilities | |
Schedule of amounts arising from insurance contracts | December 31, 2021 December 31, 2020 Gross Ceded Net Gross Ceded Net Provision for unearned premiums 10,437.7 2,260.0 8,177.7 8,397.5 1,899.1 6,498.4 Provision for losses and loss adjustment expenses 34,422.8 8,943.9 25,478.9 30,809.3 7,947.3 22,862.0 Property and casualty insurance contract liabilities 44,860.5 11,203.9 33,656.6 39,206.8 9,846.4 29,360.4 Provision for life policy benefits (1) 2,486.0 2.3 2,483.7 — — — Insurance contract liabilities 47,346.5 11,206.2 36,140.3 39,206.8 9,846.4 29,360.4 Current 20,618.3 4,740.3 15,878.0 17,389.7 4,218.2 13,171.5 Non-current 26,728.2 6,465.9 20,262.3 21,817.1 5,628.2 16,188.9 47,346.5 11,206.2 36,140.3 39,206.8 9,846.4 29,360.4 (1) Eurolife was consolidated on July 14, 2021 as described in note 23. Changes in the property and casualty provision for unearned premiums for the years ended December 31 were as follows: 2021 2020 Provision for unearned premiums – January 1 8,397.5 7,222.4 Gross premiums written (1) 23,796.0 18,979.4 Less: gross premiums earned (1) (21,673.6) (17,782.9) Acquisitions of subsidiaries (note 23) 64.1 — Divestiture of subsidiary (62.9) — Foreign exchange effect and other (83.4) (21.4) Provision for unearned premiums - December 31 10,437.7 8,397.5 (1) Changes in the provision for unearned premiums, gross for the year ended December 31, 2020 exclude European Run-off’s gross premiums written and gross premiums earned of $146.5 and $115.9 , as the liabilities of European Run-off were included in liabilities associated with assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. Changes in the provision for life policy benefits for the years ended December 31 were as follows: 2021 2020 Provision for life policy benefits – January 1 — — Acquisition of subsidiary (note 23) 2,638.5 — New business and renewals 78.1 — Surrenders, lapses, maturities and deaths (121.0) — Foreign exchange effect and other (109.6) — Provision for life policy benefits – December 31 2,486.0 — The development of insurance liabilities illustrates the estimation uncertainty associated with these liabilities and provides a measure of the company’s ability to estimate the ultimate value of claims. The loss development table below shows the provision for losses and loss adjustment expenses at the end of each calendar year, the cumulative payments made in respect of those reserves in subsequent years and the re-estimated amount of each calendar year’s provision for losses and loss adjustment expenses as at December 31, 2021. Calendar year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Property and casualty provision for losses and loss adjustment expenses 19,648.8 19,212.8 17,749.1 19,816.4 19,481.8 28,610.8 29,081.7 28,500.2 30,809.3 34,422.8 Less: CTR Life (1) 20.6 17.9 15.2 14.2 12.8 8.7 8.0 7.0 5.5 4.4 19,628.2 19,194.9 17,733.9 19,802.2 19,469.0 28,602.1 29,073.7 28,493.2 30,803.8 34,418.4 Cumulative payments as of: One year later 4,323.5 4,081.1 3,801.6 4,441.4 4,608.0 7,564.0 7,732.0 7,288.8 7,180.7 Two years later 7,153.1 6,787.6 6,364.5 7,283.6 7,631.4 12,081.3 12,313.5 11,598.0 Three years later 9,148.0 8,775.5 8,172.7 9,466.5 9,655.9 15,222.3 15,363.3 Four years later 10,702.8 10,212.4 9,561.8 10,914.2 11,122.6 17,378.8 Five years later 11,783.3 11,354.4 10,496.4 12,013.9 12,233.4 Six years later 12,729.6 12,123.4 11,202.2 12,859.5 Seven years later 13,335.1 12,754.2 11,793.5 Eight years later 13,877.0 13,283.6 Nine years later 14,341.1 Reserves re-estimated as of: One year later 19,021.2 18,375.6 16,696.4 19,169.3 19,343.1 27,580.6 28,974.3 28,225.5 30,360.1 Two years later 18,529.4 17,475.0 16,269.2 18,973.6 18,804.8 27,565.9 28,839.4 28,165.4 Three years later 17,820.5 17,307.9 16,114.0 18,502.5 18,752.8 27,451.3 28,990.4 Four years later 17,735.5 17,287.2 15,938.9 18,469.1 18,743.9 27,698.6 Five years later 17,830.5 17,203.5 16,049.6 18,490.5 19,046.6 Six years later 17,791.8 17,340.1 16,123.1 18,759.5 Seven years later 17,931.9 17,420.0 16,403.8 Eight years later 18,041.2 17,680.5 Nine years later 18,285.9 Favourable development 1,342.3 1,514.4 1,330.1 1,042.7 422.4 903.5 83.3 327.8 443.7 Favourable development comprised of: Effect of foreign currency translation 569.8 475.0 277.4 (185.7) (148.0) 550.0 186.3 267.6 190.6 Favourable (adverse) loss reserve development 772.5 1,039.4 1,052.7 1,228.4 570.4 353.5 (103.0) 60.2 253.1 1,342.3 1,514.4 1,330.1 1,042.7 422.4 903.5 83.3 327.8 443.7 (1) Guaranteed minimum death benefit retrocessional business written by Compagnie Transcontinentale de Réassurance (“CTR Life”), a wholly owned subsidiary of the company that was transferred to Wentworth and placed into run-off in 2002. Changes in the company’s provision for losses and loss adjustment expenses related to U.S. asbestos exposure on a gross and net basis for the years ended December 31 were as follows: 2021 2020 Gross Net Gross Net Provision for asbestos claims and loss adjustment expenses - January 1 1,030.6 840.0 1,074.6 860.5 Losses and loss adjustment expenses incurred 199.1 151.6 161.0 121.2 Losses and loss adjustment expenses paid (193.0) (152.7) (205.0) (141.7) Provision for asbestos claims and loss adjustment expenses - December 31 1,036.7 838.9 1,030.6 840.0 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance. | |
Disclosure of reinsurers' share of amounts arising from insurance contracts | Reinsurers’ share of insurance contract liabilities was comprised as follows: December 31, 2021 December 31, 2020 Gross Provision for Recoverable from Gross Provision for Recoverable recoverable from uncollectible reinsurers recoverable from uncollectible from reinsurers reinsurers reinsurance (1) reinsurers reinsurance (1) Provision for losses and loss adjustment expenses 8,989.3 (43.1) 8,946.2 7,971.7 (24.4) 7,947.3 Reinsurers’ share of paid losses 1,019.9 (135.6) 884.3 818.0 (131.2) 686.8 Provision for unearned premiums 2,260.0 — 2,260.0 1,899.1 — 1,899.1 12,269.2 (178.7) 12,090.5 10,688.8 (155.6) 10,533.2 Current 5,572.4 4,839.0 Non-current 6,518.1 5,694.2 12,090.5 10,533.2 (1) Management of credit risk on reinsurance recoverables is discussed in note 24. Changes in reinsurers’ share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance for the years ended December 31 were as follows: 2021 Provision for Recoverable Paid Unpaid Unearned uncollectible from losses losses premiums reinsurance reinsurers Balance – January 1 818.0 7,971.7 1,899.1 (155.6) 10,533.2 Reinsurers’ share of losses paid to insureds 2,360.3 (2,360.3) — — — Reinsurance recoveries received (2,152.8) — — — (2,152.8) Reinsurers’ share of unpaid losses and premiums earned (1) — 3,479.0 (5,228.8) — (1,749.8) Premiums ceded to reinsurers (1) — — 5,632.1 — 5,632.1 Change in provision, recovery or write-off of impaired balances (1.7) — — (22.1) (23.8) Acquisitions of subsidiaries (note 23) 0.3 82.7 16.7 — 99.7 Divestiture of subsidiary (3.3) (6.4) (10.6) — (20.3) Foreign exchange effect and other (0.9) (177.4) (48.5) (1.0) (227.8) Balance – December 31 1,019.9 8,989.3 2,260.0 (178.7) 12,090.5 (1) Effective October 1, 2021 Brit completed a loss portfolio transfer with a third party to reinsure loss reserves for a portfolio of risks predominantly comprised of U.S. casualty and discontinued lines of business relating to prior accident years. Pursuant to this transaction Brit ceded net insurance contract liabilities of $379.1 for consideration of $344.1 and recorded net favourable reserve development of $35.0 . 2020 Provision for Recoverable Paid Unpaid Unearned uncollectible from losses losses premiums reinsurance reinsurers Balance – January 1 776.9 6,956.7 1,583.7 (161.5) 9,155.8 Reinsurers’ share of losses paid to insureds 2,375.4 (2,375.4) — — — Reinsurance recoveries received (2,317.9) — — — (2,317.9) Reinsurers’ share of unpaid losses and premiums earned (1) — 2,842.3 (3,923.6) — (1,081.3) Premiums ceded to reinsurers — — 4,261.4 — 4,261.4 Change in provision, recovery or write-off of impaired balances (2.7) — — 6.0 3.3 Foreign exchange effect and other (2) (13.7) 548.1 (22.4) (0.1) 511.9 Balance – December 31 818.0 7,971.7 1,899.1 (155.6) 10,533.2 (1) Changes in reinsurers’ share of unpaid losses and unearned premiums for the year ended December 31, 2020 exclude European Run-off’s reinsurers’ share of unpaid losses and premiums earned of $70.6 and $13.5 as the assets of European Run-off were included in assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. (2) Includes $467.1 of unpaid losses from loss reserves ceded to European Run-off which were previously eliminated on consolidation. See note 23. |
Insurance Contract Receivable_2
Insurance Contract Receivables and Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Contract Receivables and Payables | |
Disclosure of insurance contract receivables and changes in premiums | December 31, December 31, 2021 2020 Insurance premiums receivable 4,247.1 3,665.6 Reinsurance premiums receivable 1,863.9 1,385.3 Funds withheld receivable 574.0 567.3 Other 234.0 235.6 Provision for uncollectible receivables (35.8) (37.7) 6,883.2 5,816.1 Current 6,170.0 5,144.7 Non-current 713.2 671.4 6,883.2 5,816.1 Insurance Reinsurance premiums receivable premiums receivable 2021 2020 2021 2020 Balance – January 1 3,665.6 3,325.0 1,385.3 1,176.0 Gross premiums written (1) 18,118.6 14,309.4 5,791.6 4,670.0 Premiums collected (15,703.6) (12,537.2) (3,963.7) (3,375.6) Amounts due to brokers and agents (1,770.1) (1,417.3) (1,332.3) (1,104.8) Acquisitions of subsidiaries (note 23) 10.2 — 25.8 — Divestiture of subsidiary (25.2) — — — Foreign exchange effect and other (48.4) (14.3) (42.8) 19.7 Balance – December 31 4,247.1 3,665.6 1,863.9 1,385.3 (1) Changes in insurance premiums receivable and reinsurance premiums receivable for the year ended December 31, 2020 exclude European Run-off’s gross premiums written of $146.5 as the assets of European Run-off were included in assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. |
Disclosure of amounts arising from insurance contract payables | December 31, December 31, 2021 2020 Payable to reinsurers 2,333.7 1,669.5 Payables associated with unit-linked life insurance products (note 3 and note 23) 621.7 — Ceded deferred premium acquisition costs 510.3 441.1 Funds withheld payable to reinsurers 274.0 206.3 Amounts payable to agents and brokers 142.4 127.2 Accrued premium taxes 124.1 93.1 Accrued commissions 100.8 69.0 Other insurance contract payables 386.5 357.8 4,493.5 2,964.0 Current 3,503.4 2,705.8 Non-current 990.1 258.2 4,493.5 2,964.0 |
Deferred Premium Acquisition _2
Deferred Premium Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Premium Acquisition Costs | |
Schedule of deferred premium acquisition costs | Changes in deferred premium acquisition costs for the years ended December 31 were as follows: 2021 2020 Balance – January 1 1,543.7 1,344.3 Premium acquisition costs deferred 4,502.4 3,629.4 Amortization (1) (4,098.1) (3,424.0) Divestiture of subsidiary (19.7) — Foreign exchange effect and other (4.2) (6.0) Balance – December 31 1,924.1 1,543.7 (1) Excludes in 2020 amortization of European Run-off’s commission expenses of $7.7 as the assets of European Run-off were included in assets held for sale on the consolidated balance sheet at December 31, 2019 and European Run-off was deconsolidated on March 31, 2020 as described in note 23. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets | |
Schedule of changes in goodwill and intangible assets | Goodwill Intangible assets Total Lloyd's Customer Computer participation and broker Brand software rights (1) relationships names (1) and other (1) Balance - January 1, 2021 3,126.3 503.2 867.5 1,153.3 578.8 6,229.1 Additions 60.7 — 17.8 27.9 264.3 370.7 Disposals (2) (28.9) — (25.1) (64.0) (7.5) (125.5) Amortization — — (96.6) — (342.8) (439.4) Impairments (3) (52.1) — — (33.1) (0.1) (85.3) Foreign exchange effect and other (21.2) — (2.7) 3.2 (0.7) (21.4) Balance - December 31, 2021 3,084.8 503.2 760.9 1,087.3 492.0 5,928.2 Gross carrying amount 3,214.1 503.2 1,338.5 1,139.2 1,427.0 7,622.0 Accumulated amortization — — (577.4) — (915.4) (1,492.8) Accumulated impairment (129.3) — (0.2) (51.9) (19.6) (201.0) 3,084.8 503.2 760.9 1,087.3 492.0 5,928.2 Goodwill Intangible assets Total Lloyd's Customer Computer participation and broker Brand software rights (1) relationships names (1) and other (1) Balance - January 1, 2020 2,997.3 503.2 969.8 1,181.1 542.7 6,194.1 Additions 182.1 — (1.0) 0.1 221.0 402.2 Disposals (2) (30.3) — — — (66.5) (96.8) Amortization — — (100.4) — (115.6) (216.0) Impairments (3) (33.0) — (2.1) (44.7) (6.3) (86.1) Foreign exchange effect and other 10.2 — 1.2 16.8 3.5 31.7 Balance - December 31, 2020 3,126.3 503.2 867.5 1,153.3 578.8 6,229.1 Gross carrying amount 3,199.6 503.2 1,383.6 1,200.4 1,210.4 7,497.2 Accumulated amortization — — (513.7) — (611.9) (1,125.6) Accumulated impairment (73.3) — (2.4) (47.1) (19.7) (142.5) 3,126.3 503.2 867.5 1,153.3 578.8 6,229.1 (1) Indefinite-lived intangible assets not subject to amortization had an aggregate carrying value at December 31, 2021 of $ 1,686.2 (December 31, 2020 - $ 1,751.6 ). (2) During 2021 the company sold the operations of Toys “R” Us Canada and Fairfax India sold its 48.8 % equity interest in Privi as described in note 23. During 2020 AMAG Insurance settled its bancassurance agreement with PT Bank Pan Indonesia Tbk, received cash consideration of $ 66.3 and recorded a net gain of $ 3.2 on disposal of the intangible asset. (3) Non-cash impairment charges recorded in operating expenses and in other expenses in the consolidated statement of earnings by the insurance and reinsurance companies and Non-insurance companies reporting segment, respectively. |
Schedule goodwill and intangible asset allocation to CGUs | December 31, 2021 December 31, 2020 Intangible Intangible Goodwill assets Total Goodwill assets Total Insurance and reinsurance companies Allied World 940.0 565.8 1,505.8 940.0 611.7 1,551.7 Brit 215.6 580.5 796.1 200.2 581.1 781.3 Zenith National 317.6 84.4 402.0 317.6 93.2 410.8 Crum & Forster 189.1 91.0 280.1 188.8 104.2 293.0 Northbridge 94.9 121.3 216.2 95.4 105.5 200.9 Odyssey Group 119.7 54.9 174.6 119.7 57.3 177.0 All other (1) 95.9 116.3 212.2 148.4 64.2 212.6 1,972.8 1,614.2 3,587.0 2,010.1 1,617.2 3,627.3 Non-insurance companies Recipe 321.2 980.5 1,301.7 280.9 1,011.0 1,291.9 Farmers Edge 208.3 16.0 224.3 202.6 17.0 219.6 Thomas Cook India 142.1 54.5 196.6 144.6 56.3 200.9 AGT 154.4 34.9 189.3 168.5 47.1 215.6 Boat Rocker 89.1 90.2 179.3 90.1 230.8 320.9 All other (2) 196.9 53.1 250.0 229.5 123.4 352.9 1,112.0 1,229.2 2,341.2 1,116.2 1,485.6 2,601.8 3,084.8 2,843.4 5,928.2 3,126.3 3,102.8 6,229.1 (1) Comprised primarily of balances related to AMAG Insurance, Pacific Insurance and Eurolife, and U.S. Run-off in 2020. (2) Comprised primarily of balances related to Dexterra Group, Pethealth, Privi (deconsolidated on April 29, 2021), Mosaic Capital (deconsolidated on August 5, 2021), and Sterling Resorts. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets | |
Disclosure of information for other assets | December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Premises and equipment and right-of-use assets (note 22) 725.6 1,558.4 2,284.0 758.1 1,996.0 2,754.1 Assets associated with unit-linked insurance products (note 3 and note 23) 637.1 — 637.1 — — — Inventories — 547.3 547.3 — 645.6 645.6 Other revenue receivables — 508.4 508.4 — 550.8 550.8 Finance lease receivables (note 22) 9.4 256.7 266.1 8.5 296.9 305.4 Income tax, sales tax and subsidies receivable 61.6 170.3 231.9 85.5 170.9 256.4 Accrued interest and dividends 211.4 3.7 215.1 195.5 2.4 197.9 Prepaid expenses 110.9 94.9 205.8 125.2 120.7 245.9 Receivable for securities sold but not yet settled 135.4 — 135.4 28.5 — 28.5 Prepaid losses on claims 129.4 — 129.4 118.6 — 118.6 Pension surplus (note 21) 113.8 — 113.8 48.8 — 48.8 Other (2) 791.1 55.9 847.0 620.0 85.2 705.2 2,925.7 3,195.6 6,121.3 1,988.7 3,868.5 5,857.2 Current 989.9 1,343.7 2,333.6 925.5 1,504.5 2,430.0 Non-current 1,935.8 1,851.9 3,787.7 1,063.2 2,364.0 3,427.2 2,925.7 3,195.6 6,121.3 1,988.7 3,868.5 5,857.2 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Principally comprised of other receivables, deposits and deferred compensation plans . |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities | |
Schedule of accounts payable and accrued liabilities | December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Lease liabilities (note 22) 384.2 756.5 1,140.7 456.8 995.3 1,452.1 Payables related to cost of sales — 580.9 580.9 — 625.7 625.7 Salaries and employee benefit liabilities 482.6 85.6 568.2 394.4 90.6 485.0 Amounts withheld and accrued taxes 453.9 23.8 477.7 367.3 29.1 396.4 Deferred gift card, hospitality and other revenue 35.4 318.5 353.9 21.1 433.3 454.4 Pension and post retirement liabilities (note 21) 237.4 16.5 253.9 325.3 26.6 351.9 Income taxes payable 163.8 11.2 175.0 42.8 21.7 64.5 Administrative and other (2) 1,150.9 284.2 1,435.1 822.0 344.1 1,166.1 2,908.2 2,077.2 4,985.4 2,429.7 2,566.4 4,996.1 Current 1,538.7 1,177.2 2,715.9 1,274.7 1,414.6 2,689.3 Non-current 1,369.5 900.0 2,269.5 1,155.0 1,151.8 2,306.8 2,908.2 2,077.2 4,985.4 2,429.7 2,566.4 4,996.1 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Principally comprised of accrued operating expenses, advances from customers and liabilities related to business acquisitions. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings. | |
Schedule of debt | December 31, 2021 December 31, 2020 Principal Carrying Fair Principal Carrying Fair value (a) value (b) value (a) value (b) Borrowings - holding company Fairfax unsecured notes (d) 5.84% due October 14, 2022 (Cdn$446.0) (4) — — — 350.1 351.1 377.6 4.50% due March 22, 2023 (Cdn$400.0) (4) — — — 314.0 312.9 334.1 4.142% due February 7, 2024 (1) — — — 85.0 85.0 85.1 4.875% due August 13, 2024 282.5 281.1 301.7 282.5 280.6 309.7 4.95% due March 3, 2025 (Cdn$350.0) 277.1 275.4 299.6 274.7 272.5 306.3 8.30% due April 15, 2026 (e) 91.8 91.7 113.3 91.8 91.7 118.6 4.70% due December 16, 2026 (Cdn$450.0) 356.3 354.8 387.9 353.2 351.5 394.6 4.25% due December 6, 2027 (Cdn$650.0) 514.6 513.1 551.4 510.2 508.5 558.3 2.75% due March 29, 2028 (€750.0) 852.9 842.4 926.3 917.7 904.4 1,023.9 4.85% due April 17, 2028 600.0 596.3 668.5 600.0 595.8 677.6 4.23% due June 14, 2029 (Cdn$500.0) 395.8 394.2 424.4 392.5 390.6 426.7 4.625% due April 29, 2030 650.0 645.9 730.0 650.0 645.4 731.8 3.375% due March 3, 2031 (3) 600.0 585.1 620.7 — — — 3.95% due March 3, 2031(Cdn$850.0) (4) 672.9 668.0 701.3 — — — 7.75% due July 15, 2037 (e) 91.3 90.6 125.4 91.3 90.6 123.1 Revolving credit facility (2) — — — 700.0 700.0 700.0 5,385.2 5,338.6 5,850.5 5,613.0 5,580.6 6,167.4 Borrowings - insurance and reinsurance companies Odyssey Group floating rate unsecured senior notes due 2021 (6) — — — 90.0 90.0 91.0 Allied World 4.35% senior notes due October 29, 2025 500.0 503.9 536.9 500.0 505.0 544.9 Allied World revolving credit facility and other borrowings 17.4 20.6 21.1 40.8 44.2 51.4 Zenith National 8.55% debentures due August 1, 2028 (d) 38.5 38.3 38.3 38.5 38.3 38.3 Brit 3.6757% subordinated notes due December 9, 2030 (£135.0) 182.9 182.9 174.5 184.5 184.5 170.4 Brit floating rate revolving credit facility 45.0 45.0 45.0 130.0 130.0 130.0 First Mercury trust preferred securities due 2036 and 2037 (5) — — — 41.4 41.4 41.4 783.8 790.7 815.8 1,025.2 1,033.4 1,067.4 Borrowings - non-insurance companies (c) Fairfax India 5.00% unsecured senior notes due 2028 (8) 441.6 438.4 440.3 550.0 547.2 550.0 Fairfax India subsidiary borrowings 91.9 91.3 91.3 167.1 166.4 166.4 AGT credit facilities, senior notes and loans (9) 491.8 488.9 488.9 516.4 514.2 514.0 Recipe term loans and credit facilities 359.0 356.9 356.9 430.7 428.4 428.4 Boat Rocker demand loans and revolving credit facilities 93.8 93.1 93.1 184.6 183.0 183.0 Loans and revolving credit facilities primarily at floating rates (7) 155.2 155.1 155.1 362.0 360.8 360.8 1,633.3 1,623.7 1,625.6 2,210.8 2,200.0 2,202.6 Total debt 7,802.3 7,753.0 8,291.9 8,849.0 8,814.0 9,437.4 ( a) Principal net of unamortized issue costs and discounts (premiums). (b) Based principally on quoted market prices with the remainder based on discounted cash flow models using market observable inputs (Levels 1 and 2 respectively in the fair value hierarchy). (c) These borrowings are non-recourse to the holding company. (d) Issuer may redeem any time at prices specified in the instrument’s offering document, except those disclosed in footnote (e) below. (e) Not redeemable prior to the contractual maturity date. Holding company (1) On October 29, 2021 the company redeemed its $85.0 principal amount of 4.142% unsecured senior notes due February 7, 2024 at par. (2) On June 29, 2021 the company amended and restated its $ 2.0 billion unsecured revolving credit facility with a syndicate of lenders which extended the term from December 21, 2022 to June 29, 2026. During 2021 the company made a net repayment of $700.0 on its revolving credit facility leaving nil borrowed at December 31, 2021 (December 31, 2020 - $700.0 ). The principal financial covenants of the credit facility require the company to maintain a ratio of consolidated debt to consolidated capitalization not exceeding 0.35 :1 and consolidated shareholders’ equity attributable to shareholders of Fairfax of not less than $9.5 billion. At December 31, 2021 the company was in compliance with its financial covenants, with a consolidated debt to consolidated capitalization ratio of 0.245 :1 and consolidated shareholders’ equity attributable to shareholders of Fairfax of $ 16.4 billion, both calculated as defined in the financial covenants. (3) On March 3, 2021 the company completed an offering of $600.0 principal amount of 3.375% unsecured senior notes due March 3, 2031 for net proceeds of $583.8 after discount, commissions and expenses. Commissions and expenses of $15.4 were included in the carrying value of the notes. (4) On March 1, 2021 the company completed an offering of $671.6 (Cdn $850.0 ) principal amount of 3.95% unsecured senior notes due March 3, 2031 for net proceeds of $666.2 after premium, commissions and expenses. Commissions and expenses of $5.4 were included in the carrying value of the notes. On March 29, 2021 the company used the net proceeds of that offering to redeem its $353.5 (Cdn $446.0 ) principal amount of 5.84% unsecured senior notes due October 14, 2022 and its $317.1 (Cdn $400.0 ) principal amount of 4.50% unsecured senior notes due March 22, 2023, and recorded a loss of $ 45.7 on redemption as interest expense. Contemporaneously with the redemptions, the company designated the carrying value of its Cdn$ 850.0 senior notes due March 3, 2031 as a hedge of a portion of its net investment in Canadian subsidiaries. Insurance and reinsurance companies (5) On December 15, 2021 Crum & Forster redeemed its $ 41.4 principal amount of First Mercury trust preferred securities. (6) On June 15, 2021 and March 15, 2021 Odyssey Group redeemed $40.0 and $50.0 principal amounts of its unsecured senior notes, respectively. Non-insurance companies (7) On December 17, 2021 Fairfax India entered into a $175.0 , 3-year unsecured floating rate revolving credit facility with a syndicate of lenders, with an option to extend for an additional year. At December 31, 2021 the credit facility remained undrawn. (8) On February 26, 2021 Fairfax India completed an offering of $500.0 principal amount of 5.00% unsecured senior notes due February 26, 2028 and subsequently used the net proceeds to repay $ 500.0 principal amount of its floating rate term loan. The company’s insurance and reinsurance subsidiaries purchased $58.4 of Fairfax India’s offering on the same terms as other participants and that intercompany investment is eliminated in the company’s consolidated financial reporting. (9) On January 4, 2022 AGT extended the maturity on its credit facilities to March 17, 2023. Changes in the carrying values of borrowings for the years ended December 31 were as follows: 2021 2020 Insurance Insurance and Non- and Non- Holding reinsurance insurance Holding reinsurance insurance company companies companies Total company companies companies Total Balance – January 1 5,580.6 1,033.4 2,200.0 8,814.0 4,117.3 1,039.6 2,075.7 7,232.6 Cash inflows from issuances 1,250.0 — 499.1 1,749.1 645.0 — 107.8 752.8 Cash outflows from repayments (801.2) (131.7) (593.9) (1,526.8) — (0.3) (82.5) (82.8) Net cash inflows (outflows) from credit facilities and short term loans (700.0) (84.3) (262.0) (1,046.3) 700.0 (10.0) 60.5 750.5 Non-cash changes: Acquisition of subsidiary (note 23) — — — — — — 127.4 127.4 Deconsolidation of subsidiary (note 23) — (22.5) (187.4) (209.9) — — (118.7) (118.7) Loss on redemption 45.7 — (0.1) 45.6 — — — — Foreign exchange effect and other (36.5) (4.2) (32.0) (72.7) 118.3 4.1 29.8 152.2 Balance – December 31 5,338.6 790.7 1,623.7 7,753.0 5,580.6 1,033.4 2,200.0 8,814.0 |
Schedule of borrowing repayments | Principal repayments on borrowings are due as follows: 2022 2023 2024 2025 2026 Thereafter Total Holding company — — 282.5 277.1 448.1 4,377.5 5,385.2 Insurance and reinsurance companies 0.3 0.3 0.3 545.3 0.3 237.3 783.8 Non-insurance companies 584.4 62.8 208.0 21.1 20.2 736.8 1,633.3 Total 584.7 63.1 490.8 843.5 468.6 5,351.6 7,802.3 |
Total Equity (Tables)
Total Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Total Equity | |
Schedule of classes of share capital | 2021 2020 Subordinate voting shares – January 1 25,427,736 26,082,299 Purchases for cancellation (2,137,923) (343,871) Treasury shares acquired (293,197) (457,603) Treasury shares reissued 120,214 146,911 Subordinate voting shares – December 31 23,116,830 25,427,736 Multiple voting shares – beginning and end of year 1,548,000 1,548,000 Interest in multiple and subordinate voting shares held through ownership interest in shareholder – beginning and end of year (799,230) (799,230) Common stock effectively outstanding – December 31 23,865,600 26,176,506 |
Schedule of dividends paid | Date of declaration Date of record Date of payment Dividend per share Total cash payment January 5, 2022 January 20, 2022 January 27, 2022 $ 10.00 $ 249.9 January 5, 2021 January 21, 2021 January 28, 2021 $ 10.00 $ 272.1 January 3, 2020 January 17, 2020 January 28, 2020 $ 10.00 $ 275.7 |
Schedule of preferred shares | The terms of the company’s cumulative five-year rate reset preferred shares at December 31, 2021 were as follows: Next possible redemption and Number of Liquidation Fixed dividend Floating conversion shares Carrying preference per rate per dividend rate date (1)(2) outstanding (3) value (3) Stated capital (3) share annum per annum (4) Series C December 31, 2024 7,515,642 $ 170.8 Cdn $ 187.9 Cdn $ 25.00 4.71 % — Series D December 31, 2024 2,484,358 $ 56.4 Cdn $ 62.1 Cdn $ 25.00 — 3.28 % Series E March 31, 2025 5,440,132 $ 124.5 Cdn $ 136.0 Cdn $ 25.00 3.18 % — Series F March 31, 2025 2,099,046 $ 48.1 Cdn $ 52.5 Cdn $ 25.00 — 2.29 % Series G September 30, 2025 7,719,843 $ 182.1 Cdn $ 193.0 Cdn $ 25.00 2.96 % — Series H September 30, 2025 2,280,157 $ 53.8 Cdn $ 57.0 Cdn $ 25.00 — 2.69 % Series I December 31, 2025 10,420,101 $ 250.5 Cdn $ 260.5 Cdn $ 25.00 3.33 % — Series J December 31, 2025 1,579,899 $ 38.0 Cdn $ 39.5 Cdn $ 25.00 — 2.98 % Series K March 31, 2022 9,500,000 $ 231.7 Cdn $ 237.5 Cdn $ 25.00 4.67 % — Series M March 31, 2025 9,200,000 $ 179.6 Cdn $ 230.0 Cdn $ 25.00 5.00 % — $ 1,335.5 Cdn $ 1,456.0 (1) Fixed and floating rate cumulative preferred shares are redeemable by the company at each stated redemption date and on each subsequent five-year anniversary date at Cdn$ 25.00 per share. (2) Holders of Series C, Series E, Series G, Series I, Series K and Series M fixed rate cumulative preferred shares will have the option to convert their shares into Series D, Series F, Series H, Series J, Series L and Series N floating rate cumulative preferred shares respectively, at the specified conversion dates, and on each subsequent five-year anniversary date. Holders of Series D, Series F, Series H and Series J floating rate cumulative preferred shares will have the option to convert their shares into Series C, Series E, Series G and Series I fixed rate cumulative preferred shares respectively, at the specified conversion dates, and on each subsequent five-year anniversary date. (3) For each series of preferred shares, the number of shares outstanding, carrying value and stated capital remained unchanged during 2021. (4) The Series D, Series F, Series H, and Series J preferred shares, and the Series L and Series N preferred shares (of which none are currently issued), have a floating dividend rate equal to the three-month Government of Canada treasury bill yield plus 3.15% , 2.16% , 2.56% , 2.85% , 3.51% and 3.98% respectively, with rate resets at the end of each calendar quarter. |
Schedule of AOCI | December 31, 2021 December 31, 2020 Income tax Income tax After-tax (expense) After-tax Pre-tax amount recovery amount Pre-tax amount recovery amount Items that may be subsequently reclassified to net earnings Foreign currency translation losses (636.2) 24.6 (611.6) (550.8) 12.2 (538.6) Share of accumulated other comprehensive income (loss) of associates, excluding net losses on defined benefit plans (79.8) 0.4 (79.4) 43.7 (12.3) 31.4 (716.0) 25.0 (691.0) (507.1) (0.1) (507.2) Items that will not be subsequently reclassified to net earnings Net losses on defined benefit plans (104.9) 27.5 (77.4) (214.9) 54.7 (160.2) Share of net losses on defined benefit plans of associates (57.3) 5.5 (51.8) (159.1) 18.2 (140.9) Other 8.4 10.1 18.5 (0.8) 10.1 9.3 (153.8) 43.1 (110.7) (374.8) 83.0 (291.8) Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax (869.8) 68.1 (801.7) (881.9) 82.9 (799.0) |
Schedule of non-controlling interests | Details of non-controlling interests as at and for the years ended December 31 were as follows: Net earnings (loss) attributable to non- December 31, 2021 December 31, 2020 controlling interests Domicile Voting Carrying Voting Carrying percentage (6) value percentage (6) value 2021 2020 Insurance and reinsurance companies (1) Allied World (2) Bermuda 29.1 % 1,419.6 29.1 % 1,329.0 117.8 106.6 Brit (3) United Kingdom 13.8 % 559.3 — 121.7 14.0 (10.9) Odyssey Group (4) United States 9.99 % 550.0 — — — — All other (5) — — 402.5 — 381.1 89.4 10.9 2,931.4 1,831.8 221.2 106.6 Non-insurance companies Restaurants and retail (6) — — 494.3 — 469.7 11.8 (51.2) Fairfax India (6)(7) Canada 6.1 % 1,133.1 6.6 % 1,130.9 72.7 (29.4) Thomas Cook India India 33.2 % 56.3 33.1 % 69.4 (16.8) (23.5) Other (8) — — 315.1 — 168.9 (23.4) (183.5) 1,998.8 1,838.9 44.3 (287.6) 4,930.2 3,670.7 265.5 (181.0) (1) Includes property and casualty insurance and reinsurance companies, Life insurance and Run-off, and Corporate and other. (2) On April 28, 2021 Allied World paid a dividend of $126.4 (April 30, 2020 - $126.4 ) to its minority shareholders (OMERS, AIMCo and others).The increase in carrying value of Allied World’s non-controlling interests primarily reflected the non-controlling interests’ share of Allied World’s net earnings ( $117.8 ). The company has the option to purchase the interests of the minority shareholders in Allied World at certain dates until September 2024. (3) The increase in carrying value of Brit’s non-controlling interests during 2021 primarily reflected the sale of a 13.9% equity interest in Brit to OMERS on August 27, 2021 as described in note 23 and a third party investment of $124.0 in Brit’s subsidiary Ki Insurance, a fully digital and algorithmically-driven Lloyd’s of London syndicate. (4) On December 15, 2021 the company sold a 9.99% equity interest in Odyssey Group to OMERS and CPPIB as described in note 23. (5) Principally related to Fairfax consolidated internal investment funds (held by RiverStone Barbados as described in note 23), and Fairfax Asia. (6) At December 31, 2021 Fairfax India and Recipe’s non-controlling interest economic ownership percentages were 69.9% and 61.5% (December 31, 2020 - 72.0% and 59.8% ), which differed from their non-controlling interest voting percentages of 6.1% and 39.0% (December 31, 2020 - 6.6% and 38.9% ). Subsequent to December 31, 2021, on February 15, 2022, the company acquired an additional 5,416,000 subordinate voting shares of Fairfax India from non-controlling interests, which decreased Fairfax India’s non-controlling interest economic ownership and voting percentages to 65.6% and 5.7% at that date. (7) The increase in carrying value of Fairfax India’s non-controlling interests during 2021 primarily reflected the sale of an equity interest in Anchorage ( $107.4 ) as described in note 6, the non-controlling interests’ share of Fairfax India’s net earnings and the sale of an equity interest in Fairchem, partially offset by share repurchases ( $114.3 , primarily reflecting the completion of a substantial issuer bid for cash consideration of $105.0 in which Fairfax did not tender any shares), the deconsolidation of Privi ( $58.6) as described in note 23, and the weakening of the Indian rupee relative to the U.S. dollar. (8) The increase in carrying value of Other during 2021 primarily reflected the initial public offerings and related capital transactions at Farmers Edge and Boat Rocker. |
Schedule of capitalization | 2021 2020 Common Non- Common Non- shareholders' controlling shareholders' controlling equity interests equity interests Sale of non-controlling interests in Odyssey Group 429.1 550.0 — — Sale (acquisition) of non-controlling interests in Brit 115.4 296.7 (47.8) (189.6) Initial public offerings and related capital transactions at Farmers Edge and Boat Rocker (3.1) 242.6 — — Third party's investment in Brit's subsidiary Ki Insurance — 124.0 — 124.4 Fairfax India's sale of an equity interest in Anchorage (note 6) 21.8 107.4 — — Dividends paid to non-controlling interests by Allied World (89.6) 89.6 (88.6) 88.6 Fairfax India share repurchases (12.5) (114.3) 0.3 (29.1) Third parties' net investments in Fairfax consolidated internal investment funds — 26.2 — 93.7 Other 91.8 (95.3) 22.2 22.3 As presented in other net changes in capitalization in the consolidated statement of changes in equity 552.9 1,226.9 (113.9) 110.3 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per Share | |
Schedule of earnings per share | 2021 2020 Net earnings attributable to shareholders of Fairfax 3,401.1 218.4 Preferred share dividends (44.5) (44.0) Net earnings attributable to common shareholders – basic and diluted 3,356.6 174.4 Weighted average common shares outstanding – basic 25,953,114 26,446,939 Share-based payment awards 1,503,931 1,273,250 Weighted average common shares outstanding – diluted 27,457,045 27,720,189 Net earnings per common share – basic $ 129.33 $ 6.59 Net earnings per common share – diluted $ 122.25 $ 6.29 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of The company's provision for (recovery of) income taxes | 2021 2020 Current income tax: Current year expense 401.6 172.6 Adjustments to prior years' income taxes (14.6) (23.8) 387.0 148.8 Deferred income tax: Origination and reversal of temporary differences 313.5 51.1 Adjustments to prior years' deferred income taxes 18.9 15.4 Other 6.6 (8.6) 339.0 57.9 Provision for income taxes 726.0 206.7 |
Schedule of earnings before income taxes by jurisdiction | 2021 2020 Canada (1) U.S. (2) U.K. (3) Other (4) Total Canada (1) U.S. (2) U.K. (3) Other (4) Total Earnings (loss) before income taxes 858.8 974.5 157.3 2,402.0 4,392.6 212.6 (110.8) (221.4) 363.7 244.1 Provision for income taxes 191.6 238.6 18.7 277.1 726.0 121.0 31.4 5.7 48.6 206.7 Net earnings (loss) 667.2 735.9 138.6 2,124.9 3,666.6 91.6 (142.2) (227.1) 315.1 37.4 (1) Includes Fairfax India and Fairfax Africa (deconsolidated on December 8, 2020). (2) Principally comprised of Crum & Forster, Zenith National, Odyssey Group (notwithstanding that certain operations of Odyssey Group conduct business outside of the U.S.), U.S. Run-off and other associated holding company results. (3) Principally comprised of Brit, European Run-off (deconsolidated on March 31, 2020) and other associated holding company results. (4) Primarily includes companies in India, Asia and Europe (excluding the U.K.), and Allied World, which has operations in multiple jurisdictions. |
Schedule of reconciliations of the provision for (recovery of) income taxes | 2021 2020 Canadian statutory income tax rate 26.5 % 26.5 % Provision for income taxes at the Canadian statutory income tax rate 1,164.0 64.7 Non-taxable investment income (149.4) (108.3) Tax rate differential on income and losses outside Canada (399.1) 5.2 Change in unrecorded tax benefit of losses and temporary differences 67.2 172.8 Change in tax rate for deferred income taxes 0.3 (5.7) Provision (recovery) relating to prior years 4.3 (8.4) Foreign exchange effect (23.0) 40.9 Other including permanent differences 61.7 45.5 Provision for income taxes 726.0 206.7 |
Schedule of income taxes refundable and payable | December 31, December 31, 2021 2020 Income taxes refundable 58.3 88.7 Income taxes payable (175.0) (64.5) Net income taxes (payable) refundable (116.7) 24.2 |
Schedule of changes net income taxes (payable) refundable | 2021 2020 Balance - January 1 24.2 90.6 Amounts recorded in the consolidated statements of earnings (387.0) (148.8) Payments made during the year 288.7 63.3 Acquisitions of subsidiaries (note 23) (54.5) (0.3) Deconsolidation of non-insurance subsidiary (note 23) — 7.6 Foreign exchange effect and other 11.9 11.8 Balance - December 31 (116.7) 24.2 |
Schedule of changes in net deferred income tax asset | 2021 Provision Operating for losses Provision Deferred and and loss for premium capital adjustment unearned acquisition Intangible Tax losses expenses premiums costs assets Investments credits Other Total Balance - January 1 236.3 168.8 141.7 (116.1) (389.5) 23.9 174.8 117.6 357.5 Amounts recorded in the consolidated statement of earnings (3.5) 35.6 46.0 (39.4) (19.5) (339.2) 32.3 (51.3) (339.0) Amounts recorded in total equity 17.5 — — — — 0.8 — (37.5) (19.2) Acquisitions of subsidiaries (note 23) (4.2) — — 7.9 (10.3) (98.9) — 31.4 (74.1) Deconsolidation of non-insurance subsidiaries (note 23) (7.5) — — — 7.8 — — 2.3 2.6 Foreign exchange effect and other (8.6) (0.2) — (0.2) (1.6) (1.1) 6.5 1.0 (4.2) Balance - December 31 230.0 204.2 187.7 (147.8) (413.1) (414.5) 213.6 63.5 (76.4) 2020 Provision Operating for losses Provision Deferred and and loss for premium capital adjustment unearned acquisition Intangible Tax losses expenses premiums costs assets Investments credits Other Total Balance - January 1 119.2 145.3 119.9 (96.9) (428.2) 128.0 211.0 177.6 375.9 Amounts recorded in the consolidated statement of earnings 105.0 22.5 21.8 (19.3) 37.9 (110.8) (36.0) (79.0) (57.9) Amounts recorded in total equity 0.4 — — — — 0.6 — 25.1 26.1 Acquisitions of subsidiaries (note 23) (0.1) — — — — — 0.1 6.0 6.0 Deconsolidation of non-insurance subsidiary (note 23) (0.5) — — — — — — 2.3 1.8 Foreign exchange effect and other 12.3 1.0 — 0.1 0.8 6.1 (0.3) (14.4) 5.6 Balance - December 31 236.3 168.8 141.7 (116.1) (389.5) 23.9 174.8 117.6 357.5 |
Statutory Requirements (Tables)
Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statutory Requirements | |
Schedule of dividend capacity available | December 31, 2021 Allied World 1,014.2 Odyssey Group 400.4 Northbridge (1) 326.6 Crum & Forster 185.3 Zenith National 70.8 1,997.3 (1) Subject to prior regulatory approval. |
Pensions and Post Retirement _2
Pensions and Post Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Pensions and Post Retirement Benefits | |
Schedule of disclosure of defined benefit plans | The funded status of the company’s defined benefit pension and post retirement plans at December 31 were as follows: Defined benefit Defined benefit pension plans post retirement plans 2021 2020 2021 2020 Benefit obligation (1,070.9) (914.8) (83.9) (89.2) Fair value of plan assets 1,014.7 700.9 — — Net accrued liability (1) (56.2) (213.9) (83.9) (89.2) Weighted average assumptions used to determine benefit obligations: Discount rate 2.6 % 2.2 % 3.1 % 2.6 % Rate of compensation increase 2.2 % 2.6 % 3.7 % 3.4 % Health care cost trend — — 3.6 % 3.5 % (1) The defined benefit pension plan net accrued liability at December 31, 2021 of $56.2 (December 31, 2020 - $213.9 ) was comprised of pension deficits of $170.0 , partially offset by pension surpluses of $113.8 (December 31, 2020 - $262.7 , partially offset by $48.8 ). See notes 13 and 14. |
Schedule of pension and post retirement expenses recognized | Pension and post retirement benefit expenses recognized in the consolidated statement of earnings for the years ended December 31 were as follows: 2021 2020 Defined benefit pension plan expense 25.8 24.3 Defined contribution pension plan expense 57.8 53.7 Defined benefit post retirement plan expense (recovery) (1) 2.0 (39.8) 85.6 38.2 (1) During 2020 Odyssey Group amended its post retirement plan which resulted in a recovery of $48.5 . |
Schedule of pre-tax actuarial net gains (losses) recognized in the consolidated statements | Pre-tax actuarial net gains (losses) recognized in the consolidated statement of comprehensive income for the years ended December 31 were comprised as follows: 2021 2020 Defined benefit pension plans Actuarial net gains on plan assets and change in asset ceiling 78.6 17.6 Actuarial net gains (losses) on benefit obligations 33.8 (101.5) 112.4 (83.9) Defined benefit post retirement plans - actuarial net gains (losses) on benefit obligations 3.2 (4.4) 115.6 (88.3) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of changes in right-of-use assets | 2021 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Balance - January 1 396.1 611.9 1,008.0 385.4 635.2 1,020.6 Additions 44.0 92.0 136.0 81.5 100.6 182.1 Disposals (41.2) (19.8) (61.0) (3.1) (19.9) (23.0) Depreciation (2) (68.3) (113.0) (181.3) (68.9) (118.0) (186.9) Acquisitions of subsidiaries (note 23) 0.9 14.1 15.0 — 20.1 20.1 Deconsolidation of subsidiaries (note 23) (1.4) (146.7) (148.1) — — — Foreign exchange effect and other (1.3) (7.5) (8.8) 1.2 (6.1) (4.9) Balance - December 31 (note 13) 328.8 431.0 759.8 396.1 611.9 1,008.0 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Recorded in operating expenses and other expenses in the consolidated statement of earnings. |
Disclosure of maturity analysis of operating lease payments | December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total One year or less 77.4 173.6 251.0 78.7 212.9 291.6 One to two years 67.6 148.1 215.7 72.5 179.6 252.1 Two to three years 58.6 129.8 188.4 64.3 152.0 216.3 Three to four years 52.0 115.4 167.4 56.5 128.7 185.2 Four to five years 45.1 96.3 141.4 50.6 110.6 161.2 More than five years 142.8 249.6 392.4 213.4 373.0 586.4 Lease liabilities, undiscounted 443.5 912.8 1,356.3 536.0 1,156.8 1,692.8 Lease liabilities, discounted 384.2 756.5 1,140.7 456.8 995.3 1,452.1 Weighted average incremental borrowing rate 3.8 % 4.5 % 4.3 % 4.2 % 4.5 % 4.4 % (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. |
Disclosure of maturity analysis of finance lease payments receivable | December 31, 2021 December 31, 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies(1) companies Total companies (1) companies Total One year or less 2.5 62.0 64.5 1.8 65.4 67.2 One to two years 2.3 53.0 55.3 1.8 59.3 61.1 Two to three years 1.3 44.7 46.0 1.6 49.6 51.2 Three to four years 1.0 39.3 40.3 0.7 42.0 42.7 Four to five years 1.0 33.3 34.3 0.7 35.6 36.3 More than five years 2.8 64.5 67.3 3.4 90.5 93.9 Finance lease receivables, undiscounted 10.9 296.8 307.7 10.0 342.4 352.4 Unearned finance income 1.5 40.1 41.6 1.5 45.5 47.0 Finance lease receivables (note 13) 9.4 256.7 266.1 8.5 296.9 305.4 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other . |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions and Divestitures | |
Schedule of fair value of assets acquired and liabilities | Eurolife Acquisition date July 14, 2021 Percentage of common shares acquired 80.0 % (1) Assets: Insurance contract receivables 11.6 Portfolio investments 3,653.9 (2) Recoverable from reinsurers 18.6 Deferred income tax assets 32.6 Intangible assets 45.5 (3) Other assets 616.3 (4) 4,378.5 Liabilities: Accounts payable and accrued liabilities 273.2 (5) Insurance contract payables 529.0 Insurance contract liabilities 2,751.4 Deferred income tax liabilities 100.9 3,654.5 Purchase consideration 720.0 (6) Excess of fair value of net assets acquired over purchase consideration 4.0 4,378.5 (1) The transaction was recorded as the acquisition of a 100% equity interest in Eurolife with the non-controlling interests represented by a redemption liability (described in footnote 5 below) that was included in the fair value of assets acquired and liabilities assumed. (2) Includes subsidiary cash and cash equivalents of $1,433.3 . (3) Principally an intangible asset of $29.0 related to a distribution agreement with Eurobank. (4) Principally investment assets of $532.1 related to unit-linked life insurance contracts. (5) Includes a redemption liability of $124.9 on non-controlling interests as the company’s associate Eurobank may put its 20.0% equity interest in Eurolife to the company commencing in 2024 at the then fair value of that interest. (6) Comprised of cash consideration of $142.7 , a call option exercised with a fair value of $127.3 and the company’s 50.0% joint venture interest with a fair value of $450.0 . |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Risk Management | |
Schedule of concentration of risk by region and line of business based on gross premiums written | The table that follows shows the company’s concentration of insurance risk by region and line of business based on gross premiums written prior to giving effect to ceded reinsurance premiums. The company’s exposure to general insurance risk varies by geographic region and may change over time. Premiums ceded to reinsurers (including retrocessions) in 2021 by line of business was comprised of property of $1,717.4 (2020 - $1,470.7), casualty of $3,487.7 (2020 - $2,361.2) and specialty of $423.4 (2020 - $429.5). Canada United States Asia (1) International (2) Total (3) For the years ended December 31 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Property 1,229.1 996.2 3,912.4 3,364.7 849.2 735.4 2,141.9 1,756.2 8,132.6 6,852.5 Casualty 1,159.0 899.1 10,364.0 7,812.8 549.8 446.6 1,659.5 1,279.4 13,732.3 10,437.9 Specialty 223.3 188.9 755.6 735.7 277.4 248.4 674.8 662.5 1,931.1 1,835.5 Total 2,611.4 2,084.2 15,032.0 11,913.2 1,676.4 1,430.4 4,476.2 3,698.1 23,796.0 19,125.9 Insurance 2,475.1 1,969.4 11,448.6 9,020.4 739.7 682.2 3,341.0 2,637.4 18,004.4 14,309.4 Reinsurance 136.3 114.8 3,583.4 2,892.8 936.7 748.2 1,135.2 1,060.7 5,791.6 4,816.5 2,611.4 2,084.2 15,032.0 11,913.2 1,676.4 1,430.4 4,476.2 3,698.1 23,796.0 19,125.9 (1) The Asia geographic segment is primarily comprised of countries located throughout Asia, including China, Japan, India, Sri Lanka, Malaysia, Singapore, Indonesia and Thailand, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe and Africa. (3) Excludes Eurolife’s life insurance operations gross premiums written of $114.2 (2020 - nil ) since Eurolife’s consolidation on July 14, 2021. |
Schedule of gross credit risk exposure | The company’s gross credit risk exposure (without consideration of amounts held by the company as collateral) was comprised as follows: December 31, December 31, 2021 2020 Cash and short term investments 22,795.5 13,920.6 Investments in debt instruments: U.S. sovereign government (1) 3,957.9 3,058.4 Other sovereign government rated AA/Aa or higher (1)(2) 1,074.7 311.2 All other sovereign government (3) 2,194.9 649.3 Canadian provincials 45.0 49.9 U.S. states and municipalities 387.2 378.2 Corporate and other (4)(5) 6,873.9 11,848.3 Receivable from counterparties to derivative contracts 158.9 222.4 Insurance contract receivables 6,883.2 5,816.1 Recoverable from reinsurers 12,090.5 10,533.2 Other assets (6) 1,881.3 1,729.7 Total gross credit risk exposure 58,343.0 48,517.3 (1) Represented together 9.5% of the company’s total investment portfolio at December 31, 2021 (December 31, 2020 - 7.8% ) and considered by the company to have nominal credit risk. (2) Comprised primarily of bonds issued by the governments of Canada, Singapore, Australia and Hong Kong with fair values at December 31, 2021 of $614.6 , $95.1 , $92.7 and $43.5 respectively (December 31, 2020 - $16.5 , $95.7 , $42.0 and $58.7 ). (3) Comprised primarily of bonds issued by the governments of Greece, Brazil, Spain and India with fair values at December 31, 2021 of $844.7 , $415.4 , $297.5 and $192.5 respectively (December 31, 2020 - $1.2 , $40.0 , $233.9 , and $22.5 ). (4) Represents 13.0% of the company’s total investment portfolio at December 31, 2021 compared to 27.4% at December 31, 2020, with the decrease principally related to net sales of short to mid-dated high quality corporate bonds of $4,867.1 , the exchange of Seaspan debentures for Atlas preferred shares and the redemption of the remaining Seaspan debentures as described in note 6 , partially offset by net purchases of unrated first mortgage loans of $826.9 and an investment in Mosaic Capital 25-year debentures as described in note 23. (5) Includes the company’s investments in first mortgage loans at December 31, 2021 of $1,659.4 (December 31, 2020 - $775.4 ) secured by real estate predominantly in the U.S., Europe and Canada . (6) Excludes assets associated with unit-linked insurance products of $637.1 at December 31, 2021 (December 31, 2020 – nil ) for which credit risk is not borne by the company, and income taxes refundable of $58.3 at December 31, 2021 (December 31, 2020 - $88.7 ) that are considered to have nominal credit risk. |
Schedule of investments in debt instruments classified according to the higher of each security's respective S&P and Moody's issuer credit rating | The composition of the company’s investments in debt instruments classified according to the higher of each security’s respective S&P and Moody’s issuer credit rating is presented in the table that follows: December 31, 2021 December 31, 2020 Amortized Fair Amortized Fair Issuer Credit Rating cost value % cost value % AAA/Aaa 5,248.2 5,237.3 36.1 3,574.3 3,604.8 22.1 AA/Aa 435.0 437.7 3.0 779.1 805.1 4.9 A/A 1,838.4 1,865.5 12.8 3,856.5 4,086.6 25.1 BBB/Baa 1,749.9 1,914.6 13.2 4,157.4 4,590.8 28.2 BB/Ba 1,840.9 1,808.3 12.4 489.6 518.8 3.2 B/B 115.0 114.8 0.8 41.7 42.9 0.3 Lower than B/B 58.4 62.9 0.4 62.4 63.8 0.4 Unrated (1)(2) 2,935.3 3,092.5 21.3 2,458.9 2,582.5 15.8 Total 14,221.1 14,533.6 100.0 15,419.9 16,295.3 100.0 (1) Comprised primarily of the fair value of the company’s investments in Blackberry Limited of $535.1 (December 31, 2020 - $438.6 ), Mosaic Capital of $129.3 (December 31, 2020 - nil ), Chorus Aviation Inc. of $90.6 (December 31, 2020 - $153.0 ) and Atlas of nil (December 31, 2020 - $575.9 ). (2) Includes the company’s investments in first mortgage loans at December 31, 2021 of $1,659.4 (December 31, 2020 - $775.4 ) secured by real estate predominantly in the U.S., Europe and Canada, primarily with loan-to-value ratios of approximately 60% , reducing the company’s credit risk exposure related to these investments. |
Schedule of credit risk related to derivative contract counterparties | The following table sets out the company’s net derivative counterparty risk assuming all derivative counterparties are simultaneously in default: December 31, December 31, 2021 2020 Total derivative assets (1) 158.9 222.4 Obligations that may be offset under net settlement arrangements (9.6) (32.0) Fair value of collateral deposited for the benefit of the company (2) (116.5) (124.3) Excess collateral pledged by the company in favour of counterparties 4.8 11.7 Initial margin not held in segregated third party custodian accounts — 5.6 Net derivative counterparty exposure after net settlement and collateral arrangements 37.6 83.4 (1) Excludes equity warrants, equity call options and other derivatives which are not subject to counterparty risk. (2) Excludes excess collateral pledged by counterparties of $22.5 at December 31, 2021 (December 31, 2020 - $5.0 ). |
Schedule of gross recoverable from reinsurers classified according to the financial strength ratings of the reinsurers | The following table presents the gross recoverable from reinsurers classified according to the financial strength ratings of the reinsurers. Pools and associations are generally government or similar insurance funds with limited credit risk. December 31, 2021 December 31, 2020 Outstanding Outstanding Gross balances for Net unsecured Gross balances for Net unsecured recoverable which security recoverable recoverable which security recoverable A.M. Best Rating (or S&P equivalent) from reinsurers is held from reinsurers from reinsurers is held from reinsurers A++ 568.2 27.2 541.0 473.9 27.5 446.4 A+ 5,905.9 494.4 5,411.5 5,244.2 361.5 4,882.7 A 3,899.8 227.3 3,672.5 3,072.9 97.6 2,975.3 A- 371.9 43.9 328.0 359.1 29.9 329.2 B++ 50.8 4.6 46.2 55.9 5.2 50.7 B+ 0.5 0.3 0.2 2.6 — 2.6 B or lower 20.2 0.1 20.1 16.0 0.4 15.6 Not rated 1,004.0 576.7 427.3 1,101.8 726.9 374.9 Pools and associations 447.9 7.1 440.8 362.4 7.0 355.4 12,269.2 1,381.6 10,887.6 10,688.8 1,256.0 9,432.8 Provision for uncollectible reinsurance (178.7) (178.7) (155.6) (155.6) Recoverable from reinsurers 12,090.5 10,708.9 10,533.2 9,277.2 |
Disclosure of maturity profile of the financial liabilities | The following tables set out the maturity profile of the company’s financial and insurance liabilities based on the expected undiscounted cash flows from the balance sheet date to the contractual maturity date or the settlement date: December 31, 2021 3 months 3 months More than or less to 1 year 1 - 3 years 3 - 5 years 5 years Total Accounts payable and accrued liabilities (1) 1,586.6 821.6 1,131.3 399.1 519.7 4,458.3 Insurance contract payables (2) 1,026.7 1,970.0 346.4 16.1 611.6 3,970.8 Provision for losses and loss adjustment expenses 2,925.1 7,033.9 10,662.4 5,391.2 8,410.2 34,422.8 Provision for life policy benefits 72.0 162.7 585.0 575.7 1,280.4 2,675.8 Borrowings - holding company and insurance and reinsurance companies: Principal 0.1 0.2 283.1 1,270.8 4,614.8 6,169.0 Interest 66.0 193.8 520.0 445.6 584.9 1,810.3 Borrowings - non-insurance companies: Principal 512.2 72.2 270.8 41.3 736.8 1,633.3 Interest 38.3 35.9 99.8 78.9 114.9 367.8 6,227.0 10,290.3 13,898.8 8,218.7 16,873.3 55,508.1 December 31, 2020 3 months 3 months More than or less to 1 year 1 - 3 years 3 - 5 years 5 years Total Accounts payable and accrued liabilities (1) 1,464.8 816.6 854.5 454.3 675.3 4,265.5 Insurance contract payables (2) 775.6 1,493.0 205.6 13.5 13.5 2,501.2 Provision for losses and loss adjustment expenses 2,880.5 6,111.7 9,577.5 4,753.5 7,486.1 30,809.3 Borrowings - holding company and insurance and reinsurance companies: Principal 50.1 892.7 664.7 1,142.9 3,887.8 6,638.2 Interest 54.6 204.2 479.0 411.5 554.1 1,703.4 Borrowings - non-insurance companies: Principal 547.6 761.6 269.5 344.0 288.1 2,210.8 Interest 27.2 43.3 76.5 40.7 103.4 291.1 5,800.4 10,323.1 12,127.3 7,160.4 13,008.3 48,419.5 (1) Excludes pension and post retirement liabilities (note 21), deferred gift card, hospitality and other revenue, accrued interest expense and other. The maturity profile of lease liabilities included in the table above is described in note 22. (2) Excludes ceded deferred premium acquisition costs. |
Disclosure of maturity profile of the derivative obligations | The following table provides a maturity profile of the company’s derivative obligations based on the expected undiscounted cash flows from the balance sheet date to the contractual maturity date or the settlement date: December 31, 2021 December 31, 2020 3 months 3 months More than 3 months 3 months More than or less to 1 year 1 year Total or less to 1 year 1 year Total Equity total return swaps - long positions 1.8 0.1 — 1.9 8.3 9.7 — 18.0 U.S. treasury bond forward contracts — 0.8 — 0.8 — — — — Foreign currency forward and swap contracts 26.4 5.0 46.0 77.4 74.3 16.1 45.6 136.0 Other derivative contracts 46.5 25.9 0.4 72.8 25.8 9.5 0.1 35.4 74.7 31.8 46.4 152.9 108.4 35.3 45.7 189.4 |
Schedule of potential impact of changes in interest rates on fixed income portfolio | The table below displays the potential impact of changes in interest rates on the company’s fixed income portfolio based on parallel 200 basis points shifts up and down, in 100 basis points increments, which the company believes to be reasonably possible in the current economic environment given the continued uncertainty caused by the COVID-19 pandemic. This analysis was performed on each individual security to determine the hypothetical effect on net earnings. December 31, 2021 December 31, 2020 Fair value of Hypothetical Hypothetical Fair value of Hypothetical Hypothetical fixed income change in net % change fixed income change in net % change portfolio earnings (1) in fair value (1) portfolio earnings (1) in fair value (1) Change in interest rates 200 basis point increase 13,984.0 (418.4) (3.8) 15,540.5 (624.5) (4.6) 100 basis point increase 14,239.6 (224.3) (2.0) 15,889.8 (335.2) (2.5) No change 14,533.6 — — 16,295.3 — — 100 basis point decrease 14,900.9 280.6 2.5 16,790.2 410.0 3.0 200 basis point decrease 15,327.9 607.5 5.5 17,348.4 871.6 6.5 (1) Includes the impact of forward contracts to sell long dated U.S. treasury bonds with a notional amount at December 31, 2021 of $1,691.3 (December 31, 2020 - $330.8 ). |
Schedule of impact of equity and equity-related holdings on the financial position | The following table summarizes the net effect of the company’s equity and equity-related holdings (long exposures net of short exposures) on the company’s financial position as at December 31, 2021 and 2020 and results of operations for the years then ended. In that table the company considers its non-insurance investments in associates (note 6) with a fair value at December 31, 2021 of $7,192.1 (December 31, 2020 – $5,609.8) as a component of its equity and equity-related holdings when assessing its net equity exposures. Year ended Year ended December 31, December 31, December 31, 2021 December 31, 2020 2021 2020 Exposure/ Exposure/ Pre-tax Pre-tax Notional Carrying Notional Carrying earnings earnings amount value amount value (loss) (loss) Long equity exposures: Common stocks 5,845.5 5,845.5 4,939.7 4,939.7 1,333.4 24.7 Preferred stocks – convertible (1) 54.5 54.5 27.9 27.9 2.8 4.4 Bonds – convertible 583.4 583.4 461.3 461.3 101.3 143.4 Investments in associates (1)(2)(3) 7,192.1 5,496.6 5,609.8 5,134.9 52.7 8.6 Deconsolidation of non-insurance subsidiaries (4) — — — — 190.3 (78.5) Derivatives and other invested assets: Equity total return swaps – long positions 1,082.8 94.2 1,788.3 126.3 407.5 325.6 Equity warrants and options (5) 257.3 257.3 132.8 132.8 114.2 (56.3) RiverStone Barbados AVLNs (note 23) 1,250.1 103.8 — — 109.9 — Total equity and equity related holdings 16,265.7 12,435.3 12,959.8 10,822.9 2,312.1 371.9 Short equity exposures: Derivatives and other invested assets: Equity total return swaps – short positions — — — — — (528.6) — — — — — (528.6) Net equity exposures and financial effects 16,265.7 12,959.8 2,312.1 (156.7) (1) Excludes the company’s insurance and reinsurance investments in associates and joint ventures and certain other equity and equity-related holdings which are considered long term strategic holdings. See note 6. (2) During 2021 the company sold a portion of its investment in IIFL Finance for cash proceeds of $113.7 ( 8.6 billion Indian rupees) and recorded a net realized gain of $42.0 in the consolidated statement of earnings as described in note 6. (3) On February 28, 2020 the company sold its investment in APR Energy to Atlas in an all-stock transaction as described in note 6. (4) Principally comprised of the sale of Toys “R” Us Canada and Fairfax India’s sale of Privi during 2021 and the deconsolidation of Fairfax Africa during 2020 as described in note 23. (5) Includes Atlas warrants. |
Schedule of potential impact on net earnings of changes in the fair value of equity and equity-related holdings | The table that follows illustrates the potential impact on net earnings of changes in the fair value of the company’s equity and equity-related holdings (long exposures net of short exposures) as a result of changes in global equity markets at December 31, 2021 and 2020. The analysis assumes variations of 10% and 20% (December 31, 2020 - 10% and 20%) which the company believes to be reasonably possible in the current economic environment based on analysis of the return on various equity indexes and management’s knowledge of global equity markets. December 31, 2021 Change in global equity markets 20% increase 10% increase No change 10% decrease 20% decrease Fair value of equity and equity-related holdings 10,861.1 9,966.1 9,073.6 8,184.4 7,297.3 Hypothetical $ change in net earnings 1,549.7 773.5 — (770.6) (1,538.8) Hypothetical % change in fair value 19.7 9.8 — (9.8) (19.6) December 31, 2020 Change in global equity markets 20% increase 10% increase No change 10% decrease 20% decrease Fair value of equity and equity-related holdings 8,799.0 8,074.2 7,350.0 6,627.5 5,897.4 Hypothetical $ change in net earnings 1,227.5 613.3 — (611.6) (1,228.8) Hypothetical % change in fair value 19.7 9.9 — (9.8) (19.8) |
Schedule of pre-tax foreign exchange effects included in net gains (losses) on investments | The pre-tax foreign exchange effects included in net gains (losses) on investments in the company’s consolidated statements of earnings for the years ended December 31 were as follows: 2021 2020 Net gains (losses) on investments: Investing activities (122.3) 105.4 Underwriting activities 41.2 (16.8) Foreign currency contracts (12.0) (33.0) Foreign currency net gains (losses) (93.1) 55.6 |
Schedule of effect of currency appreciation | The table below shows the approximate effect of a 10% appreciation of the U.S. dollar against each of the Canadian dollar, euro, British pound sterling, Indian rupee and all other currencies, respectively, on pre-tax earnings (loss), net earnings (loss), pre-tax other comprehensive income (loss) and other comprehensive income (loss). Certain shortcomings are inherent in the method of analysis presented, including the assumption that the 10% appreciation of the U.S. dollar occurred at December 31, 2021 with all other variables held constant. British All other Canadian dollar Euro pound sterling Indian rupee currencies Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Pre-tax earnings (loss) 5.9 (25.6) 31.4 (35.2) 41.6 58.3 (252.6) (47.3) 50.1 45.0 (123.6) (4.8) Net earnings (loss) 1.7 (25.1) 26.9 (26.5) 35.5 48.8 (235.8) (45.9) 33.3 36.0 (138.4) (12.7) Pre-tax other comprehensive income (loss) (210.4) (112.1) (64.1) (17.4) (50.1) (56.4) (247.9) (247.7) (156.5) (108.6) (729.0) (542.2) Other comprehensive income (loss) (209.3) (115.5) (40.0) 13.7 (49.1) (55.6) (230.5) (229.2) (148.4) (109.1) (677.3) (495.7) |
Schedule of capital management | The company manages its capital based on the following financial measurements and ratios: Excluding consolidated non- Consolidated insurance companies December 31, December 31, December 31, December 31, 2021 2020 2021 2020 Holding company cash and investments (net of derivative obligations) 1,446.2 1,229.4 1,446.2 1,229.4 Borrowings – holding company 5,338.6 5,580.6 5,338.6 5,580.6 Borrowings – insurance and reinsurance companies 790.7 1,033.4 790.7 1,033.4 Borrowings – non-insurance companies 1,623.7 2,200.0 — — Total debt 7,753.0 8,814.0 6,129.3 6,614.0 Net debt (1) 6,306.8 7,584.6 4,683.1 5,384.6 Common shareholders’ equity 15,049.6 12,521.1 15,049.6 12,521.1 Preferred stock 1,335.5 1,335.5 1,335.5 1,335.5 Non-controlling interests 4,930.2 3,670.7 2,931.4 1,831.8 Total equity 21,315.3 17,527.3 19,316.5 15,688.4 Net debt/total equity 29.6 % 43.3 % 24.2 % 34.3 % Net debt/net total capital (2) 22.8 % 30.2 % 19.5 % 25.6 % Total debt/total capital (3) 26.7 % 33.5 % 24.1 % 29.7 % Interest coverage (4) 10.6x 1.6x 13.0x (6) 3.3x (6) Interest and preferred share dividend distribution coverage (5) 9.4x 1.4x 11.1x (6) 2.7x (6) (1) Net debt is calculated by the company as total debt less holding company cash and investments (net of derivative obligations). (2) Net total capital is calculated by the company as the sum of total equity and net debt. (3) Total capital is calculated by the company as the sum of total equity and total debt. (4) Interest coverage is calculated by the company as earnings (loss) before income taxes and interest expense on borrowings, divided by interest expense on borrowings. (5) Interest and preferred share dividend distribution coverage is calculated by the company as earnings (loss) before income taxes and interest expense on borrowings divided by the sum of interest expense on borrowings and preferred share dividend distributions adjusted to a pre-tax equivalent at the company’s Canadian statutory income tax rate. (6) Excludes earnings (loss) before income taxes, and interest expense on borrowings, of consolidated non-insurance companies. |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segmented Information | |
Schedule of operating segments | Sources of earnings by reporting segment for the years ended December 31 were as follows: 2021 Property and Casualty Insurance and Reinsurance Life insurance Non- Eliminations Odyssey Crum & Zenith Allied Fairfax and insurance Corporate and Northbridge Group Forster National Brit World Asia Other Total Run-off companies and Other adjustments Consolidated Gross premiums written External 2,121.6 5,551.4 3,704.8 718.2 3,221.9 5,794.3 534.4 2,149.4 23,796.0 114.2 — — — 23,910.2 Intercompany 5.0 194.9 24.9 17.0 16.4 57.6 2.6 216.4 534.8 358.1 — — (892.9) — 2,126.6 5,746.3 3,729.7 735.2 3,238.3 5,851.9 537.0 2,365.8 24,330.8 472.3 — — (892.9) 23,910.2 Net premiums written 1,917.4 4,849.4 2,689.3 713.0 1,998.3 3,907.8 260.6 1,473.6 17,809.4 468.7 — — — 18,278.1 Net premiums earned External 1,815.9 4,178.3 2,910.5 708.9 1,754.4 3,597.9 283.1 1,199.3 16,448.3 109.7 — — — 16,558.0 Intercompany (15.0) 67.6 (397.7) 2.2 (0.1) (146.3) (33.4) 164.6 (358.1) 358.1 — — — — 1,800.9 4,245.9 2,512.8 711.1 1,754.3 3,451.6 249.7 1,363.9 16,090.2 467.8 — — — 16,558.0 Underwriting expenses (2) (1,598.7) (4,153.7) (2,410.9) (628.3) (1,698.7) (3,225.2) (229.6) (1,343.9) (15,289.0) (776.8) — — 0.3 (16,065.5) Underwriting profit (loss) 202.2 92.2 101.9 82.8 55.6 226.4 20.1 20.0 801.2 (309.0) — — 0.3 492.5 Interest income 61.8 149.0 80.9 11.7 52.2 98.4 15.4 51.4 520.8 22.2 3.9 28.2 (6.7) 568.4 Dividends 14.8 14.3 6.3 2.8 5.3 17.6 5.3 6.3 72.7 7.8 28.5 (0.8) — 108.2 Investment expenses (16.9) (46.3) (18.2) (8.1) (14.1) (39.7) (1.5) (7.0) (151.8) (10.7) (127.1) (2.8) 256.6 (35.8) Interest and dividends 59.7 117.0 69.0 6.4 43.4 76.3 19.2 50.7 441.7 19.3 (94.7) 24.6 249.9 640.8 Share of profit of associates 1.9 101.6 66.6 35.1 31.5 51.7 12.2 23.5 324.1 16.8 22.3 38.8 — 402.0 Other Revenue — — — — — — — — — — 5,157.5 — 0.5 5,158.0 Expenses — — — — — — — — — — (5,092.1) — 5.2 (5,086.9) — — — — — — — — — — 65.4 — 5.7 71.1 Operating income (loss) 263.8 310.8 237.5 124.3 130.5 354.4 51.5 94.2 1,567.0 (272.9) (7.0) 63.4 255.9 1,606.4 Net gains on investments (1) 269.2 419.2 201.9 47.4 6.9 178.0 1,485.7 36.2 2,644.5 69.7 266.0 464.9 — 3,445.1 Gain on sale and consolidation of insurance subsidiaries — — — — 33.2 35.5 60.8 4.0 133.5 — — 130.5 — 264.0 Interest expense (1.2) (4.4) (3.7) (3.7) (18.3) (27.8) (0.2) (2.2) (61.5) (7.9) (140.3) (305.4) 1.2 (513.9) Corporate overhead and other (11.8) (18.9) (32.7) (9.2) (13.2) (55.9) (19.8) (2.5) (164.0) (38.4) — 50.0 (256.6) (409.0) Pre-tax income (loss) 520.0 706.7 403.0 158.8 139.1 484.2 1,578.0 129.7 4,119.5 (249.5) 118.7 403.4 0.5 4,392.6 Provision for income taxes (726.0) Net earnings 3,666.6 Attributable to: Shareholders of Fairfax 3,401.1 Non-controlling interests 265.5 3,666.6 (1) Includes net gains on deconsolidation of non-insurance subsidiaries primarily related to the deconsolidation of Fairfax India’s subsidiary Privi of $94.9 and Toys “R” Us Canada of $85.7 as described in note 23. (2) Property and casualty insurance and reinsurance underwriting expenses for the year ended December 31, 2021 were comprised as shown below. Accident year underwriting expenses exclude the impact of favourable or adverse prior year claims reserve development. Property and Casualty Insurance and Reinsurance Odyssey Crum & Zenith Allied Fairfax Northbridge Group Forster National Brit World Asia Other Total Loss & LAE - accident year 1,038.0 3,111.7 1,434.9 427.4 981.6 2,458.3 162.9 823.7 10,438.5 Commissions 316.0 796.6 516.3 81.3 489.1 285.3 32.2 257.4 2,774.2 Other underwriting expenses 273.9 365.5 463.4 190.4 328.1 462.8 56.0 291.8 2,431.9 Underwriting expenses - accident year 1,627.9 4,273.8 2,414.6 699.1 1,798.8 3,206.4 251.1 1,372.9 15,644.6 Net (favourable) adverse claims reserve development (29.2) (120.1) (3.7) (70.8) (100.1) 18.8 (21.5) (29.0) (355.6) Underwriting expenses - calendar year 1,598.7 4,153.7 2,410.9 628.3 1,698.7 3,225.2 229.6 1,343.9 15,289.0 2020 Property and Casualty Insurance and Reinsurance Non- Eliminations Odyssey Crum & Zenith Allied Fairfax Run- insurance Corporate and Northbridge Group Forster National Brit World Asia Other Total off (1) companies and Other adjustments Consolidated Gross premiums written External 1,727.5 4,306.3 3,082.4 661.7 2,407.6 4,633.8 421.2 1,738.6 18,979.1 146.8 — — — 19,125.9 Intercompany 7.7 140.4 27.0 — 16.8 46.9 3.5 135.4 377.7 — — — (377.7) — 1,735.2 4,446.7 3,109.4 661.7 2,424.4 4,680.7 424.7 1,874.0 19,356.8 146.8 — — (377.7) 19,125.9 Net premiums written 1,540.4 3,789.6 2,543.0 646.1 1,775.6 3,017.6 221.6 1,183.8 14,717.7 146.8 — — — 14,864.5 Net premiums earned External 1,435.1 3,555.8 2,462.7 646.6 1,710.4 2,788.4 229.2 1,030.8 13,859.0 129.7 — — — 13,988.7 Intercompany (11.0) 30.8 (36.5) (2.8) 0.3 (65.8) (7.5) 94.1 1.6 (1.6) — — — — 1,424.1 3,586.6 2,426.2 643.8 1,710.7 2,722.6 221.7 1,124.9 13,860.6 128.1 — — — 13,988.7 Underwriting expenses (2) (1,315.3) (3,396.7) (2,366.1) (591.9) (1,951.0) (2,596.6) (214.6) (1,119.4) (13,551.6) (336.2) — — — (13,887.8) Underwriting profit (loss) 108.8 189.9 60.1 51.9 (240.3) 126.0 7.1 5.5 309.0 (208.1) — — — 100.9 Interest income 59.6 173.6 91.9 24.3 67.1 136.5 14.1 52.6 619.7 28.5 20.5 57.1 (9.3) 716.5 Dividends 7.9 8.6 2.2 1.8 3.4 20.3 7.1 3.7 55.0 4.9 17.2 0.7 — 77.8 Investment expenses (11.3) (31.0) (14.5) (7.1) (12.3) (30.1) (1.2) (6.6) (114.1) (8.7) 9.4 (2.0) 90.3 (25.1) Interest and dividends 56.2 151.2 79.6 19.0 58.2 126.7 20.0 49.7 560.6 24.7 47.1 55.8 81.0 769.2 Share of profit (loss) of associates (3.0) 27.8 (14.8) (4.2) 6.6 35.6 14.6 (16.4) 46.2 (11.2) (100.2) (47.6) — (112.8) Other Revenue — — — — — — — — — — 4,742.4 — (22.8) 4,719.6 Expenses — — — — — — — — — — (4,868.0) — 9.1 (4,858.9) — — — — — — — — — — (125.6) — (13.7) (139.3) Operating income (loss) 162.0 368.9 124.9 66.7 (175.5) 288.3 41.7 38.8 915.8 (194.6) (178.7) 8.2 67.3 618.0 Net gains (losses) on investments 105.7 (26.9) (158.2) (59.9) 24.4 246.0 12.3 (7.0) 136.4 (96.9) (65.6) 339.2 — 313.1 Gain (loss) on sale of insurance subsidiary (note 23) — (30.5) (25.8) — — — — — (56.3) (9.0) — 182.4 — 117.1 Interest expense (1.3) (6.4) (4.7) (3.8) (19.0) (30.3) (0.4) (1.7) (67.6) (2.3) (170.6) (235.6) 0.2 (475.9) Corporate overhead and other (8.1) (10.5) (28.2) (9.8) (11.9) (79.2) (6.0) (1.4) (155.1) (0.2) — (82.6) (90.3) (328.2) Pre-tax income (loss) 258.3 294.6 (92.0) (6.8) (182.0) 424.8 47.6 28.7 773.2 (303.0) (414.9) 211.6 (22.8) 244.1 Provision for income taxes (206.7) Net earnings 37.4 Attributable to: Shareholders of Fairfax 218.4 Non-controlling interests (181.0) 37.4 (1) Includes European Run-off prior to its deconsolidation on March 31, 2020 pursuant to the transaction described in note 23. (2) Property and casualty insurance and reinsurance underwriting expenses for the year ended December 31, 2020 were comprised as shown below. Accident year underwriting expenses exclude the impact of favourable or adverse prior year claims reserve development. Property and Casualty Insurance and Reinsurance Odyssey Crum & Zenith Allied Fairfax Northbridge Group Forster National Brit World Asia Other Total Loss & LAE - accident year 878.9 2,652.2 1,521.7 401.8 1,301.8 1,931.2 148.3 687.6 9,523.5 Commissions 243.8 693.5 415.2 74.1 436.4 253.7 30.8 215.6 2,363.1 Other underwriting expenses 231.8 270.5 434.4 190.1 275.6 416.8 54.0 246.7 2,119.9 Underwriting expenses - accident year 1,354.5 3,616.2 2,371.3 666.0 2,013.8 2,601.7 233.1 1,149.9 14,006.5 Net favourable claims reserve development (39.2) (219.5) (5.2) (74.1) (62.8) (5.1) (18.5) (30.5) (454.9) Underwriting expenses - calendar year 1,315.3 3,396.7 2,366.1 591.9 1,951.0 2,596.6 214.6 1,119.4 13,551.6 Investments in associates, segment assets and segment liabilities at December 31, and additions to goodwill for the years then ended, by reporting segment, were as follows: Investments in associates Additions to goodwill Segment assets Segment liabilities 2021 2020 2021 2020 2021 2020 2021 2020 Property and Casualty Insurance and Reinsurance Northbridge 192.1 182.1 — — 6,152.3 5,231.6 3,978.7 3,418.3 Odyssey Group 1,211.8 1,164.9 — — 17,309.9 15,041.7 11,946.1 10,141.0 Crum & Forster 422.5 368.2 — — 8,719.4 7,596.0 6,073.4 5,448.2 Zenith National 186.9 124.5 — — 2,562.9 2,472.0 1,515.3 1,539.1 Brit 363.0 363.1 16.4 — 10,597.7 9,040.7 8,082.6 6,826.2 Allied World 593.9 537.0 — — 19,294.8 16,975.5 14,591.1 12,547.4 Fairfax Asia 159.8 149.9 — — 4,010.0 1,920.1 1,336.8 794.7 Other 255.4 219.6 — — 5,752.7 5,097.8 4,509.7 4,021.4 3,385.4 3,109.3 16.4 — 74,399.7 63,375.4 52,033.7 44,736.3 Life insurance and Run-off 272.6 129.3 — — 6,669.1 2,601.9 5,781.1 2,095.9 Non-insurance companies 1,379.7 1,373.5 44.3 182.1 7,856.4 8,349.0 4,075.1 5,124.2 Corporate and Other and eliminations and adjustments 1,066.3 1,827.5 (1) — — (2,279.8) (272.3) 3,440.2 4,570.3 Consolidated 6,104.0 6,439.6 60.7 182.1 86,645.4 74,054.0 65,330.1 56,526.7 (1) Includes investment in associate held for sale related to RiverStone Barbados of $729.5 as described in note 23. Revenue and expenses of the non-insurance companies were comprised as follows for the years ended December 31: Restaurants and retail Fairfax India (1) Thomas Cook India (2) Other Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Revenue 1,803.8 1,734.2 228.2 312.8 249.4 225.2 2,876.1 2,470.2 5,157.5 4,742.4 Expenses (1,724.8) (1,811.1) (206.9) (305.9) (293.4) (288.3) (2,867.0) (2,462.7) (5,092.1) (4,868.0) Pre-tax income (loss) before interest expense and other (3) 79.0 (76.9) 21.3 6.9 (44.0) (63.1) 9.1 7.5 65.4 (125.6) Interest and dividends 7.5 6.1 (102.2) 28.9 (0.1) — 0.1 12.1 (94.7) 47.1 Share of profit (loss) of associates — 1.3 20.2 (24.8) (0.1) (3.4) 2.2 (73.3) 22.3 (100.2) Operating income (loss) 86.5 (69.5) (60.7) 11.0 (44.2) (66.5) 11.4 (53.7) (7.0) (178.7) Net gains (losses) on investments 29.5 (6.6) 236.4 (12.4) (3.3) 4.0 3.4 (50.6) 266.0 (65.6) Pre-tax income (loss) before interest expense 116.0 (76.1) 175.7 (1.4) (47.5) (62.5) 14.8 (104.3) 259.0 (244.3) (1) These results differ from those published by Fairfax India due to Fairfax India’s application of investment entity accounting under IFRS. (2) These results differ from those published by Thomas Cook India primarily due to differences between IFRS and Ind AS, and acquisition accounting adjustments. (3) Excludes interest and dividends, share of profit (loss) of associates and net gains (losses) on investments. |
Schedule of net premiums earned by product line | Net premiums earned by product line for the years ended December 31 were as follows: Property Casualty Specialty (1) Total 2021 2020 2021 2020 2021 2020 2021 2020 Property and Casualty Insurance and Reinsurance - net premiums earned Northbridge 810.8 626.4 828.7 659.6 161.4 138.1 1,800.9 1,424.1 Odyssey Group 2,187.5 1,838.9 1,741.8 1,444.0 316.6 303.7 4,245.9 3,586.6 Crum & Forster 355.9 364.2 1,903.3 1,837.5 253.6 224.5 2,512.8 2,426.2 Zenith National 42.9 37.5 668.2 605.9 — 0.4 711.1 643.8 Brit 699.2 544.3 745.7 853.0 309.4 313.4 1,754.3 1,710.7 Allied World 990.2 882.6 2,369.3 1,755.4 92.1 84.6 3,451.6 2,722.6 Fairfax Asia 90.4 74.5 120.9 116.4 38.4 30.8 249.7 221.7 Other 744.5 634.3 423.4 332.1 196.0 158.5 1,363.9 1,124.9 5,921.4 5,002.7 8,801.3 7,603.9 1,367.5 1,254.0 16,090.2 13,860.6 Life insurance and Run-off (1) 8.2 31.6 348.8 31.5 110.8 65.0 467.8 128.1 Consolidated net premiums earned 5,929.6 5,034.3 9,150.1 7,635.4 1,478.3 1,319.0 16,558.0 13,988.7 Interest and dividends 640.8 769.2 Share of profit (loss) of associates 402.0 (112.8) Net gains on investments 3,445.1 313.1 Gain on sale and consolidation of insurance subsidiaries (note 23) 264.0 117.1 Other revenue 5,158.0 4,719.6 Consolidated income 26,467.9 19,794.9 Distribution of net premiums earned 35.8 % 36.0 % 55.3 % 54.6 % 8.9 % 9.4 % 100.0 % 100.0 % (1) Includes Eurolife’s life insurance operations since Eurolife’s consolidation on July 14, 2021, and European Run-off prior to its deconsolidation on March 31, 2020, pursuant to the transactions described in note 23. |
Disclosure of geographical regions | Net premiums earned by geographic region for the years ended December 31 were as follows: Canada United States Asia (1) International (2) Total 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Property and Casualty Insurance and Reinsurance - net premiums earned Northbridge 1,782.7 1,407.3 18.2 16.8 — — — — 1,800.9 1,424.1 Odyssey Group 124.1 101.2 2,830.6 2,356.3 518.6 469.8 772.6 659.3 4,245.9 3,586.6 Crum & Forster 2.2 — 2,495.4 2,409.2 1.2 0.2 14.0 16.8 2,512.8 2,426.2 Zenith National — — 708.5 643.8 — — 2.6 — 711.1 643.8 Brit 90.5 97.7 1,271.1 1,228.5 49.3 45.9 343.4 338.6 1,754.3 1,710.7 Allied World 78.5 52.6 2,569.7 2,030.5 239.0 227.6 564.4 411.9 3,451.6 2,722.6 Fairfax Asia — — — — 249.7 221.7 — — 249.7 221.7 Other 0.2 0.1 81.8 54.8 189.2 139.6 1,092.7 930.4 1,363.9 1,124.9 2,078.2 1,658.9 9,975.3 8,739.9 1,247.0 1,104.8 2,789.7 2,357.0 16,090.2 13,860.6 Life insurance and Run-off (3) — 0.1 358.1 1.1 — — 109.7 126.9 467.8 128.1 Consolidated net premiums earned 2,078.2 1,659.0 10,333.4 8,741.0 1,247.0 1,104.8 2,899.4 2,483.9 16,558.0 13,988.7 Interest and dividends 640.8 769.2 Share of profit (loss) of associates 402.0 (112.8) Net gains on investments 3,445.1 313.1 Gain on sale and consolidation of insurance subsidiaries (note 23) 264.0 117.1 Other revenue 5,158.0 4,719.6 Consolidated income 26,467.9 19,794.9 Distribution of net premiums earned 12.6 % 11.9 % 62.4 % 62.4 % 7.5 % 7.9 % 17.5 % 17.8 % 100.0 % 100.0 % (1) The Asia geographic segment is primarily comprised of countries located throughout Asia, including China, Japan, India, Sri Lanka, Malaysia, Singapore, Indonesia and Thailand, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe and Africa. (3) Includes Eurolife’s life insurance operations since Eurolife’s consolidation on July 14, 2021, and European Run-off prior to its deconsolidation on March 31, 2020, pursuant to the transactions described in note 23. |
Schedule of Segmented Balance Sheet | December 31, 2021 December 31, 2020 Insurance Life Insurance and insurance Non- Corporate and Non- Corporate reinsurance and insurance and reinsurance insurance and companies Run-off companies eliminations (5) Consolidated companies Run-off companies eliminations (5) Consolidated Assets Holding company cash and investments 604.5 — — 873.8 1,478.3 598.1 — — 654.1 1,252.2 Insurance contract receivables 7,266.0 7.8 — (390.6) 6,883.2 6,052.5 8.4 — (244.8) 5,816.1 Portfolio investments (1)(2) 45,061.8 4,963.9 2,252.8 (581.1) 51,697.4 37,947.8 1,592.4 1,810.3 758.1 42,108.6 Deferred premium acquisition costs 1,977.3 3.8 — (57.0) 1,924.1 1,574.4 — — (30.7) 1,543.7 Recoverable from reinsurers 13,497.3 457.6 — (1,864.4) 12,090.5 11,254.2 453.7 — (1,174.7) 10,533.2 Deferred income tax assets 268.2 29.0 66.9 158.3 522.4 460.0 0.1 64.5 189.3 713.9 Goodwill and intangible assets 3,579.5 7.5 2,341.2 — 5,928.2 3,586.2 41.1 2,601.8 — 6,229.1 Due from affiliates 231.9 360.2 — (592.1) — 222.6 357.7 3.8 (584.1) — Other assets 1,746.0 810.0 3,195.5 369.8 6,121.3 1,526.4 119.2 3,868.6 343.0 5,857.2 Investments in affiliates (3) 167.2 29.3 — (196.5) — 153.2 29.3 — (182.5) — Total assets 74,399.7 6,669.1 7,856.4 (2,279.8) 86,645.4 63,375.4 2,601.9 8,349.0 (272.3) 74,054.0 Liabilities Accounts payable and accrued liabilities 2,150.4 233.4 2,077.4 524.2 4,985.4 1,843.3 59.9 2,566.4 526.5 4,996.1 Derivative obligations 72.5 — 47.9 32.5 152.9 114.9 1.1 50.0 23.4 189.4 Due to affiliates 29.4 0.2 135.1 (164.7) — 8.3 — 117.6 (125.9) — Deferred income tax liabilities 322.2 72.9 198.5 5.2 598.8 152.7 — 197.7 6.0 356.4 Insurance contract payables 4,289.4 652.0 — (447.9) 4,493.5 3,224.2 11.6 — (271.8) 2,964.0 Provision for losses and loss adjustment expenses (4) 33,684.6 4,806.1 — (1,598.4) 36,892.3 29,809.4 2,023.3 — (1,023.4) 30,809.3 Provision for unearned premiums (4) 10,694.5 16.5 — (256.8) 10,454.2 8,550.1 — — (152.6) 8,397.5 Borrowings 790.7 — 1,616.2 5,346.1 7,753.0 1,033.4 — 2,192.5 5,588.1 8,814.0 Total liabilities 52,033.7 5,781.1 4,075.1 3,440.2 65,330.1 44,736.3 2,095.9 5,124.2 4,570.3 56,526.7 Equity Shareholders' equity attributable to shareholders of Fairfax 19,778.9 888.0 1,782.5 (6,064.3) 16,385.1 17,117.4 506.0 1,385.9 (5,152.7) 13,856.6 Non-controlling interests 2,587.1 — 1,998.8 344.3 4,930.2 1,521.7 — 1,838.9 310.1 3,670.7 Total equity 22,366.0 888.0 3,781.3 (5,720.0) 21,315.3 18,639.1 506.0 3,224.8 (4,842.6) 17,527.3 Total liabilities and total equity 74,399.7 6,669.1 7,856.4 (2,279.8) 86,645.4 63,375.4 2,601.9 8,349.0 (272.3) 74,054.0 (1) Includes intercompany investments in Fairfax non-insurance subsidiaries carried at cost that are eliminated on consolidation. (2) Includes investment in associate held for sale at December 31, 2021 of nil (December 31, 2020 - $729.5 ). See note 6 and note 23. (3) Intercompany investments in Fairfax insurance and reinsurance subsidiaries carried at cost that are eliminated on consolidation. (4) Included in insurance contract liabilities on the consolidated balance sheet. (5) Corporate and eliminations includes the Fairfax holding company, subsidiary intermediate holding companies, and consolidating and eliminating entries. The most significant of those entries are the elimination of intercompany reinsurance provided by Group Re, and reinsurance provided by Odyssey Group and Allied World to the primary insurers. |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Expenses | |
Schedule of losses on claims, net, operating expenses and other expenses | Losses on claims, net, operating expenses and other expenses for the years ended December 31 were comprised as follows: 2021 2020 Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Losses and loss adjustment expenses, property and casualty 10,272.9 — 10,272.9 8,954.5 — 8,954.5 Cost of sales — 2,987.5 2,987.5 — 2,997.6 2,997.6 Wages and salaries (2) 1,547.1 761.3 2,308.4 1,359.1 632.4 1,991.5 Depreciation, amortization and impairment charges 291.0 639.4 930.4 234.6 517.5 752.1 Employee benefits 345.3 116.9 462.2 293.0 105.2 398.2 Premium taxes 285.9 — 285.9 240.3 — 240.3 Information technology costs 216.3 40.7 257.0 194.4 33.0 227.4 Audit, legal and tax professional fees 159.7 43.4 203.1 141.0 64.0 205.0 Repairs, maintenance and utilities 13.2 144.2 157.4 12.7 110.0 122.7 Share-based payments to directors and employees 118.2 18.3 136.5 103.6 5.9 109.5 Shipping and delivery 1.2 120.0 121.2 1.2 107.5 108.7 Marketing costs 33.4 70.1 103.5 27.6 67.5 95.1 Administrative expense and other (3) 402.4 145.1 547.5 299.0 218.3 517.3 Losses on claims, net, operating expenses and other expenses (4)(5) 13,686.6 5,086.9 18,773.5 11,861.0 4,858.9 16,719.9 Commissions, net (note 9) (6) 2,787.9 — 2,787.9 2,355.0 — 2,355.0 Interest expense (note 15) (6) 373.6 140.3 513.9 305.3 170.6 475.9 16,848.1 5,227.2 22,075.3 14,521.3 5,029.5 19,550.8 (1) Includes the Life insurance and Run-off reporting segment and Corporate and Other. (2) Includes the benefit of COVID-19 related government wage assistance of $62.1 (2020 - $123.8 ) recorded by the non-insurance companies as a reduction of other expenses in the consolidated statement of earnings. (3) Includes the benefit of COVID-19 lease concessions and government rent subsidies of $28.9 (2020 - $15.8 ), primarily at the non-insurance companies. (4) Expenses of the insurance and reinsurance companies, excluding commissions, net and interest expense, are included in losses on claims, net and operating expenses in the consolidated statement of earnings. (5) Expenses of the non-insurance companies, excluding commissions, net and interest expense, are included in other expenses in the consolidated statement of earnings. (6) Presented as separate lines in the consolidated statement of earnings. |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplementary Cash Flow Information | |
Schedule of supplemental balance sheet disclosures | Cash, cash equivalents and bank overdrafts as presented in the consolidated statements of cash flows excludes restricted cash and cash equivalents that are amounts primarily required to be maintained on deposit with various regulatory authorities to support the operations of the property and casualty insurance and reinsurance subsidiaries. Cash equivalents are comprised of treasury bills and other eligible bills. December 31, 2021 Unrestricted cash and cash equivalents included in the Cash and cash equivalents included on consolidated statement of cash flows Restricted cash and cash equivalents the consolidated balance sheet Cash Cash Cash Cash equivalents Total Cash equivalents Total Cash equivalents Total Holding company cash and investments 129.9 336.0 465.9 — — — 129.9 336.0 465.9 Holding company assets pledged for derivative obligations — 46.8 46.8 — — — — 46.8 46.8 Subsidiary cash and short term investments 5,259.2 5,777.6 11,036.8 484.6 761.8 1,246.4 5,743.8 6,539.4 12,283.2 Subsidiary assets pledged for derivative obligations — 74.0 74.0 — — — — 74.0 74.0 Fairfax India 35.1 26.8 61.9 1.6 13.0 14.6 36.7 39.8 76.5 5,424.2 6,261.2 11,685.4 486.2 774.8 1,261.0 5,910.4 7,036.0 12,946.4 December 31, 2020 Unrestricted cash and cash equivalents included in the consolidated statement Cash and cash equivalents included on of cash flows Restricted cash and cash equivalents the consolidated balance sheet Cash Cash Cash Cash equivalents Total Cash equivalents Total Cash equivalents Total Holding company cash and investments 81.9 192.3 274.2 5.8 — 5.8 87.7 192.3 280.0 Subsidiary cash and short term investments 2,736.0 1,398.6 4,134.6 349.4 402.5 751.9 3,085.4 1,801.1 4,886.5 Fairfax India 36.0 22.3 58.3 31.9 — 31.9 67.9 22.3 90.2 2,853.9 1,613.2 4,467.1 387.1 402.5 789.6 3,241.0 2,015.7 5,256.7 |
Schedule of cash flow, supplemental disclosures | Details of certain cash flows included in the consolidated statement of cash flows for the years ended December 31 were as follows: 2021 2020 Net (purchases) sales of securities classified at FVTPL Short term investments (767.1) (2,138.1) Bonds 2,545.7 287.2 Preferred stocks (37.3) (24.5) Common stocks 477.2 18.4 Net derivatives and other invested assets 395.9 (479.2) 2,614.4 (2,336.2) Changes in operating assets and liabilities Net increase in restricted cash and cash equivalents (472.6) (187.8) Provision for losses and loss adjustment expenses 3,692.0 1,884.3 Provision for unearned premiums 2,152.2 1,243.2 Provision for life policy benefits (167.9) — Insurance contract receivables (1,152.9) (496.7) Insurance contract payables 1,079.8 441.9 Recoverable from reinsurers (1,580.0) (898.8) Other receivables (96.7) 104.9 Accounts payable and accrued liabilities 291.1 (45.4) Other (758.1) (172.4) 2,986.9 1,873.2 Net interest and dividends received Interest and dividends received 865.7 789.8 Interest paid on borrowings (366.7) (370.4) Interest paid on lease liabilities (54.8) (62.4) 444.2 357.0 Net income taxes paid (288.7) (63.3) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Schedule of related parties | 2021 2020 Salaries and other short-term employee benefits 10.8 10.9 Share-based payments 4.7 3.5 15.5 14.4 Compensation for the company’s Board of Directors for the years ended December 31 was as follows: 2021 2020 Retainers and fees 1.5 1.1 Share-based payments 0.4 0.6 1.9 1.7 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subsidiaries. | |
Disclosure of interests in subsidiaries | Fairfax's ownership (100% other than as December 31, 2021 Domicile shown below) Property and casualty insurance and reinsurance Northbridge Financial Corporation (Northbridge) Canada Odyssey Group Holdings, Inc. (Odyssey Group) United States 90.0 % Crum & Forster Holdings Corp. (Crum & Forster) United States Zenith National Insurance Corp. (Zenith National) United States Brit Limited (Brit) United Kingdom 86.2 % Allied World Assurance Company Holdings, Ltd (Allied World) Bermuda 70.9 % Fairfax Central and Eastern Europe, which consists of: Polskie Towarzystwo Reasekuracji Spólka Akcyjna (Polish Re) Poland Colonnade Insurance S.A. (Colonnade Insurance) Luxembourg FFH Ukraine Holdings (Fairfax Ukraine), which consists of: Ukraine 70.0 % ARX Insurance Company (ARX Insurance) Ukraine Private Joint Stock Company Insurance Company Universalna (Universalna) Ukraine Fairfax Latin America, which consists of: Fairfax Brasil Seguros Corporativos S.A. (Fairfax Brasil) Brazil La Meridional Compañía Argentina de Seguros S.A. (La Meridional Argentina) Argentina SBS Seguros Colombia S.A. (Southbridge Colombia) Colombia SBI Seguros Uruguay S.A. (Southbridge Uruguay) Uruguay Southbridge Compañía de Seguros Generales S.A. (Southbridge Chile) Chile Bryte Insurance Company Ltd (Bryte Insurance) South Africa Eurolife FFH General Insurance Single Member S.A. (Eurolife General) Greece 80.0 % Group Re, which underwrites business in: CRC Reinsurance Limited (CRC Re) Barbados Wentworth Insurance Company Ltd. (Wentworth) Barbados Connemara Reinsurance Company Ltd. (Connemara) Barbados Fairfax Asia, which consists of: Falcon Insurance Company (Hong Kong) Limited (Falcon) Hong Kong The Pacific Insurance Berhad (Pacific Insurance) Malaysia 85.0 % PT Asuransi Multi Artha Guna Tbk (AMAG Insurance) Indonesia 80.3 % Fairfirst Insurance Limited (Fairfirst Insurance) Sri Lanka 78.0 % Singapore Reinsurance Corporation Limited (Singapore Re) Singapore Life insurance and Run-off Eurolife FFH Life Insurance Group Holdings S.A. (Eurolife) Greece 80.0 % Run-off , which is principally comprised of: U.S. Run-off: TIG Insurance Company (TIG Insurance) United States Investment management Hamblin Watsa Investment Counsel Ltd. (Hamblin Watsa) Canada Fairfax's December 31, 2021 Domicile ownership Primary business Non-insurance companies Restaurants and retail Recipe Unlimited Corporation (Recipe) Canada 38.5 % (1) Franchisor, owner and operator of restaurants Sporting Life Group Limited, which owns: Canada 71.4 % Invests in retail businesses 100.0% of Sporting Life Inc. (Sporting Life) Canada 71.4 % Retailer of sporting goods and sports apparel 100.0% of Golf Town Limited (Golf Town) Canada 71.4 % Retailer of golf equipment, apparel and accessories Fairfax India Fairfax India Holdings Corporation (Fairfax India) (2) Canada 30.1 % (2) Invests in public and private Indian businesses Thomas Cook India Thomas Cook (India) Limited (Thomas Cook India), which owns: India 66.8 % Provider of integrated travel and travel-related financial services 100.0% of Sterling Holiday Resorts Limited (Sterling Resorts) India 66.8 % Owner and operator of holiday resorts Other AGT Food and Ingredients Inc. (AGT) Canada 58.0 % Originator, processor and distributor of value-added pulses and staple foods Dexterra Group Inc. (Dexterra Group) Canada 48.8 % Provider of Infrastructure support services Boat Rocker Media Inc. (Boat Rocker) Canada 45.0 % (3) Entertainment content creator, producer and distributor Farmers Edge Inc. (Farmers Edge) Canada 61.4 % Provider of advanced digital tools for agriculture (1) The company owns multiple voting shares and subordinate voting shares of Recipe that give it voting rights of 61.0 %. (2) The company owns multiple voting shares and subordinate voting shares of Fairfax India that give it voting rights of 93.9 %. Fairfax India owns an equity interest of 89.5 % in National Commodities Management Services Limited (NCML), a provider of agricultural commodities storage. (3) The company has voting rights of 56.1 % due to Boat Rocker’s issuance of non-voting shares to non-controlling interests. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Customer and broker relationships | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible asset useful lives | 8 years |
Customer and broker relationships | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible asset useful lives | 20 years |
Computer software | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible asset useful lives | 3 years |
Computer software | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Intangible asset useful lives | 15 years |
Restricted Share Units | |
Disclosure of detailed information about intangible assets [line items] | |
Restricted share vesting period | 15 years |
Cash and Investments - Total in
Cash and Investments - Total investments, net of derivative obligations (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Investments | ||
Holding company cash and investments as presented on the consolidated balance sheet | $ 1,478.3 | $ 1,252.2 |
Derivative obligations (note 7) | (32.1) | (22.8) |
Holding company cash and investments, net | 1,446.2 | 1,229.4 |
Portfolio investments as presented on the consolidated balance sheet | 51,697.4 | 42,108.6 |
Derivative obligations (note 7) | (120.8) | (166.6) |
Portfolio investments cash and investments, net | 51,576.6 | 41,942 |
Total investments, net of derivative obligations | 53,022.8 | 43,171.4 |
Restricted cash and cash equivalents | 1,261 | 789.6 |
Investments in limited partnerships | 1,971 | 1,935.9 |
Cash and cash equivalents | ||
Cash and Investments | ||
Restricted cash and cash equivalents | 1,261 | 789.6 |
Holding company | ||
Cash and Investments | ||
Cash and investments | 1,367.4 | 1,172.7 |
Holding company | Cash and cash equivalents | ||
Cash and Investments | ||
Cash and investments | 465.9 | 280 |
Holding company | Short term investments | ||
Cash and Investments | ||
Cash and investments | 216.9 | 159.2 |
Holding company | Bonds | ||
Cash and Investments | ||
Cash and investments | 242.6 | 457.2 |
Holding company | Preferred stocks | ||
Cash and Investments | ||
Cash and investments | 14 | 4.7 |
Holding company | Common stocks | ||
Cash and Investments | ||
Cash and investments | 137.5 | 123.7 |
Holding company | Derivatives | ||
Cash and Investments | ||
Cash and investments | 290.5 | 147.9 |
Holding company | Assets pledged for derivative obligations | ||
Cash and Investments | ||
Assets pledged for derivative obligations | 110.9 | 79.5 |
Holding company | Assets pledged for derivative obligations | Cash equivalents | ||
Cash and Investments | ||
Assets pledged for derivative obligations | 46.8 | |
Holding company | Assets pledged for derivative obligations | Short term investments | ||
Cash and Investments | ||
Assets pledged for derivative obligations | 64.1 | 79.5 |
Portfolio investments | ||
Cash and Investments | ||
Cash and investments | 49,511.8 | 40,060.4 |
Assets pledged for derivative obligations | 119.6 | 196.4 |
Portfolio investments as presented on the consolidated balance sheet | 51,697.4 | 42,108.6 |
Restricted cash and cash equivalents | 1,246.4 | 751.9 |
Portfolio investments | Fairfax India Holdings Corporation (Fairfax India) | ||
Cash and Investments | ||
Cash and investments | 2,066 | 1,851.8 |
Portfolio investments | Cash and cash equivalents | ||
Cash and Investments | ||
Cash and investments | 12,283.2 | 4,886.5 |
Portfolio investments | Cash equivalents | Fairfax India Holdings Corporation (Fairfax India) | ||
Cash and Investments | ||
Cash and investments | 76.5 | 90.2 |
Portfolio investments | Short term investments | ||
Cash and Investments | ||
Cash and investments | 9,516.3 | 8,311.3 |
Portfolio investments | Short term investments | Fairfax India Holdings Corporation (Fairfax India) | ||
Cash and Investments | ||
Cash and investments | 6.2 | |
Portfolio investments | Bonds | ||
Cash and Investments | ||
Cash and investments | 14,091.2 | 15,734.6 |
Portfolio investments | Bonds | Fairfax India Holdings Corporation (Fairfax India) | ||
Cash and Investments | ||
Cash and investments | 199.8 | 21 |
Portfolio investments | Preferred stocks | ||
Cash and Investments | ||
Cash and investments | 2,405.9 | 605.2 |
Portfolio investments | Common stocks | ||
Cash and Investments | ||
Cash and investments | 5,468.9 | 4,599.1 |
Portfolio investments | Common stocks | Fairfax India Holdings Corporation (Fairfax India) | ||
Cash and Investments | ||
Cash and investments | 434.6 | 412.3 |
Portfolio investments | Investments in associates | ||
Cash and Investments | ||
Cash and investments | 4,755.1 | 4,381.8 |
Portfolio investments | Investments in associates | Fairfax India Holdings Corporation (Fairfax India) | ||
Cash and Investments | ||
Cash and investments | 1,348.9 | 1,328.3 |
Portfolio investments | Investment in associate held for sale | ||
Cash and Investments | ||
Cash and investments | 729.5 | |
Portfolio investments | Derivatives | ||
Cash and Investments | ||
Cash and investments | 291.3 | 234.8 |
Portfolio investments | Other invested assets | ||
Cash and Investments | ||
Cash and investments | 699.9 | 577.6 |
Portfolio investments | Assets pledged for derivative obligations | ||
Cash and Investments | ||
Assets pledged for derivative obligations | 119.6 | 196.4 |
Portfolio investments | Assets pledged for derivative obligations | Cash equivalents | ||
Cash and Investments | ||
Assets pledged for derivative obligations | 74 | |
Portfolio investments | Assets pledged for derivative obligations | Short term investments | ||
Cash and Investments | ||
Assets pledged for derivative obligations | 45.6 | 113.9 |
Portfolio investments | Assets pledged for derivative obligations | Bonds | ||
Cash and Investments | ||
Assets pledged for derivative obligations | $ 82.5 | |
Eurolife life insurance portfolio investments | ||
Cash and Investments | ||
Cash and investments | 3,098.2 | |
Eurolife life insurance portfolio investments | Cash and cash equivalents | ||
Cash and Investments | ||
Cash and investments | 741.5 | |
Eurolife life insurance portfolio investments | Short term investments | ||
Cash and Investments | ||
Cash and investments | 854.3 | |
Eurolife life insurance portfolio investments | Bonds | ||
Cash and Investments | ||
Cash and investments | 1,206.8 | |
Eurolife life insurance portfolio investments | Common stocks | ||
Cash and Investments | ||
Cash and investments | 148.1 | |
Eurolife life insurance portfolio investments | Investments in associates | ||
Cash and Investments | ||
Cash and investments | $ 147.5 |
Cash and Investments - Assets p
Cash and Investments - Assets pledged to third parties (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets pledged to third parties | ||
Cash and Investments | ||
Financial assets pledged as liabilities | $ 6,582 | $ 6,026.7 |
Regulatory deposits | ||
Cash and Investments | ||
Financial assets pledged as liabilities | 5,147.1 | 4,781 |
Security for reinsurance and other | ||
Cash and Investments | ||
Financial assets pledged as liabilities | $ 1,434.9 | $ 1,245.7 |
Cash and Investments - Fixed In
Cash and Investments - Fixed Income Maturity Profile (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Investments | ||
Bonds with call features | $ 4,063 | $ 7,155 |
Bonds with put features | 77.2 | 1.3 |
Bonds with call and put features | 467.8 | 1,075.8 |
U.S. treasury bond forward contracts | ||
Cash and Investments | ||
Notional amount | 1,691.3 | $ 330.8 |
First mortgage loans | ||
Cash and Investments | ||
Net purchases of first mortgage loans | 826.9 | |
Short to mid-dated high quality corporate bonds | ||
Cash and Investments | ||
Net proceeds | 3,948.5 | |
Bonds, Canadian government | ||
Cash and Investments | ||
Net purchases of Canadian government bonds | $ 617.3 |
Cash and Investments - Schedule
Cash and Investments - Schedule of Fixed Income Maturity (Details) - Bonds - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Investments | ||
Amortized cost | $ 14,221.1 | $ 15,419.9 |
Fair value | $ 14,533.6 | $ 16,295.3 |
Pre-tax effective interest rate | 2.70% | 3.20% |
Due in 1 year or less | ||
Cash and Investments | ||
Amortized cost | $ 6,022.8 | $ 4,968.1 |
Fair value | 5,946.5 | 4,935.3 |
Due after 1 year through 5 years | ||
Cash and Investments | ||
Amortized cost | 6,674.2 | 9,378.4 |
Fair value | 6,950.1 | 10,096.9 |
Due after 5 years through 10 years | ||
Cash and Investments | ||
Amortized cost | 534 | 654.2 |
Fair value | 531.3 | 718.5 |
Due after 10 years | ||
Cash and Investments | ||
Amortized cost | 990.1 | 419.2 |
Fair value | $ 1,105.7 | $ 544.6 |
Cash and Investments - Fair val
Cash and Investments - Fair value hierarchy (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Investments | |||
Assets | $ 86,645.4 | $ 74,054 | |
Derivative obligations (note 7) | $ (65,330.1) | $ (56,526.7) | |
Percentage of assets classified as level 1, 2, and 3 | 100.00% | 100.00% | |
Restricted cash and cash equivalents | $ 1,261 | $ 789.6 | |
Cash and cash equivalents. | |||
Cash and Investments | |||
Restricted cash and cash equivalents | 1,261 | 789.6 | |
Short term investments | |||
Cash and Investments | |||
Assets | 9,849.1 | 8,663.9 | |
Bonds | |||
Cash and Investments | |||
Assets | 14,533.6 | 16,295.3 | |
Preferred stocks | |||
Cash and Investments | |||
Assets | 2,419.9 | 609.9 | |
Common stocks. | |||
Cash and Investments | |||
Assets | $ 6,041 | $ 5,135.1 | |
Quoted prices (Level 1) | |||
Cash and Investments | |||
Percentage of assets classified as level 1, 2, and 3 | 52.30% | 43.70% | |
Quoted prices (Level 1) | Short term investments | |||
Cash and Investments | |||
Assets | $ 8,444.3 | $ 8,251 | |
Quoted prices (Level 1) | Preferred stocks | |||
Cash and Investments | |||
Assets | 13.5 | 10.3 | |
Quoted prices (Level 1) | Common stocks. | |||
Cash and Investments | |||
Assets | $ 3,140.1 | $ 2,538.4 | |
Significant other observable inputs (Level 2) | |||
Cash and Investments | |||
Percentage of assets classified as level 1, 2, and 3 | 29.90% | 42.20% | |
Significant other observable inputs (Level 2) | Short term investments | |||
Cash and Investments | |||
Assets | $ 1,404.8 | $ 412.9 | |
Significant other observable inputs (Level 2) | Bonds | |||
Cash and Investments | |||
Assets | 11,737.8 | 14,521.1 | |
Significant other observable inputs (Level 2) | Preferred stocks | |||
Cash and Investments | |||
Assets | 304.6 | 12.2 | |
Significant other observable inputs (Level 2) | Common stocks. | |||
Cash and Investments | |||
Assets | 497.1 | 479.1 | |
Significant other observable inputs (Level 2) | Private placement debt securities | |||
Cash and Investments | |||
Assets | 1,659.4 | $ 775.4 | |
Significant unobservable inputs (Level 3) | |||
Cash and Investments | |||
Assets | $ 8,343.2 | ||
Percentage of assets classified as level 1, 2, and 3 | 17.80% | 14.10% | |
Significant unobservable inputs (Level 3) | Bonds | |||
Cash and Investments | |||
Assets | $ 2,795.8 | $ 1,774.2 | |
Significant unobservable inputs (Level 3) | Preferred stocks | |||
Cash and Investments | |||
Assets | 2,101.8 | 587.4 | |
Significant unobservable inputs (Level 3) | Common stocks. | |||
Cash and Investments | |||
Assets | 2,403.8 | 2,117.6 | |
Significant unobservable inputs (Level 3) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 1,041.8 | ||
Recurring fair value measurement | |||
Cash and Investments | |||
Assets | 46,918.8 | 36,731.8 | |
Investment in associates | 8,291.2 | 7,151.3 | |
Recurring fair value measurement | Derivative obligations | |||
Cash and Investments | |||
Derivative obligations (note 7) | (152.9) | (189.4) | |
Recurring fair value measurement | Cash and cash equivalents. | |||
Cash and Investments | |||
Assets | 12,946.4 | 5,256.7 | |
Recurring fair value measurement | Short term investments, Canadian government | |||
Cash and Investments | |||
Assets | 16.2 | 638.1 | |
Recurring fair value measurement | Short term investments, Canadian provincials | |||
Cash and Investments | |||
Assets | 535.8 | 1,002.9 | |
Recurring fair value measurement | Short term investments, U.S. treasury | |||
Cash and Investments | |||
Assets | 7,608.8 | 6,343.3 | |
Recurring fair value measurement | Short term investments, Other government | |||
Cash and Investments | |||
Assets | 1,424.4 | 501.6 | |
Recurring fair value measurement | Short term investments, Corporate and other | |||
Cash and Investments | |||
Assets | 263.9 | 178 | |
Recurring fair value measurement | Bonds, Canadian government | |||
Cash and Investments | |||
Assets | 614.6 | 16.5 | |
Recurring fair value measurement | Bonds, Canadian provincials | |||
Cash and Investments | |||
Assets | 45 | 49.9 | |
Recurring fair value measurement | Bonds, U.S. treasury | |||
Cash and Investments | |||
Assets | 3,957.9 | 3,058.4 | |
Recurring fair value measurement | Bonds, U.S. states and municipalities | |||
Cash and Investments | |||
Assets | 387.2 | 378.2 | |
Recurring fair value measurement | Bonds, Other government | |||
Cash and Investments | |||
Assets | 2,655 | 944 | |
Recurring fair value measurement | Bonds, Corporate and other | |||
Cash and Investments | |||
Assets | 6,873.9 | 11,848.3 | |
Recurring fair value measurement | Preferred stocks, Canadian | |||
Cash and Investments | |||
Assets | 110.2 | 105.2 | |
Recurring fair value measurement | Preferred stocks, U.S. | |||
Cash and Investments | |||
Assets | 40.6 | 17 | |
Recurring fair value measurement | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 2,269.1 | 487.7 | |
Recurring fair value measurement | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 1,596.3 | 1,092.7 | |
Recurring fair value measurement | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 1,785.2 | 1,515.9 | |
Recurring fair value measurement | Common stocks, Other | |||
Cash and Investments | |||
Assets | 2,659.5 | 2,526.5 | |
Recurring fair value measurement | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 1,281.7 | 960.3 | |
Recurring fair value measurement | Quoted prices (Level 1) | |||
Cash and Investments | |||
Assets | 24,544.4 | 16,056.4 | |
Investment in associates | 4,188.8 | 2,916.3 | |
Recurring fair value measurement | Quoted prices (Level 1) | Cash and cash equivalents. | |||
Cash and Investments | |||
Assets | 12,946.4 | 5,256.7 | |
Recurring fair value measurement | Quoted prices (Level 1) | Short term investments, Canadian government | |||
Cash and Investments | |||
Assets | 16.2 | 638.1 | |
Recurring fair value measurement | Quoted prices (Level 1) | Short term investments, Canadian provincials | |||
Cash and Investments | |||
Assets | 535.8 | 1,002.9 | |
Recurring fair value measurement | Quoted prices (Level 1) | Short term investments, U.S. treasury | |||
Cash and Investments | |||
Assets | 7,608.8 | 6,343.3 | |
Recurring fair value measurement | Quoted prices (Level 1) | Short term investments, Other government | |||
Cash and Investments | |||
Assets | 283.5 | 266.7 | |
Recurring fair value measurement | Quoted prices (Level 1) | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 13.5 | 10.3 | |
Recurring fair value measurement | Quoted prices (Level 1) | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 1,104.2 | 802.5 | |
Recurring fair value measurement | Quoted prices (Level 1) | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 597.9 | 485.1 | |
Recurring fair value measurement | Quoted prices (Level 1) | Common stocks, Other | |||
Cash and Investments | |||
Assets | 1,438 | 1,250.8 | |
Recurring fair value measurement | Quoted prices (Level 1) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 0.1 | ||
Recurring fair value measurement | Significant other observable inputs (Level 2) | |||
Cash and Investments | |||
Assets | 14,031.2 | 15,498.6 | |
Investment in associates | 106.8 | 175.2 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Derivative obligations | |||
Cash and Investments | |||
Derivative obligations (note 7) | (88.5) | (164.1) | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Short term investments, Other government | |||
Cash and Investments | |||
Assets | 1,140.9 | 234.9 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Short term investments, Corporate and other | |||
Cash and Investments | |||
Assets | 263.9 | 178 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Bonds, Canadian government | |||
Cash and Investments | |||
Assets | 614.6 | 16.5 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Bonds, Canadian provincials | |||
Cash and Investments | |||
Assets | 45 | 49.9 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Bonds, U.S. treasury | |||
Cash and Investments | |||
Assets | 3,957.9 | 3,058.4 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Bonds, U.S. states and municipalities | |||
Cash and Investments | |||
Assets | 387.2 | 378.2 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Bonds, Other government | |||
Cash and Investments | |||
Assets | 2,655 | 944 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Bonds, Corporate and other | |||
Cash and Investments | |||
Assets | 4,078.1 | 10,074.1 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Preferred stocks, Canadian | |||
Cash and Investments | |||
Assets | 16.6 | 12.2 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 288 | ||
Recurring fair value measurement | Significant other observable inputs (Level 2) | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 188.4 | 108.7 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 32 | 32 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Common stocks, Other | |||
Cash and Investments | |||
Assets | 276.7 | 338.4 | |
Recurring fair value measurement | Significant other observable inputs (Level 2) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 175.4 | 237.4 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | |||
Cash and Investments | |||
Assets | 8,343.2 | 5,176.8 | |
Investment in associates | 3,995.6 | 4,059.8 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Derivative obligations | |||
Cash and Investments | |||
Derivative obligations (note 7) | (64.4) | (25.3) | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Bonds, Corporate and other | |||
Cash and Investments | |||
Assets | 2,795.8 | 1,774.2 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Preferred stocks, Canadian | |||
Cash and Investments | |||
Assets | 93.6 | 93 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Preferred stocks, U.S. | |||
Cash and Investments | |||
Assets | 40.6 | 17 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 1,967.6 | 477.4 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 303.7 | 181.5 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 1,155.3 | 998.8 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Common stocks, Other | |||
Cash and Investments | |||
Assets | 944.8 | 937.3 | |
Recurring fair value measurement | Significant unobservable inputs (Level 3) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | $ 1,106.2 | $ 722.9 | |
Go Digit Infoworks Services Private Limited | |||
Cash and Investments | |||
Ownership percentage | 49.00% | ||
Go Digit Infoworks Services Private Limited | Non-insurance companies. | |||
Cash and Investments | |||
Ownership percentage | 49.00% |
Cash and Investments - Changes
Cash and Investments - Changes in Level 3 financial assets (Details) $ in Millions, ₨ in Billions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2021INR (₨) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021INR (₨) | Jun. 30, 2021INR (₨) | |
Changes in fair value measurement, assets | ||||||
Acquisitions of subsidiaries (note 23) | $ 7.5 | $ 92.9 | ||||
Net unrealized foreign currency translation losses on foreign operations | (199.5) | (139.7) | ||||
Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Balance - January 1 | 5,176.8 | 4,935.1 | ||||
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 2,362.5 | 178.2 | ||||
Purchases | 1,860.2 | 1,290.1 | ||||
Acquisitions of subsidiaries (note 23) | 74.9 | |||||
Transfer into category | 150.5 | |||||
Sales and distributions | (1,164.9) | (894.3) | ||||
Transfer out of category | (112.7) | (193.7) | ||||
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | (4.1) | 17.9 | ||||
Deconsolidation of non-insurance subsidiary (note 23) | (156.5) | |||||
Balance - December 31 | 8,343.2 | 5,176.8 | ||||
Go Digit Infoworks Services Private Limited | ||||||
Changes in fair value measurement, assets | ||||||
Ownership percentage | 49.00% | 49.00% | ||||
Go Digit Insurance Limited | ||||||
Changes in fair value measurement, assets | ||||||
Proceeds from issuance of equity shares | $ 200 | ₨ 14.9 | ||||
Fair value of equity shares | $ 3,500 | ₨ 259.5 | ||||
Go Digit Insurance Limited | Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Fair value of equity shares | 122 | ₨ 9 | ||||
Net unrealized foreign currency translation losses on foreign operations | 1,490.3 | |||||
Limited partnerships and other | Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Balance - January 1 | 1,766.9 | 1,846.7 | ||||
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 450.6 | 155.9 | ||||
Purchases | 254.3 | 198.1 | ||||
Sales and distributions | (580.9) | (392.8) | ||||
Transfer out of category | (102) | (44.4) | ||||
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 0.2 | 3.4 | ||||
Balance - December 31 | 1,789.1 | 1,766.9 | ||||
Private placement debt securities | Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Balance - January 1 | 1,774.2 | 1,420.1 | ||||
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 69.1 | 99.3 | ||||
Purchases | 1,241.5 | 1,012.8 | ||||
Acquisitions of subsidiaries (note 23) | 47.5 | |||||
Transfer into category | 139.6 | |||||
Sales and distributions | (476.6) | (474.6) | ||||
Transfer out of category | (149.3) | |||||
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 0.5 | 12.5 | ||||
Deconsolidation of non-insurance subsidiary (note 23) | (146.6) | |||||
Balance - December 31 | 2,795.8 | 1,774.2 | ||||
Derivatives and other invested assets | Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Balance - January 1 | 697.6 | 764.3 | ||||
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 297.4 | (100.4) | ||||
Purchases | 115.5 | 44.2 | ||||
Acquisitions of subsidiaries (note 23) | 27.4 | |||||
Sales and distributions | (91.8) | |||||
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | (4.3) | (0.6) | ||||
Deconsolidation of non-insurance subsidiary (note 23) | (9.9) | |||||
Balance - December 31 | 1,041.8 | 697.6 | ||||
Private company preferred shares | Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Balance - January 1 | 587.4 | 569.2 | ||||
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 1,489.3 | (3) | ||||
Purchases | 32 | 20.7 | ||||
Sales and distributions | (7.2) | (0.1) | ||||
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 0.3 | 0.6 | ||||
Balance - December 31 | 2,101.8 | 587.4 | ||||
Common stocks. | Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Balance - January 1 | 239.9 | 205.6 | ||||
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 53.7 | 27.4 | ||||
Purchases | 216.9 | 14.3 | ||||
Transfer into category | 10.9 | |||||
Sales and distributions | (2.5) | (8) | ||||
Transfer out of category | (10.7) | |||||
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | (1.2) | 0.6 | ||||
Balance - December 31 | 507 | 239.9 | ||||
Private equity funds | Significant unobservable inputs (Level 3) | ||||||
Changes in fair value measurement, assets | ||||||
Balance - January 1 | 110.8 | 129.2 | ||||
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 2.4 | (1) | ||||
Sales and distributions | (5.9) | (18.8) | ||||
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 0.4 | 1.4 | ||||
Balance - December 31 | $ 107.7 | $ 110.8 |
Cash and Investments - Fair V_2
Cash and Investments - Fair Value Assets Measurement Techniques (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Cash and Investments | |||
Assets | $ 86,645.4 | $ 74,054 | |
Bonds | |||
Cash and Investments | |||
Assets | 14,533.6 | 16,295.3 | |
Recurring fair value measurement | |||
Cash and Investments | |||
Assets | 46,918.8 | 36,731.8 | |
Recurring fair value measurement | Private placement debt securities | Discounted cash flow | Bottom of range | |||
Cash and Investments | |||
Credit spread | 1.00% | ||
Recurring fair value measurement | Private placement debt securities | Discounted cash flow | Top of range | |||
Cash and Investments | |||
Credit spread | 9.90% | ||
Recurring fair value measurement | Mortgage loans | Discounted cash flow | Bottom of range | |||
Cash and Investments | |||
Credit spread | 1.90% | ||
Recurring fair value measurement | Mortgage loans | Discounted cash flow | Top of range | |||
Cash and Investments | |||
Credit spread | 7.60% | ||
Recurring fair value measurement | Private company preferred shares | Discounted cash flow | Bottom of range | |||
Cash and Investments | |||
Discount rate | 11.30% | ||
Long term growth rate | 6.00% | ||
Recurring fair value measurement | Private company preferred shares | Discounted cash flow | Top of range | |||
Cash and Investments | |||
Discount rate | 11.30% | ||
Long term growth rate | 6.00% | ||
Recurring fair value measurement | Private Placement Preferred Shares | Discounted cash flow | Bottom of range | |||
Cash and Investments | |||
Credit spread | 3.70% | ||
Recurring fair value measurement | Private Placement Preferred Shares | Discounted cash flow | Top of range | |||
Cash and Investments | |||
Credit spread | 3.70% | ||
Recurring fair value measurement | Common shares | Market comparable | Bottom of range | |||
Cash and Investments | |||
Book value multiple | 1.4 | ||
Recurring fair value measurement | Common shares | Market comparable | Top of range | |||
Cash and Investments | |||
Book value multiple | 1.4 | ||
Recurring fair value measurement | Private equity funds | Market comparable | Bottom of range | |||
Cash and Investments | |||
Price/Earnings multiple | 10 | ||
Recurring fair value measurement | Private equity funds | Market comparable | Top of range | |||
Cash and Investments | |||
Price/Earnings multiple | 10 | ||
Recurring fair value measurement | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 1,281.7 | 960.3 | |
Recurring fair value measurement | Investment property | Income capitalization | Bottom of range | |||
Cash and Investments | |||
Terminal capitalization rate | 5.80% | ||
Discount rate | 7.10% | ||
Market rent growth rate | 2.50% | ||
Recurring fair value measurement | Investment property | Income capitalization | Top of range | |||
Cash and Investments | |||
Terminal capitalization rate | 7.50% | ||
Discount rate | 8.80% | ||
Market rent growth rate | 3.00% | ||
Recurring fair value measurement | Investment property | Sales comparison | Bottom of range | |||
Cash and Investments | |||
Price per acre | $ 30,000 | ||
Recurring fair value measurement | Investment property | Sales comparison | Top of range | |||
Cash and Investments | |||
Price per acre | $ 125,000 | ||
Recurring fair value measurement | Warrants | Option pricing model | Bottom of range | |||
Cash and Investments | |||
Equity volatility | 19.30% | ||
Recurring fair value measurement | Warrants | Option pricing model | Top of range | |||
Cash and Investments | |||
Equity volatility | 75.10% | ||
Significant unobservable inputs (Level 3) | |||
Cash and Investments | |||
Assets | 8,343.2 | ||
Significant unobservable inputs (Level 3) | Bonds | |||
Cash and Investments | |||
Assets | 2,795.8 | 1,774.2 | |
Significant unobservable inputs (Level 3) | Private placement debt securities | Discounted cash flow | |||
Cash and Investments | |||
Assets | 1,001.7 | ||
Significant unobservable inputs (Level 3) | Private placement debt securities | Market approach | |||
Cash and Investments | |||
Assets | 1,659.4 | 775.4 | |
Significant unobservable inputs (Level 3) | Mortgage loans | Market approach | |||
Cash and Investments | |||
Assets | 1,659.4 | ||
Significant unobservable inputs (Level 3) | Other bonds | Various approach | |||
Cash and Investments | |||
Assets | 134.7 | ||
Significant unobservable inputs (Level 3) | Preferred Stocks | |||
Cash and Investments | |||
Assets | 2,101.8 | ||
Significant unobservable inputs (Level 3) | Common Stocks | |||
Cash and Investments | |||
Assets | 2,403.8 | ||
Significant unobservable inputs (Level 3) | Limited partnerships and other | Net asset value | |||
Cash and Investments | |||
Assets | 1,789.1 | ||
Significant unobservable inputs (Level 3) | Common shares | Market approach | |||
Cash and Investments | |||
Assets | 200 | ||
Significant unobservable inputs (Level 3) | Common shares | Market comparable | |||
Cash and Investments | |||
Assets | 83 | ||
Significant unobservable inputs (Level 3) | Private equity funds | Net asset value | |||
Cash and Investments | |||
Assets | 49.4 | ||
Significant unobservable inputs (Level 3) | Private equity funds | Market comparable | |||
Cash and Investments | |||
Assets | 58.3 | ||
Significant unobservable inputs (Level 3) | Other common stocks | Various approach | |||
Cash and Investments | |||
Assets | 224 | ||
Significant unobservable inputs (Level 3) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 1,041.8 | ||
Significant unobservable inputs (Level 3) | Investment property | Income capitalization | |||
Cash and Investments | |||
Assets | 507.9 | ||
Significant unobservable inputs (Level 3) | Investment property | Sales comparison | |||
Cash and Investments | |||
Assets | 69.5 | ||
Significant unobservable inputs (Level 3) | Warrants | Option pricing model | |||
Cash and Investments | |||
Assets | 259.2 | ||
Significant unobservable inputs (Level 3) | Other derivatives and other invested assets | Various approach | |||
Cash and Investments | |||
Assets | 205.2 | ||
Significant unobservable inputs (Level 3) | Recurring fair value measurement | |||
Cash and Investments | |||
Assets | 8,343.2 | 5,176.8 | |
Significant unobservable inputs (Level 3) | Recurring fair value measurement | Private company preferred shares | Market approach | |||
Cash and Investments | |||
Assets | 1,965.5 | ||
Significant unobservable inputs (Level 3) | Recurring fair value measurement | Private Placement Preferred Shares | Discounted cash flow | |||
Cash and Investments | |||
Assets | 71.2 | ||
Significant unobservable inputs (Level 3) | Recurring fair value measurement | Other preferred stocks | Various approach | |||
Cash and Investments | |||
Assets | 65.1 | ||
Significant unobservable inputs (Level 3) | Recurring fair value measurement | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | $ 1,106.2 | $ 722.9 |
Cash and Investments - Fair V_3
Cash and Investments - Fair Value Disclosures, Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Cash and Investments | ||
Assets | $ 86,645.4 | $ 74,054 |
Net asset value | ||
Cash and Investments | ||
Percentage of reasonably possible increase in unobservable input, assets | 10.00% | |
Equity volatility | ||
Cash and Investments | ||
Percentage of reasonably possible increase in unobservable input, assets | 10.00% | |
Discount rate | ||
Cash and Investments | ||
Percentage of reasonably possible increase in unobservable input, assets | 0.50% | |
Long term growth rate | ||
Cash and Investments | ||
Percentage of reasonably possible increase in unobservable input, assets | 0.25% | |
Limited partnerships and other - largest investment | Beverage manufacturing | Net asset value | ||
Cash and Investments | ||
Assets | 299.5 | |
Limited partnerships and other - largest investment | Industrials | Net asset value | ||
Cash and Investments | ||
Assets | $ 258.2 | 191.8 |
Limited partnerships and other - largest investment | Oil and gas extraction | Net asset value | ||
Cash and Investments | ||
Assets | 252.1 | $ 146.4 |
Limited partnerships and other - largest investment | Household appliance manufacturing | Net asset value | ||
Cash and Investments | ||
Assets | $ 192 | |
Limited partnerships and other | Net asset value | ||
Cash and Investments | ||
Number of investments | 47 | 51 |
Common stocks | ||
Cash and Investments | ||
Assets | $ 6,041 | $ 5,135.1 |
Probability of weighted average valuation percentage | 85.00% | |
Percentage of fair value on common shares Investments | 15.00% | |
Discounted cash flow | Limited partnerships and other | ||
Cash and Investments | ||
Increase in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | $ 178.9 | |
Discounted cash flow | Private equity funds | ||
Cash and Investments | ||
Increase in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | $ 4.9 | |
Discounted cash flow | Private placement debt securities | ||
Cash and Investments | ||
Number of investments | 12 | 10 |
Increase in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | $ 11.3 | |
Decrease in fair value measurement due to change in multiple unobservable inputs to reflect reasonably possible alternative assumptions, assets | 26.5 | |
Discounted cash flow | Private placement debt securities - largest investment | ||
Cash and Investments | ||
Assets | 535.1 | $ 438.6 |
Discounted cash flow | Private company preferred shares | Discount rate | ||
Cash and Investments | ||
Increase in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | 258 | |
Decrease in fair value measurement due to change in multiple unobservable inputs to reflect reasonably possible alternative assumptions, assets | 212.1 | |
Discounted cash flow | Private company preferred shares | Long term growth rate | ||
Cash and Investments | ||
Increase in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | 80.4 | |
Decrease in fair value measurement due to change in multiple unobservable inputs to reflect reasonably possible alternative assumptions, assets | 73.2 | |
Discounted cash flow | Private placement preferred shares | Credit spread | ||
Cash and Investments | ||
Increase in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | 8.6 | |
Decrease in fair value measurement due to change in multiple unobservable inputs to reflect reasonably possible alternative assumptions, assets | $ 8 | |
Market approach | Private placement debt securities | ||
Cash and Investments | ||
Number of investments | 36 | 22 |
Market approach | Private placement debt securities - largest investment | ||
Cash and Investments | ||
Assets | $ 149.4 | $ 111.5 |
Option pricing model | Warrants | ||
Cash and Investments | ||
Increase in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | 25.5 | |
Decrease in fair value measurement due to change in multiple unobservable inputs to reflect reasonably possible alternative assumptions, assets | $ 26 |
Cash and Investments - Interest
Cash and Investments - Interest and dividends and share of profit (losses) of associates (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | ||
Cash and short term investments | $ 26.8 | $ 104.1 |
Bonds | 488.5 | 557.4 |
Derivatives and other invested assets | 53.1 | 55 |
Interest income | 568.4 | 716.5 |
Dividends: | ||
Dividend income | 108.2 | 77.8 |
Investment expenses | (35.8) | (25.1) |
Interest and dividends | 640.8 | 769.2 |
Share of profit (loss) of associates | 402 | (112.8) |
Non-insurance companies. | ||
Dividends: | ||
Impairments on associates and joint ventures | 0 | 240.3 |
Preferred stocks | ||
Dividends: | ||
Dividend income | 14.1 | 4.3 |
Common stocks. | ||
Dividends: | ||
Dividend income | 94.1 | 73.5 |
Associates | ||
Dividends: | ||
Share of profit (loss) of associates | $ 402 | $ (112.8) |
Cash and Investments - Net gain
Cash and Investments - Net gains (losses) on investments (Details) $ in Millions, ₨ in Billions | Dec. 08, 2020USD ($) | Jun. 30, 2021 | Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021INR (₨) | Dec. 31, 2020USD ($) |
Cash and Investments | ||||||
Net gains (losses) on investments | $ 3,445.1 | $ 313.1 | ||||
Proceeds from sales of interests in associates | 809.2 | 139.8 | ||||
Share of profit (loss) of associates | 402 | (112.8) | ||||
Proceeds from issue of bonds, notes and debentures | 2,545.7 | 287.2 | ||||
Davos Brands | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | $ 19.3 | |||||
Proceeds from sales of interests in associates | $ 58.6 | |||||
Go Digit Infoworks Services Private Limited | ||||||
Cash and Investments | ||||||
Ownership percentage | 49.00% | |||||
Helios Fairfax Partners Corporation | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | $ (61.5) | |||||
IIFL Finance Limited | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 42 | |||||
Proceeds from sales of interests in associates | 113.7 | ₨ 8.6 | ||||
Associates | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 56.4 | 8.6 | ||||
Net gains (losses) on investments | 56.4 | 8.6 | ||||
Share of profit (loss) of associates | 402 | (112.8) | ||||
Associates | IIFL Finance Limited | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 42 | |||||
Proceeds from sales of interests in associates | 113.7 | ₨ 8.6 | ||||
Subsidiaries | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 190.3 | (78.5) | ||||
Net gains (losses) on investments | 190.3 | (78.5) | ||||
Other | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 122.1 | (19.9) | ||||
Net change in unrealized gains (losses) | (178.7) | 8.5 | ||||
Net gains (losses) on investments | (56.6) | (11.4) | ||||
Bonds | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 338.2 | 112.1 | ||||
Net change in unrealized gains (losses) | (523.5) | 593.5 | ||||
Net gains (losses) on investments | (185.3) | 705.6 | ||||
Preferred stocks | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 2.2 | |||||
Net change in unrealized gains (losses) | 1,509.5 | 10 | ||||
Net gains (losses) on investments | 1,511.7 | 10 | ||||
Common stocks. | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 488 | 243.7 | ||||
Net change in unrealized gains (losses) | 852.3 | (212.4) | ||||
Net gains (losses) on investments | 1,340.3 | 31.3 | ||||
Debt and equity securities | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 828.4 | 355.8 | ||||
Net change in unrealized gains (losses) | 1,838.3 | 391.1 | ||||
Net gains (losses) on investments | 2,666.7 | 746.9 | ||||
Derivatives and foreign currency net gains (losses) | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 1,463 | (669.1) | ||||
Net change in unrealized gains (losses) | 1,982.1 | 982.2 | ||||
Net gains (losses) on investments | 3,445.1 | 313.1 | ||||
Derivatives | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 330.3 | (869.4) | ||||
Net change in unrealized gains (losses) | 351.1 | 461.3 | ||||
Net gains (losses) on investments | 681.4 | (408.1) | ||||
Equity total return swaps - short positions | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | (613.2) | |||||
Net change in unrealized gains (losses) | 84.6 | |||||
Net gains (losses) on investments | (528.6) | |||||
Equity total return swaps - long positions | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 439.6 | 207.4 | ||||
Net change in unrealized gains (losses) | (32.1) | 118.2 | ||||
Net gains (losses) on investments | 407.5 | 325.6 | ||||
Equity warrants and options | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 15.8 | (1.6) | ||||
Net change in unrealized gains (losses) | 98.4 | (54.7) | ||||
Net gains (losses) on investments | 114.2 | (56.3) | ||||
CPI-linked derivatives | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | (108.5) | (300) | ||||
Net change in unrealized gains (losses) | 113.8 | 286.1 | ||||
Net gains (losses) on investments | 5.3 | (13.9) | ||||
U.S. treasury bond forwards | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 26 | (103) | ||||
Net change in unrealized gains (losses) | (0.3) | 1 | ||||
Net gains (losses) on investments | 25.7 | (102) | ||||
Other derivative contracts | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | (42.6) | (59) | ||||
Net change in unrealized gains (losses) | 171.3 | 26.1 | ||||
Net gains (losses) on investments | 128.7 | (32.9) | ||||
Gains on derivatives | 109.9 | |||||
Foreign currency net gains (losses) | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | (64.5) | (65.7) | ||||
Net change in unrealized gains (losses) | (28.6) | 121.3 | ||||
Net gains (losses) on investments | (93.1) | 55.6 | ||||
Investing activities | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | (43.5) | (51) | ||||
Net change in unrealized gains (losses) | (78.8) | 156.4 | ||||
Net gains (losses) on investments | (122.3) | 105.4 | ||||
Underwriting activities | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | 41.2 | (16.8) | ||||
Net gains (losses) on investments | 41.2 | (16.8) | ||||
Foreign currency contracts | ||||||
Cash and Investments | ||||||
Net realized gains (losses) | (62.2) | 2.1 | ||||
Net change in unrealized gains (losses) | 50.2 | (35.1) | ||||
Net gains (losses) on investments | (12) | $ (33) | ||||
Go Digit Infoworks Services Private Limited | Preferred stocks | ||||||
Cash and Investments | ||||||
Net gains (losses) on investments | $ 1,490.3 |
Investments in Associates - Sum
Investments in Associates - Summary (Details) - USD ($) $ in Millions | Jul. 14, 2021 | Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Investments in Associates | |||||
Share of profit (loss) of associates | $ 402 | $ (112.8) | |||
Investments in associates, including investment in associate held for sale | |||||
Investments in Associates | |||||
Fair value of investments in associates | 8,291.2 | 7,151.3 | |||
Investments in associates | |||||
Investments in Associates | |||||
Fair value of investments in associates | 8,291.2 | 7,151.3 | |||
Portfolio investments | |||||
Investments in Associates | |||||
Fair value of investments in associates | 5,671.9 | 4,154.3 | |||
Portfolio investments | Investments in associates | |||||
Investments in Associates | |||||
Fair value of investments in associates | 5,671.9 | 4,154.3 | |||
Portfolio investments | Investment in associate held for sale | |||||
Investments in Associates | |||||
Fair value of investments in associates | 729.5 | ||||
Portfolio investments | Fairfax India investments in associates | |||||
Investments in Associates | |||||
Fair value of investments in associates | 2,619.3 | 2,267.5 | |||
Total | Investments in associates, including investment in associate held for sale | |||||
Investments in Associates | |||||
Carrying value | 6,104 | 6,439.6 | |||
Total | Investments in associates | |||||
Investments in Associates | |||||
Carrying value | 6,104 | 6,439.6 | |||
Share of profit (loss) of associates | 402 | (112.8) | |||
Total | Portfolio investments | Investments in associates | |||||
Investments in Associates | |||||
Carrying value | 4,755.1 | 4,381.8 | |||
Total | Portfolio investments | Investment in associate held for sale | |||||
Investments in Associates | |||||
Carrying value | 729.5 | ||||
Total | Portfolio investments | Fairfax India investments in associates | |||||
Investments in Associates | |||||
Carrying value | 1,348.9 | 1,328.3 | |||
Associates and joint ventures | Investments in associates | |||||
Investments in Associates | |||||
Carrying value | 4,755.1 | 5,111.3 | |||
Fairfax India associates | Investments in associates | |||||
Investments in Associates | |||||
Carrying value | $ 1,348.9 | 1,328.3 | |||
Go Digit Infoworks Services Private Limited | |||||
Investments in Associates | |||||
Ownership percentage | 49.00% | ||||
Insurance and reinsurance | |||||
Investments in Associates | |||||
Fair value of investments in associates | 1,541.5 | ||||
Insurance and reinsurance | Total | |||||
Investments in Associates | |||||
Carrying value | 1,304.7 | ||||
Share of profit (loss) of associates | 119.3 | ||||
Insurance and reinsurance | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 1,304.7 | ||||
Insurance and reinsurance | Gulf Insurance Group K.S.C.P. | |||||
Investments in Associates | |||||
Ownership percentage | 43.70% | ||||
Fair value of investments in associates | $ 409.5 | ||||
Insurance and reinsurance | Gulf Insurance Group K.S.C.P. | Total | |||||
Investments in Associates | |||||
Carrying value | 380 | ||||
Share of profit (loss) of associates | 55.5 | ||||
Insurance and reinsurance | Gulf Insurance Group K.S.C.P. | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 380 | ||||
Insurance and reinsurance | Go Digit Infoworks Services Private Limited | |||||
Investments in Associates | |||||
Ownership percentage | 49.00% | 49.00% | |||
Fair value of investments in associates | $ 498.3 | $ 120.5 | |||
Insurance and reinsurance | Go Digit Infoworks Services Private Limited | Total | |||||
Investments in Associates | |||||
Carrying value | 79.1 | 41.8 | |||
Share of profit (loss) of associates | 5.3 | 8.8 | |||
Insurance and reinsurance | Go Digit Infoworks Services Private Limited | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 79.1 | $ 41.8 | |||
Insurance and reinsurance | Eurolife ERB Insurance Group Holdings S.A. | |||||
Investments in Associates | |||||
Ownership percentage | 80.00% | 50.00% | |||
Fair value of investments in associates | $ 457.9 | ||||
Insurance and reinsurance | Eurolife ERB Insurance Group Holdings S.A. | Total | |||||
Investments in Associates | |||||
Carrying value | 336.2 | ||||
Share of profit (loss) of associates | 6.1 | ||||
Insurance and reinsurance | Eurolife ERB Insurance Group Holdings S.A. | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 336.2 | ||||
Insurance and reinsurance | RiverStone Barbados | |||||
Investments in Associates | |||||
Ownership percentage | 60.00% | 60.00% | |||
Fair value of investments in associates | $ 605 | $ 729.5 | |||
Insurance and reinsurance | RiverStone Barbados | Total | |||||
Investments in Associates | |||||
Carrying value | 729.5 | ||||
Share of profit (loss) of associates | 113 | ||||
Insurance and reinsurance | RiverStone Barbados | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 729.5 | ||||
Insurance and reinsurance | Other Insurance and Reinsurance | |||||
Investments in Associates | |||||
Fair value of investments in associates | 191.3 | 233.6 | |||
Insurance and reinsurance | Other Insurance and Reinsurance | Total | |||||
Investments in Associates | |||||
Carrying value | 148.3 | 197.2 | |||
Share of profit (loss) of associates | 11.8 | (8.6) | |||
Insurance and reinsurance | Other Insurance and Reinsurance | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 148.3 | 197.2 | |||
Non-insurance | |||||
Investments in Associates | |||||
Fair value of investments in associates | 7,192.1 | 5,609.8 | |||
Share of profit (loss) of associates | 22.3 | (100.2) | |||
Non-insurance | Total | |||||
Investments in Associates | |||||
Carrying value | 5,496.6 | 5,134.9 | |||
Share of profit (loss) of associates | 329.4 | (232.1) | |||
Non-insurance | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 4,147.7 | 3,806.6 | |||
Non-insurance | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | $ 1,348.9 | 1,328.3 | |||
Non-insurance | IIFL Finance Limited | |||||
Investments in Associates | |||||
Ownership percentage | 22.30% | ||||
Non-insurance | India | |||||
Investments in Associates | |||||
Fair value of investments in associates | $ 3,196.3 | 2,706.5 | |||
Non-insurance | India | Total | |||||
Investments in Associates | |||||
Carrying value | 1,901.1 | 1,985.8 | |||
Share of profit (loss) of associates | 32.6 | (142) | |||
Non-insurance | India | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 552.2 | 657.5 | |||
Non-insurance | India | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | $ 1,348.9 | $ 1,328.3 | |||
Non-insurance | India | Bangalore International Airport Limited | |||||
Investments in Associates | |||||
Ownership percentage | 54.00% | 54.00% | |||
Fair value of investments in associates | $ 1,372.2 | $ 1,396.1 | |||
Non-insurance | India | Bangalore International Airport Limited | Total | |||||
Investments in Associates | |||||
Carrying value | 585.8 | 642.4 | |||
Share of profit (loss) of associates | (45.8) | (30.5) | |||
Non-insurance | India | Bangalore International Airport Limited | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | $ 585.8 | $ 642.4 | |||
Non-insurance | India | Quess | |||||
Investments in Associates | |||||
Ownership percentage | 31.00% | 33.20% | |||
Fair value of investments in associates | $ 528.5 | $ 366.8 | |||
Non-insurance | India | Quess | Total | |||||
Investments in Associates | |||||
Carrying value | 506.3 | 558.9 | |||
Share of profit (loss) of associates | (1.4) | (124.6) | |||
Non-insurance | India | Quess | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 506.3 | $ 558.9 | |||
Non-insurance | India | IIFL Finance Limited | |||||
Investments in Associates | |||||
Ownership percentage | 22.30% | 29.90% | |||
Fair value of investments in associates | $ 318.1 | $ 175.6 | |||
Non-insurance | India | IIFL Finance Limited | Total | |||||
Investments in Associates | |||||
Carrying value | 198.8 | 233.6 | |||
Share of profit (loss) of associates | 40.6 | 19.9 | |||
Non-insurance | India | IIFL Finance Limited | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 57.7 | ||||
Non-insurance | India | IIFL Finance Limited | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | $ 198.8 | $ 175.9 | |||
Non-insurance | India | Sanmar Chemicals Group | |||||
Investments in Associates | |||||
Ownership percentage | 42.90% | 42.90% | |||
Fair value of investments in associates | $ 421.2 | $ 338.6 | |||
Non-insurance | India | Sanmar Chemicals Group | Total | |||||
Investments in Associates | |||||
Carrying value | 124.2 | 128.6 | |||
Share of profit (loss) of associates | (2.4) | (48.6) | |||
Non-insurance | India | Sanmar Chemicals Group | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | $ 124.2 | $ 128.6 | |||
Non-insurance | India | CSB Bank Limited | |||||
Investments in Associates | |||||
Ownership percentage | 49.70% | 49.70% | |||
Fair value of investments in associates | $ 227.6 | $ 214.4 | |||
Non-insurance | India | CSB Bank Limited | Total | |||||
Investments in Associates | |||||
Carrying value | 180.8 | 164.4 | |||
Share of profit (loss) of associates | 27.6 | 14.1 | |||
Non-insurance | India | CSB Bank Limited | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | $ 180.8 | $ 164.4 | |||
Non-insurance | India | IIFL Securities Limited | |||||
Investments in Associates | |||||
Ownership percentage | 37.20% | 35.30% | |||
Fair value of investments in associates | $ 138 | $ 74.3 | |||
Non-insurance | India | IIFL Securities Limited | Total | |||||
Investments in Associates | |||||
Carrying value | 136 | 125.5 | |||
Share of profit (loss) of associates | 14 | 9.8 | |||
Non-insurance | India | IIFL Securities Limited | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 35 | 32.1 | |||
Non-insurance | India | IIFL Securities Limited | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | $ 101 | $ 93.4 | |||
Non-insurance | India | Seven Islands Shipping Limited | |||||
Investments in Associates | |||||
Ownership percentage | 48.50% | 48.50% | |||
Fair value of investments in associates | $ 105.9 | $ 103.6 | |||
Non-insurance | India | Seven Islands Shipping Limited | Total | |||||
Investments in Associates | |||||
Carrying value | 98.5 | 100.8 | |||
Share of profit (loss) of associates | (0.5) | 17.8 | |||
Non-insurance | India | Seven Islands Shipping Limited | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | 98.5 | 100.8 | |||
Non-insurance | India | Other, India | |||||
Investments in Associates | |||||
Fair value of investments in associates | 84.8 | 37.1 | |||
Non-insurance | India | Other, India | Total | |||||
Investments in Associates | |||||
Carrying value | 70.7 | 31.6 | |||
Share of profit (loss) of associates | 0.5 | 0.1 | |||
Non-insurance | India | Other, India | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 10.9 | 8.8 | |||
Non-insurance | India | Other, India | Fairfax India associates | |||||
Investments in Associates | |||||
Carrying value | 59.8 | 22.8 | |||
Non-insurance | Agriculture | |||||
Investments in Associates | |||||
Fair value of investments in associates | 49.9 | ||||
Non-insurance | Agriculture | Total | |||||
Investments in Associates | |||||
Carrying value | 65.3 | ||||
Share of profit (loss) of associates | (49.8) | ||||
Non-insurance | Agriculture | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 65.3 | ||||
Non-insurance | Agriculture | Astarta Holding N.V. | |||||
Investments in Associates | |||||
Ownership percentage | 28.40% | ||||
Fair value of investments in associates | $ 49.9 | ||||
Non-insurance | Agriculture | Astarta Holding N.V. | Total | |||||
Investments in Associates | |||||
Carrying value | 65.3 | ||||
Share of profit (loss) of associates | (28) | ||||
Non-insurance | Agriculture | Astarta Holding N.V. | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 65.3 | ||||
Non-insurance | Agriculture | Farmers Edge Inc. (Farmers Edge) | Total | |||||
Investments in Associates | |||||
Share of profit (loss) of associates | (21.8) | ||||
Non-insurance | Real estate | |||||
Investments in Associates | |||||
Fair value of investments in associates | 215.9 | 132.6 | |||
Non-insurance | Real estate | Total | |||||
Investments in Associates | |||||
Carrying value | 216.8 | 135.1 | |||
Share of profit (loss) of associates | (10.7) | (18.1) | |||
Non-insurance | Real estate | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 216.8 | 135.1 | |||
Non-insurance | Real estate | KWF Real Estate Ventures Limited Partnerships | |||||
Investments in Associates | |||||
Fair value of investments in associates | 76.3 | 84.3 | |||
Non-insurance | Real estate | KWF Real Estate Ventures Limited Partnerships | Total | |||||
Investments in Associates | |||||
Carrying value | 76.3 | 84.3 | |||
Share of profit (loss) of associates | (9) | (17.9) | |||
Non-insurance | Real estate | KWF Real Estate Ventures Limited Partnerships | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 76.3 | 84.3 | |||
Non-insurance | Real estate | Other, Real estate | |||||
Investments in Associates | |||||
Fair value of investments in associates | 139.6 | 48.3 | |||
Non-insurance | Real estate | Other, Real estate | Total | |||||
Investments in Associates | |||||
Carrying value | 140.5 | 50.8 | |||
Share of profit (loss) of associates | (1.7) | (0.2) | |||
Non-insurance | Real estate | Other, Real estate | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 140.5 | 50.8 | |||
Non-insurance | Other | |||||
Investments in Associates | |||||
Fair value of investments in associates | 3,779.9 | 2,720.8 | |||
Non-insurance | Other | Total | |||||
Investments in Associates | |||||
Carrying value | 3,378.7 | 2,948.7 | |||
Share of profit (loss) of associates | 307.5 | (22.2) | |||
Non-insurance | Other | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 3,378.7 | $ 2,948.7 | |||
Non-insurance | Other | Eurobank Ergasias S.A | |||||
Investments in Associates | |||||
Ownership percentage | 32.20% | 30.50% | |||
Fair value of investments in associates | $ 1,210.3 | $ 799.9 | |||
Non-insurance | Other | Eurobank Ergasias S.A | Total | |||||
Investments in Associates | |||||
Carrying value | 1,298.5 | 1,166.3 | |||
Share of profit (loss) of associates | 162.3 | (11.9) | |||
Non-insurance | Other | Eurobank Ergasias S.A | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 1,298.5 | $ 1,166.3 | |||
Non-insurance | Other | Atlas Corp | |||||
Investments in Associates | |||||
Ownership percentage | 36.70% | 36.70% | |||
Fair value of investments in associates | $ 1,285.8 | $ 978.9 | |||
Non-insurance | Other | Atlas Corp | Total | |||||
Investments in Associates | |||||
Carrying value | 922.1 | 900.1 | |||
Share of profit (loss) of associates | 69.5 | 116.4 | |||
Non-insurance | Other | Atlas Corp | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 922.1 | $ 900.1 | |||
Non-insurance | Other | EXCO Resources, Inc | |||||
Investments in Associates | |||||
Ownership percentage | 43.30% | 43.70% | |||
Fair value of investments in associates | $ 267.2 | $ 237.7 | |||
Non-insurance | Other | EXCO Resources, Inc | Total | |||||
Investments in Associates | |||||
Carrying value | 195.4 | 238.5 | |||
Share of profit (loss) of associates | (41.2) | (4.6) | |||
Non-insurance | Other | EXCO Resources, Inc | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 195.4 | $ 238.5 | |||
Non-insurance | Other | Resolute Forest Products Inc. | |||||
Investments in Associates | |||||
Ownership percentage | 32.30% | 30.60% | |||
Fair value of investments in associates | $ 377.1 | $ 161.9 | |||
Non-insurance | Other | Resolute Forest Products Inc. | Total | |||||
Investments in Associates | |||||
Carrying value | 275.8 | 134.3 | |||
Share of profit (loss) of associates | 75.9 | (57) | |||
Non-insurance | Other | Resolute Forest Products Inc. | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 275.8 | 134.3 | |||
Non-insurance | Other | APR Energy PLC | Total | |||||
Investments in Associates | |||||
Share of profit (loss) of associates | $ (13.6) | ||||
Non-insurance | Other | Helios Fairfax Partners Corporation | |||||
Investments in Associates | |||||
Ownership percentage | 34.40% | 32.30% | |||
Fair value of investments in associates | $ 116.2 | $ 185.9 | |||
Non-insurance | Other | Helios Fairfax Partners Corporation | Total | |||||
Investments in Associates | |||||
Carrying value | 206.1 | 185.9 | |||
Share of profit (loss) of associates | (1.2) | ||||
Non-insurance | Other | Helios Fairfax Partners Corporation | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 206.1 | $ 185.9 | |||
Non-insurance | Other | Peak Achievement Athletics | |||||
Investments in Associates | |||||
Ownership percentage | 42.60% | 42.60% | |||
Fair value of investments in associates | $ 181.2 | $ 171.5 | |||
Non-insurance | Other | Peak Achievement Athletics | Total | |||||
Investments in Associates | |||||
Carrying value | 140.5 | 140.2 | |||
Share of profit (loss) of associates | 13.3 | 34.2 | |||
Non-insurance | Other | Peak Achievement Athletics | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 140.5 | 140.2 | |||
Non-insurance | Other | Astarta Holding N.V. | |||||
Investments in Associates | |||||
Ownership percentage | 28.40% | ||||
Fair value of investments in associates | $ 73.3 | ||||
Non-insurance | Other | Astarta Holding N.V. | Total | |||||
Investments in Associates | |||||
Carrying value | 104 | ||||
Share of profit (loss) of associates | 38.4 | ||||
Non-insurance | Other | Astarta Holding N.V. | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | 104 | ||||
Non-insurance | Other | Partnerships, trusts and other | |||||
Investments in Associates | |||||
Fair value of investments in associates | 268.8 | 185 | |||
Non-insurance | Other | Partnerships, trusts and other | Total | |||||
Investments in Associates | |||||
Carrying value | 236.3 | 183.4 | |||
Share of profit (loss) of associates | (9.5) | (85.7) | |||
Non-insurance | Other | Partnerships, trusts and other | Associates and joint ventures | |||||
Investments in Associates | |||||
Carrying value | $ 236.3 | $ 183.4 |
Investments in Associates - Ins
Investments in Associates - Insurance and reinsurance associates and joint ventures (Details) - USD ($) $ in Millions | Jul. 14, 2021 | Jun. 17, 2021 | Jun. 16, 2021 | Mar. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Go Digit Infoworks Services Private Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 49.00% | ||||||
Insurance and reinsurance companies | |||||||
Investments in Associates | |||||||
Fair value of investments in associates | $ 1,541.5 | ||||||
Insurance and reinsurance companies | OMERS | Eurolife ERB Insurance Group Holdings S.A. | |||||||
Investments in Associates | |||||||
Proportion of ownership interest in joint venture | 80.00% | ||||||
Insurance and reinsurance companies | Eurobank Ergasias S.A | Eurolife ERB Insurance Group Holdings S.A. | |||||||
Investments in Associates | |||||||
Proportion of ownership interest in joint venture | 20.00% | ||||||
Insurance and reinsurance companies | OMERS | |||||||
Investments in Associates | |||||||
Proportion of ownership interest in joint venture | 62.50% | ||||||
Insurance and reinsurance companies | Go Digit Infoworks Services Private Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 49.00% | 49.00% | |||||
Fair value of investments in associates | $ 498.3 | $ 120.5 | |||||
Maximum percentage of equity interest allowed under Indian law | 74.00% | ||||||
Insurance and reinsurance companies | Eurolife ERB Insurance Group Holdings S.A. | |||||||
Investments in Associates | |||||||
Ownership percentage | 80.00% | 50.00% | |||||
Fair value of investments in associates | $ 457.9 | ||||||
Insurance and reinsurance companies | Singapore Reinsurance Corporation Limited (Singapore Re) | |||||||
Investments in Associates | |||||||
Ownership percentage | 94.00% | 28.20% | |||||
Insurance and reinsurance companies | RiverStone Barbados | |||||||
Investments in Associates | |||||||
Ownership percentage | 60.00% | 60.00% | |||||
Fair value of investments in associates | $ 605 | $ 729.5 |
Investments in Associates - Non
Investments in Associates - Non-insurance associates and joint ventures (Details) $ / shares in Units, shares in Millions, $ in Millions, ₨ in Billions | Sep. 16, 2021USD ($) | Sep. 16, 2021INR (₨) | Dec. 08, 2020USD ($) | Jul. 01, 2020 | Feb. 28, 2020USD ($) | Feb. 27, 2020USD ($) | Mar. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($) | Dec. 31, 2021INR (₨) | Dec. 31, 2020USD ($) | Aug. 23, 2021USD ($) | Jun. 11, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) |
Investments in Associates | |||||||||||||
Proceeds from sales of interests in associates | $ 809.2 | $ 139.8 | |||||||||||
Investments in associates | 6,104 | 6,439.6 | |||||||||||
Share of profit (loss) of associates | 402 | (112.8) | |||||||||||
IIFL Finance Limited | |||||||||||||
Investments in Associates | |||||||||||||
Proceeds from sales of interests in associates | 113.7 | ₨ 8.6 | |||||||||||
Net realized gains (losses) | 42 | ||||||||||||
Helios Fairfax Partners Corporation | |||||||||||||
Investments in Associates | |||||||||||||
Net realized gains (losses) | $ (61.5) | ||||||||||||
Fairfax India Holdings Corporation (Fairfax India) | Bangalore International Airport Limited | |||||||||||||
Investments in Associates | |||||||||||||
Percentage of ownership interest transferred | 43.60% | 43.60% | |||||||||||
Ownership percentage | 54.00% | 54.00% | |||||||||||
Fairfax India Holdings Corporation (Fairfax India) | Anchorage Infrastructure Investments Holdings Limited | |||||||||||||
Investments in Associates | |||||||||||||
Percentage of interest sold | 11.50% | 11.50% | |||||||||||
Proceeds from sales of interests in associates | $ 129.2 | ₨ 9.5 | |||||||||||
Non-insurance companies | |||||||||||||
Investments in Associates | |||||||||||||
Fair value of investments in associates | 7,192.1 | 5,609.8 | |||||||||||
Share of profit (loss) of associates | $ 22.3 | $ (100.2) | |||||||||||
Non-insurance companies | IIFL Finance Limited | |||||||||||||
Investments in Associates | |||||||||||||
Ownership percentage | 22.30% | 22.30% | |||||||||||
Proceeds from sales of interests in associates | $ 113.7 | ₨ 8.6 | |||||||||||
Net realized gains (losses) | 42 | ||||||||||||
Non-insurance companies | Helios Fairfax Partners Corporation | |||||||||||||
Investments in Associates | |||||||||||||
Investments in associates | $ 100 | ||||||||||||
Interest rate of debentures | 3.00% | ||||||||||||
Number of warrants to purchase shares | shares | 3 | ||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 4.90 | ||||||||||||
Non-insurance companies | Helios Fairfax Partners Corporation | Fairfax Africa legacy investments | |||||||||||||
Investments in Associates | |||||||||||||
Threshold maximum amount of investments at redemption or maturity | $ 102.6 | ||||||||||||
Fair value of debentures | 78 | ||||||||||||
Amount of debentures recorded to equity | $ 22 | ||||||||||||
Non-insurance companies | Farmers Edge Inc. (Farmers Edge) | |||||||||||||
Investments in Associates | |||||||||||||
Voting interest percentage | 67.00% | ||||||||||||
Non-insurance companies | Atlas Corp | 5.50% Unsecured Debentures Due March 1, 2027 | |||||||||||||
Investments in Associates | |||||||||||||
Investments in associates | $ 100 | ||||||||||||
Interest rate of debentures | 5.50% | ||||||||||||
Notional amount | $ 575 | ||||||||||||
Non-insurance companies | Atlas Corp | Atlas Series J preferred shares and equity warrants | |||||||||||||
Investments in Associates | |||||||||||||
Investments in associates | $ 575 | ||||||||||||
Amount of principal exchanged | $ 288 | ||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 13.71 | ||||||||||||
Amount of redemption of debentures | $ 287 | ||||||||||||
Non-insurance companies | Atlas Corp | APR Energy PLC | |||||||||||||
Investments in Associates | |||||||||||||
Fair value of investments in associates | $ 178.1 | ||||||||||||
Investments in associates | 45.9 | ||||||||||||
Consideration paid | $ 388.3 | ||||||||||||
Share of profit (loss) of associates | $ 7.6 |
Investments in Associates - Ann
Investments in Associates - Annual changes in carrying value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in the carrying value of investments in associates, including investment in associate held for sale | ||
Purchases and acquisitions | $ 175.4 | $ 29.8 |
Divestitures and other net changes in capitalization | 809.2 | 139.8 |
Investments in associates, including investment in associate held for sale | ||
Changes in the carrying value of investments in associates, including investment in associate held for sale | ||
Balance - January 1 | 6,439.6 | 5,984.4 |
Share of profit (loss) | 402 | 123.1 |
Impairments | (222.2) | |
Share of other comprehensive income (loss), excluding losses on defined benefit plans | (87.9) | 91.6 |
Share of losses on defined benefit plans | 79.8 | (57.9) |
Share of pre-tax comprehensive income (loss) of associates and joint arrangements | 393.9 | (65.4) |
Dividends and distributions received | (182) | (80) |
Purchases and acquisitions | 616.6 | 249.2 |
Divestitures and other net changes in capitalization | (818.3) | (288.6) |
Reclassifications | (315.6) | 779.4 |
Deconsolidation of non-insurance subsidiary (note 23) | (103.6) | |
Foreign exchange effect | (30.2) | (35.8) |
Balance - December 31 | 6,104 | 6,439.6 |
Associates | ||
Changes in the carrying value of investments in associates, including investment in associate held for sale | ||
Balance - January 1 | 3,170.4 | 2,876.6 |
Share of profit (loss) | 375.8 | 83.4 |
Impairments | (88.3) | |
Share of other comprehensive income (loss), excluding losses on defined benefit plans | (67.7) | 88 |
Share of losses on defined benefit plans | 89.1 | (32.2) |
Share of pre-tax comprehensive income (loss) of associates and joint arrangements | 397.2 | 50.9 |
Dividends and distributions received | (153.8) | (70) |
Purchases and acquisitions | 466.5 | 223.4 |
Divestitures and other net changes in capitalization | (54.8) | (107.2) |
Reclassifications | 36.4 | 174.4 |
Foreign exchange effect | (3.2) | 22.3 |
Balance - December 31 | 3,858.7 | 3,170.4 |
Joint ventures | ||
Changes in the carrying value of investments in associates, including investment in associate held for sale | ||
Balance - January 1 | 1,940.9 | 1,483.6 |
Share of profit (loss) | 6 | 91.8 |
Impairments | (98.9) | |
Share of other comprehensive income (loss), excluding losses on defined benefit plans | (20.5) | 42.1 |
Share of losses on defined benefit plans | 0.1 | (20.8) |
Share of pre-tax comprehensive income (loss) of associates and joint arrangements | (14.4) | 14.2 |
Dividends and distributions received | (23.6) | (3.7) |
Purchases and acquisitions | 114.4 | 20.8 |
Divestitures and other net changes in capitalization | (764.4) | (180.6) |
Reclassifications | (352) | 605 |
Foreign exchange effect | (4.5) | 1.6 |
Balance - December 31 | 896.4 | 1,940.9 |
Fairfax India associates | ||
Changes in the carrying value of investments in associates, including investment in associate held for sale | ||
Balance - January 1 | 1,328.3 | 1,391.3 |
Share of profit (loss) | 20.2 | (24.8) |
Share of other comprehensive income (loss), excluding losses on defined benefit plans | 0.3 | 3.2 |
Share of losses on defined benefit plans | (9.4) | (4.9) |
Share of pre-tax comprehensive income (loss) of associates and joint arrangements | 11.1 | (26.5) |
Dividends and distributions received | (4.6) | (4.9) |
Purchases and acquisitions | 35.7 | |
Divestitures and other net changes in capitalization | 0.9 | 0.9 |
Reclassifications | 0 | |
Foreign exchange effect | (22.5) | (32.5) |
Balance - December 31 | $ 1,348.9 | 1,328.3 |
Fairfax Africa associates | ||
Changes in the carrying value of investments in associates, including investment in associate held for sale | ||
Balance - January 1 | 232.9 | |
Share of profit (loss) | (27.3) | |
Impairments | (35) | |
Share of other comprehensive income (loss), excluding losses on defined benefit plans | (41.7) | |
Share of pre-tax comprehensive income (loss) of associates and joint arrangements | (104) | |
Dividends and distributions received | (1.4) | |
Purchases and acquisitions | 5 | |
Divestitures and other net changes in capitalization | (1.7) | |
Deconsolidation of non-insurance subsidiary (note 23) | (103.6) | |
Foreign exchange effect | (27.2) | |
Quess, Resolute, Atlas Mara and Astarta associates | ||
Changes in the carrying value of investments in associates, including investment in associate held for sale | ||
Impairments | $ (222.2) |
Derivatives - Financial Instrum
Derivatives - Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Market value | $ 581.8 | $ 382.7 |
Short sale and derivative obligations, holding company | 152.9 | 189.4 |
Equity total return swaps - long positions | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,082.8 | 1,788.3 |
Market value | 96.1 | 144.3 |
Short sale and derivative obligations, holding company | 1.9 | 18 |
Equity warrants and options | ||
Disclosure of financial assets [line items] | ||
Notional amount | 646.1 | 626.9 |
Cost | 113.9 | 102.4 |
Market value | 259.2 | 133.2 |
Short sale and derivative obligations, holding company | 1.9 | 0.4 |
RiverStone Barbados AVLNs | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,250.1 | |
Market value | 103.8 | |
CPI-linked derivatives | ||
Disclosure of financial assets [line items] | ||
Notional amount | 61,952.5 | 74,906 |
Cost | 237.3 | 347.5 |
Market value | 0.7 | 2.8 |
U.S. treasury bond forward contracts | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,691.3 | 330.8 |
Market value | 3.7 | 3.1 |
Short sale and derivative obligations, holding company | 0.8 | |
Foreign currency forward and swap contracts | ||
Disclosure of financial assets [line items] | ||
Market value | 58.4 | 66.4 |
Short sale and derivative obligations, holding company | 77.4 | 136 |
Foreign currency options | ||
Disclosure of financial assets [line items] | ||
Cost | 53.7 | |
Market value | 5.8 | |
Other derivative contracts | ||
Disclosure of financial assets [line items] | ||
Cost | 26 | 25.6 |
Market value | 59.9 | 27.1 |
Short sale and derivative obligations, holding company | 70.9 | 35 |
AGT Food and Ingredients Inc. (AGT) | Foreign currency forward and swap contracts | ||
Disclosure of financial assets [line items] | ||
Short sale and derivative obligations, holding company | 47.6 | 46.2 |
Atlas Corp | ||
Disclosure of financial assets [line items] | ||
Cost | 0 | 575.9 |
Atlas Corp | Equity warrants and options | ||
Disclosure of financial assets [line items] | ||
Market value | $ 200.1 | $ 110.5 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ / shares in Units, $ / shares in Units, € in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($) | Dec. 31, 2021EUR (€)shares | Dec. 31, 2021CAD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Mar. 29, 2021CAD ($) | Mar. 29, 2021USD ($) | Mar. 03, 2021CAD ($) | Mar. 03, 2021USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | |
Disclosure of financial assets [line items] | ||||||||||||
Net gains (losses) on investments | $ 3,445.1 | $ 313.1 | ||||||||||
Assets pledged for short sale and derivative obligations, at fair value | $ 230.5 | $ 275.9 | ||||||||||
Assets pledged for short sale and derivative obligations, collateral, entering derivative contracts | 221.2 | 226.4 | ||||||||||
Assets pledged for short sale and derivative obligations, collateral, fair value changes | 9.3 | 49.5 | ||||||||||
Borrowings, At Fair Value | 8,291.9 | 9,437.4 | ||||||||||
Equity total return swaps - short positions, investment purposes | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | 0 | |||||||||||
Equity total return swaps - short positions | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Net cash paid (received) for derivative closures and reset provisions | 613.2 | |||||||||||
Net gains (losses) on investments | (528.6) | |||||||||||
Notional amount of derivatives settled | 898.4 | |||||||||||
Gain (loss) on designation of financial instrument as measured at fair value through profit or loss because credit derivative is used to manage credit risk | (703.9) | |||||||||||
Unrealized gain (loss) | (175.3) | |||||||||||
Equity total return swaps - long positions, investment purposes | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount of equity contracts entered into during the period | 753.6 | |||||||||||
Equity total return swaps - long positions, investment purposes | Fairfax Financial Holdings | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | $ 508.5 | $ 403.3 | ||||||||||
Notional amount per share (in dollars per share) | (per share) | $ 524.47 | $ 416.03 | ||||||||||
Equity total return swaps - long positions, individual equities | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | $ 866.2 | 1,746.2 | ||||||||||
Equity total return swaps - long positions, individual equities | Fairfax Financial Holdings | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | $ 935 | $ 732.5 | ||||||||||
Number of shares under equity swap contracts (in shares) | shares | 1,964,155 | 1,964,155 | 1,964,155 | |||||||||
Notional amount per share (in dollars per share) | (per share) | $ 476.03 | $ 372.96 | ||||||||||
Equity total return swaps - long positions | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | $ 1,082.8 | 1,788.3 | ||||||||||
Net cash paid (received) for derivative closures and reset provisions | 439.6 | (207.4) | ||||||||||
Net gains (losses) on investments | $ 243 | 216.7 | ||||||||||
Notional amount of derivatives settled | 1,876.7 | 878.8 | ||||||||||
Equity total return swaps - long positions | Fairfax Financial Holdings | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Number of new shares under equity swap contracts during the period | shares | 969,460 | |||||||||||
CPI-linked derivatives | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | 61,952.5 | 74,906 | ||||||||||
U.S. treasury bond forward contracts | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | 1,691.3 | 330.8 | ||||||||||
Net gains (losses) on investments | $ (25.7) | (102) | ||||||||||
3.95% Unsecured Senior Notes Due March 3, 2031 | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | $ 850 | $ 671.6 | ||||||||||
Unsecured senior notes due 2031 | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | $ 850 | $ 671.6 | ||||||||||
Unsecured senior notes due 2022 and 2023 | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Notional amount | 846 | 670.6 | ||||||||||
Hedges of net investment in Canadian subsidiaries | Unsecured senior notes | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | $ 2,800 | $ 2,796 | ||||||||||
Borrowings at fair value | 2,364.6 | 2,397.6 | ||||||||||
Hedges of net investment in foreign operations | 3.95% Unsecured Senior Notes Due March 3, 2031 | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | 671.6 | |||||||||||
Hedges of net investment in foreign operations | 5.84% due October 14, 2022 (Cdn$450.0) | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | 670.6 | |||||||||||
Hedges of net investment in foreign operations | 4.50% due March 22, 2023 (Cdn$400.0) | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | 670.6 | |||||||||||
Credit risk | Cash and short term investments | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Financial assets pledged as liabilities | 14.3 | 116.4 | ||||||||||
Credit risk | Government securities | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Financial assets pledged as liabilities | 125.7 | 12.9 | ||||||||||
Canada | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Gains (losses) on hedge of net investment | (16.7) | (38) | ||||||||||
Canada | Hedges of net investment in foreign operations | Unsecured senior notes | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | $ 2,800 | 850 | $ 671.6 | $ 2,796 | ||||||||
Borrowings at fair value | 2,364.6 | 2,397.6 | ||||||||||
Canada | Hedges of net investment in foreign operations | 3.95% Unsecured Senior Notes Due March 3, 2031 | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | 850 | |||||||||||
Canada | Hedges of net investment in foreign operations | 5.84% due October 14, 2022 (Cdn$450.0) | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | 846 | |||||||||||
Canada | Hedges of net investment in foreign operations | 4.50% due March 22, 2023 (Cdn$400.0) | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | $ 846 | |||||||||||
Europe | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Gains (losses) on hedge of net investment | $ 63.9 | $ (75.8) | ||||||||||
Europe | Hedges of net investment in foreign operations | Unsecured senior notes | ||||||||||||
Disclosure of financial assets [line items] | ||||||||||||
Borrowings | € | € 750 | € 750 | ||||||||||
Borrowings at fair value | $ 926.3 | $ 1,023.9 |
Derivatives - Underlying CPI In
Derivatives - Underlying CPI Index (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets [line items] | ||
Market value | $ 581.8 | $ 382.7 |
Net gains (losses) on investments | 3,445.1 | 313.1 |
CPI-linked derivatives | ||
Disclosure of financial assets [line items] | ||
Notional amount | 61,952.5 | 74,906 |
Cost | 237.3 | 347.5 |
Market value | $ 0.7 | $ 2.8 |
Insurance Contract Liabilitie_2
Insurance Contract Liabilities - Summary by nature (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance Contract Liabilities | ||||||||||
Total Insurance contract liabilities | $ 47,346.5 | $ 39,206.8 | ||||||||
Net loss reserves, case reserves | 10,258.5 | 9,390.3 | ||||||||
Net loss reserves, IBNR | 15,220.4 | 13,471.7 | ||||||||
Insurance contracts, Gross | ||||||||||
Insurance Contract Liabilities | ||||||||||
Provision for unearned premiums | 10,437.7 | 8,397.5 | $ 7,222.4 | |||||||
Provision for losses and loss adjustment expenses | 34,422.8 | 30,809.3 | $ 28,500.2 | $ 29,081.7 | $ 28,610.8 | $ 19,481.8 | $ 19,816.4 | $ 17,749.1 | $ 19,212.8 | $ 19,648.8 |
Property and casualty insurance contract liabilities | 44,860.5 | 39,206.8 | ||||||||
Provision for life policy benefits | 2,486 | 0 | ||||||||
Total Insurance contract liabilities | 47,346.5 | 39,206.8 | ||||||||
Ceded reinsurance contracts | ||||||||||
Insurance Contract Liabilities | ||||||||||
Provision for unearned premiums | 2,260 | 1,899.1 | ||||||||
Provision for losses and loss adjustment expenses | 8,943.9 | 7,947.3 | ||||||||
Property and casualty insurance contract liabilities | 11,203.9 | 9,846.4 | ||||||||
Provision for life policy benefits | 2.3 | |||||||||
Total Insurance contract liabilities | 11,206.2 | 9,846.4 | ||||||||
Insurance contracts, Net | ||||||||||
Insurance Contract Liabilities | ||||||||||
Provision for unearned premiums | 8,177.7 | 6,498.4 | ||||||||
Provision for losses and loss adjustment expenses | 25,478.9 | 22,862 | ||||||||
Property and casualty insurance contract liabilities | 33,656.6 | 29,360.4 | ||||||||
Provision for life policy benefits | 2,483.7 | |||||||||
Total Insurance contract liabilities | $ 36,140.3 | $ 29,360.4 |
Insurance Contract Liabilitie_3
Insurance Contract Liabilities - Summary by classification (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Insurance Contract Liabilities | ||
Total Insurance contract liabilities | $ 47,346.5 | $ 39,206.8 |
Insurance contracts, Gross | ||
Insurance Contract Liabilities | ||
Current | 20,618.3 | 17,389.7 |
Non-current | 26,728.2 | 21,817.1 |
Total Insurance contract liabilities | 47,346.5 | 39,206.8 |
Ceded reinsurance contracts | ||
Insurance Contract Liabilities | ||
Current | 4,740.3 | 4,218.2 |
Non-current | 6,465.9 | 5,628.2 |
Total Insurance contract liabilities | 11,206.2 | 9,846.4 |
Insurance contracts, Net | ||
Insurance Contract Liabilities | ||
Current | 15,878 | 13,171.5 |
Non-current | 20,262.3 | 16,188.9 |
Total Insurance contract liabilities | $ 36,140.3 | $ 29,360.4 |
Insurance Contract Liabilitie_4
Insurance Contract Liabilities - Provision for unearned premiums, gross (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance Contract Liabilities | ||
Gross premiums written attributable to European Run-off | $ 146.5 | |
Gross premiums earned attributable to European Run-off | 115.9 | |
Insurance contracts, Gross | ||
Insurance Contract Liabilities | ||
Provision for unearned premiums - January 1 | $ 8,397.5 | 7,222.4 |
Gross premiums written | 23,796 | 18,979.4 |
Less: gross premiums earned | (21,673.6) | (17,782.9) |
Acquisitions of subsidiaries | 64.1 | |
Divestiture of subsidiary | (62.9) | |
Foreign exchange effect and other | (83.4) | (21.4) |
Provision for unearned premiums - December 31 | $ 10,437.7 | $ 8,397.5 |
Insurance Contract Liabilitie_5
Insurance Contract Liabilities - Provision for losses and loss adjustment expenses, gross (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Paid on claims occurring during: | ||
Unpaid losses from loss reserves assumed from European Run-off | $ 347.7 | |
Loss and loss adjustment expenses attributable to European Run-off | 196.9 | |
Insurance contracts, Gross | ||
Changes in the property and casualty provision for losses and loss adjustment expenses | ||
Provision for losses and loss adjustment expenses - January 1 | $ 30,809.3 | 28,500.2 |
Decrease in estimated losses and expenses for claims occurring in the prior years | (283.1) | (267.7) |
Losses and expenses for claims occurring in the current year | 14,396.8 | 12,303.9 |
Paid on claims occurring during: | ||
the current year | (3,148.6) | (2,987.5) |
the prior years | (7,212.8) | (7,338) |
Acquisitions of subsidiaries | 297.3 | |
Divestiture of subsidiary | (18.7) | |
Foreign exchange effect and other | (417.4) | 598.4 |
Provision for losses and loss adjustment expenses - December 31 | $ 34,422.8 | $ 30,809.3 |
Insurance Contract Liabilitie_6
Insurance Contract Liabilities - Provision for life policy benefits (Details) - Insurance contracts, Gross $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Provision for life policy benefits | |
Provision for life policy benefits - January 1 | $ 0 |
Acquisition of subsidiary | 2,638.5 |
New business and renewals | 78.1 |
Surrenders, lapses, maturities and deaths | (121) |
Foreign exchange effect and other | (109.6) |
Provision for life policy benefits - December 31 | $ 2,486 |
Insurance Contract Liabilitie_7
Insurance Contract Liabilities - Development of insurance losses, gross (Details) - Insurance contracts, Gross - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Insurance Contract Liabilities | ||||||||||
Provision for losses and loss adjustment expenses | $ 34,422.8 | $ 30,809.3 | $ 28,500.2 | $ 29,081.7 | $ 28,610.8 | $ 19,481.8 | $ 19,816.4 | $ 17,749.1 | $ 19,212.8 | $ 19,648.8 |
Less: CTR Life | 4.4 | 5.5 | 7 | 8 | 8.7 | 12.8 | 14.2 | 15.2 | 17.9 | 20.6 |
Provision for losses and loss adjustment expenses, net of CTR Life | 34,418.4 | 30,803.8 | 28,493.2 | 29,073.7 | 28,602.1 | 19,469 | 19,802.2 | 17,733.9 | 19,194.9 | 19,628.2 |
Effect of foreign currency translation | 190.6 | 267.6 | 186.3 | 550 | (148) | (185.7) | 277.4 | 475 | 569.8 | |
Favourable (adverse) loss reserve development | $ (253.1) | 253.1 | 60.2 | (103) | 353.5 | 570.4 | 1,228.4 | 1,052.7 | 1,039.4 | 772.5 |
Favourable development | 443.7 | 327.8 | 83.3 | 903.5 | 422.4 | 1,042.7 | 1,330.1 | 1,514.4 | 1,342.3 | |
One year later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 7,180.7 | 7,288.8 | 7,732 | 7,564 | 4,608 | 4,441.4 | 3,801.6 | 4,081.1 | 4,323.5 | |
Reserves re-estimated | $ 30,360.1 | 28,225.5 | 28,974.3 | 27,580.6 | 19,343.1 | 19,169.3 | 16,696.4 | 18,375.6 | 19,021.2 | |
Two years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 11,598 | 12,313.5 | 12,081.3 | 7,631.4 | 7,283.6 | 6,364.5 | 6,787.6 | 7,153.1 | ||
Reserves re-estimated | $ 28,165.4 | 28,839.4 | 27,565.9 | 18,804.8 | 18,973.6 | 16,269.2 | 17,475 | 18,529.4 | ||
Three years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 15,363.3 | 15,222.3 | 9,655.9 | 9,466.5 | 8,172.7 | 8,775.5 | 9,148 | |||
Reserves re-estimated | $ 28,990.4 | 27,451.3 | 18,752.8 | 18,502.5 | 16,114 | 17,307.9 | 17,820.5 | |||
Four years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 17,378.8 | 11,122.6 | 10,914.2 | 9,561.8 | 10,212.4 | 10,702.8 | ||||
Reserves re-estimated | $ 27,698.6 | 18,743.9 | 18,469.1 | 15,938.9 | 17,287.2 | 17,735.5 | ||||
Five years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 12,233.4 | 12,013.9 | 10,496.4 | 11,354.4 | 11,783.3 | |||||
Reserves re-estimated | $ 19,046.6 | 18,490.5 | 16,049.6 | 17,203.5 | 17,830.5 | |||||
Six years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 12,859.5 | 11,202.2 | 12,123.4 | 12,729.6 | ||||||
Reserves re-estimated | $ 18,759.5 | 16,123.1 | 17,340.1 | 17,791.8 | ||||||
Seven years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 11,793.5 | 12,754.2 | 13,335.1 | |||||||
Reserves re-estimated | $ 16,403.8 | 17,420 | 17,931.9 | |||||||
Eight years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 13,283.6 | 13,877 | ||||||||
Reserves re-estimated | $ 17,680.5 | 18,041.2 | ||||||||
Nine years later | ||||||||||
Insurance Contract Liabilities | ||||||||||
Cumulative payments | 14,341.1 | |||||||||
Reserves re-estimated | $ 18,285.9 |
Insurance Contract Liabilitie_8
Insurance Contract Liabilities - Development of losses and loss adjustment expenses for asbestos (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance contracts, Gross | ||
Changes in the company's provision for losses and loss adjustment expenses related to U.S. asbestos exposure | ||
Provision for asbestos claims and loss adjustment expenses - January 1 | $ 1,030.6 | $ 1,074.6 |
Losses and loss adjustment expenses incurred | 199.1 | 161 |
Losses and loss adjustment expenses paid | (193) | (205) |
Provision for asbestos claims and loss adjustment expenses - December 31 | 1,036.7 | 1,030.6 |
Insurance contracts, Net | ||
Changes in the company's provision for losses and loss adjustment expenses related to U.S. asbestos exposure | ||
Provision for asbestos claims and loss adjustment expenses - January 1 | 840 | 860.5 |
Losses and loss adjustment expenses incurred | 151.6 | 121.2 |
Losses and loss adjustment expenses paid | (152.7) | (141.7) |
Provision for asbestos claims and loss adjustment expenses - December 31 | $ 838.9 | $ 840 |
Reinsurance - Reinsurers' share
Reinsurance - Reinsurers' share of insurance contract Llabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance Contract Liabilities | |||
Assets under reinsurance ceded | $ 12,090.5 | $ 10,533.2 | $ 9,155.8 |
Ceded reinsurance contracts | |||
Insurance Contract Liabilities | |||
Provision for losses and loss adjustment expenses | 8,946.2 | 7,947.3 | |
Reinsurers' share of paid losses | 884.3 | 686.8 | |
Provision for unearned premiums | 2,260 | 1,899.1 | |
Assets under reinsurance ceded | 12,090.5 | 10,533.2 | |
Recoverable from reinsurers, current | 5,572.4 | 4,839 | |
Recoverable from reinsurers, non-current | 6,518.1 | 5,694.2 | |
Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Insurance Contract Liabilities | |||
Provision for losses and loss adjustment expenses | 8,989.3 | 7,971.7 | |
Reinsurers' share of paid losses | 1,019.9 | 818 | |
Provision for unearned premiums | 2,260 | 1,899.1 | |
Assets under reinsurance ceded | 12,269.2 | 10,688.8 | |
Provision for uncollectible reinsurance | |||
Insurance Contract Liabilities | |||
Assets under reinsurance ceded | 178.7 | 155.6 | $ 161.5 |
Provision for uncollectible reinsurance | Ceded reinsurance contracts | |||
Insurance Contract Liabilities | |||
Provision for losses and loss adjustment expenses | (43.1) | (24.4) | |
Reinsurers' share of paid losses | (135.6) | (131.2) | |
Assets under reinsurance ceded | $ (178.7) | $ (155.6) |
Reinsurance - Reinsurers' sha_2
Reinsurance - Reinsurers' share of paid losses, unpaid losses, unearned premiums and the provision (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Beginning balance - January 1 | $ 10,533.2 | $ 9,155.8 | |
Reinsurance recoveries received | (2,152.8) | (2,317.9) | |
Reinsurers' share of unpaid losses and premiums earned | (1,749.8) | (1,081.3) | |
Premiums ceded to reinsurers | 5,632.1 | 4,261.4 | |
Change in provision, recovery or write-off of impaired balances | (23.8) | 3.3 | |
Acquisitions of subsidiaries | 99.7 | ||
Divestiture of subsidiary | (20.3) | ||
Foreign exchange effect and other | (227.8) | 511.9 | |
Ending balance - December 31 | 12,090.5 | 10,533.2 | |
Commission income on premiums ceded | 1,007.8 | 821 | |
European Run-off's reinsurers' share of unpaid losses | 70.6 | ||
European Run-off's reinsurers' share of premiums earned | 13.5 | ||
Brit Limited (Brit) | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Net insurance contract liabilities ceded | $ 379.1 | ||
Consideration for insurance liability ceded | 344.1 | ||
Net favorable reserve | $ 35 | ||
Paid losses | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Beginning balance - January 1 | 818 | 776.9 | |
Reinsurers' share of losses paid to insureds | 2,360.3 | 2,375.4 | |
Reinsurance recoveries received | (2,152.8) | (2,317.9) | |
Change in provision, recovery or write-off of impaired balances | (1.7) | (2.7) | |
Acquisitions of subsidiaries | 0.3 | ||
Divestiture of subsidiary | (3.3) | ||
Foreign exchange effect and other | (0.9) | (13.7) | |
Ending balance - December 31 | 1,019.9 | 818 | |
Unpaid losses | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Beginning balance - January 1 | 7,971.7 | 6,956.7 | |
Reinsurers' share of losses paid to insureds | 2,360.3 | 2,375.4 | |
Reinsurers' share of unpaid losses and premiums earned | 3,479 | 2,842.3 | |
Acquisitions of subsidiaries | 82.7 | ||
Divestiture of subsidiary | (6.4) | ||
Foreign exchange effect and other | (177.4) | 548.1 | |
Ending balance - December 31 | 8,989.3 | 7,971.7 | |
Unpaid losses | European Run-off | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Unpaid losses from loss reserves ceded to European Run-off | 467.1 | ||
Unearned premiums. | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Beginning balance - January 1 | 1,899.1 | 1,583.7 | |
Reinsurers' share of unpaid losses and premiums earned | (5,228.8) | (3,923.6) | |
Premiums ceded to reinsurers | 5,632.1 | 4,261.4 | |
Acquisitions of subsidiaries | 16.7 | ||
Divestiture of subsidiary | (10.6) | ||
Foreign exchange effect and other | (48.5) | (22.4) | |
Ending balance - December 31 | 2,260 | 1,899.1 | |
Provision for uncollectible reinsurance | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Beginning balance - January 1 | 155.6 | 161.5 | |
Change in provision, recovery or write-off of impaired balances | (22.1) | 6 | |
Foreign exchange effect and other | (1) | (0.1) | |
Ending balance - December 31 | 178.7 | 155.6 | |
Ceded reinsurance contracts | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Beginning balance - January 1 | 10,533.2 | ||
Ending balance - December 31 | 12,090.5 | 10,533.2 | |
Ceded reinsurance contracts | Provision for uncollectible reinsurance | |||
Changes in reinsurers' share of paid losses, unpaid losses and unearned premiums, and the provision for uncollectible reinsurance | |||
Beginning balance - January 1 | (155.6) | ||
Ending balance - December 31 | $ (178.7) | $ (155.6) |
Insurance Contract Receivable_3
Insurance Contract Receivables and Payables - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance Contract Receivables and Payables | |||
Insurance premiums receivable | $ 4,247.1 | $ 3,665.6 | $ 3,325 |
Reinsurance premiums receivable | 1,863.9 | 1,385.3 | $ 1,176 |
Funds withheld receivable | 574 | 567.3 | |
Other | 234 | 235.6 | |
Provision for uncollectible receivables | (35.8) | (37.7) | |
Insurance contract receivables | 6,883.2 | 5,816.1 | |
Current | 6,170 | 5,144.7 | |
Non-current | $ 713.2 | $ 671.4 |
Insurance Contract Receivable_4
Insurance Contract Receivables and Payables - Changes in insurance premiums receivable and reinsurance premiums receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance premiums receivable | ||
Insurance premiums receivable, beginning balance | $ 3,665.6 | $ 3,325 |
Gross premiums written | 18,118.6 | 14,309.4 |
Premiums collected | (15,703.6) | (12,537.2) |
Amounts due to brokers and agents | (1,770.1) | (1,417.3) |
Acquisitions of subsidiaries (note 23) | 10.2 | |
Divestiture of subsidiary | (25.2) | |
Foreign exchange effect and other | (48.4) | (14.3) |
Insurance premiums receivable, ending balance | 4,247.1 | 3,665.6 |
Reinsurance premiums receivable | ||
Reinsurance premiums receivable, beginning balance | 1,385.3 | 1,176 |
Gross premiums written | 5,791.6 | 4,670 |
Premiums collected | (3,963.7) | (3,375.6) |
Amounts due to brokers and agents | (1,332.3) | (1,104.8) |
Acquisitions of subsidiaries (note 23) | 25.8 | |
Foreign exchange effect and other | (42.8) | 19.7 |
Reinsurance premiums receivable, ending balance | $ 1,863.9 | 1,385.3 |
European Run-off | ||
Insurance premiums receivable | ||
Assets held for sale | $ 146.5 |
Insurance Contract Receivable_5
Insurance Contract Receivables and Payables - Insurance contract payables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance Contract Receivables and Payables | ||
Payable to reinsurers | $ 2,333.7 | $ 1,669.5 |
Payables associated with unit-linked life insurance products | 621.7 | |
Ceded deferred premium acquisition costs | 510.3 | 441.1 |
Funds withheld payable to reinsurers | 274 | 206.3 |
Amounts payable to agents and brokers | 142.4 | 127.2 |
Accrued premium taxes | 124.1 | 93.1 |
Accrued commissions | 100.8 | 69 |
Other insurance contract payables | 386.5 | 357.8 |
Insurance contract payables | 4,493.5 | 2,964 |
Current | 3,503.4 | 2,705.8 |
Non-current | $ 990.1 | $ 258.2 |
Deferred Premium Acquisition _3
Deferred Premium Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in deferred acquisition costs arising from insurance contracts [abstract] | ||
Deferred premium acquisition costs, beginning balance | $ 1,543.7 | $ 1,344.3 |
Premium acquisition costs deferred | 4,502.4 | 3,629.4 |
Amortization | (4,098.1) | (3,424) |
Divestiture of subsidiary | (19.7) | |
Foreign exchange effect and other | (4.2) | (6) |
Deferred premium acquisition costs, ending balance | 1,924.1 | 1,543.7 |
Commissions, net | $ 2,787.9 | 2,355 |
European Run-off | ||
Reconciliation of changes in deferred acquisition costs arising from insurance contracts [abstract] | ||
Commissions, net | $ 7.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in goodwill and intangible assets | ||
Goodwill and intangible assets, beginning balance | $ 6,229.1 | $ 6,194.1 |
Additions | 370.7 | 402.2 |
Disposals | (125.5) | (96.8) |
Amortization | (439.4) | (216) |
Impairments | (85.3) | (86.1) |
Foreign exchange effect and other | (21.4) | 31.7 |
Goodwill and intangible assets, ending balance | 5,928.2 | 6,229.1 |
Intangible assets with indefinite useful life | $ 1,686.2 | 1,751.6 |
Fairfax India | Privi Speciality Chemicals Limited | ||
Changes in goodwill and intangible assets | ||
Percentage of interest sold | 48.80% | |
PT Asuransi Multi Artha Guna Tbk (AMAG Insurance) | ||
Changes in goodwill and intangible assets | ||
Proceeds from termination of agreements | 66.3 | |
Gains on disposals of intangible assets | 3.2 | |
Goodwill. | ||
Changes in goodwill and intangible assets | ||
Goodwill and intangible assets, beginning balance | $ 3,126.3 | 2,997.3 |
Additions | 60.7 | 182.1 |
Disposals | (28.9) | (30.3) |
Impairments | (52.1) | (33) |
Foreign exchange effect and other | (21.2) | 10.2 |
Goodwill and intangible assets, ending balance | 3,084.8 | 3,126.3 |
Lloyd's participation rights | ||
Changes in goodwill and intangible assets | ||
Goodwill and intangible assets, beginning balance | 503.2 | 503.2 |
Goodwill and intangible assets, ending balance | 503.2 | 503.2 |
Customer and broker relationships | ||
Changes in goodwill and intangible assets | ||
Goodwill and intangible assets, beginning balance | 867.5 | 969.8 |
Additions | 17.8 | |
Additions, including prior year adjustment | (1) | |
Disposals | (25.1) | |
Amortization | (96.6) | (100.4) |
Impairments | (2.1) | |
Foreign exchange effect and other | (2.7) | 1.2 |
Goodwill and intangible assets, ending balance | 760.9 | 867.5 |
Brand names | ||
Changes in goodwill and intangible assets | ||
Goodwill and intangible assets, beginning balance | 1,153.3 | 1,181.1 |
Additions | 27.9 | 0.1 |
Disposals | (64) | |
Impairments | (33.1) | (44.7) |
Foreign exchange effect and other | 3.2 | 16.8 |
Goodwill and intangible assets, ending balance | 1,087.3 | 1,153.3 |
Computer software and other | ||
Changes in goodwill and intangible assets | ||
Goodwill and intangible assets, beginning balance | 578.8 | 542.7 |
Additions | 264.3 | 221 |
Disposals | (7.5) | (66.5) |
Amortization | (342.8) | (115.6) |
Impairments | (0.1) | (6.3) |
Foreign exchange effect and other | (0.7) | 3.5 |
Goodwill and intangible assets, ending balance | $ 492 | $ 578.8 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | $ 5,928.2 | $ 6,229.1 | $ 6,194.1 |
Gross carrying amount | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 7,622 | 7,497.2 | |
Accumulated amortization | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | (1,492.8) | (1,125.6) | |
Accumulated impairment | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | (201) | (142.5) | |
Goodwill. | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 3,084.8 | 3,126.3 | 2,997.3 |
Goodwill. | Gross carrying amount | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 3,214.1 | 3,199.6 | |
Goodwill. | Accumulated impairment | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | (129.3) | (73.3) | |
Lloyd's participation rights | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 503.2 | 503.2 | 503.2 |
Lloyd's participation rights | Gross carrying amount | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 503.2 | 503.2 | |
Customer and broker relationships | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 760.9 | 867.5 | 969.8 |
Customer and broker relationships | Gross carrying amount | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 1,338.5 | 1,383.6 | |
Customer and broker relationships | Accumulated amortization | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | (577.4) | (513.7) | |
Customer and broker relationships | Accumulated impairment | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | (0.2) | (2.4) | |
Brand names | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 1,087.3 | 1,153.3 | 1,181.1 |
Brand names | Gross carrying amount | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 1,139.2 | 1,200.4 | |
Brand names | Accumulated impairment | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | (51.9) | (47.1) | |
Computer software and other | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 492 | 578.8 | $ 542.7 |
Computer software and other | Gross carrying amount | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | 1,427 | 1,210.4 | |
Computer software and other | Accumulated amortization | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | (915.4) | (611.9) | |
Computer software and other | Accumulated impairment | |||
Goodwill and Intangible Assets | |||
Goodwill and intangible assets | $ (19.6) | $ (19.7) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Allocation of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of information for cash-generating units [line items] | |||
Goodwill | $ 3,084.8 | $ 3,126.3 | |
Intangible assets | 2,843.4 | 3,102.8 | |
Intangible assets and goodwill | 5,928.2 | 6,229.1 | $ 6,194.1 |
Insurance and reinsurance companies. | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 1,972.8 | 2,010.1 | |
Intangible assets | 1,614.2 | 1,617.2 | |
Intangible assets and goodwill | 3,587 | 3,627.3 | |
Allied World Assurance Company Holdings, Ltd (Allied World) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 940 | 940 | |
Intangible assets | 565.8 | 611.7 | |
Intangible assets and goodwill | 1,505.8 | 1,551.7 | |
Brit Limited (Brit) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 215.6 | 200.2 | |
Intangible assets | 580.5 | 581.1 | |
Intangible assets and goodwill | 796.1 | 781.3 | |
Zenith National Insurance Corp. (Zenith National) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 317.6 | 317.6 | |
Intangible assets | 84.4 | 93.2 | |
Intangible assets and goodwill | 402 | 410.8 | |
Crum & Forster Holdings Corp. (Crum & Forster) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 189.1 | 188.8 | |
Intangible assets | 91 | 104.2 | |
Intangible assets and goodwill | 280.1 | 293 | |
Northbridge Financial Corporation (Northbridge) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 94.9 | 95.4 | |
Intangible assets | 121.3 | 105.5 | |
Intangible assets and goodwill | 216.2 | 200.9 | |
Odyssey Group Holdings, Inc. (Odyssey Group) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 119.7 | 119.7 | |
Intangible assets | 54.9 | 57.3 | |
Intangible assets and goodwill | 174.6 | 177 | |
All other insurance and reinsurance companies | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 95.9 | 148.4 | |
Intangible assets | 116.3 | 64.2 | |
Intangible assets and goodwill | 212.2 | 212.6 | |
Non-insurance companies. | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 1,112 | 1,116.2 | |
Intangible assets | 1,229.2 | 1,485.6 | |
Intangible assets and goodwill | 2,341.2 | 2,601.8 | |
Recipe Unlimited Corporation (Recipe) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 321.2 | 280.9 | |
Intangible assets | 980.5 | 1,011 | |
Intangible assets and goodwill | 1,301.7 | 1,291.9 | |
Boat Rocker Media Inc. (Boat Rocker) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 89.1 | 90.1 | |
Intangible assets | 90.2 | 230.8 | |
Intangible assets and goodwill | 179.3 | 320.9 | |
Farmers Edge Inc. (Farmers Edge) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 208.3 | 202.6 | |
Intangible assets | 16 | 17 | |
Intangible assets and goodwill | 224.3 | 219.6 | |
AGT Food and Ingredients Inc. (AGT) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 154.4 | 168.5 | |
Intangible assets | 34.9 | 47.1 | |
Intangible assets and goodwill | 189.3 | 215.6 | |
Thomas Cook (India) Limited (Thomas Cook India) | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 142.1 | 144.6 | |
Intangible assets | 54.5 | 56.3 | |
Intangible assets and goodwill | 196.6 | 200.9 | |
All other non-insurance companies | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 196.9 | 229.5 | |
Intangible assets | 53.1 | 123.4 | |
Intangible assets and goodwill | $ 250 | $ 352.9 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) | Dec. 31, 2021 |
Bottom of range | |
Disclosure of information for cash-generating units [line items] | |
Growth rate used to extrapolate cash flow projections | 3.00% |
Top of range | |
Disclosure of information for cash-generating units [line items] | |
Growth rate used to extrapolate cash flow projections | 3.70% |
Insurance and reinsurance companies. | |
Disclosure of information for cash-generating units [line items] | |
Investment return rate | 5.00% |
Insurance and reinsurance companies. | Bottom of range | |
Disclosure of information for cash-generating units [line items] | |
Discount rate applied to cash flow projections | 8.10% |
Insurance and reinsurance companies. | Top of range | |
Disclosure of information for cash-generating units [line items] | |
Discount rate applied to cash flow projections | 12.10% |
Non-insurance companies. | Bottom of range | |
Disclosure of information for cash-generating units [line items] | |
Discount rate applied to cash flow projections | 9.40% |
Non-insurance companies. | Top of range | |
Disclosure of information for cash-generating units [line items] | |
Discount rate applied to cash flow projections | 19.80% |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segmented Information | ||
Premises and equipment and right-of-use assets | $ 2,284 | $ 2,754.1 |
Assets associated with unit-linked insurance products | 637.1 | 0 |
Inventories | 547.3 | 645.6 |
Other revenue receivables | 508.4 | 550.8 |
Finance lease receivables | 266.1 | 305.4 |
Accrued interest and dividends | 215.1 | 197.9 |
Prepaid expenses | 205.8 | 245.9 |
Income tax, sales tax and subsidies receivable | 231.9 | 256.4 |
Receivable for securities sold but not yet settled | 135.4 | 28.5 |
Prepaid losses on claims | 129.4 | 118.6 |
Pension surplus | 113.8 | 48.8 |
Other | 847 | 705.2 |
Current | 2,333.6 | 2,430 |
Non-current | 3,787.7 | 3,427.2 |
Other assets | 6,121.3 | 5,857.2 |
Insurance and reinsurance companies | ||
Segmented Information | ||
Premises and equipment and right-of-use assets | 725.6 | 758.1 |
Assets associated with unit-linked insurance products | 637.1 | |
Finance lease receivables | 9.4 | 8.5 |
Accrued interest and dividends | 211.4 | 195.5 |
Prepaid expenses | 110.9 | 125.2 |
Income tax, sales tax and subsidies receivable | 61.6 | 85.5 |
Receivable for securities sold but not yet settled | 135.4 | 28.5 |
Prepaid losses on claims | 129.4 | 118.6 |
Pension surplus | 113.8 | 48.8 |
Other | 791.1 | 620 |
Current | 989.9 | 925.5 |
Non-current | 1,935.8 | 1,063.2 |
Other assets | 2,925.7 | 1,988.7 |
Non-insurance companies | ||
Segmented Information | ||
Premises and equipment and right-of-use assets | 1,558.4 | 1,996 |
Inventories | 547.3 | 645.6 |
Other revenue receivables | 508.4 | 550.8 |
Finance lease receivables | 256.7 | 296.9 |
Accrued interest and dividends | 3.7 | 2.4 |
Prepaid expenses | 94.9 | 120.7 |
Income tax, sales tax and subsidies receivable | 170.3 | 170.9 |
Other | 55.9 | 85.2 |
Current | 1,343.7 | 1,504.5 |
Non-current | 1,851.9 | 2,364 |
Other assets | $ 3,195.6 | $ 3,868.5 |
Account Payable and Accrued Lia
Account Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Payable And Accrued Liabilities [Line Items] | ||
Lease liabilities (note 22) | $ 1,140.7 | $ 1,452.1 |
Payables related to cost of sales | 580.9 | 625.7 |
Salaries and employee benefit liabilities | 568.2 | 485 |
Deferred gift card, hospitality and other revenue | 477.7 | 396.4 |
Amounts withheld and accrued taxes | 353.9 | 454.4 |
Pension and post retirement liabilities (note 21) | 253.9 | 351.9 |
Income taxes payable | 175 | 64.5 |
Administrative and other | 1,435.1 | 1,166.1 |
Accounts payable and accrued liabilities | 4,985.4 | 4,996.1 |
Current | 2,715.9 | 2,689.3 |
Non-current | 2,269.5 | 2,306.8 |
Insurance and reinsurance companies. | ||
Accounts Payable And Accrued Liabilities [Line Items] | ||
Lease liabilities (note 22) | 384.2 | 456.8 |
Salaries and employee benefit liabilities | 482.6 | 394.4 |
Deferred gift card, hospitality and other revenue | 453.9 | 367.3 |
Amounts withheld and accrued taxes | 35.4 | 21.1 |
Pension and post retirement liabilities (note 21) | 237.4 | 325.3 |
Income taxes payable | 163.8 | 42.8 |
Administrative and other | 1,150.9 | 822 |
Accounts payable and accrued liabilities | 2,908.2 | 2,429.7 |
Current | 1,538.7 | 1,274.7 |
Non-current | 1,369.5 | 1,155 |
Non-insurance companies. | ||
Accounts Payable And Accrued Liabilities [Line Items] | ||
Lease liabilities (note 22) | 756.5 | 995.3 |
Payables related to cost of sales | 580.9 | 625.7 |
Salaries and employee benefit liabilities | 85.6 | 90.6 |
Deferred gift card, hospitality and other revenue | 23.8 | 29.1 |
Amounts withheld and accrued taxes | 318.5 | 433.3 |
Pension and post retirement liabilities (note 21) | 16.5 | 26.6 |
Income taxes payable | 11.2 | 21.7 |
Administrative and other | 284.2 | 344.1 |
Accounts payable and accrued liabilities | 2,077.2 | 2,566.4 |
Current | 1,177.2 | 1,414.6 |
Non-current | $ 900 | $ 1,151.8 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions | Dec. 31, 2021EUR (€) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021GBP (£) | Oct. 29, 2021 | Mar. 29, 2021 | Mar. 03, 2021CAD ($) | Mar. 03, 2021USD ($) | Feb. 26, 2021USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2019USD ($) |
Borrowings | ||||||||||||||
Carrying value | $ 7,753 | $ 8,814 | $ 7,232.6 | |||||||||||
Fair value | 8,291.9 | 9,437.4 | ||||||||||||
Borrowings | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 7,802.3 | 8,849 | ||||||||||||
5.84% due October 14, 2022 (Cdn$450.0) | ||||||||||||||
Borrowings | ||||||||||||||
Interest rate | 5.84% | |||||||||||||
4.50% due March 22, 2023 (Cdn$400.0) | ||||||||||||||
Borrowings | ||||||||||||||
Interest rate | 4.50% | |||||||||||||
4.142% due February 7, 2024 | ||||||||||||||
Borrowings | ||||||||||||||
Interest rate | 4.142% | |||||||||||||
3.375% due March 3, 2031 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 600 | |||||||||||||
Interest rate | 3.375% | 3.375% | ||||||||||||
3.95% Unsecured Senior Notes Due March 3, 2031 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 850 | $ 671.6 | ||||||||||||
Interest rate | 3.95% | 3.95% | ||||||||||||
Holding company | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 5,385.2 | |||||||||||||
Carrying value | 5,338.6 | 5,580.6 | 4,117.3 | |||||||||||
Fair value | $ 5,850.5 | 6,167.4 | ||||||||||||
Holding company | Borrowings | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 5,613 | |||||||||||||
Holding company | 5.84% due October 14, 2022 (Cdn$450.0) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 446 | $ 446 | $ 350.1 | |||||||||||
Interest rate | 5.84% | 5.84% | 5.84% | 5.84% | 5.84% | 5.84% | 5.84% | 5.84% | ||||||
Carrying value | $ 351.1 | |||||||||||||
Fair value | 377.6 | |||||||||||||
Holding company | 4.50% due March 22, 2023 (Cdn$400.0) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 400 | $ 400 | $ 314 | |||||||||||
Interest rate | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | ||||||
Carrying value | $ 312.9 | |||||||||||||
Fair value | 334.1 | |||||||||||||
Holding company | 4.142% due February 7, 2024 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 85 | |||||||||||||
Interest rate | 4.142% | 4.142% | 4.142% | 4.142% | 4.142% | 4.142% | 4.142% | 4.142% | ||||||
Carrying value | $ 85 | |||||||||||||
Fair value | 85.1 | |||||||||||||
Holding company | 4.875% due August 13, 2024 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 282.5 | $ 282.5 | ||||||||||||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | ||||||
Carrying value | $ 281.1 | $ 280.6 | ||||||||||||
Fair value | 301.7 | 309.7 | ||||||||||||
Holding company | 4.95% due March 3, 2025 (Cdn$350.0) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 350 | $ 277.1 | $ 350 | $ 274.7 | ||||||||||
Interest rate | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | ||||||
Carrying value | $ 275.4 | $ 272.5 | ||||||||||||
Fair value | 299.6 | 306.3 | ||||||||||||
Holding company | 8.30% due April 15, 2026 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 91.8 | $ 91.8 | ||||||||||||
Interest rate | 8.30% | 8.30% | 8.30% | 8.30% | 8.30% | 8.30% | 8.30% | 8.30% | ||||||
Carrying value | $ 91.7 | $ 91.7 | ||||||||||||
Fair value | 113.3 | 118.6 | ||||||||||||
Holding company | 4.70% due December 16, 2026 (Cdn$450.0) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 450 | $ 356.3 | $ 450 | $ 353.2 | ||||||||||
Interest rate | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | ||||||
Carrying value | $ 354.8 | $ 351.5 | ||||||||||||
Fair value | 387.9 | 394.6 | ||||||||||||
Holding company | 4.25% due December 6, 2027 (Cdn$650.0) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 650 | $ 514.6 | $ 650 | $ 510.2 | ||||||||||
Interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||
Carrying value | $ 513.1 | $ 508.5 | ||||||||||||
Fair value | 551.4 | 558.3 | ||||||||||||
Holding company | 2.75% due March 29, 2028 (750.0 EUR) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | € 750 | $ 852.9 | € 750 | $ 917.7 | ||||||||||
Interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | ||||||
Carrying value | $ 842.4 | $ 904.4 | ||||||||||||
Fair value | 926.3 | 1,023.9 | ||||||||||||
Holding company | 4.85% due April 17, 2028 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 600 | $ 600 | ||||||||||||
Interest rate | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | ||||||
Carrying value | $ 596.3 | $ 595.8 | ||||||||||||
Fair value | 668.5 | 677.6 | ||||||||||||
Holding company | 4.23% due June 14, 2029 (Cdn$500.0) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 500 | $ 395.8 | $ 500 | $ 392.5 | ||||||||||
Interest rate | 4.23% | 4.23% | 4.23% | 4.23% | 4.23% | 4.23% | 4.23% | 4.23% | ||||||
Carrying value | $ 394.2 | $ 390.6 | ||||||||||||
Fair value | 424.4 | 426.7 | ||||||||||||
Holding company | 4.625% Unsecured Senior Notes Due April 30, 2030 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 650 | $ 650 | ||||||||||||
Interest rate | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | ||||||
Carrying value | $ 645.9 | $ 645.4 | ||||||||||||
Fair value | 730 | $ 731.8 | ||||||||||||
Holding company | 3.375% due March 3, 2031 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 600 | |||||||||||||
Interest rate | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% | ||||||
Carrying value | $ 585.1 | |||||||||||||
Fair value | 620.7 | |||||||||||||
Holding company | 3.95% Unsecured Senior Notes Due March 3, 2031 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 850 | $ 672.9 | $ 850 | |||||||||||
Interest rate | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | ||||||
Carrying value | $ 668 | |||||||||||||
Fair value | 701.3 | |||||||||||||
Holding company | 7.75% due July 15, 2037 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 91.3 | $ 91.3 | ||||||||||||
Interest rate | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | ||||||
Carrying value | $ 90.6 | $ 90.6 | ||||||||||||
Fair value | 125.4 | 123.1 | ||||||||||||
Holding company | Revolving Credit Facility | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 700 | |||||||||||||
Carrying value | 700 | |||||||||||||
Fair value | 700 | |||||||||||||
Insurance and reinsurance companies | ||||||||||||||
Borrowings | ||||||||||||||
Carrying value | 790.7 | 1,033.4 | 1,039.6 | |||||||||||
Fair value | 815.8 | 1,067.4 | ||||||||||||
Insurance and reinsurance companies | Borrowings | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 783.8 | 1,025.2 | ||||||||||||
Insurance and reinsurance companies | OdysseyRe floating rate unsecured senior notes due 2021 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 90 | |||||||||||||
Carrying value | 90 | |||||||||||||
Fair value | 91 | |||||||||||||
Insurance and reinsurance companies | Allied World senior notes, 4.35% due October 29, 2025 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 500 | $ 500 | ||||||||||||
Interest rate | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | ||||||
Carrying value | $ 503.9 | $ 505 | ||||||||||||
Fair value | 536.9 | 544.9 | ||||||||||||
Insurance and reinsurance companies | Allied World revolving credit facility and other borrowings | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 17.4 | 40.8 | ||||||||||||
Carrying value | 20.6 | 44.2 | ||||||||||||
Fair value | 21.1 | 51.4 | ||||||||||||
Insurance and reinsurance companies | Zenith National 8.55% debentures due August 1, 2028 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 38.5 | $ 38.5 | ||||||||||||
Interest rate | 8.55% | 8.55% | 8.55% | 8.55% | 8.55% | 8.55% | 8.55% | 8.55% | ||||||
Carrying value | $ 38.3 | $ 38.3 | ||||||||||||
Fair value | 38.3 | 38.3 | ||||||||||||
Insurance and reinsurance companies | Brit 3.6757% subordinated notes due December 9, 2030 (135.0) | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 182.9 | £ 135 | $ 184.5 | £ 135 | ||||||||||
Interest rate | 3.6757% | 3.6757% | 3.6757% | 3.6757% | 3.6757% | 3.6757% | 3.6757% | 3.6757% | ||||||
Carrying value | $ 182.9 | $ 184.5 | ||||||||||||
Fair value | 174.5 | 170.4 | ||||||||||||
Insurance and reinsurance companies | Brit floating rate revolving credit facility | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 45 | 130 | ||||||||||||
Carrying value | 45 | 130 | ||||||||||||
Fair value | 45 | 130 | ||||||||||||
Insurance and reinsurance companies | First Mercury floating rate trust preferred securities due 2036 and 2037 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 41.4 | |||||||||||||
Carrying value | 41.4 | |||||||||||||
Fair value | 41.4 | |||||||||||||
Insurance and reinsurance companies | Fairfax India 5.00% Unsecured Senior Notes Due 2028 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 58.4 | |||||||||||||
Non-insurance companies | ||||||||||||||
Borrowings | ||||||||||||||
Carrying value | 1,623.7 | 2,200 | $ 2,075.7 | |||||||||||
Fair value | 1,625.6 | 2,202.6 | ||||||||||||
Non-insurance companies | Borrowings | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 1,633.3 | 2,210.8 | ||||||||||||
Non-insurance companies | Fairfax India 5.00% Unsecured Senior Notes Due 2028 | ||||||||||||||
Borrowings | ||||||||||||||
Principal | $ 441.6 | $ 500 | $ 550 | |||||||||||
Interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||
Carrying value | $ 438.4 | $ 547.2 | ||||||||||||
Fair value | 440.3 | 550 | ||||||||||||
Non-insurance companies | Fairfax India subsidiary borrowings | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 91.9 | 167.1 | ||||||||||||
Carrying value | 91.3 | 166.4 | ||||||||||||
Fair value | 91.3 | 166.4 | ||||||||||||
Non-insurance companies | AGT credit facilities, senior notes and loans | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 491.8 | 516.4 | ||||||||||||
Carrying value | 488.9 | 514.2 | ||||||||||||
Fair value | 488.9 | 514 | ||||||||||||
Non-insurance companies | Recipe term loans and credit facilities | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 359 | 430.7 | ||||||||||||
Carrying value | 356.9 | 428.4 | ||||||||||||
Fair value | 356.9 | 428.4 | ||||||||||||
Non-insurance companies | Boat Rocker demand loans and revolving credit facilities | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 93.8 | 184.6 | ||||||||||||
Carrying value | 93.1 | 183 | ||||||||||||
Fair value | 93.1 | 183 | ||||||||||||
Non-insurance companies | Loans and revolving credit facilities primarily at floating rates | ||||||||||||||
Borrowings | ||||||||||||||
Principal | 155.2 | 362 | ||||||||||||
Carrying value | 155.1 | 360.8 | ||||||||||||
Fair value | $ 155.1 | $ 360.8 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) $ in Millions, $ in Millions | Dec. 17, 2021USD ($) | Dec. 15, 2021USD ($) | Oct. 29, 2021USD ($) | Jun. 15, 2021USD ($) | Mar. 29, 2021CAD ($) | Mar. 29, 2021USD ($) | Mar. 15, 2021USD ($) | Mar. 03, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Jun. 29, 2021USD ($) | Mar. 03, 2021CAD ($) | Mar. 03, 2021USD ($) | Feb. 26, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Borrowings | |||||||||||||||||||
Borrowings | $ 7,232.6 | $ 7,753 | $ 8,814 | ||||||||||||||||
Equity attributable to owners of parent | 16,385.1 | 13,856.6 | |||||||||||||||||
Interest expense | $ 513.9 | $ 475.9 | |||||||||||||||||
Interest expense on borrowings | 356.8 | ||||||||||||||||||
Interest expense on lease liabilities | 57.9 | 62.8 | |||||||||||||||||
Unsecured revolving credit facility | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Repayments of non-current borrowings | $ 700 | ||||||||||||||||||
Borrowings | 0 | 700 | |||||||||||||||||
Ratio of consolidated debt to consolidated capitalization | 0.245 | ||||||||||||||||||
Required minimum of shareholders' equity balance | 9,500 | ||||||||||||||||||
Unsecured revolving credit facility | Top of range | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Ratio of consolidated debt to consolidated capitalization | 0.35 | ||||||||||||||||||
3.95% Unsecured Senior Notes Due March 3, 2031 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 850 | $ 671.6 | |||||||||||||||||
Interest rate | 3.95% | 3.95% | |||||||||||||||||
Net proceeds from borrowings | $ 666.2 | ||||||||||||||||||
Borrowing costs incurred | 5.4 | ||||||||||||||||||
3.375% due March 3, 2031 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 600 | ||||||||||||||||||
Interest rate | 3.375% | 3.375% | |||||||||||||||||
Net proceeds from borrowings | 583.8 | ||||||||||||||||||
Borrowing costs incurred | $ 15.4 | ||||||||||||||||||
5.84% due October 14, 2022 (Cdn$450.0) | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Interest rate | 5.84% | 5.84% | |||||||||||||||||
Repayments of non-current borrowings | $ 446 | $ 353.5 | |||||||||||||||||
4.50% due March 22, 2023 (Cdn$400.0) | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Interest rate | 4.50% | 4.50% | |||||||||||||||||
Repayments of non-current borrowings | $ 400 | $ 317.1 | |||||||||||||||||
Loss on redemption as interest expense | $ 45.7 | ||||||||||||||||||
4.142% due February 7, 2024 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Interest rate | 4.142% | ||||||||||||||||||
Repayments of non-current borrowings | $ 85 | ||||||||||||||||||
Holding company and insurance and reinsurance companies | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Repayments of non-current borrowings | $ 932.9 | 0.3 | |||||||||||||||||
Borrowings | 6,129.3 | 6,614 | |||||||||||||||||
Interest expense on borrowings | 356.8 | 286.3 | 0 | ||||||||||||||||
Loss on redemption as interest expense | 45.7 | ||||||||||||||||||
Holding company | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | 5,385.2 | ||||||||||||||||||
Borrowings | 4,117.3 | 5,338.6 | 5,580.6 | ||||||||||||||||
Holding company | Unsecured revolving credit facility | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 2,000 | ||||||||||||||||||
Holding company | Revolving Credit Facility | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | 700 | ||||||||||||||||||
Borrowings | $ 700 | ||||||||||||||||||
Holding company | 3.95% Unsecured Senior Notes Due March 3, 2031 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 850 | $ 672.9 | $ 850 | ||||||||||||||||
Interest rate | 3.95% | 3.95% | 3.95% | 3.95% | |||||||||||||||
Borrowings | $ 668 | ||||||||||||||||||
Holding company | 3.375% due March 3, 2031 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 600 | ||||||||||||||||||
Interest rate | 3.375% | 3.375% | 3.375% | 3.375% | |||||||||||||||
Borrowings | $ 585.1 | ||||||||||||||||||
Holding company | 5.84% due October 14, 2022 (Cdn$450.0) | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 446 | $ 446 | $ 350.1 | ||||||||||||||||
Interest rate | 5.84% | 5.84% | 5.84% | 5.84% | |||||||||||||||
Borrowings | $ 351.1 | ||||||||||||||||||
Holding company | 4.50% due March 22, 2023 (Cdn$400.0) | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 400 | $ 400 | $ 314 | ||||||||||||||||
Interest rate | 4.50% | 4.50% | 4.50% | 4.50% | |||||||||||||||
Borrowings | $ 312.9 | ||||||||||||||||||
Holding company | 4.142% due February 7, 2024 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 85 | ||||||||||||||||||
Interest rate | 4.142% | 4.142% | 4.142% | 4.142% | |||||||||||||||
Borrowings | $ 85 | ||||||||||||||||||
Insurance and reinsurance companies. | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Borrowings | 1,039.6 | $ 790.7 | 1,033.4 | ||||||||||||||||
Interest expense | 373.6 | 305.3 | |||||||||||||||||
Insurance and reinsurance companies. | Fairfax India 5.00% Unsecured Senior Notes Due 2028 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 58.4 | ||||||||||||||||||
Insurance and reinsurance companies. | Crum & Forster First Mercury Trust Preferred Securities | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Repayments of non-current borrowings | $ 41.4 | ||||||||||||||||||
Insurance and reinsurance companies. | OdysseyRe floating rate unsecured senior notes due 2021 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | 90 | ||||||||||||||||||
Repayments of non-current borrowings | $ 40 | $ 50 | |||||||||||||||||
Borrowings | 90 | ||||||||||||||||||
Insurance and reinsurance companies. | Subsequent Events | Fairfax India 5.00% Unsecured Senior Notes Due 2028 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 58.4 | ||||||||||||||||||
Interest rate | 5.00% | ||||||||||||||||||
Non-insurance companies. | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Repayments of non-current borrowings | 593.9 | 82.5 | |||||||||||||||||
Borrowings | $ 2,075.7 | 1,623.7 | 2,200 | ||||||||||||||||
Borrowing costs incurred | 99.2 | 126.8 | |||||||||||||||||
Interest expense | $ 140.3 | $ 170.6 | |||||||||||||||||
Non-insurance companies. | Fairfax India 5.00% Unsecured Senior Notes Due 2028 | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 441.6 | $ 500 | $ 550 | ||||||||||||||||
Interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||||||||
Borrowings | $ 438.4 | $ 547.2 | |||||||||||||||||
Non-insurance companies. | Fairfax India Unsecured Rate Revolving Credit Facility with Syndicate of Lenders | |||||||||||||||||||
Borrowings | |||||||||||||||||||
Notional amount | $ 175 | ||||||||||||||||||
Maturity term | 3 years |
Borrowings - Carrying Amount Ro
Borrowings - Carrying Amount Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Carrying Value Of Borrowings [Roll Forward] | ||
Balance - January 1 | $ 8,814 | $ 7,232.6 |
Cash inflows from issuances | 1,749.1 | 752.8 |
Cash outflows from repayments | (1,526.8) | (82.8) |
Net cash inflows (outflows) from credit facilities and short term loans | (1,046.3) | 750.5 |
Acquisition of subsidiary | 127.4 | |
Deconsolidation of subsidiary | (209.9) | (118.7) |
Loss on redemption | 45.6 | |
Foreign exchange effect and other | (72.7) | 152.2 |
Balance - December 31 | 7,753 | 8,814 |
Holding company | ||
Carrying Value Of Borrowings [Roll Forward] | ||
Balance - January 1 | 5,580.6 | 4,117.3 |
Cash inflows from issuances | 1,250 | 645 |
Cash outflows from repayments | (801.2) | |
Net cash inflows (outflows) from credit facilities and short term loans | (700) | 700 |
Loss on redemption | 45.7 | |
Foreign exchange effect and other | (36.5) | 118.3 |
Balance - December 31 | 5,338.6 | 5,580.6 |
Insurance and reinsurance companies. | ||
Carrying Value Of Borrowings [Roll Forward] | ||
Balance - January 1 | 1,033.4 | 1,039.6 |
Cash outflows from repayments | (131.7) | (0.3) |
Net cash inflows (outflows) from credit facilities and short term loans | (84.3) | (10) |
Deconsolidation of subsidiary | (22.5) | |
Foreign exchange effect and other | (4.2) | 4.1 |
Balance - December 31 | 790.7 | 1,033.4 |
Non-insurance companies. | ||
Carrying Value Of Borrowings [Roll Forward] | ||
Balance - January 1 | 2,200 | 2,075.7 |
Cash inflows from issuances | 499.1 | 107.8 |
Cash outflows from repayments | (593.9) | (82.5) |
Net cash inflows (outflows) from credit facilities and short term loans | (262) | 60.5 |
Acquisition of subsidiary | 127.4 | |
Deconsolidation of subsidiary | (187.4) | (118.7) |
Loss on redemption | (0.1) | |
Foreign exchange effect and other | (32) | 29.8 |
Balance - December 31 | $ 1,623.7 | $ 2,200 |
Borrowings - Schedule of Borr_2
Borrowings - Schedule of Borrowings Principal Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Borrowings | |
2022 | $ 584.7 |
2023 | 63.1 |
2024 | 490.8 |
2025 | 843.5 |
2026 | 468.6 |
Thereafter | 5,351.6 |
Total | 7,802.3 |
Holding company | |
Borrowings | |
2024 | 282.5 |
2025 | 277.1 |
2026 | 448.1 |
Thereafter | 4,377.5 |
Total | 5,385.2 |
Insurance and reinsurance companies. | |
Borrowings | |
2022 | 0.3 |
2023 | 0.3 |
2024 | 0.3 |
2025 | 545.3 |
2026 | 0.3 |
Thereafter | 237.3 |
Total | 783.8 |
Non-insurance companies. | |
Borrowings | |
2022 | 584.4 |
2023 | 62.8 |
2024 | 208 |
2025 | 21.1 |
2026 | 20.2 |
Thereafter | 736.8 |
Total | $ 1,633.3 |
Total Equity - Capital (Details
Total Equity - Capital (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Multiple voting shares | ||
Total Equity | ||
Voting percentage of multiple voting shares | 41.80% | |
Number of shares issued (in shares) | 1,548,000 | 1,548,000 |
Subordinate voting shares | ||
Total Equity | ||
Number of shares issued (in shares) | 24,986,170 | 27,124,093 |
Number of shares reserved for share-based payments (in shares) | 1,869,340 | 1,696,357 |
Total Equity - Common Stock, Nu
Total Equity - Common Stock, Number of shares outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Common shares | ||
Number of shares outstanding rollforward: | ||
Beginning balance, shares outstanding (in shares) | 26,176,506 | |
Ending balance, shares outstanding (in shares) | 23,865,600 | 26,176,506 |
Multiple and subordinate voting shares | ||
Number of shares outstanding rollforward: | ||
Interest in multiple and subordinate voting shares held through ownership interest in shareholder - beginning and end of year | (799,230) | (799,230) |
Subordinate voting shares | ||
Number of shares outstanding rollforward: | ||
Beginning balance, shares outstanding (in shares) | 25,427,736 | 26,082,299 |
Purchases for cancellation (in shares) | (2,137,923) | (343,871) |
Treasury shares acquired (in shares) | (293,197) | (457,603) |
Treasury shares reissued (in shares) | 120,214 | 146,911 |
Ending balance, shares outstanding (in shares) | 23,116,830 | 25,427,736 |
Multiple voting shares | ||
Number of shares outstanding rollforward: | ||
Beginning balance, shares outstanding (in shares) | 1,548,000 | |
Ending balance, shares outstanding (in shares) | 1,548,000 | 1,548,000 |
Total Equity - Common stock, ot
Total Equity - Common stock, other disclosures (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 29, 2021 | Mar. 03, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Total Equity | ||||
Reduction of issued capital purchases for cancellation | $ 1,058.1 | $ 100.9 | ||
Subordinate voting shares | ||||
Total Equity | ||||
Purchases for cancellation (in shares) | 2,137,923 | 343,871 | ||
Treasury shares acquired (in shares) | 293,197 | 457,603 | ||
Value of treasury shares purchased | $ 132.6 | $ 137.9 | ||
Subordinate voting shares | Major ordinary share transactions | ||||
Total Equity | ||||
Treasury shares acquired (in shares) | 92,719 | |||
Value of treasury shares purchased | $ 45.9 | |||
Subordinate voting shares | Normal course issuer bids | ||||
Total Equity | ||||
Purchases for cancellation (in shares) | 137,923 | 343,871 | ||
Cost of shares purchased for cancellation | $ 58.1 | $ 100.9 | ||
Subordinate voting shares | Substantial issuer bid | ||||
Total Equity | ||||
Purchases for cancellation (in shares) | 2,000,000 | 2,000,000 | ||
Purchases for cancellation (in dollars per share) | $ 500 | |||
Cash paid for stock repurchase | $ 1,000 | $ 1,000 | ||
Additional paid-up capital | 495.4 | |||
Retained earnings | ||||
Total Equity | ||||
Reduction of issued capital purchases for cancellation | 528.5 | 15.7 | ||
Retained earnings | Normal course issuer bids | ||||
Total Equity | ||||
Reduction of issued capital purchases for cancellation | $ 23.9 | $ 15.7 | ||
Retained earnings | Subordinate voting shares | Substantial issuer bid | ||||
Total Equity | ||||
Reduction of issued capital purchases for cancellation | $ 504.6 |
Total Equity - Dividends Paid (
Total Equity - Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 27, 2022 | Jan. 28, 2021 | Jan. 28, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Total Equity | |||||
Dividend per share (in dollars per share) | $ 10 | $ 10 | |||
Total cash payment | $ 427.5 | $ 441.3 | |||
Multiple and subordinate voting shares | |||||
Total Equity | |||||
Dividend per share (in dollars per share) | $ 10 | $ 10 | $ 10 | ||
Total cash payment | $ 249.9 | $ 272.1 | $ 275.7 |
Total Equity - Preferred Shares
Total Equity - Preferred Shares (Details) $ / shares in Units, $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($)$ / sharesshares | |
Total Equity | |||
Liquidation preference per share (in dollars per share) | $ 25 | ||
Dividends paid, other shares | $ | $ 44.5 | $ 44 | |
Dividends paid | $ | $ 44.5 | 44 | |
Government of Canada Treasury Bill | |||
Total Equity | |||
Interest rate basis | three-month Government of Canada treasury bill | ||
Preferred shares | |||
Total Equity | |||
Stated capital | $ 1,335.5 | 1,335.5 | $ 1,456 |
Dividends paid, other shares | $ | 44.5 | 44 | |
Dividends paid | $ | $ 44.5 | $ 44 | |
Series C | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 7,515,642 | 7,515,642 | |
Stated capital | $ 170.8 | $ 187.9 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Fixed dividend rate per annum | 4.71% | ||
Series D | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 2,484,358 | 2,484,358 | |
Stated capital | $ 56.4 | $ 62.1 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Floating dividend rate per annum | 3.28% | ||
Series D | Government of Canada Treasury Bill | |||
Total Equity | |||
Adjustment to interest rate basis (percentage) | 3.15% | 3.15% | |
Series E | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 5,440,132 | 5,440,132 | |
Stated capital | $ 124.5 | $ 136 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Fixed dividend rate per annum | 3.18% | ||
Series F | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 2,099,046 | 2,099,046 | |
Stated capital | $ 48.1 | $ 52.5 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Floating dividend rate per annum | 2.29% | ||
Series F | Government of Canada Treasury Bill | |||
Total Equity | |||
Adjustment to interest rate basis (percentage) | 2.16% | 2.16% | |
Series G | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 7,719,843 | 7,719,843 | |
Stated capital | $ 182.1 | $ 193 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Fixed dividend rate per annum | 2.96% | ||
Series H | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 2,280,157 | 2,280,157 | |
Stated capital | $ 53.8 | $ 57 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Floating dividend rate per annum | 2.69% | ||
Series H | Government of Canada Treasury Bill | |||
Total Equity | |||
Adjustment to interest rate basis (percentage) | 2.56% | 2.56% | |
Series I | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 10,420,101 | 10,420,101 | |
Stated capital | $ 250.5 | $ 260.5 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Fixed dividend rate per annum | 3.33% | ||
Series J | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 1,579,899 | 1,579,899 | |
Stated capital | $ 38 | $ 39.5 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Floating dividend rate per annum | 2.98% | ||
Series J | Government of Canada Treasury Bill | |||
Total Equity | |||
Adjustment to interest rate basis (percentage) | 2.85% | 2.85% | |
Series K | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 9,500,000 | 9,500,000 | |
Stated capital | $ 231.7 | $ 237.5 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Fixed dividend rate per annum | 4.67% | ||
Series M | |||
Total Equity | |||
Number of shares outstanding (in shares) | shares | 9,200,000 | 9,200,000 | |
Stated capital | $ 179.6 | $ 230 | |
Liquidation preference per share (in dollars per share) | $ 25 | ||
Fixed dividend rate per annum | 5.00% | ||
Series L | Government of Canada Treasury Bill | |||
Total Equity | |||
Adjustment to interest rate basis (percentage) | 3.51% | 3.51% | |
Series N | Government of Canada Treasury Bill | |||
Total Equity | |||
Adjustment to interest rate basis (percentage) | 3.98% | 3.98% |
Total Equity - Accumulated Othe
Total Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pre-tax amount | ||
Foreign currency translation losses | $ (636.2) | $ (550.8) |
Share of accumulated other comprehensive income (loss) of associates, excluding net losses on defined benefit plans | (79.8) | 43.7 |
Items that may be subsequently reclassified to net earnings | (716) | (507.1) |
Net losses on defined benefit plans | (104.9) | (214.9) |
Share of net losses on defined benefit plans of associates | (57.3) | (159.1) |
Other | 8.4 | (0.8) |
Items that will not be subsequently reclassified to net earnings | (153.8) | (374.8) |
Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax | (869.8) | (881.9) |
Income tax (expense) recovery | ||
Foreign currency translation losses | 24.6 | 12.2 |
Share of accumulated other comprehensive income (loss) of associates, excluding net losses on defined benefit plans | 0.4 | (12.3) |
Items that may be subsequently reclassified to net earnings | 25 | (0.1) |
Net losses on defined benefit plans | 27.5 | 54.7 |
Share of net losses on defined benefit plans of associates | 5.5 | 18.2 |
Other | 10.1 | 10.1 |
Items that will not be subsequently reclassified to net earnings | 43.1 | 83 |
Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax | 68.1 | 82.9 |
After-tax amount | ||
Foreign currency translation losses | (611.6) | (538.6) |
Share of accumulated other comprehensive income (loss) of associates, excluding net losses on defined benefit plans | (79.4) | 31.4 |
Items that may be subsequently reclassified to net earnings | (691) | (507.2) |
Net losses on defined benefit plans | (77.4) | (160.2) |
Share of net losses on defined benefit plans of associates | (51.8) | (140.9) |
Other | 18.5 | 9.3 |
Items that will not be subsequently reclassified to net earnings | (110.7) | (291.8) |
Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax | $ (801.7) | $ (799) |
Total Equity - Non-Controlling
Total Equity - Non-Controlling Interests (Details) - USD ($) $ in Millions | Feb. 15, 2022 | Dec. 29, 2021 | Dec. 15, 2021 | Sep. 16, 2021 | Aug. 27, 2021 | Aug. 11, 2021 | Apr. 29, 2021 | Apr. 28, 2021 | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Total equity | |||||||||||
Carrying value | $ 4,930.2 | $ 3,670.7 | |||||||||
Net earnings (loss) attributable to non-controlling interests | 265.5 | (181) | |||||||||
Dividends paid | 44.5 | 44 | |||||||||
Proceeds from sale of equity interest in subsidiary | 1,603.2 | $ 218.2 | |||||||||
Substantial issuer bid | Subordinate voting shares | |||||||||||
Total equity | |||||||||||
Cash paid for stock repurchase | $ 1,000 | 1,000 | |||||||||
Allied World Assurance Company Holdings, Ltd (Allied World) | |||||||||||
Total equity | |||||||||||
Net earnings (loss) attributable to non-controlling interests | $ 117.8 | ||||||||||
Dividends paid | $ 126.4 | $ 126.4 | |||||||||
Brit Limited (Brit) | |||||||||||
Total equity | |||||||||||
Percentage of common shares acquired | 13.90% | ||||||||||
Odyssey Group Holdings, Inc. (Odyssey Group) | |||||||||||
Total equity | |||||||||||
Percent of ownership interests sold | 9.99% | ||||||||||
Fairfax India Holdings Corporation (Fairfax India) | |||||||||||
Total equity | |||||||||||
Minority voting percentage | 5.70% | 6.10% | 6.60% | ||||||||
Addition subordinate share | 5,416,000 | ||||||||||
Economic ownership percentage | 65.60% | 69.90% | 72.00% | ||||||||
Fairfax India Holdings Corporation (Fairfax India) | Subordinate voting shares | |||||||||||
Total equity | |||||||||||
Cash paid for stock repurchase | $ 114.3 | ||||||||||
Fairfax India Holdings Corporation (Fairfax India) | Substantial issuer bid | Subordinate voting shares | |||||||||||
Total equity | |||||||||||
Cash paid for stock repurchase | $ 105 | ||||||||||
Recipe Unlimited Corporation (Recipe) | |||||||||||
Total equity | |||||||||||
Minority voting percentage | 39.00% | 38.90% | |||||||||
Economic ownership percentage | 61.50% | 59.80% | |||||||||
Brit Limited (Brit) | Ki Insurance | |||||||||||
Total equity | |||||||||||
Capital contribution | $ 124 | ||||||||||
Fairfax India Holdings Corporation (Fairfax India) | Privi Speciality Chemicals Limited | |||||||||||
Total equity | |||||||||||
Profit (loss) on deconsolidated noncontrolling interests | $ 58.6 | ||||||||||
Insurance and reinsurance companies | |||||||||||
Total equity | |||||||||||
Carrying value | $ 2,931.4 | $ 1,831.8 | |||||||||
Net earnings (loss) attributable to non-controlling interests | $ 221.2 | $ 106.6 | |||||||||
Insurance and reinsurance companies | Allied World Assurance Company Holdings, Ltd (Allied World) | |||||||||||
Total equity | |||||||||||
Minority voting percentage | 29.10% | 29.10% | |||||||||
Carrying value | $ 1,419.6 | $ 1,329 | |||||||||
Net earnings (loss) attributable to non-controlling interests | $ 117.8 | 106.6 | |||||||||
Insurance and reinsurance companies | Brit Limited (Brit) | |||||||||||
Total equity | |||||||||||
Minority voting percentage | 13.80% | ||||||||||
Carrying value | $ 559.3 | 121.7 | |||||||||
Net earnings (loss) attributable to non-controlling interests | $ 14 | (10.9) | |||||||||
Insurance and reinsurance companies | Odyssey Group Holdings, Inc. (Odyssey Group) | |||||||||||
Total equity | |||||||||||
Minority voting percentage | 9.99% | ||||||||||
Carrying value | $ 550 | ||||||||||
Insurance and reinsurance companies | All other | |||||||||||
Total equity | |||||||||||
Carrying value | 402.5 | 381.1 | |||||||||
Net earnings (loss) attributable to non-controlling interests | 89.4 | 10.9 | |||||||||
Non-insurance companies | |||||||||||
Total equity | |||||||||||
Carrying value | 1,998.8 | 1,838.9 | |||||||||
Net earnings (loss) attributable to non-controlling interests | 44.3 | (287.6) | |||||||||
Non-insurance companies | Restaurants and retail | |||||||||||
Total equity | |||||||||||
Carrying value | 494.3 | 469.7 | |||||||||
Net earnings (loss) attributable to non-controlling interests | $ 11.8 | $ (51.2) | |||||||||
Non-insurance companies | Fairfax India Holdings Corporation (Fairfax India) | |||||||||||
Total equity | |||||||||||
Minority voting percentage | 6.10% | 6.60% | |||||||||
Carrying value | $ 1,133.1 | $ 1,130.9 | |||||||||
Net earnings (loss) attributable to non-controlling interests | $ 72.7 | $ (29.4) | |||||||||
Non-insurance companies | Thomas Cook (India) Limited (Thomas Cook India) | |||||||||||
Total equity | |||||||||||
Minority voting percentage | 33.20% | 33.10% | |||||||||
Carrying value | $ 56.3 | $ 69.4 | |||||||||
Net earnings (loss) attributable to non-controlling interests | (16.8) | (23.5) | |||||||||
Non-insurance companies | All other | |||||||||||
Total equity | |||||||||||
Carrying value | 315.1 | 168.9 | |||||||||
Net earnings (loss) attributable to non-controlling interests | $ (23.4) | $ (183.5) | |||||||||
Non-insurance companies | Fairfax India Holdings Corporation (Fairfax India) | Anchorage | |||||||||||
Total equity | |||||||||||
Proceeds from sale of equity interest in subsidiary | $ 107.4 |
Total Equity - Other Net Change
Total Equity - Other Net Changes In Capitalization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
As presented in other net changes in capitalization in the consolidated statement of changes in equity | $ 1,779.8 | $ (3.6) |
Common shareholders' equity | ||
Other | 91.8 | 22.2 |
As presented in other net changes in capitalization in the consolidated statement of changes in equity | 552.9 | (113.9) |
Non-controlling interests | ||
Other | (95.3) | 22.3 |
As presented in other net changes in capitalization in the consolidated statement of changes in equity | 1,226.9 | 110.3 |
Non-controlling interests | Fairfax consolidated internal investment funds | ||
Third party's net investment | 26.2 | 93.7 |
Odyssey Group Holdings, Inc. (Odyssey Group) | Common shareholders' equity | ||
Sale (acquisition) of non-controlling interests | 429.1 | |
Odyssey Group Holdings, Inc. (Odyssey Group) | Non-controlling interests | ||
Sale (acquisition) of non-controlling interests | 550 | |
Brit Limited (Brit) | Common shareholders' equity | ||
Sale (acquisition) of non-controlling interests | 115.4 | (47.8) |
Brit Limited (Brit) | Non-controlling interests | ||
Sale (acquisition) of non-controlling interests | 296.7 | (189.6) |
Farmers Edge and Boat Rocker | Common shareholders' equity | ||
Initial public offerings and related capital transactions | (3.1) | |
Farmers Edge and Boat Rocker | Non-controlling interests | ||
Initial public offerings and related capital transactions | 242.6 | |
Fairfax India Holdings Corporation (Fairfax India) | Common shareholders' equity | ||
Fairfax India's sale of an equity interest in Anchorage | 21.8 | |
Share repurchases | (12.5) | 0.3 |
Fairfax India Holdings Corporation (Fairfax India) | Non-controlling interests | ||
Fairfax India's sale of an equity interest in Anchorage | 107.4 | |
Share repurchases | (114.3) | (29.1) |
Allied World Assurance Company Holdings, Ltd (Allied World) | Common shareholders' equity | ||
Dividends paid to non-controlling interests | 89.6 | 88.6 |
Allied World Assurance Company Holdings, Ltd (Allied World) | Non-controlling interests | ||
Dividends paid to non-controlling interests | (89.6) | (88.6) |
Brit Limited (Brit) | Ki Insurance | Non-controlling interests | ||
Third party's net investment | $ 124 | $ 124.4 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per Share | ||
Net earnings attributable to shareholders of Fairfax | $ 3,401.1 | $ 218.4 |
Preferred share dividends | (44.5) | (44) |
Net earnings attributable to common shareholders - basic and diluted | $ 3,356.6 | $ 174.4 |
Weighted average common shares outstanding - basic (in shares) | 25,953,114 | 26,446,939 |
Share-based payment awards (in shares) | 1,503,931 | 1,273,250 |
Weighted average common shares outstanding - diluted (in shares) | 27,457,045 | 27,720,189 |
Net earnings per common share - basic (in dollars per share) | $ 129.33 | $ 6.59 |
Net earnings per common share - diluted (in dollars per share) | $ 122.25 | $ 6.29 |
Income Taxes - Provision for (R
Income Taxes - Provision for (Recovery of) Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax: | ||
Current year expense | $ 401.6 | $ 172.6 |
Adjustments to prior years' income taxes | (14.6) | (23.8) |
Current income tax | 387 | 148.8 |
Deferred income tax: | ||
Origination and reversal of temporary differences | 313.5 | 51.1 |
Adjustments to prior years' deferred income taxes | 18.9 | 15.4 |
Other | 6.6 | (8.6) |
Deferred income tax | 339 | 57.9 |
Provision for income taxes | $ 726 | $ 206.7 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Taxes by Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | ||
Earnings (loss) before income taxes | $ 4,392.6 | $ 244.1 |
Provision for income taxes | 726 | 206.7 |
Net earnings | 3,666.6 | 37.4 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Earnings (loss) before income taxes | 858.8 | 212.6 |
Provision for income taxes | 191.6 | 121 |
Net earnings | 667.2 | 91.6 |
United States | ||
Disclosure of geographical areas [line items] | ||
Earnings (loss) before income taxes | 974.5 | (110.8) |
Provision for income taxes | 238.6 | 31.4 |
Net earnings | 735.9 | (142.2) |
United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Earnings (loss) before income taxes | 157.3 | (221.4) |
Provision for income taxes | 18.7 | 5.7 |
Net earnings | 138.6 | (227.1) |
Other countries | ||
Disclosure of geographical areas [line items] | ||
Earnings (loss) before income taxes | 2,402 | 363.7 |
Provision for income taxes | 277.1 | 48.6 |
Net earnings | $ 2,124.9 | $ 315.1 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Canadian statutory income tax rate | 26.50% | 26.50% |
Provision for income taxes at the Canadian statutory income tax rate | $ 1,164 | $ 64.7 |
Non-taxable investment income | (149.4) | (108.3) |
Tax rate differential on income and losses outside Canada | 399.1 | 5.2 |
Change in unrecorded tax benefit of losses and temporary differences | 67.2 | 172.8 |
Change in tax rate for deferred income taxes | 0.3 | (5.7) |
Recovery relating to prior years | 4.3 | (8.4) |
Foreign exchange effect | (23) | 40.9 |
Other including permanent differences | 61.7 | 45.5 |
Provision for income taxes | 726 | 206.7 |
Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax rate differential on income and losses outside Canada | (399.1) | 5.2 |
Provision for income taxes | $ 191.6 | $ 121 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-taxable investment income | $ 149.4 | $ 108.3 |
Tax rate differential on income and losses incurred outside Canada | 399.1 | 5.2 |
Change in unrecorded tax benefit of losses and temporary differences | 67.2 | 172.8 |
Deferred tax assets | 522.4 | 713.9 |
Other including permanent differences | 61.7 | 45.5 |
Unremitted earnings of subsidiaries | 7,600 | 5,100 |
Tax effect of impairment of goodwill | 8 | |
Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax rate differential on income and losses incurred outside Canada | (399.1) | 5.2 |
Deferred tax assets | 65.6 | 63.3 |
Unused tax losses | 2,089.3 | 2,102.8 |
United States | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 24.2 | 54.7 |
Unused tax losses | 109.4 | 46.1 |
Unused foreign tax credits | 44.7 | 43 |
United Kingdom | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 5.5 | 53.9 |
Europe | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses | 488.8 | 537.6 |
Operating And Capital Losses, And U.S. Foreign Tax Credits | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 875.9 | 837.8 |
Allied World Assurance Company Holdings, Ltd (Allied World) | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 22 | |
Unused tax losses | $ 251.4 | $ 338.8 |
Income Taxes - Income Taxes Ref
Income Taxes - Income Taxes Refundable and Payable (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes | |||
Income taxes refundable | $ 58.3 | $ 88.7 | |
Income taxes payable | (175) | (64.5) | |
Net income taxes refundable (payable) | $ (116.7) | $ 24.2 | $ 90.6 |
Income Taxes - Changes in Net I
Income Taxes - Changes in Net Income Taxes (Payable) Refundable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Receivable (Payable) [Roll Forward] | ||
Balance - January 1 | $ 24.2 | $ 90.6 |
Amounts recorded in the consolidated statements of earnings | (387) | (148.8) |
Payments made during the year | 288.7 | 63.3 |
Acquisitions of subsidiaries | (54.5) | (0.3) |
Deconsolidation of subsidiary | 7.6 | |
Foreign exchange effect and other | 11.9 | 11.8 |
Balance - December 31 | $ (116.7) | $ 24.2 |
Income Taxes - Changes in Defer
Income Taxes - Changes in Deferred Net Income Tax Asset (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | $ 357.5 | $ 375.9 |
Amounts recorded in the consolidated statement of earnings | (339) | (57.9) |
Amounts recorded in total equity | (19.2) | 26.1 |
Acquisitions of subsidiaries | (74.1) | 6 |
Deconsolidation of non-insurance subsidiaries | 2.6 | 1.8 |
Foreign exchange effect and other | (4.2) | 5.6 |
Deferred tax asset, ending balance | (76.4) | 357.5 |
Operating and capital losses | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | 236.3 | 119.2 |
Amounts recorded in the consolidated statement of earnings | (3.5) | 105 |
Amounts recorded in total equity | 17.5 | 0.4 |
Acquisitions of subsidiaries | (4.2) | (0.1) |
Deconsolidation of non-insurance subsidiaries | (7.5) | (0.5) |
Foreign exchange effect and other | (8.6) | 12.3 |
Deferred tax asset, ending balance | 230 | 236.3 |
Provision for losses and loss adjustment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | 168.8 | 145.3 |
Amounts recorded in the consolidated statement of earnings | 35.6 | 22.5 |
Foreign exchange effect and other | (0.2) | 1 |
Deferred tax asset, ending balance | 204.2 | 168.8 |
Provision for unearned premiums | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | 141.7 | 119.9 |
Amounts recorded in the consolidated statement of earnings | 46 | 21.8 |
Deferred tax asset, ending balance | 187.7 | 141.7 |
Deferred premium acquisition costs | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | (116.1) | (96.9) |
Amounts recorded in the consolidated statement of earnings | (39.4) | (19.3) |
Acquisitions of subsidiaries | 7.9 | |
Foreign exchange effect and other | (0.2) | 0.1 |
Deferred tax asset, ending balance | (147.8) | (116.1) |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | (389.5) | (428.2) |
Amounts recorded in the consolidated statement of earnings | (19.5) | 37.9 |
Acquisitions of subsidiaries | (10.3) | |
Deconsolidation of non-insurance subsidiaries | 7.8 | |
Foreign exchange effect and other | (1.6) | 0.8 |
Deferred tax asset, ending balance | (413.1) | (389.5) |
Investments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | 23.9 | 128 |
Amounts recorded in the consolidated statement of earnings | (339.2) | (110.8) |
Amounts recorded in total equity | 0.8 | 0.6 |
Acquisitions of subsidiaries | (98.9) | |
Foreign exchange effect and other | (1.1) | 6.1 |
Deferred tax asset, ending balance | (414.5) | 23.9 |
Tax credits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | 174.8 | 211 |
Amounts recorded in the consolidated statement of earnings | 32.3 | (36) |
Acquisitions of subsidiaries | 0.1 | |
Foreign exchange effect and other | 6.5 | (0.3) |
Deferred tax asset, ending balance | 213.6 | 174.8 |
Other tax differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax asset, beginning balance | 117.6 | 177.6 |
Amounts recorded in the consolidated statement of earnings | (51.3) | (79) |
Amounts recorded in total equity | (37.5) | 25.1 |
Acquisitions of subsidiaries | 31.4 | 6 |
Deconsolidation of non-insurance subsidiaries | 2.3 | 2.3 |
Foreign exchange effect and other | 1 | (14.4) |
Deferred tax asset, ending balance | $ 63.5 | $ 117.6 |
Statutory Requirements (Details
Statutory Requirements (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 17, 2021USD ($) | Jun. 17, 2021SGD ($) | |
Statutory Requirements [Line Items] | ||||
Common share dividends | $ 427.5 | $ 441.3 | ||
Dividend capacity available | 1,997.3 | |||
Insurance and reinsurance companies. | ||||
Statutory Requirements [Line Items] | ||||
Common share dividends | 429.5 | $ 239.7 | ||
Investments in subsidiaries | $ 102.9 | $ 138 | ||
Allied World Assurance Company Holdings, Ltd (Allied World) | ||||
Statutory Requirements [Line Items] | ||||
Dividend capacity available | 1,014.2 | |||
Odyssey Group Holdings, Inc. (Odyssey Group) | ||||
Statutory Requirements [Line Items] | ||||
Dividend capacity available | 400.4 | |||
Northbridge Financial Corporation (Northbridge) | ||||
Statutory Requirements [Line Items] | ||||
Dividend capacity available | 326.6 | |||
Crum & Forster Holdings Corp. (Crum & Forster) | ||||
Statutory Requirements [Line Items] | ||||
Dividend capacity available | 185.3 | |||
Zenith National Insurance Corp. (Zenith National) | ||||
Statutory Requirements [Line Items] | ||||
Dividend capacity available | $ 70.8 |
Contingencies and Commitments (
Contingencies and Commitments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Disclosure of contingent liabilities [line items] | |
Capital commitments | $ 762.5 |
Securities | Lloyd's participants | |
Disclosure of contingent liabilities [line items] | |
Financial assets pledged as liabilities | 1,100 |
Financial assets at fair value | Cash and cash equivalents. | Lloyd's participants | |
Disclosure of contingent liabilities [line items] | |
Financial assets pledged as liabilities | 278.8 |
Financial assets at fair value | Securities | Lloyd's participants | |
Disclosure of contingent liabilities [line items] | |
Financial assets pledged as liabilities | $ 1,624.1 |
Pensions and Post Retirement _3
Pensions and Post Retirement Benefits - Funded Status of Defined Benefit Pension and Post Retirement Plans (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted average assumptions used to determine benefit obligations: | ||
Pension deficits | $ 253.9 | $ 351.9 |
Pension surpluses | 113.8 | 48.8 |
Defined benefit pension plans | ||
Pensions and Post Retirement Benefits | ||
Benefit obligation | (1,070.9) | (914.8) |
Fair value of plan assets | 1,014.7 | 700.9 |
Net accrued liability | $ (56.2) | $ (213.9) |
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate | 2.60% | 2.20% |
Rate of compensation increase | 2.20% | 2.60% |
Pension deficits | $ 170 | $ 262.7 |
Pension surpluses | 113.8 | 48.8 |
Post retirement benefit plans | ||
Pensions and Post Retirement Benefits | ||
Benefit obligation | (83.9) | (89.2) |
Net accrued liability | $ (83.9) | $ (89.2) |
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate | 3.10% | 2.60% |
Rate of compensation increase | 3.70% | 3.40% |
Health care cost trend | 3.60% | 3.50% |
Pensions and Post Retirement _4
Pensions and Post Retirement Benefits - Pension and Post Retirement Expenses Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pensions and Post Retirement Benefits | ||
Employee benefits | $ 462.2 | $ 398.2 |
Pension and post retirement benefit expenses | ||
Pensions and Post Retirement Benefits | ||
Defined benefit pension plan expense | 25.8 | 24.3 |
Defined contribution pension plan expense | 57.8 | 53.7 |
Defined benefit post retirement plan expense (recovery) | 2 | (39.8) |
Employee benefits | $ 85.6 | 38.2 |
Post retirement benefit plans | Odyssey Group Holdings, Inc. (Odyssey Group) | ||
Pensions and Post Retirement Benefits | ||
Employee benefits | $ 48.5 |
Pensions and Post Retirement _5
Pensions and Post Retirement Benefits - Pre-tax Actuarial Gains and (Losses) Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pensions and Post Retirement Benefits | ||
Defined benefit post retirement plans - actuarial net gains (losses) on benefit obligations | $ 115.6 | $ (88.3) |
Defined benefit pension plans | ||
Pensions and Post Retirement Benefits | ||
Actuarial net gains on plan assets and change in asset ceiling | 78.6 | 17.6 |
Actuarial net gains (losses) on benefit obligations | 33.8 | (101.5) |
Defined benefit post retirement plans - actuarial net gains (losses) on benefit obligations | 112.4 | (83.9) |
Post retirement benefit plans | ||
Pensions and Post Retirement Benefits | ||
Actuarial net gains (losses) on benefit obligations | $ 3.2 | $ (4.4) |
Pensions and Post Retirement _6
Pensions and Post Retirement Benefits - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pensions and Post Retirement Benefits | |||
Employer contributions | $ 45.6 | $ 80.3 | |
Expected employer contributions | $ 18.1 |
Leases - Changes in Right-of-Us
Leases - Changes in Right-of-Use Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes In Right-Of-Use Assets [Roll Forward] | ||
Balance - January 1 | $ 1,008 | $ 1,020.6 |
Additions | 136 | 182.1 |
Disposals | (61) | (23) |
Depreciation | (181.3) | (186.9) |
Acquisitions of subsidiaries (note 23) | 15 | 20.1 |
Deconsolidation of subsidiaries (note 23) | (148.1) | |
Foreign exchange effect and other(3) | (8.8) | (4.9) |
Balance - December 31 (note 13) | 759.8 | 1,008 |
Insurance and reinsurance companies. | ||
Changes In Right-Of-Use Assets [Roll Forward] | ||
Balance - January 1 | 396.1 | 385.4 |
Additions | 44 | 81.5 |
Disposals | (41.2) | (3.1) |
Depreciation | (68.3) | (68.9) |
Acquisitions of subsidiaries (note 23) | 0.9 | |
Deconsolidation of subsidiaries (note 23) | (1.4) | |
Foreign exchange effect and other(3) | (1.3) | 1.2 |
Balance - December 31 (note 13) | 328.8 | 396.1 |
Non-insurance companies. | ||
Changes In Right-Of-Use Assets [Roll Forward] | ||
Balance - January 1 | 611.9 | 635.2 |
Additions | 92 | 100.6 |
Disposals | (19.8) | (19.9) |
Depreciation | (113) | (118) |
Acquisitions of subsidiaries (note 23) | 14.1 | 20.1 |
Deconsolidation of subsidiaries (note 23) | (146.7) | |
Foreign exchange effect and other(3) | (7.5) | (6.1) |
Balance - December 31 (note 13) | $ 431 | $ 611.9 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | $ 1,356.3 | $ 1,692.8 |
Lease liabilities, discounted (note 14) | $ 1,140.7 | $ 1,452.1 |
Weighted average incremental borrowing rate | 4.30% | 4.40% |
Due in 1 year or less | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | $ 251 | $ 291.6 |
One to two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 215.7 | 252.1 |
Two to three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 188.4 | 216.3 |
Three to four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 167.4 | 185.2 |
Four to five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 141.4 | 161.2 |
More than five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 392.4 | 586.4 |
Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 443.5 | 536 |
Lease liabilities, discounted (note 14) | $ 384.2 | $ 456.8 |
Weighted average incremental borrowing rate | 3.80% | 4.20% |
Insurance and reinsurance companies. | Due in 1 year or less | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | $ 77.4 | $ 78.7 |
Insurance and reinsurance companies. | One to two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 67.6 | 72.5 |
Insurance and reinsurance companies. | Two to three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 58.6 | 64.3 |
Insurance and reinsurance companies. | Three to four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 52 | 56.5 |
Insurance and reinsurance companies. | Four to five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 45.1 | 50.6 |
Insurance and reinsurance companies. | More than five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 142.8 | 213.4 |
Non-insurance companies. | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 912.8 | 1,156.8 |
Lease liabilities, discounted (note 14) | $ 756.5 | $ 995.3 |
Weighted average incremental borrowing rate | 4.50% | 4.50% |
Non-insurance companies. | Due in 1 year or less | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | $ 173.6 | $ 212.9 |
Non-insurance companies. | One to two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 148.1 | 179.6 |
Non-insurance companies. | Two to three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 129.8 | 152 |
Non-insurance companies. | Three to four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 115.4 | 128.7 |
Non-insurance companies. | Four to five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | 96.3 | 110.6 |
Non-insurance companies. | More than five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Lease liabilities, undiscounted | $ 249.6 | $ 373 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Interest expense on lease liabilities | $ 57.9 | $ 62.8 |
Short-term, low value and other lease costs | 19.1 | 46.5 |
Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Lease concessions, COVID related | $ 28.9 | $ 15.8 |
Leases - Maturity of Finance Le
Leases - Maturity of Finance Lease Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | $ 307.7 | $ 352.4 |
Unearned finance income | 41.6 | 47 |
Finance lease receivables (note 13) | 266.1 | 305.4 |
Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 10.9 | 10 |
Unearned finance income | 1.5 | 1.5 |
Finance lease receivables (note 13) | 9.4 | 8.5 |
Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 296.8 | 342.4 |
Unearned finance income | 40.1 | 45.5 |
Finance lease receivables (note 13) | 256.7 | 296.9 |
Due in 1 year or less | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 64.5 | 67.2 |
Due in 1 year or less | Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 2.5 | 1.8 |
Due in 1 year or less | Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 62 | 65.4 |
One to two years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 55.3 | 61.1 |
One to two years | Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 2.3 | 1.8 |
One to two years | Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 53 | 59.3 |
Two to three years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 46 | 51.2 |
Two to three years | Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 1.3 | 1.6 |
Two to three years | Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 44.7 | 49.6 |
Three to four years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 40.3 | 42.7 |
Three to four years | Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 1 | 0.7 |
Three to four years | Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 39.3 | 42 |
Four to five years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 34.3 | 36.3 |
Four to five years | Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 1 | 0.7 |
Four to five years | Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 33.3 | 35.6 |
More than five years | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 67.3 | 93.9 |
More than five years | Insurance and reinsurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | 2.8 | 3.4 |
More than five years | Non-insurance companies. | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease receivables, undiscounted | $ 64.5 | $ 90.5 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Sale of non-controlling interest in Odyssey Group (Details) - Odyssey Group Holdings, Inc. (Odyssey Group) $ in Millions | Dec. 15, 2021USD ($) |
Acquisitions and Divestitures | |
Percent of ownership interests sold | 9.99% |
Subsidiary of Canada Pension Plan Investment Board ("CPPIB") and OMERS | |
Acquisitions and Divestitures | |
Percent of ownership interests sold | 9.99% |
Cash transferred | $ 900 |
Equity gain | $ 429.1 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Sale of non-controlling interest in Brit (Details) - OMERS - Brit Limited (Brit) $ in Millions | Aug. 27, 2021USD ($) |
Acquisitions and Divestitures | |
Percent of ownership interests sold | 13.90% |
Cash transferred | $ 375 |
Equity gain | $ 115.4 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Sale of RiverStone Barbados (Details) - USD ($) $ in Millions | Aug. 23, 2021 | Dec. 31, 2021 | Feb. 08, 2021 | Dec. 31, 2020 |
Acquisitions and Divestitures | ||||
Derivative financial assets | $ 581.8 | $ 382.7 | ||
Hamblin Watsa | ||||
Acquisitions and Divestitures | ||||
Sale of securities assured value | 120.8 | |||
Asset Value Loan Notes | ||||
Acquisitions and Divestitures | ||||
Guarantee value of securities | 1,100 | |||
Derivative financial assets | 103.8 | |||
Net gain on investments | 103.8 | |||
CVC | Asset Value Loan Notes | ||||
Acquisitions and Divestitures | ||||
Guarantee value of securities | $ 1,300 | |||
CVC | RiverStone Barbados | ||||
Acquisitions and Divestitures | ||||
Proportion of ownership interest in joint venture disposed of | 60.00% | |||
CVC | RiverStone Barbados | OMERS | ||||
Acquisitions and Divestitures | ||||
Proportion of ownership interest in joint venture disposed of | 40.00% | |||
CVC | RiverStone Barbados | ||||
Acquisitions and Divestitures | ||||
Consideration paid | $ 695.7 | |||
Cash transferred | 462 | |||
Purchase consideration | 200 | |||
Notional amount | $ 200 | |||
Gains (losses) on exchange differences on translation, before tax | (2.1) | |||
Contingent consideration recognised as of acquisition date | $ 235.7 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Sale of Toys "R" Us Canada (Details) - Aug. 19, 2021 - Non-insurance companies. $ in Millions, $ in Millions | USD ($) | CAD ($) |
Acquisitions and Divestitures | ||
Proceeds from sales of investment property | $ 90.3 | $ 115.7 |
Net gain on investments | $ 85.7 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Privatization of Mosaic Capital (Details) - Aug. 05, 2021 - Mosaic Capital Corporation (Mosaic Capital) $ in Millions, $ in Millions | USD ($) | CAD ($) | CAD ($) |
Acquisitions and Divestitures | |||
Exchange amount of cash | $ 10.7 | $ 13.3 | |
Debentures, consideration received under privatization | 130.8 | $ 163.3 | |
Investments in privatized company | $ 4 | $ 5 | |
Proportion of ownership interest in subsidiary | 20.00% | 20.00% |
Acquisitions and Divestitures_6
Acquisitions and Divestitures - Acquisition of Eurolife FFH Insurance Group Holdings S.A. (Details) € in Millions, $ in Millions | Jul. 14, 2021USD ($) | Jul. 14, 2021EUR (€) | Jul. 13, 2021 |
Eurolife | |||
Acquisitions and Divestitures | |||
Percentage of interests acquired | 80.00% | 80.00% | 50.00% |
Amount of exercise of call option | $ 127.3 | ||
Cash transferred | $ 142.7 | € 120.7 | |
Proportion of ownership interest in joint venture | 50.00% | ||
Equity interests issued in combination | $ 450 | ||
Net gain on investments | 130.5 | ||
Assets: | |||
Insurance contract receivables | 11.6 | ||
Portfolio investments | 3,653.9 | ||
Recoverable from reinsurers | 18.6 | ||
Deferred income tax assets | 32.6 | ||
Intangible assets | 45.5 | ||
Other assets | 616.3 | ||
Total Assets | 4,378.5 | ||
Liabilities: | |||
Trade and other payables recognised as of acquisition date | 273.2 | ||
Insurance contract payables | 529 | ||
Insurance contract liabilities | 2,751.4 | ||
Deferred income tax liabilities | 100.9 | ||
Total Liabilities | 3,654.5 | ||
Purchase consideration | 720 | ||
Excess of fair value of net assets acquired over purchase consideration | 4 | ||
Fair value of assets acquired and liabilities | 4,378.5 | ||
Cash and cash equivalents | $ 1,433.3 | ||
Ownership percentage | 20.00% | ||
Eurolife with the non-controlling interests | |||
Acquisitions and Divestitures | |||
Percentage of interests acquired | 100.00% | 100.00% | |
Distribution agreement with Eurobank | |||
Assets: | |||
Intangible assets | $ 29 | ||
Unit-linked life insurance contracts | |||
Assets: | |||
Portfolio investments | 532.1 | ||
Eurobank | |||
Liabilities: | |||
Redemption liability | $ 124.9 | ||
Proportion of ownership interests held by non-controlling interests | 20.00% |
Acquisitions and Divestitures_7
Acquisitions and Divestitures - Additional investment in Singapore Reinsurance Corporation Limited (Details) - Insurance and reinsurance companies. $ in Millions, $ in Millions | Aug. 03, 2021 | Jun. 17, 2021USD ($) | Jun. 16, 2021 | Jun. 17, 2021SGD ($) |
Acquisitions and Divestitures | ||||
Ownership percentage in equity method investment | 100.00% | 94.00% | 28.20% | |
Investments in subsidiaries | $ 102.9 | $ 138 |
Acquisitions and Divestitures_8
Acquisitions and Divestitures - Fairfax India's sale of Privi Speciality Chemicals Limited (Details) - Privi Speciality Chemicals Limited $ in Millions, ₨ in Billions | Apr. 29, 2021USD ($) | Apr. 29, 2021INR (₨) |
Acquisitions and Divestitures | ||
Proportion of ownership interest in joint venture disposed of | 48.80% | 48.80% |
Consideration paid | $ 164.8 | ₨ 12.2 |
Net gain on investments | $ 94.9 |
Acquisitions and Divestitures_9
Acquisitions and Divestitures - Fairfax Africa transaction with Helios Holdings Limited (Details) - USD ($) $ in Millions | Aug. 19, 2021 | Dec. 08, 2020 | Dec. 07, 2020 |
Non-insurance companies. | |||
Acquisitions and Divestitures | |||
Net gain on investments | $ 85.7 | ||
Helios Fairfax Partners Corporation | |||
Acquisitions and Divestitures | |||
Net gain on investments | $ (61.5) | ||
Fairfax Africa | Non-insurance companies. | Helios Fairfax Partners Corporation | |||
Acquisitions and Divestitures | |||
Net gain on investments | $ (61.5) | ||
Fairfax Africa | Helios Fairfax Partners Corporation | Non-insurance companies. | |||
Acquisitions and Divestitures | |||
Percentage of interests acquired | 32.30% | ||
Helios Holding Limited | Fairfax Africa | |||
Acquisitions and Divestitures | |||
Percentage of interests acquired | 45.90% | ||
Helios Holding Limited | Fairfax Africa | Atlas Mara Limited | |||
Acquisitions and Divestitures | |||
Percentage of interests acquired | 42.30% | ||
Consideration paid | $ 40 |
Acquisitions and Divestiture_10
Acquisitions and Divestitures - Acquisition of Horizon North Logistics (Details) - Horizon North - Dexterra | May 29, 2020 |
Acquisitions and Divestitures | |
Ownership percentage in equity method investment | 100.00% |
Percentage of common shares acquired | 49.00% |
Acquisitions and Divestiture_11
Acquisitions and Divestitures - Contribution of European Run-off to a joint venture (Details) - European Run-off $ in Millions | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) |
Acquisitions and Divestitures | ||
Net gain on investments | $ 243.4 | |
Proportion of ownership interest in joint venture disposed of | 40.00% | |
Gain (loss) recognised as result of remeasuring to fair value equity interest in acquiree held by acquirer before business combination | $ 35.6 | |
Ownership percentage | 60.00% | |
Gains (losses) on exchange differences on translation, before tax | $ (161.9) | |
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity attributable to owners of parent | 340.4 | |
Insurance and reinsurance companies. | ||
Acquisitions and Divestitures | ||
Portion of gains (losses) recognised when control of subsidiary is lost, attributable to derecognising regulatory deferral account balances in former subsidiary | 117.1 | |
RiverStone Barbados | ||
Acquisitions and Divestitures | ||
Cash transferred | $ 599.5 | $ 599.5 |
Percentage of interests acquired | 60.00% | 60.00% |
Consideration paid | $ 605 | |
OMERS | ||
Acquisitions and Divestitures | ||
Cash transferred | $ 599.5 | $ 599.5 |
Percentage of interests acquired | 40.00% | 40.00% |
Financial Risk Management - Und
Financial Risk Management - Underwriting Risk - Gross Premiums Written (Details) - USD ($) $ in Millions | Jul. 14, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross recoverable from reinsurers | $ 12,090.5 | $ 12,090.5 | $ 10,533.2 | $ 9,155.8 | |
Gross premiums written | $ 23,910.2 | 19,125.9 | |||
Asbestos claims, maximum settlement period (in years) | 40 years | ||||
Normalized net earnings, percent return on common shareholders' equity adjusted to pre-tax basis | 15.00% | ||||
Losses related to event cancellation and accident and health exposures | $ 55.1 | ||||
Losses related to business interruption and compensation exposures | 73.5 | ||||
Eurolife's life insurance operations | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | $ 0 | 114.2 | |||
Total revenues, excluding Life | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 23,796 | 19,125.9 | |||
Total revenues, excluding Life | Canada | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 2,611.4 | 2,084.2 | |||
Total revenues, excluding Life | United States | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 15,032 | 11,913.2 | |||
Total revenues, excluding Life | Asia | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 1,676.4 | 1,430.4 | |||
Total revenues, excluding Life | International | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 4,476.2 | 3,698.1 | |||
Property | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 8,132.6 | 6,852.5 | |||
Property | Canada | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 1,229.1 | 996.2 | |||
Property | United States | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 3,912.4 | 3,364.7 | |||
Property | Asia | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 849.2 | 735.4 | |||
Property | International | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 2,141.9 | 1,756.2 | |||
Casualty | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 13,732.3 | 10,437.9 | |||
Casualty | Canada | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 1,159 | 899.1 | |||
Casualty | United States | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 10,364 | 7,812.8 | |||
Casualty | Asia | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 549.8 | 446.6 | |||
Casualty | International | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 1,659.5 | 1,279.4 | |||
Specialty | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 1,931.1 | 1,835.5 | |||
Specialty | Canada | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 223.3 | 188.9 | |||
Specialty | United States | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 755.6 | 735.7 | |||
Specialty | Asia | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 277.4 | 248.4 | |||
Specialty | International | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 674.8 | 662.5 | |||
Insurance | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 18,004.4 | 14,309.4 | |||
Insurance | Canada | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 2,475.1 | 1,969.4 | |||
Insurance | United States | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 11,448.6 | 9,020.4 | |||
Insurance | Asia | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 739.7 | 682.2 | |||
Insurance | International | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 3,341 | 2,637.4 | |||
Reinsurance | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 5,791.6 | 4,816.5 | |||
Reinsurance | Canada | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 136.3 | 114.8 | |||
Reinsurance | United States | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 3,583.4 | 2,892.8 | |||
Reinsurance | Asia | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 936.7 | 748.2 | |||
Reinsurance | International | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross premiums written | 1,135.2 | 1,060.7 | |||
Ceded reinsurance contracts | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross recoverable from reinsurers | 12,090.5 | 12,090.5 | 10,533.2 | ||
Ceded reinsurance contracts | Property | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross recoverable from reinsurers | 1,717.4 | 1,717.4 | 1,470.7 | ||
Ceded reinsurance contracts | Casualty | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross recoverable from reinsurers | 3,487.7 | 3,487.7 | 2,361.2 | ||
Ceded reinsurance contracts | Specialty | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Gross recoverable from reinsurers | $ 423.4 | $ 423.4 | $ 429.5 |
Financial Risk Management - Cre
Financial Risk Management - Credit Risk - Aggregate Gross Credit Risk Exposure (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of credit risk exposure [line items] | ||
Assets | $ 86,645.4 | $ 74,054 |
Significant unobservable inputs (Level 3) | ||
Disclosure of credit risk exposure [line items] | ||
Assets | 8,343.2 | |
Private placement debt securities | Significant unobservable inputs (Level 3) | Market approach | ||
Disclosure of credit risk exposure [line items] | ||
Assets | 1,659.4 | 775.4 |
Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 58,343 | 48,517.3 |
Cash and short term investments | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 22,795.5 | 13,920.6 |
U.S. sovereign government | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 3,957.9 | $ 3,058.4 |
U.S. sovereign government | Credit risk | Low Risk Level | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 9.50% | 7.80% |
Other sovereign government rated AA/Aa or higher | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 1,074.7 | $ 311.2 |
All other sovereign government | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 2,194.9 | 649.3 |
Bonds, Canadian provincials | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 45 | 49.9 |
Bonds, U.S. states and municipalities | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 387.2 | 378.2 |
Bonds, Corporate and other | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 6,873.9 | $ 11,848.3 |
Bonds, Corporate and other | Credit risk | Low Risk Level | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 13.00% | 27.40% |
Receivable from counterparties to derivative contracts | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 158.9 | $ 222.4 |
Insurance contract receivables | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 6,883.2 | 5,816.1 |
Recoverable from reinsurers | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 12,090.5 | 10,533.2 |
Other assets [Member] | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 1,881.3 | 1,729.7 |
Bonds | ||
Disclosure of credit risk exposure [line items] | ||
Debt instruments held | 4,867.1 | |
Bonds | Canada | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | 614.6 | 16.5 |
Bonds | HONG KONG | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | 43.5 | 58.7 |
Bonds | SINGAPORE | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | 95.1 | 95.7 |
Bonds | Australia | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | 92.7 | 42 |
Bonds | GREECE | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | 844.7 | 1.2 |
Bonds | India | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | 192.5 | 22.5 |
Bonds | Spain | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | 297.5 | 233.9 |
Bonds | BRAZIL | ||
Disclosure of credit risk exposure [line items] | ||
Bonds issued by government | $ 415.4 | $ 40 |
Financial Risk Management - C_2
Financial Risk Management - Credit Risk - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of credit risk exposure [line items] | ||
Income taxes refundable | $ 58.3 | $ 88.7 |
Proceeds from issue of bonds, notes and debentures | 2,545.7 | 287.2 |
Assets associated with unit-linked insurance products | 637.1 | 0 |
Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 58,343 | $ 48,517.3 |
Capital And Surplus Requirement | $ 500 | |
Investment grade or better | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 65.10% | 80.30% |
AA or better | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 39.10% | 27.00% |
AAA/Aaa | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 36.10% | 22.10% |
A/A | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 12.80% | 25.10% |
BBB/Baa | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 13.20% | 28.20% |
BB/Ba | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 12.40% | 3.20% |
Unrated | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 21.30% | 15.80% |
Cash and short term investments | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 22,795.5 | $ 13,920.6 |
Financial assets pledged as liabilities | 14.3 | $ 116.4 |
Bonds, U.S. treasury | AAA/Aaa | ||
Disclosure of credit risk exposure [line items] | ||
Net purchases of bonds | 915.7 | |
Bonds, Canadian government | AAA/Aaa | ||
Disclosure of credit risk exposure [line items] | ||
Net purchases of bonds | $ 617.3 | |
Other than U.S., U.K., German, and Canadian sovereign government | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 6.50% | 8.00% |
Maximum exposure to credit risk | $ 3,444.5 | $ 3,474.4 |
Largest single issuer of corporate bonds | Credit risk | Blackberry Limited | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 1.00% | |
Maximum exposure to credit risk | $ 535.1 | |
Largest single issuer of corporate bonds | Credit risk | Atlas | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 1.30% | |
Maximum exposure to credit risk | $ 575.9 | |
Government securities | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets pledged as liabilities | 125.7 | 12.9 |
Recoverable from reinsurers | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 12,090.5 | $ 10,533.2 |
Recoverable from reinsurers | A Plus | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 7.50% | 8.00% |
Bonds, Corporate and other | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 6,873.9 | $ 11,848.3 |
Bonds, Corporate and other | AAA/Aaa | ||
Disclosure of credit risk exposure [line items] | ||
Proceeds from sale of bonds | 289.7 | |
Bonds, Corporate and other | A/A | ||
Disclosure of credit risk exposure [line items] | ||
Proceeds from sale of bonds | 2,192.6 | |
Bonds, Corporate and other | BBB/Baa | ||
Disclosure of credit risk exposure [line items] | ||
Proceeds from sale of bonds | 2,763.2 | |
Bonds, Corporate and other | BB/Ba | ||
Disclosure of credit risk exposure [line items] | ||
Net purchases of bonds | 826.9 | |
Bonds, Corporate and other | Unrated | ||
Disclosure of credit risk exposure [line items] | ||
Net purchases of bonds | $ 826.9 | |
Canada and United States | Cash and short term investments | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 82.70% | 86.70% |
Europe | Cash and short term investments | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 14.90% | 10.20% |
Other foreign countries | Cash and short term investments | Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Risk exposure percentage | 2.40% | 3.10% |
Financial Risk Management - C_3
Financial Risk Management - Credit Risk - Schedule of Issuer Credit Rating (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant unobservable inputs (Level 3) | |||
Disclosure of external credit grades [line items] | |||
Financial assets | $ 8,343.2 | $ 5,176.8 | $ 4,935.1 |
Private placement debt securities | Significant unobservable inputs (Level 3) | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 2,795.8 | 1,774.2 | $ 1,420.1 |
Private placement debt securities | Significant unobservable inputs (Level 3) | Market approach | |||
Disclosure of external credit grades [line items] | |||
Financial assets | $ 1,659.4 | $ 775.4 | |
Percentage of loan-to-value ratios | 60.00% | 60.00% | |
Chorus Aviation | |||
Disclosure of external credit grades [line items] | |||
Financial assets | $ 90.6 | $ 153 | |
Atlas | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 0 | 575.9 | |
Bonds | Blackberry Limited | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 535.1 | 438.6 | |
Bonds | Mosaic Capital Corporation (Mosaic Capital) | |||
Disclosure of external credit grades [line items] | |||
Financial assets | $ 129.3 | $ 0 | |
Credit risk | AAA/Aaa | |||
Disclosure of external credit grades [line items] | |||
Percent | 36.10% | 22.10% | |
Credit risk | AA/Aa | |||
Disclosure of external credit grades [line items] | |||
Percent | 3.00% | 4.90% | |
Credit risk | A/A | |||
Disclosure of external credit grades [line items] | |||
Percent | 12.80% | 25.10% | |
Credit risk | BBB/Baa | |||
Disclosure of external credit grades [line items] | |||
Percent | 13.20% | 28.20% | |
Credit risk | BB/Ba | |||
Disclosure of external credit grades [line items] | |||
Percent | 12.40% | 3.20% | |
Credit risk | B/B | |||
Disclosure of external credit grades [line items] | |||
Percent | 0.80% | 0.30% | |
Credit risk | Lower than B/B | |||
Disclosure of external credit grades [line items] | |||
Percent | 0.40% | 0.40% | |
Credit risk | Unrated | |||
Disclosure of external credit grades [line items] | |||
Percent | 21.30% | 15.80% | |
Credit risk | Total investment in debt instruments | |||
Disclosure of external credit grades [line items] | |||
Percent | 100.00% | 100.00% | |
At cost | Credit risk | AAA/Aaa | |||
Disclosure of external credit grades [line items] | |||
Financial assets | $ 5,248.2 | $ 3,574.3 | |
At cost | Credit risk | AA/Aa | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 435 | 779.1 | |
At cost | Credit risk | A/A | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 1,838.4 | 3,856.5 | |
At cost | Credit risk | BBB/Baa | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 1,749.9 | 4,157.4 | |
At cost | Credit risk | BB/Ba | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 1,840.9 | 489.6 | |
At cost | Credit risk | B/B | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 115 | 41.7 | |
At cost | Credit risk | Lower than B/B | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 58.4 | 62.4 | |
At cost | Credit risk | Unrated | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 2,935.3 | 2,458.9 | |
At cost | Credit risk | Total investment in debt instruments | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 14,221.1 | 15,419.9 | |
At fair value | Credit risk | AAA/Aaa | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 5,237.3 | 3,604.8 | |
At fair value | Credit risk | AA/Aa | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 437.7 | 805.1 | |
At fair value | Credit risk | A/A | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 1,865.5 | 4,086.6 | |
At fair value | Credit risk | BBB/Baa | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 1,914.6 | 4,590.8 | |
At fair value | Credit risk | BB/Ba | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 1,808.3 | 518.8 | |
At fair value | Credit risk | B/B | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 114.8 | 42.9 | |
At fair value | Credit risk | Lower than B/B | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 62.9 | 63.8 | |
At fair value | Credit risk | Unrated | |||
Disclosure of external credit grades [line items] | |||
Financial assets | 3,092.5 | 2,582.5 | |
At fair value | Credit risk | Total investment in debt instruments | |||
Disclosure of external credit grades [line items] | |||
Financial assets | $ 14,533.6 | $ 16,295.3 |
Financial Risk Management - C_4
Financial Risk Management - Credit Risk - Related Derivative Contract Counterparties (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Risk Management | ||
Total derivative assets | $ 158.9 | $ 222.4 |
Obligations that may be offset under net settlement arrangements | (9.6) | (32) |
Fair value of collateral deposited for the benefit of the company | (116.5) | (124.3) |
Excess collateral pledged by the company in favour of counterparties | 4.8 | 11.7 |
Initial margin not held in segregated third party custodian accounts | 5.6 | |
Net derivative counterparty exposure after net settlement and collateral arrangements | 37.6 | 83.4 |
Excess collateral pledged by counterparties | $ 22.5 | $ 5 |
Financial Risk Management - C_5
Financial Risk Management - Credit Risk - Gross Recoverable From Reinsurers Classified by Financial Strength (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | $ 12,090.5 | $ 10,533.2 | $ 9,155.8 |
Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 12,090.5 | 10,533.2 | |
Provision for uncollectible reinsurance | 8,946.2 | 7,947.3 | |
Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 12,269.2 | 10,688.8 | |
Provision for uncollectible reinsurance | 8,989.3 | 7,971.7 | |
Provision for uncollectible reinsurance | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 178.7 | 155.6 | $ 161.5 |
Provision for uncollectible reinsurance | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | (178.7) | (155.6) | |
Provision for uncollectible reinsurance | (43.1) | (24.4) | |
Credit risk | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 12,090.5 | 10,533.2 | |
Outstanding balances for which security is held | 1,381.6 | 1,256 | |
Net unsecured recoverable from reinsurers | 10,887.6 | 9,432.8 | |
Recoverable from reinsurers | 10,708.9 | 9,277.2 | |
Credit risk | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 12,269.2 | 10,688.8 | |
Credit risk | Provision for uncollectible reinsurance | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | (178.7) | (155.6) | |
Net unsecured recoverable from reinsurers | (178.7) | (155.6) | |
Credit risk | A Plus Plus | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 27.2 | 27.5 | |
Net unsecured recoverable from reinsurers | 541 | 446.4 | |
Credit risk | A Plus Plus | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 568.2 | 473.9 | |
Credit risk | A Plus | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 494.4 | 361.5 | |
Net unsecured recoverable from reinsurers | 5,411.5 | 4,882.7 | |
Credit risk | A Plus | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 5,905.9 | 5,244.2 | |
Credit risk | A | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 227.3 | 97.6 | |
Net unsecured recoverable from reinsurers | 3,672.5 | 2,975.3 | |
Credit risk | A | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 3,899.8 | 3,072.9 | |
Credit risk | A Minus | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 43.9 | 29.9 | |
Net unsecured recoverable from reinsurers | 328 | 329.2 | |
Credit risk | A Minus | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 371.9 | 359.1 | |
Credit risk | B Plus Plus | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 4.6 | 5.2 | |
Net unsecured recoverable from reinsurers | 46.2 | 50.7 | |
Credit risk | B Plus Plus | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 50.8 | 55.9 | |
Credit risk | B Plus | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 0.3 | ||
Net unsecured recoverable from reinsurers | 0.2 | 2.6 | |
Credit risk | B Plus | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 0.5 | 2.6 | |
Credit risk | B or lower | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 0.1 | 0.4 | |
Net unsecured recoverable from reinsurers | 20.1 | 15.6 | |
Credit risk | B or lower | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 20.2 | 16 | |
Credit risk | Not rated | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 576.7 | 726.9 | |
Net unsecured recoverable from reinsurers | 427.3 | 374.9 | |
Credit risk | Not rated | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | 1,004 | 1,101.8 | |
Credit risk | Pools and associations | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Outstanding balances for which security is held | 7.1 | 7 | |
Net unsecured recoverable from reinsurers | 440.8 | 355.4 | |
Credit risk | Pools and associations | Gross recoverable from reinsurers | Ceded reinsurance contracts | |||
Disclosure of credit risk exposure [line items] | |||
Gross recoverable from reinsurers | $ 447.9 | $ 362.4 |
Financial Risk Management - Liq
Financial Risk Management - Liquidity Risk - Narrative (Details) $ / shares in Units, $ in Millions, $ in Millions | Jan. 27, 2022USD ($)$ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Jan. 01, 2022CAD ($) | Feb. 26, 2021USD ($) | Dec. 31, 2019USD ($) |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Common share dividends | $ 427.5 | $ 441.3 | ||||
Dividend per share (in dollars per share) | $ / shares | $ 10 | $ 10 | ||||
Holding company cash and investments, net | $ 1,446.2 | $ 1,229.4 | ||||
Portfolio investments cash and investments, net | 51,576.6 | 41,942 | ||||
Borrowings | 7,753 | 8,814 | $ 7,232.6 | |||
RiverStone Barbados | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Borrowings | 1,100 | |||||
Net cash paid (received) for derivative closures and reset provisions | 103.8 | |||||
Commitments for 2022 | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Common share dividends | $ 249.9 | |||||
Dividend per share (in dollars per share) | $ / shares | $ 10 | |||||
Holding company | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Borrowings | 5,338.6 | 5,580.6 | 4,117.3 | |||
Notional amount | 5,385.2 | |||||
Insurance and reinsurance companies | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Common share dividends | 429.5 | 239.7 | ||||
Borrowings | 790.7 | 1,033.4 | 1,039.6 | |||
Non-insurance companies | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Borrowings | 1,623.7 | 2,200 | $ 2,075.7 | |||
Repayments of borrowings in next fiscal year | 584.4 | |||||
Revolving credit facility | Holding company | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Maximum borrowing capacity | 2,000 | |||||
Fairfax India 5.00% Unsecured Senior Notes Due 2028 | Insurance and reinsurance companies | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Notional amount | $ 58.4 | |||||
Fairfax India 5.00% Unsecured Senior Notes Due 2028 | Non-insurance companies | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Borrowings | 438.4 | 547.2 | ||||
Notional amount | $ 441.6 | $ 550 | $ 500 | |||
Interest rate | 5.00% | 5.00% | 5.00% | |||
AGT Floating Rate Secured Senior Credit Facility Due March 2023 | Non-insurance companies | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Borrowings | $ 625 | |||||
Fairfax India Holdings Corporation (Fairfax India) | Portfolio investments | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Investments lacking liquidity or inactively traded | $ 1,129.6 | $ 1,095.5 | ||||
Long and short equity and equity index total return swaps | Holding company | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Net cash paid (received) for derivative closures and reset provisions | 262.7 | 222.8 | ||||
Long and short equity and equity index total return swaps | Insurance and reinsurance companies | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Net cash from long equity total return swaps | $ 176.9 | $ (628.6) | ||||
Investments that may lack liquidity or are inactively traded | Liquidity risk | Insurance and reinsurance companies | ||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||
Risk exposure percentage | 12.70% | 11.30% |
Financial Risk Management - L_2
Financial Risk Management - Liquidity Risk - Financial Liabilities Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Insurance contract payables | $ 4,493.5 | $ 2,964 |
Liquidity risk | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 4,458.3 | 4,265.5 |
Insurance contract payables | 3,970.8 | 2,501.2 |
Provision for losses and loss adjustment expenses | 34,422.8 | 30,809.3 |
Provision for life policy benefits | 2,675.8 | |
Total financial liabilities | 55,508.1 | 48,419.5 |
Liquidity risk | Holding company and insurance and reinsurance companies | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 6,169 | 6,638.2 |
Borrowings - interest | 1,810.3 | 1,703.4 |
Liquidity risk | Non-insurance companies. | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 1,633.3 | 2,210.8 |
Borrowings - interest | 367.8 | 291.1 |
Liquidity risk | 3 months or less | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 1,586.6 | 1,464.8 |
Insurance contract payables | 1,026.7 | 775.6 |
Provision for losses and loss adjustment expenses | 2,925.1 | 2,880.5 |
Provision for life policy benefits | 72 | |
Total financial liabilities | 6,227 | 5,800.4 |
Liquidity risk | 3 months or less | Holding company and insurance and reinsurance companies | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 0.1 | 50.1 |
Borrowings - interest | 66 | 54.6 |
Liquidity risk | 3 months or less | Non-insurance companies. | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 512.2 | 547.6 |
Borrowings - interest | 38.3 | 27.2 |
Liquidity risk | 3 months to 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 821.6 | 816.6 |
Insurance contract payables | 1,970 | 1,493 |
Provision for losses and loss adjustment expenses | 7,033.9 | 6,111.7 |
Provision for life policy benefits | 162.7 | |
Total financial liabilities | 10,290.3 | 10,323.1 |
Liquidity risk | 3 months to 1 year | Holding company and insurance and reinsurance companies | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 0.2 | 892.7 |
Borrowings - interest | 193.8 | 204.2 |
Liquidity risk | 3 months to 1 year | Non-insurance companies. | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 72.2 | 761.6 |
Borrowings - interest | 35.9 | 43.3 |
Liquidity risk | 1 - 3 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 1,131.3 | 854.5 |
Insurance contract payables | 346.4 | 205.6 |
Provision for losses and loss adjustment expenses | 10,662.4 | 9,577.5 |
Provision for life policy benefits | 585 | |
Total financial liabilities | 13,898.8 | 12,127.3 |
Liquidity risk | 1 - 3 years | Holding company and insurance and reinsurance companies | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 283.1 | 664.7 |
Borrowings - interest | 520 | 479 |
Liquidity risk | 1 - 3 years | Non-insurance companies. | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 270.8 | 269.5 |
Borrowings - interest | 99.8 | 76.5 |
Liquidity risk | 3 - 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 399.1 | 454.3 |
Insurance contract payables | 16.1 | 13.5 |
Provision for losses and loss adjustment expenses | 5,391.2 | 4,753.5 |
Provision for life policy benefits | 575.7 | |
Total financial liabilities | 8,218.7 | 7,160.4 |
Liquidity risk | 3 - 5 years | Holding company and insurance and reinsurance companies | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 1,270.8 | 1,142.9 |
Borrowings - interest | 445.6 | 411.5 |
Liquidity risk | 3 - 5 years | Non-insurance companies. | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 41.3 | 344 |
Borrowings - interest | 78.9 | 40.7 |
Liquidity risk | More than five years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 519.7 | 675.3 |
Insurance contract payables | 611.6 | 13.5 |
Provision for losses and loss adjustment expenses | 8,410.2 | 7,486.1 |
Provision for life policy benefits | 1,280.4 | |
Total financial liabilities | 16,873.3 | 13,008.3 |
Liquidity risk | More than five years | Holding company and insurance and reinsurance companies | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 4,614.8 | 3,887.8 |
Borrowings - interest | 584.9 | 554.1 |
Liquidity risk | More than five years | Non-insurance companies. | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings - principal | 736.8 | 288.1 |
Borrowings - interest | $ 114.9 | $ 103.4 |
Financial Risk Management - L_3
Financial Risk Management - Liquidity Risk - Derivative Financial Liabilities (Details) - Liquidity risk - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | $ 152.9 | $ 189.4 |
3 months or less | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 74.7 | 108.4 |
3 months to 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 31.8 | 35.3 |
More than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 46.4 | 45.7 |
Equity total return swaps - long positions | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 1.9 | 18 |
Equity total return swaps - long positions | 3 months or less | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 1.8 | 8.3 |
Equity total return swaps - long positions | 3 months to 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 0.1 | 9.7 |
U.S. treasury bond forward contracts | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 0.8 | |
U.S. treasury bond forward contracts | 3 months to 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 0.8 | |
Foreign currency forward and swap contracts | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 77.4 | 136 |
Foreign currency forward and swap contracts | 3 months or less | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 26.4 | 74.3 |
Foreign currency forward and swap contracts | 3 months to 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 5 | 16.1 |
Foreign currency forward and swap contracts | More than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 46 | 45.6 |
Other derivative contracts | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 72.8 | 35.4 |
Other derivative contracts | 3 months or less | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 46.5 | 25.8 |
Other derivative contracts | 3 months to 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | 25.9 | 9.5 |
Other derivative contracts | More than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Derivative financial liabilities | $ 0.4 | $ 0.1 |
Financial Risk Management - Mar
Financial Risk Management - Market Risk - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Fair value | $ 14,533.6 | $ 16,295.3 |
Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Change in interest rate on investments | 2.00% | |
Increment change in interest rate on investments | 1.00% | |
Interest rate risk | Bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Fair value | $ 14,533.6 | 16,295.3 |
Bonds, U.S. Corporate | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Net proceeds | 4,867.1 | |
U.S. treasury bond forward contracts | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | $ 1,691.3 | $ 330.8 |
Financial Risk Management - M_2
Financial Risk Management - Market Risk - Potential Impact of Changes in Interest Rates on Fixed Asset Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. treasury bond forward contracts | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Notional amount | $ 1,691.3 | $ 330.8 |
Bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Fair value of fixed income portfolio, no change | 14,533.6 | 16,295.3 |
Interest rate risk | Bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Fair value of fixed income portfolio, 200 basis point increase | 13,984 | 15,540.5 |
Hypothetical $ change effect on net earnings, 200 basis point increase | $ (418.4) | $ (624.5) |
Hypothetical % change in fair value, 200 basis point increase | (3.80%) | (4.60%) |
Fair value of fixed income portfolio, 100 basis point increase | $ 14,239.6 | $ 15,889.8 |
Hypothetical $ change effect on net earnings, 100 basis point increase | $ (224.3) | $ (335.2) |
Hypothetical % change in fair value, 100 basis point increase | (2.00%) | (2.50%) |
Fair value of fixed income portfolio, no change | $ 14,533.6 | $ 16,295.3 |
Fair value of fixed income portfolio, 100 basis point decrease | 14,900.9 | 16,790.2 |
Hypothetical $ change effect on net earnings, 100 basis point decrease | $ 280.6 | $ 410 |
Hypothetical % change in fair value, 100 basis point decrease | 2.50% | 3.00% |
Fair value of fixed income portfolio, 200 basis point decrease | $ 15,327.9 | $ 17,348.4 |
Hypothetical $ change effect on net earnings, 200 basis point decrease | $ 607.5 | $ 871.6 |
Hypothetical % change in fair value, 200 basis point decrease | 5.50% | 6.50% |
Financial Risk Management - M_3
Financial Risk Management - Market Price Fluctuations - Narrative (Details) € in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2021EUR (€) | Mar. 29, 2021USD ($) | Mar. 29, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020EUR (€) | |
Equity price risk | Investment Portfolio With Ten Largest Issuers | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Common equity instrument | $ 6,048.7 | $ 4,981.5 | ||||||
Risk exposure percentage | 11.40% | 11.50% | 11.40% | 11.40% | 11.50% | 11.50% | ||
Currency risk | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Change in interest rate on investments | 10.00% | |||||||
Bottom of range | Equity price risk | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Change in interest rate on investments | 10.00% | 10.00% | ||||||
Top of range | Equity price risk | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Change in interest rate on investments | 20.00% | 20.00% | ||||||
3.95% Unsecured Senior Notes Due March 3, 2031 | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | $ 671.6 | |||||||
5.84% due October 14, 2022 (Cdn$450.0) | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | 670.6 | |||||||
4.50% due March 22, 2023 (Cdn$400.0) | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | 670.6 | |||||||
Non-insurance associates | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Fair value of investments in associates | $ 7,192.1 | $ 5,609.8 | ||||||
Eurobank Ergasias S.A | Equity price risk | Investment Portfolio With Single Largest Issuer | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Common equity instrument | $ 1,298.4 | $ 1,166.3 | ||||||
Risk exposure percentage | 2.40% | 2.70% | 2.40% | 2.40% | 2.70% | 2.70% | ||
Canada | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Gains (losses) on hedge of net investment in Canadian subsidiaries | $ (16.7) | $ (38) | ||||||
Canada | Unsecured senior notes | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | $ 2,800 | $ 671.6 | $ 850 | $ 2,796 | ||||
Borrowings at fair value | 2,364.6 | 2,397.6 | ||||||
Canada | 3.95% Unsecured Senior Notes Due March 3, 2031 | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | 850 | |||||||
Canada | 5.84% due October 14, 2022 (Cdn$450.0) | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | 846 | |||||||
Canada | 4.50% due March 22, 2023 (Cdn$400.0) | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | $ 846 | |||||||
Europe | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Gains (losses) on hedge of net investment in Canadian subsidiaries | 63.9 | (75.8) | ||||||
Europe | Unsecured senior notes | Hedges of net investment in foreign operations | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | € | € 750 | € 750 | ||||||
Borrowings at fair value | $ 926.3 | $ 1,023.9 |
Financial Risk Management - M_4
Financial Risk Management - Market Price Fluctuations - Equity and Equity Related Holdings (Details) $ in Millions, ₨ in Billions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2021INR (₨) | Dec. 31, 2020USD ($) | |
Disclosure of financial assets [line items] | |||
Market value | $ 581.8 | $ 382.7 | |
Net gains (losses) on investments | 3,445.1 | 313.1 | |
Divestitures and other net changes in capitalization | 809.2 | 139.8 | |
IIFL Finance Limited | |||
Disclosure of financial assets [line items] | |||
Divestitures and other net changes in capitalization | 113.7 | ₨ 8.6 | |
Net realized gains (losses) | 42 | ||
Equity total return swaps - long positions | |||
Disclosure of financial assets [line items] | |||
Notional amount | 1,082.8 | 1,788.3 | |
Market value | 96.1 | 144.3 | |
Net gains (losses) on investments | 243 | 216.7 | |
RiverStone Barbados AVLNs | |||
Disclosure of financial assets [line items] | |||
Notional amount | 1,250.1 | ||
Market value | 103.8 | ||
Equity total return swaps - short positions | |||
Disclosure of financial assets [line items] | |||
Net gains (losses) on investments | (528.6) | ||
Equity price risk | |||
Disclosure of financial assets [line items] | |||
Net equity exposures and financial effects, exposure/notional amount | 16,265.7 | 12,959.8 | |
Net equity exposures and financial effects, pre-tax earnings (loss) | 2,312.1 | (156.7) | |
Equity price risk | Investments in associates and subsidiary | |||
Disclosure of financial assets [line items] | |||
Notional amount | 7,192.1 | 5,609.8 | |
Total carrying value | 5,496.6 | 5,134.9 | |
Net gains (losses) on investments | 52.7 | 8.6 | |
Equity price risk | Deconsolidation of non-insurance companies | |||
Disclosure of financial assets [line items] | |||
Net gains (losses) on investments | 190.3 | (78.5) | |
Equity price risk | Common shares | |||
Disclosure of financial assets [line items] | |||
Notional amount | 5,845.5 | 4,939.7 | |
Common equity instrument, carrying value | 5,845.5 | 4,939.7 | |
Net gains (losses) on investments | 1,333.4 | 24.7 | |
Equity price risk | Preferred stocks - convertible | |||
Disclosure of financial assets [line items] | |||
Notional amount | 54.5 | 27.9 | |
Preferred equity instrument, carrying value | 54.5 | 27.9 | |
Net gains (losses) on investments | 2.8 | 4.4 | |
Equity price risk | Bonds - convertible | |||
Disclosure of financial assets [line items] | |||
Notional amount | 583.4 | 461.3 | |
Market value | 583.4 | 461.3 | |
Net gains (losses) on investments | 101.3 | 143.4 | |
Equity price risk | Equity hedges and long equity exposures | |||
Disclosure of financial assets [line items] | |||
Notional amount | 16,265.7 | 12,959.8 | |
Total equity and equity related holdings | 12,435.3 | 10,822.9 | |
Net gains (losses) on investments | 2,312.1 | 371.9 | |
Equity price risk | Equity total return swaps - long positions | |||
Disclosure of financial assets [line items] | |||
Notional amount | 1,082.8 | 1,788.3 | |
Market value | 94.2 | 126.3 | |
Net gains (losses) on investments | 407.5 | 325.6 | |
Equity price risk | Equity warrants and call options | |||
Disclosure of financial assets [line items] | |||
Notional amount | 257.3 | 132.8 | |
Market value | 257.3 | 132.8 | |
Net gains (losses) on investments | 114.2 | (56.3) | |
Equity price risk | RiverStone Barbados AVLNs | |||
Disclosure of financial assets [line items] | |||
Notional amount | 1,250.1 | ||
Common equity instrument, carrying value | 103.8 | ||
Net gains (losses) on investments | $ 109.9 | ||
Equity price risk | Equity hedges and short equity exposures | |||
Disclosure of financial assets [line items] | |||
Net gains (losses) on investments | (528.6) | ||
Equity price risk | Equity total return swaps - short positions | |||
Disclosure of financial assets [line items] | |||
Net gains (losses) on investments | $ (528.6) |
Financial Risk Management - M_5
Financial Risk Management - Market Price Fluctuations - Impact on Net Earnings (Details) - Equity price risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Fair value of equity and equity-related holdings, 20% increase | $ 10,861.1 | $ 8,799 |
Hypothetical $ change effect on net earnings, 20% increase | $ 1,549.7 | $ 1,227.5 |
Hypothetical % change in fair value, 20% increase | 19.70% | 19.70% |
Fair value of equity and equity-related holdings, 10% increase | $ 9,966.1 | $ 8,074.2 |
Hypothetical $ change effect on net earnings, 10% increase | $ 773.5 | $ 613.3 |
Hypothetical % change in fair value, 10% increase | 9.80% | 9.90% |
Fair value of equity and equity-related holdings, no change | $ 9,073.6 | $ 7,350 |
Hypothetical % change in fair value, no change | 0.00% | |
Fair value of equity and equity-related holdings, 10% decrease | $ 8,184.4 | 6,627.5 |
Hypothetical $ change effect on net earnings, 10% decrease | $ (770.6) | $ (611.6) |
Hypothetical % change in fair value, 10% decrease | (9.80%) | (9.80%) |
Fair value of equity and equity-related holdings, 20% decrease | $ 7,297.3 | $ 5,897.4 |
Hypothetical $ change effect on net earnings, 20% decrease | $ (1,538.8) | $ (1,228.8) |
Hypothetical % change in fair value, 20% decrease | (19.60%) | (19.80%) |
Financial Risk Management - M_6
Financial Risk Management - Market Price Fluctuations - Pre Tax Foreign Exchange (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Risk Management | ||
Investing activities | $ (122.3) | $ 105.4 |
Underwriting activities | 41.2 | (16.8) |
Foreign currency contracts | (12) | (33) |
Foreign currency net gains (losses) | $ (93.1) | $ 55.6 |
Financial Risk Management - M_7
Financial Risk Management - Market Price Fluctuations - Currency Appreciation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effect Of Currency Appreciation [Line Items] | ||
Pre-tax earnings (loss) | $ (123.6) | $ (4.8) |
Net earnings (loss) | (138.4) | (12.7) |
Pre-tax other comprehensive income (loss) | (729) | (542.2) |
Other comprehensive income (loss) | (677.3) | (495.7) |
Canadian dollar | ||
Effect Of Currency Appreciation [Line Items] | ||
Pre-tax earnings (loss) | 5.9 | (25.6) |
Net earnings (loss) | 1.7 | (25.1) |
Pre-tax other comprehensive income (loss) | (210.4) | (112.1) |
Other comprehensive income (loss) | (209.3) | (115.5) |
Euro | ||
Effect Of Currency Appreciation [Line Items] | ||
Pre-tax earnings (loss) | 31.4 | (35.2) |
Net earnings (loss) | 26.9 | (26.5) |
Pre-tax other comprehensive income (loss) | (64.1) | (17.4) |
Other comprehensive income (loss) | (40) | 13.7 |
British pound sterling | ||
Effect Of Currency Appreciation [Line Items] | ||
Pre-tax earnings (loss) | 41.6 | 58.3 |
Net earnings (loss) | 35.5 | 48.8 |
Pre-tax other comprehensive income (loss) | (50.1) | (56.4) |
Other comprehensive income (loss) | (49.1) | (55.6) |
Indian rupee | ||
Effect Of Currency Appreciation [Line Items] | ||
Pre-tax earnings (loss) | (252.6) | (47.3) |
Net earnings (loss) | (235.8) | (45.9) |
Pre-tax other comprehensive income (loss) | (247.9) | (247.7) |
Other comprehensive income (loss) | (230.5) | (229.2) |
All other currencies | ||
Effect Of Currency Appreciation [Line Items] | ||
Pre-tax earnings (loss) | 50.1 | 45 |
Net earnings (loss) | 33.3 | 36 |
Pre-tax other comprehensive income (loss) | (156.5) | (108.6) |
Other comprehensive income (loss) | $ (148.4) | $ (109.1) |
Financial Risk Management - Cap
Financial Risk Management - Capital Management - Narrative (Details) - USD ($) $ in Millions | Dec. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial liabilities [line items] | |||
Capitalization | $ 29,068.3 | $ 26,341.3 | |
Target capital level percentage | 120.00% | ||
Minimum supervisory target | 150.00% | ||
Weighted average MCT ratio | 222.00% | 208.00% | |
Net earnings attributable to shareholders of Fairfax | $ 3,401.1 | $ 218.4 | |
Net changes in capitalization principally related to sale of non-controlling interests in Odyssey Group and Brit | 1,779.8 | (3.6) | |
Reduction of issued capital purchases for cancellation | 1,058.1 | $ 100.9 | |
Amount of shares to be utilized for share-based payment awards | 132.6 | ||
Payments of common and preferred share dividends | $ 316.6 | ||
Percentage of consolidated net debt/net total capital ratio | 22.80% | 30.20% | |
Percentage of consolidated total debt/total capital ratio | 26.70% | 33.50% | |
Brit Limited (Brit) | |||
Disclosure of financial liabilities [line items] | |||
Subordinated debt and contingent funding in the form of letters of credit | $ 2,199.5 | $ 1,881.3 | |
Surplus over the management capital requirements | 617.9 | 341 | |
Minimum targeted surplus | 210 | 210 | |
Common shareholders' equity | |||
Disclosure of financial liabilities [line items] | |||
Net changes in capitalization principally related to sale of non-controlling interests in Odyssey Group and Brit | 552.9 | (113.9) | |
Reduction of issued capital purchases for cancellation | 1,058.1 | 100.9 | |
Ordinary shares | |||
Disclosure of financial liabilities [line items] | |||
Equity in stock | $ 15,049.6 | $ 12,521.1 | |
Subordinate voting shares | |||
Disclosure of financial liabilities [line items] | |||
Purchases for cancellation (in shares) | 2,137,923 | 343,871 | |
Subordinate voting shares | Normal course issuer bids | |||
Disclosure of financial liabilities [line items] | |||
Purchases for cancellation (in shares) | 137,923 | 343,871 | |
Subordinate voting shares | Substantial issuer bid | |||
Disclosure of financial liabilities [line items] | |||
Cash paid for stock repurchase | $ 1,000 | $ 1,000 | |
Purchases for cancellation (in shares) | 2,000,000 | 2,000,000 |
Financial Risk Management - C_6
Financial Risk Management - Capital Management - Schedule of Capital (Details) $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Disclosure of financial liabilities [line items] | ||||
Holding company cash and investments (net of derivative obligations) | $ 1,446.2 | $ 1,229.4 | ||
Borrowings | 7,753 | 8,814 | $ 7,232.6 | |
Net debt | 6,306.8 | 7,584.6 | ||
Non-controlling interests | 4,930.2 | 3,670.7 | ||
Total equity | $ 21,315.3 | $ 17,527.3 | 17,907.2 | |
Net debt/total equity | 29.60% | 29.60% | 43.30% | |
Net debt/net total capital | 22.80% | 22.80% | 30.20% | |
Total debt/total capital | 26.70% | 26.70% | 33.50% | |
Interest coverage | 10.6 | 10.6 | 1.6 | |
Interest and preferred share dividend distribution coverage | 9.4 | 9.4 | 1.4 | |
Excluding consolidated non-insurance companies | ||||
Disclosure of financial liabilities [line items] | ||||
Holding company cash and investments (net of derivative obligations) | $ 1,446.2 | $ 1,229.4 | ||
Borrowings | 6,129.3 | 6,614 | ||
Net debt | 4,683.1 | 5,384.6 | ||
Non-controlling interests | 2,931.4 | 1,831.8 | ||
Total equity | $ 19,316.5 | $ 15,688.4 | ||
Net debt/total equity | 24.20% | 24.20% | 34.30% | |
Net debt/net total capital | 19.50% | 19.50% | 25.60% | |
Total debt/total capital | 24.10% | 24.10% | 29.70% | |
Interest coverage | 13 | 13 | 3.3 | |
Interest and preferred share dividend distribution coverage | 11.1 | 11.1 | 2.7 | |
Holding company | ||||
Disclosure of financial liabilities [line items] | ||||
Borrowings | $ 5,338.6 | $ 5,580.6 | 4,117.3 | |
Holding company | Excluding consolidated non-insurance companies | ||||
Disclosure of financial liabilities [line items] | ||||
Borrowings | 5,338.6 | 5,580.6 | ||
Insurance and reinsurance companies. | ||||
Disclosure of financial liabilities [line items] | ||||
Borrowings | 790.7 | 1,033.4 | 1,039.6 | |
Insurance and reinsurance companies. | Excluding consolidated non-insurance companies | ||||
Disclosure of financial liabilities [line items] | ||||
Borrowings | 790.7 | 1,033.4 | ||
Non-insurance companies. | ||||
Disclosure of financial liabilities [line items] | ||||
Borrowings | 1,623.7 | 2,200 | $ 2,075.7 | |
Common shares | ||||
Disclosure of financial liabilities [line items] | ||||
Equity in stock | 15,049.6 | 12,521.1 | ||
Common shares | Excluding consolidated non-insurance companies | ||||
Disclosure of financial liabilities [line items] | ||||
Equity in stock | 15,049.6 | 12,521.1 | ||
Preferred shares | ||||
Disclosure of financial liabilities [line items] | ||||
Equity in stock | 1,335.5 | $ 1,456 | 1,335.5 | |
Preferred shares | Excluding consolidated non-insurance companies | ||||
Disclosure of financial liabilities [line items] | ||||
Equity in stock | $ 1,335.5 | $ 1,335.5 |
Segmented Information - Operati
Segmented Information - Operating Segments (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segmented Information | |||
Gross premiums written | $ 23,910.2 | $ 19,125.9 | |
Net premiums written | 18,278.1 | 14,864.5 | |
Net premiums earned | 16,558 | 13,988.7 | |
Underwriting expenses | (16,065.5) | (13,887.8) | |
Underwriting profit (loss) | 492.5 | 100.9 | |
Interest income | 568.4 | 716.5 | |
Dividends | 108.2 | 77.8 | |
Investment expenses | (35.8) | (25.1) | |
Interest and dividends | 640.8 | 769.2 | |
Share of profit (loss) of associates | 402 | (112.8) | |
Other revenue | 5,158 | 4,719.6 | |
Expenses | (5,086.9) | (4,858.9) | |
Pre-tax income (loss) before interest expense and other | 71.1 | (139.3) | |
Operating income (loss) | 1,606.4 | 618 | |
Net gains (losses) on investments | 3,445.1 | 313.1 | |
Gain on sale and consolidation of insurance subsidiaries | 264 | 117.1 | |
Interest expense | (513.9) | (475.9) | |
Corporate overhead and other | (409) | (328.2) | |
Earnings before income taxes | 4,392.6 | 244.1 | |
Provision for income taxes | (726) | (206.7) | |
Shareholders of Fairfax | 3,401.1 | 218.4 | |
Non-controlling interests | 265.5 | (181) | |
Net earnings | 3,666.6 | 37.4 | |
Go Digit Infoworks Services Private Limited | |||
Segmented Information | |||
Ownership percentage | 49.00% | ||
Toys "R" Us (Canada) Ltd. (Toys "R" Us Canada) | |||
Segmented Information | |||
Net realized gains (losses) | 85.7 | ||
External | |||
Segmented Information | |||
Gross premiums written | 23,910.2 | 19,125.9 | |
Net premiums earned | $ 16,558 | 13,988.7 | |
Fairfax Asia | Go Digit Infoworks Services Private Limited | |||
Segmented Information | |||
Ownership percentage | 49.00% | ||
Fairfax Asia | Vietnam-based BIC Insurance | |||
Segmented Information | |||
Ownership percentage | 35.00% | ||
Fairfax Asia | Falcon Thailand | |||
Segmented Information | |||
Ownership percentage | 41.20% | ||
Fairfax India | Privi Speciality Chemicals Limited (Privi) | |||
Segmented Information | |||
Net realized gains (losses) | $ 94.9 | ||
Property and Casualty Insurance and Reinsurance | |||
Segmented Information | |||
Net premiums earned | 16,090.2 | 13,860.6 | |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | |||
Segmented Information | |||
Net premiums earned | 1,800.9 | 1,424.1 | |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | |||
Segmented Information | |||
Net premiums earned | 4,245.9 | 3,586.6 | |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | |||
Segmented Information | |||
Net premiums earned | 2,512.8 | 2,426.2 | |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | |||
Segmented Information | |||
Net premiums earned | 711.1 | 643.8 | |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | |||
Segmented Information | |||
Net premiums earned | 1,754.3 | 1,710.7 | |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | |||
Segmented Information | |||
Net premiums earned | 3,451.6 | 2,722.6 | |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | |||
Segmented Information | |||
Net premiums earned | 249.7 | 221.7 | |
Property and Casualty Insurance and Reinsurance | Other subsegment | |||
Segmented Information | |||
Net premiums earned | 1,363.9 | 1,124.9 | |
Life insurance and Run-off | |||
Segmented Information | |||
Net premiums earned | 467.8 | 128.1 | |
Non-insurance companies | |||
Segmented Information | |||
Interest and dividends | (94.7) | 47.1 | |
Share of profit (loss) of associates | 22.3 | (100.2) | |
Other revenue | 5,157.5 | 4,742.4 | |
Expenses | (5,092.1) | (4,868) | |
Pre-tax income (loss) before interest expense and other | 65.4 | (125.6) | |
Net gains (losses) on investments | 266 | (65.6) | |
Earnings before income taxes | 259 | (244.3) | |
Non-controlling interests | 44.3 | (287.6) | |
Non-insurance companies | Fairfax India | |||
Segmented Information | |||
Interest and dividends | (102.2) | 28.9 | |
Share of profit (loss) of associates | 20.2 | (24.8) | |
Other revenue | 228.2 | 312.8 | |
Expenses | (206.9) | (305.9) | |
Pre-tax income (loss) before interest expense and other | 21.3 | 6.9 | |
Net gains (losses) on investments | 236.4 | (12.4) | |
Earnings before income taxes | 175.7 | (1.4) | |
Operating segments | Property and Casualty Insurance and Reinsurance | |||
Segmented Information | |||
Gross premiums written | 24,330.8 | 19,356.8 | |
Net premiums written | 17,809.4 | 14,717.7 | |
Net premiums earned | 16,090.2 | 13,860.6 | |
Underwriting expenses | (15,289) | (13,551.6) | |
Underwriting profit (loss) | 801.2 | 309 | |
Interest income | 520.8 | 619.7 | |
Dividends | 72.7 | 55 | |
Investment expenses | (151.8) | (114.1) | |
Interest and dividends | 441.7 | 560.6 | |
Share of profit (loss) of associates | 324.1 | 46.2 | |
Operating income (loss) | 1,567 | 915.8 | |
Net gains (losses) on investments | 2,644.5 | 136.4 | |
Gain on sale and consolidation of insurance subsidiaries | 133.5 | (56.3) | |
Interest expense | (61.5) | (67.6) | |
Corporate overhead and other | (164) | (155.1) | |
Earnings before income taxes | 4,119.5 | 773.2 | |
Operating segments | Property and Casualty Insurance and Reinsurance | External | |||
Segmented Information | |||
Gross premiums written | 23,796 | 18,979.1 | |
Net premiums earned | 16,448.3 | 13,859 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Intercompany | |||
Segmented Information | |||
Gross premiums written | 534.8 | 377.7 | |
Net premiums earned | (358.1) | 1.6 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | |||
Segmented Information | |||
Gross premiums written | 2,126.6 | 1,735.2 | |
Net premiums written | 1,917.4 | 1,540.4 | |
Net premiums earned | 1,800.9 | 1,424.1 | |
Underwriting expenses | (1,598.7) | (1,315.3) | |
Underwriting profit (loss) | 202.2 | 108.8 | |
Interest income | 61.8 | 59.6 | |
Dividends | 14.8 | 7.9 | |
Investment expenses | (16.9) | (11.3) | |
Interest and dividends | 59.7 | 56.2 | |
Share of profit (loss) of associates | 1.9 | (3) | |
Operating income (loss) | 263.8 | 162 | |
Net gains (losses) on investments | 269.2 | 105.7 | |
Interest expense | (1.2) | (1.3) | |
Corporate overhead and other | (11.8) | (8.1) | |
Earnings before income taxes | 520 | 258.3 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | External | |||
Segmented Information | |||
Gross premiums written | 2,121.6 | 1,727.5 | |
Net premiums earned | 1,815.9 | 1,435.1 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | Intercompany | |||
Segmented Information | |||
Gross premiums written | 5 | 7.7 | |
Net premiums earned | (15) | (11) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | |||
Segmented Information | |||
Gross premiums written | 5,746.3 | 4,446.7 | |
Net premiums written | 4,849.4 | 3,789.6 | |
Net premiums earned | 4,245.9 | 3,586.6 | |
Underwriting expenses | (4,153.7) | (3,396.7) | |
Underwriting profit (loss) | 92.2 | 189.9 | |
Interest income | 149 | 173.6 | |
Dividends | 14.3 | 8.6 | |
Investment expenses | (46.3) | (31) | |
Interest and dividends | 117 | 151.2 | |
Share of profit (loss) of associates | 101.6 | 27.8 | |
Operating income (loss) | 310.8 | 368.9 | |
Net gains (losses) on investments | 419.2 | (26.9) | |
Gain on sale and consolidation of insurance subsidiaries | (30.5) | ||
Interest expense | (4.4) | (6.4) | |
Corporate overhead and other | (18.9) | (10.5) | |
Earnings before income taxes | 706.7 | 294.6 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | External | |||
Segmented Information | |||
Gross premiums written | 5,551.4 | 4,306.3 | |
Net premiums earned | 4,178.3 | 3,555.8 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | Intercompany | |||
Segmented Information | |||
Gross premiums written | 194.9 | 140.4 | |
Net premiums earned | 67.6 | 30.8 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | |||
Segmented Information | |||
Gross premiums written | 3,729.7 | 3,109.4 | |
Net premiums written | 2,689.3 | 2,543 | |
Net premiums earned | 2,512.8 | 2,426.2 | |
Underwriting expenses | (2,410.9) | (2,366.1) | |
Underwriting profit (loss) | 101.9 | 60.1 | |
Interest income | 80.9 | 91.9 | |
Dividends | 6.3 | 2.2 | |
Investment expenses | (18.2) | (14.5) | |
Interest and dividends | 69 | 79.6 | |
Share of profit (loss) of associates | 66.6 | (14.8) | |
Operating income (loss) | 237.5 | 124.9 | |
Net gains (losses) on investments | 201.9 | (158.2) | |
Gain on sale and consolidation of insurance subsidiaries | (25.8) | ||
Interest expense | (3.7) | (4.7) | |
Corporate overhead and other | (32.7) | (28.2) | |
Earnings before income taxes | 403 | (92) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | External | |||
Segmented Information | |||
Gross premiums written | 3,704.8 | 3,082.4 | |
Net premiums earned | 2,910.5 | 2,462.7 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | Intercompany | |||
Segmented Information | |||
Gross premiums written | 24.9 | 27 | |
Net premiums earned | (397.7) | (36.5) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | |||
Segmented Information | |||
Gross premiums written | 735.2 | 661.7 | |
Net premiums written | 713 | 646.1 | |
Net premiums earned | 711.1 | 643.8 | |
Underwriting expenses | (628.3) | (591.9) | |
Underwriting profit (loss) | 82.8 | 51.9 | |
Interest income | 11.7 | 24.3 | |
Dividends | 2.8 | 1.8 | |
Investment expenses | (8.1) | (7.1) | |
Interest and dividends | 6.4 | 19 | |
Share of profit (loss) of associates | 35.1 | (4.2) | |
Operating income (loss) | 124.3 | 66.7 | |
Net gains (losses) on investments | 47.4 | (59.9) | |
Interest expense | (3.7) | (3.8) | |
Corporate overhead and other | (9.2) | (9.8) | |
Earnings before income taxes | 158.8 | (6.8) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | External | |||
Segmented Information | |||
Gross premiums written | 718.2 | 661.7 | |
Net premiums earned | 708.9 | 646.6 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | Intercompany | |||
Segmented Information | |||
Gross premiums written | 17 | ||
Net premiums earned | 2.2 | (2.8) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | |||
Segmented Information | |||
Gross premiums written | 3,238.3 | 2,424.4 | |
Net premiums written | 1,998.3 | 1,775.6 | |
Net premiums earned | 1,754.3 | 1,710.7 | |
Underwriting expenses | (1,698.7) | (1,951) | |
Underwriting profit (loss) | 55.6 | (240.3) | |
Interest income | 52.2 | 67.1 | |
Dividends | 5.3 | 3.4 | |
Investment expenses | (14.1) | (12.3) | |
Interest and dividends | 43.4 | 58.2 | |
Share of profit (loss) of associates | 31.5 | 6.6 | |
Operating income (loss) | 130.5 | (175.5) | |
Net gains (losses) on investments | 6.9 | 24.4 | |
Gain on sale and consolidation of insurance subsidiaries | 33.2 | ||
Interest expense | (18.3) | (19) | |
Corporate overhead and other | (13.2) | (11.9) | |
Earnings before income taxes | 139.1 | (182) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | External | |||
Segmented Information | |||
Gross premiums written | 3,221.9 | 2,407.6 | |
Net premiums earned | 1,754.4 | 1,710.4 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | Intercompany | |||
Segmented Information | |||
Gross premiums written | 16.4 | 16.8 | |
Net premiums earned | (0.1) | 0.3 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | |||
Segmented Information | |||
Gross premiums written | 5,851.9 | 4,680.7 | |
Net premiums written | 3,907.8 | 3,017.6 | |
Net premiums earned | 3,451.6 | 2,722.6 | |
Underwriting expenses | (3,225.2) | (2,596.6) | |
Underwriting profit (loss) | 226.4 | 126 | |
Interest income | 98.4 | 136.5 | |
Dividends | 17.6 | 20.3 | |
Investment expenses | (39.7) | (30.1) | |
Interest and dividends | 76.3 | 126.7 | |
Share of profit (loss) of associates | 51.7 | 35.6 | |
Operating income (loss) | 354.4 | 288.3 | |
Net gains (losses) on investments | 178 | 246 | |
Gain on sale and consolidation of insurance subsidiaries | 35.5 | ||
Interest expense | (27.8) | (30.3) | |
Corporate overhead and other | (55.9) | (79.2) | |
Earnings before income taxes | 484.2 | 424.8 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | External | |||
Segmented Information | |||
Gross premiums written | 5,794.3 | 4,633.8 | |
Net premiums earned | 3,597.9 | 2,788.4 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | Intercompany | |||
Segmented Information | |||
Gross premiums written | 57.6 | 46.9 | |
Net premiums earned | (146.3) | (65.8) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Fairfax Asia | |||
Segmented Information | |||
Gross premiums written | 537 | 424.7 | |
Net premiums written | 260.6 | 221.6 | |
Net premiums earned | 249.7 | 221.7 | |
Underwriting expenses | (229.6) | (214.6) | |
Underwriting profit (loss) | 20.1 | 7.1 | |
Interest income | 15.4 | 14.1 | |
Dividends | 5.3 | 7.1 | |
Investment expenses | (1.5) | (1.2) | |
Interest and dividends | 19.2 | 20 | |
Share of profit (loss) of associates | 12.2 | 14.6 | |
Operating income (loss) | 51.5 | 41.7 | |
Net gains (losses) on investments | 1,485.7 | 12.3 | |
Gain on sale and consolidation of insurance subsidiaries | 60.8 | ||
Interest expense | (0.2) | (0.4) | |
Corporate overhead and other | (19.8) | (6) | |
Earnings before income taxes | 1,578 | 47.6 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Fairfax Asia | External | |||
Segmented Information | |||
Gross premiums written | 534.4 | 421.2 | |
Net premiums earned | 283.1 | 229.2 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Fairfax Asia | Intercompany | |||
Segmented Information | |||
Gross premiums written | 2.6 | 3.5 | |
Net premiums earned | (33.4) | (7.5) | |
Operating segments | Property and Casualty Insurance and Reinsurance | Other subsegment | |||
Segmented Information | |||
Gross premiums written | 2,365.8 | 1,874 | |
Net premiums written | 1,473.6 | 1,183.8 | |
Net premiums earned | 1,363.9 | 1,124.9 | |
Underwriting expenses | (1,343.9) | (1,119.4) | |
Underwriting profit (loss) | 20 | 5.5 | |
Interest income | 51.4 | 52.6 | |
Dividends | 6.3 | 3.7 | |
Investment expenses | (7) | (6.6) | |
Interest and dividends | 50.7 | 49.7 | |
Share of profit (loss) of associates | 23.5 | (16.4) | |
Operating income (loss) | 94.2 | 38.8 | |
Net gains (losses) on investments | 36.2 | (7) | |
Gain on sale and consolidation of insurance subsidiaries | 4 | ||
Interest expense | (2.2) | (1.7) | |
Corporate overhead and other | (2.5) | (1.4) | |
Earnings before income taxes | 129.7 | 28.7 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Other subsegment | External | |||
Segmented Information | |||
Gross premiums written | 2,149.4 | 1,738.6 | |
Net premiums earned | 1,199.3 | 1,030.8 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Other subsegment | Intercompany | |||
Segmented Information | |||
Gross premiums written | 216.4 | 135.4 | |
Net premiums earned | 164.6 | 94.1 | |
Operating segments | Life insurance and Run-off | |||
Segmented Information | |||
Gross premiums written | 472.3 | ||
Net premiums written | 468.7 | ||
Net premiums earned | 467.8 | ||
Underwriting expenses | (776.8) | ||
Underwriting profit (loss) | (309) | ||
Interest income | 22.2 | ||
Dividends | 7.8 | ||
Investment expenses | (10.7) | ||
Interest and dividends | 19.3 | ||
Share of profit (loss) of associates | 16.8 | ||
Operating income (loss) | (272.9) | ||
Net gains (losses) on investments | 69.7 | ||
Interest expense | (7.9) | ||
Corporate overhead and other | (38.4) | ||
Earnings before income taxes | (249.5) | ||
Operating segments | Life insurance and Run-off | External | |||
Segmented Information | |||
Gross premiums written | 114.2 | ||
Net premiums earned | 109.7 | ||
Operating segments | Life insurance and Run-off | Intercompany | |||
Segmented Information | |||
Gross premiums written | 358.1 | ||
Net premiums earned | 358.1 | ||
Operating segments | Run-off | |||
Segmented Information | |||
Gross premiums written | 146.8 | ||
Net premiums written | 146.8 | ||
Net premiums earned | 128.1 | ||
Underwriting expenses | (336.2) | ||
Underwriting profit (loss) | (208.1) | ||
Interest income | 28.5 | ||
Dividends | 4.9 | ||
Investment expenses | (8.7) | ||
Interest and dividends | 24.7 | ||
Share of profit (loss) of associates | (11.2) | ||
Operating income (loss) | (194.6) | ||
Net gains (losses) on investments | (96.9) | ||
Gain on sale and consolidation of insurance subsidiaries | (9) | ||
Interest expense | (2.3) | ||
Corporate overhead and other | (0.2) | ||
Earnings before income taxes | (303) | ||
Operating segments | Run-off | External | |||
Segmented Information | |||
Gross premiums written | 146.8 | ||
Net premiums earned | 129.7 | ||
Operating segments | Run-off | Intercompany | |||
Segmented Information | |||
Net premiums earned | (1.6) | ||
Operating segments | Non-insurance companies | |||
Segmented Information | |||
Interest income | 3.9 | 20.5 | |
Dividends | 28.5 | 17.2 | |
Investment expenses | (127.1) | 9.4 | |
Interest and dividends | (94.7) | 47.1 | |
Share of profit (loss) of associates | 22.3 | (100.2) | |
Other revenue | 5,157.5 | 4,742.4 | |
Expenses | (5,092.1) | (4,868) | |
Pre-tax income (loss) before interest expense and other | 65.4 | (125.6) | |
Operating income (loss) | (7) | (178.7) | |
Net gains (losses) on investments | 266 | (65.6) | |
Interest expense | (140.3) | (170.6) | |
Earnings before income taxes | 118.7 | (414.9) | |
Operating segments | Corporate and Other | |||
Segmented Information | |||
Interest income | 28.2 | 57.1 | |
Dividends | 0.8 | 0.7 | |
Investment expenses | (2.8) | (2) | |
Interest and dividends | 24.6 | 55.8 | |
Share of profit (loss) of associates | 38.8 | (47.6) | |
Operating income (loss) | 63.4 | 8.2 | |
Net gains (losses) on investments | 464.9 | 339.2 | |
Gain on sale and consolidation of insurance subsidiaries | 130.5 | 182.4 | |
Interest expense | (305.4) | (235.6) | |
Corporate overhead and other | 50 | (82.6) | |
Earnings before income taxes | 403.4 | 211.6 | |
Eliminations and adjustments | |||
Segmented Information | |||
Gross premiums written | (892.9) | (377.7) | |
Underwriting expenses | 0.3 | ||
Underwriting profit (loss) | 0.3 | ||
Interest income | (6.7) | (9.3) | |
Investment expenses | 256.6 | 90.3 | |
Interest and dividends | 249.9 | 81 | |
Other revenue | 0.5 | (22.8) | |
Expenses | (5.2) | (9.1) | |
Pre-tax income (loss) before interest expense and other | 5.7 | (13.7) | |
Operating income (loss) | 255.9 | 67.3 | |
Interest expense | 1.2 | 0.2 | |
Corporate overhead and other | (256.6) | (90.3) | |
Earnings before income taxes | 0.5 | (22.8) | |
Eliminations and adjustments | Intercompany | |||
Segmented Information | |||
Gross premiums written | $ (892.9) | $ (377.7) |
Segmented Information - Underwr
Segmented Information - Underwriting Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segmented Information | ||
Underwriting expenses - calendar year | $ 16,065.5 | $ 13,887.8 |
Operating segments | Property and Casualty Insurance and Reinsurance | ||
Segmented Information | ||
Loss & LAE - accident year | 10,438.5 | 9,523.5 |
Commissions | 2,774.2 | 2,363.1 |
Premium acquisition costs and other underwriting expenses | 2,431.9 | 2,119.9 |
Underwriting expenses - accident year | 15,644.6 | 14,006.5 |
Net favourable claims reserve development | (355.6) | (454.9) |
Underwriting expenses - calendar year | 15,289 | 13,551.6 |
Operating segments | Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | ||
Segmented Information | ||
Loss & LAE - accident year | 1,038 | 878.9 |
Commissions | 316 | 243.8 |
Premium acquisition costs and other underwriting expenses | 273.9 | 231.8 |
Underwriting expenses - accident year | 1,627.9 | 1,354.5 |
Net favourable claims reserve development | (29.2) | (39.2) |
Underwriting expenses - calendar year | 1,598.7 | 1,315.3 |
Operating segments | Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | ||
Segmented Information | ||
Loss & LAE - accident year | 3,111.7 | 2,652.2 |
Commissions | 796.6 | 693.5 |
Premium acquisition costs and other underwriting expenses | 365.5 | 270.5 |
Underwriting expenses - accident year | 4,273.8 | 3,616.2 |
Net favourable claims reserve development | (120.1) | (219.5) |
Underwriting expenses - calendar year | 4,153.7 | 3,396.7 |
Operating segments | Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | ||
Segmented Information | ||
Loss & LAE - accident year | 1,434.9 | 1,521.7 |
Commissions | 516.3 | 415.2 |
Premium acquisition costs and other underwriting expenses | 463.4 | 434.4 |
Underwriting expenses - accident year | 2,414.6 | 2,371.3 |
Net favourable claims reserve development | (3.7) | (5.2) |
Underwriting expenses - calendar year | 2,410.9 | 2,366.1 |
Operating segments | Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | ||
Segmented Information | ||
Loss & LAE - accident year | 427.4 | 401.8 |
Commissions | 81.3 | 74.1 |
Premium acquisition costs and other underwriting expenses | 190.4 | 190.1 |
Underwriting expenses - accident year | 699.1 | 666 |
Net favourable claims reserve development | (70.8) | (74.1) |
Underwriting expenses - calendar year | 628.3 | 591.9 |
Operating segments | Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | ||
Segmented Information | ||
Loss & LAE - accident year | 981.6 | 1,301.8 |
Commissions | 489.1 | 436.4 |
Premium acquisition costs and other underwriting expenses | 328.1 | 275.6 |
Underwriting expenses - accident year | 1,798.8 | 2,013.8 |
Net favourable claims reserve development | (100.1) | (62.8) |
Underwriting expenses - calendar year | 1,698.7 | 1,951 |
Operating segments | Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | ||
Segmented Information | ||
Loss & LAE - accident year | 2,458.3 | 1,931.2 |
Commissions | 285.3 | 253.7 |
Premium acquisition costs and other underwriting expenses | 462.8 | 416.8 |
Underwriting expenses - accident year | 3,206.4 | 2,601.7 |
Net favourable claims reserve development | 18.8 | (5.1) |
Underwriting expenses - calendar year | 3,225.2 | 2,596.6 |
Operating segments | Property and Casualty Insurance and Reinsurance | Fairfax Asia | ||
Segmented Information | ||
Loss & LAE - accident year | 162.9 | 148.3 |
Commissions | 32.2 | 30.8 |
Premium acquisition costs and other underwriting expenses | 56 | 54 |
Underwriting expenses - accident year | 251.1 | 233.1 |
Net favourable claims reserve development | (21.5) | (18.5) |
Underwriting expenses - calendar year | 229.6 | 214.6 |
Operating segments | Property and Casualty Insurance and Reinsurance | Other subsegment | ||
Segmented Information | ||
Loss & LAE - accident year | 823.7 | 687.6 |
Commissions | 257.4 | 215.6 |
Premium acquisition costs and other underwriting expenses | 291.8 | 246.7 |
Underwriting expenses - accident year | 1,372.9 | 1,149.9 |
Net favourable claims reserve development | (29) | (30.5) |
Underwriting expenses - calendar year | 1,343.9 | $ 1,119.4 |
Eliminations and adjustments | ||
Segmented Information | ||
Underwriting expenses - calendar year | $ (0.3) |
Segmented Information - Investm
Segmented Information - Investments In Associates (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segmented Information | ||
Investments in associates | $ 6,104 | $ 6,439.6 |
Additions to goodwill | 60.7 | 182.1 |
Segment assets | 86,645.4 | 74,054 |
Segment liabilities | 65,330.1 | 56,526.7 |
Operating segments | Property and Casualty Insurance and Reinsurance | ||
Segmented Information | ||
Investments in associates | 3,385.4 | 3,109.3 |
Additions to goodwill | 16.4 | |
Segment assets | 74,399.7 | 63,375.4 |
Segment liabilities | 52,033.7 | 44,736.3 |
Operating segments | Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | ||
Segmented Information | ||
Investments in associates | 192.1 | 182.1 |
Segment assets | 6,152.3 | 5,231.6 |
Segment liabilities | 3,978.7 | 3,418.3 |
Operating segments | Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | ||
Segmented Information | ||
Investments in associates | 1,211.8 | 1,164.9 |
Segment assets | 17,309.9 | 15,041.7 |
Segment liabilities | 11,946.1 | 10,141 |
Operating segments | Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | ||
Segmented Information | ||
Investments in associates | 422.5 | 368.2 |
Segment assets | 8,719.4 | 7,596 |
Segment liabilities | 6,073.4 | 5,448.2 |
Operating segments | Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | ||
Segmented Information | ||
Investments in associates | 186.9 | 124.5 |
Segment assets | 2,562.9 | 2,472 |
Segment liabilities | 1,515.3 | 1,539.1 |
Operating segments | Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | ||
Segmented Information | ||
Investments in associates | 363 | 363.1 |
Additions to goodwill | 16.4 | |
Segment assets | 10,597.7 | 9,040.7 |
Segment liabilities | 8,082.6 | 6,826.2 |
Operating segments | Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | ||
Segmented Information | ||
Investments in associates | 593.9 | 537 |
Segment assets | 19,294.8 | 16,975.5 |
Segment liabilities | 14,591.1 | 12,547.4 |
Operating segments | Property and Casualty Insurance and Reinsurance | Fairfax Asia | ||
Segmented Information | ||
Investments in associates | 159.8 | 149.9 |
Segment assets | 4,010 | 1,920.1 |
Segment liabilities | 1,336.8 | 794.7 |
Operating segments | Property and Casualty Insurance and Reinsurance | Other subsegment | ||
Segmented Information | ||
Investments in associates | 255.4 | 219.6 |
Segment assets | 5,752.7 | 5,097.8 |
Segment liabilities | 4,509.7 | 4,021.4 |
Operating segments | Life insurance and Run-off | ||
Segmented Information | ||
Investments in associates | 272.6 | 129.3 |
Segment assets | 6,669.1 | 2,601.9 |
Segment liabilities | 5,781.1 | 2,095.9 |
Operating segments | Non-insurance companies | ||
Segmented Information | ||
Investments in associates | 1,379.7 | 1,373.5 |
Additions to goodwill | 44.3 | 182.1 |
Segment assets | 7,856.4 | 8,349 |
Segment liabilities | 4,075.1 | 5,124.2 |
Corporate and Other and eliminations and adjustments | ||
Segmented Information | ||
Investments in associates | 1,066.3 | 1,827.5 |
Segment assets | (2,279.8) | (272.3) |
Segment liabilities | $ 3,440.2 | 4,570.3 |
Corporate and Other and eliminations and adjustments | RiverStone Barbados | ||
Segmented Information | ||
Investment in associate held for sale | $ 729.5 |
Segmented Information - Product
Segmented Information - Product Line (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segmented Information | ||
Net premiums earned | $ 16,558 | $ 13,988.7 |
Interest and dividends | 640.8 | 769.2 |
Share of profit (loss) of associates | 402 | (112.8) |
Net gains on investments | 3,445.1 | 313.1 |
Gain on sale and consolidation of insurance subsidiaries | 264 | 117.1 |
Other revenue | 5,158 | 4,719.6 |
Income | $ 26,467.9 | $ 19,794.9 |
Product Concentration | Net Premiums Earned | ||
Segmented Information | ||
Distribution of net premiums earned | 100.00% | 100.00% |
Property | ||
Segmented Information | ||
Net premiums earned | $ 5,929.6 | $ 5,034.3 |
Property | Product Concentration | Net Premiums Earned | ||
Segmented Information | ||
Distribution of net premiums earned | 35.80% | 36.00% |
Casualty | ||
Segmented Information | ||
Net premiums earned | $ 9,150.1 | $ 7,635.4 |
Casualty | Product Concentration | Net Premiums Earned | ||
Segmented Information | ||
Distribution of net premiums earned | 55.30% | 54.60% |
Specialty | ||
Segmented Information | ||
Net premiums earned | $ 1,478.3 | $ 1,319 |
Specialty | Product Concentration | Net Premiums Earned | ||
Segmented Information | ||
Distribution of net premiums earned | 8.90% | 9.40% |
Property and Casualty Insurance and Reinsurance | ||
Segmented Information | ||
Net premiums earned | $ 16,090.2 | $ 13,860.6 |
Property and Casualty Insurance and Reinsurance | Property | ||
Segmented Information | ||
Net premiums earned | 5,921.4 | 5,002.7 |
Property and Casualty Insurance and Reinsurance | Casualty | ||
Segmented Information | ||
Net premiums earned | 8,801.3 | 7,603.9 |
Property and Casualty Insurance and Reinsurance | Specialty | ||
Segmented Information | ||
Net premiums earned | 1,367.5 | 1,254 |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | ||
Segmented Information | ||
Net premiums earned | 1,800.9 | 1,424.1 |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | Property | ||
Segmented Information | ||
Net premiums earned | 810.8 | 626.4 |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | Casualty | ||
Segmented Information | ||
Net premiums earned | 828.7 | 659.6 |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | Specialty | ||
Segmented Information | ||
Net premiums earned | 161.4 | 138.1 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | ||
Segmented Information | ||
Net premiums earned | 4,245.9 | 3,586.6 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | Property | ||
Segmented Information | ||
Net premiums earned | 2,187.5 | 1,838.9 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | Casualty | ||
Segmented Information | ||
Net premiums earned | 1,741.8 | 1,444 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | Specialty | ||
Segmented Information | ||
Net premiums earned | 316.6 | 303.7 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | ||
Segmented Information | ||
Net premiums earned | 2,512.8 | 2,426.2 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | Property | ||
Segmented Information | ||
Net premiums earned | 355.9 | 364.2 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | Casualty | ||
Segmented Information | ||
Net premiums earned | 1,903.3 | 1,837.5 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | Specialty | ||
Segmented Information | ||
Net premiums earned | 253.6 | 224.5 |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | ||
Segmented Information | ||
Net premiums earned | 711.1 | 643.8 |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | Property | ||
Segmented Information | ||
Net premiums earned | 42.9 | 37.5 |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | Casualty | ||
Segmented Information | ||
Net premiums earned | 668.2 | 605.9 |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | Specialty | ||
Segmented Information | ||
Net premiums earned | 0.4 | |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | ||
Segmented Information | ||
Net premiums earned | 1,754.3 | 1,710.7 |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | Property | ||
Segmented Information | ||
Net premiums earned | 699.2 | 544.3 |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | Casualty | ||
Segmented Information | ||
Net premiums earned | 745.7 | 853 |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | Specialty | ||
Segmented Information | ||
Net premiums earned | 309.4 | 313.4 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | ||
Segmented Information | ||
Net premiums earned | 3,451.6 | 2,722.6 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | Property | ||
Segmented Information | ||
Net premiums earned | 990.2 | 882.6 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | Casualty | ||
Segmented Information | ||
Net premiums earned | 2,369.3 | 1,755.4 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | Specialty | ||
Segmented Information | ||
Net premiums earned | 92.1 | 84.6 |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | ||
Segmented Information | ||
Net premiums earned | 249.7 | 221.7 |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Property | ||
Segmented Information | ||
Net premiums earned | 90.4 | 74.5 |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Casualty | ||
Segmented Information | ||
Net premiums earned | 120.9 | 116.4 |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Specialty | ||
Segmented Information | ||
Net premiums earned | 38.4 | 30.8 |
Property and Casualty Insurance and Reinsurance | Other subsegment | ||
Segmented Information | ||
Net premiums earned | 1,363.9 | 1,124.9 |
Property and Casualty Insurance and Reinsurance | Other subsegment | Property | ||
Segmented Information | ||
Net premiums earned | 744.5 | 634.3 |
Property and Casualty Insurance and Reinsurance | Other subsegment | Casualty | ||
Segmented Information | ||
Net premiums earned | 423.4 | 332.1 |
Property and Casualty Insurance and Reinsurance | Other subsegment | Specialty | ||
Segmented Information | ||
Net premiums earned | 196 | 158.5 |
Life insurance and Run-off | ||
Segmented Information | ||
Net premiums earned | 467.8 | 128.1 |
Life insurance and Run-off | Property | ||
Segmented Information | ||
Net premiums earned | 8.2 | 31.6 |
Life insurance and Run-off | Casualty | ||
Segmented Information | ||
Net premiums earned | 348.8 | 31.5 |
Life insurance and Run-off | Specialty | ||
Segmented Information | ||
Net premiums earned | $ 110.8 | $ 65 |
Segmented Information - Geograp
Segmented Information - Geographic Region (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | ||
Net premiums earned | $ 16,558 | $ 13,988.7 |
Interest and dividends | 640.8 | 769.2 |
Share of profit (loss) of associates | 402 | (112.8) |
Net gains (losses) on investments | 3,445.1 | 313.1 |
Gain on sale and consolidation of insurance subsidiaries | 264 | 117.1 |
Other revenue | 5,158 | 4,719.6 |
Income | $ 26,467.9 | $ 19,794.9 |
Geographic | ||
Disclosure of geographical areas [line items] | ||
Distribution of net premiums earned | 100.00% | 100.00% |
Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | $ 2,078.2 | $ 1,659 |
Canada | Geographic | ||
Disclosure of geographical areas [line items] | ||
Distribution of net premiums earned | 12.60% | 11.90% |
United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | $ 10,333.4 | $ 8,741 |
United States | Geographic | ||
Disclosure of geographical areas [line items] | ||
Distribution of net premiums earned | 62.40% | 62.40% |
Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | $ 1,247 | $ 1,104.8 |
Asia | Geographic | ||
Disclosure of geographical areas [line items] | ||
Distribution of net premiums earned | 7.50% | 7.90% |
International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | $ 2,899.4 | $ 2,483.9 |
International | Geographic | ||
Disclosure of geographical areas [line items] | ||
Distribution of net premiums earned | 17.50% | 17.80% |
Property and Casualty Insurance and Reinsurance | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | $ 16,090.2 | $ 13,860.6 |
Property and Casualty Insurance and Reinsurance | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2,078.2 | 1,658.9 |
Property and Casualty Insurance and Reinsurance | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 9,975.3 | 8,739.9 |
Property and Casualty Insurance and Reinsurance | Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1,247 | 1,104.8 |
Property and Casualty Insurance and Reinsurance | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2,789.7 | 2,357 |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1,800.9 | 1,424.1 |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1,782.7 | 1,407.3 |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 18.2 | 16.8 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 4,245.9 | 3,586.6 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 124.1 | 101.2 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2,830.6 | 2,356.3 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 518.6 | 469.8 |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 772.6 | 659.3 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2,512.8 | 2,426.2 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2.2 | |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2,495.4 | 2,409.2 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1.2 | 0.2 |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 14 | 16.8 |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 711.1 | 643.8 |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 708.5 | 643.8 |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2.6 | |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1,754.3 | 1,710.7 |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 90.5 | 97.7 |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1,271.1 | 1,228.5 |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 49.3 | 45.9 |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 343.4 | 338.6 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 3,451.6 | 2,722.6 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 78.5 | 52.6 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 2,569.7 | 2,030.5 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 239 | 227.6 |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 564.4 | 411.9 |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 249.7 | 221.7 |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 249.7 | 221.7 |
Property and Casualty Insurance and Reinsurance | Other subsegment | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1,363.9 | 1,124.9 |
Property and Casualty Insurance and Reinsurance | Other subsegment | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 0.2 | 0.1 |
Property and Casualty Insurance and Reinsurance | Other subsegment | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 81.8 | 54.8 |
Property and Casualty Insurance and Reinsurance | Other subsegment | Asia | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 189.2 | 139.6 |
Property and Casualty Insurance and Reinsurance | Other subsegment | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 1,092.7 | 930.4 |
Life insurance and Run-off | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 467.8 | 128.1 |
Life insurance and Run-off | Canada | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 0.1 | |
Life insurance and Run-off | United States | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | 358.1 | 1.1 |
Life insurance and Run-off | International | ||
Disclosure of geographical areas [line items] | ||
Net premiums earned | $ 109.7 | $ 126.9 |
Segmented Information - Non-ins
Segmented Information - Non-insurance companies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segmented Information | ||
Other revenue | $ 5,158 | $ 4,719.6 |
Expenses | (5,086.9) | (4,858.9) |
Pre-tax income (loss) before interest expense and other | 71.1 | (139.3) |
Interest and dividends | 640.8 | 769.2 |
Share of profit (loss) of associates | 402 | (112.8) |
Net gains (losses) on investments | 3,445.1 | 313.1 |
Profit (loss) before tax | 4,392.6 | 244.1 |
Non-insurance companies | ||
Segmented Information | ||
Other revenue | 5,157.5 | 4,742.4 |
Expenses | (5,092.1) | (4,868) |
Pre-tax income (loss) before interest expense and other | 65.4 | (125.6) |
Interest and dividends | (94.7) | 47.1 |
Share of profit (loss) of associates | 22.3 | (100.2) |
Operating income (loss) | (7) | (178.7) |
Net gains (losses) on investments | 266 | (65.6) |
Profit (loss) before tax | 259 | (244.3) |
Non-insurance companies | Restaurants and retail | ||
Segmented Information | ||
Other revenue | 1,803.8 | 1,734.2 |
Expenses | (1,724.8) | (1,811.1) |
Pre-tax income (loss) before interest expense and other | 79 | (76.9) |
Interest and dividends | 7.5 | 6.1 |
Share of profit (loss) of associates | 1.3 | |
Operating income (loss) | 86.5 | (69.5) |
Net gains (losses) on investments | 29.5 | (6.6) |
Profit (loss) before tax | 116 | (76.1) |
Non-insurance companies | Fairfax India | ||
Segmented Information | ||
Other revenue | 228.2 | 312.8 |
Expenses | (206.9) | (305.9) |
Pre-tax income (loss) before interest expense and other | 21.3 | 6.9 |
Interest and dividends | (102.2) | 28.9 |
Share of profit (loss) of associates | 20.2 | (24.8) |
Operating income (loss) | (60.7) | 11 |
Net gains (losses) on investments | 236.4 | (12.4) |
Profit (loss) before tax | 175.7 | (1.4) |
Non-insurance companies | Thomas Cook India | ||
Segmented Information | ||
Other revenue | 249.4 | 225.2 |
Expenses | (293.4) | (288.3) |
Pre-tax income (loss) before interest expense and other | (44) | (63.1) |
Interest and dividends | (0.1) | |
Share of profit (loss) of associates | (0.1) | (3.4) |
Operating income (loss) | (44.2) | (66.5) |
Net gains (losses) on investments | (3.3) | 4 |
Profit (loss) before tax | (47.5) | (62.5) |
Non-insurance companies | Other subsegments | ||
Segmented Information | ||
Other revenue | 2,876.1 | 2,470.2 |
Expenses | (2,867) | (2,462.7) |
Pre-tax income (loss) before interest expense and other | 9.1 | 7.5 |
Interest and dividends | 0.1 | 12.1 |
Share of profit (loss) of associates | 2.2 | (73.3) |
Operating income (loss) | 11.4 | (53.7) |
Net gains (losses) on investments | 3.4 | (50.6) |
Profit (loss) before tax | $ 14.8 | $ (104.3) |
Segmented Information - Segment
Segmented Information - Segmented Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segmented Information | |||
Holding company cash and investments | $ 1,478.3 | $ 1,252.2 | |
Insurance contract receivables | 6,883.2 | 5,816.1 | |
Portfolio investments | 51,697.4 | 42,108.6 | |
Deferred premium acquisition costs | 1,924.1 | 1,543.7 | $ 1,344.3 |
Recoverable from reinsurers (including recoverables on paid losses - $884.3; December 31, 2020 - $686.8) | 12,090.5 | 10,533.2 | 9,155.8 |
Deferred income tax assets | 522.4 | 713.9 | |
Goodwill and intangible assets | 5,928.2 | 6,229.1 | 6,194.1 |
Other assets | 6,121.3 | 5,857.2 | |
Total assets | 86,645.4 | 74,054 | |
Accounts payable and accrued liabilities | 4,985.4 | 4,996.1 | |
Derivative obligations (including at the holding company - $32.1; December 31, 2020 - $22.8) | 152.9 | 189.4 | |
Deferred income tax liabilities | 598.8 | 356.4 | |
Insurance contract payables | 4,493.5 | 2,964 | |
Provision for losses and loss adjustment expenses | 36,892.3 | 30,809.3 | |
Provision for unearned premiums | 10,454.2 | 8,397.5 | |
Borrowings | 7,753 | 8,814 | 7,232.6 |
Total liabilities | 65,330.1 | 56,526.7 | |
Shareholders' equity attributable to shareholders of Fairfax | 16,385.1 | 13,856.6 | |
Non-controlling interests | 4,930.2 | 3,670.7 | |
Total equity | 21,315.3 | 17,527.3 | $ 17,907.2 |
Total liabilities and total equity | 86,645.4 | 74,054 | |
Investments in associates (fair value $5,671.9; December 31, 2020 - $4,154.3) | 6,104 | 6,439.6 | |
Insurance and reinsurance companies | |||
Segmented Information | |||
Non-controlling interests | 2,931.4 | 1,831.8 | |
Insurance and reinsurance companies | RiverStone Barbados | |||
Segmented Information | |||
Investment in associate held for sale | 0 | 729.5 | |
Non-insurance companies | |||
Segmented Information | |||
Non-controlling interests | 1,998.8 | 1,838.9 | |
Operating segments | Insurance and reinsurance companies | |||
Segmented Information | |||
Holding company cash and investments | 604.5 | 598.1 | |
Insurance contract receivables | 7,266 | 6,052.5 | |
Portfolio investments | 45,061.8 | 37,947.8 | |
Deferred premium acquisition costs | 1,977.3 | 1,574.4 | |
Recoverable from reinsurers (including recoverables on paid losses - $884.3; December 31, 2020 - $686.8) | 13,497.3 | 11,254.2 | |
Deferred income tax assets | 268.2 | 460 | |
Goodwill and intangible assets | 3,579.5 | 3,586.2 | |
Due from affiliates | 231.9 | 222.6 | |
Other assets | 1,746 | 1,526.4 | |
Investments in affiliates | 167.2 | 153.2 | |
Total assets | 74,399.7 | 63,375.4 | |
Accounts payable and accrued liabilities | 2,150.4 | 1,843.3 | |
Derivative obligations (including at the holding company - $32.1; December 31, 2020 - $22.8) | 72.5 | 114.9 | |
Due to affiliates | 29.4 | 8.3 | |
Deferred income tax liabilities | 322.2 | 152.7 | |
Insurance contract payables | 4,289.4 | 3,224.2 | |
Provision for losses and loss adjustment expenses | 33,684.6 | 29,809.4 | |
Provision for unearned premiums | 10,694.5 | 8,550.1 | |
Borrowings | 790.7 | 1,033.4 | |
Total liabilities | 52,033.7 | 44,736.3 | |
Shareholders' equity attributable to shareholders of Fairfax | 19,778.9 | 17,117.4 | |
Non-controlling interests | 2,587.1 | 1,521.7 | |
Total equity | 22,366 | 18,639.1 | |
Total liabilities and total equity | 74,399.7 | 63,375.4 | |
Operating segments | Life insurance and Run-off | |||
Segmented Information | |||
Insurance contract receivables | 7.8 | 8.4 | |
Portfolio investments | 4,963.9 | 1,592.4 | |
Deferred premium acquisition costs | 3.8 | ||
Recoverable from reinsurers (including recoverables on paid losses - $884.3; December 31, 2020 - $686.8) | 457.6 | 453.7 | |
Deferred income tax assets | 29 | 0.1 | |
Goodwill and intangible assets | 7.5 | 41.1 | |
Due from affiliates | 360.2 | 357.7 | |
Other assets | 810 | 119.2 | |
Investments in affiliates | 29.3 | 29.3 | |
Total assets | 6,669.1 | 2,601.9 | |
Accounts payable and accrued liabilities | 233.4 | 59.9 | |
Derivative obligations (including at the holding company - $32.1; December 31, 2020 - $22.8) | 1.1 | ||
Due to affiliates | 0.2 | ||
Deferred income tax liabilities | 72.9 | ||
Insurance contract payables | 652 | 11.6 | |
Provision for losses and loss adjustment expenses | 4,806.1 | 2,023.3 | |
Provision for unearned premiums | 16.5 | ||
Total liabilities | 5,781.1 | 2,095.9 | |
Shareholders' equity attributable to shareholders of Fairfax | 888 | 506 | |
Total equity | 888 | 506 | |
Total liabilities and total equity | 6,669.1 | 2,601.9 | |
Investments in associates (fair value $5,671.9; December 31, 2020 - $4,154.3) | 272.6 | 129.3 | |
Operating segments | Non-insurance companies | |||
Segmented Information | |||
Portfolio investments | 2,252.8 | 1,810.3 | |
Deferred income tax assets | 66.9 | 64.5 | |
Goodwill and intangible assets | 2,341.2 | 2,601.8 | |
Due from affiliates | 3.8 | ||
Other assets | 3,195.5 | 3,868.6 | |
Total assets | 7,856.4 | 8,349 | |
Accounts payable and accrued liabilities | 2,077.4 | 2,566.4 | |
Derivative obligations (including at the holding company - $32.1; December 31, 2020 - $22.8) | 47.9 | 50 | |
Due to affiliates | 135.1 | 117.6 | |
Deferred income tax liabilities | 198.5 | 197.7 | |
Borrowings | 1,616.2 | 2,192.5 | |
Total liabilities | 4,075.1 | 5,124.2 | |
Shareholders' equity attributable to shareholders of Fairfax | 1,782.5 | 1,385.9 | |
Non-controlling interests | 1,998.8 | 1,838.9 | |
Total equity | 3,781.3 | 3,224.8 | |
Total liabilities and total equity | 7,856.4 | 8,349 | |
Investments in associates (fair value $5,671.9; December 31, 2020 - $4,154.3) | 1,379.7 | 1,373.5 | |
Material reconciling items [member] | |||
Segmented Information | |||
Holding company cash and investments | 873.8 | 654.1 | |
Insurance contract receivables | (390.6) | (244.8) | |
Portfolio investments | (581.1) | 758.1 | |
Deferred premium acquisition costs | (57) | (30.7) | |
Recoverable from reinsurers (including recoverables on paid losses - $884.3; December 31, 2020 - $686.8) | (1,864.4) | (1,174.7) | |
Deferred income tax assets | 158.3 | 189.3 | |
Due from affiliates | (592.1) | (584.1) | |
Other assets | 369.8 | 343 | |
Investments in affiliates | (196.5) | (182.5) | |
Total assets | (2,279.8) | (272.3) | |
Accounts payable and accrued liabilities | 524.2 | 526.5 | |
Derivative obligations (including at the holding company - $32.1; December 31, 2020 - $22.8) | 32.5 | 23.4 | |
Due to affiliates | (164.7) | (125.9) | |
Deferred income tax liabilities | 5.2 | 6 | |
Insurance contract payables | (447.9) | (271.8) | |
Provision for losses and loss adjustment expenses | (1,598.4) | (1,023.4) | |
Provision for unearned premiums | (256.8) | (152.6) | |
Borrowings | 5,346.1 | 5,588.1 | |
Total liabilities | 3,440.2 | 4,570.3 | |
Shareholders' equity attributable to shareholders of Fairfax | (6,064.3) | (5,152.7) | |
Non-controlling interests | 344.3 | 310.1 | |
Total equity | (5,720) | (4,842.6) | |
Total liabilities and total equity | (2,279.8) | (272.3) | |
Investments in associates (fair value $5,671.9; December 31, 2020 - $4,154.3) | $ 1,066.3 | 1,827.5 | |
Material reconciling items [member] | RiverStone Barbados | |||
Segmented Information | |||
Investment in associate held for sale | $ 729.5 |
Expenses (Details)
Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses [Line Items] | ||
Losses and loss adjustment expenses | $ 10,272.9 | $ 8,954.5 |
Cost of sales | 2,987.5 | 2,997.6 |
Wages and salaries | 2,308.4 | 1,991.5 |
Depreciation, amortization and impairment charges | 930.4 | 752.1 |
Employee benefits | 462.2 | 398.2 |
Premium taxes | 285.9 | 240.3 |
Information technology costs | 257 | 227.4 |
Audit, legal and tax professional fees | 203.1 | 205 |
Repairs, maintenance and utilities | 157.4 | 122.7 |
Share-based payments to directors and employees | 136.5 | 109.5 |
Shipping and delivery | 121.2 | 108.7 |
Marketing costs | 103.5 | 95.1 |
Administrative expense and other | 547.5 | 517.3 |
Total expenses | 18,773.5 | 16,719.9 |
Commissions, net | 2,787.9 | 2,355 |
Interest expense | 513.9 | 475.9 |
Expenses | 22,075.3 | 19,550.8 |
Insurance and reinsurance companies. | ||
Expenses [Line Items] | ||
Losses and loss adjustment expenses | 10,272.9 | 8,954.5 |
Wages and salaries | 1,547.1 | 1,359.1 |
Depreciation, amortization and impairment charges | 291 | 234.6 |
Employee benefits | 345.3 | 293 |
Premium taxes | 285.9 | 240.3 |
Information technology costs | 216.3 | 194.4 |
Audit, legal and tax professional fees | 159.7 | 141 |
Repairs, maintenance and utilities | 13.2 | 12.7 |
Share-based payments to directors and employees | 118.2 | 103.6 |
Shipping and delivery | 1.2 | 1.2 |
Marketing costs | 33.4 | 27.6 |
Administrative expense and other | 402.4 | 299 |
Total expenses | 13,686.6 | 11,861 |
Commissions, net | 2,787.9 | 2,355 |
Interest expense | 373.6 | 305.3 |
Expenses | 16,848.1 | 14,521.3 |
Non-insurance companies. | ||
Expenses [Line Items] | ||
Cost of sales | 2,987.5 | 2,997.6 |
Wages and salaries | 761.3 | 632.4 |
Depreciation, amortization and impairment charges | 639.4 | 517.5 |
Employee benefits | 116.9 | 105.2 |
Information technology costs | 40.7 | 33 |
Audit, legal and tax professional fees | 43.4 | 64 |
Repairs, maintenance and utilities | 144.2 | 110 |
Share-based payments to directors and employees | 18.3 | 5.9 |
Shipping and delivery | 120 | 107.5 |
Marketing costs | 70.1 | 67.5 |
Administrative expense and other | 145.1 | 218.3 |
Total expenses | 5,086.9 | 4,858.9 |
Interest expense | 140.3 | 170.6 |
Expenses | 5,227.2 | 5,029.5 |
Decrease in other expenses due to wage assistance | 62.1 | 123.8 |
Lease concessions, COVID related | $ 28.9 | $ 15.8 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Total | $ 11,685.4 | $ 4,467.1 | $ 3,863.3 |
Restricted cash and cash equivalents | |||
Total | 1,261 | 789.6 | |
Cash. | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash | 5,424.2 | 2,853.9 | |
Restricted cash and cash equivalents | |||
Cash | 486.2 | 387.1 | |
Cash and cash equivalents included on the balance sheet | |||
Cash | 5,910.4 | 3,241 | |
Cash. | Holding company cash and investments | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash | 129.9 | 81.9 | |
Restricted cash and cash equivalents | |||
Cash | 5.8 | ||
Cash and cash equivalents included on the balance sheet | |||
Cash | 129.9 | 87.7 | |
Cash. | Subsidiary cash and short term investments | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash | 5,259.2 | 2,736 | |
Restricted cash and cash equivalents | |||
Cash | 484.6 | 349.4 | |
Cash and cash equivalents included on the balance sheet | |||
Cash | 5,743.8 | 3,085.4 | |
Cash. | Fairfax India Holdings Corporation (Fairfax India) | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash | 35.1 | 36 | |
Restricted cash and cash equivalents | |||
Cash | 1.6 | 31.9 | |
Cash and cash equivalents included on the balance sheet | |||
Cash | 36.7 | 67.9 | |
Cash equivalents | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash equivalents | 6,261.2 | 1,613.2 | |
Restricted cash and cash equivalents | |||
Cash equivalents | 774.8 | 402.5 | |
Cash and cash equivalents included on the balance sheet | |||
Cash equivalents | 7,036 | 2,015.7 | |
Cash equivalents | Holding company cash and investments | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash equivalents | 336 | 192.3 | |
Cash and cash equivalents included on the balance sheet | |||
Cash equivalents | 336 | 192.3 | |
Cash equivalents | Holding company assets pledged for derivative obligations | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash equivalents | 46.8 | ||
Cash and cash equivalents included on the balance sheet | |||
Cash equivalents | 46.8 | ||
Cash equivalents | Subsidiary cash and short term investments | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash equivalents | 5,777.6 | 1,398.6 | |
Restricted cash and cash equivalents | |||
Cash equivalents | 761.8 | 402.5 | |
Cash and cash equivalents included on the balance sheet | |||
Cash equivalents | 6,539.4 | 1,801.1 | |
Cash equivalents | Fairfax India Holdings Corporation (Fairfax India) | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Cash equivalents | 26.8 | 22.3 | |
Restricted cash and cash equivalents | |||
Cash equivalents | 13 | ||
Cash and cash equivalents included on the balance sheet | |||
Cash equivalents | 39.8 | 22.3 | |
Cash and cash equivalents. | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Total | 11,685.4 | 4,467.1 | |
Restricted cash and cash equivalents | |||
Total | 1,261 | 789.6 | |
Cash and cash equivalents included on the balance sheet | |||
Total | 12,946.4 | 5,256.7 | |
Cash and cash equivalents. | Holding company cash and investments | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Total | 465.9 | 274.2 | |
Restricted cash and cash equivalents | |||
Total | 5.8 | ||
Cash and cash equivalents included on the balance sheet | |||
Total | 465.9 | 280 | |
Cash and cash equivalents. | Holding company assets pledged for derivative obligations | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Total | 46.8 | ||
Cash and cash equivalents included on the balance sheet | |||
Total | 46.8 | ||
Cash and cash equivalents. | Subsidiary cash and short term investments | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Total | 11,036.8 | 4,134.6 | |
Restricted cash and cash equivalents | |||
Total | 1,246.4 | 751.9 | |
Cash and cash equivalents included on the balance sheet | |||
Total | 12,283.2 | 4,886.5 | |
Cash and cash equivalents. | Fairfax India Holdings Corporation (Fairfax India) | |||
Unrestricted cash and cash equivalents included in the statement of cash flows | |||
Total | 61.9 | 58.3 | |
Restricted cash and cash equivalents | |||
Total | 14.6 | 31.9 | |
Cash and cash equivalents included on the balance sheet | |||
Total | $ 76.5 | $ 90.2 |
Supplementary Cash Flow Infor_4
Supplementary Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net (purchases) sales of securities classified at FVTPL | ||
Short term investments | $ (767.1) | $ (2,138.1) |
Bonds | 2,545.7 | 287.2 |
Preferred stocks | (37.3) | (24.5) |
Common stocks | 477.2 | 18.4 |
Net derivatives and other invested assets | 395.9 | (479.2) |
Net sales of securities classified as FVTPL | 2,614.4 | (2,336.2) |
Changes in operating assets and liabilities | ||
Net increase in restricted cash and cash equivalents | (472.6) | (187.8) |
Provision for losses and loss adjustment expenses | 3,692 | 1,884.3 |
Provision for unearned premiums | 2,152.2 | 1,243.2 |
Provision for life policy benefits | (167.9) | |
Insurance contract receivables | (1,152.9) | (496.7) |
Insurance contract payables | 1,079.8 | 441.9 |
Recoverable from reinsurers | (1,580) | (898.8) |
Other receivables | (96.7) | 104.9 |
Accounts payable and accrued liabilities | 291.1 | (45.4) |
Other | (758.1) | (172.4) |
Changes in operating assets and liabilities | (2,986.9) | (1,873.2) |
Net interest and dividends received | ||
Interest and dividends received | 865.7 | 789.8 |
Interest paid on borrowings | (366.7) | (370.4) |
Interest paid on lease liabilities | (54.8) | (62.4) |
Net interest and dividends received | 444.2 | 357 |
Net income taxes paid | $ (288.7) | $ (63.3) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Apr. 29, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 05, 2021 | Feb. 26, 2021 |
Thomas Cook India | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Share-based payments | $ 60 | ||||||
Non-controlling interests | Eurolife ERB Insurance Group Holdings S.A. | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Proportion of ownership interests held by non-controlling interests | 20.00% | ||||||
Key management team | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Salaries and other short-term employee benefits | $ 10.8 | $ 10.9 | |||||
Share-based payments | 4.7 | 3.5 | |||||
Related party compensation | 15.5 | 14.4 | |||||
Board of Directors | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Retainers and fees | 1.5 | 1.1 | |||||
Share-based payments | 0.4 | 0.6 | |||||
Related party compensation | 1.9 | 1.7 | |||||
Fairfax India Holdings Corporation (Fairfax India) | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Amounts receivable, related party transactions | 84.7 | $ 5.2 | |||||
Number of subordinate voting shares received for performance fee | 546,263 | ||||||
Proportion Of Sale Of Equity Interest Rate Held By Related Parties | 48.80% | ||||||
Fairfax India 5.00% Unsecured Senior Notes Due 2028 | Non-insurance companies. | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Notional amount | $ 441.6 | $ 550 | $ 500 | ||||
Interest rate | 5.00% | 5.00% | 5.00% | ||||
Fairfax India 5.00% Unsecured Senior Notes Due 2028 | Insurance and reinsurance companies. | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Notional amount | $ 58.4 | ||||||
Fairfax India 5.00% Unsecured Senior Notes Due 2028 | Insurance and reinsurance companies. | Subsequent Events | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Notional amount | $ 58.4 | ||||||
Interest rate | 5.00% | ||||||
Helios Fairfax Partners Corporation | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Investment in unsecured debentures and warrants | $ 100 |
Subsidiaries (Details)
Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Recipe Unlimited Corporation (Recipe) | |
Subsidiaries | |
Proportion of voting rights held in associate | 61.00% |
Fairfax India Holdings Corporation (Fairfax India) | |
Subsidiaries | |
Proportion of voting rights held in associate | 93.90% |
Boat Rocker Media Inc. (Boat Rocker) | |
Subsidiaries | |
Proportion of voting rights held in associate | 56.10% |
Property and Casualty Insurance and Reinsurance | Northbridge Financial Corporation (Northbridge) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Odyssey Group Holdings, Inc. (Odyssey Group) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 90.00% |
Property and Casualty Insurance and Reinsurance | Crum & Forster Holdings Corp. (Crum & Forster) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Zenith National Insurance Corp. (Zenith National) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Brit Limited (Brit) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 86.20% |
Property and Casualty Insurance and Reinsurance | Allied World Assurance Company Holdings, Ltd (Allied World) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 70.90% |
Property and Casualty Insurance and Reinsurance | Bryte Insurance Company Ltd (Bryte Insurance) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Eurolife FFH General Insurance Single Member S.A. (Eurolife General) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 80.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | Polskie Towarzystwo Reasekuracji Spolka Akcyjna (Polish Re) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | Colonnade Insurance S.A. (Colonnade Insurance) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | FFH Ukraine Holdings (Fairfax Ukraine) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 70.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | ARX Insurance Company (ARX Insurance) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | Private Joint Stock Company Insurance Company Universalna (Universalna) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | Fairfax Brasil Seguros Corporativos S.A. (Fairfax Brasil) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | La Meridional Compania Argentina de Seguros S.A. (La Meridional Argentina) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | SBS Seguros Colombia S.A. (Southbridge Colombia) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | SBI Seguros Uruguay S.A. (Southbridge Uruguay) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | Southbridge Compaa de Seguros Generales S.A. (Southbridge Chile) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Group Re | CRC Reinsurance Limited (CRC Re) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Group Re | Wentworth Insurance Company Ltd. (Wentworth) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Group Re | Connemara Reinsurance Company Ltd. (Connemara) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Falcon Insurance Company (Hong Kong) Limited (Falcon) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | The Pacific Insurance Berhad (Pacific Insurance) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 85.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | PT Asuransi Multi Artha Guna Tbk (AMAG Insurance) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 80.30% |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Fairfirst Insurance Limited (Fairfirst Insurance) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 78.00% |
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Singapore Reinsurance Corporation Limited (Singapore Re) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Life insurance and Run-off | Eurolife FFH Life Insurance Group Holdings S.A. (Eurolife) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 80.00% |
Run-off | TIG Insurance Company (TIG Insurance) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Investment management | Hamblin Watsa Investment Counsel Ltd. (Hamblin Watsa) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 100.00% |
Non-insurance companies | Restaurants and retail | Recipe Unlimited Corporation (Recipe) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 38.50% |
Non-insurance companies | Restaurants and retail | Sporting Life Group Limited | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 71.40% |
Non-insurance companies | Fairfax India | Fairfax India Holdings Corporation (Fairfax India) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 30.10% |
Non-insurance companies | Thomas Cook India | Thomas Cook (India) Limited (Thomas Cook India) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 66.80% |
Non-insurance companies | Other subsegments | AGT Food and Ingredients Inc. (AGT) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 58.00% |
Non-insurance companies | Other subsegments | Dexterra Group Inc. (Dexterra Group) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 48.80% |
Non-insurance companies | Other subsegments | Boat Rocker Media Inc. (Boat Rocker) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 45.00% |
Non-insurance companies | Other subsegments | Farmers Edge Inc. (Farmers Edge) | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 61.40% |
Sporting Life Group Limited | Sporting Life Inc. (Sporting Life) | |
Subsidiaries | |
Proportion of voting rights held in associate | 100.00% |
Sporting Life Group Limited | Sporting Life Inc. (Sporting Life) | Non-insurance companies | Restaurants and retail | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 71.40% |
Sporting Life Group Limited | Golf Town Limited (Golf Town) | |
Subsidiaries | |
Proportion of voting rights held in associate | 100.00% |
Sporting Life Group Limited | Golf Town Limited (Golf Town) | Non-insurance companies | Restaurants and retail | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 71.40% |
Fairfax India Holdings Corporation (Fairfax India) | National Commodities Management Services Limited (NCML) | |
Subsidiaries | |
Proportion of voting rights held in associate | 89.50% |
Thomas Cook (India) Limited (Thomas Cook India) | Sterling Holiday Resorts Limited (Sterling Resorts) | |
Subsidiaries | |
Proportion of voting rights held in associate | 100.00% |
Thomas Cook (India) Limited (Thomas Cook India) | Sterling Holiday Resorts Limited (Sterling Resorts) | Non-insurance companies | Thomas Cook India | |
Subsidiaries | |
Proportion of ownership interest in subsidiary | 66.80% |