Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
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, 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-31556 |
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 | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 271 |
Document Financial Statement Error Correction [Flag] | false |
Fairfax subordinate voting shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 22,254,478 |
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, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Assets | ||||
Holding company cash and investments (including assets pledged for derivative obligations - $197.7; December 31, 2022 - $104.6; January 1, 2022 - $111.0) | $ 1,781.6 | $ 1,345.8 | $ 1,478.3 | |
Insurance contract receivables | 926.1 | 648.9 | 650.1 | |
Portfolio investments | ||||
Subsidiary cash and short term investments (including restricted cash and cash equivalents - $637.0; December 31, 2022 - $854.4; January 1, 2022 - $1,246.4) | 7,165.6 | 9,368.2 | 21,799.5 | |
Bonds (cost $36,511.9; December 31, 2022 - $29,534.4; January 1, 2022 - $13,836.3) | 36,850.8 | 28,578.5 | 14,091.2 | |
Preferred stocks (cost $898.3; December 31, 2022 - $808.3; January 1, 2022 - $576.6) | 2,447.4 | 2,338 | 2,405.9 | |
Common stocks (cost $6,577.2; December 31, 2022 - $5,162.6; January 1, 2022 - $4,717.2) | 6,903.4 | 5,124.3 | 5,468.9 | |
Investments in associates (fair value $7,553.2; December 31, 2022 - $6,772.9; January 1, 2022 - $5,671.9) | 6,607.6 | 6,093.1 | 4,749.2 | |
Derivatives and other invested assets (cost $952.0; December 31, 2022 - $869.8; January 1, 2022 - $888.2) | 1,025.3 | 828.5 | 991.2 | |
Assets pledged for derivative obligations (cost $137.7; December 31, 2022 - $52.4; January 1, 2022 - $119.6) | 139.3 | 51.3 | 119.6 | |
Fairfax India cash, portfolio investments and associates (fair value $3,507.6; December 31, 2022 - $3,079.6; January 1, 2022 - $3,336.4) | 2,282.7 | 1,942.8 | 2,066 | |
Total portfolio investments | 63,422.1 | 54,324.7 | 51,691.5 | |
Reinsurance contract assets held | 10,887.7 | 9,691.5 | 9,893.1 | |
Deferred income tax assets | 301.1 | 137.3 | 449.1 | |
Goodwill and intangible assets | 6,376.3 | 5,689 | 5,928.2 | |
Other assets | 8,290.2 | 6,981.3 | 6,034.1 | |
Total assets | 91,985.1 | 78,818.5 | 76,124.4 | |
Liabilities | ||||
Accounts payable and accrued liabilities | 5,487.2 | 4,806.6 | 4,587.6 | |
Derivative obligations | 444.9 | 191 | 152.9 | |
Deferred income tax liabilities | 1,250.3 | 868 | 586.5 | |
Insurance contract payables | 1,206.9 | 1,402.7 | 1,826 | |
Insurance contract liabilities | 46,171.4 | 39,906.6 | 39,742.2 | |
Borrowings | 9,723.5 | 8,624.9 | ||
Total liabilities | 64,284.2 | 55,799.8 | 54,648.2 | |
Equity | ||||
Shareholders' equity attributable to shareholders of Fairfax | 22,950.5 | 19,115.8 | 16,535.3 | |
Non-controlling interests | 4,750.4 | 3,902.9 | 4,940.9 | |
Total equity | 27,700.9 | 23,018.7 | [1] | 21,476.2 |
Total liabilities and total equity | 91,985.1 | 78,818.5 | 76,124.4 | |
Common shares | ||||
Equity | ||||
Equity in stock | 21,615 | 17,780.3 | 15,199.8 | |
Preferred shares | ||||
Equity | ||||
Equity in stock | 1,335.5 | 1,335.5 | 1,335.5 | |
Holding company and insurance and reinsurance companies | ||||
Liabilities | ||||
Borrowings | 7,824.5 | 6,621 | 6,129.3 | |
Non-insurance companies | ||||
Liabilities | ||||
Borrowings | $ 1,899 | $ 2,003.9 | $ 1,623.7 | |
[1] See note 3 for details of transition to IFRS 17. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Consolidated Balance Sheets | |||
Restricted cash and cash equivalents | $ 642.3 | $ 861.2 | |
Investments in associates, at fair value | 7,553.2 | 6,772.9 | |
Holding company cash and investments | |||
Consolidated Balance Sheets | |||
Assets pledged for derivative obligations | 197.7 | 104.6 | $ 111 |
Portfolio investments | |||
Consolidated Balance Sheets | |||
Restricted cash and cash equivalents | 637 | 854.4 | 1,246.4 |
Bonds, at cost | 36,511.9 | 29,534.4 | 13,836.3 |
Preferred stocks, at cost | 898.3 | 808.3 | 576.6 |
Common stocks, at cost | 6,577.2 | 5,162.6 | 4,717.2 |
Investments in associates, at fair value | 7,553.2 | 6,772.9 | 5,671.9 |
Derivatives and other invested assets, at cost | 952 | 869.8 | 888.2 |
Assets pledged for derivative obligations, at cost | 137.7 | 52.4 | 119.6 |
Portfolio investments | Fairfax India | |||
Consolidated Balance Sheets | |||
Fairfax India cash, portfolio investments and associates, at fair value | $ 3,507.6 | $ 3,079.6 | $ 3,336.4 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Insurance | |||
Insurance revenue | $ 26,934.8 | $ 24,703.5 | |
Insurance service expenses | (21,944.1) | (20,467.3) | |
Net insurance result | 4,990.7 | 4,236.2 | |
Cost of reinsurance | (4,977.4) | (4,509.2) | |
Recoveries of insurance service expenses | 3,943.7 | 3,274.4 | |
Net reinsurance result | (1,033.7) | (1,234.8) | |
Insurance service result | 3,957 | 3,001.4 | |
Other insurance operating expenses | (966.4) | (656.4) | |
Net finance income (expense) from insurance contracts | (2,152.7) | 2,014.4 | |
Net finance income (expense) from reinsurance contract assets held | 547.1 | (397.1) | |
Total | 1,385 | 3,962.3 | |
Investment income | |||
Interest and dividends | 1,896.2 | 961.8 | |
Share of profit (loss) of associates | 1,022.2 | 1,022.4 | |
Net gains (losses) on investments | 1,949.5 | (1,573.2) | |
Total | 4,867.9 | 411 | |
Other revenue and expenses | |||
Non-insurance revenue | 6,614.5 | 5,581.6 | |
Non-insurance expenses | (6,568.7) | (5,520.9) | |
Gain on sale and consolidation of insurance subsidiaries | 549.8 | 1,219.7 | |
Interest expense | (510) | (452.8) | |
Corporate and other expenses | (430.2) | (296.7) | |
Total | (344.6) | 530.9 | |
Earnings before income taxes | 5,908.3 | 4,904.2 | |
Provision for income taxes | (813.4) | (1,092.5) | |
Net earnings | 5,094.9 | 3,811.7 | [1] |
Attributable to: | |||
Shareholders of Fairfax | 4,381.8 | 3,374.2 | |
Non-controlling interests | 713.1 | 437.5 | |
Net earnings | $ 5,094.9 | $ 3,811.7 | [1] |
Net earnings per share (in dollars per share) | $ 186.87 | $ 140.83 | |
Net earnings per diluted share (in dollars per share) | 173.24 | 131.37 | |
Cash dividends paid per share (in dollars per share) | $ 10 | $ 10 | |
Shares outstanding (000) (weighted average) (in shares) | 23,182,558 | 23,637,824 | |
[1] See note 3 for details of transition to IFRS 17. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Statement | |||
Net earnings | $ 5,094.9 | $ 3,811.7 | [1] |
Items that may be subsequently reclassified to net earnings | |||
Net unrealized foreign currency translation losses on foreign subsidiaries | (39.6) | (676.6) | |
Share of other comprehensive income (loss) of associates, excluding net gains (losses) on defined benefit plans | 30.5 | (132) | |
Other | 0.3 | 2.2 | |
Items that may be subsequently reclassified to net earnings (loss) before reclassification adjustments | (93.2) | (605.1) | |
Net unrealized foreign currency translation losses on foreign subsidiaries reclassified to net earnings | 1.9 | 19.7 | |
Net unrealized foreign currency translation (gains) losses on associates reclassified to net earnings | 18.2 | (4.3) | |
Items that may be subsequently reclassified to net earnings (loss) | (73.1) | (589.7) | |
Items that will not be subsequently reclassified to net earnings | |||
Net gains (losses) on defined benefit plans | (32.9) | 121.7 | |
Share of net gains (losses) on defined benefit plans of associates | (5.1) | 59.4 | |
Other | 28.2 | ||
Items that will not be subsequently reclassified to net earnings (loss) | (9.8) | 181.1 | |
Other comprehensive income (loss), net of income taxes | (82.9) | (408.6) | |
Comprehensive income | 5,012 | 3,403.1 | |
Attributable to: | |||
Shareholders of Fairfax | 4,353.4 | 3,163.5 | |
Non-controlling interests | 658.6 | 239.6 | |
Comprehensive income | 5,012 | 3,403.1 | |
Canada | |||
Statement | |||
Net earnings | 880.7 | 394 | |
Items that may be subsequently reclassified to net earnings | |||
Gains (losses) on hedge of net investment | (56.6) | 149.5 | |
Europe | |||
Items that may be subsequently reclassified to net earnings | |||
Gains (losses) on hedge of net investment | $ (27.8) | $ 51.8 | |
[1] See note 3 for details of transition to IFRS 17. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Issued capital Common shares | [1] | Issued capital Preferred 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' equity Canada | Common shareholders' equity Europe | Common shareholders' equity | Equity attributable to shareholders of Fairfax Canada | Equity attributable to shareholders of Fairfax Europe | Equity attributable to shareholders of Fairfax | Non-controlling interests | Preferred shares | Canada | Europe | Total | ||||||
Beginning balance (Previously reported) 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 | ||||||||||||||||
Beginning balance (Adjustment on initial application of IFRS 17, net of tax) at Dec. 31, 2021 | [2] | 150.2 | 150.2 | 150.2 | 10.7 | 160.9 | ||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | [2] | 6,182.4 | 1,335.5 | (808.1) | 504.8 | 10,122.4 | (801.7) | 15,199.8 | 16,535.3 | 4,940.9 | 21,476.2 | |||||||||||||||
Changes in equity | ||||||||||||||||||||||||||
Net earnings for the year | 3,374.2 | [2] | 3,374.2 | [2] | 3,374.2 | [2] | 437.5 | [2] | $ 394 | 3,811.7 | [2] | |||||||||||||||
Other comprehensive income (loss), net of income taxes: | ||||||||||||||||||||||||||
Net unrealized foreign currency translation gains (losses) on foreign operations | (483) | (483) | (483) | (193.6) | (676.6) | |||||||||||||||||||||
Gains (losses) on hedge of net investment | $ 149.5 | $ 51.8 | $ 149.5 | $ 51.8 | $ 149.5 | $ 51.8 | 149.5 | $ 51.8 | ||||||||||||||||||
Share of other comprehensive gains (loss) of associates, excluding net gains on defined benefit plans | (120.7) | (120.7) | (120.7) | (11.3) | (132) | |||||||||||||||||||||
Net unrealized foreign currency translation losses on foreign subsidiaries reclassified to net earnings | 19.7 | 19.7 | 19.7 | 19.7 | ||||||||||||||||||||||
Net unrealized foreign currency translation gains (losses) on associates reclassified to net earnings | (3.9) | (3.9) | (3.9) | (0.4) | (4.3) | |||||||||||||||||||||
Net gains (losses) on defined benefit plans | 116.9 | 116.9 | 116.9 | 4.8 | 121.7 | |||||||||||||||||||||
Share of net gains (losses) on defined benefit plans of associates | 57.8 | 57.8 | 57.8 | 1.6 | 59.4 | |||||||||||||||||||||
Other | 1.2 | 1.2 | 1.2 | 1 | 2.2 | |||||||||||||||||||||
Issuances for share-based payments | 62.4 | (70.2) | (7.8) | (7.8) | 5.3 | (2.5) | ||||||||||||||||||||
Purchases and amortization for share-based payments | (148.2) | 146.1 | (2.1) | (2.1) | (20.3) | (22.4) | ||||||||||||||||||||
Purchases for cancellation | (96.1) | (103.5) | (199.6) | (199.6) | (199.6) | |||||||||||||||||||||
Common share dividends | (249.9) | (249.9) | (249.9) | (263.2) | (513.1) | |||||||||||||||||||||
Preferred share dividends | (45.2) | (45.2) | (45.2) | $ (45.2) | (45.2) | |||||||||||||||||||||
Acquisitions of subsidiaries | 111.5 | 111.5 | ||||||||||||||||||||||||
Net changes in capitalization | 37.6 | (145.5) | (107.9) | (107.9) | (1,136.6) | (1,244.5) | ||||||||||||||||||||
Other | 2.6 | (2.6) | 29.5 | 29.5 | 29.5 | 25.7 | 55.2 | |||||||||||||||||||
Ending balance (Previously reported) at Dec. 31, 2022 | 6,086.3 | 1,335.5 | (891.3) | 615.7 | 10,509.6 | (979.6) | 15,340.7 | 16,676.2 | 3,659.6 | 20,335.8 | ||||||||||||||||
Ending balance (Adjustment for IFRS 17, net of tax for the full year) at Dec. 31, 2022 | [2] | 2,292.7 | (3.3) | 2,289.4 | 2,289.4 | 232.6 | 2,522 | |||||||||||||||||||
Ending balance at Dec. 31, 2022 | [2] | 6,086.3 | 1,335.5 | (891.3) | 615.7 | 12,952.5 | (982.9) | 17,780.3 | 19,115.8 | 3,902.9 | 23,018.7 | |||||||||||||||
Changes in equity | ||||||||||||||||||||||||||
Net earnings for the year | 4,381.8 | 4,381.8 | 4,381.8 | 713.1 | 880.7 | 5,094.9 | ||||||||||||||||||||
Other comprehensive income (loss), net of income taxes: | ||||||||||||||||||||||||||
Net unrealized foreign currency translation gains (losses) on foreign operations | 15.5 | 15.5 | 15.5 | (55.1) | (39.6) | |||||||||||||||||||||
Gains (losses) on hedge of net investment | $ (56.6) | $ (27.8) | $ (56.6) | $ (27.8) | $ (56.6) | $ (27.8) | $ (56.6) | $ (27.8) | ||||||||||||||||||
Share of other comprehensive gains (loss) of associates, excluding net gains on defined benefit plans | 28.8 | 28.8 | 28.8 | 1.7 | 30.5 | |||||||||||||||||||||
Net unrealized foreign currency translation losses on foreign subsidiaries reclassified to net earnings | 1.6 | 1.6 | 1.6 | 0.3 | 1.9 | |||||||||||||||||||||
Net unrealized foreign currency translation gains (losses) on associates reclassified to net earnings | 17.9 | 17.9 | 17.9 | 0.3 | 18.2 | |||||||||||||||||||||
Net gains (losses) on defined benefit plans | (31.5) | (31.5) | (31.5) | (1.4) | (32.9) | |||||||||||||||||||||
Share of net gains (losses) on defined benefit plans of associates | (1.5) | (1.5) | (1.5) | (3.6) | (5.1) | |||||||||||||||||||||
Other | 25.2 | 25.2 | 25.2 | 3.3 | 28.5 | |||||||||||||||||||||
Issuances for share-based payments | 74.2 | (77.4) | (3.2) | (3.2) | (3.2) | |||||||||||||||||||||
Purchases and amortization for share-based payments | (89.6) | 147 | 57.4 | 57.4 | 57.4 | |||||||||||||||||||||
Purchases for cancellation | (90.4) | (183.2) | (273.6) | (273.6) | (273.6) | |||||||||||||||||||||
Common share dividends | (245.2) | (245.2) | (245.2) | (204.5) | (449.7) | |||||||||||||||||||||
Preferred share dividends | (49.7) | (49.7) | (49.7) | $ (49.7) | (49.7) | |||||||||||||||||||||
Acquisitions of subsidiaries | 602.6 | 602.6 | ||||||||||||||||||||||||
Net changes in capitalization | (72.6) | 19.5 | (14.1) | (67.2) | (67.2) | (252.1) | (319.3) | |||||||||||||||||||
Other | (0.4) | 63.2 | 62.8 | 62.8 | 42.9 | 105.7 | ||||||||||||||||||||
Ending balance at Dec. 31, 2023 | $ 5,995.9 | $ 1,335.5 | $ (906.7) | $ 612.7 | $ 16,875.3 | $ (962.2) | $ 21,615 | $ 22,950.5 | $ 4,750.4 | $ 27,700.9 | ||||||||||||||||
[1] Includes multiple voting shares with a carrying value of $3.8 at January 1, 2022, December 31, 2022 and December 31, 2023. See note 3 for details of transition to IFRS 17. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Issued capital | Multiple voting shares | |||
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, 2023 | Dec. 31, 2022 | ||
Operating activities | |||
Net earnings | $ 5,094.9 | $ 3,811.7 | [1] |
Depreciation, amortization and impairment charges | 896 | 677.4 | |
Net bond discount amortization | (406.3) | (34.2) | |
Amortization of share-based payment awards | 147 | 146.1 | |
Share of profit of associates | (1,022.2) | (1,022.4) | |
Net deferred income taxes | 173.3 | 485.7 | |
Net (gains) losses on investments | (1,949.5) | 1,573.2 | |
Gain on sale and consolidation of insurance subsidiaries | (549.8) | (1,219.7) | |
Net purchases of investments classified at FVTPL | (5,499.1) | (9,640.2) | |
Changes in operating assets and liabilities | 3,076.3 | 802.5 | |
Cash used in operating activities | (39.4) | (4,419.9) | |
Investing activities | |||
Sales of investments in associates | 1,065.3 | 192.9 | |
Purchases of investments in associates | (882) | (363.5) | |
Net purchases of premises and equipment and intangible assets | (514.1) | (418.9) | |
Net sales of investment property | 53.3 | 84.7 | |
Purchases of subsidiaries, net of cash acquired | 240.8 | (229.9) | |
Cash provided by investing activities | 92 | 384.8 | |
Financing activities | |||
Purchases for treasury | (89.6) | (148.2) | |
Purchases for cancellation | (273.6) | (199.6) | |
Common share dividends | (245.2) | (249.9) | |
Preferred share dividends | (49.7) | (45.2) | |
Subsidiary shares: | |||
Issuances to non-controlling interests, net of issuance costs | 27.7 | 167.5 | |
Purchases of non-controlling interests | (340.2) | (1,384.7) | |
Sales to non-controlling interests | 65.6 | ||
Dividends paid to non-controlling interests | (204.5) | (261) | |
Cash used in financing activities | (1,067.1) | (1,294.6) | |
Decrease in cash and cash equivalents | (1,014.5) | (5,329.7) | |
Cash and cash equivalents - beginning of year | 6,119.6 | 11,685.4 | |
Foreign currency translation | 16.3 | (236.1) | |
Cash and cash equivalents - end of year | 5,121.4 | 6,119.6 | |
Holding company and insurance and reinsurance companies | |||
Investing activities | |||
Proceeds from sale of subsidiaries, net of cash divested | 128.7 | 1,109 | |
Financing activities | |||
Proceeds, net of issuance costs | 393.9 | 743.4 | |
Repayments | (29.6) | (0.3) | |
Net repayments on other revolving credit facilities | (10) | (35) | |
Principal payments on lease liabilities | (64.7) | (68.5) | |
Non-insurance companies | |||
Investing activities | |||
Proceeds from sale of subsidiaries, net of cash divested | 10.5 | ||
Financing activities | |||
Proceeds, net of issuance costs | 228.6 | 47 | |
Repayments | (163.9) | (25.3) | |
Net borrowings (repayments) on revolving credit facilities and short term loans | (185.4) | 304.1 | |
Principal payments on lease liabilities | $ (126.5) | $ (138.9) | |
[1] See note 3 for details of transition to IFRS 17. |
Business Operations
Business Operations | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | |
Basis of Presentation | |
Basis of Presentation | 2. Basis of Presentation The company’s consolidated financial statements for the year ended December 31, 2023 are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). On January 1, 2023 the company adopted IFRS 17 Insurance Contracts 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 and derivative obligations. 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 8, 2024. |
Summary of Material Accounting
Summary of Material Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Material Accounting Policies | |
Summary of Material Accounting Policies | 3. Summary of Material 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 The consolidated financial statements were prepared as of December 31, 2023 and 2022 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 27. 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 other insurance operating expenses, non-insurance expenses or corporate and 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 or in gain on consolidation of insurance subsidiaries 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 other insurance operating expenses or non-insurance 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 investment 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 contracts, 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, third party broker-dealers and industry experts 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 Insurance contracts and reinsurance contract assets held Definition and classification Insurance contracts - Reinsurance contract assets held - Insurance contracts acquired in a transfer or in a business combination - Unit of account and recognition - Insurance contracts are recognized from the earliest of: the beginning of the insurance contract’s coverage period; when payment from the policyholder becomes due or, if there is no contractual due date, when it is received; and when a contract is onerous. Reinsurance contract assets held that provide proportionate reinsurance coverage are recognized from the later of: the beginning of the reinsurance contract’s coverage period; and when underlying insurance contracts are initially recognized. Reinsurance contract assets held that do not provide proportionate reinsurance coverage are recognized at the beginning of the coverage period for the reinsurance contract unless the company recognizes onerous insurance contracts at an earlier date which are reinsured and the related reinsurance contract was entered into prior to the onerous contract being recognized, in which case the reinsurance contract assets held are recognized at the date the onerous groups of underlying insurance contracts are recognized. When insurance and reinsurance contract assets held are recognized, they are added to an existing group of contracts where possible. If the insurance contract cannot be added to an existing group based on the criteria set out above, a new group is formed. Groups of contracts are established on initial recognition and their composition is not revised once all contracts have been added to the group. For insurance contracts acquired with incurred claims and remaining coverage, the company is considered to have issued a new, separate insurance contract with two coverages: coverage for claims events that have yet to occur and coverage for the development of claims events that have already occurred. For acquired contracts in their settlement period which are fully earned, the company is considered to have issued an adverse development cover for the acquired claim liability. These types of insurance contracts are accounted for as if they were entered into at the date of acquisition or transfer. Measurement The company measures its insurance contracts and reinsurance contract assets held, depending on the types of contracts written, using principally two models: Premium Allocation Approach (“PAA”) and to a lesser extent the General Measurement Model (“GMM”), primarily at its life and run - off operations. Short - duration contracts where there is no significant variability in cash flows are primarily measured using the PAA, while long - duration contracts, which often include acquired contracts, are primarily measured using the GMM. The principles for initial and subsequent measurement when applying the GMM or the PAA are applicable to both property and casualty and life insurance contracts. The measurement components are: Contract boundary Fulfillment cash flows within the contract boundary - There are two types of directly attributable costs that are included in the contract boundary: Acquisition costs Other costs that are incurred in fulfilling insurance contracts - Contracts measured under the Premium Allocation Approach The company uses the PAA for measuring all insurance and reinsurance contract assets held which are eligible for the simplified methodology. Insurance and reinsurance contract assets held are eligible when the coverage period of each contract in the group is one year or less or the company reasonably expects that the resulting measurement of the liability for remaining coverage (“LRC”) would not differ materially from that of applying the GMM. When comparing the different possible measurements, the company considers the impact of different release patterns of the LRC to the consolidated statement of earnings, the impact of discounting and financial risks, and whether significant variability in the cash flows exists. Insurance contracts Initial measurement - If there are indications that a group of insurance contracts is onerous, then the company recognizes a loss in insurance service expense in the consolidated statement of earnings and increases the LRC if the current estimates of the fulfillment cash flows that relate to remaining coverage exceed the carrying amount of the LRC. This excess is recognized as a loss component within the LRC, which is reported in insurance contract liabilities on the consolidated balance sheet. Subsequent measurement - The LIC includes the fulfillment cash flows for losses on claims and expenses that have not yet been paid, including claims that have been incurred but not reported (“IBNR”). It reflects both a risk adjustment for non - financial risk and the time value of money as most of the company’s insurance contracts issued and measured under the PAA typically have a settlement period of over one year. In each reporting period, the company remeasures the loss component using the same calculation as on initial recognition and reflects any changes by adjusting the loss component as required until the loss component is reduced to zero, with such adjustments recognized in insurance service expenses. If a loss component did not exist on initial recognition but there are indications that a group of contracts is onerous on subsequent measurement, then the company establishes the loss component using the same methodology as on initial recognition. Reinsurance contract assets held Initial measurement - When there is an onerous group of underlying contracts, a loss - recovery component is created for the group of reinsurance contract assets held which adjusts the ARC, and determines the amounts that are subsequently presented in the consolidated statement of earnings within net reinsurance result as reversals of recoveries of losses and removed from the cost of reinsurance. Subsequent measurement - For contracts measured under the PAA, the asset for incurred claims is measured consistent with the asset for incurred claims under the GMM and reflects a risk adjustment for non - financial risk and the time value of money as most of the company’s reinsurance contract assets held and measured under the PAA typically have a settlement period of over one year. If a loss - recovery component exists, it is adjusted on subsequent measurement to reflect changes in the loss component of the onerous group of underlying contracts to the extent that it impacts reinsured cash flows, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the company expects to recover from the reinsurance contract assets held. Contracts measured under the General Measurement Model Insurance contracts Initial measurement - The risk adjustment for non - financial risk for a group of insurance contracts, determined separately from the other estimates, reflects the compensation required for bearing uncertainty about the amount and timing of the cash flows that arise from non - financial risk. For insurance contracts issued, the portion of the risk adjustment for non - financial risk relating to the LRC is recognized in insurance revenue as the risk is released, while the portion relating to the LIC is recognized in insurance service expenses. The entire change in the risk adjustment is therefore included within the insurance service result in the consolidated statement of earnings. The significant judgments used in determining the risk adjustment are further described in note 4. The CSM on initial recognition of a group of insurance contracts is recognized as the net inflow of the total of fulfillment cash flows and any amount arising from the derecognition of any assets or liabilities previously recognized for cash flows related to the group (including assets for insurance acquisition cash flows). If the fulfillment cash flows are a net outflow, then the group of insurance contracts is onerous and the net outflow is recognized as a loss within insurance service expense in the consolidated statement of earnings and as a loss component within the LRC on the consolidated balance sheet to represent the amount of the net cash outflow, which determines the amounts that are subsequently presented within insurance revenue and insurance service expense. Subsequent measurement The fulfillment cash flows of groups of insurance contracts are measured at the reporting date using current estimates of future cash flows, current discount rates and current estimates of the risk adjustment for non - financial risk. Changes in expected fulfillment cash flows which relate to future services adjust the CSM or are recognized in the consolidated statement of earnings if there is a loss component or no CSM. Changes in fulfillment cash flows which relate to current or past services are recognized in the consolidated statement of earnings. Any changes from the effects of the time value of money or financial risk are recognized within net finance income (expense) from insurance contracts in the consolidated statement of earnings. The CSM of each group of contracts is adjusted to reflect changes in unearned profit, including from new contracts, interest accretion on the CSM, assumption changes related to future service that impact the fulfillment cash flows, effects of currency exchange differences on the CSM, and CSM recognized in revenue for services provided in the reporting period. If a loss component exists, when there are changes to the fulfillment cash flows within the LRC, they are allocated between the loss component and the LRC excluding the loss component on a systematic basis. The systematic basis is determined by the proportion of the loss component relative to the total estimate of the present value of the future cash outflows plus the risk adjustment for nonfinancial risk at the beginning of each year (or on initial recognition if a group of contracts is initially recognized in the year). Decreases in future fulfillment cash flows reduce the remaining loss component and reinstate the CSM after the loss component is reduced to zero, and conversely, increases in future fulfillment cash flows increase the loss component with changes in the loss component recognized within insurance service expense in the consolidated statement of earnings. The company applies the systematic allocation first before increases and decreases to the loss component related to future service in each reporting period. Insurance finance income or expense will be allocated to the loss component as part of the systematic allocation at current rates. Reinsurance contract assets held Initial measurement - The company measures the estimates of the present value of future cash flows using assumptions that are consistent with those used to measure the estimates of the present value of future cash flows for the underlying insurance contracts, with an adjustment for any risk of non - performance by the reinsurer which represents losses from disputes or credit risk. The company does not recognize any insurance acquisition cash flows for reinsurance contract assets held. The risk adjustment for non - financial risk is the amount of risk being transferred by the company to the reinsurer and is calculated by determining these amounts on a gross and net of reinsurance basis, with the difference representing the amounts transferred. The significant judgments used in determining the risk adjustment are further described in note 4. The company adjusts the CSM of the group of reinsurance contracts and recognizes a loss - recovery component on initial recognition of onerous underlying contracts, if the reinsurance contract is entered into before or at the same time as the onerous underlying contracts are recognized. The adjustment to the CSM is determined by multiplying the amount of the loss that relates to the underlying contracts and the expected percentage of claims recovery on the underlying contracts. A loss - recovery component is created for the group of reinsurance contract assets held which adjusts the CSM, and determines the amounts that are subsequently presented in the consolidated statement of earnings within net reinsurance result as reversals of recoveries of losses and removed from the cost of reinsurance. For reinsurance contract assets held acquired in a transfer of contracts or a business combination covering onerous underlying contracts, the adjustment to the CSM is determined using the same calculation, except it is calculated at the date of acquisition. For reinsurance contract assets held acquired in a business combination, the adjustment to the CSM reduces goodwill or increases a gain on a bargain purchase. Subsequent measurement - The CSM of each group of reinsurance contract assets held is adjusted to reflect changes to fulfillment cash flows, including from new contracts, assumption changes, and the amounts recognized in the consolidated statement of earnings from services received in the reporting period. For changes in fulfilment cash flows which result from changes in the fulfillment cash flows of the underlying insurance contracts which do not adjust the CSM, these changes are recognized immediately within the consolidated statement of earnings. If a loss - recovery component exists, it is adjusted on subsequent measurement to reflect changes in the loss component of the onerous group of underlying contracts to the extent that it impacts reinsured cash flows, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the company expects to recover from the reinsurance contract assets held. Insurance contracts acquired in a transfer or in a business combination Initial measurement Subsequent measurement Derecognition and contract modification An insurance contract is derecognized when it is extinguished, i.e. when the specified obligations in the contract expire or are discharged or cancelled. An insurance contract is also derecognized if its terms are modified in a way that would have significantly changed the accounting for the contract had the new terms always existed, in which case a new contract based on the modified terms is recognized. If an insurance contract modification does not result in derecognition, then the changes in cash flows caused by the modification are treated as changes in estimates of fulfillment cash flows. Presentation Any assets or liabilities recognized for cash flows arising before the recognition of the related group of contracts (including any assets for insurance acquisition cash flows) are included in the carrying amount of the related portfolios of contracts (see note 8). Amounts recognized in the consolidated statement of earnings for insurance contracts are disaggregated into (i) an insurance service result, comprised of insurance revenue and insurance service expenses (“net insurance result”), (ii) cost of reinsurance and recoveries of insurance service expense (“net reinsurance result”), and (iii) net finance income or expenses from insurance contracts. Changes in the risk adjustment for non-financial risk are not disaggregated between the insurance service result and net finance income or expenses from insurance contracts. All changes in the risk adjustment for non-financial risk are included in the insurance service result in the consolidated statement of earnings. Consolidated Statement of Earnings Insurance revenue Contracts measured under the PAA For contracts measured under the PAA, the company recognizes insurance revenue based on the expected premium receipts and the passage of time over the coverage period of a group of contracts unless the release of risk differs significantly from the passage of time, such as with certain acquired contracts. In those instances insurance revenue is recognized based on the release of risk. Contracts measured under the GMM Insurance revenue is recognized over the coverage terms of the underlying policies in accordance with the level of protection provided, which is represented by the total of the changes in the LRC for which consideration is expected, comprised of the following: ● a release of the CSM, measured based on services provided as described below; ● changes in the risk adjustment for non - financial risk relating to current services; ● claims and other insurance service expenses incurred in the period, measured at the amounts expected at the beginning of the year; ● insurance revenue would be reduced by systematic allocations to the loss component for changes in risk adjustment and incurred claims and other insurance service expenses; ● amortization of insurance acquisition cash flows; and ● other amoun |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgments | 12 Months Ended |
Dec. 31, 2023 | |
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: measurement of insurance contracts and reinsurance contract assets held in notes 8 and 9 respectively; 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. Insurance contracts and reinsurance contract assets held Fulfillment cash flows - The model to value the fulfillment cash flows may also include certain qualitative adjustments using professional judgment in circumstances where, in the company’s view, the existing inputs, assumptions, or modelling techniques do not capture all relevant risk factors. Where, through model development, the company identifies that the existing models do not capture all relevant risk factors or have other input or data limitations, post-model adjustments are used to address temporary shortcomings. Such adjustments may require significant judgment and may affect the amounts recognized. The most significant judgments within the estimates of fulfillment cash flows are for property and casualty insurance provision for losses and loss adjustment expenses, which include estimates of future cash flows from losses on claims which have not yet been paid and that are included within the LIC. The judgments used to determine the future cash flows from losses on claims include 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, including inflation. These balances are estimated using generally accepted actuarial standards, which are designed to ensure the company establishes an appropriate reserve on the consolidated balance sheet to cover insured losses and related claims expenses for both reported claims and IBNR claims as at each balance sheet date. The assumptions underlying the estimation of provision for losses and loss adjustment expenses are regularly reviewed and updated by the company to reflect recent and emerging trends in experience and changes in the risk profile of the business. The estimation techniques employed by the company in determining provision for losses and loss adjustment expenses and the inherent uncertainties associated with insurance contracts are described in the “Insurance contracts” and “Reinsurance contract assets held” sections of note 3 of these consolidated financial statements, and in the “Underwriting Risk” section of note 22 and in note 8 for the historic development of the company’s insurance contract liabilities (adjustments to LIC). Discount rates - The tables below set out the primary yield curves that were used to discount the cash flows of insurance contracts and reinsurance contract assets held for currencies in which the company’s insurance revenue is principally based. December 31, 2023 December 31, 2022 January 1, 2022 Currencies 1 year 5 years 10 years 15 years 1 year 5 years 10 years 15 years 1 year 5 years 10 years 15 years USD 5.00 % 4.57 % 4.70 % 4.81 % 5.57 % 4.90 % 5.16 % 4.99 % 0.49 % 1.77 % 2.28 % 2.28 % CAD 5.28 % 4.51 % 4.37 % 4.41 % 5.37 % 4.04 % 3.94 % 3.77 % 0.76 % 1.60 % 2.19 % 2.26 % EUR 3.38 % 2.64 % 2.86 % 3.08 % 3.48 % 3.35 % 3.13 % 2.99 % 0.03 % 0.12 % 0.57 % 0.60 % GBP 4.95 % 3.93 % 4.26 % 4.60 % 5.37 % 4.80 % 4.18 % 3.82 % 0.84 % 1.47 % 1.41 % 1.21 % Risk adjustment for non-financial risk structure such as correlation matrices and copula. When determining their risk adjustments two quantile techniques are primarily used: value-at-risk and conditional tail expectation. The company then consolidates using stochastic methods, applying expected correlation structures between subsidiaries to produce a consolidated distribution. The aggregate risk adjustment is compared to the consolidated distribution to determine the confidence interval using a value-at-risk quantile technique. The resulting amount of the calculated risk adjustment corresponds to a consolidated confidence level at December 31, 2023 of 83.8% (December 31, 2022 - 84.0%; and January 1, 2022 - 84.4%). Contract boundaries - 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 judgments and assumptions are required to determine the discounted cash flows, including discount rates, long term growth rates and credit spreads, as applicable, and the effects of economic uncertainty caused by increased inflationary pressures that have resulted in central banks across the world simultaneously raising interest rates to address inflation. 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 judgments and assumptions are required to determine the discounted cash flows, including discount rates, long term growth rates, working capital requirements and the effects of increased inflationary pressures and interest rates, and also (i) for goodwill, net insurance revenue, investment returns, regulatory capital ratios, other revenues and expenses, and (ii) for indefinite-lived intangible assets, net insurance revenue, other 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 21 and subsidiaries are presented in note 27. The company exercised judgment in determining it continued to exercise significant influence over Bangalore Airport and Poseidon (formerly Atlas) during 2023, pursuant to the transactions described in note 6, and also in determining it had obtained significant influence over Stelco during 2022. |
Cash and Investments
Cash and Investments | 12 Months Ended |
Dec. 31, 2023 | |
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 and other invested assets. December 31, December 31, 2023 2022 Restated Holding company Cash and cash equivalents 406.8 552.1 Short term investments 192.9 126.6 Bonds 344.3 243.2 Preferred stocks 12.2 11.1 Common stocks (1) 103.5 75.4 Derivatives (note 7) 524.2 232.8 1,583.9 1,241.2 Assets pledged for derivative obligations: Cash equivalents 2.5 40.6 Short term investments 127.8 64.0 Bonds 67.4 — 197.7 104.6 Holding company cash and investments as presented on the consolidated balance sheet 1,781.6 1,345.8 Derivative obligations (note 7) (32.5) (19.4) 1,749.1 1,326.4 Portfolio investments Cash and cash equivalents (2)(4) 5,157.2 6,203.3 Short term investments (4) 2,008.4 3,164.9 Bonds (4) 36,850.8 28,578.5 Preferred stocks 2,447.4 2,338.0 Common stocks (1)(4) 6,903.4 5,124.3 Investments in associates (note 6) (4) 6,607.6 6,093.1 Derivatives (note 7) 448.3 235.0 Other invested assets (3)(4) 577.0 593.5 61,000.1 52,330.6 Assets pledged for derivative obligations: Bonds 139.3 51.3 Fairfax India cash, portfolio investments and associates: Cash and cash equivalents (2) 197.2 184.8 Short term investments — 49.7 Bonds 39.2 128.2 Common stocks 616.6 237.5 Investments in associates (note 6) 1,429.7 1,342.6 2,282.7 1,942.8 Portfolio investments as presented on the consolidated balance sheet 63,422.1 54,324.7 Derivative obligations (note 7) (412.4) (171.6) 63,009.7 54,153.1 Total cash and investments, net of derivative obligations 64,758.8 55,479.5 (1) Includes aggregate investments in limited partnerships with a carrying value at December 31, 2023 of $2,171.8 (December 31, 2022 – $1,982.5 ). (2) Includes aggregate restricted cash and cash equivalents at December 31, 2023 of $ 642.3 (December 31, 2022 - $861.2 ). See note 25. (3) Comprised primarily of investment property. (4) Included in the table above are the following portfolio investments held by Gulf Insurance to support its insurance operations. Gulf Insurance was consolidated on December 26, 2023 as described in note 21. December 31, December 31, 2023 2022 Gulf Insurance portfolio investments Cash and cash equivalents 459.9 — Short term investments 376.0 — Bonds 1,136.3 — Common stocks 216.2 — Investments in associates (note 6) 151.8 — Other invested assets 32.4 — 2,372.6 — Restricted cash and cash equivalents at December 31, 2023 of $642.3 (December 31, 2022 – $861.2) 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 25 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, 2023 2022 Regulatory deposits 6,701.0 5,724.2 Security for reinsurance and other 1,854.9 1,611.0 8,555.9 7,335.2 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, 2023 bonds containing call, put and both call and put features represented $8,766.5, $85.5 and $464.5 respectively (December 31, 2022 - $5,933.7, $30.9 and $427.7) of the total fair value of bonds. The table below does not reflect the impact of U.S. treasury bond forward contracts to sell long-dated U.S. treasury bonds with a notional amount at December 31, 2023 of $292.8 (December 31, 2022 - $183.7) that economically hedge the company’s exposure to interest rate risk, and interest rate swaps with a notional amount at December 31, 2023 of $1,900.0 (December 31, 2022 - nil) that provide the company the right to receive fixed rates in exchange for the obligation to pay floating rates in relation to a majority of the amount of net purchases of first mortgage loans completed during 2023 as described in note 7. December 31, 2023 December 31, 2022 Amortized Fair Amortized Fair cost (1) value (1) cost (1) value (1) Due in 1 year or less (2) 7,780.5 7,545.6 8,506.5 8,192.5 Due after 1 year through 3 years (2) 9,352.1 9,420.5 16,077.6 15,686.2 Due after 3 years through 5 years 5,738.7 5,861.1 4,205.8 4,116.6 Due after 5 years through 10 years (3) 13,645.1 14,047.3 318.8 291.1 Due after 10 years 577.9 566.5 859.9 714.8 37,094.3 37,441.0 29,968.6 29,001.2 Effective interest rate (4) 5.3 % 3.6 % (1) Includes bonds held by the holding company and Fairfax India. (2) Includes the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 - $2,500.7 ) secured by real estate predominantly in the U.S., Europe and Canada. (3) Includes U.S. treasury bonds at December 31, 2023 of $11,868.0 with maturities between 5 to 7 years. (4) The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the fixed income investment to its gross carrying amount at initial recognition. The effective interest rate does not reflect changes in market interest rates that affect the fair value of the fixed income investment over time. The decrease in the company’s holdings of bonds due in 1 year or less and after 1 year through 3 years was primarily due to net sales of certain short-dated U.S. treasury bonds of $9,013.4 and net sales of corporate and other bonds of $1,339.8 where re-investments of net proceeds from sales and maturities were principally used to purchase U.S. treasury bonds with maturities between 5 to 10 years (including net purchases of U.S. treasury bonds of $11,479.2 with maturities between 5 to 7 years), partially offset by net purchases of short-dated first mortgage loans of $2,261.5 and the consolidation of Gulf Insurance’s bond portfolio that included certain other government and corporate and other bonds of $400.9. The increase in the company’s holdings of bonds due after 3 years through 5 years was primarily due to net purchases of corporate and other bonds of $1,415.8 and the consolidation of Gulf Insurance’s bond portfolio that included certain other government and corporate and other bonds of $452.8. The increase in the company’s holdings of bonds due after 5 years through 10 years was primarily due to deployment of cash and re-investments of net proceeds from sales and maturities of U.S. treasury and other government short term investments and short-dated U.S. treasury bonds into U.S. treasury bonds with maturities between 5 to 10 years of $11,670.1 (including the net purchases of U.S. treasury bonds of $11,479.2 with maturities between 5 to 7 years), net purchases of certain corporate and other bonds and other government bonds of $741.9 and $410.4, and the consolidation of Gulf Insurance’s bond portfolio that included certain other government and corporate and other bonds of $282.6. Refer to note 21 for details of the consolidation of Gulf Insurance. 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, 2023 December 31, 2022 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) 5,763.7 — — 5,763.7 6,980.8 — — 6,980.8 Short term investments: Canadian government and provincials 553.3 — — 553.3 129.9 — — 129.9 U.S. treasury 794.1 — — 794.1 1,574.5 — — 1,574.5 Other government 31.3 339.0 — 370.3 164.3 1,238.5 — 1,402.8 Corporate and other — 611.4 — 611.4 — 298.0 — 298.0 1,378.7 950.4 — 2,329.1 1,868.7 1,536.5 — 3,405.2 Bonds: Canadian government and provincials — 2,715.1 — 2,715.1 — 2,207.6 — 2,207.6 U.S. treasury — 16,273.5 — 16,273.5 — 14,378.8 — 14,378.8 U.S. states and municipalities — 184.5 — 184.5 — 262.7 — 262.7 Other government — 4,903.0 39.3 4,942.3 — 2,700.2 — 2,700.2 Corporate and other (2) — 7,567.9 5,757.7 13,325.6 — 5,986.6 3,465.3 9,451.9 — 31,644.0 5,797.0 37,441.0 — 25,535.9 3,465.3 29,001.2 Preferred stocks: Canadian 15.5 3.5 8.8 27.8 10.4 9.2 13.2 32.8 U.S. — — 343.3 343.3 — — 233.6 233.6 Other (3) 12.0 286.6 1,789.9 2,088.5 13.2 269.2 1,800.3 2,082.7 27.5 290.1 2,142.0 2,459.6 23.6 278.4 2,047.1 2,349.1 Common stocks: Canadian 838.3 216.0 288.2 1,342.5 624.3 192.3 427.8 1,244.4 U.S. 988.0 27.4 1,258.7 2,274.1 691.0 26.1 1,087.2 1,804.3 Other 2,023.4 501.9 1,481.6 4,006.9 1,097.8 254.1 1,036.6 2,388.5 3,849.7 745.3 3,028.5 7,623.5 2,413.1 472.5 2,551.6 5,437.2 Derivatives and other invested assets — 869.5 680.0 1,549.5 — 341.8 719.5 1,061.3 Derivative obligations (note 7) — (257.4) (187.5) (444.9) — (151.8) (39.2) (191.0) Holding company cash and investments and portfolio investments measured at fair value 11,019.6 34,241.9 11,460.0 56,721.5 11,286.2 28,013.3 8,744.3 48,043.8 19.4 % 60.4 % 20.2 % 100.0 % 23.5 % 58.3 % 18.2 % 100.0 % Investments in associates (note 6) (4) 3,592.3 83.2 6,532.3 10,207.8 4,693.8 95.3 4,463.2 9,252.3 (1) Includes restricted cash and cash equivalents of $642.3 at December 31, 2023 (December 31, 2022 – $861.2 ). See note 25. (2) Included in Level 3 are the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 – $2,500.7 ) 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”). 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 Resolute Forest Products which was held for sale at December 31, 2022 and subsequently sold on March 1, 2023 as described in note 6. 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 2023 and 2022 there were no significant transfers of financial instruments between Level 1 and Level 2. During 2023 the company’s holdings in Poseidon Corp. (formerly Atlas) common shares were transferred from investments in associates classified as Level 1 to Level 3 due to the privatization transaction as described in note 6. There were no other 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. 2023 Private Private Derivatives placement company Limited Private and other debt preferred partnerships equity Common invested securities shares and other (1) funds (1) shares assets Total Balance - January 1 3,465.3 2,047.1 1,824.2 97.5 629.9 680.3 8,744.3 Net realized and unrealized gains (losses) included in the consolidated statement of earnings 63.7 (2.4) (69.7) (7.6) 12.3 (135.4) (139.1) Purchases (2)(3) 3,451.7 134.5 384.2 — 289.7 137.7 4,397.8 Acquisitions of insurance subsidiaries (note 21) 109.6 — — 0.9 34.9 32.7 178.1 Sales and distributions (2) (1,262.5) (2.9) (146.1) (19.7) (10.2) (214.2) (1,655.6) Transfer out of category — (36.7) — — (3.0) — (39.7) Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) 12.5 2.4 5.6 1.7 3.9 (8.6) 17.5 Deconsolidation of non-insurance subsidiary (43.3) — — — — — (43.3) Balance - December 31 5,797.0 2,142.0 1,998.2 72.8 957.5 492.5 11,460.0 2022 Private Private Derivatives placement company Limited Private and other debt preferred partnerships equity Common invested securities shares and other (1) funds (1) shares assets Total Balance - January 1 2,795.8 2,101.8 1,789.1 107.7 507.0 1,041.8 8,343.2 Net realized and unrealized gains (losses) included in the consolidated statement of earnings (378.8) (247.4) 143.0 (1.4) 61.9 (95.8) (518.5) Purchases (2) 1,456.0 286.4 113.1 — 102.7 67.4 2,025.6 Sales and distributions (2) (382.4) (88.1) (207.0) (4.2) (14.3) (303.8) (999.8) Transfer out of category — — — — (2.7) — (2.7) Unrealized foreign currency translation losses on foreign subsidiaries included in other comprehensive income (loss) (25.3) (5.6) (14.0) (4.6) (24.7) (29.3) (103.5) Balance - December 31 3,465.3 2,047.1 1,824.2 97.5 629.9 680.3 8,744.3 (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) Private placement debt securities include net purchases of first mortgage loans of $2,261.5 (2022 – $870.2 ). (3) Private placement debt securities include the Amynta Group promissory note as described in note 21. The table below presents the valuation techniques and unobservable inputs used to estimate fair values for the company’s significant Level 3 financial assets at December 31, 2023: Effect on fair value if input Carrying Input range used value is Asset class value Valuation technique Significant unobservable input Low High increased (a) Bonds (b) Private placement debt securities (1) 903.6 Discounted cash flow Credit spread 1.8 % 9.9 % Decrease Mortgage loans (2) 4,685.4 Market approach Recent transaction price N/A N/A Increase Discounted cash flow Credit spread 2.9 % 10.5 % Decrease Other 208.0 Various Various N/A N/A N/A 5,797.0 Preferred stocks (c) Private company preferred shares (3) 1,787.8 Discounted cash flow Discount rate 12.0 % 12.0 % Decrease Long term growth rate 6.3 % 6.3 % Increase Private placement preferred shares 290.2 Discounted cash flow Credit spread 5.5 % 6.1 % Decrease Other 64.0 Various Various N/A N/A N/A 2,142.0 Common stocks (d) Limited partnerships and other (4) 1,998.2 Net asset value Net asset value N/A N/A Increase Private equity funds (4) 402.0 Net asset value Net asset value N/A N/A Increase Other 628.3 Various Various N/A N/A N/A 3,028.5 Derivatives and other invested assets (e) Investment property (5) 302.7 Income capitalization Terminal capitalization rate 6.3 % 9.0 % Decrease Discount rate 8.0 % 10.3 % Decrease Market rent growth rate 2.5 % 3.0 % Increase 83.0 Sales comparison Price per acre (Cdn$ thousands) 43.5 160.0 Increase Other 106.8 Various Various N/A N/A N/A 492.5 Total 11,460.0 (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 holding company cash and investments or 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, 2023 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 10 investments, the largest being $148.9 (software and services) (December 31, 2022 - 10 investments, the largest being $285.0 (software and services)). By increasing (decreasing) the credit spreads applied at December 31, 2023 by 100 basis points, the fair value of this asset class would collectively decrease by $22.2 (increase by $21.4 ). (2) At December 31, 2023 these mortgage loans consisted of 102 investments, the largest being $235.0 (December 31, 2022 – 50 investments, the largest being $250.0 ). By increasing (decreasing) the credit spreads applied at December 31, 2023 by 200 basis points, the fair value of this asset class would collectively decrease by $112.5 (increase by $60.1 ). (3) These private company preferred shares relate to the company’s investment in Digit compulsory convertible preferred shares which were valued using an industry accepted discounted cash flow model that incorporated an unobservable discount rate and long term growth rate. By increasing (decreasing) the discount rate applied at December 31, 2023 by 1.0% , the fair value of the preferred shares would decrease by $319.1 (increase by $457.5 ); by increasing (decreasing) the long term growth rate applied at December 31, 2023 by 0.5% , the fair value of the preferred shares would increase by $122.0 (decrease by $119.5 ). The company also holds a 49.0% equity accounted interest in Digit as described in note 6. (4) 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, 2023 limited partnerships and other consisted of 42 investments, the three largest being $315.0 (industrials), $242.5 (primarily industrials and consumer discretionary) and $235.3 (oil and gas extraction) (December 31, 2022 - 45 investments, the three largest being $374.8 (oil and gas extraction), $189.5 (industrials) and $176.1 (industrials)). By increasing (decreasing) net asset values at December 31, 2023 by 10% , the fair value of limited partnerships and other would collectively increase (decrease) by $199.8 . (5) These investment property were primarily valued by third party appraisers using an industry accepted income capitalization approach that incorporated unobservable capitalization rates, discount rates and market rent growth rates. Certain investment property were valued using an industry accepted direct sales comparison approach that incorporated recent non-public 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 of associates 2023 2022 Restated Interest income: Cash and short term investments 279.4 101.5 Bonds 1,624.9 753.1 Derivatives and other invested assets (63.2) 18.9 1,841.1 873.5 Dividends: Preferred stocks 44.7 39.7 Common stocks 89.1 100.7 133.8 140.4 Investment expenses (78.7) (52.1) Interest and dividends 1,896.2 961.8 Share of profit of associates (note 6) 1,022.2 1,022.4 Net gains (losses) on investments 2023 2022 Restated 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) gains (losses) investments Common stocks (1) 43.9 420.5 464.4 364.5 (607.2) (242.7) Bonds and preferred stocks - convertible (0.2) 77.3 77.1 11.6 (253.0) (241.4) Other equity derivatives (2)(3)(4) 144.0 213.2 357.2 331.7 (140.9) 190.8 Disposition of non-insurance associates (5) 322.0 — 322.0 45.1 — 45.1 Other (3.1) — (3.1) 4.4 — 4.4 Long equity exposures and financial effects 506.6 711.0 1,217.6 757.3 (1,001.1) (243.8) Bonds (587.6) 1,141.9 554.3 (183.6) (1,064.9) (1,248.5) U.S. treasury bond forward contracts 172.3 (12.5) 159.8 163.0 (0.6) 162.4 Total bonds (415.3) 1,129.4 714.1 (20.6) (1,065.5) (1,086.1) Foreign currency (6) (222.5) 103.7 (118.8) 266.5 (410.1) (143.6) Other 1.6 135.0 136.6 (85.4) (14.3) (99.7) Net gains (losses) on investments (129.6) 2,079.1 1,949.5 917.8 (2,491.0) (1,573.2) (1) On August 31, 2022 Stelco repurchased 5.1 million of its outstanding common shares under its substantial issuer bid which resulted in the loss of a certain right held by another investor and the company’s ownership interest in Stelco increasing to 20.5% . Accordingly, the company commenced applying the equity method of accounting to its interest in Stelco at that date, resulting in unrealized gains of $151.9 being reclassified to realized with a net impact of nil in the consolidated statement of earnings, as described in note 6. (2) Other equity derivatives include long equity total return swaps, equity warrants and options and the Asset Value Loan Notes (“AVLNs”) entered with RiverStone Barbados as described in note 7. Net change in unrealized gains (losses) in 2023 included $320.6 in unrealized gains (2022 - $100.6 ) on the company’s investment in long equity total return swaps on Fairfax subordinate voting shares, with the fair value of $516.9 at December 31, 2023 (December 31, 2022 - $196.3 ) recorded in holding company cash and investments, as described in note 7. (3) Amounts recorded in net realized gains (losses) include net gains (losses) on total return swaps where the counterparties are generally 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. Net realized gains (losses) in 2023 included $304.2 in realized gains (2022 - $154.8 ) on the company’s investment in long equity total return swaps on Fairfax subordinate voting shares, which represented cash-settlement amounts recorded in holding company cash and investments. (4) On April 6, 2022 the company acquired 25.0 million Atlas common shares by exercising its Atlas equity warrants with a strike price of $8.05 per share for aggregate cash consideration of $201.3 and recognized a net loss on investment of $37.2 (realized gains of $58.6 , of which $95.8 was recorded as unrealized gains in prior years) on derecognition of the equity warrants as described in note 6. (5) During 2023 Fairfax India sold a 7.1% equity interest of IIFL Finance for gross proceeds of $177.3 ( 14.7 billion Indian rupees), which decreased its equity interest to 15.1% and resulted in realized gains of $88.6 . Accordingly, the company discontinued recording its residual investment in IIFL Finance under the equity method of accounting, commenced classifying it at FVTPL and recorded a realized remeasurement gain of $204.2 in the consolidated statement of earnings, as described in note 6. (6) Foreign currency net losses were primarily related to underwriting activities during 2023, partially offset by foreign currency net gains on investing activities. Foreign currency net gains on investment activities during 2023 primarily related to the strengthening of the Brazilian real, Canadian dollar and British pound relative to the U.S. dollar on Brazilian real, Canadian dollar and British pound denominated investments. Foreign currency net losses on investing activities during 2022 primarily related to the strengthening of the U.S. dollar relative to the company’s investments denominated in the Indian rupee, Canadian dollar, Egyptian pound, Sri Lankan rupee and British pound, partially offset by foreign currency net gains on U.S. dollar denominated investments held by subsidiaries with a Canadian dollar or British pound functional currency as the U.S. dollar strengthened relative to those currencies. |
Investments in Associates
Investments in Associates | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Associates | |
Investments in Associates | 6. Investments in Associates The company’s investments in associates and joint ventures were comprised as follows: December 31, 2023 Year ended December 31, Carrying value 2023 Associates Share of Ownership Fair and joint Fairfax India profit percentage (a) value (b) ventures associates (c) Total (loss) Insurance and reinsurance: Go Digit Infoworks Services Private Limited (“Digit”) 49.0 % 477.2 146.6 — 146.6 43.2 Gulf Insurance Group K.S.C.P. (“Gulf Insurance”) (1) — — — — — 42.6 Other — 234.0 222.1 — 222.1 (5.1) 711.2 368.7 — 368.7 80.7 Non-insurance: India Bangalore International Airport Limited (“Bangalore Airport”) (9) 64.0 % 1,600.0 — 783.0 783.0 16.0 CSB Bank Limited (“CSB Bank”) 49.7 % 409.3 — 223.0 223.0 35.4 Quess Corp Limited (“Quess”) (2) 34.7 % 323.6 433.0 (d) — 433.0 (47.0) Sanmar Chemicals Group (“Sanmar”) 42.9 % 302.9 — 156.1 156.1 0.6 IIFL Securities Limited (“IIFL Securities”) 30.9 % 165.7 13.6 103.8 117.4 12.4 Seven Islands Shipping Limited (“Seven Islands”) 48.5 % 142.8 — 133.6 133.6 42.6 IIFL Finance Limited (“IIFL Finance”) (10) — — — — — 45.1 Other — 69.6 10.8 30.2 41.0 1.8 3,013.9 457.4 1,429.7 1,887.1 106.9 Real estate KWF Real Estate Ventures Limited Partnerships (“KWF LPs”) — 104.0 104.0 (d) — 104.0 6.4 Other — 73.3 73.3 — 73.3 (13.8) 177.3 177.3 — 177.3 (7.4) Other Eurobank Ergasias Services & Holdings S.A (“Eurobank”) (3) 34.1 % 2,251.6 2,099.5 — 2,099.5 437.7 Poseidon Corp. (“Poseidon”, formerly Atlas) (4) 43.4 % 2,046.3 1,706.4 — 1,706.4 149.6 Stelco Holdings Inc. (“Stelco”) 23.6 % 491.6 291.6 — 291.6 23.7 EXCO Resources Inc. (“EXCO”) 48.3 % 435.2 417.6 — 417.6 129.1 Peak Achievement Athletics (“Peak Achievement”) 42.6 % 226.1 129.4 (d) — 129.4 23.3 Helios Fairfax Partners Corporation (“HFP”) 36.3 % 91.5 197.6 — 197.6 9.2 Partnerships, trusts and other (5) — 763.1 762.1 — 762.1 69.4 6,305.4 5,604.2 — 5,604.2 842.0 9,496.6 6,238.9 1,429.7 7,668.6 941.5 Investments in associates 10,207.8 6,607.6 1,429.7 8,037.3 1,022.2 As presented on the consolidated balance sheet: Investments in associates 7,553.2 6,607.6 Fairfax India investments in associates 2,654.6 1,429.7 10,207.8 8,037.3 Year ended December 31, 2022 December 31, Carrying value 2022 Associates Share of Ownership Fair and joint Fairfax India profit percentage (a) value (b) ventures associates (c) Total (loss) Restated Restated Restated Insurance and reinsurance: Go Digit Infoworks Services Private Limited (“Digit”) 49.0 % 479.3 104.4 — 104.4 (11.0) Gulf Insurance Group K.S.C.P. (“Gulf Insurance”) 43.7 % 415.8 405.2 — 405.2 60.7 Other — 173.9 139.5 — 139.5 (11.6) 1,069.0 649.1 — 649.1 38.1 Non-insurance: India Bangalore International Airport Limited (“Bangalore Airport”) 54.0 % 1,233.7 — 521.1 521.1 (5.7) CSB Bank Limited (“CSB Bank”) 49.7 % 223.3 — 194.5 194.5 40.8 Quess Corp Limited (“Quess”) 30.9 % 228.3 459.6 (d) — 459.6 6.8 IIFL Finance Limited (“IIFL Finance”) 22.3 % 493.3 — 242.8 242.8 36.5 Sanmar Chemicals Group (“Sanmar”) 42.9 % 337.8 — 159.8 159.8 36.4 IIFL Securities Limited (“IIFL Securities”) 37.1 % 87.9 35.3 97.9 133.2 14.6 Seven Islands Shipping Limited (“Seven Islands”) 48.5 % 96.9 — 97.9 97.9 9.8 Other — 38.0 10.8 28.6 39.4 3.3 2,739.2 505.7 1,342.6 1,848.3 142.5 Real estate KWF Real Estate Ventures Limited Partnerships (“KWF LPs”) — 101.1 101.1 (d) — 101.1 16.5 Other (6) — 61.3 63.3 — 63.3 2.8 162.4 164.4 — 164.4 19.3 Other Eurobank Ergasias Services & Holdings S.A (“Eurobank”) 32.2 % 1,344.5 1,507.6 — 1,507.6 263.0 Poseidon Corp. (“Poseidon”, formerly Atlas) (7) 43.2 % 1,864.7 1,506.3 — 1,506.3 258.2 Resolute Forest Products Inc. (“Resolute”) (5) 32.2 % 508.5 508.5 — 508.5 159.0 Stelco Holdings Inc. (“Stelco”) (8) 23.6 % 423.3 304.8 — 304.8 — EXCO Resources Inc. (“EXCO”) 44.4 % 544.8 288.4 — 288.4 81.9 Peak Achievement Athletics (“Peak Achievement”) 42.6 % 195.3 124.4 (d) — 124.4 7.7 Helios Fairfax Partners Corporation (“HFP”) 34.4 % 104.1 183.2 — 183.2 (23.9) Partnerships, trusts and other 296.5 350.7 — 350.7 76.6 5,281.7 4,773.9 — 4,773.9 822.5 8,183.3 5,444.0 1,342.6 6,786.6 984.3 Investments in associates 9,252.3 6,093.1 1,342.6 7,435.7 1,022.4 As presented on the consolidated balance sheet: Investments in associates 6,772.9 6,093.1 Fairfax India investments in associates 2,479.4 1,342.6 9,252.3 7,435.7 (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 December 26, 2023 the company increased its equity interest in Gulf Insurance from 43.7% to a controlling interest of 90.0% and commenced consolidating Gulf Insurance as described in note 21. Non-insurance associates and joint ventures (2) Share of loss of Quess of $47.0 (2022 - share of profit of $6.8 ) included a non-cash impairment charge of $52.8 (2022 - nil ). Subsequent to December 31, 2023 Quess announced a plan to demerge into three separate entities. Shareholders will receive one share of each new entity for each share held of Quess. Completion of the demerger is expected to be in 2025, subject to regulatory approvals. (3) On December 11, 2023 the company increased its interest in Eurobank to 34.1% for cash consideration of $82.0 through the purchase of Eurobank common shares held through the company’s investment in AVLNs entered with RiverStone Barbados (as described in note 7). (4) On March 28, 2023 a consortium composed of the company, the Washington Family, David Sokol, Chairman of the Board of Directors of Atlas, and Ocean Network Express Pte. Ltd., a global container, transportation and shipping company (collectively, the “Consortium”) acquired all of the outstanding common shares of Atlas, other than those shares owned by the Consortium and by Prem Watsa, Fairfax’s CEO, at a cash purchase price of $15.50 , plus payment of all ordinary course quarterly dividends up until closing of the transaction. Pursuant to the transaction, the company transferred its shares in Atlas, inclusive of the company’s interest through its holdings in Atlas equity warrants that were exercised on January 12, 2023 for cash consideration of $78.7 , into an entity formed by the Consortium that was subsequently renamed Poseidon Corp. The company did not purchase any additional interest not already owned by the Consortium upon closing of the transaction. The other members of the Consortium fully funded the cash component of the transaction, and the company continued its ownership in Atlas as part of the Consortium. The company continues to apply the equity method of accounting to its interest in Atlas through its interest in Poseidon. Subsequent to the closing of the transaction, during the second quarter of 2023 Mr. Watsa, to avoid potential future conflicts of interest, sold all of his 678,021 shares of Poseidon to Fairfax. Mr. Watsa owned 678,021 shares of Atlas representing less than 0.3% ownership as an investment that were replaced with shares of Poseidon on a one-for-one basis as a result of the tender offer as part of the consortium described above. Mr. Watsa sold the Poseidon shares to Fairfax at $15.50 per share, the same price he could have obtained under the tender offer and the price at which Fairfax’s shares of Atlas were valued by the consortium which made the tender offer. (5) On March 1, 2023 Domtar Corporation acquired all outstanding common shares of Resolute, which was held for sale as at December 31, 2022, for a combination of cash consideration of $20.50 and a Contingent Value Right (“CVR”) per Resolute common share. The CVR provides holders with the right to a share of any future softwood lumber duty deposit refunds and was valued at $1.42 per share based on the market price of Resolute immediately prior to close of the transaction. The company received total consideration of $665.6 , inclusive of cash consideration and the fair value of the CVR at close of the transaction, in exchange for its Resolute common shares, which included shares with a fair value of $120.7 purchased on January 26, 2023 through the company’s investment in AVLNs entered with RiverStone Barbados (as described in note 7), and recorded a realized gain of $44.2 in the consolidated statement of earnings. (6) On July 5, 2022 the company increased its interest in Grivalia Hospitality S.A. (“Grivalia Hospitality”) to 78.4% from 33.5% and commenced consolidating Grivalia Hospitality as described in note 21. (7) On April 6, 2022 the company acquired 25.0 million Atlas common shares by exercising its equity warrants in Atlas with a strike price of $8.05 per share for aggregate cash consideration of $201.3 . On derecognition of the equity warrants, the company recorded a net loss on investment of $37.2 (realized gains of $58.6 , of which $95.8 was recorded as unrealized gains in prior years) and recorded the fair value of these shares of $335.3 as an addition to its equity accounted investment in Atlas. On October 4, 2022 the company increased its interest in Atlas to 43.2% through the purchase of Atlas common shares held through the company’s investment in AVLNs entered with RiverStone Barbados (as described in note 7) for cash consideration of $84.8. (8) On August 31, 2022 Stelco repurchased 5.1 million of its outstanding common shares under its substantial issuer bid which resulted in the loss of a certain right held by another investor and the company’s ownership interest in Stelco increasing to 20.5% . Accordingly, the company commenced applying the equity method of accounting to its interest in Stelco which had a fair value of $352.2 (Cdn $461.3 ) on that date. Stelco is a publicly listed independent steelmaker that produces flat-rolled, coated, and cold-rolled steel products for the construction, automotive, and energy industries in North America. Fairfax India (9) On May 9, 2023 Fairfax India entered into an agreement to acquire an additional 3.0% equity interest in Bangalore Airport from Siemens Project Ventures GmbH (“Siemens”). The transaction closed on June 21, 2023 whereby Fairfax India paid cash consideration of $75.0 to increase its equity interest to 57.0% . On December 12, 2023 Fairfax India acquired an additional 7.0% equity interest in Bangalore Airport from Siemens for additional cash consideration of $175.0 , which further increased its equity interest in Bangalore Airport to 64.0% . At December 31, 2023 the company continued to apply the equity method of accounting due to extensive Indian government regulation of, and participation in, Bangalore Airport’s relevant activities. (10) During 2023 Fairfax India sold a 7.1% equity interest of IIFL Finance for gross proceeds of $177.3 ( 14.7 billion Indian rupees), which decreased its equity interest to 15.1% and resulted in realized gains of $88.6 . Accordingly, the company concluded it no longer exercised significant influence over IIFL Finance, discontinued recording its residual investment in IIFL Finance under the equity method of accounting, commenced classifying it at FVTPL, and recorded a realized remeasurement gain of $204.2 in the consolidated statement of earnings. Annual changes in carrying value Changes in the carrying value of investments in associates for the years ended December 31 were as follows: 2023 Fairfax India Associates Joint ventures associates Total Balance - January 1 5,312.2 780.9 1,342.6 7,435.7 Share of pre-tax comprehensive income (loss): Share of profit 936.0 12.9 151.1 1,100.0 Impairments (1) (19.8) (58.0) — (77.8) Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans 39.2 1.1 (3.4) 36.9 Share of gains (losses) on defined benefit plans 0.9 (0.8) (5.7) (5.6) 956.3 (44.8) 142.0 1,053.5 Dividends and distributions received (208.7) (24.8) (13.2) (246.7) Purchases and acquisitions (2) 884.8 42.5 250.0 1,177.3 Divestitures and other net changes in capitalization (3) (709.9) (14.6) (89.7) (814.2) Reclassifications (4) (379.3) — (193.0) (572.3) Foreign exchange effect and other 10.4 2.6 (9.0) 4.0 Balance - December 31 5,865.8 741.8 1,429.7 8,037.3 2022 Restated Fairfax India Associates Joint ventures associates Total Balance - January 1 3,852.8 896.4 1,348.9 6,098.1 Share of pre-tax comprehensive income (loss): Share of profit 864.3 26.1 132.0 1,022.4 Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans (111.5) (53.0) 14.4 (150.1) Share of gains (losses) on defined benefit plans 74.4 0.6 (5.4) 69.6 827.2 (26.3) 141.0 941.9 Dividends and distributions received (142.2) (33.7) (7.0) (182.9) Purchases and acquisitions 429.1 88.6 10.1 527.8 Divestitures and other net changes in capitalization 9.9 (11.9) 34.4 32.4 Reclassifications (4) 352.2 (114.3) (40.4) 197.5 Foreign exchange effect and other (16.8) (17.9) (144.4) (179.1) Balance - December 31 5,312.2 780.9 1,342.6 7,435.7 (1) Impairments recorded on associates and joint ventures are included in share of profit of associates in the consolidated statement of earnings. Impairments of $77.8 recorded during 2023 included non-cash impairment charges principally related to Quess. (2) Includes the consolidation of Gulf Insurance’s equity accounted investments with a fair value of $151.8 . (3) Primarily reflects the sale of Resolute in 2023. (4) Primarily reflects the consolidation of Gulf Insurance (see note 21) and the reclassification of IIFL Finance to common stock at FVTPL in 2023, and the consolidation of Grivalia Hospitality (see note 21) and the commencement of the equity method of accounting for Stelco in 2022 . |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
Derivatives | |
Derivatives | 7. Derivatives The following table summarizes the company’s derivative financial instruments: December 31, 2023 December 31, 2022 Notional Fair value Notional Fair value amount Cost Assets Liabilities amount Cost Assets Liabilities Equity derivative contracts (1) 4,101.7 149.1 595.7 32.5 1,946.5 68.0 258.1 19.4 RiverStone Barbados AVLNs — — — — 517.5 — 30.7 — Foreign currency derivative contracts (2) — — 65.0 158.8 — — 49.0 106.8 Other derivative contracts — 254.2 311.8 253.6 — 289.8 130.0 64.8 Total 972.5 444.9 467.8 191.0 (1) Includes the company’s investment in Atlas warrants with a fair value at December 31, 2022 of $13.5 , which were exercised on January 12, 2023 as described in note 6. (2) Includes AGT’s foreign currency forward and swap liabilities with a fair value at December 31, 2023 of $60.8 (December 31, 2022 - $56.2 ). 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 derivative contracts Long equity total return swaps During 2023 the company entered into $200.2 notional amount of long equity total return swaps for investment purposes. At December 31, 2023 the company held long equity total return swaps on individual equities for investment purposes with an original notional amount of $1,112.8 (December 31, 2022 - $1,012.6). These derivative contracts 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 at December 31, 2023 and 2022, where the counterparties are Canadian banks. During 2023 the long equity total return swaps on Fairfax subordinate voting shares produced net gains of $624.8 (2022 - $255.4). Long equity total return swaps provide a return which is directly correlated to changes in the fair values of the underlying individual equities. RiverStone Barbados Asset Value Loan Notes Pursuant to the sale of RiverStone Barbados in 2021, the company, through financial instruments referred to as AVLNs, had guaranteed the then value of certain securities held by the purchaser 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 2023. During 2023 all securities that were required to be purchased by or sold at the direction of Hamblin Watsa prior to the end of 2023 pursuant to the terms of the amended agreement were purchased or sold. The inception-to-date net gain on closure of the AVLNs was $65.8, comprised of net realized gains on investments of $95.6 recognized in the consolidated statement of earnings, partially offset by charges to retained earnings of $29.8, recognized in net changes in capitalization in the consolidated statement of changes in equity, related to purchases of shares of the company’s subsidiaries. Foreign currency derivative 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. Other derivative contracts U.S. treasury bond forward contracts During 2023 the company entered into forward contracts to buy U.S. treasury bonds with a notional amount of $8,000.0 where the contracts held provided an investment opportunity to buy U.S. treasury bonds as other fixed income investments matured. At December 31, 2023 all contracts were closed primarily through the physical delivery of the underlying U.S. treasury bonds with a principal value of $6,890.0 and maturities throughout 2030. 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, 2023 of $292.8 (December 31, 2022 - $183.7). These contracts have an average term to maturity of less than six months, and may be renewed at market rates. During 2023 the company recorded net gains on investments of $159.8 (2022 - $162.4) on its U.S. treasury bond forward contracts. Interest rate swap contracts During 2023 the company entered into interest rate swap contracts with a notional amount at December 31, 2023 of $1,900.0 (December 31, 2022 - nil) and an average term to maturity of two years. The contracts provide the company the right to receive fixed rates in exchange for the obligation to pay floating rates in relation to a majority of the amount of net purchases of first mortgage loans of $2,261.5 completed during 2023. Counterparty collateral Collateral deposits on derivative contracts for the benefit of the company 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, 2023 consisted of cash of $42.2 and government securities of $492.3 (December 31, 2022 - $9.5 and $274.9). 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, 2023. The company’s exposure to counterparty risk and the management thereof are discussed in note 22. Collateral deposits on derivative contracts for the benefit of the derivative counterparties At December 31, 2023 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 $337.0 (December 31, 2022 - $155.9), comprised of collateral of $270.3 (December 31, 2022 - $124.8) required to be deposited to enter into such derivative contracts (principally related to total return swaps), and collateral of $66.7 (December 31, 2022 - $31.1) securing amounts owed to counterparties in respect of fair value changes since the most recent reset date. Hedge of net investment in Canadian subsidiaries At December 31, 2023 the company had designated the carrying value of Cdn$2,788.6 principal amount of its Canadian dollar denominated unsecured senior notes with a fair value of $2,061.1 (December 31, 2022 - principal amount of Cdn$2,800.0 with a fair value of $1,926.8) as a hedge of a portion of its net investment in subsidiaries with a Canadian dollar functional currency. During 2023 the company recognized pre-tax losses of $56.6 (2022 - pre-tax gains of $149.5) related to exchange rate movements on the Canadian dollar denominated unsecured senior notes in gains (losses) on hedge of net investment in Canadian subsidiaries in the consolidated statement of comprehensive income. Subsequent to December 31, 2023, on February 14, 2024 the company announced that it will use the remainder of the net proceeds from the December 2023 offering, described in note 15, to redeem its Cdn$348.6 principal amount of 4.95% unsecured senior notes due March 3, 2025, which will result in a reduction of the hedge in the first quarter of 2024. Hedge of net investment in European operations At December 31, 2023 the company had designated the carrying value of €750.0 principal amount of its euro denominated unsecured senior notes with a fair value of $791.9 (December 31, 2022 - principal amount of €750.0 with a fair value of $698.3) as a hedge of its net investment in European operations with a euro functional currency. During 2023 the company recognized pre-tax losses of $27.8 (2022 - pre-tax gains of $51.8) related to exchange rate movements on the euro denominated unsecured senior notes in gains (losses) 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, 2023 | |
Insurance Contract Liabilities | |
Insurance Contract Liabilities | 8. Insurance Contract Liabilities December 31, 2023 December 31, 2022 PAA GMM (1) Total PAA GMM (1) Total Insurance contracts issued 41,863.4 4,471.4 46,334.8 36,549.5 3,504.9 40,054.4 Assets for insurance acquisition cash flows (160.0) (3.4) (163.4) (147.8) — (147.8) Insurance contract liabilities 41,703.4 4,468.0 46,171.4 36,401.7 3,504.9 39,906.6 (1) Includes insurance contracts issued measured under the GMM within Global Insurers and Reinsurers of $396.9 (2022 - nil ), International Insurers and Reinsurers of $356.3 (2022 - $375.6 ) and Life insurance and Run-off of $3,718.2 (2022 - $3,129.3 ). Insurance contracts issued under the GMM include a LRC of $ 3,122.6 (2022 - $2,515.9 ) and a LIC of $1,348.8 (2022 - $989.0 ). Insurance contracts issued, measured under the PAA by reporting segment and excluding intercompany balances, were as follows: Property and Casualty Insurance and Reinsurance Life North American Global Insurers International Insurers insurance Insurers and Reinsurers and Reinsurers Total and Run-off Consolidated LRC LIC Total LRC LIC Total LRC LIC Total 2023 January 1 1,065.4 7,972.4 9,037.8 449.2 24,283.9 24,733.1 386.3 2,332.6 2,718.9 36,489.8 59.7 36,549.5 December 31 1,140.8 9,005.2 10,146.0 1,071.0 25,937.2 27,008.2 1,399.0 3,239.5 4,638.5 41,792.7 70.7 41,863.4 2022 January 1 923.1 7,926.2 8,849.3 738.9 22,751.9 23,490.8 430.0 2,645.5 3,075.5 35,415.6 52.4 35,468.0 December 31 1,065.4 7,972.4 9,037.8 449.2 24,283.9 24,733.1 386.3 2,332.6 2,718.9 36,489.8 59.7 36,549.5 Movements in insurance contracts issued An analysis of the liability for remaining coverage and the liability for incurred claims for insurance contracts issued by the property and casualty insurance and reinsurance reporting segments measured under the PAA for the year ended December 31 were as follows: Year ended December 31, 2023 Property and Casualty Insurance and Reinsurance Liability for incurred claims Risk adjustment for Liability for Estimates of non- remaining present value of financial coverage (1) future cash flows risk Total Balance - January 1 1,900.9 32,108.9 2,480.0 36,489.8 Changes in the consolidated statement of comprehensive income: Insurance revenue (26,095.0) — — (26,095.0) Incurred claims and other insurance service expenses (2) (16.2) 16,480.6 971.2 17,435.6 Amortization of acquisition costs and other (3) 4,654.1 — — 4,654.1 Prior year reserve development and release of risk adjustment on prior year claims (4) — (73.3) (794.7) (868.0) Insurance service expenses 4,637.9 16,407.3 176.5 21,221.7 Insurance service result (21,457.1) 16,407.3 176.5 (4,873.3) Net finance expense from insurance contracts (5) 4.2 1,965.7 — 1,969.9 Foreign exchange effects and other 23.8 90.1 (28.1) 85.8 Total changes in the consolidated statement of comprehensive income (21,429.1) 18,463.1 148.4 (2,817.6) Cash flows: Premiums received (6) 27,191.2 — — 27,191.2 Claims and other insurance service expenses paid, including investment components (7) — (15,537.9) — (15,537.9) Insurance acquisition cash flows (8) (5,196.6) — — (5,196.6) Changes in funds withheld 142.3 (21.8) — 120.5 22,136.9 (15,559.7) — 6,577.2 Investment components and other (170.4) 147.1 — (23.3) Contracts recognized on acquisition of subsidiary (9) 1,172.5 371.2 22.9 1,566.6 Balance - December 31 3,610.8 35,530.6 2,651.3 41,792.7 (1) Includes loss components of $139.0 at January 1, 2023 and $64.7 at December 31, 2023. (2) Incurred claims and other insurance service expenses included within estimates of the present value of future cash flows comprised Global Insurers and Reinsurers ( $9,596.8 ), North American Insurers ( $5,104.1 ) and International Insurers and Reinsurers ( $1,779.7 ) reporting segments. Incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ( $677.1 ), North American Insurers ( $191.1 ) and International Insurers and Reinsurers ( $103.0 ) reporting segments. (3) Amortization of acquisition costs and other comprised Global Insurers and Reinsurers ( $2,298.1 ), North American Insurers ( $1,790.7 ) and International Insurers and Reinsurers ( $565.3 ) reporting segments. (4) Reflects the release of risk adjustment for non-financial risk as claims are paid, primarily at the Global Insurers and Reinsurers ($589.9) and the North American Insurers ($155.9) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include favourable prior year reserve development at the Global Insurers and Reinsurers reporting segment ( $290.7 ), partially offset by adverse prior year reserve development at the International Insurers and Reinsurers ( $167.2 ) and North American Insurers ( $50.2 ) reporting segments. (5) Net finance expense from insurance contracts included within the estimates of present value of future cash flows comprised Global Insurers and Reinsurers ( $1,401.4 ), North American Insurers ( $407.6 ) and International Insurers and Reinsurers ( $156.7 ) reporting segments. (6) Premiums received from insurance contracts comprised Global Insurers and Reinsurers ( $15,665.9 ), North American Insurers ( $8,229.0 ) and International Insurers and Reinsurers ( $3,296.3 ) reporting segments. (7) Claims and other insurance service expenses paid, including investment components comprised Global Insurers and Reinsurers ($9,275.5) , North American Insurers ($4,650.1) and International Insurers and Reinsurers ($1,612.3) reporting segments. (8) Insurance acquisition cash flows paid comprised Global Insurers and Reinsurers ($2,524.1) , North American Insurers ($1,942.8) and International Insurers and Reinsurers ($729.7) reporting segments. (9) Principally reflects contracts recognized on the acquisition of Gulf Insurance, as described in note 21, which were primarily accounted for as if the company had entered into the contracts on the acquisition date, with the fair value of the contracts deemed as the premium received. Consequently, acquired contracts in their settlement period are included within the LRC and their expected settlement period deemed as the coverage period. Year ended December 31, 2022 Property and Casualty Insurance and Reinsurance Liability for incurred claims Risk adjustment for Liability for Estimates of non- remaining present value of financial coverage (1) future cash flows risk Total Balance - January 1 2,092.0 30,896.3 2,427.3 35,415.6 Changes in the consolidated statement of comprehensive income: Insurance revenue (24,494.8) — — (24,494.8) Incurred claims and other insurance service expenses (2) 106.8 15,972.3 825.1 16,904.2 Amortization of acquisition costs and other (3) 4,156.5 — — 4,156.5 Prior year reserve development and release of risk adjustment on prior year claims (4) — (171.2) (698.9) (870.1) Insurance service expenses 4,263.3 15,801.1 126.2 20,190.6 Insurance service result (20,231.5) 15,801.1 126.2 (4,304.2) Net finance (income) expenses from insurance contracts (5) 3.9 (1,586.1) — (1,582.2) Foreign exchange effects and other 9.5 (577.5) (73.5) (641.5) Total changes in the consolidated statement of comprehensive income (20,218.1) 13,637.5 52.7 (6,527.9) Cash flows: Premiums received (6) 24,710.1 — — 24,710.1 Claims and other insurance service expenses paid, including investment components (7) — (12,593.2) — (12,593.2) Insurance acquisition cash flows (8) (4,408.3) — — (4,408.3) Changes in funds withheld (145.9) 36.7 — (109.2) 20,155.9 (12,556.5) — 7,599.4 Investment components and other (128.9) 131.6 — 2.7 Balance - December 31 1,900.9 32,108.9 2,480.0 36,489.8 (1) Includes loss components of $190.9 at January 1, 2022 and $139.0 at December 31, 2022. (2) Incurred claims and other insurance service expenses included within estimates of present value of future cash flows comprised Global Insurers and Reinsurers ( $9,950.5 ), North American Insurers ( $4,336.1 ) and International Insurers and Reinsurers ( $1,685.7 ) reporting segments. Incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ( $597.9 ), North American Insurers ( $152.8 ) and International Insurers and Reinsurers ( $74.4 ) reporting segments. (3) Amortization of acquisition costs and other comprised Global Insurers and Reinsurers ( $2,139.2 ), North American Insurers ( $1,561.3 ) and International Insurers and Reinsurers ( $456.0 ) reporting segments. (4) Reflects the release of risk adjustment for non-financial risk as claims are paid, primarily at the Global Insurers and Reinsurers ($508.5) and the North American Insurers ($133.5) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include favourable prior year reserve development at the International Insurers and Reinsurers reporting segment ( $398.7 ), partially offset by adverse prior year reserve development at the North American Insurers ( $133.2 ) and Global Insurers and Reinsurers ( $94.3 ) reporting segments. (5) Net finance income from insurance contracts included within estimates of present value of future cash flows primarily comprised Global Insurers and Reinsurers ( $1,171.0 ) and North American Insurers ( $422.1 ) reporting segments. (6) Premiums received from insurance contracts comprised Global Insurers and Reinsurers ( $14,602.3 ), North American Insurers ( $7,442.7 ) and International Insurers and Reinsurers ( $2,665.1 ) reporting segments. (7) Claims and other insurance service expenses paid, including investment components comprised Global Insurers and Reinsurers ($7,256.3) , North American Insurers ($3,829.6) and International Insurers and Reinsurers ($1,507.3) reporting segments. (8) Insurance acqui sition cash flows paid comprised Global Insurers and Reinsurers ($2,144.5) , North American Insurers ($1,717.5) and International Insurers and Reinsurers ($546.3) reporting segments. Development of insurance losses 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 tables below present the estimates of undiscounted cumulative claims, excluding the risk adjustment, on both a gross and net of reinsurance basis for insurance contracts issued by the property and casualty insurance and reinsurance reporting segments at the end of each calendar year, the cumulative payments made in respect of those claims in subsequent years and the re-estimated amount of each calendar year’s cumulative claims as at December 31, 2023. Estimates of undiscounted gross cumulative claims Calendar year 2017 2018 2019 2020 2021 2022 2023 Property and casualty provision for outstanding losses and loss adjustment expenses at December 31 25,284.5 25,426.9 26,528.3 28,700.5 32,329.1 36,306.4 41,221.8 Cumulative payments as of: One year later 6,917.3 7,191.0 7,018.7 6,986.7 8,410.7 10,341.7 Two years later 11,052.3 11,487.9 11,133.7 11,990.6 14,571.5 Three years later 13,928.6 14,318.9 14,702.8 16,410.5 Four years later 15,843.4 16,807.6 17,959.2 Five years later 17,528.7 19,121.9 Six years later 19,141.7 Reserves re-estimated as of: One year later 24,131.2 25,256.3 26,259.1 28,119.8 31,640.8 36,470.5 Two years later 24,091.7 25,124.0 26,052.6 27,894.1 32,041.6 Three years later 23,949.9 25,132.6 25,961.4 28,468.4 Four years later 24,046.1 25,286.7 26,611.8 Five years later 24,202.6 25,851.6 Six years later 24,554.7 Favourable (adverse) development 729.8 (424.7) (83.5) 232.1 287.5 (164.1) Favourable (adverse) development comprised of: Effect of foreign currency translation 483.5 222.5 309.6 271.0 163.6 7.4 Favourable (adverse) loss reserve development 246.3 (647.2) (393.1) (38.9) 123.9 (171.5) 729.8 (424.7) (83.5) 232.1 287.5 (164.1) Reconciliation to the LIC at the property and casualty insurance and reinsurance reporting segments Property and casualty provision for outstanding losses and loss adjustment expenses as presented above 41,221.8 Effect of discounting (6,193.1) Risk adjustment for non-financial risk 3,137.6 Other (1) 347.2 Liability for incurred claims (PAA & GMM) 38,513.5 Less: Liability for incurred claims (GMM) (331.6) Liability for incurred claims (PAA) 38,181.9 Liability for incurred claims ( PAA) as presented in the table above Estimates of present value of future cash flows 35,530.6 Risk adjustment for non-financial risk 2,651.3 Liability for incurred claims (PAA) 38,181.9 (1) Primarily includes funds withheld and settled crop losses payable at Odyssey Group, partially offset by reinstatement premiums payable. The effect of foreign currency translation in the table above primarily arose on translation of the provisions for losses 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 22. 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. Unfavourable loss reserve development in calendar year 2023 of $171.5 in the table above was principally comprised of large fronting losses at Fairfax Latin America, emergence related to asbestos and other latent claims and unfavourable loss experience related to accident years 2016 to 2019. Estimates of undiscounted net cumulative claims (1) Calendar year 2017 2018 2019 2020 2021 2022 2023 Property and casualty provision for outstanding losses and loss adjustment expenses at December 31 19,750.1 19,334.7 19,858.9 21,468.6 24,068.6 27,800.1 31,618.1 Cumulative payments as of: One year later 5,297.4 5,407.0 5,339.8 5,426.1 6,415.3 7,791.6 Two years later 8,394.6 8,606.4 8,480.3 9,269.8 11,042.3 Three years later 10,562.7 10,719.0 11,216.3 12,456.8 Four years later 12,010.0 12,624.3 13,473.3 Five years later 13,291.3 14,142.2 Six years later 14,348.9 Reserves re-estimated as of: One year later 18,642.9 19,052.8 19,587.2 21,233.4 23,808.7 27,534.6 Two years later 18,411.4 18,937.4 19,585.7 21,342.5 24,151.8 Three years later 18,275.8 19,052.3 19,845.5 21,728.2 Four years later 18,392.0 19,227.2 20,269.4 Five years later 18,589.3 19,589.3 Six years later 18,839.6 Favourable (adverse) development 910.5 (254.6) (410.5) (259.6) (83.2) 265.5 Favourable (adverse) development comprised of: Effect of foreign currency translation 183.4 9.4 101.7 108.6 126.4 12.2 Favourable (adverse) loss reserve development 727.1 (264.0) (512.2) (368.2) (209.6) 253.3 910.5 (254.6) (410.5) (259.6) (83.2) 265.5 Reconciliation to the net LIC at the property and casualty insurance and reinsurance reporting segments Property and casualty provision for outstanding losses and loss adjustment expenses as presented above 31,618.1 Effect of discounting (4,679.9) Risk adjustment for non-financial risk 2,134.0 Other (2) (277.6) Net liability for incurred claims (PAA & GMM) 28,794.6 Less: Net liability for incurred claims (GMM) (286.3) Net liability for incurred claims (PAA) 28,508.3 Net liability for incurred claims (PAA) as presented in the preceding table and note 9 LIC (PAA) AIC (PAA) (note 9) Net LIC (PAA) Estimates of present value of future cash flows 35,530.6 8,821.0 26,709.6 Risk adjustment for non-financial risk 2,651.3 852.6 1,798.7 Net liability for incurred claims (PAA) 38,181.9 9,673.6 28,508.3 (1) Net of asset for incurred claims for reinsurance contracts held. (2) Primarily includes reinsurance paid losses, partially offset by funds withheld and reclassification of certain retrospective contracts to LRC. |
Reinsurance Contract Assets Hel
Reinsurance Contract Assets Held | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Contract Assets Held | |
Reinsurance Contract Assets Held | 9. Reinsurance Contract Assets Held December 31, 2023 December 31, 2022 PAA GMM (1) Total PAA GMM (1) Total Reinsurance contract assets held 9,856.3 1,031.4 10,887.7 8,679.2 1,012.3 9,691.5 (1) Comprised of reinsurance contract assets held measured under the GMM at Global Insurers and Reinsurers of $321.6 , (2022 - $320.0 ), International Insurers and Reinsurers of $262.1 (2022 - $290.4 ) and Life insurance and Run-off of $447.7 (2022 - $401.9 ). Reinsurance contract assets held, measured under the PAA by reporting segment and excluding intercompany balances, were as follows: Property and Casualty Insurance and Reinsurance Life North American Global Insurers International Insurers insurance Consolidated Insurers and Reinsurers and Reinsurers Total and Run-off ARC AIC Total ARC AIC Total ARC AIC Total 2023 January 1 (15.2) 974.5 959.3 (182.1) 6,633.5 6,451.4 53.3 1,210.2 1,263.5 8,674.2 5.0 8,679.2 December 31 (70.0) 1,250.3 1,180.3 (46.6) 7,007.2 6,960.6 296.7 1,416.1 1,712.8 9,853.7 2.6 9,856.3 2022 January 1 (12.9) 901.9 889.0 (166.4) 6,250.2 6,083.8 43.6 1,570.7 1,614.3 8,587.1 2.9 8,590.0 December 31 (15.2) 974.5 959.3 (182.1) 6,633.5 6,451.4 53.3 1,210.2 1,263.5 8,674.2 5.0 8,679.2 Movements in reinsurance contract assets held An analysis of the asset for remaining coverage and the asset for incurred claims for reinsurance contracts held by the property and casualty insurance and reinsurance reporting segments measured under the PAA for the year ended December 31 were as follows: Year ended December 31, 2023 Property and Casualty Insurance and Reinsurance Asset for incurred claims Risk adjustment for Asset for Estimates of non- remaining present value of financial coverage (1) future cash flows risk Total Balance - January 1 (144.0) 8,011.6 806.6 8,674.2 Changes in the consolidated statement of comprehensive income: Cost of reinsurance (4,759.6) — — (4,759.6) Recoveries of incurred claims and other insurance service expenses (2) (27.8) 3,496.2 330.1 3,798.5 Prior year reserve development and release of risk adjustment on prior year claims (3) — 227.0 (266.4) (39.4) Recoveries of insurance service expenses (27.8) 3,723.2 63.7 3,759.1 Net reinsurance result (4,787.4) 3,723.2 63.7 (1,000.5) Net finance income from reinsurance contract assets held (4) 0.8 520.9 — 521.7 Foreign exchange effects and other (41.9) (59.0) (31.9) (132.8) Total changes in the consolidated statement of comprehensive income (4,828.5) 4,185.1 31.8 (611.6) Cash flows: Premiums paid (5) 4,786.2 — — 4,786.2 Amounts received (6) — (3,502.6) — (3,502.6) Changes in funds withheld (3.1) (14.6) — (17.7) 4,783.1 (3,517.2) — 1,265.9 Investment components and other (7.2) 8.0 — 0.8 Contracts recognized on acquisition of subsidiary (7) 376.7 133.5 14.2 524.4 Balance - December 31 180.1 8,821.0 852.6 9,853.7 (1) Includes loss recovery components of $50.1 at January 1, 2023 and $23.0 at December 31, 2023. (2) Recoveries of incurred claims and other insurance service expenses included within estimates of present value of future cash flows comprised Global Insurers and Reinsurers ($1,996.4) , North American Insurers ($973.7) and International Insurers and Reinsurers ($526.1) reporting segments. Recoveries of incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ($219.3) , International Insurers and Reinsurers ($57.7) and North American Insurers ($53.1) reporting segments. (3) Reflects the release of risk adjustment for non-financial risk as claims are recovered, primarily at the Global Insurers and Reinsurers ($200.9) and the North American Insurers ($40.4) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘recoveries of incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include favourable prior year reserve development at the International Insurers and Reinsurers ( $217.8 ) and the North American Insurers ( $53.0 ) reporting segments, partially offset by adverse prior year reserve development at the Global Insurers and Reinsurers reporting segment ( $43.8 ). (4) Net finance income from reinsurance contract assets held included within estimates of present value of future cash flows primarily comprised Global Insurers and Reinsurers ($392.6) , International Insurers and Reinsurers ($78.6) and North American Insurers ($49.7) reporting segments. (5) Premiums paid comprised Global Insurers and Reinsurers ( $2,640.5 ), North American Insurers ($1,122.7) and International Insurers and Reinsurers ($1,023.0) reporting segments. (6) Amounts received comprised Global Insurers and Reinsurers ($2,005.0) , North American Insurers ($793.3) and International Insurers and Reinsurers ($704.3) reporting segments. (7) Principally reflects contracts recognized on the acquisition of Gulf Insurance, as described in note 21, which were primarily accounted for as if the company had entered into the contracts on the acquisition date, with the fair value of the contracts deemed as the premium paid. Consequently, acquired contracts in their settlement period are included within the ARC and their expected settlement period deemed as the coverage period. Year ended December 31, 2022 Property and Casualty Insurance and Reinsurance Asset for incurred claims Risk Asset for Estimates of adjustment for remaining present value of non-financial coverage (1) future cash flows risk Total Balance - January 1 (135.7) 7,905.8 817.0 8,587.1 Changes in the consolidated statement of comprehensive income: Cost of reinsurance (4,344.7) — — (4,344.7) Recoveries of incurred claims and other insurance service expenses (2) 8.4 3,159.4 261.7 3,429.5 Prior year reserve development and release of risk adjustment on prior year claims (3) — (163.1) (253.5) (416.6) Recoveries of insurance service expenses 8.4 2,996.3 8.2 3,012.9 Net reinsurance result (4,336.3) 2,996.3 8.2 (1,331.8) Net finance income (expense) from reinsurance contract assets held (4) 0.1 (291.1) — (291.0) Foreign exchange effects and other 77.8 (172.7) (18.6) (113.5) Total changes in the consolidated statement of comprehensive income (4,258.4) 2,532.5 (10.4) (1,736.3) Cash flows: Premiums paid (5) 4,249.3 — — 4,249.3 Amounts received (6) — (2,415.3) — (2,415.3) Changes in funds withheld (2.7) (1.3) — (4.0) 4,246.6 (2,416.6) — 1,830.0 Investment components and other 3.5 (10.1) — (6.6) Balance - December 31 (144.0) 8,011.6 806.6 8,674.2 (1) Includes loss recovery components of $41.9 at January 1, 2022 and $50.1 at December 31, 2022. (2) Recoveries of incurred claims and other insurance service expenses included within estimates of present value of future cash flows comprised Global Insurers and Reinsurers ($1,977.6) , International Insurers and Reinsurers ($622.3) and North American Insurers ($559.5) reporting segments. Recoveries of incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ($176.0) , International Insurers and Reinsurers ($45.7) and North American Insurers ($40.0) reporting segments. (3) Reflects the release of risk adjustment for non-financial risk as claims are recovered, primarily at the Global Insurers and Reinsurers ($198.4) and the North American Insurers ($24.3) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘recoveries of incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include adverse prior year reserve development in the International Insurers and Reinsurers reporting segment ( $359.9 ), partially offset by favourable prior year reserve development in the North American Insurers ( $98.8 ) and the Global Insurers and Reinsurers ( $98.0 ) reporting segments. (4) Net finance expense from reinsurance contract assets held included within estimates of present value of future cash flows primarily comprised net finance expense within the Global Insurers and Reinsurers ($279.8) and North American Insurers ($28.9) reporting segments, partially offset by net finance income at the International Insurers and Reinsurers ($17.6) reporting segment. (5) Premiums paid comprised Global Insurers and Reinsurers ($2,506.0) , North American Insurers ($880.2) and International Insurers and Reinsurers ($863.1) reporting segments. (6) Amounts received comprised Global Insurers and Reinsurers ($1,333.0) , North American Insurers ($526.8) and International Insurers and Reinsurers ($555.5) reporting segments. |
Net Finance Income or Expense f
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held | 12 Months Ended |
Dec. 31, 2023 | |
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held | |
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held | 10. Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held Year ended December 31, 2023 2022 Restated Net finance income (expense) from insurance contracts Interest accreted to insurance contracts (1,889.5) (433.6) Effect of changes in interest rates and other financial assumptions (263.2) 2,448.0 (2,152.7) 2,014.4 Net finance income (expense) from reinsurance contract assets held Interest accreted to reinsurance contract assets held 502.0 122.3 Effect of changes in interest rates and other financial assumptions 45.1 (519.4) 547.1 (397.1) Net finance income (expense) from insurance contracts and reinsurance contract assets held (1,605.6) 1,617.3 Investment income (1) Interest and dividends 1,896.2 961.8 Share of profit of associates 1,022.2 1,022.4 Net gains (losses) on investments 1,949.5 (1,573.2) 4,867.9 411.0 Net financial result 3,262.3 2,028.3 (1) Interest and dividends, share of profit of associates and net gains (losses) on investments as presented in the consolidated statement of earnings, which includes amounts reported by the non-insurance companies and the group holding companies as disclosed in note 23. The company’s capital management objectives, which are discussed in the Capital Management section of note 22, include maintaining sufficient liquid resources at the holding company and operating company levels to meet company obligations while remaining opportunistic in deploying capital. As a result, there is not a direct relationship between the company’s net finance income or expenses from insurance contracts and reinsurance contract assets held and the investment return on the portfolio investments. Certain of the company’s investments, principally within the fixed income portfolio, are subject to interest rate risk (as discussed in note 22) and the net gains or losses on those investments which may result from changes in market interest rates may not correspond directly with changes in the company’s net finance income (expense) from insurance contracts and reinsurance contract assets held. While net insurance finance income or expense reflects the effects and changes in time value of money and financial risk related to these net liabilities, investment returns are based on the company’s overall investment strategy. |
Insurance Contract Receivables
Insurance Contract Receivables and Payables | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Contract Receivables and Payables | |
Insurance Contract Receivables and Payables | 11. Insurance Contract Receivables and Payables Insurance contract receivables were comprised as follows: December 31, December 31, 2023 2022 Restated Insurance premiums receivable from agents, brokers and other intermediaries 615.9 411.5 Insurance contract receivables from third party administrators and other 310.2 237.4 926.1 648.9 Current 685.3 468.5 Non-current 240.8 180.4 926.1 648.9 Insurance contract payables were comprised as follows: December 31, December 31, 2023 2022 Restated Payable to agents and brokers 374.2 495.6 Investment contracts associated with life insurance products (1) 626.5 595.8 Other insurance contract payables 206.2 311.3 1,206.9 1,402.7 Current 518.4 802.6 Non-current 688.5 600.1 1,206.9 1,402.7 (1) Contracts issued by the company’s life insurance operations which do not transfer significant insurance risk, but do transfer financial risk from the policyholder to the company, representing a financial liability. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2,927.5 503.2 653.9 1,018.3 586.1 5,689.0 Additions (2) 355.8 — 538.2 123.0 209.3 1,226.3 Disposals (3) (45.9) — (35.9) (0.5) — (82.3) Amortization — — (92.9) — (280.4) (373.3) Impairments (4) (132.4) — — (3.8) — (136.2) Foreign exchange effect and other 16.9 — 7.3 24.7 3.9 52.8 Balance - December 31, 2023 3,121.9 503.2 1,070.6 1,161.7 518.9 6,376.3 Gross carrying amount 3,485.6 503.2 1,765.9 1,203.0 1,713.6 8,671.3 Accumulated amortization — — (710.3) — (1,175.1) (1,885.4) Accumulated impairment and other (363.7) — 15.0 (41.3) (19.6) (409.6) 3,121.9 503.2 1,070.6 1,161.7 518.9 6,376.3 Goodwill Intangible assets Total Lloyd’s Customer Computer participation and broker Brand software rights (1) relationships names (1) and other (1) Balance - January 1, 2022 3,084.8 503.2 760.9 1,087.3 492.0 5,928.2 Additions 152.0 — 25.9 (0.3) 267.6 445.2 Disposals (3) (81.9) — (31.6) (8.5) (3.2) (125.2) Amortization — — (91.7) — (134.9) (226.6) Impairments (4) (137.0) — — — (0.9) (137.9) Foreign exchange effect and other (90.4) — (9.6) (60.2) (34.5) (194.7) Balance - December 31, 2022 2,927.5 503.2 653.9 1,018.3 586.1 5,689.0 Gross carrying amount 3,161.8 503.2 1,279.0 1,060.1 1,594.2 7,598.3 Accumulated amortization — — (631.6) — (988.3) (1,619.9) Accumulated impairment and other (234.3) — 6.5 (41.8) (19.8) (289.4) 2,927.5 503.2 653.9 1,018.3 586.1 5,689.0 (1) Indefinite-lived intangible assets not subject to amortization had an aggregate carrying value at December 31, 2023 of $1,756.8 (December 31, 2022 – $1,613.6 ). (2) On December 26, 2023 the company acquired additional interest in Gulf Insurance and consolidated its assets and liabilities on the date of acquisition. See note 21. (3) On May 10, 2023 Brit sold its managing general underwriting operations, Ambridge Group and deconsolidated goodwill of $45.9 and intangible assets of $32.6 . During 2022 the company sold its interests in the Crum & Forster Pet Insurance Group and Pethealth and deconsolidated goodwill of $81.7 and intangible assets of $34.6 . See note 21. (4) During 2023 non-cash impairment charges recorded in Non-insurance expenses in the consolidated statement of earnings by the non-insurance companies primarily related to non-cash goodwill impairment charges on Farmers Edge of $63.5 (2022 - $133.4 ). Goodwill and intangible assets were allocated to the company’s cash-generating units (“CGUs”) as follows: December 31, 2023 December 31, 2022 Intangible Intangible Goodwill assets Total Goodwill assets Total Insurance and reinsurance companies Allied World 940.0 474.3 1,414.3 940.0 519.8 1,459.8 Gulf Insurance 330.5 607.0 937.5 — — — Brit 167.7 527.4 695.1 214.6 565.5 780.1 Zenith National 317.6 69.3 386.9 317.6 77.7 395.3 Crum & Forster 132.6 99.0 231.6 132.6 57.8 190.4 Northbridge 83.8 136.6 220.4 81.6 133.5 215.1 Odyssey Group 119.7 49.4 169.1 119.7 50.8 170.5 All other (1) 96.7 103.1 199.8 85.1 108.3 193.4 2,188.6 2,066.1 4,254.7 1,891.2 1,513.4 3,404.6 Non-insurance companies Recipe 293.6 919.0 1,212.6 298.9 902.2 1,201.1 AGT 150.7 49.4 200.1 147.6 49.6 197.2 Thomas Cook India 126.9 48.1 175.0 127.7 48.4 176.1 Boat Rocker 59.7 102.9 162.6 86.4 184.8 271.2 All other (2) 302.4 68.9 371.3 375.7 63.1 438.8 933.3 1,188.3 2,121.6 1,036.3 1,248.1 2,284.4 3,121.9 3,254.4 6,376.3 2,927.5 2,761.5 5,689.0 (1) Comprised primarily of balances related to AMAG Insurance, Eurolife and Fairfax Central and Eastern Europe. (2) Comprised primarily of balances related to Dexterra Group, Grivalia Hospitality (consolidated on July 5, 2022) and Fairfax India's subsidiaries. Impairment tests for goodwill and indefinite-lived intangible assets were completed during 2023 and it was concluded that no significant impairments had occurred, other than non-cash goodwill impairment charges on Farmers Edge of $63.5 which were recognized in 2023. 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 net insurance revenue, investment returns, regulatory capital ratios, other 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 net insurance revenue or other 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 10.1% to 13.0% for insurance and reinsurance subsidiaries, and 10.5% to 25.5% 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, 2023 | |
Other Assets | |
Other Assets | 13. Other assets were comprised as follows: December 31, 2023 December 31, 2022 Restated Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Premises and equipment, right-of-use assets and non-insurance companies’ investment property (2) 875.1 2,380.6 3,255.7 684.0 2,199.7 2,883.7 Assets associated with unit-linked insurance and other products (3) 1,204.0 — 1,204.0 676.5 — 676.5 Inventories — 669.1 669.1 — 668.2 668.2 Non-insurance revenue receivables — 611.6 611.6 — 638.9 638.9 Accrued interest and dividends 488.0 2.8 490.8 313.7 3.5 317.2 Prepaid expenses 170.5 180.4 350.9 111.0 134.8 245.8 Call options on non-controlling interests (4) 306.6 — 306.6 167.4 — 167.4 Income tax, sales tax and subsidies receivable 60.4 215.5 275.9 71.3 204.6 275.9 Finance lease receivables 7.8 207.4 215.2 8.8 218.0 226.8 Prepaid losses on claims 151.0 — 151.0 168.9 — 168.9 Pension surplus 96.3 — 96.3 144.5 — 144.5 Receivable for securities sold but not yet settled 37.9 — 37.9 11.2 — 11.2 Other (5) 515.1 110.1 625.2 470.7 85.6 556.3 3,912.7 4,377.5 8,290.2 2,828.0 4,153.3 6,981.3 Current 1,425.3 1,702.9 3,128.2 943.7 1,632.6 2,576.3 Non-current 2,487.4 2,674.6 5,162.0 1,884.3 2,520.7 4,405.0 3,912.7 4,377.5 8,290.2 2,828.0 4,153.3 6,981.3 (1) Includes Life insurance and Run-off, and the group holding companies. (2) The increase during 2023 principally reflected growth in premises and equipment at Grivalia Hospitality as it expands its operations and the consolidation of Gulf Insurance, as described in note 21. (3) Primarily includes insurance contracts written by the company’s life insurance operations that transfer the market risk associated with the underlying investment performance, which supports the benefit payments, to the policyholder (“unit-linked”). The liability for the associated life policy benefits are included within insurance contract liabilities (note 8). For these unit-linked contracts or funds, the company measures the underlying investments at fair value. The increase in such investment assets during 2023 principally reflected higher unit-linked insurance volumes at Eurolife, and the consolidation of Gulf Insurance as described in note 21. (4) Comprised of call options on the non-controlling interests in Allied World, Brit and Odyssey Group, which expire in 2026, 2027 and 2029, respectively. At certain dates subsequent to expiry of a call option, the non-controlling interests may request an initial public offering of their shares, the structure, process and timing of which will be controlled by the company; in certain circumstances, the non-controlling interests may request a sale of the respective operating company to a third party. (5) 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, 2023 | |
Accounts Payable and Accrued Liabilities | |
Accounts Payable and Accrued Liabilities | 14. Accounts payable and accrued liabilities were comprised as follows: December 31, 2023 December 31, 2022 Restated Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Lease liabilities 349.0 726.2 1,075.2 364.1 729.9 1,094.0 Payables related to cost of sales — 965.2 965.2 — 814.3 814.3 Salaries and employee benefit liabilities 642.3 115.5 757.8 500.5 98.5 599.0 Deferred gift card, hospitality and other revenue 34.8 425.9 460.7 37.8 392.0 429.8 Income taxes payable 284.8 22.1 306.9 347.0 14.0 361.0 Put options held by non-controlling interests (2) 180.7 69.4 250.1 128.1 45.4 173.5 Pension and post retirement liabilities 145.1 12.0 157.1 132.9 12.8 145.7 Amounts withheld and accrued taxes 82.5 33.2 115.7 58.3 30.7 89.0 Administrative and other (3) 1,142.4 256.1 1,398.5 807.4 292.9 1,100.3 2,861.6 2,625.6 5,487.2 2,376.1 2,430.5 4,806.6 Current 1,818.3 1,739.1 3,557.4 1,358.0 1,553.3 2,911.3 Non-current 1,043.3 886.5 1,929.8 1,018.1 877.2 1,895.3 2,861.6 2,625.6 5,487.2 2,376.1 2,430.5 4,806.6 (1) Includes Life insurance and Run-off, and the group holding companies. (2) Principally a put option held by Eurobank on the non-controlling interest in Eurolife. (3) Principally comprised of accrued operating expenses, accrued interest expense, payables for securities purchased but not yet settled, advances from customers and liabilities related to business acquisitions. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Borrowings | 15. December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Principal value (a) value (b) Principal value (a) value (b) Borrowings - holding company Fairfax unsecured notes (d) 4.875% due August 13, 2024 (1) 279.3 279.0 277.5 282.5 281.6 277.0 4.95% due March 3, 2025 (Cdn$348.6) (1) 264.3 263.7 264.3 258.3 257.2 255.2 8.30% due April 15, 2026 (e) 91.8 91.8 97.1 91.8 91.7 98.2 4.70% due December 16, 2026 (Cdn$450.0) 341.3 340.4 339.9 332.1 331.0 323.7 4.25% due December 6, 2027 (Cdn$650.0) 492.9 492.0 486.4 479.7 478.6 455.8 2.75% due March 29, 2028 (€750.0) 828.5 821.5 791.9 800.5 792.2 698.3 4.85% due April 17, 2028 600.0 597.5 592.7 600.0 596.9 568.1 4.23% due June 14, 2029 (Cdn$500.0) 379.2 378.1 371.6 369.0 367.7 342.7 4.625% due April 29, 2030 650.0 646.8 627.3 650.0 646.4 591.1 3.375% due March 3, 2031 596.8 585.2 527.0 600.0 586.8 492.8 3.95% due March 3, 2031 (Cdn$840.0) 637.0 633.4 598.9 627.4 623.2 549.4 5.625% due August 16, 2032 741.2 735.6 742.5 750.0 743.6 707.1 6.00% due December 7, 2033 (1) 400.0 394.0 410.6 — — — 7.75% due July 15, 2037 (e) 91.3 90.7 104.3 91.3 90.7 95.2 Notes payable (2) 660.0 579.2 579.2 — — — Revolving credit facility (3) — — — — — — 7,053.6 6,928.9 6,811.2 5,932.6 5,887.6 5,454.6 Borrowings - insurance and reinsurance companies Allied World 4.35% senior notes due October 29, 2025 500.0 501.8 488.0 500.0 502.9 477.7 Allied World revolving credit facility and other borrowings 18.0 20.6 19.5 16.8 19.8 16.9 Gulf Insurance floating rate long term loans due 2027 (4) 172.9 172.9 171.9 — — — Zenith National 8.55% debentures due August 1, 2028 (d) 38.5 38.4 38.5 38.5 38.3 38.5 Brit 3.6757% subordinated notes due December 9, 2030 (£127.0) 161.9 161.9 118.3 162.4 162.4 120.6 Brit floating rate revolving credit facility (5) — — — 10.0 10.0 10.0 891.3 895.6 836.2 727.7 733.4 663.7 Borrowings - non-insurance companies (c) Fairfax India 5.00% unsecured senior notes due 2028 441.6 439.4 399.4 441.6 438.9 400.7 Fairfax India subsidiary borrowings 75.8 75.8 75.8 122.6 122.2 122.2 AGT credit facilities, senior notes and loans (6) 493.5 491.0 488.0 511.9 508.4 498.8 Recipe term loans and credit facilities 400.2 398.2 384.8 464.0 461.5 436.7 Grivalia bond loans and term loans 205.8 205.2 205.2 111.3 111.3 111.3 Loans and revolving credit facilities primarily at floating rates (7)(8) 289.4 289.4 289.4 361.8 361.6 361.8 1,906.3 1,899.0 1,842.6 2,013.2 2,003.9 1,931.5 Total debt 9,851.2 9,723.5 9,490.0 8,673.5 8,624.9 8,049.8 ( 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 2023 the company and its subsidiaries completed the following debt transactions: Holding company (1) On December 7, 2023 the company completed an offering of $400.0 principal amount of 6.00% unsecured senior notes due December 7, 2033 for net proceeds of $393.9 after discount, commissions, and expenses. Commissions and expenses of $3.1 were included in the carrying value of the notes. Subsequent to December 31, 2023, on January 12, 2024 the company completed a re-opening of these notes for $200.0 principal amount for net proceeds, excluding accrued interest, of $200.2 after premium, commissions and expenses. Subsequent to December 31, 2023, on January 29, 2024 the company used a portion of the net proceeds from the offering to redeem its remaining $279.3 principal amount of 4.875% unsecured senior notes due August 13, 2024 for cash consideration of $285.6, including accrued interest. On February 14, 2024 the company announced that, on March 15, 2024, it will use the remainder of the net proceeds from the offering to redeem its Cdn$348.6 principal amount of 4.95% unsecured senior notes due March 3, 2025. (2) On December 26, 2023 the company acquired KIPCO’s 46.3% interest in Gulf Insurance as described in note 21, which included a payment deed of $660.0 , requiring the company to make four equal annual payments of $165.0 to KIPCO beginning on the first anniversary of closing of the transaction. The fair value was determined using a discounted cash flow model with an average discount rate of 5.5% . (3) On July 14, 2023 the company extended the term of its $2.0 billion unsecured revolving credit facility with a syndicate of lenders from June 29, 2027 to July 14, 2028. The revolving credit facility contains certain financial covenants that require the company to maintain a ratio of consolidated debt to consolidated capitalization not exceeding 0.35 :1 and consolidated shareholders’ equity of not less than $11.5 billion, both calculated as defined in such financial covenants. At December 31, 2023 and 2022, the revolving credit facility was undrawn and the company was in compliance with its financial covenants. Insurance and reinsurance companies (4) On December 26, 2023 the company consolidated Gulf Insurance as described in note 21, including its borrowings of $172.9 at December 31, 2023. (5) On May 9, 2023 Brit exercised the extension option on its $550.0 revolving credit facility to extend the expiry from December 31, 2025 to December 31, 2027. Non-insurance companies (6) On December 19, 2023 AGT extended the maturity of its credit facilities of Cdn$ 710.0 to March 16, 2025. (7) On August 15, 2023 Dexterra Group amended its revolving credit facility, increasing the credit facility from Cdn $200.0 to Cdn $260.0 and extending the maturity from September 7, 2024 to September 7, 2026. (8) On October 3, 2023 Fairfax India extended the maturity of its unused revolving credit facility of $175.0 from December 17, 2024 to October 2, 2026 while maintaining the option to extend for an additional year. Changes in the carrying values of borrowings for the years ended December 31 were as follows: 2023 2022 Insurance Insurance and Non- and Non- Holding reinsurance insurance Holding reinsurance insurance company companies companies Total company companies companies Total Balance – January 1 5,887.6 733.4 2,003.9 8,624.9 5,338.6 790.7 1,623.7 7,753.0 Cash inflows from issuances 393.9 — 228.6 622.5 743.4 — 47.0 790.4 Cash outflows from repayments (21.8) (7.8) (163.9) (193.5) — (0.3) (25.3) (25.6) Net cash inflows (outflows) from credit facilities and short term loans — (10.0) (185.4) (195.4) — (35.0) 304.1 269.1 Non-cash changes: Acquisitions of subsidiaries (note 21) 579.2 172.9 — 752.1 — — 137.1 137.1 Gain on redemption (1.7) (2.7) (24.3) (28.7) — — — — Foreign exchange effect and other 91.7 9.8 40.1 141.6 (194.4) (22.0) (82.7) (299.1) Balance – December 31 6,928.9 895.6 1,899.0 9,723.5 5,887.6 733.4 2,003.9 8,624.9 Principal repayments on borrowings are due as follows: 2024 2025 2026 2027 2028 Thereafter Total Holding company 708.6 165.0 598.1 658.0 1,428.5 3,495.4 7,053.6 Insurance and reinsurance companies 35.2 539.3 39.3 60.5 38.9 178.1 891.3 Non-insurance companies 376.3 354.1 124.5 174.9 512.0 364.5 1,906.3 Total 1,120.1 1,058.4 761.9 893.4 1,979.4 4,038.0 9,851.2 Interest Expense Interest expense in 2023 of $510.0 (2022 – $452.8) was comprised of interest on borrowings by the holding company and the insurance and reinsurance companies of $330.5 (2022 - $316.1), interest on borrowings by the non-insurance companies (which are non-recourse to the holding company) of $130.0 (2022 – $89.8) and accretion of lease liabilities of $49.5 (2022 - $46.9). |
Total Equity
Total Equity | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 was comprised of 1,548,000 multiple voting shares and 24,233,657 subordinate voting shares without par value prior to deducting 1,979,179 subordinate voting shares reserved in treasury for share-based payment awards (December 31, 2022 – 1,548,000, 24,598,380 and 2,021,845 respectively). The multiple voting shares are not traded. Common stock The number of shares outstanding was as follows: 2023 2022 Subordinate voting shares – January 1 22,576,535 23,116,830 Purchases for cancellation (364,723) (387,790) Treasury shares acquired (110,528) (295,474) Treasury shares reissued 153,194 142,969 Subordinate voting shares – December 31 22,254,478 22,576,535 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 23,003,248 23,325,305 During 2023 the company purchased for cancellation 364,723 subordinate voting shares (2022 - 387,790) under the terms of its normal course issuer bids at a cost of $273.6 (2022 – $199.6), of which $183.2 (2022 – $103.5) was charged to retained earnings. During 2023 the company purchased for treasury 110,528 subordinate voting shares at a cost of $89.6 (2022 - 295,474 subordinate voting shares at a cost of $148.2), 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 3, 2024 January 18, 2024 January 25, 2024 $ 15.00 $ 363.1 January 4, 2023 January 19, 2023 January 26, 2023 $ 10.00 $ 245.2 January 5, 2022 January 20, 2022 January 27, 2022 $ 10.00 $ 249.9 Preferred stock The terms of the company’s cumulative five-year rate reset preferred shares at December 31, 2023 were as follows: Next possible Fixed Floating redemption and Number of Liquidation dividend dividend rate conversion shares Carrying preference per rate per date (1)(2) outstanding (3) value (3) Stated capital (3) share annum (4) per annum (5) 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 — 8.19 % 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 — 7.20 % 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 — 7.60 % 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 — 7.89 % Series K March 31, 2027 9,500,000 $ 231.7 Cdn $ 237.5 Cdn $ 25.00 5.05 % — 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 2023 and 2022. (4) The Series C, Series E, Series G, Series I, Series K and Series M preferred shares have a fixed dividend rate equal to the five-year Government of Canada hond yield plus 3.15% , 2.16% , 2.56% , 2.85% , 3.51% and 3.98% respectively, with rate resets on each subsequent five-year anniversary date. (5) 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 2023 the company paid preferred share dividends of $49.7 (2022 - $45.2). Accumulated other comprehensive income (loss) Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax was comprised as follows: December 31, 2023 December 31, 2022 Restated Income tax Income tax Pre-tax (expense) After-tax Pre-tax (expense) After-tax amount recovery amount amount recovery amount Items that may be subsequently reclassified to net earnings Foreign currency translation losses (983.1) 42.2 (940.9) (906.4) 32.8 (873.6) Share of accumulated other comprehensive loss of associates, excluding net gains (losses) on defined benefit plans (169.0) 11.7 (157.3) (221.6) 17.6 (204.0) (1,152.1) 53.9 (1,098.2) (1,128.0) 50.4 (1,077.6) Items that will not be subsequently reclassified to net earnings Net gains (losses) on defined benefit plans (1.9) 9.9 8.0 43.8 (4.3) 39.5 Share of net gains (losses) on defined benefit plans of associates (9.1) (0.1) (9.2) 10.7 (4.7) 6.0 Other 153.1 (15.9) 137.2 43.5 5.7 49.2 142.1 (6.1) 136.0 98.0 (3.3) 94.7 Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax (1,010.0) 47.8 (962.2) (1,030.0) 47.1 (982.9) Income tax (expense) recovery included in other comprehensive income (loss) Other comprehensive income (loss) in the consolidated statement of comprehensive income is presented net of the following income tax (expense) recovery amounts: 2023 2022 Restated Income tax on items that may be subsequently reclassified to net earnings Net unrealized foreign currency translation losses on foreign subsidiaries 15.5 8.5 Share of other comprehensive income (loss) of associates, excluding net gains (losses) on defined benefit plans (6.3) 18.1 9.2 26.6 Net unrealized foreign currency translation losses on associates reclassified to net earnings (0.1) — 9.1 26.6 Income tax on items that will not be subsequently reclassified to net earnings Net gains (losses) on defined benefit plans 15.1 (32.2) Share of net gains (losses) on defined benefit plans of associates 0.5 (10.2) Other (7.1) — 8.5 (42.4) Total income tax (expense) recovery included in other comprehensive income (loss) 17.6 (15.8) 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, 2023 December 31, 2022 controlling interests Restated Economic Economic Ownership Carrying Ownership Carrying percentage (5) value percentage (5) value 2023 2022 Restated Insurance and reinsurance companies (1) Allied World (2)(3) 16.6 % 972.7 17.1 % 862.4 211.8 162.2 Brit (3) 13.8 % 881.2 13.8 % 736.4 188.1 41.0 Odyssey Group (3) 9.99 % 602.3 9.99 % 562.5 104.9 81.1 Gulf Insurance (4) 9.99 % 605.3 — — — — All other — 54.3 — 51.2 4.9 16.4 3,115.8 2,212.5 509.7 300.7 Non-insurance companies Restaurants and retail — 163.5 — 208.1 5.6 32.7 Fairfax India (5) 57.5 % 1,131.1 65.3 % 1,080.2 235.4 114.2 Thomas Cook India 35.4 % 86.0 26.7 % 61.3 6.0 1.1 Other — 254.0 — 340.8 (43.6) (11.2) 1,634.6 1,690.4 203.4 136.8 4,750.4 3,902.9 713.1 437.5 (1) Includes property and casualty insurance and reinsurance companies, Life insurance and Run-off, and the group holding companies. (2) On June 23, 2023 the company purchased shares from minority shareholders of Allied World for cash consideration of $30.6 , increasing its ownership interest in Allied World from 82.9% to 83.4% . Concurrently, certain terms of the Allied World shareholders agreement were amended to extend the company’s option to purchase the remaining interests of the minority shareholders in Allied World at certain dates from September 2024 to September 2026. On September 27, 2022 the company increased its ownership interest in Allied World to 82.9% from 70.9% for total consideration of $733.5 , inclusive of the fair value of a call option exercised and an accrued dividend paid, and recorded a loss in retained earnings of $163.3 in net changes in capitalization in the consolidated statement of changes in equity. (3) During 2023 the operating companies comprising the Global Insurers and Reinsurers reporting segment paid aggregate dividends of $180.3 (2022 - $248.8 ) to non-controlling interests. (4) On December 26, 2023 the company commenced consolidating Gulf Insurance as described in note 21. (5) At December 31, 2023 Fairfax India’s non-controlling interest economic ownership percentage was 57.5% (December 31, 2022 - 65.3% ) which differed from its non-controlling interest voting percentage of 4.8% (December 31, 2022 - 5.6% ). 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, 2023 and 2022 are included in net changes in capitalization in the consolidated statement of changes in equity as shown in the table below. See note 21 and under the heading “Non-controlling interests” earlier in this note for details of those transactions. 2023 2022 Restated Common Non- Common Non- shareholders’ controlling shareholders’ controlling equity interests equity interests Purchase of certain securities held through AVLNs entered with RiverStone Barbados (note 7) (45.1) (178.0) 15.0 (357.1) Partial disposition of Thomas Cook India shares 45.8 19.8 — — Fairfax India share repurchases (1.9) (35.4) (9.9) (90.7) Acquisition of non-controlling interests in Allied World (3.0) (27.6) (163.3) (531.7) Privatization of Recipe — — (66.1) (276.2) Third party’s investment in Brit’s subsidiary Ki Insurance — — — 152.0 Other (63.0) (30.9) 116.4 (32.9) As presented in net changes in capitalization in the consolidated statement of changes in equity (67.2) (252.1) (107.9) (1,136.6) |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per Share | |
Earnings per Share | 17. Net earnings per share is calculated using the weighted average common shares outstanding as follows: 2023 2022 Restated Net earnings attributable to shareholders of Fairfax 4,381.8 3,374.2 Preferred share dividends (49.7) (45.2) Net earnings attributable to common shareholders – basic and diluted 4,332.1 3,329.0 Weighted average common shares outstanding – basic 23,182,558 23,637,824 Share-based payment awards 1,823,558 1,702,599 Weighted average common shares outstanding – diluted 25,006,116 25,340,423 Net earnings per common share – basic $ 186.87 $ 140.83 Net earnings per common share – diluted $ 173.24 $ 131.37 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | 18. The company’s provision for income taxes for the years ended December 31 were comprised as follows: 2023 2022 Restated Current income tax: Current year expense 648.8 616.8 Adjustments to prior years’ income taxes (8.7) (10.0) 640.1 606.8 Deferred income tax: Origination and reversal of temporary differences 193.4 474.0 Adjustments to prior years’ deferred income taxes (20.1) 11.7 173.3 485.7 Provision for income taxes 813.4 1,092.5 A significant portion of the company’s earnings 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 before income taxes by jurisdiction and the associated provision for (recovery of) income taxes for the years ended December 31 are summarized in the following table: 2023 2022 Restated Canada (1) U.S. (2) U.K. (3) Other (4) Total Canada (1) U.S. (2) U.K. (3) Other (4) Total Earnings before income taxes 1,115.6 1,764.3 881.9 2,146.5 5,908.3 547.6 2,792.3 353.2 1,211.1 4,904.2 Provision for (recovery of) income taxes 234.9 362.2 (48.5) 264.8 813.4 153.6 545.3 103.4 290.2 1,092.5 Net earnings 880.7 1,402.1 930.4 1,881.7 5,094.9 394.0 2,247.0 249.8 920.9 3,811.7 (1) Includes Fairfax India. (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) Comprised of Brit. (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, except the U.S., in 2023 compared to 2022 primarily related to higher net unrealized investment gains, principally on the fixed income portfolio, higher share of profit of associates and improved insurance and reinsurance underwriting results, partially offset by increased financing expense on insurance contracts. In 2023, pre - tax profitability in the U.K. included a gain of $259.1 recorded on the company’s sale of its interest in Ambridge Group as described in note 21. In 2022, pre-tax profitability in the U.S. included a gain of $1,213.2 recorded on the company’s sale of its interests in the Crum & Forster Pet Insurance Group and Pethealth as described in note 21. 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: 2023 2022 Restated Canadian statutory income tax rate 26.5 % 26.5 % Provision for income taxes at the Canadian statutory income tax rate 1,565.7 1,299.6 Non-taxable investment income (182.3) (25.6) Tax rate differential on income and losses outside Canada (473.2) (256.3) Change in unrecorded tax benefit of losses and temporary differences (9.7) (0.6) Change in tax rate for deferred income taxes (132.3) 34.5 Provision (recovery) relating to prior years (28.8) 1.7 Foreign exchange effect 12.5 (17.0) Other including permanent differences 61.5 56.2 Provision for income taxes 813.4 1,092.5 Non-taxable investment income of $182.3 in 2023 and $25.6 in 2022 were principally comprised of dividend income, non-taxable interest income and long term or exempt capital gains, and the 50% of net capital gains and losses which are not taxable or deductible in Canada. The tax rate differential on income outside Canada of $473.2 in 2023 principally related to income taxed at lower rates in the U.S., Mauritius and Bermuda. The tax rate differential on income and losses outside Canada of $256.3 in 2022 principally related to income taxed at lower rates in the U.S., Mauritius and Bermuda. Change in tax rate for deferred income taxes of $132.3 in 2023 primarily related to deferred income tax assets recognized as a result of new tax laws in Bermuda, including the introduction of a 15% corporate income tax effective January 1, 2025 and a transition adjustment resulting in an increase in the tax basis of net assets. As a result of the transition adjustment, a deferred income tax asset of $140.8 was recorded during 2023. Income taxes refundable and payable were as follows: December 31, December 31, 2023 2022 Income taxes refundable 59.0 67.1 Income taxes payable (306.9) (361.0) Net income taxes payable (247.9) (293.9) Changes in net income taxes (payable) refundable during the years ended December 31 were as follows: 2023 2022 Balance - January 1 (293.9) (116.7) Amounts recorded in the consolidated statements of earnings (640.1) (606.8) Payments made during the year 713.9 416.4 Acquisitions of subsidiaries (note 21) (31.3) — Foreign exchange effect and other 3.5 13.2 Balance - December 31 (247.9) (293.9) Changes in the net deferred income tax asset (liability) during the years ended December 31 were as follows: 2023 Operating Insurance and and capital reinsurance Intangible Tax losses Investments held contracts assets credits Other Total Balance - January 1 226.8 (193.0) (382.8) (376.1) 75.4 (81.0) (730.7) Amounts recorded in the consolidated statement of earnings 57.2 (411.8) 41.1 116.6 (20.2) 43.8 (173.3) Amounts recorded in total equity 15.0 (5.8) — — — 5.8 15.0 Acquisitions of subsidiaries (note 21) (0.3) 2.7 (4.1) (46.2) — (13.0) (60.9) Foreign exchange effect and other 14.7 (3.9) (12.2) (2.6) (21.6) 26.3 0.7 Balance - December 31 313.4 (611.8) (358.0) (308.3) 33.6 (18.1) (949.2) 2022 Restated Operating Insurance and and capital reinsurance Intangible Tax losses Investments held contracts assets credits Other Total Balance - January 1 230.0 (414.5) 207.8 (413.1) 213.6 38.8 (137.4) Amounts recorded in the consolidated statement of earnings (7.1) 197.2 (588.9) 30.9 (137.1) 19.3 (485.7) Amounts recorded in total equity 8.0 20.1 — — — (44.0) (15.9) Acquisitions of subsidiaries (note 21) 3.3 (11.4) 0.1 (1.9) — (52.6) (62.5) Foreign exchange effect and other (7.4) 15.6 (1.8) 8.0 (1.1) (42.5) (29.2) Balance - December 31 226.8 (193.0) (382.8) (376.1) 75.4 (81.0) (730.7) 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, 2023 related to investments (primarily related to net unrealized investment gains in Asia and the U.S., and at the holding company), insurance and reinsurance held contracts, and intangible assets, partially offset by deferred income tax assets related to operating and capital losses and tax credits. Insurance and reinsurance held contracts are recorded on a discounted basis in these consolidated financial statements but are calculated at different discount rates or on an undiscounted 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 Brit, Allied World, Recipe, and Gulf Insurance) that are typically not deductible in the determination of income taxes payable. In these consolidated financial statements, investment gains and losses are primarily recognized on a mark-to-market basis but are typically only recognized for income tax purposes when realized (particularly in the U.S. and several other jurisdictions). The deferred income tax asset related to operating and capital losses arises primarily at Brit, Northbridge, and the holding company. 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 liabilities 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, 2023 deferred income tax assets of $783.9 (December 31, 2022 - $827.7), which relate principally to operating and capital losses, have not been recorded. The losses for which deferred income tax assets have not been recorded are comprised of losses in Canada of $1,839.2 (December 31, 2022 - $1,728.0), losses in Europe of $624.6 (December 31, 2022 - $552.1), losses in the U.S. of $233.1 (December 31, 2022 - $207.6), and losses at Allied World of $264.9 across various jurisdictions (December 31, 2022 - $295.6). The losses in Canada expire between 2029 and 2043. The losses and foreign tax credits in the U.S. primarily expire between 2024 and 2043. 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, and in Switzerland which expire within seven years. 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, which at December 31, 2023 amounted to approximately $13.4 billion (December 31, 2022 - approximately $9.9 billion) and are not likely to be repatriated in the foreseeable future. |
Statutory Requirements
Statutory Requirements | 12 Months Ended |
Dec. 31, 2023 | |
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 22, under the heading “Capital Management”. The company’s share of dividends paid in 2023 by the insurance and reinsurance subsidiaries, which are eliminated on consolidation, was $512.8 (2022 - $380.9). Additionally, Brit paid a special dividend of $275.0 to the holding company in 2023 from the net proceeds of its sale of Ambridge as described in note 21. Crum & Forster also paid a special dividend of $940.0 to the holding company in 2022 from the sale of its Pet Insurance Group and Pethealth as described in note 21. Based on the surplus and net earnings (loss) of the primary insurance and reinsurance subsidiaries as at and for the year ended December 31, 2023, the maximum dividend capacity available in 2024 at each of those subsidiaries, payable to all shareholders (including non-controlling interests) is as follows: December 31, 2023 North American Insurers Northbridge (1) 572.6 Crum & Forster 228.2 Zenith National 205.3 1,006.1 Global Insurers and Reinsurers Allied World 1,231.2 Odyssey Group 554.9 Brit 125.7 1,911.8 International Insurers and Reinsurers Gulf Insurance 84.9 3,002.8 (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. 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, 2023 | |
Contingencies and Commitments | |
Contingencies and Commitments | 20. The company and its subsidiaries, 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 $88.3 and securities with a fair value of $1,865.7 at December 31, 2023 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. At December 31, 2023 the company’s maximum capital commitments for potential investments was $1,792.6 for common stocks, limited partnerships, associates and joint ventures, and $1,550.1 for first mortgage loans. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | 21. Year ended December 31, 2023 Acquisition of Gulf Insurance On December 26, 2023 the company increased its equity interest in Gulf Insurance to 90.0% from 43.7% by acquiring all shares of Gulf Insurance under the control of KIPCO and certain of its affiliates that represented 46.3% of the equity interest in Gulf Insurance. As a result, the company commenced consolidating Gulf Insurance’s property and casualty insurance operations within the International Insurers and Reinsurers reporting segment and Gulf Insurance’s life insurance operations within the Life insurance and Run - off reporting segment. Gulf Insurance is a diversified composite insurer based in Kuwait that operates across the Middle East and North Africa (“MENA”) region through its subsidiaries. In accordance with applicable Kuwaiti regulatory requirements and the rules of the Boursa Kuwait, the exchange on which Gulf Insurance’s shares are traded, the company paid the purchase price to KIPCO in full in Kuwaiti Dinar on closing. Pursuant to the terms of the agreement, immediately following settlement of the transaction, KIPCO returned to the company in cash the full purchase price less an amount of Kuwaiti Dinar equal to $176.9, and the company delivered to KIPCO a payment deed of $660.0 which requires the company to make four equal annual payments of $165.0 to KIPCO beginning on the first anniversary of closing of the transaction.The aggregate purchase consideration paid by the company to KIPCO on closing was $756.1, comprised of cash of $176.9 and the fair value of the payment deed of $579.2. On closing of the transaction, the company remeasured its previously held 43.7% equity accounted investment in Gulf Insurance to its fair value of $713.0 and recognized a pre – tax gain of $279.9 in gain on sale and consolidation of insurance subsidiaries in the consolidated statement of earnings, inclusive of foreign currency translation losses that were reclassified from accumulated other comprehensive income (loss) to the consolidated statement of earnings. Subsequent to December 31, 2023, on February 18, 2024 in accordance with the regulations of the Capital Markets Authority of Kuwait, the company initiated a mandatory tender offer for the remaining 9.99% equity interest in Gulf Insurance and expects the transaction will close in the second quarter of 2024. The preliminary determination of the fair value of assets acquired and liabilities assumed are summarized in the table that follows and may be revised when estimates, assumptions and valuations are finalized within twelve months of the acquisition date: Gulf Insurance Acquisition date December 26, 2023 Percentage of common shares acquired 90.0 % Assets: Portfolio investments (1) 2,372.6 Reinsurance contract assets held 571.3 Deferred income tax assets 13.8 Goodwill and intangible assets (2) 937.5 Other assets (3) 501.3 Total assets 4,396.5 Liabilities: Accounts payable and accrued liabilities (4) 292.0 Deferred income tax liabilities 77.0 Insurance contract payables 34.8 Insurance contract liabilities 1,745.4 Borrowings - holding company and insurance and reinsurance companies 172.9 Total liabilities 2,322.1 Non-controlling interests (5) 605.3 Purchase consideration (6) 1,469.1 4,396.5 (1) Included subsidiary cash and cash equivalents of $459.9 , of which $31.3 was restricted. (2) Comprised of goodwill of $330.5 and intangible assets of $607.0 (primarily customer relationships of $260.0 , distribution networks of $223.9 and brand names of $123.0 ). (3) Primarily includes premises and equipment ( $178.9 ), unit-linked life investment contracts ( $138.1 ), accounts receivable ( $50.2 ) and prepaid expenses ( $43.1 ). (4) Primarily includes other accounts payable ( $87.5 ), accrued compensation costs ( $75.6 ) and income taxes payable ( $37.9 ). (5) Includes the non-controlling interests arising from Gulf Insurance’s non-wholly owned subsidiaries and the 9.99% equity interest in Gulf Insurance that was not acquired by the company on closing, with the allocation of all of the non-controlling interests to Gulf Insurance’s property and casualty insurance operations within the company’s International Insurers and Reinsurers reporting segment. Non-controlling interests in Gulf Insurance were measured as the proportionate share of the identifiable net assets acquired. (6) Comprised of cash consideration of $176.9 and the fair value of the payment deed of $579.2 paid to KIPCO for the 46.3% equity interest in Gulf Insurance, and the company’s existing 43.7% equity interest in Gulf Insurance with a fair value of $713.0 . Sale of Ambridge Group by Brit On May 10, 2023 Brit sold Ambridge Group (“Ambridge”), its Managing General Underwriter operations, to Amynta Group. The company received $379.0, comprised of cash of $265.8 and a promissory note with a fair value of $113.2. As a result of the sale, the company recorded a pre-tax gain of $259.1 in gain on sale and consolidation of insurance subsidiaries in the consolidated statement of earnings (an after-tax gain of $259.1) and deconsolidated assets and liabilities with carrying values of $309.3 and $191.3 respectively. Year ended December 31, 2022 Sale of Pet Insurance Operations and Investment in JAB Consumer Fund On October 31, 2022 the company sold its interests in the Crum & Forster Pet Insurance Group and Pethealth, including all of their worldwide operations, to Independence Pet Group and certain of its affiliates, which are majority owned by JAB Holding Company (“JAB”), for $1.4 billion, paid as $1.15 billion in cash and $250.0 in debentures. The company also committed to invest $200.0 in JCP V, a JAB consumer fund, of which $160.0 had been invested at December 31, 2023. As a result of the sale, the company recorded a pre-tax gain of $1,213.2, inclusive of foreign currency translation losses that were reclassified from accumulated other comprehensive income (loss) to the consolidated statement of earnings, and selling expenses, in gain on sale of insurance subsidiaries in the consolidated statement of earnings (an after-tax gain of $933.9), and deconsolidated assets and liabilities with carrying values of $149.1 and $32.0. Additional investment in Recipe Unlimited Corporation On October 28, 2022 the company acquired all of the multiple voting shares (“MVS”) and subordinate voting shares in the capital of Recipe, other than those shares owned by the company and 9,398,729 MVS owned by Cara Holdings Limited, at a cash purchase price of Cdn$20.73 per share or $342.3 (Cdn$465.9) in aggregate, comprised of cash consideration of $242.5 (Cdn$330.0) and an increase in borrowings by Recipe of $99.8 (Cdn$135.9). The company recorded a loss in retained earnings of $66.1 and a decrease in non-controlling interests of $276.2, both of which are presented in net changes in capitalization in the consolidated statement of changes in equity. The transaction increased the company’s equity ownership in Recipe from 38.5% at December 31, 2021 to 75.7%, or 84.0% inclusive of Recipe shares that were held through the company’s investment in AVLNs entered with RiverStone Barbados. Recipe was subsequently delisted from the Toronto Stock Exchange. On December 28, 2022 the company received $73.6 (Cdn$100.0) cash consideration from Recipe upon redemption of certain equity held by the company in connection with the closing of the transaction. During 2023 the company purchased from RiverStone Barbados the Recipe shares held through the AVLN. Acquisition of Grivalia Hospitality S.A. On July 5, 2022 the company increased its interest in Grivalia Hospitality S.A. (“Grivalia Hospitality”) to 78.4% from 33.5% by acquiring additional shares for cash consideration of $194.6 (€190.0) and commenced consolidating the assets, liabilities and results of operations of Grivalia Hospitality within non-insurance companies. Grivalia Hospitality acquires, develops and manages hospitality real estate in Greece, Cyprus and Panama. |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2023 | |
Financial Risk Management | |
Financial Risk Management | 22. 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, 2023 compared to those identified at December 31, 2022, 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 their company; each Chief Executive Officer is the individual ultimately responsible for risk management for his or her company and its subsidiaries. The company’s President and 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 President and 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. Underwriting Risk Property and casualty insurance and reinsurance The adoption of IFRS 17 did not affect the company’s exposure to, or management of, underwriting risk, but has resulted in changes to the terms used to describe underwriting risk. Underwriting risk upon adoption of IFRS 17 is the risk that insurance service expenses will exceed insurance revenue and can arise as a result of numerous factors, including pricing risk, reserving risk and catastrophe risk. There were no 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, 2023 compared to December 31, 2022. 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. The table that follows presents the company’s concentration of insurance risk by geographic region and line of business based on net insurance revenue (calculated by the company as insurance revenue less cost of reinsurance). The company’s exposure to general insurance risk varies by geographic region and may change over time. Canada United States Asia (1) International (2) Total 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Property 1,268.1 1,156.2 4,021.1 3,527.0 735.0 597.4 1,774.6 1,471.6 7,798.8 6,752.2 Casualty 1,124.4 1,105.1 9,188.7 8,975.3 556.0 482.8 1,542.6 1,356.2 12,411.7 11,919.4 Specialty 94.1 106.2 708.6 609.8 233.8 207.8 710.4 598.9 1,746.9 1,522.7 Total 2,486.6 2,367.5 13,918.4 13,112.1 1,524.8 1,288.0 4,027.6 3,426.7 21,957.4 20,194.3 Insurance 2,772.7 2,644.4 16,922.7 15,930.8 1,958.6 1,586.6 5,280.8 4,541.7 26,934.8 24,703.5 Reinsurance (286.1) (276.9) (3,004.3) (2,818.7) (433.8) (298.6) (1,253.2) (1,115.0) (4,977.4) (4,509.2) 2,486.6 2,367.5 13,918.4 13,112.1 1,524.8 1,288.0 4,027.6 3,426.7 21,957.4 20,194.3 (1) The Asia geographic segment is primarily comprised of countries located throughout Asia, including China, Japan, India, Sri Lanka, Malaysia, Singapore, Indonesia and South Korea, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe, Africa and Oceania. 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, including inflationary pressures, 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 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. As a result of continued inflationary pressures felt throughout the economy in 2023, although more modest than in 2022, and the resulting changes to global monetary policy, the company continues to focus on inflationary assumptions used in both the pricing of new business and within the company’s reserving process, specifically when setting initial loss estimates and projecting the ultimate costs to settle claims. The company has experienced inflationary pressures on its costs to settle claims throughout 2023 and 2022, and both economic and social inflation remain a key consideration in the company’s reserving methodology and form part of its determination in the selection of the company’s ultimate cost to settle claims. 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 liability for incurred claims for insurance contracts 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, 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 and Gulf Insurance’s life insurance operations and their 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 underwriting procedures that have been established at each life insurance operation to determine the insurability of applicants and to manage aggregate exposures for adverse deviations in assumptions. These underwriting requirements are regularly reviewed by each life insurance operation’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, reinsurance contract assets held 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, 2023 compared to December 31, 2022. 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, 2023 2022 Restated Cash and short term investments 8,092.8 10,386.0 Investments in debt instruments: U.S. sovereign government (1) 16,273.5 14,378.8 Other sovereign government rated AA/Aa or higher (1)(2) 4,046.8 2,413.5 All other sovereign government (3) 3,367.1 2,210.2 Canadian provincials 243.5 284.1 U.S. states and municipalities 184.5 262.7 Corporate and other (4)(5) 13,325.6 9,451.9 Receivable from counterparties to derivative contracts 656.6 256.1 Insurance contract receivables 926.1 648.9 Reinsurance contract assets held 10,887.7 9,691.5 Other assets (6) 2,174.2 1,928.3 Total gross credit risk exposure 60,178.4 51,912.0 (1) Represented together 31.4% of the company’s total investment portfolio at December 31, 2023 (December 31, 2022 - 30.3% ) and considered by the company to have nominal credit risk. (2) Comprised primarily of bonds issued by the governments of Canada, Australia and the United Kingdom with fair values at December 31, 2023 of $2,471.6 , $378.5 and $321.8 respectively (December 31, 2022 - $1,923.5 , $46.5 and $180.6 ). (3) Comprised primarily of bonds issued by the governments of Greece, Brazil and Saudi Arabia with fair values at December 31, 2023 of $1,234.6 , $884.4 and $239.8 respectively (December 31, 2022 - $690.1 , $744.2 and nil ). (4) Represents 20.6% of the company’s total investment portfolio at December 31, 2023 compared to 17.0% at December 31, 2022, with the increase principally related to net purchases of unrated first mortgage loans of $2,261.5 (principally from Pacific Western Bank) and corporate bonds of $817.9 , and the consolidation of Gulf Insurance’s corporate and other bond portfolio of $516.7 . (5) Includes the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 - $2,500.7 ) secured by real estate predominantly in the U.S., Europe and Canada as described in note 5. (6) Excludes assets associated with unit-linked insurance products of $1,204.0 at December 31, 2023 (December 31, 2022 – $676.5 ) for which credit risk is not borne by the company, and income taxes refundable of $59.0 at December 31, 2023 (December 31, 2022 - $67.1 ) 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. In response to the global bank failures and economic volatility created by the events of the March 2023 banking crisis, the company expanded its monitoring of risks associated with cash and short term investments by regularly reviewing the financial strength and creditworthiness of the financial institutions with which it transacts. From these reviews, the company determined it had limited exposure to financial institutions where it perceived heightened credit risk. At December 31, 2023, 59.1% of these balances were held in Canadian and U.S. financial institutions, 24.0% in European financial institutions and 16.9% in other foreign financial institutions (December 31, 2022 – 69.4%, 24.8% and 5.8% 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, 2023 December 31, 2022 Amortized Fair Amortized Fair Issuer Credit Rating cost value % cost value % AAA/Aaa 19,301.4 19,670.5 52.5 17,119.4 16,721.6 57.7 AA/Aa 1,490.9 1,521.9 4.1 858.3 847.6 2.9 A/A 3,977.9 4,012.7 10.7 2,409.6 2,330.6 8.0 BBB/Baa 4,420.3 4,414.2 11.8 3,410.3 3,348.7 11.5 BB/Ba 1,422.0 1,445.9 3.9 2,114.9 1,917.2 6.6 B/B 184.0 182.5 0.5 48.2 49.6 0.2 Lower than B/B 87.6 113.7 0.3 79.7 80.0 0.3 Unrated (1) 6,210.2 6,079.6 16.2 3,928.2 3,705.9 12.8 Total 37,094.3 37,441.0 100.0 29,968.6 29,001.2 100.0 (1) Includes the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 - $2,500.7 ) secured by real estate predominantly in the U.S., Europe and Canada. Unrated debt instruments also include the fair value of the company’s investments in Amynta Agency Inc. of $159.7 (December 31, 2022 – $32.5 ), Blackberry Limited of $148.9 (December 31, 2022 – $285.0 ), ONX Inc. of $125.6 (December 31, 2022 - $25.0 ), Mytilineos S.A. of $101.4 (December 31, 2022 - nil ), and the consolidation of Gulf Insurance’s bond portfolio of $140.8 which is principally comprised of corporate and other bonds. At December 31, 2023, 79.1% (December 31, 2022 – 80.1%) of the fixed income portfolio’s carrying value was rated investment grade or better, with 56.6% (December 31, 2022 – 60.6%) rated AA or better (primarily consisting of government bonds). The increase in bonds rated AAA/Aaa primarily reflected net purchases of U.S. treasury bonds of $1,415.3, other government bonds of $421.7 and Canadian government bonds of $415.9. The increase in bonds rated AA/Aa was primarily due to net purchases of other government bonds of $575.6 and net purchases of corporate and other bonds of $78.1. The increase in bonds rated A/A was primarily due to net purchases of corporate bonds of $1,197.1, and the consolidation of Gulf Insurance’s bond portfolio that included certain other government and corporate and other bonds of $495.8, partially offset by the net sale of other government bonds of $173.1. The increase in bonds rated BBB/Baa was primarily due to the credit rating upgrade of Greek government bonds from BB/Ba to BBB/Baa and net purchases of other government bonds of $441.6, partially offset by the net sales of corporate and other bonds of $430.6. The decrease in bonds rated BB/Ba was principally due to the credit rating upgrade of Greek government bonds from BB/Ba to BBB/Baa. The increase in unrated bonds primarily reflected net purchases of first mortgage loans of $2,261.5, the consolidation of Gulf Insurance’s bond portfolio of $140.8 which is principally comprised of corporate and other bonds, and the promissory note received on Brit’s sale of Ambridge as described in note 21. At December 31, 2023 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 $4,704.6 (December 31, 2022 - $3,599.2), which represented approximately 7.3% (December 31, 2022 – 6.5%) of the total investment portfolio. Exposure to the largest single issuer of corporate debt instrument at December 31, 2023 was the company’s investment in Bank of Nova Scotia of $453.0 (December 31, 2022 – BP Capital Markets America Inc. of $427.7), which represented approximately 0.7% (December 31, 2022 – 0.8%) 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, 2023 2022 Total derivative assets (1) 656.6 256.1 Obligations that may be offset under net settlement arrangements (48.8) (33.0) Fair value of collateral deposited for the benefit of the company (2) (527.9) (216.0) Excess collateral pledged by the company in favour of counterparties 7.2 4.6 Net derivative counterparty exposure after net settlement and collateral arrangements 87.1 11.7 (1) Excludes equity warrants, equity call options, and other derivatives which are not subject to counterparty risk. Also excludes at December 31, 2022 the AVLNs entered with RiverStone Barbados. (2) Excludes excess collateral pledged by counterparties of $6.6 at December 31, 2023 (December 31, 2022 - $68.4 ). Collateral deposited for the benefit of the company at December 31, 2023 consisted of cash of $42.2 and government securities of $492.3 (December 31, 2022 - $9.5 and $274.9). The company had not exercised its right to sell or repledge collateral at December 31, 2023. Reinsurance contract assets held Credit risk on the company’s reinsurance contract assets held existed at December 31, 2023 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 analysts collect and maintain individual operating company and group reinsurance exposures across the company and conduct ongoing detailed assessments of current and potential reinsurers, perform annual reviews of impaired reinsurers, and provide recommendations for the group on the risk of non-performance by the reinsurer. Reinsurers rated A- or higher by A.M. Best represented 88% of the total reinsurance exposure at December 31, 2023, with the remaining 12% primarily representing pools and associations, which generally consist of government or similar insurance funds carrying limited credit risk, and unrated reinsurers which are substantially collateralized. The company had the benefit of $1.1 billion in the form of letters of credit or trust funds to fully or partially collateralize certain reinsurance assets. The company’s gross exposure to credit risk from its reinsurers increased during 2023, with reinsurance contract assets held of $10,887.7 at December 31, 2023 compared to $9,691.5 at December 31, 2022, primarily reflecting the consolidation of Gulf Insurance and increased business volumes. Liquidity Risk Liquidity risk is the potential for loss if the company is unable to meet financial commitments in a timely manner at reasonable cost as they fall due. The company’s cash flows in the near term may be impacted by the need to provide capital to support growth in the insurance and reinsurance companies in a favourable pricing environment and to support fluctuations in their investment portfolios. The company’s policy is to ensure that sufficient liquid assets are available to meet financial commitments, including liabilities to policyholders and debt holders, dividends on preferred shares and investment |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2023 | |
Segmented Information | |
Segmented Information | 23. Segmented Information The company is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management. Reporting segments Property and Casualty Insurance and Reinsurance North American Insurers Global Insurers and Reinsurers International Insurers and Reinsurers Life insurance and Run-off This reporting segment is comprised of the life insurance operations of Eurolife and Gulf Insurance (consolidated on December 26, 2023 as described in note 21), and U.S. Run-off, which includes TIG Insurance Company. Non-insurance companies This category includes other operating segments as follows: Restaurants and retail – Fairfax India Thomas Cook India Other Segment performance Reporting segment revenue is principally evaluated using insurance revenue, a measure of gross underwriting activity. Profitability of reporting segments is evaluated using operating income (loss), a pre-tax performance measure of operations that is comprised of insurance service result and other insurance operating expenses of the insurance and reinsurance operations, and the revenue and expenses of the non-insurance companies. Also included are interest and dividends and share of profit (loss) of associates, which the company considers to be more predictable sources of investment income. Upon adoption of IFRS 17 the company determined that its measures of segment performance are as described above, and restated its 2022 segment results for those measures. Insurance revenue and operating income (loss) by reporting segment for the years ended December 31 were as follows: 2023 Property and Casualty Insurance and Reinsurance North Global International Life insurance Non- American Insurers and Insurers and and insurance Insurers Reinsurers Reinsurers Total Run-off companies Total Reporting segment insurance revenue 8,137.2 15,600.3 3,453.8 27,191.3 149.9 — 27,341.2 Intercompany insurance revenue (59.5) (120.1) (212.4) (392.0) (14.4) — (406.4) Insurance revenue 8,077.7 15,480.2 3,241.4 26,799.3 135.5 — 26,934.8 Insurance service result 977.1 2,828.0 330.8 4,135.9 (179.5) — 3,956.4 Other insurance operating expenses (280.8) (360.4) (180.9) (822.1) (144.3) — (966.4) Interest and dividends (1) 443.3 1,031.1 180.3 1,654.7 103.0 (76.1) 1,681.6 Share of profit of associates 165.1 469.2 127.3 761.6 76.2 152.2 990.0 Non-insurance revenue — — — — — 6,614.5 6,614.5 Non-insurance expenses — — — — — (6,568.7) (6,568.7) Operating income (loss) 1,304.7 3,967.9 457.5 5,730.1 (144.6) 121.9 5,707.4 Net finance expense from insurance contracts and reinsurance contract assets held (1,605.6) Net gains on investments 1,949.5 Gain on sale and consolidation of insurance subsidiaries (note 21) 549.8 Interest expense (510.0) Corporate overhead and other (2) (182.8) Pre-tax income 5,908.3 Provision for income taxes (813.4) Net earnings 5,094.9 Attributable to: Shareholders of Fairfax 4,381.8 Non-controlling interests 713.1 5,094.9 2022 Restated Property and Casualty Insurance and Reinsurance North Global International Life insurance Non- American Insurers and Insurers and and insurance Insurers Reinsurers Reinsurers Total Run-off companies Total Reporting segment insurance revenue 7,260.6 14,790.2 2,852.1 24,902.9 139.8 — 25,042.7 Intercompany insurance revenue (45.9) (96.8) (196.5) (339.2) — — (339.2) Insurance revenue 7,214.7 14,693.4 2,655.6 24,563.7 139.8 — 24,703.5 Insurance service result 964.0 1,886.7 230.2 3,080.9 (80.0) — 3,000.9 Other insurance operating expenses (262.3) (293.9) (145.6) (701.8) 45.4 — (656.4) Interest and dividends (1) 234.0 413.3 98.8 746.1 55.6 26.6 828.3 Share of profit of associates 239.8 429.3 52.4 721.5 56.4 134.0 911.9 Non-insurance revenue — — — — — 5,581.6 5,581.6 Non-insurance expenses — — — — — (5,520.9) (5,520.9) Operating income 1,175.5 2,435.4 235.8 3,846.7 77.4 221.3 4,145.4 Net finance income from insurance contracts and reinsurance contract assets held 1,617.3 Net losses on investments (1,573.2) Gain on sale and consolidation of insurance subsidiaries (note 21) 1,219.7 Interest expense (452.8) Corporate overhead and other (2) (52.2) Pre-tax income 4,904.2 Provision for income taxes (1,092.5) Net earnings 3,811.7 Attributable to: Shareholders of Fairfax 3,374.2 Non-controlling interests 437.5 3,811.7 (1) Presented net of investment management and administration fees paid to the holding company. These intercompany fees are eliminated in corporate overhead and other as shown in the footnote below. (2) Comprised principally of the expenses of the group holding companies, net of investment management and administration fees earned by the holding company, interest and dividends earned on holding company cash and investments and holding company share of profit of associates, as shown below. 2023 2022 Corporate overhead as presented in the consolidated statements of earnings 430.2 296.7 Holding company interest and dividends 31.0 (9.6) Holding company share of profit of associates (32.2) (110.5) Investment management and administration fee income and other (246.2) (124.4) Corporate overhead and other as presented in the tables above 182.8 52.2 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 2023 2022 2023 2022 2023 2022 2023 2022 Restated Restated Restated Property and Casualty Insurance and Reinsurance North American Insurers 1,136.3 1,217.7 — — 18,133.1 16,323.1 10,831.0 9,807.4 Global Insurers and Reinsurers 3,337.7 2,893.3 — — 46,713.3 41,720.6 30,233.2 27,525.2 International Insurers and Reinsurers 845.6 592.0 343.4 — 12,648.3 7,662.1 6,192.1 3,656.6 5,319.6 4,703.0 343.4 — 77,494.7 65,705.8 47,256.3 40,989.2 Life insurance and Run-off 429.5 348.1 — 0.4 6,541.9 5,928.5 5,448.1 4,927.6 Non-insurance companies 1,460.6 1,378.5 12.4 151.6 9,049.6 8,611.4 5,012.5 4,820.6 Holding company and eliminations and adjustments 827.6 1,006.1 — — (1,101.1) (1,427.2) 6,567.3 5,062.4 Consolidated 8,037.3 7,435.7 355.8 152.0 91,985.1 78,818.5 64,284.2 55,799.8 Product Line Insurance revenue on a third party basis by product line for the years ended December 31 were as follows: Property Casualty Specialty Total 2023 2022 2023 2022 2023 2022 2023 2022 Property and Casualty Insurance and Reinsurance North American Insurers 2,001.5 1,712.8 5,634.6 5,078.7 441.6 423.2 8,077.7 7,214.7 Global Insurers and Reinsurers 5,848.2 5,239.6 8,561.7 8,516.3 1,070.3 937.5 15,480.2 14,693.4 International Insurers and Reinsurers 1,893.5 1,534.1 738.9 640.0 609.0 481.5 3,241.4 2,655.6 9,743.2 8,486.5 14,935.2 14,235.0 2,120.9 1,842.2 26,799.3 24,563.7 Life insurance and Run-off — — 13.2 21.4 122.3 118.4 135.5 139.8 Insurance revenue 9,743.2 8,486.5 14,948.4 14,256.4 2,243.2 1,960.6 26,934.8 24,703.5 Distribution of insurance revenue 36.2 % 34.4 % 55.5 % 57.7 % 8.3 % 7.9 % 100.0 % 100.0 % Geographic Region Insurance revenue on a third party basis by geographic region for the years ended December 31 were as follows: Canada United States Asia (1) International (2) Total 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Property and Casualty Insurance and Reinsurance North American Insurers 2,287.1 2,162.0 5,760.3 5,025.2 1.4 1.8 28.9 25.7 8,077.7 7,214.7 Global Insurers and Reinsurers 485.4 482.2 11,148.1 10,879.8 963.2 881.3 2,883.5 2,450.1 15,480.2 14,693.4 International Insurers and Reinsurers 0.2 — 1.1 4.8 994.0 703.4 2,246.1 1,947.4 3,241.4 2,655.6 2,772.7 2,644.2 16,909.5 15,909.8 1,958.6 1,586.5 5,158.5 4,423.2 26,799.3 24,563.7 Life insurance and Run-off — — 13.2 21.4 — — 122.3 118.4 135.5 139.8 Insurance revenue 2,772.7 2,644.2 16,922.7 15,931.2 1,958.6 1,586.5 5,280.8 4,541.6 26,934.8 24,703.5 Distribution of insurance revenue 10.3 % 10.7 % 62.8 % 64.5 % 7.3 % 6.4 % 19.6 % 18.4 % 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 South Korea, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe, Africa and Oceania. 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 (3) Total 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Revenue 1,772.3 1,710.3 263.3 216.7 941.6 611.0 3,637.3 3,043.6 6,614.5 5,581.6 Expenses (1,690.7) (1,582.2) (251.4) (208.1) (906.5) (600.8) (3,720.1) (3,129.8) (6,568.7) (5,520.9) Pre-tax income (loss) before interest expense and other (4) 81.6 128.1 11.9 8.6 35.1 10.2 (82.8) (86.2) 45.8 60.7 Interest and dividends 9.9 9.9 (87.4) 21.4 — — 1.4 (4.7) (76.1) 26.6 Share of profit (loss) of associates — (0.1) 151.1 132.0 (0.1) 0.3 1.2 1.8 152.2 134.0 Operating income (loss) 91.5 137.9 75.6 162.0 35.0 10.5 (80.2) (89.1) 121.9 221.3 (1) These results differ from those published by Fairfax India primarily due to Fairfax India’s application of investment entity accounting under IFRS Accounting Standards. (2) These results differ from those published by Thomas Cook India primarily due to differences between IFRS Accounting Standards and Ind AS, and acquisition accounting adjustments. (3) Included in Expenses is a non-cash goodwill impairment charge recognized on Farmers Edge of $63.5 (2022 - $133.4 ). (4) 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, 2023 and 2022 present the assets, liabilities and non-controlling interests of each reporting segment 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. In the table below, the company’s three property and casualty insurance and reinsurance reporting segments have been presented in aggregate, and affiliated insurance and reinsurance balances are not shown separately and are eliminated in “Corporate and eliminations”. December 31, 2023 December 31, 2022 Restated Property Property and and casualty Life casualty Life insurance and insurance Non- Corporate insurance and insurance Non- Corporate reinsurance and insurance and reinsurance and insurance and companies Run-off companies eliminations (3) Consolidated companies Run-off companies eliminations (3) Consolidated Assets Holding company cash and investments 270.9 — — 1,510.7 1,781.6 316.6 — — 1,029.2 1,345.8 Insurance contract receivables 915.3 10.8 — — 926.1 636.2 12.7 — — 648.9 Portfolio investments (1) 58,180.0 4,318.0 2,496.5 (1,572.4) 63,422.1 49,038.8 4,275.4 2,119.3 (1,108.8) 54,324.7 Reinsurance contract assets held 11,373.4 454.3 — (940.0) 10,887.7 10,310.9 413.4 — (1,032.8) 9,691.5 Deferred income tax assets 17.8 1.3 54.1 227.9 301.1 (40.6) (6.4) 54.5 129.8 137.3 Goodwill and intangible assets 4,245.7 8.4 2,121.6 0.6 6,376.3 3,396.8 7.5 2,284.4 0.3 5,689.0 Due from affiliates 250.8 338.8 — (589.6) — 206.3 364.1 — (570.4) — Other assets 2,059.8 1,394.8 4,377.4 458.2 8,290.2 1,673.7 832.5 4,153.2 321.9 6,981.3 Investments in Fairfax insurance and reinsurance affiliates (2) 181.0 15.5 — (196.5) — 167.1 29.3 — (196.4) — Total assets 77,494.7 6,541.9 9,049.6 (1,101.1) 91,985.1 65,705.8 5,928.5 8,611.4 (1,427.2) 78,818.5 Liabilities Accounts payable and accrued liabilities 2,083.7 257.6 2,625.6 520.3 5,487.2 1,901.8 257.6 2,430.7 216.5 4,806.6 Derivative obligations 351.4 — 61.0 32.5 444.9 113.5 — 58.2 19.3 191.0 Deferred income tax liabilities 672.5 69.6 274.2 234.0 1,250.3 516.7 43.2 252.4 55.7 868.0 Insurance contract payables 553.5 653.4 — — 1,206.9 785.4 617.3 — — 1,402.7 Insurance contract liabilities 42,649.9 4,466.7 — (945.2) 46,171.4 36,921.3 4,009.2 — (1,023.9) 39,906.6 Due to affiliates 49.7 0.8 159.9 (210.4) — 17.1 0.3 82.4 (99.8) — Borrowings - holding company and insurance and reinsurance companies 895.6 — — 6,928.9 7,824.5 733.4 — — 5,887.6 6,621.0 Borrowings - non-insurance companies — — 1,891.8 7.2 1,899.0 — — 1,996.9 7.0 2,003.9 Total liabilities 47,256.3 5,448.1 5,012.5 6,567.3 64,284.2 40,989.2 4,927.6 4,820.6 5,062.4 55,799.8 Equity Shareholders’ equity attributable to shareholders of Fairfax 27,134.9 1,081.5 2,402.5 (7,668.4) 22,950.5 22,504.1 1,000.9 2,100.4 (6,489.6) 19,115.8 Non-controlling interests 3,103.5 12.3 1,634.6 — 4,750.4 2,212.5 — 1,690.4 — 3,902.9 Total equity 30,238.4 1,093.8 4,037.1 (7,668.4) 27,700.9 24,716.6 1,000.9 3,790.8 (6,489.6) 23,018.7 Total liabilities and total equity 77,494.7 6,541.9 9,049.6 (1,101.1) 91,985.1 65,705.8 5,928.5 8,611.4 (1,427.2) 78,818.5 (1) Includes intercompany investments in Fairfax non-insurance subsidiaries carried at cost that are eliminated on consolidation. (2) Intercompany investments in Fairfax insurance and reinsurance subsidiaries carried at cost that are eliminated on consolidation. (3) 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 affiliated primary insurers. |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Expenses | |
Expenses | 24. Expenses Expenses for the company’s insurance and reinsurance companies and non-insurance companies for the years ended December 31 were comprised as follows: Year ended December 31, 2023 Non-insurance Insurance and reinsurance companies (1) companies Total Non-directly attributable Directly attributable expenses expenses Total expenses of insurance Insurance Total directly Other and acquisition Other attributable operating reinsurance Non-insurance cash flows expenses expenses expenses companies expenses Losses on claims, net (2) — 11,992.5 11,992.5 — 11,992.5 — 11,992.5 Premium taxes 276.0 — 276.0 — 276.0 — 276.0 Commissions 3,582.7 — 3,582.7 — 3,582.7 — 3,582.7 Cost of sales — — — — — 4,059.6 4,059.6 Compensation expense 586.3 863.5 1,449.8 772.7 2,222.5 1,120.4 3,342.9 Administrative expense and other 297.2 402.2 699.4 623.9 1,323.3 1,388.7 2,712.0 Total 4,742.2 13,258.2 18,000.4 1,396.6 19,397.0 6,568.7 25,965.7 As presented in the consolidated statement of earnings: Insurance service expenses 4,742.2 17,201.9 21,944.1 — 21,944.1 — 21,944.1 Recoveries of insurance service expenses — (3,943.7) (3,943.7) — (3,943.7) — (3,943.7) Other insurance operating expenses and Corporate and other expenses — — — 1,396.6 1,396.6 — 1,396.6 Non-insurance expenses — — — — — 6,568.7 6,568.7 Total 4,742.2 13,258.2 18,000.4 1,396.6 19,397.0 6,568.7 25,965.7 Year ended December 31, 2022 Restated Non-insurance Insurance and reinsurance companies (1) companies Total Non-directly attributable Directly attributable expenses expenses Total expenses of insurance Insurance Total directly Other and acquisition Other attributable operating reinsurance Non-insurance cash flows expenses expenses expenses companies expenses Losses on claims, net (2) — 11,629.7 11,629.7 — 11,629.7 — 11,629.7 Premium taxes 252.7 — 252.7 — 252.7 — 252.7 Commissions 3,234.5 — 3,234.5 — 3,234.5 — 3,234.5 Cost of sales — — — — — 3,349.4 3,349.4 Compensation expense 605.7 843.2 1,448.9 656.7 2,105.6 1,023.8 3,129.4 Administrative expense and other 273.6 353.5 627.1 296.4 923.5 1,147.7 2,071.2 Total 4,366.5 12,826.4 17,192.9 953.1 18,146.0 5,520.9 23,666.9 As presented in the consolidated statement of earnings: Insurance service expenses 4,366.5 16,100.8 20,467.3 — 20,467.3 — 20,467.3 Recoveries of insurance service expenses — (3,274.4) (3,274.4) — (3,274.4) — (3,274.4) Other insurance operating expenses and Corporate and other expenses — — — 953.1 953.1 — 953.1 Non-insurance expenses — — — — — 5,520.9 5,520.9 Total 4,366.5 12,826.4 17,192.9 953.1 18,146.0 5,520.9 23,666.9 (1) Includes Life insurance and Run-off, and the group holding companies . (2) Includes the effects of discounting and changes in the risk adjustment. |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Cash Flow Information | |
Supplementary Cash Flow Information | 25. 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, 2023 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 81.4 325.4 406.8 — — — 81.4 325.4 406.8 Holding company assets pledged for derivative obligations — 2.5 2.5 — — — — 2.5 2.5 Subsidiary cash and short term investments 2,172.9 2,347.3 4,520.2 188.1 448.9 637.0 2,361.0 2,796.2 5,157.2 Fairfax India 179.4 12.5 191.9 0.2 5.1 5.3 179.6 17.6 197.2 2,433.7 2,687.7 5,121.4 188.3 454.0 642.3 2,622.0 3,141.7 5,763.7 December 31, 2022 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 72.7 479.4 552.1 — — — 72.7 479.4 552.1 Holding company assets pledged for derivative obligations — 40.6 40.6 — — — — 40.6 40.6 Subsidiary cash and short term investments 3,243.3 2,105.6 5,348.9 500.8 353.6 854.4 3,744.1 2,459.2 6,203.3 Fairfax India 34.5 143.5 178.0 0.8 6.0 6.8 35.3 149.5 184.8 3,350.5 2,769.1 6,119.6 501.6 359.6 861.2 3,852.1 3,128.7 6,980.8 Details of certain cash flows included in the consolidated statement of cash flows for the years ended December 31 were as follows: 2023 2022 Restated Net (purchases) sales of investments classified at FVTPL Short term investments 1,592.6 6,352.5 Bonds (5,910.6) (16,016.2) Preferred stocks (135.1) (293.2) Common stocks (1,000.6) (63.6) Net derivatives and other invested assets (45.4) 380.3 (5,499.1) (9,640.2) Changes in operating assets and liabilities Net decrease in restricted cash and cash equivalents 250.4 393.7 Insurance contract receivables (282.4) (1.6) Reinsurance contract assets held (723.0) 45.7 Insurance contract payables (301.5) (270.5) Insurance contract liabilities 4,286.1 994.3 Other receivables (270.9) (348.0) Accounts payable and accrued liabilities 541.2 326.1 Other (423.6) (337.2) 3,076.3 802.5 Net interest and dividends received Interest and dividends received 1,595.1 1,030.8 Interest paid on borrowings (428.1) (360.5) Interest paid on lease liabilities (54.8) (48.1) 1,112.2 622.2 Net income taxes paid (713.9) (416.4) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | 26. 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: 2023 2022 Salaries and other short-term employee benefits 14.5 10.2 Share-based payments 7.3 5.7 21.8 15.9 Compensation for the company’s Board of Directors for the years ended December 31 was as follows: 2023 2022 Retainers and fees 1.4 1.7 Share-based payments 0.2 0.3 1.6 2.0 Transactions with subsidiaries Fairfax India Performance Fee Receivable At December 31, 2023 the holding company had a performance fee receivable of $110.2 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. The company elected to receive the performance fee payable in cash and expects receipt of payment within the first six months of 2024. |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Subsidiaries | |
Subsidiaries | 27 . The company’s principal operating subsidiaries are presented in the tables below. During 2023 the company consolidated Gulf Insurance as described in note 21. 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, 2023 Domicile shown below) Property and casualty insurance and reinsurance North American Insurers Northbridge Financial Corporation (Northbridge) Canada Crum & Forster Holdings Corp. (Crum & Forster) United States Zenith National Insurance Corp. (Zenith National) United States Global Insurers and Reinsurers Odyssey Group Holdings, Inc. (Odyssey Group) United States 90.0 % Brit Limited (Brit) England and Wales 86.2 % Allied World Assurance Company Holdings, Ltd (Allied World) Bermuda 83.4 % International Insurers and Reinsurers 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 % Gulf Insurance Group K.S.C.P. (Gulf Insurance) Kuwait 90.0 % 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 % The Falcon Insurance Public Company Limited (Falcon Thailand) Thailand 96.7 % 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, 2023 Domicile ownership Primary business Non-insurance companies Restaurants and retail Recipe Unlimited Corporation (Recipe) Canada 84.0 % Franchisor, owner and operator of restaurants Sporting Life Group Limited (Sporting Life Group) Canada 88.5 % Canadian sports lifestyle retail organization Fairfax India Fairfax India Holdings Corporation (Fairfax India) Canada 42.5 % (1) Invests in public and private Indian businesses Thomas Cook India Thomas Cook (India) Limited (Thomas Cook India), which owns: India 64.6 % Provider of integrated travel and travel-related financial services 100.0% of Sterling Holiday Resorts Limited (Sterling Resorts) India 64.6 % Owner and operator of holiday resorts Other AGT Food and Ingredients Inc. (AGT) Canada 59.6 % Originator, processor and distributor of value-added pulses and staple foods Dexterra Group Inc. (Dexterra Group) Canada 49.3 % (2) Provider of Infrastructure support services Boat Rocker Media Inc. (Boat Rocker) Canada 44.9 % (3) Entertainment content creator, producer and distributor Farmers Edge Inc. (Farmers Edge) Canada 61.2 % Provider of advanced digital tools for agriculture Grivalia Hospitality S.A. (Grivalia Hospitality) Greece 85.2 % Hospitality real estate investor, developer and manager (1) The company owns multiple voting shares and subordinate voting shares of Fairfax India that give it voting rights of 95.2 %. (2) The company has de facto voting control of Dexterra Group as its largest equity and voting shareholder. (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 Material Accountin_2
Summary of Material Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Material Accounting Policies | |
Consolidation | Consolidation Subsidiaries The consolidated financial statements were prepared as of December 31, 2023 and 2022 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 27. 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 other insurance operating expenses, non-insurance expenses or corporate and 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 or in gain on consolidation of insurance subsidiaries 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 other insurance operating expenses or non-insurance 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 investment 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 contracts, 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, third party broker-dealers and industry experts 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 |
Insurance contracts and reinsurance contract assets held | Insurance contracts and reinsurance contract assets held Definition and classification Insurance contracts - Reinsurance contract assets held - Insurance contracts acquired in a transfer or in a business combination - Unit of account and recognition - Insurance contracts are recognized from the earliest of: the beginning of the insurance contract’s coverage period; when payment from the policyholder becomes due or, if there is no contractual due date, when it is received; and when a contract is onerous. Reinsurance contract assets held that provide proportionate reinsurance coverage are recognized from the later of: the beginning of the reinsurance contract’s coverage period; and when underlying insurance contracts are initially recognized. Reinsurance contract assets held that do not provide proportionate reinsurance coverage are recognized at the beginning of the coverage period for the reinsurance contract unless the company recognizes onerous insurance contracts at an earlier date which are reinsured and the related reinsurance contract was entered into prior to the onerous contract being recognized, in which case the reinsurance contract assets held are recognized at the date the onerous groups of underlying insurance contracts are recognized. When insurance and reinsurance contract assets held are recognized, they are added to an existing group of contracts where possible. If the insurance contract cannot be added to an existing group based on the criteria set out above, a new group is formed. Groups of contracts are established on initial recognition and their composition is not revised once all contracts have been added to the group. For insurance contracts acquired with incurred claims and remaining coverage, the company is considered to have issued a new, separate insurance contract with two coverages: coverage for claims events that have yet to occur and coverage for the development of claims events that have already occurred. For acquired contracts in their settlement period which are fully earned, the company is considered to have issued an adverse development cover for the acquired claim liability. These types of insurance contracts are accounted for as if they were entered into at the date of acquisition or transfer. Measurement The company measures its insurance contracts and reinsurance contract assets held, depending on the types of contracts written, using principally two models: Premium Allocation Approach (“PAA”) and to a lesser extent the General Measurement Model (“GMM”), primarily at its life and run - off operations. Short - duration contracts where there is no significant variability in cash flows are primarily measured using the PAA, while long - duration contracts, which often include acquired contracts, are primarily measured using the GMM. The principles for initial and subsequent measurement when applying the GMM or the PAA are applicable to both property and casualty and life insurance contracts. The measurement components are: Contract boundary Fulfillment cash flows within the contract boundary - There are two types of directly attributable costs that are included in the contract boundary: Acquisition costs Other costs that are incurred in fulfilling insurance contracts - Contracts measured under the Premium Allocation Approach The company uses the PAA for measuring all insurance and reinsurance contract assets held which are eligible for the simplified methodology. Insurance and reinsurance contract assets held are eligible when the coverage period of each contract in the group is one year or less or the company reasonably expects that the resulting measurement of the liability for remaining coverage (“LRC”) would not differ materially from that of applying the GMM. When comparing the different possible measurements, the company considers the impact of different release patterns of the LRC to the consolidated statement of earnings, the impact of discounting and financial risks, and whether significant variability in the cash flows exists. Insurance contracts Initial measurement - If there are indications that a group of insurance contracts is onerous, then the company recognizes a loss in insurance service expense in the consolidated statement of earnings and increases the LRC if the current estimates of the fulfillment cash flows that relate to remaining coverage exceed the carrying amount of the LRC. This excess is recognized as a loss component within the LRC, which is reported in insurance contract liabilities on the consolidated balance sheet. Subsequent measurement - The LIC includes the fulfillment cash flows for losses on claims and expenses that have not yet been paid, including claims that have been incurred but not reported (“IBNR”). It reflects both a risk adjustment for non - financial risk and the time value of money as most of the company’s insurance contracts issued and measured under the PAA typically have a settlement period of over one year. In each reporting period, the company remeasures the loss component using the same calculation as on initial recognition and reflects any changes by adjusting the loss component as required until the loss component is reduced to zero, with such adjustments recognized in insurance service expenses. If a loss component did not exist on initial recognition but there are indications that a group of contracts is onerous on subsequent measurement, then the company establishes the loss component using the same methodology as on initial recognition. Reinsurance contract assets held Initial measurement - When there is an onerous group of underlying contracts, a loss - recovery component is created for the group of reinsurance contract assets held which adjusts the ARC, and determines the amounts that are subsequently presented in the consolidated statement of earnings within net reinsurance result as reversals of recoveries of losses and removed from the cost of reinsurance. Subsequent measurement - For contracts measured under the PAA, the asset for incurred claims is measured consistent with the asset for incurred claims under the GMM and reflects a risk adjustment for non - financial risk and the time value of money as most of the company’s reinsurance contract assets held and measured under the PAA typically have a settlement period of over one year. If a loss - recovery component exists, it is adjusted on subsequent measurement to reflect changes in the loss component of the onerous group of underlying contracts to the extent that it impacts reinsured cash flows, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the company expects to recover from the reinsurance contract assets held. Contracts measured under the General Measurement Model Insurance contracts Initial measurement - The risk adjustment for non - financial risk for a group of insurance contracts, determined separately from the other estimates, reflects the compensation required for bearing uncertainty about the amount and timing of the cash flows that arise from non - financial risk. For insurance contracts issued, the portion of the risk adjustment for non - financial risk relating to the LRC is recognized in insurance revenue as the risk is released, while the portion relating to the LIC is recognized in insurance service expenses. The entire change in the risk adjustment is therefore included within the insurance service result in the consolidated statement of earnings. The significant judgments used in determining the risk adjustment are further described in note 4. The CSM on initial recognition of a group of insurance contracts is recognized as the net inflow of the total of fulfillment cash flows and any amount arising from the derecognition of any assets or liabilities previously recognized for cash flows related to the group (including assets for insurance acquisition cash flows). If the fulfillment cash flows are a net outflow, then the group of insurance contracts is onerous and the net outflow is recognized as a loss within insurance service expense in the consolidated statement of earnings and as a loss component within the LRC on the consolidated balance sheet to represent the amount of the net cash outflow, which determines the amounts that are subsequently presented within insurance revenue and insurance service expense. Subsequent measurement The fulfillment cash flows of groups of insurance contracts are measured at the reporting date using current estimates of future cash flows, current discount rates and current estimates of the risk adjustment for non - financial risk. Changes in expected fulfillment cash flows which relate to future services adjust the CSM or are recognized in the consolidated statement of earnings if there is a loss component or no CSM. Changes in fulfillment cash flows which relate to current or past services are recognized in the consolidated statement of earnings. Any changes from the effects of the time value of money or financial risk are recognized within net finance income (expense) from insurance contracts in the consolidated statement of earnings. The CSM of each group of contracts is adjusted to reflect changes in unearned profit, including from new contracts, interest accretion on the CSM, assumption changes related to future service that impact the fulfillment cash flows, effects of currency exchange differences on the CSM, and CSM recognized in revenue for services provided in the reporting period. If a loss component exists, when there are changes to the fulfillment cash flows within the LRC, they are allocated between the loss component and the LRC excluding the loss component on a systematic basis. The systematic basis is determined by the proportion of the loss component relative to the total estimate of the present value of the future cash outflows plus the risk adjustment for nonfinancial risk at the beginning of each year (or on initial recognition if a group of contracts is initially recognized in the year). Decreases in future fulfillment cash flows reduce the remaining loss component and reinstate the CSM after the loss component is reduced to zero, and conversely, increases in future fulfillment cash flows increase the loss component with changes in the loss component recognized within insurance service expense in the consolidated statement of earnings. The company applies the systematic allocation first before increases and decreases to the loss component related to future service in each reporting period. Insurance finance income or expense will be allocated to the loss component as part of the systematic allocation at current rates. Reinsurance contract assets held Initial measurement - The company measures the estimates of the present value of future cash flows using assumptions that are consistent with those used to measure the estimates of the present value of future cash flows for the underlying insurance contracts, with an adjustment for any risk of non - performance by the reinsurer which represents losses from disputes or credit risk. The company does not recognize any insurance acquisition cash flows for reinsurance contract assets held. The risk adjustment for non - financial risk is the amount of risk being transferred by the company to the reinsurer and is calculated by determining these amounts on a gross and net of reinsurance basis, with the difference representing the amounts transferred. The significant judgments used in determining the risk adjustment are further described in note 4. The company adjusts the CSM of the group of reinsurance contracts and recognizes a loss - recovery component on initial recognition of onerous underlying contracts, if the reinsurance contract is entered into before or at the same time as the onerous underlying contracts are recognized. The adjustment to the CSM is determined by multiplying the amount of the loss that relates to the underlying contracts and the expected percentage of claims recovery on the underlying contracts. A loss - recovery component is created for the group of reinsurance contract assets held which adjusts the CSM, and determines the amounts that are subsequently presented in the consolidated statement of earnings within net reinsurance result as reversals of recoveries of losses and removed from the cost of reinsurance. For reinsurance contract assets held acquired in a transfer of contracts or a business combination covering onerous underlying contracts, the adjustment to the CSM is determined using the same calculation, except it is calculated at the date of acquisition. For reinsurance contract assets held acquired in a business combination, the adjustment to the CSM reduces goodwill or increases a gain on a bargain purchase. Subsequent measurement - The CSM of each group of reinsurance contract assets held is adjusted to reflect changes to fulfillment cash flows, including from new contracts, assumption changes, and the amounts recognized in the consolidated statement of earnings from services received in the reporting period. For changes in fulfilment cash flows which result from changes in the fulfillment cash flows of the underlying insurance contracts which do not adjust the CSM, these changes are recognized immediately within the consolidated statement of earnings. If a loss - recovery component exists, it is adjusted on subsequent measurement to reflect changes in the loss component of the onerous group of underlying contracts to the extent that it impacts reinsured cash flows, but it cannot exceed the portion of the loss component of the onerous group of underlying contracts that the company expects to recover from the reinsurance contract assets held. Insurance contracts acquired in a transfer or in a business combination Initial measurement Subsequent measurement Derecognition and contract modification An insurance contract is derecognized when it is extinguished, i.e. when the specified obligations in the contract expire or are discharged or cancelled. An insurance contract is also derecognized if its terms are modified in a way that would have significantly changed the accounting for the contract had the new terms always existed, in which case a new contract based on the modified terms is recognized. If an insurance contract modification does not result in derecognition, then the changes in cash flows caused by the modification are treated as changes in estimates of fulfillment cash flows. Presentation Any assets or liabilities recognized for cash flows arising before the recognition of the related group of contracts (including any assets for insurance acquisition cash flows) are included in the carrying amount of the related portfolios of contracts (see note 8). Amounts recognized in the consolidated statement of earnings for insurance contracts are disaggregated into (i) an insurance service result, comprised of insurance revenue and insurance service expenses (“net insurance result”), (ii) cost of reinsurance and recoveries of insurance service expense (“net reinsurance result”), and (iii) net finance income or expenses from insurance contracts. Changes in the risk adjustment for non-financial risk are not disaggregated between the insurance service result and net finance income or expenses from insurance contracts. All changes in the risk adjustment for non-financial risk are included in the insurance service result in the consolidated statement of earnings. Consolidated Statement of Earnings Insurance revenue Contracts measured under the PAA For contracts measured under the PAA, the company recognizes insurance revenue based on the expected premium receipts and the passage of time over the coverage period of a group of contracts unless the release of risk differs significantly from the passage of time, such as with certain acquired contracts. In those instances insurance revenue is recognized based on the release of risk. Contracts measured under the GMM Insurance revenue is recognized over the coverage terms of the underlying policies in accordance with the level of protection provided, which is represented by the total of the changes in the LRC for which consideration is expected, comprised of the following: ● a release of the CSM, measured based on services provided as described below; ● changes in the risk adjustment for non - financial risk relating to current services; ● claims and other insurance service expenses incurred in the period, measured at the amounts expected at the beginning of the year; ● insurance revenue would be reduced by systematic allocations to the loss component for changes in risk adjustment and incurred claims and other insurance service expenses; ● amortization of insurance acquisition cash flows; and ● other amounts, including premium experience adjustments related to current or past service. The amount of the CSM that is recognized as insurance revenue in each period is determined by calculating the amount of insurance services provided in the current period compared to future periods over the expected coverage period. The expected coverage period reflects the coverage term and expectations of insured events occurring to the extent that they affect the expected coverage period. Insurance service expense Insurance service expenses arising from insurance contracts are recognized in the consolidated statement of earnings as they are incurred and include losses on claims, other insurance service expenses, amortization of insurance acquisition costs, losses and reversals of losses on onerous contracts, and impairment losses and reversals of those impairment losses on insurance acquisition cash flow assets. Net reinsurance result Net reinsurance result comprises the cost of reinsurance less recoveries of insurance service expenses from reinsurers. The cost of reinsurance is recognized in the consolidated statement of earnings as services are received from the reinsurer over the coverage period. Recoveries of insurance service expenses from reinsurers are recognized in the consolidated statement of earnings as claims and other insurance service expenses are recovered, including any changes in expectations for these amounts, and recoveries and reversals of recoveries of the loss - recovery component. The establishment of the loss - recovery component and subsequent increases or decreases in the loss - recovery component related to future service are presented in net reinsurance result. Net finance income or expense from insurance contracts and reinsurance contract assets held Net finance income or expense from insurance contracts and reinsurance contract assets held as presented in the consolidated statement of earnings are principally comprised of changes in the carrying amounts of insurance and reinsurance contracts arising from the effects of the time value of money. The sources of the insurance finance income and expense arise from the effects of discounting the fulfillment cash flows within the ARC and LRC under the GMM and the AIC and LIC under all measurement models at current rates; discounting the ARC and LRC under the PAA where a significant financing component exists and accreting interest on the CSM at locked-in rates. Insurance contract receivables and payables Insurance contract receivables and payables primarily consist of amounts owing from and to agents, brokers, third party administrators and other intermediaries that are not directly attributable to a specific group of insurance or reinsurance contracts. Foreign currency transactions in insurance contracts and reinsurance contract assets held Foreign currency transactions within groups of insurance contracts and reinsurance contract assets held are accounted for using a multi-currency approach whereby each group’s underlying cash flows are accounted for in their transactional currencies and each group of contracts, including a group’s CSM, is considered a monetary item. As a result, the underlying currencies within a group are translated at the end of a reporting period into the company's functional currency at period-end exchange rates. Foreign exchange gains and losses resulting from the settlement or from the translation at period-end exchange rates of the underlying currencies within a group of insurance contracts or reinsurance contract assets held are recognized in the consolidated statement of earnings in net gains (losses) on investments. |
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 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 non - insurance revenue, and direct expenses in non - insurance expenses. |
Non - insurance revenue | Non - insurance revenue Non - insurance 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 non-insurance revenue 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. |
Non - insurance expenses | Non - insurance expenses Non - insurance expenses is primarily comprised of the cost of inventories sold or services provided and the operating expenses of the non-insurance companies. |
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. |
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 |
New accounting pronouncements adopted in 2023 | New accounting pronouncements adopted in 2023 IFRS 17 Insurance Contracts (“IFRS 17”) IFRS 17, a comprehensive standard for the recognition, measurement, presentation and disclosure of insurance contracts, was adopted by the company on January 1, 2023. The standard requires entities to measure insurance contracts using current estimates of fulfillment cash flows, which include all future cash flows associated with insurance contracts, under one of three measurement models, of which the company principally uses two as discussed above. The company primarily underwrites commercial property, casualty, and specialty risks including treaty and facultative reinsurance. The company, through Eurolife, also writes life, disability, accident, health and critical illness insurance in addition to offering investment related products. Impact of Transition Under the transitional provisions of IFRS 17, the cumulative effect of initially applying IFRS 17 was an increase to common shareholders’ equity of $150.2, which was recognized as an adjustment to retained earnings in the opening consolidated balance sheet as at January 1, 2022. Additionally, the prior year was restated as required, resulting in an increase to consolidated net earnings attributable to shareholders of Fairfax of $2,227.0 for the year ended December 31, 2022 and a cumulative increase to common shareholders’ equity of $2,439.6 at December 31, 2022. These adjustments are presented in the consolidated statements of changes in equity for the years ended December 31, 2023 and 2022 as applicable. The majority of the company’s insurance contracts issued and reinsurance contract assets held are measured using the PAA. The measurement principles using the PAA which differ from those under IFRS 4 primarily include: ● the discounting and the inclusion of a specific risk adjustment for non-financial risk for the provision for losses and loss adjustment expenses (previously included in insurance contract liabilities on the consolidated balance sheet), which are included within the LIC and AIC; ● the measurement of unearned premiums (previously included in insurance contract liabilities on the consolidated balance sheet) and deferred premium acquisition costs which are now measured as the actual cash flows of premiums received less insurance acquisition cash flows paid and are included net within the LRC and ARC; ● the netting of certain assumed ceding commission expenses with insurance revenue which were shown gross in the consolidated statement of earnings under IFRS 4; ● the netting of certain reinsurance ceded commission revenue with the cost of reinsurance which were shown gross in the consolidated statement of earnings under IFRS 4; and ● the inclusion of net insurance finance income or expense from insurance contracts issued and reinsurance contract assets held in the consolidated statement of earnings which represents the accretion of the effect of discounting and the changes in interest rates and other financial assumptions. The cumulative increases to common shareholders’ equity were comprised as follows: December 31, 2022 January 1, 2022 Common shareholders’ equity as previously reported 15,340.7 15,049.6 IFRS 17 adjustments: Discounting of provision for losses and loss adjustment expenses 4,668.7 1,536.9 Inclusion of a specific risk adjustment for non-financial risk for provision for losses and loss adjustment expenses (1,635.5) (1,421.8) Other measurement adjustments 375.8 106.7 Deferred income taxes (1) (726.1) (60.9) Non-controlling interests (243.3) (10.7) 2,439.6 150.2 Common shareholders’ equity as restated 17,780.3 15,199.8 (1) Principally reflects a net increase to deferred income tax liabilities due to the benefit of discounting provision for losses and loss adjustment expenses. The full retrospective approach was principally applied to identify, recognize and measure insurance contracts and reinsurance contract assets held on transition to IFRS 17 where practicable. Where impracticable, the modified retrospective approach was applied. Full retrospective approach (“FRA”) The company considered the FRA impracticable where effects of the retrospective application were not determinable or where hindsight was required to make assumptions on management’s intent in previous periods including estimating the amounts recognized, measured or disclosed in those periods. Considerations for impracticability included data limitations related to system changes and conversions, data retention, and data quality. The company determined that reasonable and supportable information was available for the majority of insurance contracts and reinsurance contract assets held, particularly those that are measured under the PAA. Where the FRA was determined to be impracticable, the modified retrospective approach was used and primarily related to certain long-duration contracts and acquired insurance contracts where the measurement models were those other than the PAA. Irrespective of the transition approach applied, the consequential amendments to IFRS 3 Business Combinations Consolidated statements of cash flows Other accounting pronouncements adopted in 2023 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) The amendments to IAS 12 Income Taxes Leases Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) The amendments to IAS 1 Presentation of Financial Statements Making Materiality Judgements Definition of Accounting Estimates (Amendments to IAS 8) The amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) On May 23, 2023 the IASB issued amendments to IAS 12 Income Taxes The holding company is resident in Canada. In August 2023, Canada released draft legislation in respect of certain aspects of Pillar Two for public consultation. Although it is intended for Canada’s principal Pillar Two rules to take effect on January 1, 2024, Canada has not yet enacted or substantively enacted Pillar Two legislation. Certain other jurisdictions in which the company operates, including the U.K., have enacted or substantively enacted Pillar Two legislation, certain aspects of which will generally be effective for the company for taxation years beginning on January 1, 2024. The company is in the process of assessing its potential exposure to Pillar Two in these jurisdictions. Based on the company’s preliminary assessment, having regard to the company’s 2023 financial information, the company does not expect that Pillar Two taxes in 2024 in these jurisdictions will have a material impact on the company’s consolidated financial statements. A number of jurisdictions are implementing, or considering the implementation of, new domestic tax regimes, or are planning to revise existing tax regimes, in response to the global Pillar Two tax initiative. In December 2023, Bermuda introduced a domestic corporate income tax of 15%, effective January 1, 2025. This is generally expected to result in an increase in the company’s liability for taxes in Bermuda and to reduce any Pillar Two top-up taxes payable by the company in respect of Bermuda. |
New accounting pronouncements issued but not yet effective | New accounting pronouncements issued but not yet effective The following new amendments have been issued by the IASB and were not yet effective for the fiscal year beginning January 1, 2023. The company does not expect to adopt them in advance of their effective dates. Classification of Liabilities as Current or Non-current (Amendments to IAS 1) On January 23, 2020 the IASB issued amendments to IAS 1 to clarify the criteria for classifying a liability as non-current. The amendments were to be applied retrospectively to annual periods beginning on or after January 1, 2023, however on October 31, 2022 the IASB deferred the effective date by one year to January 1, 2024. The company is currently evaluating the expected impact of the amendments on its consolidated financial statements. Non-current Liabilities with Covenants (Amendments to IAS 1) On October 31, 2022 the IASB issued amendments to IAS 1 Presentation of Financial Statements Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) On September 22, 2022 the IASB issued amendments to IFRS 16 Leases Revenue from Contracts with Customers Lack of Exchangeability (Amendments to IAS 21) On August 15, 2023 the IASB issued Lack of Exchangeability The Effects of Changes in Foreign Exchange Rates |
Summary of Material Accountin_3
Summary of Material Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Material Accounting Policies | |
Schedule of estimated useful lives of intangible assets | 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 |
Schedule of cumulative increases to common shareholders' equity | The cumulative increases to common shareholders’ equity were comprised as follows: December 31, 2022 January 1, 2022 Common shareholders’ equity as previously reported 15,340.7 15,049.6 IFRS 17 adjustments: Discounting of provision for losses and loss adjustment expenses 4,668.7 1,536.9 Inclusion of a specific risk adjustment for non-financial risk for provision for losses and loss adjustment expenses (1,635.5) (1,421.8) Other measurement adjustments 375.8 106.7 Deferred income taxes (1) (726.1) (60.9) Non-controlling interests (243.3) (10.7) 2,439.6 150.2 Common shareholders’ equity as restated 17,780.3 15,199.8 (1) Principally reflects a net increase to deferred income tax liabilities due to the benefit of discounting provision for losses and loss adjustment expenses. |
Critical Accounting Estimates_2
Critical Accounting Estimates and Judgments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Critical Accounting Estimates and Judgments | |
Summary of primary yield curves used to discount cash flows of insurance contracts and reinsurance contract assets held | The tables below set out the primary yield curves that were used to discount the cash flows of insurance contracts and reinsurance contract assets held for currencies in which the company’s insurance revenue is principally based. December 31, 2023 December 31, 2022 January 1, 2022 Currencies 1 year 5 years 10 years 15 years 1 year 5 years 10 years 15 years 1 year 5 years 10 years 15 years USD 5.00 % 4.57 % 4.70 % 4.81 % 5.57 % 4.90 % 5.16 % 4.99 % 0.49 % 1.77 % 2.28 % 2.28 % CAD 5.28 % 4.51 % 4.37 % 4.41 % 5.37 % 4.04 % 3.94 % 3.77 % 0.76 % 1.60 % 2.19 % 2.26 % EUR 3.38 % 2.64 % 2.86 % 3.08 % 3.48 % 3.35 % 3.13 % 2.99 % 0.03 % 0.12 % 0.57 % 0.60 % GBP 4.95 % 3.93 % 4.26 % 4.60 % 5.37 % 4.80 % 4.18 % 3.82 % 0.84 % 1.47 % 1.41 % 1.21 % |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Investments | |
Schedule of cash and investments and portfolio investments, net of derivative obligations | 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 and other invested assets. December 31, December 31, 2023 2022 Restated Holding company Cash and cash equivalents 406.8 552.1 Short term investments 192.9 126.6 Bonds 344.3 243.2 Preferred stocks 12.2 11.1 Common stocks (1) 103.5 75.4 Derivatives (note 7) 524.2 232.8 1,583.9 1,241.2 Assets pledged for derivative obligations: Cash equivalents 2.5 40.6 Short term investments 127.8 64.0 Bonds 67.4 — 197.7 104.6 Holding company cash and investments as presented on the consolidated balance sheet 1,781.6 1,345.8 Derivative obligations (note 7) (32.5) (19.4) 1,749.1 1,326.4 Portfolio investments Cash and cash equivalents (2)(4) 5,157.2 6,203.3 Short term investments (4) 2,008.4 3,164.9 Bonds (4) 36,850.8 28,578.5 Preferred stocks 2,447.4 2,338.0 Common stocks (1)(4) 6,903.4 5,124.3 Investments in associates (note 6) (4) 6,607.6 6,093.1 Derivatives (note 7) 448.3 235.0 Other invested assets (3)(4) 577.0 593.5 61,000.1 52,330.6 Assets pledged for derivative obligations: Bonds 139.3 51.3 Fairfax India cash, portfolio investments and associates: Cash and cash equivalents (2) 197.2 184.8 Short term investments — 49.7 Bonds 39.2 128.2 Common stocks 616.6 237.5 Investments in associates (note 6) 1,429.7 1,342.6 2,282.7 1,942.8 Portfolio investments as presented on the consolidated balance sheet 63,422.1 54,324.7 Derivative obligations (note 7) (412.4) (171.6) 63,009.7 54,153.1 Total cash and investments, net of derivative obligations 64,758.8 55,479.5 (1) Includes aggregate investments in limited partnerships with a carrying value at December 31, 2023 of $2,171.8 (December 31, 2022 – $1,982.5 ). (2) Includes aggregate restricted cash and cash equivalents at December 31, 2023 of $ 642.3 (December 31, 2022 - $861.2 ). See note 25. (3) Comprised primarily of investment property. (4) Included in the table above are the following portfolio investments held by Gulf Insurance to support its insurance operations. Gulf Insurance was consolidated on December 26, 2023 as described in note 21. December 31, December 31, 2023 2022 Gulf Insurance portfolio investments Cash and cash equivalents 459.9 — Short term investments 376.0 — Bonds 1,136.3 — Common stocks 216.2 — Investments in associates (note 6) 151.8 — Other invested assets 32.4 — 2,372.6 — |
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, 2023 2022 Regulatory deposits 6,701.0 5,724.2 Security for reinsurance and other 1,854.9 1,611.0 8,555.9 7,335.2 |
Schedule of fixed income maturity | December 31, 2023 December 31, 2022 Amortized Fair Amortized Fair cost (1) value (1) cost (1) value (1) Due in 1 year or less (2) 7,780.5 7,545.6 8,506.5 8,192.5 Due after 1 year through 3 years (2) 9,352.1 9,420.5 16,077.6 15,686.2 Due after 3 years through 5 years 5,738.7 5,861.1 4,205.8 4,116.6 Due after 5 years through 10 years (3) 13,645.1 14,047.3 318.8 291.1 Due after 10 years 577.9 566.5 859.9 714.8 37,094.3 37,441.0 29,968.6 29,001.2 Effective interest rate (4) 5.3 % 3.6 % (1) Includes bonds held by the holding company and Fairfax India. (2) Includes the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 - $2,500.7 ) secured by real estate predominantly in the U.S., Europe and Canada. (3) Includes U.S. treasury bonds at December 31, 2023 of $11,868.0 with maturities between 5 to 7 years. (4) The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the fixed income investment to its gross carrying amount at initial recognition. The effective interest rate does not reflect changes in market interest rates that affect the fair value of the fixed income investment over time. |
Schedule of fair value hierarchy of assets and 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, 2023 December 31, 2022 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) 5,763.7 — — 5,763.7 6,980.8 — — 6,980.8 Short term investments: Canadian government and provincials 553.3 — — 553.3 129.9 — — 129.9 U.S. treasury 794.1 — — 794.1 1,574.5 — — 1,574.5 Other government 31.3 339.0 — 370.3 164.3 1,238.5 — 1,402.8 Corporate and other — 611.4 — 611.4 — 298.0 — 298.0 1,378.7 950.4 — 2,329.1 1,868.7 1,536.5 — 3,405.2 Bonds: Canadian government and provincials — 2,715.1 — 2,715.1 — 2,207.6 — 2,207.6 U.S. treasury — 16,273.5 — 16,273.5 — 14,378.8 — 14,378.8 U.S. states and municipalities — 184.5 — 184.5 — 262.7 — 262.7 Other government — 4,903.0 39.3 4,942.3 — 2,700.2 — 2,700.2 Corporate and other (2) — 7,567.9 5,757.7 13,325.6 — 5,986.6 3,465.3 9,451.9 — 31,644.0 5,797.0 37,441.0 — 25,535.9 3,465.3 29,001.2 Preferred stocks: Canadian 15.5 3.5 8.8 27.8 10.4 9.2 13.2 32.8 U.S. — — 343.3 343.3 — — 233.6 233.6 Other (3) 12.0 286.6 1,789.9 2,088.5 13.2 269.2 1,800.3 2,082.7 27.5 290.1 2,142.0 2,459.6 23.6 278.4 2,047.1 2,349.1 Common stocks: Canadian 838.3 216.0 288.2 1,342.5 624.3 192.3 427.8 1,244.4 U.S. 988.0 27.4 1,258.7 2,274.1 691.0 26.1 1,087.2 1,804.3 Other 2,023.4 501.9 1,481.6 4,006.9 1,097.8 254.1 1,036.6 2,388.5 3,849.7 745.3 3,028.5 7,623.5 2,413.1 472.5 2,551.6 5,437.2 Derivatives and other invested assets — 869.5 680.0 1,549.5 — 341.8 719.5 1,061.3 Derivative obligations (note 7) — (257.4) (187.5) (444.9) — (151.8) (39.2) (191.0) Holding company cash and investments and portfolio investments measured at fair value 11,019.6 34,241.9 11,460.0 56,721.5 11,286.2 28,013.3 8,744.3 48,043.8 19.4 % 60.4 % 20.2 % 100.0 % 23.5 % 58.3 % 18.2 % 100.0 % Investments in associates (note 6) (4) 3,592.3 83.2 6,532.3 10,207.8 4,693.8 95.3 4,463.2 9,252.3 (1) Includes restricted cash and cash equivalents of $642.3 at December 31, 2023 (December 31, 2022 – $861.2 ). See note 25. (2) Included in Level 3 are the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 – $2,500.7 ) 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”). 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 Resolute Forest Products which was held for sale at December 31, 2022 and subsequently sold on March 1, 2023 as described in note 6. |
Summary of changes in Level 3 financial assets measured at fair value on a recurring basis | 2023 Private Private Derivatives placement company Limited Private and other debt preferred partnerships equity Common invested securities shares and other (1) funds (1) shares assets Total Balance - January 1 3,465.3 2,047.1 1,824.2 97.5 629.9 680.3 8,744.3 Net realized and unrealized gains (losses) included in the consolidated statement of earnings 63.7 (2.4) (69.7) (7.6) 12.3 (135.4) (139.1) Purchases (2)(3) 3,451.7 134.5 384.2 — 289.7 137.7 4,397.8 Acquisitions of insurance subsidiaries (note 21) 109.6 — — 0.9 34.9 32.7 178.1 Sales and distributions (2) (1,262.5) (2.9) (146.1) (19.7) (10.2) (214.2) (1,655.6) Transfer out of category — (36.7) — — (3.0) — (39.7) Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) 12.5 2.4 5.6 1.7 3.9 (8.6) 17.5 Deconsolidation of non-insurance subsidiary (43.3) — — — — — (43.3) Balance - December 31 5,797.0 2,142.0 1,998.2 72.8 957.5 492.5 11,460.0 2022 Private Private Derivatives placement company Limited Private and other debt preferred partnerships equity Common invested securities shares and other (1) funds (1) shares assets Total Balance - January 1 2,795.8 2,101.8 1,789.1 107.7 507.0 1,041.8 8,343.2 Net realized and unrealized gains (losses) included in the consolidated statement of earnings (378.8) (247.4) 143.0 (1.4) 61.9 (95.8) (518.5) Purchases (2) 1,456.0 286.4 113.1 — 102.7 67.4 2,025.6 Sales and distributions (2) (382.4) (88.1) (207.0) (4.2) (14.3) (303.8) (999.8) Transfer out of category — — — — (2.7) — (2.7) Unrealized foreign currency translation losses on foreign subsidiaries included in other comprehensive income (loss) (25.3) (5.6) (14.0) (4.6) (24.7) (29.3) (103.5) Balance - December 31 3,465.3 2,047.1 1,824.2 97.5 629.9 680.3 8,744.3 (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) Private placement debt securities include net purchases of first mortgage loans of $2,261.5 (2022 – $870.2 ). (3) Private placement debt securities include the Amynta Group promissory note as described in note 21. |
Summary of valuation techniques and unobservable inputs used to estimate fair value of assets | The table below presents the valuation techniques and unobservable inputs used to estimate fair values for the company’s significant Level 3 financial assets at December 31, 2023: Effect on fair value if input Carrying Input range used value is Asset class value Valuation technique Significant unobservable input Low High increased (a) Bonds (b) Private placement debt securities (1) 903.6 Discounted cash flow Credit spread 1.8 % 9.9 % Decrease Mortgage loans (2) 4,685.4 Market approach Recent transaction price N/A N/A Increase Discounted cash flow Credit spread 2.9 % 10.5 % Decrease Other 208.0 Various Various N/A N/A N/A 5,797.0 Preferred stocks (c) Private company preferred shares (3) 1,787.8 Discounted cash flow Discount rate 12.0 % 12.0 % Decrease Long term growth rate 6.3 % 6.3 % Increase Private placement preferred shares 290.2 Discounted cash flow Credit spread 5.5 % 6.1 % Decrease Other 64.0 Various Various N/A N/A N/A 2,142.0 Common stocks (d) Limited partnerships and other (4) 1,998.2 Net asset value Net asset value N/A N/A Increase Private equity funds (4) 402.0 Net asset value Net asset value N/A N/A Increase Other 628.3 Various Various N/A N/A N/A 3,028.5 Derivatives and other invested assets (e) Investment property (5) 302.7 Income capitalization Terminal capitalization rate 6.3 % 9.0 % Decrease Discount rate 8.0 % 10.3 % Decrease Market rent growth rate 2.5 % 3.0 % Increase 83.0 Sales comparison Price per acre (Cdn$ thousands) 43.5 160.0 Increase Other 106.8 Various Various N/A N/A N/A 492.5 Total 11,460.0 (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 holding company cash and investments or 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, 2023 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 10 investments, the largest being $148.9 (software and services) (December 31, 2022 - 10 investments, the largest being $285.0 (software and services)). By increasing (decreasing) the credit spreads applied at December 31, 2023 by 100 basis points, the fair value of this asset class would collectively decrease by $22.2 (increase by $21.4 ). (2) At December 31, 2023 these mortgage loans consisted of 102 investments, the largest being $235.0 (December 31, 2022 – 50 investments, the largest being $250.0 ). By increasing (decreasing) the credit spreads applied at December 31, 2023 by 200 basis points, the fair value of this asset class would collectively decrease by $112.5 (increase by $60.1 ). (3) These private company preferred shares relate to the company’s investment in Digit compulsory convertible preferred shares which were valued using an industry accepted discounted cash flow model that incorporated an unobservable discount rate and long term growth rate. By increasing (decreasing) the discount rate applied at December 31, 2023 by 1.0% , the fair value of the preferred shares would decrease by $319.1 (increase by $457.5 ); by increasing (decreasing) the long term growth rate applied at December 31, 2023 by 0.5% , the fair value of the preferred shares would increase by $122.0 (decrease by $119.5 ). The company also holds a 49.0% equity accounted interest in Digit as described in note 6. (4) 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, 2023 limited partnerships and other consisted of 42 investments, the three largest being $315.0 (industrials), $242.5 (primarily industrials and consumer discretionary) and $235.3 (oil and gas extraction) (December 31, 2022 - 45 investments, the three largest being $374.8 (oil and gas extraction), $189.5 (industrials) and $176.1 (industrials)). By increasing (decreasing) net asset values at December 31, 2023 by 10% , the fair value of limited partnerships and other would collectively increase (decrease) by $199.8 . (5) These investment property were primarily valued by third party appraisers using an industry accepted income capitalization approach that incorporated unobservable capitalization rates, discount rates and market rent growth rates. Certain investment property were valued using an industry accepted direct sales comparison approach that incorporated recent non-public sale prices per acre for comparable properties in similar locations. |
Schedule of investment income | An analysis of investment income for the years ended December 31 follows: Interest and dividends and share of profit of associates 2023 2022 Restated Interest income: Cash and short term investments 279.4 101.5 Bonds 1,624.9 753.1 Derivatives and other invested assets (63.2) 18.9 1,841.1 873.5 Dividends: Preferred stocks 44.7 39.7 Common stocks 89.1 100.7 133.8 140.4 Investment expenses (78.7) (52.1) Interest and dividends 1,896.2 961.8 Share of profit of associates (note 6) 1,022.2 1,022.4 |
Schedule of gains (losses) on investment | Net gains (losses) on investments 2023 2022 Restated 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) gains (losses) investments Common stocks (1) 43.9 420.5 464.4 364.5 (607.2) (242.7) Bonds and preferred stocks - convertible (0.2) 77.3 77.1 11.6 (253.0) (241.4) Other equity derivatives (2)(3)(4) 144.0 213.2 357.2 331.7 (140.9) 190.8 Disposition of non-insurance associates (5) 322.0 — 322.0 45.1 — 45.1 Other (3.1) — (3.1) 4.4 — 4.4 Long equity exposures and financial effects 506.6 711.0 1,217.6 757.3 (1,001.1) (243.8) Bonds (587.6) 1,141.9 554.3 (183.6) (1,064.9) (1,248.5) U.S. treasury bond forward contracts 172.3 (12.5) 159.8 163.0 (0.6) 162.4 Total bonds (415.3) 1,129.4 714.1 (20.6) (1,065.5) (1,086.1) Foreign currency (6) (222.5) 103.7 (118.8) 266.5 (410.1) (143.6) Other 1.6 135.0 136.6 (85.4) (14.3) (99.7) Net gains (losses) on investments (129.6) 2,079.1 1,949.5 917.8 (2,491.0) (1,573.2) (1) On August 31, 2022 Stelco repurchased 5.1 million of its outstanding common shares under its substantial issuer bid which resulted in the loss of a certain right held by another investor and the company’s ownership interest in Stelco increasing to 20.5% . Accordingly, the company commenced applying the equity method of accounting to its interest in Stelco at that date, resulting in unrealized gains of $151.9 being reclassified to realized with a net impact of nil in the consolidated statement of earnings, as described in note 6. (2) Other equity derivatives include long equity total return swaps, equity warrants and options and the Asset Value Loan Notes (“AVLNs”) entered with RiverStone Barbados as described in note 7. Net change in unrealized gains (losses) in 2023 included $320.6 in unrealized gains (2022 - $100.6 ) on the company’s investment in long equity total return swaps on Fairfax subordinate voting shares, with the fair value of $516.9 at December 31, 2023 (December 31, 2022 - $196.3 ) recorded in holding company cash and investments, as described in note 7. (3) Amounts recorded in net realized gains (losses) include net gains (losses) on total return swaps where the counterparties are generally 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. Net realized gains (losses) in 2023 included $304.2 in realized gains (2022 - $154.8 ) on the company’s investment in long equity total return swaps on Fairfax subordinate voting shares, which represented cash-settlement amounts recorded in holding company cash and investments. (4) On April 6, 2022 the company acquired 25.0 million Atlas common shares by exercising its Atlas equity warrants with a strike price of $8.05 per share for aggregate cash consideration of $201.3 and recognized a net loss on investment of $37.2 (realized gains of $58.6 , of which $95.8 was recorded as unrealized gains in prior years) on derecognition of the equity warrants as described in note 6. (5) During 2023 Fairfax India sold a 7.1% equity interest of IIFL Finance for gross proceeds of $177.3 ( 14.7 billion Indian rupees), which decreased its equity interest to 15.1% and resulted in realized gains of $88.6 . Accordingly, the company discontinued recording its residual investment in IIFL Finance under the equity method of accounting, commenced classifying it at FVTPL and recorded a realized remeasurement gain of $204.2 in the consolidated statement of earnings, as described in note 6. (6) Foreign currency net losses were primarily related to underwriting activities during 2023, partially offset by foreign currency net gains on investing activities. Foreign currency net gains on investment activities during 2023 primarily related to the strengthening of the Brazilian real, Canadian dollar and British pound relative to the U.S. dollar on Brazilian real, Canadian dollar and British pound denominated investments. Foreign currency net losses on investing activities during 2022 primarily related to the strengthening of the U.S. dollar relative to the company’s investments denominated in the Indian rupee, Canadian dollar, Egyptian pound, Sri Lankan rupee and British pound, partially offset by foreign currency net gains on U.S. dollar denominated investments held by subsidiaries with a Canadian dollar or British pound functional currency as the U.S. dollar strengthened relative to those currencies. |
Investments in Associates (Tabl
Investments in Associates (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments in Associates | |
Schedule of investments in associates and joint ventures | The company’s investments in associates and joint ventures were comprised as follows: December 31, 2023 Year ended December 31, Carrying value 2023 Associates Share of Ownership Fair and joint Fairfax India profit percentage (a) value (b) ventures associates (c) Total (loss) Insurance and reinsurance: Go Digit Infoworks Services Private Limited (“Digit”) 49.0 % 477.2 146.6 — 146.6 43.2 Gulf Insurance Group K.S.C.P. (“Gulf Insurance”) (1) — — — — — 42.6 Other — 234.0 222.1 — 222.1 (5.1) 711.2 368.7 — 368.7 80.7 Non-insurance: India Bangalore International Airport Limited (“Bangalore Airport”) (9) 64.0 % 1,600.0 — 783.0 783.0 16.0 CSB Bank Limited (“CSB Bank”) 49.7 % 409.3 — 223.0 223.0 35.4 Quess Corp Limited (“Quess”) (2) 34.7 % 323.6 433.0 (d) — 433.0 (47.0) Sanmar Chemicals Group (“Sanmar”) 42.9 % 302.9 — 156.1 156.1 0.6 IIFL Securities Limited (“IIFL Securities”) 30.9 % 165.7 13.6 103.8 117.4 12.4 Seven Islands Shipping Limited (“Seven Islands”) 48.5 % 142.8 — 133.6 133.6 42.6 IIFL Finance Limited (“IIFL Finance”) (10) — — — — — 45.1 Other — 69.6 10.8 30.2 41.0 1.8 3,013.9 457.4 1,429.7 1,887.1 106.9 Real estate KWF Real Estate Ventures Limited Partnerships (“KWF LPs”) — 104.0 104.0 (d) — 104.0 6.4 Other — 73.3 73.3 — 73.3 (13.8) 177.3 177.3 — 177.3 (7.4) Other Eurobank Ergasias Services & Holdings S.A (“Eurobank”) (3) 34.1 % 2,251.6 2,099.5 — 2,099.5 437.7 Poseidon Corp. (“Poseidon”, formerly Atlas) (4) 43.4 % 2,046.3 1,706.4 — 1,706.4 149.6 Stelco Holdings Inc. (“Stelco”) 23.6 % 491.6 291.6 — 291.6 23.7 EXCO Resources Inc. (“EXCO”) 48.3 % 435.2 417.6 — 417.6 129.1 Peak Achievement Athletics (“Peak Achievement”) 42.6 % 226.1 129.4 (d) — 129.4 23.3 Helios Fairfax Partners Corporation (“HFP”) 36.3 % 91.5 197.6 — 197.6 9.2 Partnerships, trusts and other (5) — 763.1 762.1 — 762.1 69.4 6,305.4 5,604.2 — 5,604.2 842.0 9,496.6 6,238.9 1,429.7 7,668.6 941.5 Investments in associates 10,207.8 6,607.6 1,429.7 8,037.3 1,022.2 As presented on the consolidated balance sheet: Investments in associates 7,553.2 6,607.6 Fairfax India investments in associates 2,654.6 1,429.7 10,207.8 8,037.3 Year ended December 31, 2022 December 31, Carrying value 2022 Associates Share of Ownership Fair and joint Fairfax India profit percentage (a) value (b) ventures associates (c) Total (loss) Restated Restated Restated Insurance and reinsurance: Go Digit Infoworks Services Private Limited (“Digit”) 49.0 % 479.3 104.4 — 104.4 (11.0) Gulf Insurance Group K.S.C.P. (“Gulf Insurance”) 43.7 % 415.8 405.2 — 405.2 60.7 Other — 173.9 139.5 — 139.5 (11.6) 1,069.0 649.1 — 649.1 38.1 Non-insurance: India Bangalore International Airport Limited (“Bangalore Airport”) 54.0 % 1,233.7 — 521.1 521.1 (5.7) CSB Bank Limited (“CSB Bank”) 49.7 % 223.3 — 194.5 194.5 40.8 Quess Corp Limited (“Quess”) 30.9 % 228.3 459.6 (d) — 459.6 6.8 IIFL Finance Limited (“IIFL Finance”) 22.3 % 493.3 — 242.8 242.8 36.5 Sanmar Chemicals Group (“Sanmar”) 42.9 % 337.8 — 159.8 159.8 36.4 IIFL Securities Limited (“IIFL Securities”) 37.1 % 87.9 35.3 97.9 133.2 14.6 Seven Islands Shipping Limited (“Seven Islands”) 48.5 % 96.9 — 97.9 97.9 9.8 Other — 38.0 10.8 28.6 39.4 3.3 2,739.2 505.7 1,342.6 1,848.3 142.5 Real estate KWF Real Estate Ventures Limited Partnerships (“KWF LPs”) — 101.1 101.1 (d) — 101.1 16.5 Other (6) — 61.3 63.3 — 63.3 2.8 162.4 164.4 — 164.4 19.3 Other Eurobank Ergasias Services & Holdings S.A (“Eurobank”) 32.2 % 1,344.5 1,507.6 — 1,507.6 263.0 Poseidon Corp. (“Poseidon”, formerly Atlas) (7) 43.2 % 1,864.7 1,506.3 — 1,506.3 258.2 Resolute Forest Products Inc. (“Resolute”) (5) 32.2 % 508.5 508.5 — 508.5 159.0 Stelco Holdings Inc. (“Stelco”) (8) 23.6 % 423.3 304.8 — 304.8 — EXCO Resources Inc. (“EXCO”) 44.4 % 544.8 288.4 — 288.4 81.9 Peak Achievement Athletics (“Peak Achievement”) 42.6 % 195.3 124.4 (d) — 124.4 7.7 Helios Fairfax Partners Corporation (“HFP”) 34.4 % 104.1 183.2 — 183.2 (23.9) Partnerships, trusts and other 296.5 350.7 — 350.7 76.6 5,281.7 4,773.9 — 4,773.9 822.5 8,183.3 5,444.0 1,342.6 6,786.6 984.3 Investments in associates 9,252.3 6,093.1 1,342.6 7,435.7 1,022.4 As presented on the consolidated balance sheet: Investments in associates 6,772.9 6,093.1 Fairfax India investments in associates 2,479.4 1,342.6 9,252.3 7,435.7 (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 December 26, 2023 the company increased its equity interest in Gulf Insurance from 43.7% to a controlling interest of 90.0% and commenced consolidating Gulf Insurance as described in note 21. Non-insurance associates and joint ventures (2) Share of loss of Quess of $47.0 (2022 - share of profit of $6.8 ) included a non-cash impairment charge of $52.8 (2022 - nil ). Subsequent to December 31, 2023 Quess announced a plan to demerge into three separate entities. Shareholders will receive one share of each new entity for each share held of Quess. Completion of the demerger is expected to be in 2025, subject to regulatory approvals. (3) On December 11, 2023 the company increased its interest in Eurobank to 34.1% for cash consideration of $82.0 through the purchase of Eurobank common shares held through the company’s investment in AVLNs entered with RiverStone Barbados (as described in note 7). (4) On March 28, 2023 a consortium composed of the company, the Washington Family, David Sokol, Chairman of the Board of Directors of Atlas, and Ocean Network Express Pte. Ltd., a global container, transportation and shipping company (collectively, the “Consortium”) acquired all of the outstanding common shares of Atlas, other than those shares owned by the Consortium and by Prem Watsa, Fairfax’s CEO, at a cash purchase price of $15.50 , plus payment of all ordinary course quarterly dividends up until closing of the transaction. Pursuant to the transaction, the company transferred its shares in Atlas, inclusive of the company’s interest through its holdings in Atlas equity warrants that were exercised on January 12, 2023 for cash consideration of $78.7 , into an entity formed by the Consortium that was subsequently renamed Poseidon Corp. The company did not purchase any additional interest not already owned by the Consortium upon closing of the transaction. The other members of the Consortium fully funded the cash component of the transaction, and the company continued its ownership in Atlas as part of the Consortium. The company continues to apply the equity method of accounting to its interest in Atlas through its interest in Poseidon. Subsequent to the closing of the transaction, during the second quarter of 2023 Mr. Watsa, to avoid potential future conflicts of interest, sold all of his 678,021 shares of Poseidon to Fairfax. Mr. Watsa owned 678,021 shares of Atlas representing less than 0.3% ownership as an investment that were replaced with shares of Poseidon on a one-for-one basis as a result of the tender offer as part of the consortium described above. Mr. Watsa sold the Poseidon shares to Fairfax at $15.50 per share, the same price he could have obtained under the tender offer and the price at which Fairfax’s shares of Atlas were valued by the consortium which made the tender offer. (5) On March 1, 2023 Domtar Corporation acquired all outstanding common shares of Resolute, which was held for sale as at December 31, 2022, for a combination of cash consideration of $20.50 and a Contingent Value Right (“CVR”) per Resolute common share. The CVR provides holders with the right to a share of any future softwood lumber duty deposit refunds and was valued at $1.42 per share based on the market price of Resolute immediately prior to close of the transaction. The company received total consideration of $665.6 , inclusive of cash consideration and the fair value of the CVR at close of the transaction, in exchange for its Resolute common shares, which included shares with a fair value of $120.7 purchased on January 26, 2023 through the company’s investment in AVLNs entered with RiverStone Barbados (as described in note 7), and recorded a realized gain of $44.2 in the consolidated statement of earnings. (6) On July 5, 2022 the company increased its interest in Grivalia Hospitality S.A. (“Grivalia Hospitality”) to 78.4% from 33.5% and commenced consolidating Grivalia Hospitality as described in note 21. (7) On April 6, 2022 the company acquired 25.0 million Atlas common shares by exercising its equity warrants in Atlas with a strike price of $8.05 per share for aggregate cash consideration of $201.3 . On derecognition of the equity warrants, the company recorded a net loss on investment of $37.2 (realized gains of $58.6 , of which $95.8 was recorded as unrealized gains in prior years) and recorded the fair value of these shares of $335.3 as an addition to its equity accounted investment in Atlas. On October 4, 2022 the company increased its interest in Atlas to 43.2% through the purchase of Atlas common shares held through the company’s investment in AVLNs entered with RiverStone Barbados (as described in note 7) for cash consideration of $84.8. (8) On August 31, 2022 Stelco repurchased 5.1 million of its outstanding common shares under its substantial issuer bid which resulted in the loss of a certain right held by another investor and the company’s ownership interest in Stelco increasing to 20.5% . Accordingly, the company commenced applying the equity method of accounting to its interest in Stelco which had a fair value of $352.2 (Cdn $461.3 ) on that date. Stelco is a publicly listed independent steelmaker that produces flat-rolled, coated, and cold-rolled steel products for the construction, automotive, and energy industries in North America. Fairfax India (9) On May 9, 2023 Fairfax India entered into an agreement to acquire an additional 3.0% equity interest in Bangalore Airport from Siemens Project Ventures GmbH (“Siemens”). The transaction closed on June 21, 2023 whereby Fairfax India paid cash consideration of $75.0 to increase its equity interest to 57.0% . On December 12, 2023 Fairfax India acquired an additional 7.0% equity interest in Bangalore Airport from Siemens for additional cash consideration of $175.0 , which further increased its equity interest in Bangalore Airport to 64.0% . At December 31, 2023 the company continued to apply the equity method of accounting due to extensive Indian government regulation of, and participation in, Bangalore Airport’s relevant activities. (10) During 2023 Fairfax India sold a 7.1% equity interest of IIFL Finance for gross proceeds of $177.3 ( 14.7 billion Indian rupees), which decreased its equity interest to 15.1% and resulted in realized gains of $88.6 . Accordingly, the company concluded it no longer exercised significant influence over IIFL Finance, discontinued recording its residual investment in IIFL Finance under the equity method of accounting, commenced classifying it at FVTPL, and recorded a realized remeasurement gain of $204.2 in the consolidated statement of earnings. |
Schedule of changes in the carrying value of investments in associates | Changes in the carrying value of investments in associates for the years ended December 31 were as follows: 2023 Fairfax India Associates Joint ventures associates Total Balance - January 1 5,312.2 780.9 1,342.6 7,435.7 Share of pre-tax comprehensive income (loss): Share of profit 936.0 12.9 151.1 1,100.0 Impairments (1) (19.8) (58.0) — (77.8) Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans 39.2 1.1 (3.4) 36.9 Share of gains (losses) on defined benefit plans 0.9 (0.8) (5.7) (5.6) 956.3 (44.8) 142.0 1,053.5 Dividends and distributions received (208.7) (24.8) (13.2) (246.7) Purchases and acquisitions (2) 884.8 42.5 250.0 1,177.3 Divestitures and other net changes in capitalization (3) (709.9) (14.6) (89.7) (814.2) Reclassifications (4) (379.3) — (193.0) (572.3) Foreign exchange effect and other 10.4 2.6 (9.0) 4.0 Balance - December 31 5,865.8 741.8 1,429.7 8,037.3 2022 Restated Fairfax India Associates Joint ventures associates Total Balance - January 1 3,852.8 896.4 1,348.9 6,098.1 Share of pre-tax comprehensive income (loss): Share of profit 864.3 26.1 132.0 1,022.4 Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans (111.5) (53.0) 14.4 (150.1) Share of gains (losses) on defined benefit plans 74.4 0.6 (5.4) 69.6 827.2 (26.3) 141.0 941.9 Dividends and distributions received (142.2) (33.7) (7.0) (182.9) Purchases and acquisitions 429.1 88.6 10.1 527.8 Divestitures and other net changes in capitalization 9.9 (11.9) 34.4 32.4 Reclassifications (4) 352.2 (114.3) (40.4) 197.5 Foreign exchange effect and other (16.8) (17.9) (144.4) (179.1) Balance - December 31 5,312.2 780.9 1,342.6 7,435.7 (1) Impairments recorded on associates and joint ventures are included in share of profit of associates in the consolidated statement of earnings. Impairments of $77.8 recorded during 2023 included non-cash impairment charges principally related to Quess. (2) Includes the consolidation of Gulf Insurance’s equity accounted investments with a fair value of $151.8 . (3) Primarily reflects the sale of Resolute in 2023. (4) Primarily reflects the consolidation of Gulf Insurance (see note 21) and the reclassification of IIFL Finance to common stock at FVTPL in 2023, and the consolidation of Grivalia Hospitality (see note 21) and the commencement of the equity method of accounting for Stelco in 2022 . |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivatives | |
Schedule of derivative financial instruments | The following table summarizes the company’s derivative financial instruments: December 31, 2023 December 31, 2022 Notional Fair value Notional Fair value amount Cost Assets Liabilities amount Cost Assets Liabilities Equity derivative contracts (1) 4,101.7 149.1 595.7 32.5 1,946.5 68.0 258.1 19.4 RiverStone Barbados AVLNs — — — — 517.5 — 30.7 — Foreign currency derivative contracts (2) — — 65.0 158.8 — — 49.0 106.8 Other derivative contracts — 254.2 311.8 253.6 — 289.8 130.0 64.8 Total 972.5 444.9 467.8 191.0 (1) Includes the company’s investment in Atlas warrants with a fair value at December 31, 2022 of $13.5 , which were exercised on January 12, 2023 as described in note 6. (2) Includes AGT’s foreign currency forward and swap liabilities with a fair value at December 31, 2023 of $60.8 (December 31, 2022 - $56.2 ). |
Insurance Contract Liabilities
Insurance Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Contract Liabilities | |
Schedule of insurance contract liabilities | December 31, 2023 December 31, 2022 PAA GMM (1) Total PAA GMM (1) Total Insurance contracts issued 41,863.4 4,471.4 46,334.8 36,549.5 3,504.9 40,054.4 Assets for insurance acquisition cash flows (160.0) (3.4) (163.4) (147.8) — (147.8) Insurance contract liabilities 41,703.4 4,468.0 46,171.4 36,401.7 3,504.9 39,906.6 (1) Includes insurance contracts issued measured under the GMM within Global Insurers and Reinsurers of $396.9 (2022 - nil ), International Insurers and Reinsurers of $356.3 (2022 - $375.6 ) and Life insurance and Run-off of $3,718.2 (2022 - $3,129.3 ). Insurance contracts issued under the GMM include a LRC of $ 3,122.6 (2022 - $2,515.9 ) and a LIC of $1,348.8 (2022 - $989.0 ). |
Schedule of insurance contracts issued, measured under the PAA by reporting segment and excluding intercompany balances | Insurance contracts issued, measured under the PAA by reporting segment and excluding intercompany balances, were as follows: Property and Casualty Insurance and Reinsurance Life North American Global Insurers International Insurers insurance Insurers and Reinsurers and Reinsurers Total and Run-off Consolidated LRC LIC Total LRC LIC Total LRC LIC Total 2023 January 1 1,065.4 7,972.4 9,037.8 449.2 24,283.9 24,733.1 386.3 2,332.6 2,718.9 36,489.8 59.7 36,549.5 December 31 1,140.8 9,005.2 10,146.0 1,071.0 25,937.2 27,008.2 1,399.0 3,239.5 4,638.5 41,792.7 70.7 41,863.4 2022 January 1 923.1 7,926.2 8,849.3 738.9 22,751.9 23,490.8 430.0 2,645.5 3,075.5 35,415.6 52.4 35,468.0 December 31 1,065.4 7,972.4 9,037.8 449.2 24,283.9 24,733.1 386.3 2,332.6 2,718.9 36,489.8 59.7 36,549.5 |
Schedule of movements in insurance contracts issued | An analysis of the liability for remaining coverage and the liability for incurred claims for insurance contracts issued by the property and casualty insurance and reinsurance reporting segments measured under the PAA for the year ended December 31 were as follows: Year ended December 31, 2023 Property and Casualty Insurance and Reinsurance Liability for incurred claims Risk adjustment for Liability for Estimates of non- remaining present value of financial coverage (1) future cash flows risk Total Balance - January 1 1,900.9 32,108.9 2,480.0 36,489.8 Changes in the consolidated statement of comprehensive income: Insurance revenue (26,095.0) — — (26,095.0) Incurred claims and other insurance service expenses (2) (16.2) 16,480.6 971.2 17,435.6 Amortization of acquisition costs and other (3) 4,654.1 — — 4,654.1 Prior year reserve development and release of risk adjustment on prior year claims (4) — (73.3) (794.7) (868.0) Insurance service expenses 4,637.9 16,407.3 176.5 21,221.7 Insurance service result (21,457.1) 16,407.3 176.5 (4,873.3) Net finance expense from insurance contracts (5) 4.2 1,965.7 — 1,969.9 Foreign exchange effects and other 23.8 90.1 (28.1) 85.8 Total changes in the consolidated statement of comprehensive income (21,429.1) 18,463.1 148.4 (2,817.6) Cash flows: Premiums received (6) 27,191.2 — — 27,191.2 Claims and other insurance service expenses paid, including investment components (7) — (15,537.9) — (15,537.9) Insurance acquisition cash flows (8) (5,196.6) — — (5,196.6) Changes in funds withheld 142.3 (21.8) — 120.5 22,136.9 (15,559.7) — 6,577.2 Investment components and other (170.4) 147.1 — (23.3) Contracts recognized on acquisition of subsidiary (9) 1,172.5 371.2 22.9 1,566.6 Balance - December 31 3,610.8 35,530.6 2,651.3 41,792.7 (1) Includes loss components of $139.0 at January 1, 2023 and $64.7 at December 31, 2023. (2) Incurred claims and other insurance service expenses included within estimates of the present value of future cash flows comprised Global Insurers and Reinsurers ( $9,596.8 ), North American Insurers ( $5,104.1 ) and International Insurers and Reinsurers ( $1,779.7 ) reporting segments. Incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ( $677.1 ), North American Insurers ( $191.1 ) and International Insurers and Reinsurers ( $103.0 ) reporting segments. (3) Amortization of acquisition costs and other comprised Global Insurers and Reinsurers ( $2,298.1 ), North American Insurers ( $1,790.7 ) and International Insurers and Reinsurers ( $565.3 ) reporting segments. (4) Reflects the release of risk adjustment for non-financial risk as claims are paid, primarily at the Global Insurers and Reinsurers ($589.9) and the North American Insurers ($155.9) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include favourable prior year reserve development at the Global Insurers and Reinsurers reporting segment ( $290.7 ), partially offset by adverse prior year reserve development at the International Insurers and Reinsurers ( $167.2 ) and North American Insurers ( $50.2 ) reporting segments. (5) Net finance expense from insurance contracts included within the estimates of present value of future cash flows comprised Global Insurers and Reinsurers ( $1,401.4 ), North American Insurers ( $407.6 ) and International Insurers and Reinsurers ( $156.7 ) reporting segments. (6) Premiums received from insurance contracts comprised Global Insurers and Reinsurers ( $15,665.9 ), North American Insurers ( $8,229.0 ) and International Insurers and Reinsurers ( $3,296.3 ) reporting segments. (7) Claims and other insurance service expenses paid, including investment components comprised Global Insurers and Reinsurers ($9,275.5) , North American Insurers ($4,650.1) and International Insurers and Reinsurers ($1,612.3) reporting segments. (8) Insurance acquisition cash flows paid comprised Global Insurers and Reinsurers ($2,524.1) , North American Insurers ($1,942.8) and International Insurers and Reinsurers ($729.7) reporting segments. (9) Principally reflects contracts recognized on the acquisition of Gulf Insurance, as described in note 21, which were primarily accounted for as if the company had entered into the contracts on the acquisition date, with the fair value of the contracts deemed as the premium received. Consequently, acquired contracts in their settlement period are included within the LRC and their expected settlement period deemed as the coverage period. Year ended December 31, 2022 Property and Casualty Insurance and Reinsurance Liability for incurred claims Risk adjustment for Liability for Estimates of non- remaining present value of financial coverage (1) future cash flows risk Total Balance - January 1 2,092.0 30,896.3 2,427.3 35,415.6 Changes in the consolidated statement of comprehensive income: Insurance revenue (24,494.8) — — (24,494.8) Incurred claims and other insurance service expenses (2) 106.8 15,972.3 825.1 16,904.2 Amortization of acquisition costs and other (3) 4,156.5 — — 4,156.5 Prior year reserve development and release of risk adjustment on prior year claims (4) — (171.2) (698.9) (870.1) Insurance service expenses 4,263.3 15,801.1 126.2 20,190.6 Insurance service result (20,231.5) 15,801.1 126.2 (4,304.2) Net finance (income) expenses from insurance contracts (5) 3.9 (1,586.1) — (1,582.2) Foreign exchange effects and other 9.5 (577.5) (73.5) (641.5) Total changes in the consolidated statement of comprehensive income (20,218.1) 13,637.5 52.7 (6,527.9) Cash flows: Premiums received (6) 24,710.1 — — 24,710.1 Claims and other insurance service expenses paid, including investment components (7) — (12,593.2) — (12,593.2) Insurance acquisition cash flows (8) (4,408.3) — — (4,408.3) Changes in funds withheld (145.9) 36.7 — (109.2) 20,155.9 (12,556.5) — 7,599.4 Investment components and other (128.9) 131.6 — 2.7 Balance - December 31 1,900.9 32,108.9 2,480.0 36,489.8 (1) Includes loss components of $190.9 at January 1, 2022 and $139.0 at December 31, 2022. (2) Incurred claims and other insurance service expenses included within estimates of present value of future cash flows comprised Global Insurers and Reinsurers ( $9,950.5 ), North American Insurers ( $4,336.1 ) and International Insurers and Reinsurers ( $1,685.7 ) reporting segments. Incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ( $597.9 ), North American Insurers ( $152.8 ) and International Insurers and Reinsurers ( $74.4 ) reporting segments. (3) Amortization of acquisition costs and other comprised Global Insurers and Reinsurers ( $2,139.2 ), North American Insurers ( $1,561.3 ) and International Insurers and Reinsurers ( $456.0 ) reporting segments. (4) Reflects the release of risk adjustment for non-financial risk as claims are paid, primarily at the Global Insurers and Reinsurers ($508.5) and the North American Insurers ($133.5) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include favourable prior year reserve development at the International Insurers and Reinsurers reporting segment ( $398.7 ), partially offset by adverse prior year reserve development at the North American Insurers ( $133.2 ) and Global Insurers and Reinsurers ( $94.3 ) reporting segments. (5) Net finance income from insurance contracts included within estimates of present value of future cash flows primarily comprised Global Insurers and Reinsurers ( $1,171.0 ) and North American Insurers ( $422.1 ) reporting segments. (6) Premiums received from insurance contracts comprised Global Insurers and Reinsurers ( $14,602.3 ), North American Insurers ( $7,442.7 ) and International Insurers and Reinsurers ( $2,665.1 ) reporting segments. (7) Claims and other insurance service expenses paid, including investment components comprised Global Insurers and Reinsurers ($7,256.3) , North American Insurers ($3,829.6) and International Insurers and Reinsurers ($1,507.3) reporting segments. (8) Insurance acqui sition cash flows paid comprised Global Insurers and Reinsurers ($2,144.5) , North American Insurers ($1,717.5) and International Insurers and Reinsurers ($546.3) reporting segments. |
Schedule of estimates of undiscounted gross and net cumulative claims | Calendar year 2017 2018 2019 2020 2021 2022 2023 Property and casualty provision for outstanding losses and loss adjustment expenses at December 31 25,284.5 25,426.9 26,528.3 28,700.5 32,329.1 36,306.4 41,221.8 Cumulative payments as of: One year later 6,917.3 7,191.0 7,018.7 6,986.7 8,410.7 10,341.7 Two years later 11,052.3 11,487.9 11,133.7 11,990.6 14,571.5 Three years later 13,928.6 14,318.9 14,702.8 16,410.5 Four years later 15,843.4 16,807.6 17,959.2 Five years later 17,528.7 19,121.9 Six years later 19,141.7 Reserves re-estimated as of: One year later 24,131.2 25,256.3 26,259.1 28,119.8 31,640.8 36,470.5 Two years later 24,091.7 25,124.0 26,052.6 27,894.1 32,041.6 Three years later 23,949.9 25,132.6 25,961.4 28,468.4 Four years later 24,046.1 25,286.7 26,611.8 Five years later 24,202.6 25,851.6 Six years later 24,554.7 Favourable (adverse) development 729.8 (424.7) (83.5) 232.1 287.5 (164.1) Favourable (adverse) development comprised of: Effect of foreign currency translation 483.5 222.5 309.6 271.0 163.6 7.4 Favourable (adverse) loss reserve development 246.3 (647.2) (393.1) (38.9) 123.9 (171.5) 729.8 (424.7) (83.5) 232.1 287.5 (164.1) Reconciliation to the LIC at the property and casualty insurance and reinsurance reporting segments Property and casualty provision for outstanding losses and loss adjustment expenses as presented above 41,221.8 Effect of discounting (6,193.1) Risk adjustment for non-financial risk 3,137.6 Other (1) 347.2 Liability for incurred claims (PAA & GMM) 38,513.5 Less: Liability for incurred claims (GMM) (331.6) Liability for incurred claims (PAA) 38,181.9 Liability for incurred claims ( PAA) as presented in the table above Estimates of present value of future cash flows 35,530.6 Risk adjustment for non-financial risk 2,651.3 Liability for incurred claims (PAA) 38,181.9 (1) Primarily includes funds withheld and settled crop losses payable at Odyssey Group, partially offset by reinstatement premiums payable. Calendar year 2017 2018 2019 2020 2021 2022 2023 Property and casualty provision for outstanding losses and loss adjustment expenses at December 31 19,750.1 19,334.7 19,858.9 21,468.6 24,068.6 27,800.1 31,618.1 Cumulative payments as of: One year later 5,297.4 5,407.0 5,339.8 5,426.1 6,415.3 7,791.6 Two years later 8,394.6 8,606.4 8,480.3 9,269.8 11,042.3 Three years later 10,562.7 10,719.0 11,216.3 12,456.8 Four years later 12,010.0 12,624.3 13,473.3 Five years later 13,291.3 14,142.2 Six years later 14,348.9 Reserves re-estimated as of: One year later 18,642.9 19,052.8 19,587.2 21,233.4 23,808.7 27,534.6 Two years later 18,411.4 18,937.4 19,585.7 21,342.5 24,151.8 Three years later 18,275.8 19,052.3 19,845.5 21,728.2 Four years later 18,392.0 19,227.2 20,269.4 Five years later 18,589.3 19,589.3 Six years later 18,839.6 Favourable (adverse) development 910.5 (254.6) (410.5) (259.6) (83.2) 265.5 Favourable (adverse) development comprised of: Effect of foreign currency translation 183.4 9.4 101.7 108.6 126.4 12.2 Favourable (adverse) loss reserve development 727.1 (264.0) (512.2) (368.2) (209.6) 253.3 910.5 (254.6) (410.5) (259.6) (83.2) 265.5 Reconciliation to the net LIC at the property and casualty insurance and reinsurance reporting segments Property and casualty provision for outstanding losses and loss adjustment expenses as presented above 31,618.1 Effect of discounting (4,679.9) Risk adjustment for non-financial risk 2,134.0 Other (2) (277.6) Net liability for incurred claims (PAA & GMM) 28,794.6 Less: Net liability for incurred claims (GMM) (286.3) Net liability for incurred claims (PAA) 28,508.3 Net liability for incurred claims (PAA) as presented in the preceding table and note 9 LIC (PAA) AIC (PAA) (note 9) Net LIC (PAA) Estimates of present value of future cash flows 35,530.6 8,821.0 26,709.6 Risk adjustment for non-financial risk 2,651.3 852.6 1,798.7 Net liability for incurred claims (PAA) 38,181.9 9,673.6 28,508.3 (1) Net of asset for incurred claims for reinsurance contracts held. (2) Primarily includes reinsurance paid losses, partially offset by funds withheld and reclassification of certain retrospective contracts to LRC. |
Reinsurance Contract Assets H_2
Reinsurance Contract Assets Held (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reinsurance Contract Assets Held | |
Schedule of reinsurance contract assets held | December 31, 2023 December 31, 2022 PAA GMM (1) Total PAA GMM (1) Total Reinsurance contract assets held 9,856.3 1,031.4 10,887.7 8,679.2 1,012.3 9,691.5 (1) Comprised of reinsurance contract assets held measured under the GMM at Global Insurers and Reinsurers of $321.6 , (2022 - $320.0 ), International Insurers and Reinsurers of $262.1 (2022 - $290.4 ) and Life insurance and Run-off of $447.7 (2022 - $401.9 ). Reinsurance contract assets held, measured under the PAA by reporting segment and excluding intercompany balances, were as follows: Property and Casualty Insurance and Reinsurance Life North American Global Insurers International Insurers insurance Consolidated Insurers and Reinsurers and Reinsurers Total and Run-off ARC AIC Total ARC AIC Total ARC AIC Total 2023 January 1 (15.2) 974.5 959.3 (182.1) 6,633.5 6,451.4 53.3 1,210.2 1,263.5 8,674.2 5.0 8,679.2 December 31 (70.0) 1,250.3 1,180.3 (46.6) 7,007.2 6,960.6 296.7 1,416.1 1,712.8 9,853.7 2.6 9,856.3 2022 January 1 (12.9) 901.9 889.0 (166.4) 6,250.2 6,083.8 43.6 1,570.7 1,614.3 8,587.1 2.9 8,590.0 December 31 (15.2) 974.5 959.3 (182.1) 6,633.5 6,451.4 53.3 1,210.2 1,263.5 8,674.2 5.0 8,679.2 |
Schedule of movements in reinsurance contract assets held | An analysis of the asset for remaining coverage and the asset for incurred claims for reinsurance contracts held by the property and casualty insurance and reinsurance reporting segments measured under the PAA for the year ended December 31 were as follows: Year ended December 31, 2023 Property and Casualty Insurance and Reinsurance Asset for incurred claims Risk adjustment for Asset for Estimates of non- remaining present value of financial coverage (1) future cash flows risk Total Balance - January 1 (144.0) 8,011.6 806.6 8,674.2 Changes in the consolidated statement of comprehensive income: Cost of reinsurance (4,759.6) — — (4,759.6) Recoveries of incurred claims and other insurance service expenses (2) (27.8) 3,496.2 330.1 3,798.5 Prior year reserve development and release of risk adjustment on prior year claims (3) — 227.0 (266.4) (39.4) Recoveries of insurance service expenses (27.8) 3,723.2 63.7 3,759.1 Net reinsurance result (4,787.4) 3,723.2 63.7 (1,000.5) Net finance income from reinsurance contract assets held (4) 0.8 520.9 — 521.7 Foreign exchange effects and other (41.9) (59.0) (31.9) (132.8) Total changes in the consolidated statement of comprehensive income (4,828.5) 4,185.1 31.8 (611.6) Cash flows: Premiums paid (5) 4,786.2 — — 4,786.2 Amounts received (6) — (3,502.6) — (3,502.6) Changes in funds withheld (3.1) (14.6) — (17.7) 4,783.1 (3,517.2) — 1,265.9 Investment components and other (7.2) 8.0 — 0.8 Contracts recognized on acquisition of subsidiary (7) 376.7 133.5 14.2 524.4 Balance - December 31 180.1 8,821.0 852.6 9,853.7 (1) Includes loss recovery components of $50.1 at January 1, 2023 and $23.0 at December 31, 2023. (2) Recoveries of incurred claims and other insurance service expenses included within estimates of present value of future cash flows comprised Global Insurers and Reinsurers ($1,996.4) , North American Insurers ($973.7) and International Insurers and Reinsurers ($526.1) reporting segments. Recoveries of incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ($219.3) , International Insurers and Reinsurers ($57.7) and North American Insurers ($53.1) reporting segments. (3) Reflects the release of risk adjustment for non-financial risk as claims are recovered, primarily at the Global Insurers and Reinsurers ($200.9) and the North American Insurers ($40.4) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘recoveries of incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include favourable prior year reserve development at the International Insurers and Reinsurers ( $217.8 ) and the North American Insurers ( $53.0 ) reporting segments, partially offset by adverse prior year reserve development at the Global Insurers and Reinsurers reporting segment ( $43.8 ). (4) Net finance income from reinsurance contract assets held included within estimates of present value of future cash flows primarily comprised Global Insurers and Reinsurers ($392.6) , International Insurers and Reinsurers ($78.6) and North American Insurers ($49.7) reporting segments. (5) Premiums paid comprised Global Insurers and Reinsurers ( $2,640.5 ), North American Insurers ($1,122.7) and International Insurers and Reinsurers ($1,023.0) reporting segments. (6) Amounts received comprised Global Insurers and Reinsurers ($2,005.0) , North American Insurers ($793.3) and International Insurers and Reinsurers ($704.3) reporting segments. (7) Principally reflects contracts recognized on the acquisition of Gulf Insurance, as described in note 21, which were primarily accounted for as if the company had entered into the contracts on the acquisition date, with the fair value of the contracts deemed as the premium paid. Consequently, acquired contracts in their settlement period are included within the ARC and their expected settlement period deemed as the coverage period. Year ended December 31, 2022 Property and Casualty Insurance and Reinsurance Asset for incurred claims Risk Asset for Estimates of adjustment for remaining present value of non-financial coverage (1) future cash flows risk Total Balance - January 1 (135.7) 7,905.8 817.0 8,587.1 Changes in the consolidated statement of comprehensive income: Cost of reinsurance (4,344.7) — — (4,344.7) Recoveries of incurred claims and other insurance service expenses (2) 8.4 3,159.4 261.7 3,429.5 Prior year reserve development and release of risk adjustment on prior year claims (3) — (163.1) (253.5) (416.6) Recoveries of insurance service expenses 8.4 2,996.3 8.2 3,012.9 Net reinsurance result (4,336.3) 2,996.3 8.2 (1,331.8) Net finance income (expense) from reinsurance contract assets held (4) 0.1 (291.1) — (291.0) Foreign exchange effects and other 77.8 (172.7) (18.6) (113.5) Total changes in the consolidated statement of comprehensive income (4,258.4) 2,532.5 (10.4) (1,736.3) Cash flows: Premiums paid (5) 4,249.3 — — 4,249.3 Amounts received (6) — (2,415.3) — (2,415.3) Changes in funds withheld (2.7) (1.3) — (4.0) 4,246.6 (2,416.6) — 1,830.0 Investment components and other 3.5 (10.1) — (6.6) Balance - December 31 (144.0) 8,011.6 806.6 8,674.2 (1) Includes loss recovery components of $41.9 at January 1, 2022 and $50.1 at December 31, 2022. (2) Recoveries of incurred claims and other insurance service expenses included within estimates of present value of future cash flows comprised Global Insurers and Reinsurers ($1,977.6) , International Insurers and Reinsurers ($622.3) and North American Insurers ($559.5) reporting segments. Recoveries of incurred claims and other insurance service expenses included within risk adjustment for non-financial risk comprised Global Insurers and Reinsurers ($176.0) , International Insurers and Reinsurers ($45.7) and North American Insurers ($40.0) reporting segments. (3) Reflects the release of risk adjustment for non-financial risk as claims are recovered, primarily at the Global Insurers and Reinsurers ($198.4) and the North American Insurers ($24.3) reporting segments. When claims are initially incurred, the risk adjustment is included within the ‘recoveries of incurred claims and other insurance service expenses’ line in the table above. Prior year reserve development included within estimates of present value of future cash flows include adverse prior year reserve development in the International Insurers and Reinsurers reporting segment ( $359.9 ), partially offset by favourable prior year reserve development in the North American Insurers ( $98.8 ) and the Global Insurers and Reinsurers ( $98.0 ) reporting segments. (4) Net finance expense from reinsurance contract assets held included within estimates of present value of future cash flows primarily comprised net finance expense within the Global Insurers and Reinsurers ($279.8) and North American Insurers ($28.9) reporting segments, partially offset by net finance income at the International Insurers and Reinsurers ($17.6) reporting segment. (5) Premiums paid comprised Global Insurers and Reinsurers ($2,506.0) , North American Insurers ($880.2) and International Insurers and Reinsurers ($863.1) reporting segments. (6) Amounts received comprised Global Insurers and Reinsurers ($1,333.0) , North American Insurers ($526.8) and International Insurers and Reinsurers ($555.5) reporting segments. |
Net Finance Income or Expense_2
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held | |
Schedule of finance income (expense) from insurance contracts and reinsurance contract assets held | Year ended December 31, 2023 2022 Restated Net finance income (expense) from insurance contracts Interest accreted to insurance contracts (1,889.5) (433.6) Effect of changes in interest rates and other financial assumptions (263.2) 2,448.0 (2,152.7) 2,014.4 Net finance income (expense) from reinsurance contract assets held Interest accreted to reinsurance contract assets held 502.0 122.3 Effect of changes in interest rates and other financial assumptions 45.1 (519.4) 547.1 (397.1) Net finance income (expense) from insurance contracts and reinsurance contract assets held (1,605.6) 1,617.3 Investment income (1) Interest and dividends 1,896.2 961.8 Share of profit of associates 1,022.2 1,022.4 Net gains (losses) on investments 1,949.5 (1,573.2) 4,867.9 411.0 Net financial result 3,262.3 2,028.3 (1) Interest and dividends, share of profit of associates and net gains (losses) on investments as presented in the consolidated statement of earnings, which includes amounts reported by the non-insurance companies and the group holding companies as disclosed in note 23. |
Insurance Contract Receivable_2
Insurance Contract Receivables and Payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Contract Receivables and Payables | |
Schedule of insurance contract receivables | December 31, December 31, 2023 2022 Restated Insurance premiums receivable from agents, brokers and other intermediaries 615.9 411.5 Insurance contract receivables from third party administrators and other 310.2 237.4 926.1 648.9 Current 685.3 468.5 Non-current 240.8 180.4 926.1 648.9 |
Schedule of insurance contract payables | December 31, December 31, 2023 2022 Restated Payable to agents and brokers 374.2 495.6 Investment contracts associated with life insurance products (1) 626.5 595.8 Other insurance contract payables 206.2 311.3 1,206.9 1,402.7 Current 518.4 802.6 Non-current 688.5 600.1 1,206.9 1,402.7 (1) Contracts issued by the company’s life insurance operations which do not transfer significant insurance risk, but do transfer financial risk from the policyholder to the company, representing a financial liability. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets | |
Schedule of changes in 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, 2023 2,927.5 503.2 653.9 1,018.3 586.1 5,689.0 Additions (2) 355.8 — 538.2 123.0 209.3 1,226.3 Disposals (3) (45.9) — (35.9) (0.5) — (82.3) Amortization — — (92.9) — (280.4) (373.3) Impairments (4) (132.4) — — (3.8) — (136.2) Foreign exchange effect and other 16.9 — 7.3 24.7 3.9 52.8 Balance - December 31, 2023 3,121.9 503.2 1,070.6 1,161.7 518.9 6,376.3 Gross carrying amount 3,485.6 503.2 1,765.9 1,203.0 1,713.6 8,671.3 Accumulated amortization — — (710.3) — (1,175.1) (1,885.4) Accumulated impairment and other (363.7) — 15.0 (41.3) (19.6) (409.6) 3,121.9 503.2 1,070.6 1,161.7 518.9 6,376.3 Goodwill Intangible assets Total Lloyd’s Customer Computer participation and broker Brand software rights (1) relationships names (1) and other (1) Balance - January 1, 2022 3,084.8 503.2 760.9 1,087.3 492.0 5,928.2 Additions 152.0 — 25.9 (0.3) 267.6 445.2 Disposals (3) (81.9) — (31.6) (8.5) (3.2) (125.2) Amortization — — (91.7) — (134.9) (226.6) Impairments (4) (137.0) — — — (0.9) (137.9) Foreign exchange effect and other (90.4) — (9.6) (60.2) (34.5) (194.7) Balance - December 31, 2022 2,927.5 503.2 653.9 1,018.3 586.1 5,689.0 Gross carrying amount 3,161.8 503.2 1,279.0 1,060.1 1,594.2 7,598.3 Accumulated amortization — — (631.6) — (988.3) (1,619.9) Accumulated impairment and other (234.3) — 6.5 (41.8) (19.8) (289.4) 2,927.5 503.2 653.9 1,018.3 586.1 5,689.0 (1) Indefinite-lived intangible assets not subject to amortization had an aggregate carrying value at December 31, 2023 of $1,756.8 (December 31, 2022 – $1,613.6 ). (2) On December 26, 2023 the company acquired additional interest in Gulf Insurance and consolidated its assets and liabilities on the date of acquisition. See note 21. (3) On May 10, 2023 Brit sold its managing general underwriting operations, Ambridge Group and deconsolidated goodwill of $45.9 and intangible assets of $32.6 . During 2022 the company sold its interests in the Crum & Forster Pet Insurance Group and Pethealth and deconsolidated goodwill of $81.7 and intangible assets of $34.6 . See note 21. (4) During 2023 non-cash impairment charges recorded in Non-insurance expenses in the consolidated statement of earnings by the non-insurance companies primarily related to non-cash goodwill impairment charges on Farmers Edge of $63.5 (2022 - $133.4 ). |
Schedule goodwill and intangible asset allocation to CGUs | Goodwill and intangible assets were allocated to the company’s cash-generating units (“CGUs”) as follows: December 31, 2023 December 31, 2022 Intangible Intangible Goodwill assets Total Goodwill assets Total Insurance and reinsurance companies Allied World 940.0 474.3 1,414.3 940.0 519.8 1,459.8 Gulf Insurance 330.5 607.0 937.5 — — — Brit 167.7 527.4 695.1 214.6 565.5 780.1 Zenith National 317.6 69.3 386.9 317.6 77.7 395.3 Crum & Forster 132.6 99.0 231.6 132.6 57.8 190.4 Northbridge 83.8 136.6 220.4 81.6 133.5 215.1 Odyssey Group 119.7 49.4 169.1 119.7 50.8 170.5 All other (1) 96.7 103.1 199.8 85.1 108.3 193.4 2,188.6 2,066.1 4,254.7 1,891.2 1,513.4 3,404.6 Non-insurance companies Recipe 293.6 919.0 1,212.6 298.9 902.2 1,201.1 AGT 150.7 49.4 200.1 147.6 49.6 197.2 Thomas Cook India 126.9 48.1 175.0 127.7 48.4 176.1 Boat Rocker 59.7 102.9 162.6 86.4 184.8 271.2 All other (2) 302.4 68.9 371.3 375.7 63.1 438.8 933.3 1,188.3 2,121.6 1,036.3 1,248.1 2,284.4 3,121.9 3,254.4 6,376.3 2,927.5 2,761.5 5,689.0 (1) Comprised primarily of balances related to AMAG Insurance, Eurolife and Fairfax Central and Eastern Europe. (2) Comprised primarily of balances related to Dexterra Group, Grivalia Hospitality (consolidated on July 5, 2022) and Fairfax India's subsidiaries. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets | |
Schedule of other assets | Other assets were comprised as follows: December 31, 2023 December 31, 2022 Restated Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Premises and equipment, right-of-use assets and non-insurance companies’ investment property (2) 875.1 2,380.6 3,255.7 684.0 2,199.7 2,883.7 Assets associated with unit-linked insurance and other products (3) 1,204.0 — 1,204.0 676.5 — 676.5 Inventories — 669.1 669.1 — 668.2 668.2 Non-insurance revenue receivables — 611.6 611.6 — 638.9 638.9 Accrued interest and dividends 488.0 2.8 490.8 313.7 3.5 317.2 Prepaid expenses 170.5 180.4 350.9 111.0 134.8 245.8 Call options on non-controlling interests (4) 306.6 — 306.6 167.4 — 167.4 Income tax, sales tax and subsidies receivable 60.4 215.5 275.9 71.3 204.6 275.9 Finance lease receivables 7.8 207.4 215.2 8.8 218.0 226.8 Prepaid losses on claims 151.0 — 151.0 168.9 — 168.9 Pension surplus 96.3 — 96.3 144.5 — 144.5 Receivable for securities sold but not yet settled 37.9 — 37.9 11.2 — 11.2 Other (5) 515.1 110.1 625.2 470.7 85.6 556.3 3,912.7 4,377.5 8,290.2 2,828.0 4,153.3 6,981.3 Current 1,425.3 1,702.9 3,128.2 943.7 1,632.6 2,576.3 Non-current 2,487.4 2,674.6 5,162.0 1,884.3 2,520.7 4,405.0 3,912.7 4,377.5 8,290.2 2,828.0 4,153.3 6,981.3 (1) Includes Life insurance and Run-off, and the group holding companies. (2) The increase during 2023 principally reflected growth in premises and equipment at Grivalia Hospitality as it expands its operations and the consolidation of Gulf Insurance, as described in note 21. (3) Primarily includes insurance contracts written by the company’s life insurance operations that transfer the market risk associated with the underlying investment performance, which supports the benefit payments, to the policyholder (“unit-linked”). The liability for the associated life policy benefits are included within insurance contract liabilities (note 8). For these unit-linked contracts or funds, the company measures the underlying investments at fair value. The increase in such investment assets during 2023 principally reflected higher unit-linked insurance volumes at Eurolife, and the consolidation of Gulf Insurance as described in note 21. (4) Comprised of call options on the non-controlling interests in Allied World, Brit and Odyssey Group, which expire in 2026, 2027 and 2029, respectively. At certain dates subsequent to expiry of a call option, the non-controlling interests may request an initial public offering of their shares, the structure, process and timing of which will be controlled by the company; in certain circumstances, the non-controlling interests may request a sale of the respective operating company to a third party. (5) 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, 2023 | |
Accounts Payable and Accrued Liabilities | |
Schedule of accounts payable and accrued liabilities | Accounts payable and accrued liabilities were comprised as follows: December 31, 2023 December 31, 2022 Restated Insurance Insurance and Non- and Non- reinsurance insurance reinsurance insurance companies (1) companies Total companies (1) companies Total Lease liabilities 349.0 726.2 1,075.2 364.1 729.9 1,094.0 Payables related to cost of sales — 965.2 965.2 — 814.3 814.3 Salaries and employee benefit liabilities 642.3 115.5 757.8 500.5 98.5 599.0 Deferred gift card, hospitality and other revenue 34.8 425.9 460.7 37.8 392.0 429.8 Income taxes payable 284.8 22.1 306.9 347.0 14.0 361.0 Put options held by non-controlling interests (2) 180.7 69.4 250.1 128.1 45.4 173.5 Pension and post retirement liabilities 145.1 12.0 157.1 132.9 12.8 145.7 Amounts withheld and accrued taxes 82.5 33.2 115.7 58.3 30.7 89.0 Administrative and other (3) 1,142.4 256.1 1,398.5 807.4 292.9 1,100.3 2,861.6 2,625.6 5,487.2 2,376.1 2,430.5 4,806.6 Current 1,818.3 1,739.1 3,557.4 1,358.0 1,553.3 2,911.3 Non-current 1,043.3 886.5 1,929.8 1,018.1 877.2 1,895.3 2,861.6 2,625.6 5,487.2 2,376.1 2,430.5 4,806.6 (1) Includes Life insurance and Run-off, and the group holding companies. (2) Principally a put option held by Eurobank on the non-controlling interest in Eurolife. (3) Principally comprised of accrued operating expenses, accrued interest expense, payables for securities purchased but not yet settled, advances from customers and liabilities related to business acquisitions. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Schedule of borrowings | December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Principal value (a) value (b) Principal value (a) value (b) Borrowings - holding company Fairfax unsecured notes (d) 4.875% due August 13, 2024 (1) 279.3 279.0 277.5 282.5 281.6 277.0 4.95% due March 3, 2025 (Cdn$348.6) (1) 264.3 263.7 264.3 258.3 257.2 255.2 8.30% due April 15, 2026 (e) 91.8 91.8 97.1 91.8 91.7 98.2 4.70% due December 16, 2026 (Cdn$450.0) 341.3 340.4 339.9 332.1 331.0 323.7 4.25% due December 6, 2027 (Cdn$650.0) 492.9 492.0 486.4 479.7 478.6 455.8 2.75% due March 29, 2028 (€750.0) 828.5 821.5 791.9 800.5 792.2 698.3 4.85% due April 17, 2028 600.0 597.5 592.7 600.0 596.9 568.1 4.23% due June 14, 2029 (Cdn$500.0) 379.2 378.1 371.6 369.0 367.7 342.7 4.625% due April 29, 2030 650.0 646.8 627.3 650.0 646.4 591.1 3.375% due March 3, 2031 596.8 585.2 527.0 600.0 586.8 492.8 3.95% due March 3, 2031 (Cdn$840.0) 637.0 633.4 598.9 627.4 623.2 549.4 5.625% due August 16, 2032 741.2 735.6 742.5 750.0 743.6 707.1 6.00% due December 7, 2033 (1) 400.0 394.0 410.6 — — — 7.75% due July 15, 2037 (e) 91.3 90.7 104.3 91.3 90.7 95.2 Notes payable (2) 660.0 579.2 579.2 — — — Revolving credit facility (3) — — — — — — 7,053.6 6,928.9 6,811.2 5,932.6 5,887.6 5,454.6 Borrowings - insurance and reinsurance companies Allied World 4.35% senior notes due October 29, 2025 500.0 501.8 488.0 500.0 502.9 477.7 Allied World revolving credit facility and other borrowings 18.0 20.6 19.5 16.8 19.8 16.9 Gulf Insurance floating rate long term loans due 2027 (4) 172.9 172.9 171.9 — — — Zenith National 8.55% debentures due August 1, 2028 (d) 38.5 38.4 38.5 38.5 38.3 38.5 Brit 3.6757% subordinated notes due December 9, 2030 (£127.0) 161.9 161.9 118.3 162.4 162.4 120.6 Brit floating rate revolving credit facility (5) — — — 10.0 10.0 10.0 891.3 895.6 836.2 727.7 733.4 663.7 Borrowings - non-insurance companies (c) Fairfax India 5.00% unsecured senior notes due 2028 441.6 439.4 399.4 441.6 438.9 400.7 Fairfax India subsidiary borrowings 75.8 75.8 75.8 122.6 122.2 122.2 AGT credit facilities, senior notes and loans (6) 493.5 491.0 488.0 511.9 508.4 498.8 Recipe term loans and credit facilities 400.2 398.2 384.8 464.0 461.5 436.7 Grivalia bond loans and term loans 205.8 205.2 205.2 111.3 111.3 111.3 Loans and revolving credit facilities primarily at floating rates (7)(8) 289.4 289.4 289.4 361.8 361.6 361.8 1,906.3 1,899.0 1,842.6 2,013.2 2,003.9 1,931.5 Total debt 9,851.2 9,723.5 9,490.0 8,673.5 8,624.9 8,049.8 ( 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 2023 the company and its subsidiaries completed the following debt transactions: Holding company (1) On December 7, 2023 the company completed an offering of $400.0 principal amount of 6.00% unsecured senior notes due December 7, 2033 for net proceeds of $393.9 after discount, commissions, and expenses. Commissions and expenses of $3.1 were included in the carrying value of the notes. Subsequent to December 31, 2023, on January 12, 2024 the company completed a re-opening of these notes for $200.0 principal amount for net proceeds, excluding accrued interest, of $200.2 after premium, commissions and expenses. Subsequent to December 31, 2023, on January 29, 2024 the company used a portion of the net proceeds from the offering to redeem its remaining $279.3 principal amount of 4.875% unsecured senior notes due August 13, 2024 for cash consideration of $285.6, including accrued interest. On February 14, 2024 the company announced that, on March 15, 2024, it will use the remainder of the net proceeds from the offering to redeem its Cdn$348.6 principal amount of 4.95% unsecured senior notes due March 3, 2025. (2) On December 26, 2023 the company acquired KIPCO’s 46.3% interest in Gulf Insurance as described in note 21, which included a payment deed of $660.0 , requiring the company to make four equal annual payments of $165.0 to KIPCO beginning on the first anniversary of closing of the transaction. The fair value was determined using a discounted cash flow model with an average discount rate of 5.5% . (3) On July 14, 2023 the company extended the term of its $2.0 billion unsecured revolving credit facility with a syndicate of lenders from June 29, 2027 to July 14, 2028. The revolving credit facility contains certain financial covenants that require the company to maintain a ratio of consolidated debt to consolidated capitalization not exceeding 0.35 :1 and consolidated shareholders’ equity of not less than $11.5 billion, both calculated as defined in such financial covenants. At December 31, 2023 and 2022, the revolving credit facility was undrawn and the company was in compliance with its financial covenants. Insurance and reinsurance companies (4) On December 26, 2023 the company consolidated Gulf Insurance as described in note 21, including its borrowings of $172.9 at December 31, 2023. (5) On May 9, 2023 Brit exercised the extension option on its $550.0 revolving credit facility to extend the expiry from December 31, 2025 to December 31, 2027. Non-insurance companies (6) On December 19, 2023 AGT extended the maturity of its credit facilities of Cdn$ 710.0 to March 16, 2025. (7) On August 15, 2023 Dexterra Group amended its revolving credit facility, increasing the credit facility from Cdn $200.0 to Cdn $260.0 and extending the maturity from September 7, 2024 to September 7, 2026. (8) On October 3, 2023 Fairfax India extended the maturity of its unused revolving credit facility of $175.0 from December 17, 2024 to October 2, 2026 while maintaining the option to extend for an additional year. |
Summary of changes in the carrying values of borrowings | Changes in the carrying values of borrowings for the years ended December 31 were as follows: 2023 2022 Insurance Insurance and Non- and Non- Holding reinsurance insurance Holding reinsurance insurance company companies companies Total company companies companies Total Balance – January 1 5,887.6 733.4 2,003.9 8,624.9 5,338.6 790.7 1,623.7 7,753.0 Cash inflows from issuances 393.9 — 228.6 622.5 743.4 — 47.0 790.4 Cash outflows from repayments (21.8) (7.8) (163.9) (193.5) — (0.3) (25.3) (25.6) Net cash inflows (outflows) from credit facilities and short term loans — (10.0) (185.4) (195.4) — (35.0) 304.1 269.1 Non-cash changes: Acquisitions of subsidiaries (note 21) 579.2 172.9 — 752.1 — — 137.1 137.1 Gain on redemption (1.7) (2.7) (24.3) (28.7) — — — — Foreign exchange effect and other 91.7 9.8 40.1 141.6 (194.4) (22.0) (82.7) (299.1) Balance – December 31 6,928.9 895.6 1,899.0 9,723.5 5,887.6 733.4 2,003.9 8,624.9 |
Schedule of principal repayments of borrowings | Principal repayments on borrowings are due as follows: 2024 2025 2026 2027 2028 Thereafter Total Holding company 708.6 165.0 598.1 658.0 1,428.5 3,495.4 7,053.6 Insurance and reinsurance companies 35.2 539.3 39.3 60.5 38.9 178.1 891.3 Non-insurance companies 376.3 354.1 124.5 174.9 512.0 364.5 1,906.3 Total 1,120.1 1,058.4 761.9 893.4 1,979.4 4,038.0 9,851.2 |
Total Equity (Tables)
Total Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Total Equity | |
Schedule of shares outstanding | The number of shares outstanding was as follows: 2023 2022 Subordinate voting shares – January 1 22,576,535 23,116,830 Purchases for cancellation (364,723) (387,790) Treasury shares acquired (110,528) (295,474) Treasury shares reissued 153,194 142,969 Subordinate voting shares – December 31 22,254,478 22,576,535 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 23,003,248 23,325,305 |
Schedule of dividends paid | 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 3, 2024 January 18, 2024 January 25, 2024 $ 15.00 $ 363.1 January 4, 2023 January 19, 2023 January 26, 2023 $ 10.00 $ 245.2 January 5, 2022 January 20, 2022 January 27, 2022 $ 10.00 $ 249.9 |
Schedule of preferred shares | The terms of the company’s cumulative five-year rate reset preferred shares at December 31, 2023 were as follows: Next possible Fixed Floating redemption and Number of Liquidation dividend dividend rate conversion shares Carrying preference per rate per date (1)(2) outstanding (3) value (3) Stated capital (3) share annum (4) per annum (5) 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 — 8.19 % 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 — 7.20 % 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 — 7.60 % 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 — 7.89 % Series K March 31, 2027 9,500,000 $ 231.7 Cdn $ 237.5 Cdn $ 25.00 5.05 % — 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 2023 and 2022. (4) The Series C, Series E, Series G, Series I, Series K and Series M preferred shares have a fixed dividend rate equal to the five-year Government of Canada hond yield plus 3.15% , 2.16% , 2.56% , 2.85% , 3.51% and 3.98% respectively, with rate resets on each subsequent five-year anniversary date. (5) 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 | Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax was comprised as follows: December 31, 2023 December 31, 2022 Restated Income tax Income tax Pre-tax (expense) After-tax Pre-tax (expense) After-tax amount recovery amount amount recovery amount Items that may be subsequently reclassified to net earnings Foreign currency translation losses (983.1) 42.2 (940.9) (906.4) 32.8 (873.6) Share of accumulated other comprehensive loss of associates, excluding net gains (losses) on defined benefit plans (169.0) 11.7 (157.3) (221.6) 17.6 (204.0) (1,152.1) 53.9 (1,098.2) (1,128.0) 50.4 (1,077.6) Items that will not be subsequently reclassified to net earnings Net gains (losses) on defined benefit plans (1.9) 9.9 8.0 43.8 (4.3) 39.5 Share of net gains (losses) on defined benefit plans of associates (9.1) (0.1) (9.2) 10.7 (4.7) 6.0 Other 153.1 (15.9) 137.2 43.5 5.7 49.2 142.1 (6.1) 136.0 98.0 (3.3) 94.7 Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax (1,010.0) 47.8 (962.2) (1,030.0) 47.1 (982.9) |
Schedule of income tax (expense) recovery included in other comprehensive income (loss) | Other comprehensive income (loss) in the consolidated statement of comprehensive income is presented net of the following income tax (expense) recovery amounts: 2023 2022 Restated Income tax on items that may be subsequently reclassified to net earnings Net unrealized foreign currency translation losses on foreign subsidiaries 15.5 8.5 Share of other comprehensive income (loss) of associates, excluding net gains (losses) on defined benefit plans (6.3) 18.1 9.2 26.6 Net unrealized foreign currency translation losses on associates reclassified to net earnings (0.1) — 9.1 26.6 Income tax on items that will not be subsequently reclassified to net earnings Net gains (losses) on defined benefit plans 15.1 (32.2) Share of net gains (losses) on defined benefit plans of associates 0.5 (10.2) Other (7.1) — 8.5 (42.4) Total income tax (expense) recovery included in other comprehensive income (loss) 17.6 (15.8) |
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, 2023 December 31, 2022 controlling interests Restated Economic Economic Ownership Carrying Ownership Carrying percentage (5) value percentage (5) value 2023 2022 Restated Insurance and reinsurance companies (1) Allied World (2)(3) 16.6 % 972.7 17.1 % 862.4 211.8 162.2 Brit (3) 13.8 % 881.2 13.8 % 736.4 188.1 41.0 Odyssey Group (3) 9.99 % 602.3 9.99 % 562.5 104.9 81.1 Gulf Insurance (4) 9.99 % 605.3 — — — — All other — 54.3 — 51.2 4.9 16.4 3,115.8 2,212.5 509.7 300.7 Non-insurance companies Restaurants and retail — 163.5 — 208.1 5.6 32.7 Fairfax India (5) 57.5 % 1,131.1 65.3 % 1,080.2 235.4 114.2 Thomas Cook India 35.4 % 86.0 26.7 % 61.3 6.0 1.1 Other — 254.0 — 340.8 (43.6) (11.2) 1,634.6 1,690.4 203.4 136.8 4,750.4 3,902.9 713.1 437.5 (1) Includes property and casualty insurance and reinsurance companies, Life insurance and Run-off, and the group holding companies. (2) On June 23, 2023 the company purchased shares from minority shareholders of Allied World for cash consideration of $30.6 , increasing its ownership interest in Allied World from 82.9% to 83.4% . Concurrently, certain terms of the Allied World shareholders agreement were amended to extend the company’s option to purchase the remaining interests of the minority shareholders in Allied World at certain dates from September 2024 to September 2026. On September 27, 2022 the company increased its ownership interest in Allied World to 82.9% from 70.9% for total consideration of $733.5 , inclusive of the fair value of a call option exercised and an accrued dividend paid, and recorded a loss in retained earnings of $163.3 in net changes in capitalization in the consolidated statement of changes in equity. (3) During 2023 the operating companies comprising the Global Insurers and Reinsurers reporting segment paid aggregate dividends of $180.3 (2022 - $248.8 ) to non-controlling interests. (4) On December 26, 2023 the company commenced consolidating Gulf Insurance as described in note 21. (5) At December 31, 2023 Fairfax India’s non-controlling interest economic ownership percentage was 57.5% (December 31, 2022 - 65.3% ) which differed from its non-controlling interest voting percentage of 4.8% (December 31, 2022 - 5.6% ). |
Schedule of capitalization | 2023 2022 Restated Common Non- Common Non- shareholders’ controlling shareholders’ controlling equity interests equity interests Purchase of certain securities held through AVLNs entered with RiverStone Barbados (note 7) (45.1) (178.0) 15.0 (357.1) Partial disposition of Thomas Cook India shares 45.8 19.8 — — Fairfax India share repurchases (1.9) (35.4) (9.9) (90.7) Acquisition of non-controlling interests in Allied World (3.0) (27.6) (163.3) (531.7) Privatization of Recipe — — (66.1) (276.2) Third party’s investment in Brit’s subsidiary Ki Insurance — — — 152.0 Other (63.0) (30.9) 116.4 (32.9) As presented in net changes in capitalization in the consolidated statement of changes in equity (67.2) (252.1) (107.9) (1,136.6) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per Share | |
Schedule of earnings per share | Net earnings per share is calculated using the weighted average common shares outstanding as follows: 2023 2022 Restated Net earnings attributable to shareholders of Fairfax 4,381.8 3,374.2 Preferred share dividends (49.7) (45.2) Net earnings attributable to common shareholders – basic and diluted 4,332.1 3,329.0 Weighted average common shares outstanding – basic 23,182,558 23,637,824 Share-based payment awards 1,823,558 1,702,599 Weighted average common shares outstanding – diluted 25,006,116 25,340,423 Net earnings per common share – basic $ 186.87 $ 140.83 Net earnings per common share – diluted $ 173.24 $ 131.37 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of provision for (recovery of) income taxes | The company’s provision for income taxes for the years ended December 31 were comprised as follows: 2023 2022 Restated Current income tax: Current year expense 648.8 616.8 Adjustments to prior years’ income taxes (8.7) (10.0) 640.1 606.8 Deferred income tax: Origination and reversal of temporary differences 193.4 474.0 Adjustments to prior years’ deferred income taxes (20.1) 11.7 173.3 485.7 Provision for income taxes 813.4 1,092.5 |
Schedule of earnings before income taxes by jurisdiction | A significant portion of the company’s earnings 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 before income taxes by jurisdiction and the associated provision for (recovery of) income taxes for the years ended December 31 are summarized in the following table: 2023 2022 Restated Canada (1) U.S. (2) U.K. (3) Other (4) Total Canada (1) U.S. (2) U.K. (3) Other (4) Total Earnings before income taxes 1,115.6 1,764.3 881.9 2,146.5 5,908.3 547.6 2,792.3 353.2 1,211.1 4,904.2 Provision for (recovery of) income taxes 234.9 362.2 (48.5) 264.8 813.4 153.6 545.3 103.4 290.2 1,092.5 Net earnings 880.7 1,402.1 930.4 1,881.7 5,094.9 394.0 2,247.0 249.8 920.9 3,811.7 (1) Includes Fairfax India. (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) Comprised of Brit. (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 | 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: 2023 2022 Restated Canadian statutory income tax rate 26.5 % 26.5 % Provision for income taxes at the Canadian statutory income tax rate 1,565.7 1,299.6 Non-taxable investment income (182.3) (25.6) Tax rate differential on income and losses outside Canada (473.2) (256.3) Change in unrecorded tax benefit of losses and temporary differences (9.7) (0.6) Change in tax rate for deferred income taxes (132.3) 34.5 Provision (recovery) relating to prior years (28.8) 1.7 Foreign exchange effect 12.5 (17.0) Other including permanent differences 61.5 56.2 Provision for income taxes 813.4 1,092.5 |
Schedule of income taxes refundable and payable | Income taxes refundable and payable were as follows: December 31, December 31, 2023 2022 Income taxes refundable 59.0 67.1 Income taxes payable (306.9) (361.0) Net income taxes payable (247.9) (293.9) |
Schedule of changes net income taxes (payable) refundable | Changes in net income taxes (payable) refundable during the years ended December 31 were as follows: 2023 2022 Balance - January 1 (293.9) (116.7) Amounts recorded in the consolidated statements of earnings (640.1) (606.8) Payments made during the year 713.9 416.4 Acquisitions of subsidiaries (note 21) (31.3) — Foreign exchange effect and other 3.5 13.2 Balance - December 31 (247.9) (293.9) |
Schedule of changes in net deferred income tax asset | Changes in the net deferred income tax asset (liability) during the years ended December 31 were as follows: 2023 Operating Insurance and and capital reinsurance Intangible Tax losses Investments held contracts assets credits Other Total Balance - January 1 226.8 (193.0) (382.8) (376.1) 75.4 (81.0) (730.7) Amounts recorded in the consolidated statement of earnings 57.2 (411.8) 41.1 116.6 (20.2) 43.8 (173.3) Amounts recorded in total equity 15.0 (5.8) — — — 5.8 15.0 Acquisitions of subsidiaries (note 21) (0.3) 2.7 (4.1) (46.2) — (13.0) (60.9) Foreign exchange effect and other 14.7 (3.9) (12.2) (2.6) (21.6) 26.3 0.7 Balance - December 31 313.4 (611.8) (358.0) (308.3) 33.6 (18.1) (949.2) 2022 Restated Operating Insurance and and capital reinsurance Intangible Tax losses Investments held contracts assets credits Other Total Balance - January 1 230.0 (414.5) 207.8 (413.1) 213.6 38.8 (137.4) Amounts recorded in the consolidated statement of earnings (7.1) 197.2 (588.9) 30.9 (137.1) 19.3 (485.7) Amounts recorded in total equity 8.0 20.1 — — — (44.0) (15.9) Acquisitions of subsidiaries (note 21) 3.3 (11.4) 0.1 (1.9) — (52.6) (62.5) Foreign exchange effect and other (7.4) 15.6 (1.8) 8.0 (1.1) (42.5) (29.2) Balance - December 31 226.8 (193.0) (382.8) (376.1) 75.4 (81.0) (730.7) |
Statutory Requirements (Tables)
Statutory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Requirements | |
Schedule of maximum dividend capacity available | Based on the surplus and net earnings (loss) of the primary insurance and reinsurance subsidiaries as at and for the year ended December 31, 2023, the maximum dividend capacity available in 2024 at each of those subsidiaries, payable to all shareholders (including non-controlling interests) is as follows: December 31, 2023 North American Insurers Northbridge (1) 572.6 Crum & Forster 228.2 Zenith National 205.3 1,006.1 Global Insurers and Reinsurers Allied World 1,231.2 Odyssey Group 554.9 Brit 125.7 1,911.8 International Insurers and Reinsurers Gulf Insurance 84.9 3,002.8 (1) Subject to prior regulatory approval. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Gulf Insurance | |
Disclosure of detailed information about business combination [line items] | |
Schedule of preliminary fair value of assets acquired and liabilities assumed | The preliminary determination of the fair value of assets acquired and liabilities assumed are summarized in the table that follows and may be revised when estimates, assumptions and valuations are finalized within twelve months of the acquisition date: Gulf Insurance Acquisition date December 26, 2023 Percentage of common shares acquired 90.0 % Assets: Portfolio investments (1) 2,372.6 Reinsurance contract assets held 571.3 Deferred income tax assets 13.8 Goodwill and intangible assets (2) 937.5 Other assets (3) 501.3 Total assets 4,396.5 Liabilities: Accounts payable and accrued liabilities (4) 292.0 Deferred income tax liabilities 77.0 Insurance contract payables 34.8 Insurance contract liabilities 1,745.4 Borrowings - holding company and insurance and reinsurance companies 172.9 Total liabilities 2,322.1 Non-controlling interests (5) 605.3 Purchase consideration (6) 1,469.1 4,396.5 (1) Included subsidiary cash and cash equivalents of $459.9 , of which $31.3 was restricted. (2) Comprised of goodwill of $330.5 and intangible assets of $607.0 (primarily customer relationships of $260.0 , distribution networks of $223.9 and brand names of $123.0 ). (3) Primarily includes premises and equipment ( $178.9 ), unit-linked life investment contracts ( $138.1 ), accounts receivable ( $50.2 ) and prepaid expenses ( $43.1 ). (4) Primarily includes other accounts payable ( $87.5 ), accrued compensation costs ( $75.6 ) and income taxes payable ( $37.9 ). (5) Includes the non-controlling interests arising from Gulf Insurance’s non-wholly owned subsidiaries and the 9.99% equity interest in Gulf Insurance that was not acquired by the company on closing, with the allocation of all of the non-controlling interests to Gulf Insurance’s property and casualty insurance operations within the company’s International Insurers and Reinsurers reporting segment. Non-controlling interests in Gulf Insurance were measured as the proportionate share of the identifiable net assets acquired. (6) Comprised of cash consideration of $176.9 and the fair value of the payment deed of $579.2 paid to KIPCO for the 46.3% equity interest in Gulf Insurance, and the company’s existing 43.7% equity interest in Gulf Insurance with a fair value of $713.0 . |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Risk Management | |
Schedule of concentration of insurance risk by geographic region and line of business based on net insurance revenue | The table that follows presents the company’s concentration of insurance risk by geographic region and line of business based on net insurance revenue (calculated by the company as insurance revenue less cost of reinsurance). The company’s exposure to general insurance risk varies by geographic region and may change over time. Canada United States Asia (1) International (2) Total 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Property 1,268.1 1,156.2 4,021.1 3,527.0 735.0 597.4 1,774.6 1,471.6 7,798.8 6,752.2 Casualty 1,124.4 1,105.1 9,188.7 8,975.3 556.0 482.8 1,542.6 1,356.2 12,411.7 11,919.4 Specialty 94.1 106.2 708.6 609.8 233.8 207.8 710.4 598.9 1,746.9 1,522.7 Total 2,486.6 2,367.5 13,918.4 13,112.1 1,524.8 1,288.0 4,027.6 3,426.7 21,957.4 20,194.3 Insurance 2,772.7 2,644.4 16,922.7 15,930.8 1,958.6 1,586.6 5,280.8 4,541.7 26,934.8 24,703.5 Reinsurance (286.1) (276.9) (3,004.3) (2,818.7) (433.8) (298.6) (1,253.2) (1,115.0) (4,977.4) (4,509.2) 2,486.6 2,367.5 13,918.4 13,112.1 1,524.8 1,288.0 4,027.6 3,426.7 21,957.4 20,194.3 (1) The Asia geographic segment is primarily comprised of countries located throughout Asia, including China, Japan, India, Sri Lanka, Malaysia, Singapore, Indonesia and South Korea, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe, Africa and Oceania. |
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, 2023 2022 Restated Cash and short term investments 8,092.8 10,386.0 Investments in debt instruments: U.S. sovereign government (1) 16,273.5 14,378.8 Other sovereign government rated AA/Aa or higher (1)(2) 4,046.8 2,413.5 All other sovereign government (3) 3,367.1 2,210.2 Canadian provincials 243.5 284.1 U.S. states and municipalities 184.5 262.7 Corporate and other (4)(5) 13,325.6 9,451.9 Receivable from counterparties to derivative contracts 656.6 256.1 Insurance contract receivables 926.1 648.9 Reinsurance contract assets held 10,887.7 9,691.5 Other assets (6) 2,174.2 1,928.3 Total gross credit risk exposure 60,178.4 51,912.0 (1) Represented together 31.4% of the company’s total investment portfolio at December 31, 2023 (December 31, 2022 - 30.3% ) and considered by the company to have nominal credit risk. (2) Comprised primarily of bonds issued by the governments of Canada, Australia and the United Kingdom with fair values at December 31, 2023 of $2,471.6 , $378.5 and $321.8 respectively (December 31, 2022 - $1,923.5 , $46.5 and $180.6 ). (3) Comprised primarily of bonds issued by the governments of Greece, Brazil and Saudi Arabia with fair values at December 31, 2023 of $1,234.6 , $884.4 and $239.8 respectively (December 31, 2022 - $690.1 , $744.2 and nil ). (4) Represents 20.6% of the company’s total investment portfolio at December 31, 2023 compared to 17.0% at December 31, 2022, with the increase principally related to net purchases of unrated first mortgage loans of $2,261.5 (principally from Pacific Western Bank) and corporate bonds of $817.9 , and the consolidation of Gulf Insurance’s corporate and other bond portfolio of $516.7 . (5) Includes the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 - $2,500.7 ) secured by real estate predominantly in the U.S., Europe and Canada as described in note 5. (6) Excludes assets associated with unit-linked insurance products of $1,204.0 at December 31, 2023 (December 31, 2022 – $676.5 ) for which credit risk is not borne by the company, and income taxes refundable of $59.0 at December 31, 2023 (December 31, 2022 - $67.1 ) that are considered to have nominal credit risk. |
Schedule of investments in debt instruments | 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, 2023 December 31, 2022 Amortized Fair Amortized Fair Issuer Credit Rating cost value % cost value % AAA/Aaa 19,301.4 19,670.5 52.5 17,119.4 16,721.6 57.7 AA/Aa 1,490.9 1,521.9 4.1 858.3 847.6 2.9 A/A 3,977.9 4,012.7 10.7 2,409.6 2,330.6 8.0 BBB/Baa 4,420.3 4,414.2 11.8 3,410.3 3,348.7 11.5 BB/Ba 1,422.0 1,445.9 3.9 2,114.9 1,917.2 6.6 B/B 184.0 182.5 0.5 48.2 49.6 0.2 Lower than B/B 87.6 113.7 0.3 79.7 80.0 0.3 Unrated (1) 6,210.2 6,079.6 16.2 3,928.2 3,705.9 12.8 Total 37,094.3 37,441.0 100.0 29,968.6 29,001.2 100.0 (1) Includes the company’s investments in first mortgage loans at December 31, 2023 of $4,685.4 (December 31, 2022 - $2,500.7 ) secured by real estate predominantly in the U.S., Europe and Canada. Unrated debt instruments also include the fair value of the company’s investments in Amynta Agency Inc. of $159.7 (December 31, 2022 – $32.5 ), Blackberry Limited of $148.9 (December 31, 2022 – $285.0 ), ONX Inc. of $125.6 (December 31, 2022 - $25.0 ), Mytilineos S.A. of $101.4 (December 31, 2022 - nil ), and the consolidation of Gulf Insurance’s bond portfolio of $140.8 which is principally comprised of corporate and other bonds. |
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, 2023 2022 Total derivative assets (1) 656.6 256.1 Obligations that may be offset under net settlement arrangements (48.8) (33.0) Fair value of collateral deposited for the benefit of the company (2) (527.9) (216.0) Excess collateral pledged by the company in favour of counterparties 7.2 4.6 Net derivative counterparty exposure after net settlement and collateral arrangements 87.1 11.7 (1) Excludes equity warrants, equity call options, and other derivatives which are not subject to counterparty risk. Also excludes at December 31, 2022 the AVLNs entered with RiverStone Barbados. (2) Excludes excess collateral pledged by counterparties of $6.6 at December 31, 2023 (December 31, 2022 - $68.4 ). |
Schedule of maturity profile of the company's insurance contract liabilities | The following table sets out the maturity profile of the company’s insurance contract liabilities based on the expected undiscounted future cash flows, excluding the risk adjustment: Maturity profile of insurance contract liabilities (1) 1 year or less 1-2 years 2-3 years 3-4 years 4-5 years More than 5 years Total December 31, 2023 15,080.6 7,544.2 5,414.4 3,972.1 3,168.5 11,111.8 46,291.6 December 31, 2022 12,550.3 7,487.2 5,048.8 3,868.9 2,596.8 9,928.3 41,480.3 (1) Excludes the liability for remaining coverage for contracts measured under the PAA. |
Schedule of maturity profile of the financial and insurance liabilities | The following tables set out the maturity profile of the company’s financial liabilities based on the expected undiscounted cash flows from the balance sheet date to the contractual maturity date or the settlement date: December 31, 2023 3 months 3 months 1 - 3 3 - 5 More than or less to 1 year years years 5 years Total Accounts payable and accrued liabilities (1) 1,857.5 1,210.8 920.9 350.9 591.3 4,931.4 Insurance contract payables 422.0 96.5 304.3 132.8 251.3 1,206.9 Borrowings - holding company and insurance and reinsurance companies: Principal 545.3 (2) 198.5 1,341.7 2,185.9 3,673.5 (3) 7,944.9 Interest 90.4 247.4 611.1 480.8 531.0 (3) 1,960.7 Borrowings - non-insurance companies: Principal 28.4 347.9 478.6 686.9 364.5 1,906.3 Interest 31.0 71.2 144.5 80.7 70.7 398.1 2,974.6 2,172.3 3,801.1 3,918.0 5,482.3 18,348.3 (1) Excludes pension and post retirement liabilities, deferred gift card, hospitality and other revenue, accrued interest expense and other. (2) Includes the redemptions of the August 2024 and March 2025 unsecured senior notes as described in note 15. (3) Excludes the re-opening of the December 2023 unsecured senior notes of $200.0 completed subsequent to December 31, 2023 as described in note 15. December 31, 2022 Restated 3 months 3 months 1 - 3 3 - 5 More than or less to 1 year years years 5 years Total Accounts payable and accrued liabilities (1) 1,458.3 1,047.0 899.5 363.1 559.1 4,327.0 Insurance contract payables 490.3 312.3 57.2 317.0 225.9 1,402.7 Borrowings - holding company and insurance and reinsurance companies: Principal 0.1 0.2 1,051.4 904.2 4,704.4 6,660.3 Interest 84.3 209.2 567.0 462.2 598.9 1,921.6 Borrowings - non-insurance companies: Principal 254.5 117.3 781.9 61.3 798.2 2,013.2 Interest 26.9 69.0 148.6 83.6 83.1 411.2 2,314.4 1,755.0 3,505.6 2,191.4 6,969.6 16,736.0 (1) Excludes pension and post retirement liabilities, deferred gift card, hospitality and other revenue, accrued interest expense and other. |
Schedule 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, 2023 December 31, 2022 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 28.5 0.1 3.9 32.5 19.1 0.3 — 19.4 Foreign currency forward and swap contracts 97.6 0.9 60.3 158.8 51.1 5.0 50.7 106.8 Other derivative contracts 90.3 134.9 28.4 253.6 25.6 38.5 0.7 64.8 216.4 135.9 92.6 444.9 95.8 43.8 51.4 191.0 |
Summary of impact changes in interest rate 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 increased inflationary pressures and interest rates. This analysis was performed on each individual security to determine the hypothetical effect on net earnings. December 31, 2023 December 31, 2022 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 35,043.3 (1,934.7) (6.4) 27,944.0 (852.9) (3.7) 100 basis point increase 36,212.0 (991.9) (3.3) 28,461.5 (435.4) (1.9) No change 37,441.0 — — 29,001.2 — — 100 basis point decrease 38,803.0 1,098.1 3.6 29,616.2 496.4 2.1 200 basis point decrease 40,274.9 2,284.7 7.6 30,289.0 1,039.7 4.4 (1) Includes the impact of forward contracts to sell long dated U.S. treasury bonds with a notional amount at December 31, 2023 of $292.8 (December 31, 2022 – $183.7 ) and certain interest rate swaps to receive fixed rates in exchange for the obligation to pay floating rates on a notional amount of $1,900.0 (December 31, 2022 - nil ). |
Summary of impact changes in net liability for incurred claims | The table below displays the potential effects of 100 and 200 basis point parallel increases and decreases in interest rates on the net liability for incurred claims for insurance contracts, excluding the company’s life insurance operations (as a provision for life policy benefits is principally included within the LRC), at December 31, 2023 and 2022, and the hypothetical effect on net earnings: December 31, 2023 December 31, 2022 Net liability for Hypothetical Net liability for Hypothetical incurred change in net incurred change in net claims (1) earnings claims (1) earnings Change in interest rates 200 basis point increase 28,081.6 1,278.6 25,254.5 1,233.7 100 basis point increase 28,862.7 655.3 25,864.4 623.9 No change 29,688.4 — 26,488.3 — 100 basis point decrease 30,625.0 (751.5) 27,127.6 (639.3) 200 basis point decrease 31,627.3 (1,551.7) 27,784.0 (1,295.8) (1) |
Schedule of long equity exposures and financial effects | The following table summarizes the effect of the company’s equity and equity-related holdings on the company’s financial position as at December 31, 2023 and 2022 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, 2023 of $9,496.6 (December 31, 2022 – $8,183.3) as a component of its equity and equity-related holdings when assessing its equity exposures. Year ended Year ended December 31, December 31, December 31, 2023 December 31, 2022 2023 2022 Exposure/ Exposure/ Notional Carrying Notional Carrying Pre-tax Pre-tax amount value amount value earnings (loss) earnings (loss) Long equity exposures: Common stocks 7,317.8 7,317.8 5,234.4 5,234.4 464.4 (242.7) Bonds and preferred stocks – convertible (1) 414.0 414.0 458.7 458.7 77.1 (241.4) Investments in associates (1)(2) 9,496.6 7,668.6 8,183.3 6,786.6 322.0 45.1 Equity derivatives (3) 2,060.2 563.2 2,076.0 269.4 357.2 190.8 Other — — — — (3.1) 4.4 Long equity exposures and financial effects 19,288.6 15,963.6 15,952.4 12,749.1 1,217.6 (243.8) (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) Pre-tax earnings (loss) excludes share of profit (loss) of associates, and includes gain (loss) on sale of non-insurance associates and joint ventures. (3) Includes net gains on investments of $624.8 (2022 - $255.4 ) recognized on the company’s investment in long equity total return swaps on Fairfax subordinate voting shares. |
Schedule of potential impact on net earnings due to changes in global equity markets | 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 as a result of changes in global equity markets at December 31, 2023 and 2022. The analysis assumes variations of 10% and 20% (December 31, 2022 - 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, 2023 Change in global equity markets 20% increase 10% increase No change 10% decrease 20% decrease Fair value of equity and equity-related holdings 11,707.2 10,742.2 9,792.0 8,872.2 8,001.8 Hypothetical $ change in net earnings 1,622.6 805.4 — (781.1) (1,522.8) Hypothetical % change in fair value 19.6 9.7 — (9.4) (18.3) December 31, 2022 Change in global equity markets 20% increase 10% increase No change 10% decrease 20% decrease Fair value of equity and equity-related holdings 9,297.5 8,531.9 7,769.1 7,010.3 6,258.5 Hypothetical $ change in net earnings 1,301.9 649.8 — (646.8) (1,287.8) Hypothetical % change in fair value 19.7 9.8 — (9.8) (19.4) |
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: 2023 2022 Restated Net gains (losses) on investments: Investing activities 111.4 (367.0) Underwriting activities (170.2) 169.8 Foreign currency contracts (60.0) 53.6 Foreign currency net losses (118.8) (143.6) |
Schedule of foreign currency effects on the consolidated statement of earnings | Foreign currency effects on the consolidated statements of earnings British Canadian dollar Euro pound sterling Indian rupee 2023 2022 2023 2022 2023 2022 2023 2022 Restated Restated Restated Restated Assets 1,938.1 1,602.8 1,190.2 830.2 1,363.5 1,370.3 1,841.3 1,858.4 Liabilities (723.7) (465.3) (1,503.6) (1,079.8) (2,048.3) (1,747.4) (220.9) (190.5) Net asset (liability) exposure 1,214.4 1,137.5 (313.4) (249.6) (684.8) (377.1) 1,620.4 1,667.9 Notional long (short) amount of foreign currency forward contracts (1,387.0) (1,258.2) (833.5) (208.7) (64.1) 87.0 — 3.4 Net asset (liability) exposure after foreign currency forward contracts (172.6) (120.7) (1,146.9) (458.3) (748.9) (290.1) 1,620.4 1,671.3 Hypothetical change in pre-tax earnings (loss) 17.3 12.1 114.7 45.8 74.8 29.0 (162.0) (167.1) Hypothetical change in net earnings (loss) 16.2 8.9 96.2 36.8 63.1 25.9 (160.1) (164.9) |
Schedule of foreign currency effects on the consolidated statement of other comprehensive income | Foreign currency effects on the consolidated statements of other comprehensive income British Canadian dollar Euro pound sterling Indian rupee 2023 2022 2023 2022 2023 2022 2023 2022 Restated Restated Restated Assets 11,437.4 10,712.5 9,393.8 7,937.1 2,255.9 1,818.7 4,110.8 3,697.6 Liabilities (6,583.4) (6,117.3) (7,064.4) (6,144.2) (1,502.3) (1,379.7) (1,349.3) (1,251.3) Net asset exposure before hedge of net investment 4,854.0 4,595.2 2,329.4 1,792.9 753.6 439.0 2,761.5 2,446.3 Hedge of net investment (2,107.6) (2,057.7) (821.5) (792.2) — — — — Net asset exposure after hedge of net investment 2,746.4 2,537.5 1,507.9 1,000.7 753.6 439.0 2,761.5 2,446.3 Hypothetical change in pre-tax other comprehensive income (loss) (274.6) (253.7) (150.8) (100.1) (75.4) (43.9) (276.2) (244.6) Hypothetical change in other comprehensive income (loss) (269.6) (248.2) (112.2) (72.5) (69.3) (43.0) (260.9) (228.0) |
Schedule of capital measurement and ratios | 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, 2023 2022 2023 2022 Restated Restated Holding company cash and investments (net of derivative obligations) 1,749.1 1,326.4 1,749.1 1,326.4 Borrowings – holding company 6,928.9 5,887.6 6,928.9 5,887.6 Borrowings – insurance and reinsurance companies 895.6 733.4 895.6 733.4 Borrowings – non-insurance companies 1,899.0 2,003.9 — — Total debt 9,723.5 8,624.9 7,824.5 6,621.0 Net debt (1) 7,974.4 7,298.5 6,075.4 5,294.6 Common shareholders’ equity 21,615.0 17,780.3 21,615.0 17,780.3 Preferred stock 1,335.5 1,335.5 1,335.5 1,335.5 Non-controlling interests 4,750.4 3,902.9 3,115.8 2,212.5 Total equity 27,700.9 23,018.7 26,066.3 21,328.3 Net debt/total equity 28.8 % 31.7 % 23.3 % 24.8 % Net debt/net total capital (2) 22.4 % 24.1 % 18.9 % 19.9 % Total debt/total capital (3) 26.0 % 27.3 % 23.1 % 23.7 % Interest coverage (4) 13.8x 13.1x 18.1x (6) 16.0x (6) Interest and preferred share dividend distribution coverage (5) 12.1x 11.4x 15.0x (6) 13.4x (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, 2023 | |
Segmented Information | |
Schedule of earnings by reporting segment | 2023 Property and Casualty Insurance and Reinsurance North Global International Life insurance Non- American Insurers and Insurers and and insurance Insurers Reinsurers Reinsurers Total Run-off companies Total Reporting segment insurance revenue 8,137.2 15,600.3 3,453.8 27,191.3 149.9 — 27,341.2 Intercompany insurance revenue (59.5) (120.1) (212.4) (392.0) (14.4) — (406.4) Insurance revenue 8,077.7 15,480.2 3,241.4 26,799.3 135.5 — 26,934.8 Insurance service result 977.1 2,828.0 330.8 4,135.9 (179.5) — 3,956.4 Other insurance operating expenses (280.8) (360.4) (180.9) (822.1) (144.3) — (966.4) Interest and dividends (1) 443.3 1,031.1 180.3 1,654.7 103.0 (76.1) 1,681.6 Share of profit of associates 165.1 469.2 127.3 761.6 76.2 152.2 990.0 Non-insurance revenue — — — — — 6,614.5 6,614.5 Non-insurance expenses — — — — — (6,568.7) (6,568.7) Operating income (loss) 1,304.7 3,967.9 457.5 5,730.1 (144.6) 121.9 5,707.4 Net finance expense from insurance contracts and reinsurance contract assets held (1,605.6) Net gains on investments 1,949.5 Gain on sale and consolidation of insurance subsidiaries (note 21) 549.8 Interest expense (510.0) Corporate overhead and other (2) (182.8) Pre-tax income 5,908.3 Provision for income taxes (813.4) Net earnings 5,094.9 Attributable to: Shareholders of Fairfax 4,381.8 Non-controlling interests 713.1 5,094.9 2022 Restated Property and Casualty Insurance and Reinsurance North Global International Life insurance Non- American Insurers and Insurers and and insurance Insurers Reinsurers Reinsurers Total Run-off companies Total Reporting segment insurance revenue 7,260.6 14,790.2 2,852.1 24,902.9 139.8 — 25,042.7 Intercompany insurance revenue (45.9) (96.8) (196.5) (339.2) — — (339.2) Insurance revenue 7,214.7 14,693.4 2,655.6 24,563.7 139.8 — 24,703.5 Insurance service result 964.0 1,886.7 230.2 3,080.9 (80.0) — 3,000.9 Other insurance operating expenses (262.3) (293.9) (145.6) (701.8) 45.4 — (656.4) Interest and dividends (1) 234.0 413.3 98.8 746.1 55.6 26.6 828.3 Share of profit of associates 239.8 429.3 52.4 721.5 56.4 134.0 911.9 Non-insurance revenue — — — — — 5,581.6 5,581.6 Non-insurance expenses — — — — — (5,520.9) (5,520.9) Operating income 1,175.5 2,435.4 235.8 3,846.7 77.4 221.3 4,145.4 Net finance income from insurance contracts and reinsurance contract assets held 1,617.3 Net losses on investments (1,573.2) Gain on sale and consolidation of insurance subsidiaries (note 21) 1,219.7 Interest expense (452.8) Corporate overhead and other (2) (52.2) Pre-tax income 4,904.2 Provision for income taxes (1,092.5) Net earnings 3,811.7 Attributable to: Shareholders of Fairfax 3,374.2 Non-controlling interests 437.5 3,811.7 (1) Presented net of investment management and administration fees paid to the holding company. These intercompany fees are eliminated in corporate overhead and other as shown in the footnote below. (2) Comprised principally of the expenses of the group holding companies, net of investment management and administration fees earned by the holding company, interest and dividends earned on holding company cash and investments and holding company share of profit of associates, as shown below. |
Schedule of corporate overhead | 2023 2022 Corporate overhead as presented in the consolidated statements of earnings 430.2 296.7 Holding company interest and dividends 31.0 (9.6) Holding company share of profit of associates (32.2) (110.5) Investment management and administration fee income and other (246.2) (124.4) Corporate overhead and other as presented in the tables above 182.8 52.2 |
Schedule of 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 2023 2022 2023 2022 2023 2022 2023 2022 Restated Restated Restated Property and Casualty Insurance and Reinsurance North American Insurers 1,136.3 1,217.7 — — 18,133.1 16,323.1 10,831.0 9,807.4 Global Insurers and Reinsurers 3,337.7 2,893.3 — — 46,713.3 41,720.6 30,233.2 27,525.2 International Insurers and Reinsurers 845.6 592.0 343.4 — 12,648.3 7,662.1 6,192.1 3,656.6 5,319.6 4,703.0 343.4 — 77,494.7 65,705.8 47,256.3 40,989.2 Life insurance and Run-off 429.5 348.1 — 0.4 6,541.9 5,928.5 5,448.1 4,927.6 Non-insurance companies 1,460.6 1,378.5 12.4 151.6 9,049.6 8,611.4 5,012.5 4,820.6 Holding company and eliminations and adjustments 827.6 1,006.1 — — (1,101.1) (1,427.2) 6,567.3 5,062.4 Consolidated 8,037.3 7,435.7 355.8 152.0 91,985.1 78,818.5 64,284.2 55,799.8 |
Schedule of net insurance revenue on a third party basis by product line | Insurance revenue on a third party basis by product line for the years ended December 31 were as follows: Property Casualty Specialty Total 2023 2022 2023 2022 2023 2022 2023 2022 Property and Casualty Insurance and Reinsurance North American Insurers 2,001.5 1,712.8 5,634.6 5,078.7 441.6 423.2 8,077.7 7,214.7 Global Insurers and Reinsurers 5,848.2 5,239.6 8,561.7 8,516.3 1,070.3 937.5 15,480.2 14,693.4 International Insurers and Reinsurers 1,893.5 1,534.1 738.9 640.0 609.0 481.5 3,241.4 2,655.6 9,743.2 8,486.5 14,935.2 14,235.0 2,120.9 1,842.2 26,799.3 24,563.7 Life insurance and Run-off — — 13.2 21.4 122.3 118.4 135.5 139.8 Insurance revenue 9,743.2 8,486.5 14,948.4 14,256.4 2,243.2 1,960.6 26,934.8 24,703.5 Distribution of insurance revenue 36.2 % 34.4 % 55.5 % 57.7 % 8.3 % 7.9 % 100.0 % 100.0 % |
Schedule of net insurance revenue on a third party basis by geographic region | Insurance revenue on a third party basis by geographic region for the years ended December 31 were as follows: Canada United States Asia (1) International (2) Total 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Property and Casualty Insurance and Reinsurance North American Insurers 2,287.1 2,162.0 5,760.3 5,025.2 1.4 1.8 28.9 25.7 8,077.7 7,214.7 Global Insurers and Reinsurers 485.4 482.2 11,148.1 10,879.8 963.2 881.3 2,883.5 2,450.1 15,480.2 14,693.4 International Insurers and Reinsurers 0.2 — 1.1 4.8 994.0 703.4 2,246.1 1,947.4 3,241.4 2,655.6 2,772.7 2,644.2 16,909.5 15,909.8 1,958.6 1,586.5 5,158.5 4,423.2 26,799.3 24,563.7 Life insurance and Run-off — — 13.2 21.4 — — 122.3 118.4 135.5 139.8 Insurance revenue 2,772.7 2,644.2 16,922.7 15,931.2 1,958.6 1,586.5 5,280.8 4,541.6 26,934.8 24,703.5 Distribution of insurance revenue 10.3 % 10.7 % 62.8 % 64.5 % 7.3 % 6.4 % 19.6 % 18.4 % 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 South Korea, and the Middle East. (2) The International geographic segment is primarily comprised of countries located in South America, Europe, Africa and Oceania. |
Schedule of revenue and expenses of the non-insurance companies reporting segment | 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 (3) Total 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Revenue 1,772.3 1,710.3 263.3 216.7 941.6 611.0 3,637.3 3,043.6 6,614.5 5,581.6 Expenses (1,690.7) (1,582.2) (251.4) (208.1) (906.5) (600.8) (3,720.1) (3,129.8) (6,568.7) (5,520.9) Pre-tax income (loss) before interest expense and other (4) 81.6 128.1 11.9 8.6 35.1 10.2 (82.8) (86.2) 45.8 60.7 Interest and dividends 9.9 9.9 (87.4) 21.4 — — 1.4 (4.7) (76.1) 26.6 Share of profit (loss) of associates — (0.1) 151.1 132.0 (0.1) 0.3 1.2 1.8 152.2 134.0 Operating income (loss) 91.5 137.9 75.6 162.0 35.0 10.5 (80.2) (89.1) 121.9 221.3 (1) These results differ from those published by Fairfax India primarily due to Fairfax India’s application of investment entity accounting under IFRS Accounting Standards. (2) These results differ from those published by Thomas Cook India primarily due to differences between IFRS Accounting Standards and Ind AS, and acquisition accounting adjustments. (3) Included in Expenses is a non-cash goodwill impairment charge recognized on Farmers Edge of $63.5 (2022 - $133.4 ). (4) Excludes interest and dividends, share of profit (loss) of associates and net gains (losses) on investments. |
Schedule of segmented balance sheet | December 31, 2023 December 31, 2022 Restated Property Property and and casualty Life casualty Life insurance and insurance Non- Corporate insurance and insurance Non- Corporate reinsurance and insurance and reinsurance and insurance and companies Run-off companies eliminations (3) Consolidated companies Run-off companies eliminations (3) Consolidated Assets Holding company cash and investments 270.9 — — 1,510.7 1,781.6 316.6 — — 1,029.2 1,345.8 Insurance contract receivables 915.3 10.8 — — 926.1 636.2 12.7 — — 648.9 Portfolio investments (1) 58,180.0 4,318.0 2,496.5 (1,572.4) 63,422.1 49,038.8 4,275.4 2,119.3 (1,108.8) 54,324.7 Reinsurance contract assets held 11,373.4 454.3 — (940.0) 10,887.7 10,310.9 413.4 — (1,032.8) 9,691.5 Deferred income tax assets 17.8 1.3 54.1 227.9 301.1 (40.6) (6.4) 54.5 129.8 137.3 Goodwill and intangible assets 4,245.7 8.4 2,121.6 0.6 6,376.3 3,396.8 7.5 2,284.4 0.3 5,689.0 Due from affiliates 250.8 338.8 — (589.6) — 206.3 364.1 — (570.4) — Other assets 2,059.8 1,394.8 4,377.4 458.2 8,290.2 1,673.7 832.5 4,153.2 321.9 6,981.3 Investments in Fairfax insurance and reinsurance affiliates (2) 181.0 15.5 — (196.5) — 167.1 29.3 — (196.4) — Total assets 77,494.7 6,541.9 9,049.6 (1,101.1) 91,985.1 65,705.8 5,928.5 8,611.4 (1,427.2) 78,818.5 Liabilities Accounts payable and accrued liabilities 2,083.7 257.6 2,625.6 520.3 5,487.2 1,901.8 257.6 2,430.7 216.5 4,806.6 Derivative obligations 351.4 — 61.0 32.5 444.9 113.5 — 58.2 19.3 191.0 Deferred income tax liabilities 672.5 69.6 274.2 234.0 1,250.3 516.7 43.2 252.4 55.7 868.0 Insurance contract payables 553.5 653.4 — — 1,206.9 785.4 617.3 — — 1,402.7 Insurance contract liabilities 42,649.9 4,466.7 — (945.2) 46,171.4 36,921.3 4,009.2 — (1,023.9) 39,906.6 Due to affiliates 49.7 0.8 159.9 (210.4) — 17.1 0.3 82.4 (99.8) — Borrowings - holding company and insurance and reinsurance companies 895.6 — — 6,928.9 7,824.5 733.4 — — 5,887.6 6,621.0 Borrowings - non-insurance companies — — 1,891.8 7.2 1,899.0 — — 1,996.9 7.0 2,003.9 Total liabilities 47,256.3 5,448.1 5,012.5 6,567.3 64,284.2 40,989.2 4,927.6 4,820.6 5,062.4 55,799.8 Equity Shareholders’ equity attributable to shareholders of Fairfax 27,134.9 1,081.5 2,402.5 (7,668.4) 22,950.5 22,504.1 1,000.9 2,100.4 (6,489.6) 19,115.8 Non-controlling interests 3,103.5 12.3 1,634.6 — 4,750.4 2,212.5 — 1,690.4 — 3,902.9 Total equity 30,238.4 1,093.8 4,037.1 (7,668.4) 27,700.9 24,716.6 1,000.9 3,790.8 (6,489.6) 23,018.7 Total liabilities and total equity 77,494.7 6,541.9 9,049.6 (1,101.1) 91,985.1 65,705.8 5,928.5 8,611.4 (1,427.2) 78,818.5 (1) Includes intercompany investments in Fairfax non-insurance subsidiaries carried at cost that are eliminated on consolidation. (2) Intercompany investments in Fairfax insurance and reinsurance subsidiaries carried at cost that are eliminated on consolidation. (3) 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 affiliated primary insurers. |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Expenses | |
Schedule of expenses | Expenses for the company’s insurance and reinsurance companies and non-insurance companies for the years ended December 31 were comprised as follows: Year ended December 31, 2023 Non-insurance Insurance and reinsurance companies (1) companies Total Non-directly attributable Directly attributable expenses expenses Total expenses of insurance Insurance Total directly Other and acquisition Other attributable operating reinsurance Non-insurance cash flows expenses expenses expenses companies expenses Losses on claims, net (2) — 11,992.5 11,992.5 — 11,992.5 — 11,992.5 Premium taxes 276.0 — 276.0 — 276.0 — 276.0 Commissions 3,582.7 — 3,582.7 — 3,582.7 — 3,582.7 Cost of sales — — — — — 4,059.6 4,059.6 Compensation expense 586.3 863.5 1,449.8 772.7 2,222.5 1,120.4 3,342.9 Administrative expense and other 297.2 402.2 699.4 623.9 1,323.3 1,388.7 2,712.0 Total 4,742.2 13,258.2 18,000.4 1,396.6 19,397.0 6,568.7 25,965.7 As presented in the consolidated statement of earnings: Insurance service expenses 4,742.2 17,201.9 21,944.1 — 21,944.1 — 21,944.1 Recoveries of insurance service expenses — (3,943.7) (3,943.7) — (3,943.7) — (3,943.7) Other insurance operating expenses and Corporate and other expenses — — — 1,396.6 1,396.6 — 1,396.6 Non-insurance expenses — — — — — 6,568.7 6,568.7 Total 4,742.2 13,258.2 18,000.4 1,396.6 19,397.0 6,568.7 25,965.7 Year ended December 31, 2022 Restated Non-insurance Insurance and reinsurance companies (1) companies Total Non-directly attributable Directly attributable expenses expenses Total expenses of insurance Insurance Total directly Other and acquisition Other attributable operating reinsurance Non-insurance cash flows expenses expenses expenses companies expenses Losses on claims, net (2) — 11,629.7 11,629.7 — 11,629.7 — 11,629.7 Premium taxes 252.7 — 252.7 — 252.7 — 252.7 Commissions 3,234.5 — 3,234.5 — 3,234.5 — 3,234.5 Cost of sales — — — — — 3,349.4 3,349.4 Compensation expense 605.7 843.2 1,448.9 656.7 2,105.6 1,023.8 3,129.4 Administrative expense and other 273.6 353.5 627.1 296.4 923.5 1,147.7 2,071.2 Total 4,366.5 12,826.4 17,192.9 953.1 18,146.0 5,520.9 23,666.9 As presented in the consolidated statement of earnings: Insurance service expenses 4,366.5 16,100.8 20,467.3 — 20,467.3 — 20,467.3 Recoveries of insurance service expenses — (3,274.4) (3,274.4) — (3,274.4) — (3,274.4) Other insurance operating expenses and Corporate and other expenses — — — 953.1 953.1 — 953.1 Non-insurance expenses — — — — — 5,520.9 5,520.9 Total 4,366.5 12,826.4 17,192.9 953.1 18,146.0 5,520.9 23,666.9 (1) Includes Life insurance and Run-off, and the group holding companies . (2) Includes the effects of discounting and changes in the risk adjustment. |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Cash Flow Information | |
Schedule of supplemental balance sheet disclosures | December 31, 2023 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 81.4 325.4 406.8 — — — 81.4 325.4 406.8 Holding company assets pledged for derivative obligations — 2.5 2.5 — — — — 2.5 2.5 Subsidiary cash and short term investments 2,172.9 2,347.3 4,520.2 188.1 448.9 637.0 2,361.0 2,796.2 5,157.2 Fairfax India 179.4 12.5 191.9 0.2 5.1 5.3 179.6 17.6 197.2 2,433.7 2,687.7 5,121.4 188.3 454.0 642.3 2,622.0 3,141.7 5,763.7 December 31, 2022 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 72.7 479.4 552.1 — — — 72.7 479.4 552.1 Holding company assets pledged for derivative obligations — 40.6 40.6 — — — — 40.6 40.6 Subsidiary cash and short term investments 3,243.3 2,105.6 5,348.9 500.8 353.6 854.4 3,744.1 2,459.2 6,203.3 Fairfax India 34.5 143.5 178.0 0.8 6.0 6.8 35.3 149.5 184.8 3,350.5 2,769.1 6,119.6 501.6 359.6 861.2 3,852.1 3,128.7 6,980.8 |
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: 2023 2022 Restated Net (purchases) sales of investments classified at FVTPL Short term investments 1,592.6 6,352.5 Bonds (5,910.6) (16,016.2) Preferred stocks (135.1) (293.2) Common stocks (1,000.6) (63.6) Net derivatives and other invested assets (45.4) 380.3 (5,499.1) (9,640.2) Changes in operating assets and liabilities Net decrease in restricted cash and cash equivalents 250.4 393.7 Insurance contract receivables (282.4) (1.6) Reinsurance contract assets held (723.0) 45.7 Insurance contract payables (301.5) (270.5) Insurance contract liabilities 4,286.1 994.3 Other receivables (270.9) (348.0) Accounts payable and accrued liabilities 541.2 326.1 Other (423.6) (337.2) 3,076.3 802.5 Net interest and dividends received Interest and dividends received 1,595.1 1,030.8 Interest paid on borrowings (428.1) (360.5) Interest paid on lease liabilities (54.8) (48.1) 1,112.2 622.2 Net income taxes paid (713.9) (416.4) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Board of Director | |
Disclosure of transactions between related parties [line items] | |
Schedule of related party transactions | Compensation for the company’s Board of Directors for the years ended December 31 was as follows: 2023 2022 Retainers and fees 1.4 1.7 Share-based payments 0.2 0.3 1.6 2.0 |
Key management team | |
Disclosure of transactions between related parties [line items] | |
Schedule of related party transactions | 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: 2023 2022 Salaries and other short-term employee benefits 14.5 10.2 Share-based payments 7.3 5.7 21.8 15.9 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subsidiaries | |
Schedule of interests in subsidiaries | Fairfax’s ownership (100% other than as December 31, 2023 Domicile shown below) Property and casualty insurance and reinsurance North American Insurers Northbridge Financial Corporation (Northbridge) Canada Crum & Forster Holdings Corp. (Crum & Forster) United States Zenith National Insurance Corp. (Zenith National) United States Global Insurers and Reinsurers Odyssey Group Holdings, Inc. (Odyssey Group) United States 90.0 % Brit Limited (Brit) England and Wales 86.2 % Allied World Assurance Company Holdings, Ltd (Allied World) Bermuda 83.4 % International Insurers and Reinsurers 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 % Gulf Insurance Group K.S.C.P. (Gulf Insurance) Kuwait 90.0 % 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 % The Falcon Insurance Public Company Limited (Falcon Thailand) Thailand 96.7 % 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, 2023 Domicile ownership Primary business Non-insurance companies Restaurants and retail Recipe Unlimited Corporation (Recipe) Canada 84.0 % Franchisor, owner and operator of restaurants Sporting Life Group Limited (Sporting Life Group) Canada 88.5 % Canadian sports lifestyle retail organization Fairfax India Fairfax India Holdings Corporation (Fairfax India) Canada 42.5 % (1) Invests in public and private Indian businesses Thomas Cook India Thomas Cook (India) Limited (Thomas Cook India), which owns: India 64.6 % Provider of integrated travel and travel-related financial services 100.0% of Sterling Holiday Resorts Limited (Sterling Resorts) India 64.6 % Owner and operator of holiday resorts Other AGT Food and Ingredients Inc. (AGT) Canada 59.6 % Originator, processor and distributor of value-added pulses and staple foods Dexterra Group Inc. (Dexterra Group) Canada 49.3 % (2) Provider of Infrastructure support services Boat Rocker Media Inc. (Boat Rocker) Canada 44.9 % (3) Entertainment content creator, producer and distributor Farmers Edge Inc. (Farmers Edge) Canada 61.2 % Provider of advanced digital tools for agriculture Grivalia Hospitality S.A. (Grivalia Hospitality) Greece 85.2 % Hospitality real estate investor, developer and manager (1) The company owns multiple voting shares and subordinate voting shares of Fairfax India that give it voting rights of 95.2 %. (2) The company has de facto voting control of Dexterra Group as its largest equity and voting shareholder. (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 Material Accountin_4
Summary of Material Accounting Policies - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Customer and broker relationships | Minimum | |
Summary of Significant Accounting Policies | |
Intangible asset useful lives | 8 years |
Customer and broker relationships | Maximum | |
Summary of Significant Accounting Policies | |
Intangible asset useful lives | 20 years |
Computer software | Minimum | |
Summary of Significant Accounting Policies | |
Intangible asset useful lives | 3 years |
Computer software | Maximum | |
Summary of Significant Accounting Policies | |
Intangible asset useful lives | 15 years |
Summary of Material Accountin_5
Summary of Material Accounting Policies - New accounting pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2022 | |||
Summary of Significant Accounting Policies | ||||||
Equity | $ 27,700.9 | $ 23,018.7 | [1] | $ 21,476.2 | [1] | $ 21,476.2 |
Net earnings | 5,094.9 | 3,811.7 | [1] | |||
Previously reported | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 20,335.8 | 21,315.3 | ||||
Retained earnings | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 16,875.3 | 12,952.5 | [1] | 10,122.4 | [1] | |
Net earnings | 4,381.8 | 3,374.2 | [1] | |||
Retained earnings | Previously reported | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 10,509.6 | 9,972.2 | ||||
Retained earnings | Total adjustment from adoption of IFRS 17 | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 150.2 | |||||
Common shareholders' equity | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 21,615 | 17,780.3 | [1] | 15,199.8 | [1] | |
Net earnings | 4,381.8 | 3,374.2 | [1] | |||
Common shareholders' equity | Previously reported | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 15,340.7 | 15,049.6 | ||||
Common shareholders' equity | Total adjustment from adoption of IFRS 17 | ||||||
Summary of Significant Accounting Policies | ||||||
Discounting of provision for losses and loss adjustment expenses | 4,668.7 | 1,536.9 | ||||
Inclusion of a specific risk adjustment for non-financial risk for provision for losses and loss adjustment expenses | (1,635.5) | (1,421.8) | ||||
Other measurement adjustments | 375.8 | 106.7 | ||||
Deferred tax expense | (726.1) | (60.9) | ||||
Non-controlling interests | (243.3) | (10.7) | ||||
Equity | 2,439.6 | 150.2 | ||||
Equity attributable to shareholders of Fairfax | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 22,950.5 | 19,115.8 | [1] | 16,535.3 | [1] | |
Net earnings | $ 4,381.8 | 3,374.2 | [1] | |||
Equity attributable to shareholders of Fairfax | Previously reported | ||||||
Summary of Significant Accounting Policies | ||||||
Equity | 16,676.2 | $ 16,385.1 | ||||
Equity attributable to shareholders of Fairfax | Total adjustment from adoption of IFRS 17 | ||||||
Summary of Significant Accounting Policies | ||||||
Net earnings | $ 2,227 | |||||
[1] See note 3 for details of transition to IFRS 17. |
Critical Accounting Estimates_3
Critical Accounting Estimates and Judgments (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Critical Accounting Estimates and Judgments | |||
Confidence level used to determine risk adjustment for non-financial risk | 83.80% | 84% | 84.40% |
1 year | USD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 5% | 5.57% | 0.49% |
1 year | CAD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 5.28% | 5.37% | 0.76% |
1 year | EUR | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 3.38% | 3.48% | 0.03% |
1 year | GBP | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.95% | 5.37% | 0.84% |
5 years | USD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.57% | 4.90% | 1.77% |
5 years | CAD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.51% | 4.04% | 1.60% |
5 years | EUR | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 2.64% | 3.35% | 0.12% |
5 years | GBP | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 3.93% | 4.80% | 1.47% |
10 years | USD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.70% | 5.16% | 2.28% |
10 years | CAD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.37% | 3.94% | 2.19% |
10 years | EUR | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 2.86% | 3.13% | 0.57% |
10 years | GBP | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.26% | 4.18% | 1.41% |
15 years | USD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.81% | 4.99% | 2.28% |
15 years | CAD | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.41% | 3.77% | 2.26% |
15 years | EUR | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 3.08% | 2.99% | 0.60% |
15 years | GBP | |||
Critical Accounting Estimates and Judgments | |||
Yield used to discount cash flows (as a percent) | 4.60% | 3.82% | 1.21% |
Cash and Investments - Total ca
Cash and Investments - Total cash and investments, net of derivative obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Cash and Investments | |||
Holding company, cash and investments | $ 1,583.9 | $ 1,241.2 | |
Holding company, assets pledged for derivative obligations | 197.7 | 104.6 | |
Holding company cash and investments as presented on the consolidated balance sheet | 1,781.6 | 1,345.8 | $ 1,478.3 |
Holding company, derivative obligations | (32.5) | (19.4) | |
Holding company cash and investments, net | 1,749.1 | 1,326.4 | |
Portfolio investments, cash and investments | 61,000.1 | 52,330.6 | |
Portfolio investments, assets pledged for derivative obligations | 139.3 | 51.3 | 119.6 |
Fairfax India cash, portfolio investments and associates | 2,282.7 | 1,942.8 | 2,066 |
Portfolio investments as presented on the consolidated balance sheet | 63,422.1 | 54,324.7 | $ 51,691.5 |
Portfolio investments, derivative obligations | (412.4) | (171.6) | |
Portfolio investments cash and investments, net | 63,009.7 | 54,153.1 | |
Total investments, net of derivative obligations | 64,758.8 | 55,479.5 | |
Restricted cash and cash equivalents | 642.3 | 861.2 | |
Cash and cash equivalents | |||
Cash and Investments | |||
Holding company, cash and investments | 406.8 | 552.1 | |
Portfolio investments, cash and investments | 5,157.2 | 6,203.3 | |
Fairfax India cash, portfolio investments and associates | 197.2 | 184.8 | |
Cash equivalents | |||
Cash and Investments | |||
Holding company, assets pledged for derivative obligations | 2.5 | 40.6 | |
Short term investments | |||
Cash and Investments | |||
Holding company, cash and investments | 192.9 | 126.6 | |
Holding company, assets pledged for derivative obligations | 127.8 | 64 | |
Portfolio investments, cash and investments | 2,008.4 | 3,164.9 | |
Fairfax India cash, portfolio investments and associates | 49.7 | ||
Bonds | |||
Cash and Investments | |||
Holding company, cash and investments | 344.3 | 243.2 | |
Holding company, assets pledged for derivative obligations | 67.4 | ||
Portfolio investments, cash and investments | 36,850.8 | 28,578.5 | |
Portfolio investments, assets pledged for derivative obligations | 139.3 | 51.3 | |
Fairfax India cash, portfolio investments and associates | 39.2 | 128.2 | |
Preferred stocks | |||
Cash and Investments | |||
Holding company, cash and investments | 12.2 | 11.1 | |
Portfolio investments, cash and investments | 2,447.4 | 2,338 | |
Common stocks | |||
Cash and Investments | |||
Holding company, cash and investments | 103.5 | 75.4 | |
Portfolio investments, cash and investments | 6,903.4 | 5,124.3 | |
Fairfax India cash, portfolio investments and associates | 616.6 | 237.5 | |
Investments in limited partnerships | 2,171.8 | 1,982.5 | |
Investments in associates | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 6,607.6 | 6,093.1 | |
Fairfax India cash, portfolio investments and associates | 1,429.7 | 1,342.6 | |
Derivatives | |||
Cash and Investments | |||
Holding company, cash and investments | 524.2 | 232.8 | |
Portfolio investments, cash and investments | 448.3 | 235 | |
Other invested assets | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 577 | $ 593.5 | |
Gulf Insurance | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 2,372.6 | ||
Gulf Insurance | Cash and cash equivalents | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 459.9 | ||
Gulf Insurance | Short term investments | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 376 | ||
Gulf Insurance | Bonds | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 1,136.3 | ||
Gulf Insurance | Common stocks | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 216.2 | ||
Gulf Insurance | Investments in associates | |||
Cash and Investments | |||
Portfolio investments, cash and investments | 151.8 | ||
Gulf Insurance | Other invested assets | |||
Cash and Investments | |||
Portfolio investments, cash and investments | $ 32.4 |
Cash and Investments - Assets p
Cash and Investments - Assets pledged to third parties (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets pledged to third parties | ||
Cash and Investments | ||
Financial assets pledged as collateral | $ 8,555.9 | $ 7,335.2 |
Regulatory deposits | ||
Cash and Investments | ||
Financial assets pledged as collateral | 6,701 | 5,724.2 |
Security for reinsurance and other | ||
Cash and Investments | ||
Financial assets pledged as collateral | $ 1,854.9 | $ 1,611 |
Cash and Investments - Fixed In
Cash and Investments - Fixed Income Maturity Profile (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Significant unobservable inputs (Level 3) | ||
Cash and Investments | ||
Investments in first mortgage loans secured by real estate | $ 4,685.4 | $ 2,500.7 |
Interest rate swaps | First mortgage loans | ||
Cash and Investments | ||
Notional amount | 1,900 | 0 |
Interest rate risk | U.S. treasury bond forward contracts | ||
Cash and Investments | ||
Notional amount | 292.8 | 183.7 |
Interest rate risk | Interest rate swaps | ||
Cash and Investments | ||
Notional amount | 1,900 | 0 |
Bonds | ||
Cash and Investments | ||
Bonds with call features | 8,766.5 | 5,933.7 |
Bonds with put features | 85.5 | 30.9 |
Bonds with call and put features | 464.5 | 427.7 |
Amortized cost | 37,094.3 | 29,968.6 |
Fair value | $ 37,441 | $ 29,001.2 |
Effective interest rate | 5.30% | 3.60% |
Bonds | One year or less | ||
Cash and Investments | ||
Amortized cost | $ 7,780.5 | $ 8,506.5 |
Fair value | 7,545.6 | 8,192.5 |
Bonds | Due after 1 year through 3 years | ||
Cash and Investments | ||
Amortized cost | 9,352.1 | 16,077.6 |
Fair value | 9,420.5 | 15,686.2 |
Bonds | Due after 3 years through 5 years | ||
Cash and Investments | ||
Amortized cost | 5,738.7 | 4,205.8 |
Fair value | 5,861.1 | 4,116.6 |
Bonds | Due after 5 years through 10 years | ||
Cash and Investments | ||
Amortized cost | 13,645.1 | 318.8 |
Fair value | 14,047.3 | 291.1 |
Bonds | Due after 10 years | ||
Cash and Investments | ||
Amortized cost | 577.9 | 859.9 |
Fair value | 566.5 | $ 714.8 |
Short-dated first mortgage loans | Due after 5 years through 10 years | ||
Cash and Investments | ||
Increase due to net purchases | 2,261.5 | |
Short-dated U.S. Treasury bonds | Not later than one year and later than one year and not later than three years | ||
Cash and Investments | ||
Decrease due to net sales of financial instruments | 9,013.4 | |
Corporate and other bonds | Not later than one year and later than one year and not later than three years | ||
Cash and Investments | ||
Decrease due to net sales of financial instruments | 1,339.8 | |
Corporate and other bonds | Due after 3 years through 5 years | ||
Cash and Investments | ||
Increase due to net purchases | 1,415.8 | |
Corporate and other bonds | Due after 3 years through 5 years | Gulf Insurance | ||
Cash and Investments | ||
Increase due to consolidation of Gulf Insurance's bond portfolio | 452.8 | |
Corporate and other bonds | Due after 5 years through 10 years | ||
Cash and Investments | ||
Increase due to net purchases | 741.9 | |
Other government bonds | Due after 5 years through 10 years | ||
Cash and Investments | ||
Increase due to net purchases | 410.4 | |
Other government and corporate and other bonds | Gulf Insurance | ||
Cash and Investments | ||
Increase due to consolidation of Gulf Insurance's bond portfolio | 400.9 | |
Other government and corporate and other bonds | Due after 5 years through 10 years | Gulf Insurance | ||
Cash and Investments | ||
Increase due to consolidation of Gulf Insurance's bond portfolio | 282.6 | |
U.S Treasury bonds | Due after 5 years through 10 years | ||
Cash and Investments | ||
Increase due to net purchases | 11,670.1 | |
U.S Treasury bonds | Between 5 to 7 years | ||
Cash and Investments | ||
Increase due to net purchases | 11,479.2 | |
Fair value | $ 11,868 |
Cash and Investments - Fair val
Cash and Investments - Fair value hierarchy (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash and Investments | |||
Assets | $ 91,985.1 | $ 78,818.5 | $ 76,124.4 |
Derivative obligations | $ (64,284.2) | $ (55,799.8) | $ (54,648.2) |
Percentage of assets | 100% | 100% | |
Investment in associates | $ 7,553.2 | $ 6,772.9 | |
Restricted cash and cash equivalents | $ 642.3 | $ 861.2 | |
Quoted prices (Level 1) | |||
Cash and Investments | |||
Percentage of assets | 19.40% | 23.50% | |
Significant other observable inputs (Level 2) | |||
Cash and Investments | |||
Percentage of assets | 60.40% | 58.30% | |
Significant unobservable inputs (Level 3) | |||
Cash and Investments | |||
Assets | $ 11,460 | ||
Percentage of assets | 20.20% | 18.20% | |
Investments in first mortgage loans secured by real estate | $ 4,685.4 | $ 2,500.7 | |
Significant unobservable inputs (Level 3) | Bonds | |||
Cash and Investments | |||
Assets | 5,797 | ||
Significant unobservable inputs (Level 3) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 492.5 | ||
Recurring | |||
Cash and Investments | |||
Investment in associates | 10,207.8 | 9,252.3 | |
Recurring | Holding company | |||
Cash and Investments | |||
Assets | 56,721.5 | 48,043.8 | |
Recurring | Derivative obligations | |||
Cash and Investments | |||
Derivative obligations | (444.9) | (191) | |
Recurring | Cash and cash equivalents | |||
Cash and Investments | |||
Assets | 5,763.7 | 6,980.8 | |
Recurring | Short term investments | |||
Cash and Investments | |||
Assets | 2,329.1 | 3,405.2 | |
Recurring | Short term investments, Canadian government and provincials | |||
Cash and Investments | |||
Assets | 553.3 | 129.9 | |
Recurring | Short term investments, U.S. treasury | |||
Cash and Investments | |||
Assets | 794.1 | 1,574.5 | |
Recurring | Short term investments, Other government | |||
Cash and Investments | |||
Assets | 370.3 | 1,402.8 | |
Recurring | Short term investments, Corporate and other | |||
Cash and Investments | |||
Assets | 611.4 | 298 | |
Recurring | Bonds | |||
Cash and Investments | |||
Assets | 37,441 | 29,001.2 | |
Recurring | Bonds, Canadian government and provincials | |||
Cash and Investments | |||
Assets | 2,715.1 | 2,207.6 | |
Recurring | Bonds, U.S. treasury | |||
Cash and Investments | |||
Assets | 16,273.5 | 14,378.8 | |
Recurring | Bonds, U.S. states and municipalities | |||
Cash and Investments | |||
Assets | 184.5 | 262.7 | |
Recurring | Bonds, Other government | |||
Cash and Investments | |||
Assets | 4,942.3 | 2,700.2 | |
Recurring | Bonds, Corporate and other | |||
Cash and Investments | |||
Assets | 13,325.6 | 9,451.9 | |
Recurring | Preferred stocks | |||
Cash and Investments | |||
Assets | 2,459.6 | 2,349.1 | |
Recurring | Preferred stocks, Canadian | |||
Cash and Investments | |||
Assets | 27.8 | 32.8 | |
Recurring | Preferred stocks, U.S. | |||
Cash and Investments | |||
Assets | 343.3 | 233.6 | |
Recurring | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 2,088.5 | 2,082.7 | |
Recurring | Common stocks | |||
Cash and Investments | |||
Assets | 7,623.5 | 5,437.2 | |
Recurring | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 1,342.5 | 1,244.4 | |
Recurring | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 2,274.1 | 1,804.3 | |
Recurring | Common stocks, Other | |||
Cash and Investments | |||
Assets | 4,006.9 | 2,388.5 | |
Recurring | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 1,549.5 | 1,061.3 | |
Recurring | Quoted prices (Level 1) | |||
Cash and Investments | |||
Investment in associates | 3,592.3 | 4,693.8 | |
Recurring | Quoted prices (Level 1) | Holding company | |||
Cash and Investments | |||
Assets | 11,019.6 | 11,286.2 | |
Recurring | Quoted prices (Level 1) | Cash and cash equivalents | |||
Cash and Investments | |||
Assets | 5,763.7 | 6,980.8 | |
Recurring | Quoted prices (Level 1) | Short term investments | |||
Cash and Investments | |||
Assets | 1,378.7 | 1,868.7 | |
Recurring | Quoted prices (Level 1) | Short term investments, Canadian government and provincials | |||
Cash and Investments | |||
Assets | 553.3 | 129.9 | |
Recurring | Quoted prices (Level 1) | Short term investments, U.S. treasury | |||
Cash and Investments | |||
Assets | 794.1 | 1,574.5 | |
Recurring | Quoted prices (Level 1) | Short term investments, Other government | |||
Cash and Investments | |||
Assets | 31.3 | 164.3 | |
Recurring | Quoted prices (Level 1) | Preferred stocks | |||
Cash and Investments | |||
Assets | 27.5 | 23.6 | |
Recurring | Quoted prices (Level 1) | Preferred stocks, Canadian | |||
Cash and Investments | |||
Assets | 15.5 | 10.4 | |
Recurring | Quoted prices (Level 1) | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 12 | 13.2 | |
Recurring | Quoted prices (Level 1) | Common stocks | |||
Cash and Investments | |||
Assets | 3,849.7 | 2,413.1 | |
Recurring | Quoted prices (Level 1) | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 838.3 | 624.3 | |
Recurring | Quoted prices (Level 1) | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 988 | 691 | |
Recurring | Quoted prices (Level 1) | Common stocks, Other | |||
Cash and Investments | |||
Assets | 2,023.4 | 1,097.8 | |
Recurring | Significant other observable inputs (Level 2) | |||
Cash and Investments | |||
Investment in associates | 83.2 | 95.3 | |
Recurring | Significant other observable inputs (Level 2) | Holding company | |||
Cash and Investments | |||
Assets | 34,241.9 | 28,013.3 | |
Recurring | Significant other observable inputs (Level 2) | Derivative obligations | |||
Cash and Investments | |||
Derivative obligations | (257.4) | (151.8) | |
Recurring | Significant other observable inputs (Level 2) | Short term investments | |||
Cash and Investments | |||
Assets | 950.4 | 1,536.5 | |
Recurring | Significant other observable inputs (Level 2) | Short term investments, Other government | |||
Cash and Investments | |||
Assets | 339 | 1,238.5 | |
Recurring | Significant other observable inputs (Level 2) | Short term investments, Corporate and other | |||
Cash and Investments | |||
Assets | 611.4 | 298 | |
Recurring | Significant other observable inputs (Level 2) | Bonds | |||
Cash and Investments | |||
Assets | 31,644 | 25,535.9 | |
Recurring | Significant other observable inputs (Level 2) | Bonds, Canadian government and provincials | |||
Cash and Investments | |||
Assets | 2,715.1 | 2,207.6 | |
Recurring | Significant other observable inputs (Level 2) | Bonds, U.S. treasury | |||
Cash and Investments | |||
Assets | 16,273.5 | 14,378.8 | |
Recurring | Significant other observable inputs (Level 2) | Bonds, U.S. states and municipalities | |||
Cash and Investments | |||
Assets | 184.5 | 262.7 | |
Recurring | Significant other observable inputs (Level 2) | Bonds, Other government | |||
Cash and Investments | |||
Assets | 4,903 | 2,700.2 | |
Recurring | Significant other observable inputs (Level 2) | Bonds, Corporate and other | |||
Cash and Investments | |||
Assets | 7,567.9 | 5,986.6 | |
Recurring | Significant other observable inputs (Level 2) | Preferred stocks | |||
Cash and Investments | |||
Assets | 290.1 | 278.4 | |
Recurring | Significant other observable inputs (Level 2) | Preferred stocks, Canadian | |||
Cash and Investments | |||
Assets | 3.5 | 9.2 | |
Recurring | Significant other observable inputs (Level 2) | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 286.6 | 269.2 | |
Recurring | Significant other observable inputs (Level 2) | Common stocks | |||
Cash and Investments | |||
Assets | 745.3 | 472.5 | |
Recurring | Significant other observable inputs (Level 2) | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 216 | 192.3 | |
Recurring | Significant other observable inputs (Level 2) | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 27.4 | 26.1 | |
Recurring | Significant other observable inputs (Level 2) | Common stocks, Other | |||
Cash and Investments | |||
Assets | 501.9 | 254.1 | |
Recurring | Significant other observable inputs (Level 2) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 869.5 | 341.8 | |
Recurring | Significant unobservable inputs (Level 3) | |||
Cash and Investments | |||
Investment in associates | 6,532.3 | 4,463.2 | |
Recurring | Significant unobservable inputs (Level 3) | Holding company | |||
Cash and Investments | |||
Assets | 11,460 | 8,744.3 | |
Recurring | Significant unobservable inputs (Level 3) | Derivative obligations | |||
Cash and Investments | |||
Derivative obligations | (187.5) | (39.2) | |
Recurring | Significant unobservable inputs (Level 3) | Bonds | |||
Cash and Investments | |||
Assets | 5,797 | 3,465.3 | |
Recurring | Significant unobservable inputs (Level 3) | Bonds, Other government | |||
Cash and Investments | |||
Assets | 39.3 | ||
Recurring | Significant unobservable inputs (Level 3) | Bonds, Corporate and other | |||
Cash and Investments | |||
Assets | 5,757.7 | 3,465.3 | |
Recurring | Significant unobservable inputs (Level 3) | Preferred stocks | |||
Cash and Investments | |||
Assets | 2,142 | 2,047.1 | |
Recurring | Significant unobservable inputs (Level 3) | Preferred stocks, Canadian | |||
Cash and Investments | |||
Assets | 8.8 | 13.2 | |
Recurring | Significant unobservable inputs (Level 3) | Preferred stocks, U.S. | |||
Cash and Investments | |||
Assets | 343.3 | 233.6 | |
Recurring | Significant unobservable inputs (Level 3) | Preferred stocks, Other | |||
Cash and Investments | |||
Assets | 1,789.9 | 1,800.3 | |
Recurring | Significant unobservable inputs (Level 3) | Common stocks | |||
Cash and Investments | |||
Assets | 3,028.5 | 2,551.6 | |
Recurring | Significant unobservable inputs (Level 3) | Common stocks, Canadian | |||
Cash and Investments | |||
Assets | 288.2 | 427.8 | |
Recurring | Significant unobservable inputs (Level 3) | Common stocks, U.S. | |||
Cash and Investments | |||
Assets | 1,258.7 | 1,087.2 | |
Recurring | Significant unobservable inputs (Level 3) | Common stocks, Other | |||
Cash and Investments | |||
Assets | 1,481.6 | 1,036.6 | |
Recurring | Significant unobservable inputs (Level 3) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | $ 680 | $ 719.5 | |
Digit | |||
Cash and Investments | |||
Ownership percentage | 49% |
Cash and Investments - Changes
Cash and Investments - Changes in Level 3 financial assets (Details) - Significant unobservable inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in fair value measurement, assets | ||
Balance - January 1 | $ 8,744.3 | $ 8,343.2 |
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | (139.1) | (518.5) |
Purchases | 4,397.8 | 2,025.6 |
Acquisitions of insurance subsidiaries | 178.1 | |
Sales and distributions | (1,655.6) | (999.8) |
Transfer out of category | (39.7) | (2.7) |
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 17.5 | (103.5) |
Deconsolidation of non-insurance subsidiary | (43.3) | |
Balance - December 31 | 11,460 | 8,744.3 |
Private placement debt securities | ||
Changes in fair value measurement, assets | ||
Balance - January 1 | 3,465.3 | 2,795.8 |
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 63.7 | (378.8) |
Purchases | 3,451.7 | 1,456 |
Acquisitions of insurance subsidiaries | 109.6 | |
Sales and distributions | (1,262.5) | (382.4) |
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 12.5 | (25.3) |
Deconsolidation of non-insurance subsidiary | (43.3) | |
Balance - December 31 | 5,797 | 3,465.3 |
Net purchases of first mortgage loans | 2,261.5 | 870.2 |
Private company preferred shares | ||
Changes in fair value measurement, assets | ||
Balance - January 1 | 2,047.1 | 2,101.8 |
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | (2.4) | (247.4) |
Purchases | 134.5 | 286.4 |
Sales and distributions | (2.9) | (88.1) |
Transfer out of category | (36.7) | |
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 2.4 | (5.6) |
Balance - December 31 | 2,142 | 2,047.1 |
Limited partnerships and other | ||
Changes in fair value measurement, assets | ||
Balance - January 1 | 1,824.2 | 1,789.1 |
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | (69.7) | 143 |
Purchases | 384.2 | 113.1 |
Sales and distributions | (146.1) | (207) |
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 5.6 | (14) |
Balance - December 31 | 1,998.2 | 1,824.2 |
Private equity funds | ||
Changes in fair value measurement, assets | ||
Balance - January 1 | 97.5 | 107.7 |
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | (7.6) | (1.4) |
Acquisitions of insurance subsidiaries | 0.9 | |
Sales and distributions | (19.7) | (4.2) |
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 1.7 | (4.6) |
Balance - December 31 | 72.8 | 97.5 |
Common stocks | ||
Changes in fair value measurement, assets | ||
Balance - January 1 | 629.9 | 507 |
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | 12.3 | 61.9 |
Purchases | 289.7 | 102.7 |
Acquisitions of insurance subsidiaries | 34.9 | |
Sales and distributions | (10.2) | (14.3) |
Transfer out of category | (3) | (2.7) |
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | 3.9 | (24.7) |
Balance - December 31 | 957.5 | 629.9 |
Derivatives and other invested assets | ||
Changes in fair value measurement, assets | ||
Balance - January 1 | 680.3 | 1,041.8 |
Net realized and unrealized gains (losses) included in the consolidated statement of earnings | (135.4) | (95.8) |
Purchases | 137.7 | 67.4 |
Acquisitions of insurance subsidiaries | 32.7 | |
Sales and distributions | (214.2) | (303.8) |
Unrealized foreign currency translation gains (losses) on foreign subsidiaries included in other comprehensive income (loss) | (8.6) | (29.3) |
Balance - December 31 | $ 492.5 | $ 680.3 |
Cash and Investments - Fair v_2
Cash and Investments - Fair value assets valuation (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) item | Jan. 01, 2022 USD ($) | |
Cash and Investments | |||
Assets | $ 91,985.1 | $ 78,818.5 | $ 76,124.4 |
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, assets | (112.5) | ||
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, assets | $ 60.1 | ||
Digit | |||
Cash and Investments | |||
Ownership percentage | 49% | ||
Fairfax India | IIFL Finance | |||
Cash and Investments | |||
Ownership percentage | 15.10% | ||
Realized gain on remeasurement of investment | $ 204.2 | ||
Private placement debt securities | Sensitivity Analysis, increase in credit spreads | |||
Cash and Investments | |||
Percentage of reasonably possible increase in unobservable input, assets | 1% | ||
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, assets | $ (22.2) | ||
Private placement debt securities | Sensitivity Analysis, decrease in credit spreads | |||
Cash and Investments | |||
Percentage of reasonably possible decrease in unobservable input, assets | (1.00%) | ||
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, assets | $ 21.4 | ||
Private placement debt securities | Discounted cash flow | |||
Cash and Investments | |||
Number of investments | item | 10 | 10 | |
Private placement debt securities | Discounted cash flow | Credit spread | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.018 | ||
Private placement debt securities | Discounted cash flow | Credit spread | High | |||
Cash and Investments | |||
Significant unobservable input | 0.099 | ||
Private placement debt securities - largest investment | Discounted cash flow | |||
Cash and Investments | |||
Assets | $ 148.9 | $ 285 | |
Mortgage loans | |||
Cash and Investments | |||
Number of investments | item | 102 | 50 | |
Mortgage loans | Sensitivity Analysis, increase in credit spreads | |||
Cash and Investments | |||
Percentage of reasonably possible increase in unobservable input, assets | 1% | ||
Mortgage loans | Sensitivity Analysis, decrease in credit spreads | |||
Cash and Investments | |||
Percentage of reasonably possible decrease in unobservable input, assets | (2.00%) | ||
Mortgage loans | Discounted cash flow | Credit spread | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.029 | ||
Mortgage loans | Discounted cash flow | Credit spread | High | |||
Cash and Investments | |||
Significant unobservable input | 0.105 | ||
Mortgage loans - largest investment | |||
Cash and Investments | |||
Assets | $ 235 | $ 250 | |
Private company preferred shares | Sensitivity Analysis, increase in discount rate | |||
Cash and Investments | |||
Percentage of reasonably possible increase in unobservable input, assets | 1% | ||
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, assets | $ (319.1) | ||
Private company preferred shares | Sensitivity Analysis, decrease in discount rate | |||
Cash and Investments | |||
Percentage of reasonably possible decrease in unobservable input, assets | (1.00%) | ||
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, assets | $ 457.5 | ||
Private company preferred shares | Sensitivity Analysis, increase in long term growth rate | |||
Cash and Investments | |||
Percentage of reasonably possible increase in unobservable input, assets | 0.50% | ||
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, assets | $ 122 | ||
Private company preferred shares | Sensitivity Analysis, decrease in long term growth rate | |||
Cash and Investments | |||
Percentage of reasonably possible decrease in unobservable input, assets | (0.50%) | ||
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, assets | $ (119.5) | ||
Private company preferred shares | Discounted cash flow | Discount rate | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.120 | ||
Private company preferred shares | Discounted cash flow | Discount rate | High | |||
Cash and Investments | |||
Significant unobservable input | 0.120 | ||
Private company preferred shares | Discounted cash flow | Long term growth rate | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.063 | ||
Private company preferred shares | Discounted cash flow | Long term growth rate | High | |||
Cash and Investments | |||
Significant unobservable input | 0.063 | ||
Private placement preferred shares | Discounted cash flow | Credit spread | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.055 | ||
Private placement preferred shares | Discounted cash flow | Credit spread | High | |||
Cash and Investments | |||
Significant unobservable input | 0.061 | ||
Limited partnerships and other | |||
Cash and Investments | |||
Number of investments | item | 42 | 45 | |
Limited partnerships and other | Sensitivity Analysis, increase in net asset values | |||
Cash and Investments | |||
Percentage of reasonably possible increase in unobservable input, assets | 10% | ||
Increase (decrease) in fair value measurement due to reasonably possible increase in unobservable input, assets | $ 199.8 | ||
Limited partnerships and other | Sensitivity Analysis, decrease in net asset values | |||
Cash and Investments | |||
Percentage of reasonably possible decrease in unobservable input, assets | (10.00%) | ||
Increase (decrease) in fair value measurement due to reasonably possible decrease in unobservable input, assets | $ (199.8) | ||
Investment property | Income capitalization | Terminal capitalization rate | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.063 | ||
Investment property | Income capitalization | Terminal capitalization rate | High | |||
Cash and Investments | |||
Significant unobservable input | 0.090 | ||
Investment property | Income capitalization | Discount rate | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.080 | ||
Investment property | Income capitalization | Discount rate | High | |||
Cash and Investments | |||
Significant unobservable input | 0.103 | ||
Investment property | Income capitalization | Market rent growth rate | Low | |||
Cash and Investments | |||
Significant unobservable input | 0.025 | ||
Investment property | Income capitalization | Market rent growth rate | High | |||
Cash and Investments | |||
Significant unobservable input | 0.030 | ||
Investment property | Sales comparison | Price per acre (Cdn$ thousands) | Low | |||
Cash and Investments | |||
Significant unobservable input | 43,500 | ||
Investment property | Sales comparison | Price per acre (Cdn$ thousands) | High | |||
Cash and Investments | |||
Significant unobservable input | 160,000 | ||
Industrials | |||
Cash and Investments | |||
Assets | $ 315 | ||
Industrials One | |||
Cash and Investments | |||
Assets | $ 189.5 | ||
Industrials Two | |||
Cash and Investments | |||
Assets | 176.1 | ||
Industrials and Consumer Discretionary | |||
Cash and Investments | |||
Assets | 242.5 | ||
Oil and gas extraction | |||
Cash and Investments | |||
Assets | 235.3 | $ 374.8 | |
Significant unobservable inputs (Level 3) | |||
Cash and Investments | |||
Assets | 11,460 | ||
Significant unobservable inputs (Level 3) | Bonds | |||
Cash and Investments | |||
Assets | 5,797 | ||
Significant unobservable inputs (Level 3) | Private placement debt securities | Discounted cash flow | |||
Cash and Investments | |||
Assets | 903.6 | ||
Significant unobservable inputs (Level 3) | Mortgage loans | Market approach | |||
Cash and Investments | |||
Assets | 4,685.4 | ||
Significant unobservable inputs (Level 3) | Other | Various | |||
Cash and Investments | |||
Assets | 208 | ||
Significant unobservable inputs (Level 3) | Preferred Stocks | |||
Cash and Investments | |||
Assets | 2,142 | ||
Significant unobservable inputs (Level 3) | Private company preferred shares | Discounted cash flow | |||
Cash and Investments | |||
Assets | 1,787.8 | ||
Significant unobservable inputs (Level 3) | Private placement preferred shares | Discounted cash flow | |||
Cash and Investments | |||
Assets | 290.2 | ||
Significant unobservable inputs (Level 3) | Other | Various | |||
Cash and Investments | |||
Assets | 64 | ||
Significant unobservable inputs (Level 3) | Common Stocks | |||
Cash and Investments | |||
Assets | 3,028.5 | ||
Significant unobservable inputs (Level 3) | Limited partnerships and other | Net asset value | |||
Cash and Investments | |||
Assets | 1,998.2 | ||
Significant unobservable inputs (Level 3) | Private equity funds | Net asset value | |||
Cash and Investments | |||
Assets | 402 | ||
Significant unobservable inputs (Level 3) | Other | Various | |||
Cash and Investments | |||
Assets | 628.3 | ||
Significant unobservable inputs (Level 3) | Derivatives and other invested assets | |||
Cash and Investments | |||
Assets | 492.5 | ||
Significant unobservable inputs (Level 3) | Investment property | Income capitalization | |||
Cash and Investments | |||
Assets | 302.7 | ||
Significant unobservable inputs (Level 3) | Investment property | Sales comparison | |||
Cash and Investments | |||
Assets | 83 | ||
Significant unobservable inputs (Level 3) | Other | Various | |||
Cash and Investments | |||
Assets | $ 106.8 |
Cash and Investments - Interest
Cash and Investments - Interest and dividends and share of profit of associates (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest income: | ||
Cash and short term investments | $ 279.4 | $ 101.5 |
Bonds | 1,624.9 | 753.1 |
Derivatives and other invested assets | (63.2) | 18.9 |
Interest income | 1,841.1 | 873.5 |
Dividends: | ||
Dividend income | 133.8 | 140.4 |
Investment expenses | (78.7) | (52.1) |
Interest and dividends | 1,896.2 | 961.8 |
Share of profit of associates | 1,022.2 | 1,022.4 |
Preferred stocks | ||
Dividends: | ||
Dividend income | 44.7 | 39.7 |
Common stocks | ||
Dividends: | ||
Dividend income | 89.1 | 100.7 |
Associates | ||
Dividends: | ||
Share of profit of associates | $ 1,022.2 | $ 1,022.4 |
Cash and Investments - Net gain
Cash and Investments - Net gains (losses) on investments (Details) $ / shares in Units, shares in Millions, $ in Millions, ₨ in Billions | 12 Months Ended | ||||
Aug. 31, 2022 USD ($) shares | Apr. 06, 2022 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2023 INR (₨) | Dec. 31, 2022 USD ($) | |
Cash and Investments | |||||
Net gains (losses) on investments | $ 1,949.5 | $ (1,573.2) | |||
Impact on reclassification from unrealized gain to realized gain | $ 0 | ||||
Stelco | |||||
Cash and Investments | |||||
Number of shares repurchased from investor | shares | 5.1 | ||||
Ownership percentage | 20.50% | ||||
Reclassification of unrealized gain to realized gain on equity method investments | $ 151.9 | ||||
Atlas Corp | |||||
Cash and Investments | |||||
Number of shares acquired on exercise of warrants | shares | 25 | ||||
Strike price | $ / shares | $ 8.05 | ||||
Cash consideration for acquisition | $ 201.3 | ||||
Net loss on investments | 37.2 | ||||
Realized gain on derecognition | 58.6 | ||||
Unrealized gain on derecognition of investments related to prior period | $ 95.8 | ||||
Fairfax India | IIFL Finance Limited | |||||
Cash and Investments | |||||
Ownership percentage | 15.10% | 15.10% | |||
Percentage of interest sold | 7.10% | 7.10% | |||
Realized gain on sale of equity method investment | $ 88.6 | ||||
Realized gain on remeasurement of investment | 204.2 | ||||
Proceeds from sale of equity interest | 177.3 | ₨ 14.7 | |||
Common stocks | |||||
Cash and Investments | |||||
Net realized gains (losses) | 43.9 | 364.5 | |||
Net change in unrealized gains (losses) | 420.5 | (607.2) | |||
Net gains (losses) on investments | 464.4 | (242.7) | |||
Bonds and preferred stocks - convertible | |||||
Cash and Investments | |||||
Net realized gains (losses) | (0.2) | 11.6 | |||
Net change in unrealized gains (losses) | 77.3 | (253) | |||
Net gains (losses) on investments | 77.1 | (241.4) | |||
Other equity derivatives | |||||
Cash and Investments | |||||
Net realized gains (losses) | 144 | 331.7 | |||
Net change in unrealized gains (losses) | 213.2 | (140.9) | |||
Net gains (losses) on investments | 357.2 | 190.8 | |||
Other equity derivatives | Fairfax subordinate voting shares | RiverStone Barbados AVLNs | |||||
Cash and Investments | |||||
Net change in unrealized gains (losses) | 320.6 | 100.6 | |||
Fair value | 516.9 | 196.3 | |||
Disposition of non-insurance associates | |||||
Cash and Investments | |||||
Net realized gains (losses) | 322 | 45.1 | |||
Net gains (losses) on investments | 322 | 45.1 | |||
Other | |||||
Cash and Investments | |||||
Net realized gains (losses) | (3.1) | 4.4 | |||
Net gains (losses) on investments | (3.1) | 4.4 | |||
Long equity exposure and financial effects | |||||
Cash and Investments | |||||
Net realized gains (losses) | 506.6 | 757.3 | |||
Net change in unrealized gains (losses) | 711 | (1,001.1) | |||
Net gains (losses) on investments | 1,217.6 | (243.8) | |||
Gains on derivatives | 304.2 | 154.8 | |||
Bonds | |||||
Cash and Investments | |||||
Net realized gains (losses) | (587.6) | (183.6) | |||
Net change in unrealized gains (losses) | 1,141.9 | (1,064.9) | |||
Net gains (losses) on investments | 554.3 | (1,248.5) | |||
Fair value | 37,441 | 29,001.2 | |||
U.S. treasury bond forward contracts | |||||
Cash and Investments | |||||
Net realized gains (losses) | 172.3 | 163 | |||
Net change in unrealized gains (losses) | (12.5) | (0.6) | |||
Net gains (losses) on investments | 159.8 | 162.4 | |||
Total bonds | |||||
Cash and Investments | |||||
Net realized gains (losses) | (415.3) | (20.6) | |||
Net change in unrealized gains (losses) | 1,129.4 | (1,065.5) | |||
Net gains (losses) on investments | 714.1 | (1,086.1) | |||
Foreign currency | |||||
Cash and Investments | |||||
Net realized gains (losses) | (222.5) | 266.5 | |||
Net change in unrealized gains (losses) | 103.7 | (410.1) | |||
Net gains (losses) on investments | (118.8) | (143.6) | |||
Other | |||||
Cash and Investments | |||||
Net realized gains (losses) | 1.6 | (85.4) | |||
Net change in unrealized gains (losses) | 135 | (14.3) | |||
Net gains (losses) on investments | 136.6 | (99.7) | |||
Net gains (losses) on investments | |||||
Cash and Investments | |||||
Net realized gains (losses) | (129.6) | 917.8 | |||
Net change in unrealized gains (losses) | 2,079.1 | (2,491) | |||
Net gains (losses) on investments | $ 1,949.5 | $ (1,573.2) |
Investments in Associates - Sum
Investments in Associates - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 26, 2023 | Dec. 11, 2023 | Aug. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | |
Investments in Associates | |||||||
Fair value | $ 10,207.8 | $ 9,252.3 | |||||
Associates and joint ventures | 6,607.6 | 6,093.1 | $ 4,749.2 | ||||
Fairfax India investments in associates | 1,429.7 | 1,342.6 | |||||
Total | 8,037.3 | 7,435.7 | $ 6,098.1 | ||||
Share of profit (loss) of associates | $ 1,022.2 | 1,022.4 | |||||
Go Digit Infoworks Services Private Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 49% | ||||||
Stelco Holdings Inc. | |||||||
Investments in Associates | |||||||
Ownership percentage | 20.50% | ||||||
Insurance and reinsurance | |||||||
Investments in Associates | |||||||
Fair value | $ 711.2 | 1,069 | |||||
Associates and joint ventures | 368.7 | 649.1 | |||||
Total | 368.7 | 649.1 | |||||
Share of profit (loss) of associates | $ 80.7 | $ 38.1 | |||||
Insurance and reinsurance | Go Digit Infoworks Services Private Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 49% | 49% | |||||
Fair value | $ 477.2 | $ 479.3 | |||||
Associates and joint ventures | 146.6 | 104.4 | |||||
Total | 146.6 | 104.4 | |||||
Share of profit (loss) of associates | 43.2 | $ (11) | |||||
Insurance and reinsurance | Gulf Insurance Group K.S.C.P. | |||||||
Investments in Associates | |||||||
Ownership percentage | 90% | 43.70% | |||||
Fair value | $ 415.8 | ||||||
Associates and joint ventures | 405.2 | ||||||
Total | 405.2 | ||||||
Share of profit (loss) of associates | 42.6 | 60.7 | |||||
Insurance and reinsurance | Other | |||||||
Investments in Associates | |||||||
Fair value | 234 | 173.9 | |||||
Associates and joint ventures | 222.1 | 139.5 | |||||
Total | 222.1 | 139.5 | |||||
Share of profit (loss) of associates | (5.1) | (11.6) | |||||
Non-insurance | |||||||
Investments in Associates | |||||||
Fair value | 9,496.6 | 8,183.3 | |||||
Associates and joint ventures | 6,238.9 | 5,444 | |||||
Fairfax India investments in associates | 1,429.7 | 1,342.6 | |||||
Total | 7,668.6 | 6,786.6 | |||||
Share of profit (loss) of associates | 941.5 | 984.3 | |||||
Non-insurance | Stelco Holdings Inc. | |||||||
Investments in Associates | |||||||
Ownership percentage | 20.50% | ||||||
Non-insurance | India | |||||||
Investments in Associates | |||||||
Fair value | 3,013.9 | 2,739.2 | |||||
Associates and joint ventures | 457.4 | 505.7 | |||||
Fairfax India investments in associates | 1,429.7 | 1,342.6 | |||||
Total | 1,887.1 | 1,848.3 | |||||
Share of profit (loss) of associates | $ 106.9 | $ 142.5 | |||||
Non-insurance | India | Bangalore International Airport Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 64% | 54% | |||||
Fair value | $ 1,600 | $ 1,233.7 | |||||
Fairfax India investments in associates | 783 | 521.1 | |||||
Total | 783 | 521.1 | |||||
Share of profit (loss) of associates | $ 16 | $ (5.7) | |||||
Non-insurance | India | CSB Bank Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 49.70% | 49.70% | |||||
Fair value | $ 409.3 | $ 223.3 | |||||
Fairfax India investments in associates | 223 | 194.5 | |||||
Total | 223 | 194.5 | |||||
Share of profit (loss) of associates | $ 35.4 | $ 40.8 | |||||
Non-insurance | India | Quess Corp Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 34.70% | 30.90% | |||||
Fair value | $ 323.6 | $ 228.3 | |||||
Associates and joint ventures | 433 | 459.6 | |||||
Total | 433 | 459.6 | |||||
Share of profit (loss) of associates | $ (47) | $ 6.8 | |||||
Non-insurance | India | Sanmar Chemicals Group | |||||||
Investments in Associates | |||||||
Ownership percentage | 42.90% | 42.90% | |||||
Fair value | $ 302.9 | $ 337.8 | |||||
Fairfax India investments in associates | 156.1 | 159.8 | |||||
Total | 156.1 | 159.8 | |||||
Share of profit (loss) of associates | $ 0.6 | $ 36.4 | |||||
Non-insurance | India | IIFL Securities Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 30.90% | 37.10% | |||||
Fair value | $ 165.7 | $ 87.9 | |||||
Associates and joint ventures | 13.6 | 35.3 | |||||
Fairfax India investments in associates | 103.8 | 97.9 | |||||
Total | 117.4 | 133.2 | |||||
Share of profit (loss) of associates | $ 12.4 | $ 14.6 | |||||
Non-insurance | India | Seven Islands Shipping Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 48.50% | 48.50% | |||||
Fair value | $ 142.8 | $ 96.9 | |||||
Fairfax India investments in associates | 133.6 | 97.9 | |||||
Total | 133.6 | 97.9 | |||||
Share of profit (loss) of associates | 42.6 | $ 9.8 | |||||
Non-insurance | India | IIFL Finance Limited | |||||||
Investments in Associates | |||||||
Ownership percentage | 22.30% | ||||||
Fair value | $ 493.3 | ||||||
Fairfax India investments in associates | 242.8 | ||||||
Total | 242.8 | ||||||
Share of profit (loss) of associates | 45.1 | 36.5 | |||||
Non-insurance | India | Other | |||||||
Investments in Associates | |||||||
Fair value | 69.6 | 38 | |||||
Associates and joint ventures | 10.8 | 10.8 | |||||
Fairfax India investments in associates | 30.2 | 28.6 | |||||
Total | 41 | 39.4 | |||||
Share of profit (loss) of associates | 1.8 | 3.3 | |||||
Non-insurance | Real estate | |||||||
Investments in Associates | |||||||
Fair value | 177.3 | 162.4 | |||||
Associates and joint ventures | 177.3 | 164.4 | |||||
Total | 177.3 | 164.4 | |||||
Share of profit (loss) of associates | (7.4) | 19.3 | |||||
Non-insurance | Real estate | KWF Real Estate Ventures Limited Partnerships | |||||||
Investments in Associates | |||||||
Fair value | 104 | 101.1 | |||||
Associates and joint ventures | 104 | 101.1 | |||||
Total | 104 | 101.1 | |||||
Share of profit (loss) of associates | 6.4 | 16.5 | |||||
Non-insurance | Real estate | Other | |||||||
Investments in Associates | |||||||
Fair value | 73.3 | 61.3 | |||||
Associates and joint ventures | 73.3 | 63.3 | |||||
Total | 73.3 | 63.3 | |||||
Share of profit (loss) of associates | (13.8) | 2.8 | |||||
Non-insurance | Other | |||||||
Investments in Associates | |||||||
Fair value | 6,305.4 | 5,281.7 | |||||
Associates and joint ventures | 5,604.2 | 4,773.9 | |||||
Total | 5,604.2 | 4,773.9 | |||||
Share of profit (loss) of associates | $ 842 | $ 822.5 | |||||
Non-insurance | Other | Eurobank Ergasias Services & Holdings S.A | |||||||
Investments in Associates | |||||||
Ownership percentage | 34.10% | 34.10% | 32.20% | ||||
Fair value | $ 2,251.6 | $ 1,344.5 | |||||
Associates and joint ventures | 2,099.5 | 1,507.6 | |||||
Total | 2,099.5 | 1,507.6 | |||||
Share of profit (loss) of associates | $ 437.7 | $ 263 | |||||
Non-insurance | Other | Poseidon Corp. | |||||||
Investments in Associates | |||||||
Ownership percentage | 43.40% | 43.20% | |||||
Fair value | $ 2,046.3 | $ 1,864.7 | |||||
Associates and joint ventures | 1,706.4 | 1,506.3 | |||||
Total | 1,706.4 | 1,506.3 | |||||
Share of profit (loss) of associates | $ 149.6 | $ 258.2 | |||||
Non-insurance | Other | Resolute Forest Products Inc. | |||||||
Investments in Associates | |||||||
Ownership percentage | 32.20% | ||||||
Fair value | $ 508.5 | ||||||
Associates and joint ventures | 508.5 | ||||||
Total | 508.5 | ||||||
Share of profit (loss) of associates | $ 159 | ||||||
Non-insurance | Other | Stelco Holdings Inc. | |||||||
Investments in Associates | |||||||
Ownership percentage | 23.60% | 23.60% | |||||
Fair value | $ 491.6 | $ 423.3 | |||||
Associates and joint ventures | 291.6 | 304.8 | |||||
Total | 291.6 | $ 304.8 | |||||
Share of profit (loss) of associates | $ 23.7 | ||||||
Non-insurance | Other | EXCO Resources, Inc | |||||||
Investments in Associates | |||||||
Ownership percentage | 48.30% | 44.40% | |||||
Fair value | $ 435.2 | $ 544.8 | |||||
Associates and joint ventures | 417.6 | 288.4 | |||||
Total | 417.6 | 288.4 | |||||
Share of profit (loss) of associates | $ 129.1 | $ 81.9 | |||||
Non-insurance | Other | Peak Achievement Athletics | |||||||
Investments in Associates | |||||||
Ownership percentage | 42.60% | 42.60% | |||||
Fair value | $ 226.1 | $ 195.3 | |||||
Associates and joint ventures | 129.4 | 124.4 | |||||
Total | 129.4 | 124.4 | |||||
Share of profit (loss) of associates | $ 23.3 | $ 7.7 | |||||
Non-insurance | Other | Helios Fairfax Partners Corporation | |||||||
Investments in Associates | |||||||
Ownership percentage | 36.30% | 34.40% | |||||
Fair value | $ 91.5 | $ 104.1 | |||||
Associates and joint ventures | 197.6 | 183.2 | |||||
Total | 197.6 | 183.2 | |||||
Share of profit (loss) of associates | 9.2 | (23.9) | |||||
Non-insurance | Other | Partnerships, trusts and other | |||||||
Investments in Associates | |||||||
Fair value | 763.1 | 296.5 | |||||
Associates and joint ventures | 762.1 | 350.7 | |||||
Total | 762.1 | 350.7 | |||||
Share of profit (loss) of associates | $ 69.4 | $ 76.6 |
Investments in Associates - Bal
Investments in Associates - Balance sheet disclosures (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
As presented on the consolidated balance sheet: | ||||
Investments in associates, at fair value | $ 7,553.2 | $ 6,772.9 | ||
Fairfax India investments in associates, at fair value | 2,654.6 | 2,479.4 | ||
Total | 10,207.8 | 9,252.3 | ||
Associates and joint ventures | 6,607.6 | 6,093.1 | $ 4,749.2 | |
Fairfax India associates | 1,429.7 | 1,342.6 | ||
Total | $ 8,037.3 | $ 7,435.7 | $ 6,098.1 |
Investments in Associates - Ins
Investments in Associates - Insurance and reinsurance associates and joint ventures (Details) | 12 Months Ended | |
Dec. 26, 2023 | Dec. 31, 2022 | |
Insurance and reinsurance companies | Gulf Insurance | ||
Investments in Associates | ||
Ownership percentage | 90% | 43.70% |
Investments in Associates - Non
Investments in Associates - Non-insurance associates and joint ventures (Details) $ / shares in Units, $ in Millions, $ in Millions, ₨ in Billions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 12, 2023 USD ($) | Dec. 11, 2023 USD ($) | Jun. 21, 2023 USD ($) | Mar. 28, 2023 $ / shares | Mar. 01, 2023 USD ($) $ / shares | Jan. 12, 2023 USD ($) | Oct. 04, 2022 USD ($) | Aug. 31, 2022 USD ($) shares | Jul. 05, 2022 | Jul. 04, 2022 | Apr. 06, 2022 USD ($) $ / shares shares | Jun. 30, 2023 $ / shares shares | Dec. 31, 2023 USD ($) entity item | Dec. 31, 2023 INR (₨) entity item | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 | Aug. 31, 2022 CAD ($) shares | |
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | $ 1,022.2 | $ 1,022.4 | |||||||||||||||
Cash purchase price | 882 | 363.5 | |||||||||||||||
Atlas Corp | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Number of shares acquired on exercise of warrants | shares | 25,000,000 | ||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 8.05 | ||||||||||||||||
Realized gain on derecognition | $ 58.6 | ||||||||||||||||
Unrealized gain on derecognition of investments related to prior period | $ 95.8 | ||||||||||||||||
Grivalia Hospitality | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Ownership percentage | 78.40% | 33.50% | |||||||||||||||
Stelco Holdings Inc. | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Ownership percentage | 20.50% | ||||||||||||||||
Number of shares repurchased from investor | shares | 5,100,000 | 5,100,000 | |||||||||||||||
Non-insurance associates and joint ventures | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | 941.5 | 984.3 | |||||||||||||||
Non-insurance associates and joint ventures | India | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | 106.9 | 142.5 | |||||||||||||||
Non-insurance associates and joint ventures | Other | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | 842 | $ 822.5 | |||||||||||||||
Non-insurance associates and joint ventures | Atlas Corp | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Sale price per share | $ / shares | $ 15.50 | ||||||||||||||||
Proceeds from exercise of warrants | $ 78.7 | ||||||||||||||||
Number of shares owned by a related party | shares | 678,021 | ||||||||||||||||
Percentage of ownership interest held by related party | 0.30% | ||||||||||||||||
Ownership percentage | 43.20% | ||||||||||||||||
Number of shares acquired on exercise of warrants | shares | 25,000,000 | ||||||||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 8.05 | ||||||||||||||||
Cash consideration for acquisition of shares | $ 201.3 | ||||||||||||||||
Net loss on investments | 37.2 | ||||||||||||||||
Realized gain on derecognition | 58.6 | ||||||||||||||||
Unrealized gain on derecognition of investments related to prior period | 95.8 | ||||||||||||||||
Increase in equity accounted investment, fair value of acquired shares | $ 335.3 | ||||||||||||||||
Non-insurance associates and joint ventures | Atlas Corp | RiverStone Barbados AVLNs | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Cash consideration for acquisition of shares | $ 84.8 | ||||||||||||||||
Non-insurance associates and joint ventures | Poseidon Corp. | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Number of shares acquired by Fairfax | shares | 678,021 | ||||||||||||||||
Cash consideration for acquisition of shares, per share | $ / shares | $ 15.50 | ||||||||||||||||
Non-insurance associates and joint ventures | Poseidon Corp. | Other | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | $ 149.6 | $ 258.2 | |||||||||||||||
Ownership percentage | 43.40% | 43.40% | 43.20% | ||||||||||||||
Non-insurance associates and joint ventures | Resolute Forest Products Inc. | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Sale price per share | $ / shares | $ 20.50 | ||||||||||||||||
CVR per share value | $ / shares | $ 1.42 | ||||||||||||||||
Total consideration received from sale of interests in associates | $ 665.6 | ||||||||||||||||
Non-insurance associates and joint ventures | Resolute Forest Products Inc. | RiverStone Barbados AVLNs | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Fair value of shares included in sale of associate | 120.7 | ||||||||||||||||
Gain on sale of associate | $ 44.2 | ||||||||||||||||
Non-insurance associates and joint ventures | Resolute Forest Products Inc. | Other | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | $ 159 | ||||||||||||||||
Ownership percentage | 32.20% | ||||||||||||||||
Non-insurance associates and joint ventures | Grivalia Hospitality | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Ownership percentage | 78.40% | 33.50% | |||||||||||||||
Non-insurance associates and joint ventures | Stelco Holdings Inc. | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Ownership percentage | 20.50% | ||||||||||||||||
Number of shares repurchased from investor | shares | 5,100,000 | 5,100,000 | |||||||||||||||
Equity method investment, fair value | $ 352.2 | $ 461.3 | |||||||||||||||
Non-insurance associates and joint ventures | Stelco Holdings Inc. | Other | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | $ 23.7 | ||||||||||||||||
Ownership percentage | 23.60% | 23.60% | 23.60% | ||||||||||||||
Non-insurance associates and joint ventures | Bangalore International Airport Limited | India | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | $ 16 | $ (5.7) | |||||||||||||||
Ownership percentage | 64% | 64% | 54% | ||||||||||||||
Non-insurance associates and joint ventures | IIFL Finance | India | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | $ 45.1 | $ 36.5 | |||||||||||||||
Ownership percentage | 22.30% | ||||||||||||||||
Non-insurance associates and joint ventures | Quess Corp Limited | India | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | (47) | $ 6.8 | |||||||||||||||
Non-cash impairment charge | $ 52.8 | $ 0 | |||||||||||||||
Ownership percentage | 34.70% | 34.70% | 30.90% | ||||||||||||||
Non-insurance associates and joint ventures | Quess Corp Limited | Demerger | India | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Number of separate units formed | entity | 3 | 3 | |||||||||||||||
Number of shares to be received for each share held | item | 1 | 1 | |||||||||||||||
Non-insurance associates and joint ventures | Eurobank Ergasias Services & Holdings S.A | Other | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Share of profit (loss) of associates | $ 437.7 | $ 263 | |||||||||||||||
Ownership percentage | 34.10% | 34.10% | 34.10% | 32.20% | |||||||||||||
Cash purchase price | $ 82 | ||||||||||||||||
Non-insurance associates and joint ventures | Fairfax India | Bangalore International Airport Limited | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Ownership percentage | 64% | 57% | |||||||||||||||
Percentage of interests acquired | 7% | 3% | |||||||||||||||
Cash consideration for acquisition of shares | $ 175 | $ 75 | |||||||||||||||
Non-insurance associates and joint ventures | Fairfax India | IIFL Finance | |||||||||||||||||
Investments in Associates | |||||||||||||||||
Percentage of interest sold | 7.10% | 7.10% | |||||||||||||||
Proceeds from sale of equity interest | $ 177.3 | ₨ 14.7 | |||||||||||||||
Ownership percentage | 15.10% | 15.10% | |||||||||||||||
Realized gain on sale of equity method investment | $ 88.6 | ||||||||||||||||
Realized remeasurement gain on reclassification of equity method investment to FVTPL | $ 204.2 |
Investments in Associates - Ann
Investments in Associates - Annual changes in carrying value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the carrying value of investments in associates | ||
Balance - January 1 | $ 7,435.7 | $ 6,098.1 |
Share of pre-tax comprehensive income (loss): | ||
Share of profit | 1,100 | 1,022.4 |
Impairments | (77.8) | |
Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans | 36.9 | (150.1) |
Share of gains (losses) on defined benefit plans | (5.6) | 69.6 |
Share of pre-tax comprehensive income (loss) | 1,053.5 | 941.9 |
Dividends and distributions received | (246.7) | (182.9) |
Purchase and acquisitions | 1,177.3 | 527.8 |
Divestitures and other net changes in capitalization | (814.2) | 32.4 |
Reclassifications | (572.3) | 197.5 |
Foreign exchange effect and other | 4 | (179.1) |
Balance - December 31 | 8,037.3 | 7,435.7 |
Non-cash impairment charges | 77.8 | |
Gulf Insurance | ||
Share of pre-tax comprehensive income (loss): | ||
Fair value of investment in associate consolidated | 151.8 | |
Associates | ||
Changes in the carrying value of investments in associates | ||
Balance - January 1 | 5,312.2 | 3,852.8 |
Share of pre-tax comprehensive income (loss): | ||
Share of profit | 936 | 864.3 |
Impairments | (19.8) | |
Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans | 39.2 | (111.5) |
Share of gains (losses) on defined benefit plans | 0.9 | 74.4 |
Share of pre-tax comprehensive income (loss) | 956.3 | 827.2 |
Dividends and distributions received | (208.7) | (142.2) |
Purchase and acquisitions | 884.8 | 429.1 |
Divestitures and other net changes in capitalization | (709.9) | 9.9 |
Reclassifications | (379.3) | 352.2 |
Foreign exchange effect and other | 10.4 | (16.8) |
Balance - December 31 | 5,865.8 | 5,312.2 |
Joint ventures | ||
Changes in the carrying value of investments in associates | ||
Balance - January 1 | 780.9 | 896.4 |
Share of pre-tax comprehensive income (loss): | ||
Share of profit | 12.9 | 26.1 |
Impairments | (58) | |
Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans | 1.1 | (53) |
Share of gains (losses) on defined benefit plans | (0.8) | 0.6 |
Share of pre-tax comprehensive income (loss) | (44.8) | (26.3) |
Dividends and distributions received | (24.8) | (33.7) |
Purchase and acquisitions | 42.5 | 88.6 |
Divestitures and other net changes in capitalization | (14.6) | (11.9) |
Reclassifications | (114.3) | |
Foreign exchange effect and other | 2.6 | (17.9) |
Balance - December 31 | 741.8 | 780.9 |
Fairfax India associates | ||
Changes in the carrying value of investments in associates | ||
Balance - January 1 | 1,342.6 | 1,348.9 |
Share of pre-tax comprehensive income (loss): | ||
Share of profit | 151.1 | 132 |
Share of other comprehensive income (loss), excluding gains (losses) on defined benefit plans | (3.4) | 14.4 |
Share of gains (losses) on defined benefit plans | (5.7) | (5.4) |
Share of pre-tax comprehensive income (loss) | 142 | 141 |
Dividends and distributions received | (13.2) | (7) |
Purchase and acquisitions | 250 | 10.1 |
Divestitures and other net changes in capitalization | (89.7) | 34.4 |
Reclassifications | (193) | (40.4) |
Foreign exchange effect and other | (9) | (144.4) |
Balance - December 31 | $ 1,429.7 | $ 1,342.6 |
Derivatives - Summary (Details)
Derivatives - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Derivatives | |||
Derivative financial assets | $ 972.5 | $ 467.8 | |
Derivative financial liabilities | 444.9 | 191 | $ 152.9 |
Atlas Corp | |||
Derivatives | |||
Fair value of warrants outstanding | 13.5 | ||
Equity derivative contracts | |||
Derivatives | |||
Notional amount | 4,101.7 | 1,946.5 | |
Cost | 149.1 | 68 | |
Derivative financial assets | 595.7 | 258.1 | |
Derivative financial liabilities | 32.5 | 19.4 | |
RiverStone Barbados AVLNs | |||
Derivatives | |||
Notional amount | 517.5 | ||
Derivative financial assets | 30.7 | ||
Foreign currency derivative contracts | |||
Derivatives | |||
Derivative financial assets | 65 | 49 | |
Derivative financial liabilities | 158.8 | 106.8 | |
Foreign currency derivative contracts | AGT Food and Ingredients Inc. (AGT) | |||
Derivatives | |||
Derivative financial liabilities | 60.8 | 56.2 | |
Other derivative contracts | |||
Derivatives | |||
Cost | 254.2 | 289.8 | |
Derivative financial assets | 311.8 | 130 | |
Derivative financial liabilities | $ 253.6 | $ 64.8 |
Derivatives - Equity derivative
Derivatives - Equity derivative contracts (Details) $ / shares in Units, $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2023 CAD ($) $ / shares shares | Dec. 31, 2022 CAD ($) $ / shares shares | |
Derivatives | |||||
Net gains (losses) on investments | $ 1,949.5 | $ (1,573.2) | |||
Net changes in capitalization | (319.3) | (1,244.5) | |||
Derivative financial assets | 972.5 | 467.8 | |||
Retained earnings | |||||
Derivatives | |||||
Net changes in capitalization | 19.5 | (145.5) | |||
RiverStone Barbados AVLNs | |||||
Derivatives | |||||
Net gains (losses) on investments | $ 95.6 | ||||
Net Gains on Closure of Financial Instruments | 65.8 | ||||
RiverStone Barbados AVLNs | Retained earnings | |||||
Derivatives | |||||
Net changes in capitalization | $ 29.8 | ||||
Equity total return swaps - long positions, investment purposes | |||||
Derivatives | |||||
Notional amount of equity contracts entered into during the period | 200.2 | ||||
Equity total return swaps - long positions, individual equities | |||||
Derivatives | |||||
Notional amount | 1,112.8 | 1,012.6 | |||
Equity total return swaps - long positions, individual equities | Fairfax subordinate voting shares | |||||
Derivatives | |||||
Notional amount | $ 732.5 | $ 732.5 | $ 935 | $ 935 | |
Number of shares under equity swap contracts (in shares) | shares | 1,964,155 | 1,964,155 | 1,964,155 | 1,964,155 | |
Notional amount per share (in dollars per share) | (per share) | $ 372.96 | $ 372.96 | $ 476.03 | $ 476.03 | |
Net gains (losses) on investments | $ 624.8 | $ 255.4 |
Derivatives - Other derivative
Derivatives - Other derivative contracts (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives | ||
Net gains (losses) on investments | $ 1,949.5 | $ (1,573.2) |
U.S. treasury bond forward contracts | ||
Derivatives | ||
Notional amount | 8,000 | |
Net gains (losses) on investments | 159.8 | 162.4 |
Principal amount of derivatives settled through physical delivery of underlying instrument | 6,890 | |
Long-dated U.S. treasury bond forward contracts | ||
Derivatives | ||
Notional amount | $ 292.8 | $ 183.7 |
Term of contracts | 6 months | 6 months |
Interest rate swap contracts | ||
Derivatives | ||
Notional amount | $ 1,900 | $ 0 |
Term of contracts | 2 years | 2 years |
Principal amount of derivatives settled through physical delivery of underlying instrument | $ 2,261.5 |
Derivatives - Counterparty coll
Derivatives - Counterparty collateral (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Cash | Collateral deposits on derivative contracts for the benefit of the company | ||
Derivatives | ||
Financial assets pledged as collateral | $ 42.2 | $ 9.5 |
Government securities | ||
Derivatives | ||
Financial assets pledged as collateral | 492.3 | 274.9 |
Government securities | Collateral deposits on derivative contracts for the benefit of the company | ||
Derivatives | ||
Financial assets pledged as collateral | 492.3 | 274.9 |
Holding company cash and investments | Collateral deposits on derivative contracts for the benefit of the derivative counterparties | ||
Derivatives | ||
Financial assets pledged as collateral | 337 | 155.9 |
Amount of collateral originally required for deposit | 270.3 | 124.8 |
Amount of collateral deposits attributable to changes in fair value since the most recent reset date | $ 66.7 | $ 31.1 |
Derivatives - Hedges (Details)
Derivatives - Hedges (Details) € in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | |
Derivatives | ||||||
Net gains (losses) on investments | $ 1,949.5 | $ (1,573.2) | ||||
4.95% due March 3, 2025 (Cdn$348.6) | ||||||
Derivatives | ||||||
Borrowings, principal | $ 348.6 | |||||
Interest rate | 4.95% | 4.95% | 4.95% | |||
Hedges of net investment in Canadian subsidiaries | Unsecured senior notes | ||||||
Derivatives | ||||||
Principal amount of hedged item | $ 2,788.6 | $ 2,800 | ||||
Fair value of hedged item | $ 2,061.1 | 1,926.8 | ||||
Net gains (losses) on investments | (56.6) | 149.5 | ||||
Hedges of net investment in European operations | Unsecured senior notes | ||||||
Derivatives | ||||||
Principal amount of hedged item | € | € 750 | € 750 | ||||
Fair value of hedged item | 791.9 | 698.3 | ||||
Net gains (losses) on investments | $ (27.8) | $ 51.8 |
Insurance Contract Liabilitie_2
Insurance Contract Liabilities - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Insurance Contract Liabilities | ||||
Insurance contracts issued | $ 46,334.8 | $ 40,054.4 | ||
Assets for insurance acquisition cash flows | (163.4) | (147.8) | ||
Insurance contract liabilities | 46,171.4 | 39,906.6 | $ 39,742.2 | |
Estimates of undiscounted gross cumulative claims | ||||
Insurance Contract Liabilities | ||||
Loss reserve development | (171.5) | |||
PAA | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 41,863.4 | $ 36,549.5 | 36,549.5 | 35,468 |
Assets for insurance acquisition cash flows | (160) | (147.8) | ||
Insurance contract liabilities | 41,703.4 | 36,401.7 | ||
PAA | Life insurance and Run-off | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 70.7 | $ 59.7 | 59.7 | $ 52.4 |
GMM | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 4,471.4 | 3,504.9 | ||
Assets for insurance acquisition cash flows | (3.4) | |||
Insurance contract liabilities | 4,468 | 3,504.9 | ||
GMM | LRC | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 3,122.6 | 2,515.9 | ||
GMM | LIC | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 1,348.8 | 989 | ||
GMM | Global Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 396.9 | 0 | ||
GMM | International Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 356.3 | 375.6 | ||
GMM | Life insurance and Run-off | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | $ 3,718.2 | $ 3,129.3 |
Insurance Contract Liabilitie_3
Insurance Contract Liabilities - Contracts measured under PAA (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Insurance Contract Liabilities | ||||
Insurance contracts issued | $ 46,334.8 | $ 40,054.4 | ||
PAA | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 41,863.4 | $ 36,549.5 | 36,549.5 | $ 35,468 |
PAA | Property and Casualty Insurance and Reinsurance | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 41,792.7 | 36,489.8 | 36,489.8 | 35,415.6 |
PAA | Property and Casualty Insurance and Reinsurance | North American Insurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 10,146 | 9,037.8 | 9,037.8 | 8,849.3 |
PAA | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 27,008.2 | 24,733.1 | 24,733.1 | 23,490.8 |
PAA | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 4,638.5 | 2,718.9 | 2,718.9 | 3,075.5 |
PAA | Life insurance and Run-off | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 70.7 | 59.7 | 59.7 | 52.4 |
PAA | LRC | Property and Casualty Insurance and Reinsurance | North American Insurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 1,140.8 | 1,065.4 | 1,065.4 | 923.1 |
PAA | LRC | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 1,071 | 449.2 | 449.2 | 738.9 |
PAA | LRC | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 1,399 | 386.3 | 386.3 | 430 |
PAA | LIC | Property and Casualty Insurance and Reinsurance | North American Insurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 9,005.2 | 7,972.4 | 7,972.4 | 7,926.2 |
PAA | LIC | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | 25,937.2 | 24,283.9 | 24,283.9 | 22,751.9 |
PAA | LIC | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||||
Insurance Contract Liabilities | ||||
Insurance contracts issued | $ 3,239.5 | $ 2,332.6 | $ 2,332.6 | $ 2,645.5 |
Insurance Contract Liabilitie_4
Insurance Contract Liabilities - Movements in insurance contracts issued (Details) - Insurance contracts liabilities - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2023 | Jan. 01, 2022 | |
Cash flows: | ||||
Loss component | $ 64.7 | $ 139 | $ 139 | $ 190.9 |
Global Insurers and Reinsurers | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Amortization of acquisition costs and other | 2,298.1 | 2,139.2 | ||
Net finance (income) expense from insurance contracts | 1,401.4 | 1,171 | ||
Cash flows: | ||||
Premiums received | 15,665.9 | 14,602.3 | ||
Claims and other insurance service expenses paid, including investment components | (9,275.5) | (7,256.3) | ||
Insurance acquisition cash flows | (2,524.1) | (2,144.5) | ||
Release of risk adjustment for non-financial risk as claims are paid | (589.9) | (508.5) | ||
Global Insurers and Reinsurers | Estimates of present value of future cash flows | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 9,596.8 | 9,950.5 | ||
Global Insurers and Reinsurers | Risk adjustment for non-financial risk | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 677.1 | 597.9 | ||
Global Insurers and Reinsurers | Liability for incurred claims | Estimates of present value of future cash flows | ||||
Cash flows: | ||||
Insurance contracts, favorable prior year reserve development | (290.7) | |||
Insurance contracts, adverse prior year reserve development | 94.3 | |||
North American Insurers | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Amortization of acquisition costs and other | 1,790.7 | 1,561.3 | ||
Net finance (income) expense from insurance contracts | 407.6 | 422.1 | ||
Cash flows: | ||||
Premiums received | 8,229 | 7,442.7 | ||
Claims and other insurance service expenses paid, including investment components | (4,650.1) | (3,829.6) | ||
Insurance acquisition cash flows | (1,942.8) | (1,717.5) | ||
Release of risk adjustment for non-financial risk as claims are paid | (155.9) | (133.5) | ||
North American Insurers | Estimates of present value of future cash flows | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 5,104.1 | 4,336.1 | ||
North American Insurers | Risk adjustment for non-financial risk | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 191.1 | 152.8 | ||
North American Insurers | Liability for incurred claims | Estimates of present value of future cash flows | ||||
Cash flows: | ||||
Insurance contracts, adverse prior year reserve development | 50.2 | 133.2 | ||
International Insurers and Reinsurers | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Amortization of acquisition costs and other | 565.3 | 456 | ||
Net finance (income) expense from insurance contracts | 156.7 | |||
Cash flows: | ||||
Premiums received | 3,296.3 | 2,665.1 | ||
Claims and other insurance service expenses paid, including investment components | (1,612.3) | (1,507.3) | ||
Insurance acquisition cash flows | (729.7) | (546.3) | ||
International Insurers and Reinsurers | Estimates of present value of future cash flows | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 1,779.7 | 1,685.7 | ||
International Insurers and Reinsurers | Risk adjustment for non-financial risk | ||||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 103 | 74.4 | ||
International Insurers and Reinsurers | Liability for incurred claims | Estimates of present value of future cash flows | ||||
Cash flows: | ||||
Insurance contracts, favorable prior year reserve development | (398.7) | |||
Insurance contracts, adverse prior year reserve development | 167.2 | |||
Property and Casualty Insurance and Reinsurance | ||||
Insurance Contract Liabilities | ||||
Beginning Balance | 36,489.8 | 35,415.6 | ||
Changes in the consolidated statement of comprehensive income: | ||||
Insurance revenue | (26,095) | (24,494.8) | ||
Incurred claims and other insurance service expenses | 17,435.6 | 16,904.2 | ||
Amortization of acquisition costs and other | 4,654.1 | 4,156.5 | ||
Prior year reserve development and release of risk adjustment on prior year claims | (868) | (870.1) | ||
Insurance service expenses | 21,221.7 | 20,190.6 | ||
Insurance service result | (4,873.3) | (4,304.2) | ||
Net finance (income) expense from insurance contracts | 1,969.9 | (1,582.2) | ||
Foreign exchange effects and other | 85.8 | (641.5) | ||
Total changes in the consolidated statement of comprehensive income | (2,817.6) | (6,527.9) | ||
Cash flows: | ||||
Premiums received | 27,191.2 | 24,710.1 | ||
Claims and other insurance service expenses paid, including investment components | (15,537.9) | (12,593.2) | ||
Insurance acquisition cash flows | (5,196.6) | (4,408.3) | ||
Changes in funds withheld | 120.5 | (109.2) | ||
Total changes from cash flows | 6,577.2 | 7,599.4 | ||
Investment components and other | (23.3) | 2.7 | ||
Contracts recognized on acquisition of subsidiary | 1,566.6 | |||
Ending Balance | 41,792.7 | 36,489.8 | ||
Property and Casualty Insurance and Reinsurance | Liability for remaining coverage | ||||
Insurance Contract Liabilities | ||||
Beginning Balance | 1,900.9 | 2,092 | ||
Changes in the consolidated statement of comprehensive income: | ||||
Insurance revenue | (26,095) | (24,494.8) | ||
Incurred claims and other insurance service expenses | (16.2) | 106.8 | ||
Amortization of acquisition costs and other | 4,654.1 | 4,156.5 | ||
Insurance service expenses | 4,637.9 | 4,263.3 | ||
Insurance service result | (21,457.1) | (20,231.5) | ||
Net finance (income) expense from insurance contracts | 4.2 | 3.9 | ||
Foreign exchange effects and other | 23.8 | 9.5 | ||
Total changes in the consolidated statement of comprehensive income | (21,429.1) | (20,218.1) | ||
Cash flows: | ||||
Premiums received | 27,191.2 | 24,710.1 | ||
Insurance acquisition cash flows | (5,196.6) | (4,408.3) | ||
Changes in funds withheld | 142.3 | (145.9) | ||
Total changes from cash flows | 22,136.9 | 20,155.9 | ||
Investment components and other | (170.4) | (128.9) | ||
Contracts recognized on acquisition of subsidiary | 1,172.5 | |||
Ending Balance | 3,610.8 | 1,900.9 | ||
Property and Casualty Insurance and Reinsurance | Liability for incurred claims | Estimates of present value of future cash flows | ||||
Insurance Contract Liabilities | ||||
Beginning Balance | 32,108.9 | 30,896.3 | ||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 16,480.6 | 15,972.3 | ||
Prior year reserve development and release of risk adjustment on prior year claims | (73.3) | (171.2) | ||
Insurance service expenses | 16,407.3 | 15,801.1 | ||
Insurance service result | 16,407.3 | 15,801.1 | ||
Net finance (income) expense from insurance contracts | 1,965.7 | (1,586.1) | ||
Foreign exchange effects and other | 90.1 | (577.5) | ||
Total changes in the consolidated statement of comprehensive income | 18,463.1 | 13,637.5 | ||
Cash flows: | ||||
Claims and other insurance service expenses paid, including investment components | (15,537.9) | (12,593.2) | ||
Changes in funds withheld | (21.8) | 36.7 | ||
Total changes from cash flows | (15,559.7) | (12,556.5) | ||
Investment components and other | 147.1 | 131.6 | ||
Contracts recognized on acquisition of subsidiary | 371.2 | |||
Ending Balance | 35,530.6 | 32,108.9 | ||
Property and Casualty Insurance and Reinsurance | Liability for incurred claims | Risk adjustment for non-financial risk | ||||
Insurance Contract Liabilities | ||||
Beginning Balance | 2,480 | 2,427.3 | ||
Changes in the consolidated statement of comprehensive income: | ||||
Incurred claims and other insurance service expenses | 971.2 | 825.1 | ||
Prior year reserve development and release of risk adjustment on prior year claims | (794.7) | (698.9) | ||
Insurance service expenses | 176.5 | 126.2 | ||
Insurance service result | 176.5 | 126.2 | ||
Foreign exchange effects and other | (28.1) | (73.5) | ||
Total changes in the consolidated statement of comprehensive income | 148.4 | 52.7 | ||
Cash flows: | ||||
Contracts recognized on acquisition of subsidiary | 22.9 | |||
Ending Balance | $ 2,651.3 | $ 2,480 |
Insurance Contract Liabilitie_5
Insurance Contract Liabilities - Estimates of undiscounted gross cumulative claims (Details) - Estimates of undiscounted gross cumulative claims - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance Contract Liabilities | |||||||
Property and casualty provision for losses and loss adjustment expenses | $ 41,221.8 | $ 36,306.4 | $ 32,329.1 | $ 28,700.5 | $ 26,528.3 | $ 25,426.9 | $ 25,284.5 |
Favourable (adverse) development | (164.1) | 287.5 | 232.1 | (83.5) | (424.7) | 729.8 | |
Effect of foreign currency translation | |||||||
Insurance Contract Liabilities | |||||||
Favourable (adverse) development | 7.4 | 163.6 | 271 | 309.6 | 222.5 | 483.5 | |
Favourable (adverse) loss reserve development | |||||||
Insurance Contract Liabilities | |||||||
Favourable (adverse) development | (171.5) | 123.9 | (38.9) | (393.1) | (647.2) | 246.3 | |
One year later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 10,341.7 | 8,410.7 | 6,986.7 | 7,018.7 | 7,191 | 6,917.3 | |
Reserves re-estimated | $ 36,470.5 | 31,640.8 | 28,119.8 | 26,259.1 | 25,256.3 | 24,131.2 | |
Two years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 14,571.5 | 11,990.6 | 11,133.7 | 11,487.9 | 11,052.3 | ||
Reserves re-estimated | $ 32,041.6 | 27,894.1 | 26,052.6 | 25,124 | 24,091.7 | ||
Three years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 16,410.5 | 14,702.8 | 14,318.9 | 13,928.6 | |||
Reserves re-estimated | $ 28,468.4 | 25,961.4 | 25,132.6 | 23,949.9 | |||
Four years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 17,959.2 | 16,807.6 | 15,843.4 | ||||
Reserves re-estimated | $ 26,611.8 | 25,286.7 | 24,046.1 | ||||
Five years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 19,121.9 | 17,528.7 | |||||
Reserves re-estimated | $ 25,851.6 | 24,202.6 | |||||
Six years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 19,141.7 | ||||||
Reserves re-estimated | $ 24,554.7 |
Insurance Contract Liabilitie_6
Insurance Contract Liabilities - Reconciliation to the LIC (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Estimates of undiscounted gross cumulative claims | |||||||
Insurance Contract Liabilities | |||||||
Property and casualty provision for losses and loss adjustment expenses | $ 41,221.8 | $ 36,306.4 | $ 32,329.1 | $ 28,700.5 | $ 26,528.3 | $ 25,426.9 | $ 25,284.5 |
Effect of discounting | (6,193.1) | ||||||
Risk adjustment for non-financial risk | 3,137.6 | ||||||
Other | 347.2 | ||||||
Liability for incurred claims | 38,513.5 | ||||||
Estimates of undiscounted gross cumulative claims | GMM | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | (331.6) | ||||||
Estimates of undiscounted gross cumulative claims | PAA | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 38,181.9 | ||||||
Estimates of undiscounted gross cumulative claims | PAA | Estimates of present value of future cash flows | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 35,530.6 | ||||||
Estimates of undiscounted gross cumulative claims | PAA | Risk adjustment for non-financial risk | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 2,651.3 | ||||||
Estimates of undiscounted net cumulative claims | |||||||
Insurance Contract Liabilities | |||||||
Property and casualty provision for losses and loss adjustment expenses | 31,618.1 | $ 27,800.1 | $ 24,068.6 | $ 21,468.6 | $ 19,858.9 | $ 19,334.7 | $ 19,750.1 |
Effect of discounting | (4,679.9) | ||||||
Risk adjustment for non-financial risk | 2,134 | ||||||
Other | (277.6) | ||||||
Liability for incurred claims | 28,794.6 | ||||||
Estimates of undiscounted net cumulative claims | GMM | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | (286.3) | ||||||
Estimates of undiscounted net cumulative claims | PAA | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 28,508.3 | ||||||
Net Liability for incurred claims | 28,508.3 | ||||||
Estimates of undiscounted net cumulative claims | PAA | Estimates of present value of future cash flows | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 26,709.6 | ||||||
Estimates of undiscounted net cumulative claims | PAA | Risk adjustment for non-financial risk | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 1,798.7 | ||||||
LIC | PAA | |||||||
Insurance Contract Liabilities | |||||||
Net Liability for incurred claims | 38,181.9 | ||||||
LIC | PAA | Estimates of present value of future cash flows | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 35,530.6 | ||||||
LIC | PAA | Risk adjustment for non-financial risk | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 2,651.3 | ||||||
AIC | PAA | |||||||
Insurance Contract Liabilities | |||||||
Net Liability for incurred claims | 9,673.6 | ||||||
AIC | PAA | Estimates of present value of future cash flows | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | 8,821 | ||||||
AIC | PAA | Risk adjustment for non-financial risk | |||||||
Insurance Contract Liabilities | |||||||
Liability for incurred claims | $ 852.6 |
Insurance Contract Liabilitie_7
Insurance Contract Liabilities - Estimates of undiscounted net cumulative claims (Details) - Estimates of undiscounted net cumulative claims - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance Contract Liabilities | |||||||
Property and casualty provision for losses and loss adjustment expenses | $ 31,618.1 | $ 27,800.1 | $ 24,068.6 | $ 21,468.6 | $ 19,858.9 | $ 19,334.7 | $ 19,750.1 |
Favourable (adverse) development | 265.5 | (83.2) | (259.6) | (410.5) | (254.6) | 910.5 | |
Effect of foreign currency translation | |||||||
Insurance Contract Liabilities | |||||||
Favourable (adverse) development | 12.2 | 126.4 | 108.6 | 101.7 | 9.4 | 183.4 | |
Favourable (adverse) loss reserve development | |||||||
Insurance Contract Liabilities | |||||||
Favourable (adverse) development | 253.3 | (209.6) | (368.2) | (512.2) | (264) | 727.1 | |
One year later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 7,791.6 | 6,415.3 | 5,426.1 | 5,339.8 | 5,407 | 5,297.4 | |
Reserves re-estimated | $ 27,534.6 | 23,808.7 | 21,233.4 | 19,587.2 | 19,052.8 | 18,642.9 | |
Two years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 11,042.3 | 9,269.8 | 8,480.3 | 8,606.4 | 8,394.6 | ||
Reserves re-estimated | $ 24,151.8 | 21,342.5 | 19,585.7 | 18,937.4 | 18,411.4 | ||
Three years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 12,456.8 | 11,216.3 | 10,719 | 10,562.7 | |||
Reserves re-estimated | $ 21,728.2 | 19,845.5 | 19,052.3 | 18,275.8 | |||
Four years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 13,473.3 | 12,624.3 | 12,010 | ||||
Reserves re-estimated | $ 20,269.4 | 19,227.2 | 18,392 | ||||
Five years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 14,142.2 | 13,291.3 | |||||
Reserves re-estimated | $ 19,589.3 | 18,589.3 | |||||
Six years later | |||||||
Insurance Contract Liabilities | |||||||
Cumulative payments | 14,348.9 | ||||||
Reserves re-estimated | $ 18,839.6 |
Reinsurance Contract Assets H_3
Reinsurance Contract Assets Held - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | $ 10,887.7 | $ 9,691.5 | $ 9,893.1 | |
PAA | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 9,856.3 | $ 8,679.2 | 8,679.2 | 8,590 |
PAA | Life insurance and Run-off | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 2.6 | $ 5 | 5 | $ 2.9 |
GMM | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 1,031.4 | 1,012.3 | ||
GMM | Global Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 321.6 | 320 | ||
GMM | International Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 262.1 | 290.4 | ||
GMM | Life insurance and Run-off | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | $ 447.7 | $ 401.9 |
Reinsurance Contract Assets H_4
Reinsurance Contract Assets Held - Contracts measured under PAA (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | $ 10,887.7 | $ 9,691.5 | $ 9,893.1 | |
PAA | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 9,856.3 | $ 8,679.2 | 8,679.2 | 8,590 |
PAA | Property and Casualty Insurance and Reinsurance | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 9,853.7 | 8,674.2 | 8,674.2 | 8,587.1 |
PAA | Property and Casualty Insurance and Reinsurance | North American Insurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 1,180.3 | 959.3 | 959.3 | 889 |
PAA | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 6,960.6 | 6,451.4 | 6,451.4 | 6,083.8 |
PAA | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 1,712.8 | 1,263.5 | 1,263.5 | 1,614.3 |
PAA | Life insurance and Run-off | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 2.6 | 5 | 5 | 2.9 |
PAA | ARC | Property and Casualty Insurance and Reinsurance | North American Insurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | (70) | (15.2) | (15.2) | (12.9) |
PAA | ARC | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | (46.6) | (182.1) | (182.1) | (166.4) |
PAA | ARC | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 296.7 | 53.3 | 53.3 | 43.6 |
PAA | AIC | Property and Casualty Insurance and Reinsurance | North American Insurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 1,250.3 | 974.5 | 974.5 | 901.9 |
PAA | AIC | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | 7,007.2 | 6,633.5 | 6,633.5 | 6,250.2 |
PAA | AIC | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||||
Reinsurance Contract Assets Held | ||||
Reinsurance contract assets held | $ 1,416.1 | $ 1,210.2 | $ 1,210.2 | $ 1,570.7 |
Reinsurance Contract Assets H_5
Reinsurance Contract Assets Held - Movements in reinsurance contract assets held (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2023 | Jan. 01, 2022 | Dec. 31, 2021 | |
Insurance contracts liabilities | |||||
Cash flows: | |||||
Loss component | $ 64.7 | $ 139 | $ 139 | $ 190.9 | |
Reinsurance contracts assets held | |||||
Cash flows: | |||||
Loss component | 50.1 | $ 50.1 | $ 23 | $ 41.9 | |
Global Insurers and Reinsurers | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Net finance income (expense) from reinsurance contract assets held | (1,401.4) | (1,171) | |||
Cash flows: | |||||
Amounts received | (15,665.9) | (14,602.3) | |||
Release of risk adjustment for non-financial risk as claims are paid | (589.9) | (508.5) | |||
Global Insurers and Reinsurers | Reinsurance contracts assets held | |||||
Cash flows: | |||||
Premiums paid | 2,640.5 | 2,506 | |||
Amounts received | (2,005) | (1,333) | |||
Release of risk adjustment for non-financial risk as claims are paid | (200.9) | (198.4) | |||
Global Insurers and Reinsurers | Estimates of present value of future cash flows | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | (9,596.8) | (9,950.5) | |||
Global Insurers and Reinsurers | Estimates of present value of future cash flows | Reinsurance contracts assets held | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 1,996.4 | 1,977.6 | |||
Net finance income (expense) from reinsurance contract assets held | 392.6 | 279.8 | |||
Global Insurers and Reinsurers | Risk adjustment for non-financial risk | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | (677.1) | (597.9) | |||
Global Insurers and Reinsurers | Risk adjustment for non-financial risk | Reinsurance contracts assets held | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 219.3 | 176 | |||
Global Insurers and Reinsurers | Assets for incurred claims | Estimates of present value of future cash flows | Insurance contracts liabilities | |||||
Cash flows: | |||||
Insurance contracts, favorable prior year reserve development | 98 | ||||
Insurance contracts, adverse prior year reserve development | (43.8) | ||||
North American Insurers | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Net finance income (expense) from reinsurance contract assets held | (407.6) | (422.1) | |||
Cash flows: | |||||
Amounts received | (8,229) | (7,442.7) | |||
Release of risk adjustment for non-financial risk as claims are paid | (155.9) | (133.5) | |||
North American Insurers | Reinsurance contracts assets held | |||||
Cash flows: | |||||
Premiums paid | 1,122.7 | 880.2 | |||
Amounts received | (793.3) | (526.8) | |||
Release of risk adjustment for non-financial risk as claims are paid | (40.4) | (24.3) | |||
North American Insurers | Estimates of present value of future cash flows | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | (5,104.1) | (4,336.1) | |||
North American Insurers | Estimates of present value of future cash flows | Reinsurance contracts assets held | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 973.7 | 559.5 | |||
Net finance income (expense) from reinsurance contract assets held | 49.7 | (28.9) | |||
North American Insurers | Risk adjustment for non-financial risk | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | (191.1) | (152.8) | |||
North American Insurers | Risk adjustment for non-financial risk | Reinsurance contracts assets held | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 53.1 | 40 | |||
North American Insurers | Assets for incurred claims | Estimates of present value of future cash flows | Insurance contracts liabilities | |||||
Cash flows: | |||||
Insurance contracts, favorable prior year reserve development | 53 | 98.8 | |||
International Insurers and Reinsurers | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Net finance income (expense) from reinsurance contract assets held | (156.7) | ||||
Cash flows: | |||||
Amounts received | (3,296.3) | (2,665.1) | |||
International Insurers and Reinsurers | Reinsurance contracts assets held | |||||
Cash flows: | |||||
Premiums paid | 1,023 | 863.1 | |||
Amounts received | (704.3) | (555.5) | |||
International Insurers and Reinsurers | Estimates of present value of future cash flows | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | (1,779.7) | (1,685.7) | |||
International Insurers and Reinsurers | Estimates of present value of future cash flows | Reinsurance contracts assets held | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 526.1 | 622.3 | |||
Net finance income (expense) from reinsurance contract assets held | 78.6 | 17.6 | |||
International Insurers and Reinsurers | Risk adjustment for non-financial risk | Insurance contracts liabilities | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | (103) | (74.4) | |||
International Insurers and Reinsurers | Risk adjustment for non-financial risk | Reinsurance contracts assets held | |||||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 57.7 | 45.7 | |||
International Insurers and Reinsurers | Assets for incurred claims | Estimates of present value of future cash flows | Insurance contracts liabilities | |||||
Cash flows: | |||||
Insurance contracts, favorable prior year reserve development | 217.8 | ||||
Insurance contracts, adverse prior year reserve development | (359.9) | ||||
Property and Casualty Insurance and Reinsurance | Insurance contracts liabilities | |||||
Reinsurance Contract Assets Held | |||||
Beginning Balance | (36,489.8) | (35,415.6) | |||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | (17,435.6) | (16,904.2) | |||
Prior year reserve development and release of risk adjustment on prior year claims | 868 | 870.1 | |||
Recoveries of insurance service expenses | (21,221.7) | (20,190.6) | |||
Net reinsurance result | 4,873.3 | 4,304.2 | |||
Net finance income (expense) from reinsurance contract assets held | (1,969.9) | 1,582.2 | |||
Foreign exchange effects and other | (85.8) | 641.5 | |||
Total changes in the consolidated statement of comprehensive income | 2,817.6 | 6,527.9 | |||
Cash flows: | |||||
Amounts received | (27,191.2) | (24,710.1) | |||
Changes in funds withheld | (120.5) | 109.2 | |||
Total changes from cash flows | (6,577.2) | (7,599.4) | |||
Investment components and other | 23.3 | (2.7) | |||
Contracts recognized on acquisition of subsidiary | 1,566.6 | ||||
Ending Balance | (41,792.7) | (36,489.8) | |||
Property and Casualty Insurance and Reinsurance | Reinsurance contracts assets held | |||||
Reinsurance Contract Assets Held | |||||
Beginning Balance | 8,674.2 | 8,587.1 | |||
Changes in the consolidated statement of comprehensive income: | |||||
Cost of reinsurance | (4,759.6) | (4,344.7) | |||
Recoveries of incurred claims and other insurance service expenses | 3,798.5 | 3,429.5 | |||
Prior year reserve development and release of risk adjustment on prior year claims | (39.4) | (416.6) | |||
Recoveries of insurance service expenses | 3,759.1 | 3,012.9 | |||
Net reinsurance result | (1,000.5) | (1,331.8) | |||
Net finance income (expense) from reinsurance contract assets held | 521.7 | (291) | |||
Foreign exchange effects and other | (132.8) | (113.5) | |||
Total changes in the consolidated statement of comprehensive income | (611.6) | (1,736.3) | |||
Cash flows: | |||||
Premiums paid | 4,786.2 | 4,249.3 | |||
Amounts received | (3,502.6) | (2,415.3) | |||
Changes in funds withheld | (17.7) | (4) | |||
Total changes from cash flows | 1,265.9 | 1,830 | |||
Investment components and other | 0.8 | (6.6) | |||
Contracts recognized on acquisition of subsidiary | 524.4 | ||||
Ending Balance | 9,853.7 | 8,674.2 | |||
Property and Casualty Insurance and Reinsurance | Assets for remaining coverage | Reinsurance contracts assets held | |||||
Reinsurance Contract Assets Held | |||||
Beginning Balance | (144) | (135.7) | |||
Changes in the consolidated statement of comprehensive income: | |||||
Cost of reinsurance | (4,759.6) | (4,344.7) | |||
Recoveries of incurred claims and other insurance service expenses | (27.8) | 8.4 | |||
Recoveries of insurance service expenses | (27.8) | 8.4 | |||
Net reinsurance result | (4,787.4) | (4,336.3) | |||
Net finance income (expense) from reinsurance contract assets held | 0.8 | 0.1 | |||
Foreign exchange effects and other | (41.9) | 77.8 | |||
Total changes in the consolidated statement of comprehensive income | (4,828.5) | (4,258.4) | |||
Cash flows: | |||||
Premiums paid | 4,786.2 | 4,249.3 | |||
Changes in funds withheld | (3.1) | (2.7) | |||
Total changes from cash flows | 4,783.1 | 4,246.6 | |||
Investment components and other | (7.2) | 3.5 | |||
Contracts recognized on acquisition of subsidiary | 376.7 | ||||
Ending Balance | 180.1 | (144) | |||
Property and Casualty Insurance and Reinsurance | Assets for incurred claims | Estimates of present value of future cash flows | Reinsurance contracts assets held | |||||
Reinsurance Contract Assets Held | |||||
Beginning Balance | 8,011.6 | 7,905.8 | |||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 3,496.2 | 3,159.4 | |||
Prior year reserve development and release of risk adjustment on prior year claims | 227 | (163.1) | |||
Recoveries of insurance service expenses | 3,723.2 | 2,996.3 | |||
Net reinsurance result | 3,723.2 | 2,996.3 | |||
Net finance income (expense) from reinsurance contract assets held | 520.9 | (291.1) | |||
Foreign exchange effects and other | (59) | (172.7) | |||
Total changes in the consolidated statement of comprehensive income | 4,185.1 | 2,532.5 | |||
Cash flows: | |||||
Amounts received | (3,502.6) | (2,415.3) | |||
Changes in funds withheld | (14.6) | (1.3) | |||
Total changes from cash flows | (3,517.2) | (2,416.6) | |||
Investment components and other | 8 | (10.1) | |||
Contracts recognized on acquisition of subsidiary | 133.5 | ||||
Ending Balance | 8,821 | 8,011.6 | |||
Property and Casualty Insurance and Reinsurance | Assets for incurred claims | Risk adjustment for non-financial risk | Reinsurance contracts assets held | |||||
Reinsurance Contract Assets Held | |||||
Beginning Balance | 806.6 | 817 | |||
Changes in the consolidated statement of comprehensive income: | |||||
Recoveries of incurred claims and other insurance service expenses | 330.1 | 261.7 | |||
Prior year reserve development and release of risk adjustment on prior year claims | (266.4) | (253.5) | |||
Recoveries of insurance service expenses | 63.7 | 8.2 | |||
Net reinsurance result | 63.7 | 8.2 | |||
Foreign exchange effects and other | (31.9) | (18.6) | |||
Total changes in the consolidated statement of comprehensive income | 31.8 | (10.4) | |||
Cash flows: | |||||
Contracts recognized on acquisition of subsidiary | 14.2 | ||||
Ending Balance | $ 852.6 | $ 806.6 |
Net Finance Income or Expense_3
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held | ||
Net finance income (expense) from insurance contracts | $ (2,152.7) | $ 2,014.4 |
Net finance income (expense) from reinsurance contract assets held | 547.1 | (397.1) |
Net finance income (expense) from insurance contracts and reinsurance contract assets held | (1,605.6) | 1,617.3 |
Investment income | ||
Interest and dividends | 1,896.2 | 961.8 |
Share of profit of associates | 1,022.2 | 1,022.4 |
Net gains (losses) on investments | 1,949.5 | (1,573.2) |
Total | 4,867.9 | 411 |
Net financial result | 3,262.3 | 2,028.3 |
Interest accreted to insurance contracts | ||
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held | ||
Net finance income (expense) from insurance contracts | (1,889.5) | (433.6) |
Net finance income (expense) from reinsurance contract assets held | 502 | 122.3 |
Effect of changes in interest rates and other financial assumptions | ||
Net Finance Income or Expense from Insurance Contracts and Reinsurance Contract Assets Held | ||
Net finance income (expense) from insurance contracts | (263.2) | 2,448 |
Net finance income (expense) from reinsurance contract assets held | $ 45.1 | $ (519.4) |
Insurance Contract Receivable_3
Insurance Contract Receivables and Payables - Summary of insurance contract receivables (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Insurance Contract Receivables and Payables | |||
Insurance Contracts Receivables, Current | $ 685.3 | $ 468.5 | |
Insurance Contracts Receivables, Non-current | 240.8 | 180.4 | |
Insurance Contracts Receivables | 926.1 | 648.9 | $ 650.1 |
Insurance premiums receivable from agents, brokers and other intermediaries | |||
Insurance Contract Receivables and Payables | |||
Insurance Contracts Receivables | 615.9 | 411.5 | |
Insurance contract receivables from third party administrators and other | |||
Insurance Contract Receivables and Payables | |||
Insurance Contracts Receivables | $ 310.2 | $ 237.4 |
Insurance Contract Receivable_4
Insurance Contract Receivables and Payables - Summary of insurance contract payables (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Insurance Contract Receivables and Payables | |||
Payable to agents and brokers | $ 374.2 | $ 495.6 | |
Investment contracts associated with life insurance products | 626.5 | 595.8 | |
Other insurance contract payables | 206.2 | 311.3 | |
Insurance contract payables | 1,206.9 | 1,402.7 | $ 1,826 |
Current | 518.4 | 802.6 | |
Non-current | $ 688.5 | $ 600.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 10, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in goodwill and intangible assets | |||
Goodwill and intangible assets, beginning balance | $ 5,689 | $ 5,928.2 | |
Additions | 1,226.3 | 445.2 | |
Disposals | (82.3) | (125.2) | |
Amortization | (373.3) | (226.6) | |
Impairments | (136.2) | (137.9) | |
Foreign exchange effect and other | 52.8 | (194.7) | |
Goodwill and intangible assets, ending balance | 6,376.3 | 5,689 | |
Intangible assets with indefinite useful life | 1,756.8 | 1,613.6 | |
Crum & Forster Pet Insurance Group and Pethealth | |||
Changes in goodwill and intangible assets | |||
Deconsolidation of goodwill | 81.7 | ||
Deconsolidation of intangible assets | 34.6 | ||
Farmers Edge | |||
Changes in goodwill and intangible assets | |||
Non-cash goodwill impairment charge | 63.5 | 133.4 | |
Brit | |||
Changes in goodwill and intangible assets | |||
Goodwill and intangible assets, beginning balance | 780.1 | ||
Goodwill and intangible assets, ending balance | 695.1 | 780.1 | |
Brit | Ambridge Group | |||
Changes in goodwill and intangible assets | |||
Deconsolidation of goodwill | $ 45.9 | ||
Deconsolidation of intangible assets | $ 32.6 | ||
Goodwill | |||
Changes in goodwill and intangible assets | |||
Goodwill and intangible assets, beginning balance | 2,927.5 | 3,084.8 | |
Additions | 355.8 | 152 | |
Disposals | (45.9) | (81.9) | |
Impairments | (132.4) | (137) | |
Foreign exchange effect and other | 16.9 | (90.4) | |
Goodwill and intangible assets, ending balance | 3,121.9 | 2,927.5 | |
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 | 653.9 | 760.9 | |
Additions | 538.2 | 25.9 | |
Disposals | (35.9) | (31.6) | |
Amortization | (92.9) | (91.7) | |
Foreign exchange effect and other | 7.3 | (9.6) | |
Goodwill and intangible assets, ending balance | 1,070.6 | 653.9 | |
Brand names | |||
Changes in goodwill and intangible assets | |||
Goodwill and intangible assets, beginning balance | 1,018.3 | 1,087.3 | |
Additions | 123 | (0.3) | |
Disposals | (0.5) | (8.5) | |
Impairments | (3.8) | ||
Foreign exchange effect and other | 24.7 | (60.2) | |
Goodwill and intangible assets, ending balance | 1,161.7 | 1,018.3 | |
Computer software and other | |||
Changes in goodwill and intangible assets | |||
Goodwill and intangible assets, beginning balance | 586.1 | 492 | |
Additions | 209.3 | 267.6 | |
Disposals | (3.2) | ||
Amortization | (280.4) | (134.9) | |
Impairments | (0.9) | ||
Foreign exchange effect and other | 3.9 | (34.5) | |
Goodwill and intangible assets, ending balance | $ 518.9 | $ 586.1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets | ||||
Gross carrying amount | $ 8,671.3 | $ 7,598.3 | ||
Accumulated amortization | (1,885.4) | (1,619.9) | ||
Accumulated impairment and other | (409.6) | (289.4) | ||
Total | 6,376.3 | 5,689 | $ 5,928.2 | $ 5,928.2 |
Goodwill | ||||
Goodwill and Intangible Assets | ||||
Gross carrying amount | 3,485.6 | 3,161.8 | ||
Accumulated impairment and other | (363.7) | (234.3) | ||
Total | 3,121.9 | 2,927.5 | 3,084.8 | |
Lloyd's participation rights | ||||
Goodwill and Intangible Assets | ||||
Gross carrying amount | 503.2 | 503.2 | ||
Total | 503.2 | 503.2 | 503.2 | |
Customer and broker relationships | ||||
Goodwill and Intangible Assets | ||||
Gross carrying amount | 1,765.9 | 1,279 | ||
Accumulated amortization | (710.3) | (631.6) | ||
Accumulated impairment and other | 15 | 6.5 | ||
Total | 1,070.6 | 653.9 | 760.9 | |
Brand names | ||||
Goodwill and Intangible Assets | ||||
Gross carrying amount | 1,203 | 1,060.1 | ||
Accumulated impairment and other | (41.3) | (41.8) | ||
Total | 1,161.7 | 1,018.3 | 1,087.3 | |
Computer software and other | ||||
Goodwill and Intangible Assets | ||||
Gross carrying amount | 1,713.6 | 1,594.2 | ||
Accumulated amortization | (1,175.1) | (988.3) | ||
Accumulated impairment and other | (19.6) | (19.8) | ||
Total | $ 518.9 | $ 586.1 | $ 492 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Allocation to CGUs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Disclosure of information for cash-generating units | ||||
Goodwill | $ 3,121.9 | $ 2,927.5 | ||
Intangible assets | 3,254.4 | 2,761.5 | ||
Total | $ 6,376.3 | 5,689 | $ 5,928.2 | $ 5,928.2 |
Minimum | ||||
Disclosure of information for cash-generating units | ||||
Growth rate used to extrapolate cash flow projections | 3% | |||
Maximum | ||||
Disclosure of information for cash-generating units | ||||
Growth rate used to extrapolate cash flow projections | 3.70% | |||
Insurance and reinsurance companies | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | $ 2,188.6 | 1,891.2 | ||
Intangible assets | 2,066.1 | 1,513.4 | ||
Total | $ 4,254.7 | 3,404.6 | ||
Investment return rate | 5% | |||
Insurance and reinsurance companies | Minimum | ||||
Disclosure of information for cash-generating units | ||||
Discount rate applied to cash flow projections | 10.10% | |||
Insurance and reinsurance companies | Maximum | ||||
Disclosure of information for cash-generating units | ||||
Discount rate applied to cash flow projections | 13% | |||
Allied World | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | $ 940 | 940 | ||
Intangible assets | 474.3 | 519.8 | ||
Total | 1,414.3 | 1,459.8 | ||
Gulf Insurance | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 330.5 | |||
Intangible assets | 607 | |||
Total | 937.5 | |||
Brit | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 167.7 | 214.6 | ||
Intangible assets | 527.4 | 565.5 | ||
Total | 695.1 | 780.1 | ||
Zenith National | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 317.6 | 317.6 | ||
Intangible assets | 69.3 | 77.7 | ||
Total | 386.9 | 395.3 | ||
Crum & Forster | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 132.6 | 132.6 | ||
Intangible assets | 99 | 57.8 | ||
Total | 231.6 | 190.4 | ||
Northbridge | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 83.8 | 81.6 | ||
Intangible assets | 136.6 | 133.5 | ||
Total | 220.4 | 215.1 | ||
Odyssey Group | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 119.7 | 119.7 | ||
Intangible assets | 49.4 | 50.8 | ||
Total | 169.1 | 170.5 | ||
All other | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 96.7 | 85.1 | ||
Intangible assets | 103.1 | 108.3 | ||
Total | 199.8 | 193.4 | ||
Non-insurance companies | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 933.3 | 1,036.3 | ||
Intangible assets | 1,188.3 | 1,248.1 | ||
Total | $ 2,121.6 | 2,284.4 | ||
Non-insurance companies | Minimum | ||||
Disclosure of information for cash-generating units | ||||
Discount rate applied to cash flow projections | 10.50% | |||
Non-insurance companies | Maximum | ||||
Disclosure of information for cash-generating units | ||||
Discount rate applied to cash flow projections | 25.50% | |||
Recipe | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | $ 293.6 | 298.9 | ||
Intangible assets | 919 | 902.2 | ||
Total | 1,212.6 | 1,201.1 | ||
AGT | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 150.7 | 147.6 | ||
Intangible assets | 49.4 | 49.6 | ||
Total | 200.1 | 197.2 | ||
Thomas Cook India | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 126.9 | 127.7 | ||
Intangible assets | 48.1 | 48.4 | ||
Total | 175 | 176.1 | ||
Boat Rocker | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 59.7 | 86.4 | ||
Intangible assets | 102.9 | 184.8 | ||
Total | 162.6 | 271.2 | ||
All other | ||||
Disclosure of information for cash-generating units | ||||
Goodwill | 302.4 | 375.7 | ||
Intangible assets | 68.9 | 63.1 | ||
Total | $ 371.3 | $ 438.8 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Segmented Information | |||
Premises and equipment, right-of-use assets and non-insurance companies' investment property | $ 3,255.7 | $ 2,883.7 | |
Assets associated with unit-linked insurance products and other products | 1,204 | 676.5 | |
Inventories | 669.1 | 668.2 | |
Non-insurance revenue receivables | 611.6 | 638.9 | |
Accrued interest and dividends | 490.8 | 317.2 | |
Prepaid expenses | 350.9 | 245.8 | |
Call Options on Non-Controlling Interests | 306.6 | 167.4 | |
Income tax, sales tax and subsidies receivable | 275.9 | 275.9 | |
Finance lease receivables | 215.2 | 226.8 | |
Prepaid losses on claims | 151 | 168.9 | |
Pension surplus | 96.3 | 144.5 | |
Receivable for securities sold but not yet settled | 37.9 | 11.2 | |
Other | 625.2 | 556.3 | |
Current | 3,128.2 | 2,576.3 | |
Non-current | 5,162 | 4,405 | |
Other assets | 8,290.2 | 6,981.3 | $ 6,034.1 |
Insurance and reinsurance companies | |||
Segmented Information | |||
Premises and equipment, right-of-use assets and non-insurance companies' investment property | 875.1 | 684 | |
Assets associated with unit-linked insurance products and other products | 1,204 | 676.5 | |
Accrued interest and dividends | 488 | 313.7 | |
Prepaid expenses | 170.5 | 111 | |
Call Options on Non-Controlling Interests | 306.6 | 167.4 | |
Income tax, sales tax and subsidies receivable | 60.4 | 71.3 | |
Finance lease receivables | 7.8 | 8.8 | |
Prepaid losses on claims | 151 | 168.9 | |
Pension surplus | 96.3 | 144.5 | |
Receivable for securities sold but not yet settled | 37.9 | 11.2 | |
Other | 515.1 | 470.7 | |
Current | 1,425.3 | 943.7 | |
Non-current | 2,487.4 | 1,884.3 | |
Other assets | 3,912.7 | 2,828 | |
Non-insurance companies | |||
Segmented Information | |||
Premises and equipment, right-of-use assets and non-insurance companies' investment property | 2,380.6 | 2,199.7 | |
Inventories | 669.1 | 668.2 | |
Non-insurance revenue receivables | 611.6 | 638.9 | |
Accrued interest and dividends | 2.8 | 3.5 | |
Prepaid expenses | 180.4 | 134.8 | |
Income tax, sales tax and subsidies receivable | 215.5 | 204.6 | |
Finance lease receivables | 207.4 | 218 | |
Other | 110.1 | 85.6 | |
Current | 1,702.9 | 1,632.6 | |
Non-current | 2,674.6 | 2,520.7 | |
Other assets | $ 4,377.5 | $ 4,153.3 |
Account Payable and Accrued Lia
Account Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Accounts Payable and Accrued Liabilities | |||
Lease liabilities | $ 1,075.2 | $ 1,094 | |
Payables related to cost of sales | 965.2 | 814.3 | |
Salaries and employee benefit liabilities | 757.8 | 599 | |
Deferred gift card, hospitality and other revenue | 460.7 | 429.8 | |
Income taxes payable | 306.9 | 361 | |
Put options held by non-controlling interests | 250.1 | 173.5 | |
Pension and post retirement liabilities | 157.1 | 145.7 | |
Amounts withheld and accrued taxes | 115.7 | 89 | |
Administrative and other | 1,398.5 | 1,100.3 | |
Accounts payable and accrued liabilities | 5,487.2 | 4,806.6 | $ 4,587.6 |
Current | 3,557.4 | 2,911.3 | |
Non-current | 1,929.8 | 1,895.3 | |
Insurance and reinsurance companies | |||
Accounts Payable and Accrued Liabilities | |||
Lease liabilities | 349 | 364.1 | |
Salaries and employee benefit liabilities | 642.3 | 500.5 | |
Deferred gift card, hospitality and other revenue | 34.8 | 37.8 | |
Income taxes payable | 284.8 | 347 | |
Put options held by non-controlling interests | 180.7 | 128.1 | |
Pension and post retirement liabilities | 145.1 | 132.9 | |
Amounts withheld and accrued taxes | 82.5 | 58.3 | |
Administrative and other | 1,142.4 | 807.4 | |
Accounts payable and accrued liabilities | 2,861.6 | 2,376.1 | |
Current | 1,818.3 | 1,358 | |
Non-current | 1,043.3 | 1,018.1 | |
Non-insurance companies | |||
Accounts Payable and Accrued Liabilities | |||
Lease liabilities | 726.2 | 729.9 | |
Payables related to cost of sales | 965.2 | 814.3 | |
Salaries and employee benefit liabilities | 115.5 | 98.5 | |
Deferred gift card, hospitality and other revenue | 425.9 | 392 | |
Income taxes payable | 22.1 | 14 | |
Put options held by non-controlling interests | 69.4 | 45.4 | |
Pension and post retirement liabilities | 12 | 12.8 | |
Amounts withheld and accrued taxes | 33.2 | 30.7 | |
Administrative and other | 256.1 | 292.9 | |
Accounts payable and accrued liabilities | 2,625.6 | 2,430.5 | |
Current | 1,739.1 | 1,553.3 | |
Non-current | $ 886.5 | $ 877.2 |
Borrowings - Summary (Details)
Borrowings - Summary (Details) € in Millions, £ in Millions, $ in Millions, $ in Millions | Mar. 15, 2024 | Jan. 29, 2024 | Jan. 12, 2024 USD ($) | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 EUR (€) | Dec. 07, 2023 USD ($) | Jul. 14, 2023 USD ($) | May 09, 2023 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Borrowings | |||||||||||||||
Borrowings, Principal | $ 9,851.2 | $ 8,673.5 | |||||||||||||
Carrying value | 9,723.5 | 8,624.9 | $ 7,753 | ||||||||||||
Fair value | $ 9,490 | 8,049.8 | |||||||||||||
4.95% due March 3, 2025 (Cdn$348.6) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.95% | 4.95% | 4.95% | 4.95% | |||||||||||
Notes Payable | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | $ 660 | ||||||||||||||
Carrying value | 579.2 | ||||||||||||||
Fair value | 579.2 | ||||||||||||||
Holding company | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 7,053.6 | 5,932.6 | |||||||||||||
Carrying value | 6,928.9 | 5,887.6 | 5,338.6 | ||||||||||||
Fair value | $ 6,811.2 | $ 5,454.6 | |||||||||||||
Holding company | 4.875% due August 13, 2024 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | |||||||
Borrowings, Principal | $ 279.3 | $ 282.5 | |||||||||||||
Carrying value | 279 | 281.6 | |||||||||||||
Fair value | $ 277.5 | $ 277 | |||||||||||||
Holding company | 4.95% due March 3, 2025 (Cdn$348.6) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | |||||||
Borrowings, Principal | $ 264.3 | $ 348.6 | $ 258.3 | $ 348.6 | |||||||||||
Carrying value | 263.7 | 257.2 | |||||||||||||
Fair value | $ 264.3 | $ 255.2 | |||||||||||||
Holding company | 8.30% due April 15, 2026 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 8.30% | 8.30% | 8.30% | 8.30% | 8.30% | 8.30% | 8.30% | ||||||||
Borrowings, Principal | $ 91.8 | $ 91.8 | |||||||||||||
Carrying value | 91.8 | 91.7 | |||||||||||||
Fair value | $ 97.1 | $ 98.2 | |||||||||||||
Holding company | 4.70% due December 16, 2026 (Cdn$450.0) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | ||||||||
Borrowings, Principal | $ 341.3 | $ 450 | $ 332.1 | $ 450 | |||||||||||
Carrying value | 340.4 | 331 | |||||||||||||
Fair value | $ 339.9 | $ 323.7 | |||||||||||||
Holding company | 4.25% due December 6, 2027 (Cdn$650.0) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||||
Borrowings, Principal | $ 492.9 | $ 650 | $ 479.7 | $ 650 | |||||||||||
Carrying value | 492 | 478.6 | |||||||||||||
Fair value | $ 486.4 | $ 455.8 | |||||||||||||
Holding company | 2.75% due March 29, 2028 (750.0 EUR) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | 2.75% | ||||||||
Borrowings, Principal | $ 828.5 | € 750 | $ 800.5 | ||||||||||||
Carrying value | 821.5 | 792.2 | |||||||||||||
Fair value | $ 791.9 | $ 698.3 | |||||||||||||
Holding company | 4.85% due April 17, 2028 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | 4.85% | ||||||||
Borrowings, Principal | $ 600 | $ 600 | |||||||||||||
Carrying value | 597.5 | 596.9 | |||||||||||||
Fair value | $ 592.7 | $ 568.1 | |||||||||||||
Holding company | 4.23% due June 14, 2029 (Cdn$500.0) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.23% | 4.23% | 4.23% | 4.23% | 4.23% | 4.23% | 4.23% | ||||||||
Borrowings, Principal | $ 379.2 | $ 500 | $ 369 | $ 500 | |||||||||||
Carrying value | 378.1 | 367.7 | |||||||||||||
Fair value | $ 371.6 | $ 342.7 | |||||||||||||
Holding company | 4.625% due April 29, 2030 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | 4.625% | ||||||||
Borrowings, Principal | $ 650 | $ 650 | |||||||||||||
Carrying value | 646.8 | 646.4 | |||||||||||||
Fair value | $ 627.3 | $ 591.1 | |||||||||||||
Holding company | 3.375% due March 3, 2031 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% | ||||||||
Borrowings, Principal | $ 596.8 | $ 600 | |||||||||||||
Carrying value | 585.2 | 586.8 | |||||||||||||
Fair value | $ 527 | $ 492.8 | |||||||||||||
Holding company | 3.95% due March 3, 2031 (Cdn$850.0) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | 3.95% | ||||||||
Borrowings, Principal | $ 637 | $ 840 | $ 627.4 | $ 840 | |||||||||||
Carrying value | 633.4 | 623.2 | |||||||||||||
Fair value | $ 598.9 | 549.4 | |||||||||||||
Holding company | 5.625% due August 16, 2032 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 5.625% | 5.625% | 5.625% | 5.625% | |||||||||||
Borrowings, Principal | $ 741.2 | 750 | |||||||||||||
Carrying value | 735.6 | 743.6 | |||||||||||||
Fair value | $ 742.5 | $ 707.1 | |||||||||||||
Holding company | 6.00% due December 7, 2033 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 6% | 6% | 6% | 6% | 6% | ||||||||||
Borrowings, Principal | $ 200 | $ 400 | $ 400 | ||||||||||||
Carrying value | 394 | ||||||||||||||
Fair value | $ 410.6 | ||||||||||||||
Holding company | 7.75% due July 15, 2037 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | 7.75% | ||||||||
Borrowings, Principal | $ 91.3 | $ 91.3 | |||||||||||||
Carrying value | 90.7 | 90.7 | |||||||||||||
Fair value | 104.3 | 95.2 | |||||||||||||
Holding company | Revolving Credit Facility | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | $ 2,000 | ||||||||||||||
Insurance and reinsurance companies | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 891.3 | 727.7 | |||||||||||||
Carrying value | 895.6 | 733.4 | 790.7 | ||||||||||||
Fair value | $ 836.2 | $ 663.7 | |||||||||||||
Insurance and reinsurance companies | Allied World 4.35% senior notes due October 29, 2025 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | 4.35% | ||||||||
Borrowings, Principal | $ 500 | $ 500 | |||||||||||||
Carrying value | 501.8 | 502.9 | |||||||||||||
Fair value | 488 | 477.7 | |||||||||||||
Insurance and reinsurance companies | Allied World revolving credit facility and other borrowings | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 18 | 16.8 | |||||||||||||
Carrying value | 20.6 | 19.8 | |||||||||||||
Fair value | 19.5 | $ 16.9 | |||||||||||||
Insurance and reinsurance companies | Gulf Insurance floating rate long term loans due 2027 | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 172.9 | ||||||||||||||
Carrying value | 172.9 | ||||||||||||||
Fair value | $ 171.9 | ||||||||||||||
Insurance and reinsurance companies | Zenith National 8.55% debentures due August 1, 2028 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 8.55% | 8.55% | 8.55% | 8.55% | 8.55% | 8.55% | 8.55% | ||||||||
Borrowings, Principal | $ 38.5 | $ 38.5 | |||||||||||||
Carrying value | 38.4 | 38.3 | |||||||||||||
Fair value | $ 38.5 | $ 38.5 | |||||||||||||
Insurance and reinsurance companies | Brit 3.6757% subordinated notes due December 9, 2030 (£127.0) | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 3.6757% | 3.6757% | 3.6757% | 3.6757% | 3.6757% | 3.6757% | 3.6757% | ||||||||
Borrowings, Principal | £ 127 | $ 161.9 | £ 127 | $ 162.4 | |||||||||||
Carrying value | 161.9 | 162.4 | |||||||||||||
Fair value | 118.3 | 120.6 | |||||||||||||
Insurance and reinsurance companies | Brit floating rate revolving credit facility | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | $ 550 | 10 | |||||||||||||
Carrying value | 10 | ||||||||||||||
Fair value | 10 | ||||||||||||||
Non-insurance companies | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 1,906.3 | 2,013.2 | |||||||||||||
Carrying value | 1,899 | 2,003.9 | $ 1,623.7 | $ 1,623.7 | |||||||||||
Fair value | $ 1,842.6 | $ 1,931.5 | |||||||||||||
Non-insurance companies | Fairfax India 5.00% unsecured senior notes due 2028 | |||||||||||||||
Borrowings | |||||||||||||||
Interest rate | 5% | 5% | 5% | 5% | 5% | 5% | 5% | ||||||||
Borrowings, Principal | $ 441.6 | $ 441.6 | |||||||||||||
Carrying value | 439.4 | 438.9 | |||||||||||||
Fair value | 399.4 | 400.7 | |||||||||||||
Non-insurance companies | Fairfax India subsidiary borrowings | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 75.8 | 122.6 | |||||||||||||
Carrying value | 75.8 | 122.2 | |||||||||||||
Fair value | 75.8 | 122.2 | |||||||||||||
Non-insurance companies | AGT credit facilities, senior notes and loans | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 493.5 | 511.9 | |||||||||||||
Carrying value | 491 | 508.4 | |||||||||||||
Fair value | 488 | 498.8 | |||||||||||||
Non-insurance companies | Recipe term loans and credit facilities | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 400.2 | 464 | |||||||||||||
Carrying value | 398.2 | 461.5 | |||||||||||||
Fair value | 384.8 | 436.7 | |||||||||||||
Non-insurance companies | Grivalia bond loans and term loans | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 205.8 | 111.3 | |||||||||||||
Carrying value | 205.2 | 111.3 | |||||||||||||
Fair value | 205.2 | 111.3 | |||||||||||||
Non-insurance companies | Loans and revolving credit facilities primarily at floating rates | |||||||||||||||
Borrowings | |||||||||||||||
Borrowings, Principal | 289.4 | 361.8 | |||||||||||||
Carrying value | 289.4 | 361.6 | |||||||||||||
Fair value | $ 289.4 | $ 361.8 |
Borrowings - New Transactions (
Borrowings - New Transactions (Details) $ in Millions, $ in Millions | Jan. 29, 2024 USD ($) | Jan. 12, 2024 USD ($) | Dec. 07, 2023 USD ($) | Jul. 14, 2023 USD ($) | Mar. 15, 2024 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 26, 2023 USD ($) item | Dec. 19, 2023 CAD ($) | Oct. 03, 2023 USD ($) | Aug. 15, 2023 CAD ($) | May 09, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) |
Borrowings | ||||||||||||||
Borrowings, Principal | $ 9,851.2 | $ 8,673.5 | ||||||||||||
Gulf Insurance | Acquisition, Step 2 | ||||||||||||||
Borrowings | ||||||||||||||
Percentage of interests acquired | 46.30% | |||||||||||||
Payment deed | $ 660 | |||||||||||||
Payment deed, number of installment payments | item | 4 | |||||||||||||
Payment deed, amount of installment payments | $ 165 | |||||||||||||
4.95% due March 3, 2025 (Cdn$348.6) | ||||||||||||||
Borrowings | ||||||||||||||
Interest rate | 4.95% | 4.95% | ||||||||||||
Notes Payable | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 660 | |||||||||||||
Holding company | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | 7,053.6 | 5,932.6 | ||||||||||||
Holding company | Gulf Insurance | ||||||||||||||
Borrowings | ||||||||||||||
Percentage of interests acquired | 46.30% | |||||||||||||
Holding company | 6.00% due December 7, 2033 | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 200 | $ 400 | $ 400 | |||||||||||
Interest rate | 6% | 6% | 6% | |||||||||||
Net proceeds after discount, commissions and expenses | $ 393.9 | |||||||||||||
Net proceeds, excluding accrued interest after premium | $ 200.2 | |||||||||||||
Commissions and expenses included in carrying value of notes | $ 3.1 | |||||||||||||
Holding company | 4.875% due August 13, 2024 | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 279.3 | $ 282.5 | ||||||||||||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% | 4.875% | |||||||||
Amount of principal redeemed | $ 279.3 | |||||||||||||
Redemption of debt, cash consideration | $ 285.6 | |||||||||||||
Holding company | 4.95% due March 3, 2025 (Cdn$348.6) | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 264.3 | $ 348.6 | $ 258.3 | $ 348.6 | ||||||||||
Interest rate | 4.95% | 4.95% | 4.95% | 4.95% | 4.95% | |||||||||
Amount of principal redeemed | $ 348.6 | |||||||||||||
Holding company | Notes Payable | Gulf Insurance | ||||||||||||||
Borrowings | ||||||||||||||
Payment deed | $ 660 | |||||||||||||
Payment deed, number of installment payments | item | 4 | |||||||||||||
Payment deed, amount of installment payments | $ 165 | |||||||||||||
Payment deed, discount rate | 5.50% | |||||||||||||
Holding company | Revolving Credit Facility | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 2,000 | |||||||||||||
Ratio of consolidated debt to consolidated capitalization | 0.35 | |||||||||||||
Required minimum of shareholders' equity balance | $ 11,500 | |||||||||||||
Insurance and reinsurance companies | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 891.3 | $ 727.7 | ||||||||||||
Insurance and reinsurance companies | Gulf Insurance floating rate long term loans due 2027 | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | 172.9 | |||||||||||||
Insurance and reinsurance companies | Gulf Insurance floating rate long term loans due 2027 | Gulf Insurance | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings included in consolidation | $ 172.9 | |||||||||||||
Insurance and reinsurance companies | Brit floating rate revolving credit facility | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 550 | 10 | ||||||||||||
Non-insurance companies | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 1,906.3 | $ 2,013.2 | ||||||||||||
Non-insurance companies | Dexterra Group revolving credit facility | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 260 | $ 200 | ||||||||||||
Non-insurance companies | Fairfax India revolving credit facility | ||||||||||||||
Borrowings | ||||||||||||||
Undrawn borrowing facilities | $ 175 | |||||||||||||
Non-insurance companies | AGT credit facilities | ||||||||||||||
Borrowings | ||||||||||||||
Borrowings, Principal | $ 710 |
Borrowings - Changes in the car
Borrowings - Changes in the carrying values of borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the carrying values of borrowings | ||
Balance - January 1 | $ 8,624.9 | $ 7,753 |
Cash inflows from issuances | 622.5 | 790.4 |
Cash outflows from repayments | (193.5) | (25.6) |
Net cash inflows (outflows) from credit facilities and short term loans | (195.4) | 269.1 |
Non-cash changes: | ||
Acquisition of subsidiaries | 752.1 | 137.1 |
Gain on redemption | (28.7) | |
Foreign exchange effect and other | 141.6 | (299.1) |
Balance - December 31 | 9,723.5 | 8,624.9 |
Holding company | ||
Changes in the carrying values of borrowings | ||
Balance - January 1 | 5,887.6 | 5,338.6 |
Cash inflows from issuances | 393.9 | 743.4 |
Cash outflows from repayments | (21.8) | |
Non-cash changes: | ||
Acquisition of subsidiaries | 579.2 | |
Gain on redemption | (1.7) | |
Foreign exchange effect and other | 91.7 | (194.4) |
Balance - December 31 | 6,928.9 | 5,887.6 |
Insurance and reinsurance companies | ||
Changes in the carrying values of borrowings | ||
Balance - January 1 | 733.4 | 790.7 |
Cash outflows from repayments | (7.8) | (0.3) |
Net cash inflows (outflows) from credit facilities and short term loans | (10) | (35) |
Non-cash changes: | ||
Acquisition of subsidiaries | 172.9 | |
Gain on redemption | (2.7) | |
Foreign exchange effect and other | 9.8 | (22) |
Balance - December 31 | 895.6 | 733.4 |
Non-insurance companies | ||
Changes in the carrying values of borrowings | ||
Balance - January 1 | 2,003.9 | 1,623.7 |
Cash inflows from issuances | 228.6 | 47 |
Cash outflows from repayments | (163.9) | (25.3) |
Net cash inflows (outflows) from credit facilities and short term loans | (185.4) | 304.1 |
Non-cash changes: | ||
Acquisition of subsidiaries | 137.1 | |
Gain on redemption | (24.3) | |
Foreign exchange effect and other | 40.1 | (82.7) |
Balance - December 31 | $ 1,899 | $ 2,003.9 |
Borrowings - Principal Repaymen
Borrowings - Principal Repayments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Borrowings | |
Principal repayments on borrowings | $ 9,851.2 |
2024 | |
Borrowings | |
Principal repayments on borrowings | 1,120.1 |
2025 | |
Borrowings | |
Principal repayments on borrowings | 1,058.4 |
2026 | |
Borrowings | |
Principal repayments on borrowings | 761.9 |
2027 | |
Borrowings | |
Principal repayments on borrowings | 893.4 |
2028 | |
Borrowings | |
Principal repayments on borrowings | 1,979.4 |
Thereafter | |
Borrowings | |
Principal repayments on borrowings | 4,038 |
Holding company | |
Borrowings | |
Principal repayments on borrowings | 7,053.6 |
Holding company | 2024 | |
Borrowings | |
Principal repayments on borrowings | 708.6 |
Holding company | 2025 | |
Borrowings | |
Principal repayments on borrowings | 165 |
Holding company | 2026 | |
Borrowings | |
Principal repayments on borrowings | 598.1 |
Holding company | 2027 | |
Borrowings | |
Principal repayments on borrowings | 658 |
Holding company | 2028 | |
Borrowings | |
Principal repayments on borrowings | 1,428.5 |
Holding company | Thereafter | |
Borrowings | |
Principal repayments on borrowings | 3,495.4 |
Insurance and reinsurance companies | |
Borrowings | |
Principal repayments on borrowings | 891.3 |
Insurance and reinsurance companies | 2024 | |
Borrowings | |
Principal repayments on borrowings | 35.2 |
Insurance and reinsurance companies | 2025 | |
Borrowings | |
Principal repayments on borrowings | 539.3 |
Insurance and reinsurance companies | 2026 | |
Borrowings | |
Principal repayments on borrowings | 39.3 |
Insurance and reinsurance companies | 2027 | |
Borrowings | |
Principal repayments on borrowings | 60.5 |
Insurance and reinsurance companies | 2028 | |
Borrowings | |
Principal repayments on borrowings | 38.9 |
Insurance and reinsurance companies | Thereafter | |
Borrowings | |
Principal repayments on borrowings | 178.1 |
Non-insurance companies | |
Borrowings | |
Principal repayments on borrowings | 1,906.3 |
Non-insurance companies | 2024 | |
Borrowings | |
Principal repayments on borrowings | 376.3 |
Non-insurance companies | 2025 | |
Borrowings | |
Principal repayments on borrowings | 354.1 |
Non-insurance companies | 2026 | |
Borrowings | |
Principal repayments on borrowings | 124.5 |
Non-insurance companies | 2027 | |
Borrowings | |
Principal repayments on borrowings | 174.9 |
Non-insurance companies | 2028 | |
Borrowings | |
Principal repayments on borrowings | 512 |
Non-insurance companies | Thereafter | |
Borrowings | |
Principal repayments on borrowings | $ 364.5 |
Borrowings - Interest Expense (
Borrowings - Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Borrowings | ||
Interest expense | $ 510 | $ 452.8 |
Holding company and insurance and reinsurance companies | ||
Borrowings | ||
Interest expense on borrowings | 330.5 | 316.1 |
Non-insurance companies | ||
Borrowings | ||
Interest expense on borrowings | 130 | 89.8 |
Interest expense on lease liabilities | $ 49.5 | $ 46.9 |
Total Equity - Authorized and I
Total Equity - Authorized and Issued capital (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Multiple voting shares | ||
Total Equity | ||
Voting percentage of multiple voting shares | 41.80% | |
Number of shares issued | 1,548,000 | 1,548,000 |
Fairfax subordinate voting shares | ||
Total Equity | ||
Number of shares issued | 24,233,657 | 24,598,380 |
Number of shares reserved for share-based payments | 1,979,179 | 2,021,845 |
Total Equity - Common Stock, Nu
Total Equity - Common Stock, Number of shares outstanding (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Common shares | ||
Number of shares outstanding: | ||
Beginning balance, shares outstanding (in shares) | 23,325,305 | |
Ending balance, shares outstanding (in shares) | 23,003,248 | 23,325,305 |
Multiple and subordinate voting shares | ||
Number of shares outstanding: | ||
Interest in multiple and subordinate voting shares held through ownership interest in shareholder | (799,230) | (799,230) |
Fairfax subordinate voting shares | ||
Number of shares outstanding: | ||
Beginning balance, shares outstanding (in shares) | 22,576,535 | 23,116,830 |
Purchases for cancellation (in shares) | (364,723) | (387,790) |
Treasury shares acquired (in shares) | (110,528) | (295,474) |
Treasury shares reissued (in shares) | 153,194 | 142,969 |
Ending balance, shares outstanding (in shares) | 22,254,478 | 22,576,535 |
Multiple voting shares | ||
Number of shares outstanding: | ||
Beginning balance, shares outstanding (in shares) | 1,548,000 | 1,548,000 |
Ending balance, shares outstanding (in shares) | 1,548,000 | 1,548,000 |
Total Equity - Common stock - n
Total Equity - Common stock - narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total Equity | ||
Reduction of issued capital purchases for cancellation | $ 273.6 | $ 199.6 |
Fairfax subordinate voting shares | ||
Total Equity | ||
Purchases for cancellation (in shares) | 364,723 | 387,790 |
Treasury shares acquired (in shares) | 110,528 | 295,474 |
Value of treasury shares purchased | $ 89.6 | $ 148.2 |
Fairfax subordinate voting shares | Normal course issuer bids | ||
Total Equity | ||
Purchases for cancellation (in shares) | 364,723 | 387,790 |
Cost of shares purchased for cancellation | $ 273.6 | $ 199.6 |
Retained earnings | ||
Total Equity | ||
Reduction of issued capital purchases for cancellation | 183.2 | 103.5 |
Retained earnings | Normal course issuer bids | ||
Total Equity | ||
Reduction of issued capital purchases for cancellation | $ 183.2 | $ 103.5 |
Total Equity - Dividends Paid (
Total Equity - Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jan. 25, 2024 | Jan. 26, 2023 | Jan. 27, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Total Equity | |||||
Dividend per share (in dollars per share) | $ 10 | $ 10 | |||
Total cash payment | $ 449.7 | $ 513.1 | |||
Multiple and subordinate voting shares | |||||
Total Equity | |||||
Dividend per share (in dollars per share) | $ 15 | $ 10 | $ 10 | ||
Total cash payment | $ 363.1 | $ 245.2 | $ 249.9 |
Total Equity - Preferred Shares
Total Equity - Preferred Shares (Details) $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2023 CAD ($) $ / shares shares | Jan. 01, 2022 USD ($) | |
Total Equity | ||||
Dividends paid | $ | $ 49.7 | $ 45.2 | ||
Preferred shares | ||||
Total Equity | ||||
Stated capital | $ 1,335.5 | 1,335.5 | $ 1,456 | $ 1,335.5 |
Liquidation preference per share (in dollars per share) | $ 25 | |||
Floating dividend payment basis | three-month Government of Canada treasury bill yield | |||
Dividends paid | $ | $ 49.7 | $ 45.2 | ||
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% | |||
Fixed dividend rate (Percent) | 3.15% | 3.15% | ||
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 | 8.19% | |||
Adjustment to floating rate basis for payment of dividends | 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% | |||
Fixed dividend rate (Percent) | 2.16% | 2.16% | ||
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 | 7.20% | |||
Adjustment to floating rate basis for payment of dividends | 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% | |||
Fixed dividend rate (Percent) | 2.56% | 2.56% | ||
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 | 7.60% | |||
Adjustment to floating rate basis for payment of dividends | 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% | |||
Fixed dividend rate (Percent) | 2.85% | 2.85% | ||
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 | 7.89% | |||
Adjustment to floating rate basis for payment of dividends | 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 | 5.05% | |||
Fixed dividend rate (Percent) | 3.51% | 3.51% | ||
Series L | ||||
Total Equity | ||||
Adjustment to floating rate basis for payment of dividends | 3.51% | 3.51% | ||
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% | |||
Fixed dividend rate (Percent) | 3.98% | 3.98% | ||
Series N | ||||
Total Equity | ||||
Adjustment to floating rate basis for payment of dividends | 3.98% | 3.98% |
Total Equity - Accumulated Othe
Total Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pre-tax amount | ||
Foreign currency translation losses | $ (983.1) | $ (906.4) |
Share of accumulated other comprehensive loss of associates, excluding net gains (losses) on defined benefit plans | (169) | (221.6) |
Items that may be subsequently reclassified to net earnings | (1,152.1) | (1,128) |
Net gains (losses) on defined benefit plans | (1.9) | 43.8 |
Share of net gains (losses) on defined benefit plans of associates | (9.1) | 10.7 |
Other | 153.1 | 43.5 |
Items that will not be subsequently reclassified to net earnings | 142.1 | 98 |
Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax | (1,010) | (1,030) |
Income tax (expense) recovery | ||
Foreign currency translation losses | 42.2 | 32.8 |
Share of accumulated other comprehensive income (loss) of associates, excluding net losses on defined benefit plans | 11.7 | 17.6 |
Items that may be subsequently reclassified to net earnings | 53.9 | 50.4 |
Net losses on defined benefit plans | 9.9 | (4.3) |
Share of net losses on defined benefit plans of associates | (0.1) | (4.7) |
Other | (15.9) | 5.7 |
Items that will not be subsequently reclassified to net earnings | (6.1) | (3.3) |
Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax | 47.8 | 47.1 |
After-tax amount | ||
Foreign currency translation losses | (940.9) | (873.6) |
Share of accumulated other comprehensive income (loss) of associates, excluding net losses on defined benefit plans | (157.3) | (204) |
Items that may be subsequently reclassified to net earnings | (1,098.2) | (1,077.6) |
Net losses on defined benefit plans | 8 | 39.5 |
Share of net losses on defined benefit plans of associates | (9.2) | 6 |
Other | 137.2 | 49.2 |
Items that will not be subsequently reclassified to net earnings | 136 | 94.7 |
Accumulated other comprehensive income (loss) attributable to shareholders of Fairfax | $ (962.2) | $ (982.9) |
Total Equity - Income tax (expe
Total Equity - Income tax (expense) recovery included in other comprehensive income (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income tax on items that may be subsequently reclassified to net earnings | ||
Net unrealized foreign currency translation losses on foreign subsidiaries | $ 15.5 | $ 8.5 |
Share of other comprehensive income (loss) of associates, excluding net gains (losses) on defined benefit plans | (6.3) | 18.1 |
Income tax on items that may be reclassified to net earnings | 9.2 | 26.6 |
Net unrealized foreign currency translation losses on associates reclassified to net earnings | (0.1) | |
Income tax on items that may be subsequently reclassified to net earnings | 9.1 | 26.6 |
Income tax on items that will not be subsequently reclassified to net earnings | ||
Net gains (losses) on defined benefit plans | 15.1 | (32.2) |
Share of net gains (losses) on defined benefit plans of associates | 0.5 | (10.2) |
Other | (7.1) | |
Income tax on items that will not be subsequently reclassified to net earnings | 8.5 | (42.4) |
Total income tax expense (recovery) included in other comprehensive income (loss) | $ 17.6 | $ (15.8) |
Total Equity - Non-Controlling
Total Equity - Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jun. 23, 2023 | Sep. 27, 2022 | Sep. 26, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Total equity | ||||||
Carrying value | $ 4,750.4 | $ 3,902.9 | $ 4,940.9 | |||
Net earnings (loss) attributable to non-controlling interests | $ 713.1 | $ 437.5 | ||||
Allied World | ||||||
Total equity | ||||||
Cash consideration for shares purchased from minority shareholders | $ 30.6 | |||||
Proportion of ownership interest in subsidiary | 83.40% | 82.90% | 70.90% | 83.40% | ||
Consideration paid | $ 733.5 | |||||
Loss recognized in retained earnings due to changes in capitalization of non-controlling interests | $ 163.3 | |||||
Fairfax India | ||||||
Total equity | ||||||
Economic ownership percentage | 57.50% | 65.30% | ||||
Voting percentage | 4.80% | 5.60% | ||||
Global Insurers and Reinsurers | ||||||
Total equity | ||||||
Dividends paid | $ 180.3 | $ 248.8 | ||||
Insurance and reinsurance companies | ||||||
Total equity | ||||||
Carrying value | 3,115.8 | 2,212.5 | ||||
Net earnings (loss) attributable to non-controlling interests | $ 509.7 | $ 300.7 | ||||
Insurance and reinsurance companies | Allied World | ||||||
Total equity | ||||||
Economic ownership percentage | 16.60% | |||||
Voting percentage | 17.10% | |||||
Carrying value | $ 972.7 | $ 862.4 | ||||
Net earnings (loss) attributable to non-controlling interests | $ 211.8 | $ 162.2 | ||||
Insurance and reinsurance companies | Brit | ||||||
Total equity | ||||||
Economic ownership percentage | 13.80% | |||||
Voting percentage | 13.80% | |||||
Carrying value | $ 881.2 | $ 736.4 | ||||
Net earnings (loss) attributable to non-controlling interests | $ 188.1 | $ 41 | ||||
Insurance and reinsurance companies | Odyssey Group | ||||||
Total equity | ||||||
Economic ownership percentage | 9.99% | |||||
Voting percentage | 9.99% | |||||
Carrying value | $ 602.3 | $ 562.5 | ||||
Net earnings (loss) attributable to non-controlling interests | $ 104.9 | 81.1 | ||||
Insurance and reinsurance companies | Gulf Insurance | ||||||
Total equity | ||||||
Economic ownership percentage | 9.99% | |||||
Carrying value | $ 605.3 | |||||
Insurance and reinsurance companies | All other | ||||||
Total equity | ||||||
Carrying value | 54.3 | 51.2 | ||||
Net earnings (loss) attributable to non-controlling interests | 4.9 | 16.4 | ||||
Non-insurance companies | ||||||
Total equity | ||||||
Carrying value | 1,634.6 | 1,690.4 | ||||
Net earnings (loss) attributable to non-controlling interests | 203.4 | 136.8 | ||||
Non-insurance companies | Restaurants and retail | ||||||
Total equity | ||||||
Carrying value | 163.5 | 208.1 | ||||
Net earnings (loss) attributable to non-controlling interests | $ 5.6 | $ 32.7 | ||||
Non-insurance companies | Fairfax India | ||||||
Total equity | ||||||
Economic ownership percentage | 57.50% | |||||
Voting percentage | 65.30% | |||||
Carrying value | $ 1,131.1 | $ 1,080.2 | ||||
Net earnings (loss) attributable to non-controlling interests | $ 235.4 | $ 114.2 | ||||
Non-insurance companies | Thomas Cook India | ||||||
Total equity | ||||||
Economic ownership percentage | 35.40% | |||||
Voting percentage | 26.70% | |||||
Carrying value | $ 86 | $ 61.3 | ||||
Net earnings (loss) attributable to non-controlling interests | 6 | 1.1 | ||||
Non-insurance companies | All other | ||||||
Total equity | ||||||
Carrying value | 254 | 340.8 | ||||
Net earnings (loss) attributable to non-controlling interests | $ (43.6) | $ (11.2) |
Total Equity - Net Changes In C
Total Equity - Net Changes In Capitalization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
As presented in other net changes in capitalization in the consolidated statement of changes in equity | $ (319.3) | $ (1,244.5) |
Common shareholders' equity | ||
Other | (63) | 116.4 |
As presented in other net changes in capitalization in the consolidated statement of changes in equity | (67.2) | (107.9) |
Non-controlling interests | ||
Other | (30.9) | (32.9) |
As presented in other net changes in capitalization in the consolidated statement of changes in equity | (252.1) | (1,136.6) |
RiverStone Barbados | Common shareholders' equity | RiverStone Barbados AVLNs | ||
Purchase of certain securities held through AVLNs | (45.1) | 15 |
RiverStone Barbados | Non-controlling interests | RiverStone Barbados AVLNs | ||
Purchase of certain securities held through AVLNs | (178) | (357.1) |
Thomas Cook India | Common shareholders' equity | ||
Partial disposition of shares | 45.8 | |
Thomas Cook India | Non-controlling interests | ||
Partial disposition of shares | 19.8 | |
Fairfax India | Common shareholders' equity | ||
Fairfax India share repurchases | (1.9) | (9.9) |
Fairfax India | Non-controlling interests | ||
Fairfax India share repurchases | (35.4) | (90.7) |
Allied World | Common shareholders' equity | ||
Acquisition of non-controlling interests | (3) | (163.3) |
Allied World | Non-controlling interests | ||
Acquisition of non-controlling interests | $ (27.6) | (531.7) |
Recipe | Common shareholders' equity | ||
Privatization | (66.1) | |
Recipe | Non-controlling interests | ||
Privatization | (276.2) | |
Ki Insurance | Non-controlling interests | ||
Third party's net investment | $ 152 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per Share | ||
Net earnings attributable to shareholders of Fairfax | $ 4,381.8 | $ 3,374.2 |
Preferred share dividends | (49.7) | (45.2) |
Net earnings attributable to common shareholders - basic and diluted | $ 4,332.1 | $ 3,329 |
Weighted average common shares outstanding - basic (in shares) | 23,182,558 | 23,637,824 |
Share-based payment awards (in shares) | 1,823,558 | 1,702,599 |
Weighted average common shares outstanding - diluted (in shares) | 25,006,116 | 25,340,423 |
Net earnings per common share - basic (in dollars per share) | $ 186.87 | $ 140.83 |
Net earnings per common share - diluted (in dollars per share) | $ 173.24 | $ 131.37 |
Income Taxes - Provision for in
Income Taxes - Provision for income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current income tax: | ||
Current year expense | $ 648.8 | $ 616.8 |
Adjustments to prior years' income taxes | (8.7) | (10) |
Current income tax | 640.1 | 606.8 |
Deferred income tax: | ||
Origination and reversal of temporary differences | 193.4 | 474 |
Adjustments to prior years' deferred income taxes | (20.1) | 11.7 |
Deferred income tax | 173.3 | 485.7 |
Provision for income taxes | $ 813.4 | $ 1,092.5 |
Income Taxes - Earnings before
Income Taxes - Earnings before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Segmented Information | |||
Earnings before income taxes | $ 5,908.3 | $ 4,904.2 | |
Provision for (recovery of) income taxes | 813.4 | 1,092.5 | |
Net earnings | 5,094.9 | 3,811.7 | [1] |
Gain on sale and consolidation of insurance subsidiaries | 549.8 | 1,219.7 | |
Canada | |||
Segmented Information | |||
Earnings before income taxes | 1,115.6 | 547.6 | |
Provision for (recovery of) income taxes | 234.9 | 153.6 | |
Net earnings | 880.7 | 394 | |
U.S. | |||
Segmented Information | |||
Earnings before income taxes | 1,764.3 | 2,792.3 | |
Provision for (recovery of) income taxes | 362.2 | 545.3 | |
Net earnings | 1,402.1 | 2,247 | |
U.S. | Crum & Forster Pet Insurance Group and Pethealth | |||
Segmented Information | |||
Gain on sale and consolidation of insurance subsidiaries | 1,213.2 | ||
U.K. | |||
Segmented Information | |||
Earnings before income taxes | 881.9 | 353.2 | |
Provision for (recovery of) income taxes | (48.5) | 103.4 | |
Net earnings | 930.4 | 249.8 | |
U.K. | Ambridge Group | |||
Segmented Information | |||
Gain on sale and consolidation of insurance subsidiaries | 259.1 | ||
Other | |||
Segmented Information | |||
Earnings before income taxes | 2,146.5 | 1,211.1 | |
Provision for (recovery of) income taxes | 264.8 | 290.2 | |
Net earnings | $ 1,881.7 | $ 920.9 | |
[1] See note 3 for details of transition to IFRS 17. |
Income Taxes - Income tax recon
Income Taxes - Income tax reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||
Canadian statutory income tax rate | 26.50% | 26.50% |
Provision for income taxes at the Canadian statutory income tax rate | $ 1,565.7 | $ 1,299.6 |
Non-taxable investment income | (182.3) | (25.6) |
Tax rate differential on income and losses outside Canada | (473.2) | (256.3) |
Change in unrecorded tax benefit of losses and temporary differences | (9.7) | (0.6) |
Change in tax rate for deferred income taxes | (132.3) | 34.5 |
Provision (recovery) relating to prior years | (28.8) | 1.7 |
Foreign exchange effect | 12.5 | (17) |
Other including permanent differences | 61.5 | 56.2 |
Provision for income taxes | 813.4 | $ 1,092.5 |
Change in Deferred income tax assets | $ 140.8 |
Income Taxes - Income taxes ref
Income Taxes - Income taxes refundable and payable (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes | |||
Income taxes refundable | $ 59 | $ 67.1 | |
Income taxes payable | (306.9) | (361) | |
Net income taxes payable | $ (247.9) | $ (293.9) | $ (116.7) |
Income Taxes - Changes in net i
Income Taxes - Changes in net income taxes (payable) refundable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in net income taxes (payable) refundable | ||
Balance - January 1 | $ (293.9) | $ (116.7) |
Amounts recorded in the consolidated statements of earnings | (640.1) | (606.8) |
Payments made during the year | 713.9 | 416.4 |
Acquisitions of subsidiaries | (31.3) | |
Foreign exchange effect and other | 3.5 | 13.2 |
Balance - December 31 | $ (247.9) | $ (293.9) |
Income Taxes - Changes in net d
Income Taxes - Changes in net deferred income tax asset (liability) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in net deferred income tax asset (liability) | ||
Deferred tax asset, beginning balance | $ (730.7) | $ (137.4) |
Amounts recorded in the consolidated statement of earnings | (173.3) | (485.7) |
Amounts recorded in total equity | 15 | (15.9) |
Acquisitions of subsidiaries | (60.9) | (62.5) |
Foreign exchange effect and other | 0.7 | (29.2) |
Deferred tax asset, ending balance | (949.2) | (730.7) |
Operating and capital losses | ||
Reconciliation of changes in net deferred income tax asset (liability) | ||
Deferred tax asset, beginning balance | 226.8 | 230 |
Amounts recorded in the consolidated statement of earnings | 57.2 | (7.1) |
Amounts recorded in total equity | 15 | 8 |
Acquisitions of subsidiaries | (0.3) | 3.3 |
Foreign exchange effect and other | 14.7 | (7.4) |
Deferred tax asset, ending balance | 313.4 | 226.8 |
Investments | ||
Reconciliation of changes in net deferred income tax asset (liability) | ||
Deferred tax asset, beginning balance | (193) | (414.5) |
Amounts recorded in the consolidated statement of earnings | (411.8) | 197.2 |
Amounts recorded in total equity | (5.8) | 20.1 |
Acquisitions of subsidiaries | 2.7 | (11.4) |
Foreign exchange effect and other | (3.9) | 15.6 |
Deferred tax asset, ending balance | (611.8) | (193) |
Insurance and reinsurance held contracts | ||
Reconciliation of changes in net deferred income tax asset (liability) | ||
Deferred tax asset, beginning balance | (382.8) | 207.8 |
Amounts recorded in the consolidated statement of earnings | 41.1 | (588.9) |
Acquisitions of subsidiaries | (4.1) | 0.1 |
Foreign exchange effect and other | (12.2) | (1.8) |
Deferred tax asset, ending balance | (358) | (382.8) |
Intangible assets | ||
Reconciliation of changes in net deferred income tax asset (liability) | ||
Deferred tax asset, beginning balance | (376.1) | (413.1) |
Amounts recorded in the consolidated statement of earnings | 116.6 | 30.9 |
Acquisitions of subsidiaries | (46.2) | (1.9) |
Foreign exchange effect and other | (2.6) | 8 |
Deferred tax asset, ending balance | (308.3) | (376.1) |
Tax credits | ||
Reconciliation of changes in net deferred income tax asset (liability) | ||
Deferred tax asset, beginning balance | 75.4 | 213.6 |
Amounts recorded in the consolidated statement of earnings | (20.2) | (137.1) |
Foreign exchange effect and other | (21.6) | (1.1) |
Deferred tax asset, ending balance | 33.6 | 75.4 |
Other | ||
Reconciliation of changes in net deferred income tax asset (liability) | ||
Deferred tax asset, beginning balance | (81) | 38.8 |
Amounts recorded in the consolidated statement of earnings | 43.8 | 19.3 |
Amounts recorded in total equity | 5.8 | (44) |
Acquisitions of subsidiaries | (13) | (52.6) |
Foreign exchange effect and other | 26.3 | (42.5) |
Deferred tax asset, ending balance | $ (18.1) | $ (81) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||
Unremitted earnings of subsidiaries | $ 13,400 | $ 9,900 |
Canada | ||
Income Taxes | ||
Deferred income tax assets not recorded | 1,839.2 | 1,728 |
Europe | ||
Income Taxes | ||
Deferred income tax assets not recorded | 624.6 | 552.1 |
United States | ||
Income Taxes | ||
Deferred income tax assets not recorded | 233.1 | 207.6 |
Allied World | ||
Income Taxes | ||
Deferred income tax assets not recorded | $ 264.9 | 295.6 |
Operating loss carryforward, expiration period | 7 years | |
Deferred Tax Assets, Operating and Capital Losses | ||
Income Taxes | ||
Deferred income tax assets not recorded | $ 783.9 | $ 827.7 |
Statutory Requirements (Details
Statutory Requirements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statutory Requirements | ||
Common share dividends | $ 449.7 | $ 513.1 |
Dividend capacity available | 3,002.8 | |
Insurance and reinsurance companies | ||
Statutory Requirements | ||
Common share dividends | 512.8 | 380.9 |
North American Insurers | ||
Statutory Requirements | ||
Dividend capacity available | 1,006.1 | |
Global Insurers and Reinsurers | ||
Statutory Requirements | ||
Dividend capacity available | 1,911.8 | |
Northbridge | North American Insurers | ||
Statutory Requirements | ||
Dividend capacity available | 572.6 | |
Crum & Forster | North American Insurers | ||
Statutory Requirements | ||
Special dividend paid | $ 940 | |
Dividend capacity available | 228.2 | |
Zenith National | North American Insurers | ||
Statutory Requirements | ||
Dividend capacity available | 205.3 | |
Allied World | Global Insurers and Reinsurers | ||
Statutory Requirements | ||
Dividend capacity available | 1,231.2 | |
Odyssey Group | Global Insurers and Reinsurers | ||
Statutory Requirements | ||
Dividend capacity available | 554.9 | |
Brit | Global Insurers and Reinsurers | ||
Statutory Requirements | ||
Special dividend paid | 275 | |
Dividend capacity available | 125.7 | |
Gulf Insurance Group K.S.C.P. | International Insurers and Reinsurers | ||
Statutory Requirements | ||
Dividend capacity available | $ 84.9 |
Contingencies and Commitments (
Contingencies and Commitments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Contingencies and Commitments | |
Capital commitments | $ 1,792.6 |
Maximum capital commitments for first mortgage loans | 1,550.1 |
Lloyd's participants | Cash and cash equivalents | |
Contingencies and Commitments | |
Financial assets pledged as collateral | 88.3 |
Lloyd's participants | Financial assets at fair value | Securities | |
Contingencies and Commitments | |
Financial assets pledged as collateral | $ 1,865.7 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisition Gulf Insurance (Details) - Gulf Insurance $ in Millions | 12 Months Ended | |
Dec. 26, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Acquisition, Step 1 | ||
Acquisitions and Divestitures | ||
Proportion of ownership interest in subsidiary | 43.70% | |
Percentage of common shares acquired | 43.70% | |
Fair value of equity interests previously acquired | $ 713 | |
Acquisition, Step 2 | ||
Acquisitions and Divestitures | ||
Percentage of common shares acquired | 46.30% | |
Cash consideration | $ 176.9 | |
Fair value of payment deed | 579.2 | |
Gain on remeasurement of previously held equity interest | 279.9 | |
Payment deed | $ 660 | |
Payment deed, number of installment payments | item | 4 | |
Payment deed, amount of installment payments | $ 165 | |
Liabilities | ||
Purchase consideration | $ 756.1 | |
Total acquisition | ||
Acquisitions and Divestitures | ||
Proportion of ownership interest in subsidiary | 90% | |
Percentage held by non-controlling interests | 9.99% | |
Assets | ||
Portfolio investments | $ 2,372.6 | |
Reinsurance contract assets held | 571.3 | |
Deferred income tax assets | 13.8 | |
Goodwill and intangible assets | 937.5 | |
Other assets | 501.3 | |
Total assets | 4,396.5 | |
Liabilities | ||
Accounts payable and accrued liabilities | 292 | |
Deferred income tax liabilities | 77 | |
Insurance contract payables | 34.8 | |
Insurance contract liabilities | 1,745.4 | |
Borrowings - holding company and insurance and reinsurance companies | 172.9 | |
Total liabilities | 2,322.1 | |
Non-controlling interests | 605.3 | |
Purchase consideration | 1,469.1 | |
Total | 4,396.5 | |
Subsidiary cash and cash equivalents | 459.9 | |
Restricted cash and cash equivalents | 31.3 | |
Goodwill | 330.5 | |
Intangible assets | 607 | |
Premises and equipment | 178.9 | |
Unit-linked life investment contracts | 138.1 | |
Accounts receivable | 50.2 | |
Prepaid expenses | 43.1 | |
Accounts payable | 87.5 | |
Accrued compensation costs | 75.6 | |
Taxes payable | 37.9 | |
Customer relationships | Total acquisition | ||
Liabilities | ||
Intangible assets | 260 | |
Distribution networks | Total acquisition | ||
Liabilities | ||
Intangible assets | 223.9 | |
Brand names | Total acquisition | ||
Liabilities | ||
Intangible assets | $ 123 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Sale of Ambridge Group by Brit (Details) - Brit - Ambridge Group $ in Millions | May 10, 2023 USD ($) |
Acquisitions and Divestitures | |
Aggregate consideration received | $ 379 |
Cash consideration received | 265.8 |
Fair value of promissory note received in sale of business interests | 113.2 |
Pre-tax gain on sale | 259.1 |
After tax gain on sale | 259.1 |
Deconsolidate assets, carrying values | 309.3 |
Deconsolidate liabilities, carrying values | $ 191.3 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Sale of Pet Insurance Operations and Investment in JAB Consumer Fund (Details) - JAB Consumer Fund - USD ($) $ in Millions | Oct. 31, 2022 | Dec. 31, 2023 |
Acquisitions and Divestitures | ||
Commitment for future investment | $ 200 | |
Crum & Forster Pet Insurance Group and Pethealth | ||
Acquisitions and Divestitures | ||
Aggregate sale price | 1,400 | |
Cash proceeds received from sale of business interests | 1,150 | |
Debentures received as consideration in sale of business interests | 250 | |
Amount invested per agreement | $ 160 | |
Pre-tax gain on sale | 1,213.2 | |
After tax gain on sale | 933.9 | |
Deconsolidate assets, carrying values | 149.1 | |
Deconsolidate liabilities, carrying values | $ 32 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Additional investment in Recipe Unlimited Corporation (Details) - Recipe $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 28, 2022 USD ($) | Dec. 28, 2022 CAD ($) | Oct. 28, 2022 USD ($) shares | Dec. 31, 2021 | Oct. 28, 2022 CAD ($) $ / shares shares | |
Acquisitions and Divestitures | |||||
Number of MVS shares retained by Cara Holdings Limited | shares | 9,398,729 | 9,398,729 | |||
Cash purchase price per share | $ / shares | $ 20.73 | ||||
Purchase consideration | $ 342.3 | $ 465.9 | |||
Cash transferred | 242.5 | 330 | |||
Liabilities assumed in business acquisition | 99.8 | $ 135.9 | |||
Loss on net changes in net capitalization related to business acquisition | 66.1 | ||||
Decrease in non-controlling interests due to changes in net capitalization | $ 276.2 | ||||
Equity ownership percentage | 75.70% | 38.50% | |||
Equity ownership percentage including investment in AVLNs | 84% | ||||
Cash consideration received upon redemption of certain equity held by the company in connection with the closing of the transaction | $ 73.6 | $ 100 |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Acquisition of Grivalia Hospitality S.A. (Details) € in Millions, $ in Millions | 12 Months Ended | ||
Jul. 05, 2022 USD ($) | Dec. 31, 2021 | Jul. 05, 2022 EUR (€) | |
Grivalia Hospitality | |||
Acquisitions and Divestitures | |||
Cash consideration | $ 194.6 | € 190 | |
Grivalia Hospitality | |||
Acquisitions and Divestitures | |||
Ownership percentage | 78.40% | 33.50% |
Financial Risk Management - Con
Financial Risk Management - Concentration of insurance risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Risk Management. | ||
Insurance | $ 26,934.8 | $ 24,703.5 |
Reinsurance | $ (4,977.4) | (4,509.2) |
Reserving risk | ||
Asbestos and environmental claims, maximum settlement period (in years) | 40 years | |
Catastrophe risk | ||
Normalized Net Earnings, Percent Return On Common Shareholders' Equity Adjusted To Pre-Tax Basis | 15% | |
Canada | ||
Financial Risk Management. | ||
Insurance | $ 2,772.7 | 2,644.2 |
United States | ||
Financial Risk Management. | ||
Insurance | 16,922.7 | 15,931.2 |
Asia | ||
Financial Risk Management. | ||
Insurance | 1,958.6 | 1,586.5 |
International | ||
Financial Risk Management. | ||
Insurance | 5,280.8 | 4,541.6 |
Property | ||
Financial Risk Management. | ||
Insurance | 9,743.2 | 8,486.5 |
Casualty | ||
Financial Risk Management. | ||
Insurance | 14,948.4 | 14,256.4 |
Specialty | ||
Financial Risk Management. | ||
Insurance | 2,243.2 | 1,960.6 |
Insurance risk | ||
Financial Risk Management. | ||
Insurance | 26,934.8 | 24,703.5 |
Reinsurance | (4,977.4) | (4,509.2) |
Net insurance revenue | 21,957.4 | 20,194.3 |
Insurance risk | Canada | ||
Financial Risk Management. | ||
Insurance | 2,772.7 | 2,644.4 |
Reinsurance | (286.1) | (276.9) |
Net insurance revenue | 2,486.6 | 2,367.5 |
Insurance risk | United States | ||
Financial Risk Management. | ||
Insurance | 16,922.7 | 15,930.8 |
Reinsurance | (3,004.3) | (2,818.7) |
Net insurance revenue | 13,918.4 | 13,112.1 |
Insurance risk | Asia | ||
Financial Risk Management. | ||
Insurance | 1,958.6 | 1,586.6 |
Reinsurance | (433.8) | (298.6) |
Net insurance revenue | 1,524.8 | 1,288 |
Insurance risk | International | ||
Financial Risk Management. | ||
Insurance | 5,280.8 | 4,541.7 |
Reinsurance | (1,253.2) | (1,115) |
Net insurance revenue | 4,027.6 | 3,426.7 |
Insurance risk | Property | ||
Financial Risk Management. | ||
Net insurance revenue | 7,798.8 | 6,752.2 |
Insurance risk | Property | Canada | ||
Financial Risk Management. | ||
Net insurance revenue | 1,268.1 | 1,156.2 |
Insurance risk | Property | United States | ||
Financial Risk Management. | ||
Net insurance revenue | 4,021.1 | 3,527 |
Insurance risk | Property | Asia | ||
Financial Risk Management. | ||
Net insurance revenue | 735 | 597.4 |
Insurance risk | Property | International | ||
Financial Risk Management. | ||
Net insurance revenue | 1,774.6 | 1,471.6 |
Insurance risk | Casualty | ||
Financial Risk Management. | ||
Net insurance revenue | 12,411.7 | 11,919.4 |
Insurance risk | Casualty | Canada | ||
Financial Risk Management. | ||
Net insurance revenue | 1,124.4 | 1,105.1 |
Insurance risk | Casualty | United States | ||
Financial Risk Management. | ||
Net insurance revenue | 9,188.7 | 8,975.3 |
Insurance risk | Casualty | Asia | ||
Financial Risk Management. | ||
Net insurance revenue | 556 | 482.8 |
Insurance risk | Casualty | International | ||
Financial Risk Management. | ||
Net insurance revenue | 1,542.6 | 1,356.2 |
Insurance risk | Specialty | ||
Financial Risk Management. | ||
Net insurance revenue | 1,746.9 | 1,522.7 |
Insurance risk | Specialty | Canada | ||
Financial Risk Management. | ||
Net insurance revenue | 94.1 | 106.2 |
Insurance risk | Specialty | United States | ||
Financial Risk Management. | ||
Net insurance revenue | 708.6 | 609.8 |
Insurance risk | Specialty | Asia | ||
Financial Risk Management. | ||
Net insurance revenue | 233.8 | 207.8 |
Insurance risk | Specialty | International | ||
Financial Risk Management. | ||
Net insurance revenue | $ 710.4 | $ 598.9 |
Financial Risk Management - Cre
Financial Risk Management - Credit Risk - Gross credit risk exposure (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Risk Management | ||
Assets associated with unit-linked insurance products and other products | $ 1,204 | $ 676.5 |
Income taxes refundable | 59 | 67.1 |
Credit risk | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 60,178.4 | 51,912 |
Assets associated with unit-linked insurance products and other products | 1,204 | 676.5 |
Income taxes refundable | 59 | 67.1 |
Credit risk | Cash and short term investments | ||
Financial Risk Management | ||
Maximum exposure to credit risk | $ 8,092.8 | $ 10,386 |
Credit risk | Cash and short term investments | Canada and United States | ||
Financial Risk Management | ||
Risk exposure percentage | 59.10% | 69.40% |
Credit risk | Cash and short term investments | Europe | ||
Financial Risk Management | ||
Risk exposure percentage | 24% | 24.80% |
Credit risk | Cash and short term investments | Other foreign countries | ||
Financial Risk Management | ||
Risk exposure percentage | 16.90% | 5.80% |
Credit risk | U.S. sovereign government and other sovereign government rated AA/Aa or higher | ||
Financial Risk Management | ||
Risk exposure percentage | 31.40% | 30.30% |
Credit risk | U.S. sovereign government | ||
Financial Risk Management | ||
Maximum exposure to credit risk | $ 16,273.5 | $ 14,378.8 |
Credit risk | Other sovereign government rated AA/Aa or higher | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 4,046.8 | 2,413.5 |
Credit risk | Other sovereign government rated AA/Aa or higher | Canada | ||
Financial Risk Management | ||
Bonds issued by government | 2,471.6 | 1,923.5 |
Credit risk | Other sovereign government rated AA/Aa or higher | United Kingdom | ||
Financial Risk Management | ||
Bonds issued by government | 321.8 | 180.6 |
Credit risk | Other sovereign government rated AA/Aa or higher | Australia | ||
Financial Risk Management | ||
Bonds issued by government | 378.5 | 46.5 |
Credit risk | All other sovereign government | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 3,367.1 | 2,210.2 |
Credit risk | All other sovereign government | Greece | ||
Financial Risk Management | ||
Bonds issued by government | 1,234.6 | 690.1 |
Credit risk | All other sovereign government | Brazil | ||
Financial Risk Management | ||
Bonds issued by government | 884.4 | 744.2 |
Credit risk | All other sovereign government | Saudi Arabia | ||
Financial Risk Management | ||
Bonds issued by government | 239.8 | 0 |
Credit risk | Canadian provincials | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 243.5 | 284.1 |
Credit risk | U.S. states and municipalities | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 184.5 | 262.7 |
Credit risk | Corporate and other | ||
Financial Risk Management | ||
Maximum exposure to credit risk | $ 13,325.6 | $ 9,451.9 |
Risk exposure percentage | 20.60% | 17% |
Credit risk | Unrated first mortgage loans | ||
Financial Risk Management | ||
Net purchases of bonds | $ 2,261.5 | |
Credit risk | Corporate bonds | ||
Financial Risk Management | ||
Net purchases of bonds | 817.9 | |
Credit risk | Investments in first mortgage loans | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 4,685.4 | $ 2,500.7 |
Credit risk | Receivable from counterparties to derivative contracts | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 656.6 | 256.1 |
Credit risk | Insurance contract receivables | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 926.1 | 648.9 |
Credit risk | Reinsurance contracts assets held | ||
Financial Risk Management | ||
Maximum exposure to credit risk | 10,887.7 | 9,691.5 |
Credit risk | Other assets | ||
Financial Risk Management | ||
Maximum exposure to credit risk | $ 2,174.2 | $ 1,928.3 |
Financial Risk Management - C_2
Financial Risk Management - Credit Risk - Investments in debt instruments (Details) - Credit risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Bank of Nova Scotia | Largest single issuer of corporate bonds | ||
Financial Risk Management | ||
Investments in debt instruments | $ 453 | |
Risk exposure percentage | 0.70% | |
BP Capital Markets America Inc | Largest single issuer of corporate bonds | ||
Financial Risk Management | ||
Investments in debt instruments | $ 427.7 | |
Risk exposure percentage | 0.80% | |
Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 100% | 100% |
Corporate and other | ||
Financial Risk Management | ||
Risk exposure percentage | 20.60% | 17% |
Other than U.S., U.K., German, and Canadian sovereign government | Ten largest issuers | ||
Financial Risk Management | ||
Investments in debt instruments | $ 4,704.6 | $ 3,599.2 |
Risk exposure percentage | 7.30% | 6.50% |
AAA/Aaa | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 52.50% | 57.70% |
AAA/Aaa | U.S Treasury bonds | ||
Financial Risk Management | ||
Net purchases of bonds | $ 1,415.3 | |
AAA/Aaa | Other government bonds | ||
Financial Risk Management | ||
Net purchases of bonds | 421.7 | |
AAA/Aaa | Canadian government bonds | ||
Financial Risk Management | ||
Net purchases of bonds | $ 415.9 | |
AA/Aa | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 4.10% | 2.90% |
AA/Aa | Other government bonds | ||
Financial Risk Management | ||
Net purchases of bonds | $ 575.6 | |
AA/Aa | Corporate and other | ||
Financial Risk Management | ||
Net purchases of bonds | $ 78.1 | |
A/A | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 10.70% | 8% |
A/A | Corporate bonds | ||
Financial Risk Management | ||
Net purchases of bonds | $ 1,197.1 | |
A/A | Other government bonds | ||
Financial Risk Management | ||
Net sales of bonds | $ 173.1 | |
BBB/Baa | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 11.80% | 11.50% |
BBB/Baa | Corporate and other | ||
Financial Risk Management | ||
Net sales of bonds | $ 430.6 | |
BBB/Baa | Other government bonds | ||
Financial Risk Management | ||
Net purchases of bonds | $ 441.6 | |
BB/Ba | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 3.90% | 6.60% |
B/B | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 0.50% | 0.20% |
Lower than B/B | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 0.30% | 0.30% |
Unrated | Amynta Agency Inc. | ||
Financial Risk Management | ||
Investments in debt instruments | $ 159.7 | $ 32.5 |
Unrated | Blackberry Limited | ||
Financial Risk Management | ||
Investments in debt instruments | 148.9 | 285 |
Unrated | ONX Inc. | ||
Financial Risk Management | ||
Investments in debt instruments | 125.6 | 25 |
Unrated | Mytilineos S.A. | ||
Financial Risk Management | ||
Investments in debt instruments | $ 101.4 | $ 0 |
Unrated | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 16.20% | 12.80% |
Unrated | Investments in first mortgage loans | ||
Financial Risk Management | ||
Investments in debt instruments | $ 4,685.4 | $ 2,500.7 |
Net purchases of bonds | $ 2,261.5 | |
Investment grade or better | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 79.10% | 80.10% |
AA or better | Investments in debt instruments | ||
Financial Risk Management | ||
Risk exposure percentage | 56.60% | 60.60% |
Amortized cost | ||
Financial Risk Management | ||
Investments in debt instruments | $ 37,094.3 | $ 29,968.6 |
Amortized cost | AAA/Aaa | ||
Financial Risk Management | ||
Investments in debt instruments | 19,301.4 | 17,119.4 |
Amortized cost | AA/Aa | ||
Financial Risk Management | ||
Investments in debt instruments | 1,490.9 | 858.3 |
Amortized cost | A/A | ||
Financial Risk Management | ||
Investments in debt instruments | 3,977.9 | 2,409.6 |
Amortized cost | BBB/Baa | ||
Financial Risk Management | ||
Investments in debt instruments | 4,420.3 | 3,410.3 |
Amortized cost | BB/Ba | ||
Financial Risk Management | ||
Investments in debt instruments | 1,422 | 2,114.9 |
Amortized cost | B/B | ||
Financial Risk Management | ||
Investments in debt instruments | 184 | 48.2 |
Amortized cost | Lower than B/B | ||
Financial Risk Management | ||
Investments in debt instruments | 87.6 | 79.7 |
Amortized cost | Unrated | ||
Financial Risk Management | ||
Investments in debt instruments | 6,210.2 | 3,928.2 |
Fair value | ||
Financial Risk Management | ||
Investments in debt instruments | 37,441 | 29,001.2 |
Fair value | AAA/Aaa | ||
Financial Risk Management | ||
Investments in debt instruments | 19,670.5 | 16,721.6 |
Fair value | AA/Aa | ||
Financial Risk Management | ||
Investments in debt instruments | 1,521.9 | 847.6 |
Fair value | A/A | ||
Financial Risk Management | ||
Investments in debt instruments | 4,012.7 | 2,330.6 |
Fair value | BBB/Baa | ||
Financial Risk Management | ||
Investments in debt instruments | 4,414.2 | 3,348.7 |
Fair value | BB/Ba | ||
Financial Risk Management | ||
Investments in debt instruments | 1,445.9 | 1,917.2 |
Fair value | B/B | ||
Financial Risk Management | ||
Investments in debt instruments | 182.5 | 49.6 |
Fair value | Lower than B/B | ||
Financial Risk Management | ||
Investments in debt instruments | 113.7 | 80 |
Fair value | Unrated | ||
Financial Risk Management | ||
Investments in debt instruments | 6,079.6 | $ 3,705.9 |
Gulf Insurance | Corporate and other | ||
Financial Risk Management | ||
Consolidation of Gulf Insurance's bond portfolio | 516.7 | |
Gulf Insurance | A/A | Other government and corporate and other bonds | ||
Financial Risk Management | ||
Consolidation of Gulf Insurance's bond portfolio | 495.8 | |
Gulf Insurance | Unrated | ||
Financial Risk Management | ||
Consolidation of Gulf Insurance's bond portfolio | $ 140.8 |
Financial Risk Management - C_3
Financial Risk Management - Credit Risk - Counterparties to derivative contracts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Risk Management | ||
Total derivative assets | $ 656.6 | $ 256.1 |
Obligations that may be offset under net settlement arrangements | (48.8) | (33) |
Fair value of collateral deposited for the benefit of the company | (527.9) | (216) |
Excess collateral pledged by the company in favour of counterparties | 7.2 | 4.6 |
Net derivative counterparty exposure after net settlement and collateral arrangements | 87.1 | 11.7 |
Excess collateral pledged by counterparties | 6.6 | 68.4 |
Cash | ||
Financial Risk Management | ||
Financial assets pledged as collateral | 42.2 | 9.5 |
Government securities | ||
Financial Risk Management | ||
Financial assets pledged as collateral | $ 492.3 | $ 274.9 |
Financial Risk Management - C_4
Financial Risk Management - Credit Risk - Reinsurance contract assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Financial Risk Management | |||
Capital and surplus requirement | $ 500 | ||
Funds available for collateralization | 1,100 | ||
Reinsurance contract assets held | $ 10,887.7 | $ 9,691.5 | $ 9,893.1 |
A.M. Best rating A- or higher | |||
Financial Risk Management | |||
Risk exposure percentage | 88% | ||
Pools and associations | |||
Financial Risk Management | |||
Risk exposure percentage | 12% |
Financial Risk Management - Liq
Financial Risk Management - Liquidity Risk (Details) $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Mar. 15, 2024 | Jan. 29, 2024 | Jan. 12, 2024 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 07, 2023 | May 25, 2023 USD ($) | |
Financial Risk Management. | ||||||||
Holding company cash and investments (net of derivative obligations) | $ 1,749.1 | $ 1,326.4 | ||||||
Portfolio investments cash and investments, net | $ 63,009.7 | $ 54,153.1 | ||||||
4.95% due March 3, 2025 (Cdn$348.6) | ||||||||
Financial Risk Management. | ||||||||
Borrowings, principal | $ 348.6 | |||||||
Interest rate | 4.95% | 4.95% | ||||||
Holding company | ||||||||
Financial Risk Management. | ||||||||
Commitment to pay dividends in the next fiscal year | $ 363.1 | |||||||
Commitment to pay dividends in the next fiscal year (per share) | $ / shares | $ 15 | |||||||
Holding company | Gulf Insurance | ||||||||
Financial Risk Management. | ||||||||
Commitment for payment deed in next fiscal year | $ 165 | |||||||
Holding company | Life insurance and Run-off | ||||||||
Financial Risk Management. | ||||||||
Capital Contribution | 140 | |||||||
Holding company | Brit | ||||||||
Financial Risk Management. | ||||||||
Special dividend received from subsidiary | $ 275 | |||||||
Holding company | 4.875% due August 13, 2024 | ||||||||
Financial Risk Management. | ||||||||
Commitment, redemption of senior unsecured notes | $ 279.3 | |||||||
Interest rate | 4.875% | 4.875% | 4.875% | 4.875% | ||||
Holding company | 4.95% due March 3, 2025 (Cdn$348.6) | ||||||||
Financial Risk Management. | ||||||||
Commitment, redemption of senior unsecured notes | $ 348.6 | |||||||
Interest rate | 4.95% | 4.95% | 4.95% | 4.95% | ||||
Holding company | Revolving Credit Facility | ||||||||
Financial Risk Management. | ||||||||
Maximum borrowing capacity | $ 2,000 | |||||||
Holding company | 6.00% due December 7, 2033 | ||||||||
Financial Risk Management. | ||||||||
Borrowings, principal | $ 200 | |||||||
Interest rate | 6% | 6% | 6% | |||||
Holding company | Long equity total return swap contracts | ||||||||
Financial Risk Management. | ||||||||
Cash received from settlement of derivative contracts | $ 304.2 | $ 154.8 | ||||||
Insurance and reinsurance subsidiaries | Fairfax India | ||||||||
Financial Risk Management. | ||||||||
Investments lacking liquidity or inactively traded | $ 1,461.2 | $ 1,117.5 | ||||||
Insurance and reinsurance subsidiaries | Investments that may lack liquidity or are inactively traded | ||||||||
Financial Risk Management. | ||||||||
Risk exposure percentage | 20.70% | 14.10% | 20.70% | |||||
Non-insurance companies | AGT and Boat Rocker credit facilities | ||||||||
Financial Risk Management. | ||||||||
Repayments of borrowings in next fiscal year | $ 376.3 |
Financial Risk Management - L_2
Financial Risk Management - Liquidity Risk - Maturity profile of the insurance contract liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Risk Management. | ||
Insurance contract liabilities, undiscounted cash flows | $ 46,291.6 | $ 41,480.3 |
One year or less | ||
Financial Risk Management. | ||
Insurance contract liabilities, undiscounted cash flows | 15,080.6 | 12,550.3 |
One to two years | ||
Financial Risk Management. | ||
Insurance contract liabilities, undiscounted cash flows | 7,544.2 | 7,487.2 |
Two to three years | ||
Financial Risk Management. | ||
Insurance contract liabilities, undiscounted cash flows | 5,414.4 | 5,048.8 |
Three to four years | ||
Financial Risk Management. | ||
Insurance contract liabilities, undiscounted cash flows | 3,972.1 | 3,868.9 |
Four to five years | ||
Financial Risk Management. | ||
Insurance contract liabilities, undiscounted cash flows | 3,168.5 | 2,596.8 |
More than five years | ||
Financial Risk Management. | ||
Insurance contract liabilities, undiscounted cash flows | $ 11,111.8 | $ 9,928.3 |
Financial Risk Management - L_3
Financial Risk Management - Liquidity Risk - Maturity profile of financial and insurance liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Risk Management | ||
Insurance contract liabilities | $ 46,291.6 | $ 41,480.3 |
More than five years | ||
Financial Risk Management | ||
Insurance contract liabilities | 11,111.8 | 9,928.3 |
Liquidity risk | ||
Financial Risk Management | ||
Accounts payable and accrued liabilities | 4,931.4 | 4,327 |
Insurance contract payables | 1,206.9 | 1,402.7 |
Total financial liabilities | 18,348.3 | 16,736 |
Liquidity risk | Holding company and insurance and reinsurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 7,944.9 | 6,660.3 |
Borrowings - interest | 1,960.7 | 1,921.6 |
Liquidity risk | Non-insurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 1,906.3 | 2,013.2 |
Borrowings - interest | 398.1 | 411.2 |
Liquidity risk | 3 months or less | ||
Financial Risk Management | ||
Accounts payable and accrued liabilities | 1,857.5 | 1,458.3 |
Insurance contract payables | 422 | 490.3 |
Total financial liabilities | 2,974.6 | 2,314.4 |
Liquidity risk | 3 months or less | Holding company and insurance and reinsurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 545.3 | 0.1 |
Borrowings - interest | 90.4 | 84.3 |
Liquidity risk | 3 months or less | Non-insurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 28.4 | 254.5 |
Borrowings - interest | 31 | 26.9 |
Liquidity risk | 3 months to 1 year | ||
Financial Risk Management | ||
Accounts payable and accrued liabilities | 1,210.8 | 1,047 |
Insurance contract payables | 96.5 | 312.3 |
Total financial liabilities | 2,172.3 | 1,755 |
Liquidity risk | 3 months to 1 year | Holding company and insurance and reinsurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 198.5 | 0.2 |
Borrowings - interest | 247.4 | 209.2 |
Liquidity risk | 3 months to 1 year | Non-insurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 347.9 | 117.3 |
Borrowings - interest | 71.2 | 69 |
Liquidity risk | 1 - 3 years | ||
Financial Risk Management | ||
Accounts payable and accrued liabilities | 920.9 | 899.5 |
Insurance contract payables | 304.3 | 57.2 |
Total financial liabilities | 3,801.1 | 3,505.6 |
Liquidity risk | 1 - 3 years | Holding company and insurance and reinsurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 1,341.7 | 1,051.4 |
Borrowings - interest | 611.1 | 567 |
Liquidity risk | 1 - 3 years | Non-insurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 478.6 | 781.9 |
Borrowings - interest | 144.5 | 148.6 |
Liquidity risk | 3 - 5 years | ||
Financial Risk Management | ||
Accounts payable and accrued liabilities | 350.9 | 363.1 |
Insurance contract payables | 132.8 | 317 |
Total financial liabilities | 3,918 | 2,191.4 |
Liquidity risk | 3 - 5 years | Holding company and insurance and reinsurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 2,185.9 | 904.2 |
Borrowings - interest | 480.8 | 462.2 |
Liquidity risk | 3 - 5 years | Non-insurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 686.9 | 61.3 |
Borrowings - interest | 80.7 | 83.6 |
Liquidity risk | More than five years | ||
Financial Risk Management | ||
Accounts payable and accrued liabilities | 591.3 | 559.1 |
Insurance contract payables | 251.3 | 225.9 |
Total financial liabilities | 5,482.3 | 6,969.6 |
Liquidity risk | More than five years | Holding company and insurance and reinsurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 3,673.5 | 4,704.4 |
Borrowings - interest | 531 | 598.9 |
Liquidity risk | More than five years | Non-insurance companies | ||
Financial Risk Management | ||
Borrowings - principal | 364.5 | 798.2 |
Borrowings - interest | $ 70.7 | $ 83.1 |
Financial Risk Management - L_4
Financial Risk Management - Liquidity Risk - Derivative Financial Liabilities (Details) - Liquidity risk - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Risk Management | ||
Derivative financial liabilities | $ 444.9 | $ 191 |
3 months or less | ||
Financial Risk Management | ||
Derivative financial liabilities | 216.4 | 95.8 |
3 months to 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | 135.9 | 43.8 |
More than 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | 92.6 | 51.4 |
Equity total return swaps - long positions | ||
Financial Risk Management | ||
Derivative financial liabilities | 32.5 | 19.4 |
Equity total return swaps - long positions | 3 months or less | ||
Financial Risk Management | ||
Derivative financial liabilities | 28.5 | 19.1 |
Equity total return swaps - long positions | 3 months to 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | 0.1 | 0.3 |
Equity total return swaps - long positions | More than 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | 3.9 | |
Foreign currency forward and swap contracts | ||
Financial Risk Management | ||
Derivative financial liabilities | 158.8 | 106.8 |
Foreign currency forward and swap contracts | 3 months or less | ||
Financial Risk Management | ||
Derivative financial liabilities | 97.6 | 51.1 |
Foreign currency forward and swap contracts | 3 months to 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | 0.9 | 5 |
Foreign currency forward and swap contracts | More than 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | 60.3 | 50.7 |
Other derivative contracts | ||
Financial Risk Management | ||
Derivative financial liabilities | 253.6 | 64.8 |
Other derivative contracts | 3 months or less | ||
Financial Risk Management | ||
Derivative financial liabilities | 90.3 | 25.6 |
Other derivative contracts | 3 months to 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | 134.9 | 38.5 |
Other derivative contracts | More than 1 year | ||
Financial Risk Management | ||
Derivative financial liabilities | $ 28.4 | $ 0.7 |
Financial Risk Management - Mar
Financial Risk Management - Market Risk - Interest rate risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
200 basis point increase | ||
Financial Risk Management | ||
Net liability for incurred claims | $ 28,081.6 | $ 25,254.5 |
Hypothetical change in net earnings | 1,278.6 | 1,233.7 |
100 basis point increase | ||
Financial Risk Management | ||
Net liability for incurred claims | 28,862.7 | 25,864.4 |
Hypothetical change in net earnings | 655.3 | 623.9 |
No change | ||
Financial Risk Management | ||
Net liability for incurred claims | 29,688.4 | 26,488.3 |
100 basis point decrease | ||
Financial Risk Management | ||
Net liability for incurred claims | 30,625 | 27,127.6 |
Hypothetical change in net earnings | (751.5) | (639.3) |
200 basis point decrease | ||
Financial Risk Management | ||
Net liability for incurred claims | 31,627.3 | 27,784 |
Hypothetical change in net earnings | (1,551.7) | (1,295.8) |
Interest rate risk | ||
Financial Risk Management | ||
Fixed income securities | 37,400 | 29,000 |
Interest rate risk | Forward contracts to sell long-dated U.S. treasury bonds | ||
Financial Risk Management | ||
Notional amount | 292.8 | 183.7 |
Interest rate risk | Forward contracts to buy long-dated U.S. treasury bonds | ||
Financial Risk Management | ||
Notional amount | 1,900 | 0 |
Interest rate risk | 200 basis point increase | ||
Financial Risk Management | ||
Fair value of fixed income portfolio | 35,043.3 | 27,944 |
Hypothetical change in net earnings | $ (1,934.7) | $ (852.9) |
Hypothetical % change in fair value | (6.40%) | (3.70%) |
Interest rate risk | 100 basis point increase | ||
Financial Risk Management | ||
Fair value of fixed income portfolio | $ 36,212 | $ 28,461.5 |
Hypothetical change in net earnings | $ (991.9) | $ (435.4) |
Hypothetical % change in fair value | (3.30%) | (1.90%) |
Interest rate risk | No change | ||
Financial Risk Management | ||
Fair value of fixed income portfolio | $ 37,441 | $ 29,001.2 |
Interest rate risk | 100 basis point decrease | ||
Financial Risk Management | ||
Fair value of fixed income portfolio | 38,803 | 29,616.2 |
Hypothetical change in net earnings | $ 1,098.1 | $ 496.4 |
Hypothetical % change in fair value | 3.60% | 2.10% |
Interest rate risk | 200 basis point decrease | ||
Financial Risk Management | ||
Fair value of fixed income portfolio | $ 40,274.9 | $ 30,289 |
Hypothetical change in net earnings | $ 2,284.7 | $ 1,039.7 |
Hypothetical % change in fair value | 7.60% | 4.40% |
Financial Risk Management - M_2
Financial Risk Management - Market Risk - Equity and equity-related holdings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Risk Management. | ||
Investments in associates, at fair value | $ 7,553.2 | $ 6,772.9 |
Net gains (losses) on investments | 1,949.5 | (1,573.2) |
Common stocks | ||
Financial Risk Management. | ||
Net gains (losses) on investments | 464.4 | (242.7) |
Bonds and preferred stocks - convertible | ||
Financial Risk Management. | ||
Net gains (losses) on investments | 77.1 | (241.4) |
Equity price risk | ||
Financial Risk Management. | ||
Investments in associates, at fair value | 9,496.6 | 8,183.3 |
Exposure/Notional amount | 19,288.6 | 15,952.4 |
Carrying value | 15,963.6 | 12,749.1 |
Net gains (losses) on investments | 1,217.6 | (243.8) |
Equity price risk | Common stocks | ||
Financial Risk Management. | ||
Exposure/Notional amount | 7,317.8 | 5,234.4 |
Carrying value | 7,317.8 | 5,234.4 |
Net gains (losses) on investments | 464.4 | (242.7) |
Equity price risk | Bonds and preferred stocks - convertible | ||
Financial Risk Management. | ||
Exposure/Notional amount | 414 | 458.7 |
Carrying value | 414 | 458.7 |
Net gains (losses) on investments | 77.1 | (241.4) |
Equity price risk | Investments in associates | ||
Financial Risk Management. | ||
Exposure/Notional amount | 9,496.6 | 8,183.3 |
Carrying value | 7,668.6 | 6,786.6 |
Net gains (losses) on investments | 322 | 45.1 |
Equity price risk | Equity derivatives | ||
Financial Risk Management. | ||
Exposure/Notional amount | 2,060.2 | 2,076 |
Carrying value | 563.2 | 269.4 |
Net gains (losses) on investments | 357.2 | 190.8 |
Equity price risk | Long equity total return swaps on Fairfax subordinate voting shares | ||
Financial Risk Management. | ||
Net gains (losses) on investments | 624.8 | 255.4 |
Equity price risk | Other | ||
Financial Risk Management. | ||
Net gains (losses) on investments | $ (3.1) | $ 4.4 |
Financial Risk Management - M_3
Financial Risk Management - Market Risk - Impact on Net Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity price risk | ||
Financial Risk Management. | ||
Financial asset investments | $ 15,963.6 | $ 12,749.1 |
Equity price risk | Minimum | ||
Financial Risk Management. | ||
Sensitivity analysis, variation percentage | 10% | 10% |
Equity price risk | Maximum | ||
Financial Risk Management. | ||
Sensitivity analysis, variation percentage | 20% | 20% |
Equity price risk | 20% increase | ||
Financial Risk Management. | ||
Fair value of equity and equity-related holdings | $ 11,707.2 | $ 9,297.5 |
Hypothetical $ change in net earnings | $ 1,622.6 | $ 1,301.9 |
Hypothetical % change in fair value | 19.60% | 19.70% |
Equity price risk | 10% increase | ||
Financial Risk Management. | ||
Fair value of equity and equity-related holdings | $ 10,742.2 | $ 8,531.9 |
Hypothetical $ change in net earnings | $ 805.4 | $ 649.8 |
Hypothetical % change in fair value | 9.70% | 9.80% |
Equity price risk | No change | ||
Financial Risk Management. | ||
Fair value of equity and equity-related holdings | $ 9,792 | $ 7,769.1 |
Equity price risk | 10% decrease | ||
Financial Risk Management. | ||
Fair value of equity and equity-related holdings | 8,872.2 | 7,010.3 |
Hypothetical $ change in net earnings | $ (781.1) | $ (646.8) |
Hypothetical % change in fair value | (9.40%) | (9.80%) |
Equity price risk | 20% decrease | ||
Financial Risk Management. | ||
Fair value of equity and equity-related holdings | $ 8,001.8 | $ 6,258.5 |
Hypothetical $ change in net earnings | $ (1,522.8) | $ (1,287.8) |
Hypothetical % change in fair value | (18.30%) | (19.40%) |
Equity price risk | Ten largest issuers | ||
Financial Risk Management. | ||
Financial asset investments | $ 8,812.2 | $ 6,958.2 |
Risk exposure percentage | 13.60% | 12.50% |
Equity price risk | Largest single issuer of corporate bonds | Eurobank | ||
Financial Risk Management. | ||
Financial asset investments | $ 2,099.5 | $ 1,507.6 |
Risk exposure percentage | 3.20% | 2.70% |
Interest rate risk | ||
Financial Risk Management. | ||
Sensitivity analysis, variation percentage | 2% | 2% |
Incremental change in interest rate on investments | 1% | 1% |
Financial Risk Management - M_4
Financial Risk Management - Market Risk - Foreign currency risk (Details) - Foreign currency risk € in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | |
Net gains (losses) on investments: | ||||||
Investing activities | $ 111.4 | $ (367) | ||||
Underwriting activities | (170.2) | 169.8 | ||||
Foreign currency contracts | (60) | 53.6 | ||||
Foreign currency net losses | (118.8) | (143.6) | ||||
Hedges of net investment in Canadian subsidiaries | Unsecured senior notes | ||||||
Financial Risk Management. | ||||||
Debt hedges | $ 2,788.6 | $ 2,800 | ||||
Debt hedges at fair value | 2,061.1 | 1,926.8 | ||||
Gains (losses) on hedge of net investment in Canadian subsidiaries | (56.6) | 149.5 | ||||
Hedges of net investment in European operations | Unsecured senior notes | ||||||
Financial Risk Management. | ||||||
Debt hedges | € | € 750 | € 750 | ||||
Debt hedges at fair value | 791.9 | 698.3 | ||||
Gains (losses) on hedge of net investment in Canadian subsidiaries | $ (27.8) | $ 51.8 |
Financial Risk Management - M_5
Financial Risk Management - Market Risk - Foreign currency effects on the consolidated statement of earnings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Canadian dollar | ||
Financial Risk Management | ||
Assets | $ 1,938.1 | $ 1,602.8 |
Liabilities | (723.7) | (465.3) |
Net asset (liability) exposure | 1,214.4 | 1,137.5 |
Notional long (short) amount of foreign currency forward contracts | (1,387) | (1,258.2) |
Net asset (liability) exposure after foreign currency forward contracts | (172.6) | (120.7) |
Hypothetical change in pre-tax earnings (loss) | 17.3 | 12.1 |
Hypothetical change in net earnings (loss) | 16.2 | 8.9 |
Euro | ||
Financial Risk Management | ||
Assets | 1,190.2 | 830.2 |
Liabilities | (1,503.6) | (1,079.8) |
Net asset (liability) exposure | (313.4) | (249.6) |
Notional long (short) amount of foreign currency forward contracts | (833.5) | (208.7) |
Net asset (liability) exposure after foreign currency forward contracts | (1,146.9) | (458.3) |
Hypothetical change in pre-tax earnings (loss) | 114.7 | 45.8 |
Hypothetical change in net earnings (loss) | 96.2 | 36.8 |
British pound sterling | ||
Financial Risk Management | ||
Assets | 1,363.5 | 1,370.3 |
Liabilities | (2,048.3) | (1,747.4) |
Net asset (liability) exposure | (684.8) | (377.1) |
Notional long (short) amount of foreign currency forward contracts | (64.1) | 87 |
Net asset (liability) exposure after foreign currency forward contracts | (748.9) | (290.1) |
Hypothetical change in pre-tax earnings (loss) | 74.8 | 29 |
Hypothetical change in net earnings (loss) | 63.1 | 25.9 |
Indian rupee | ||
Financial Risk Management | ||
Assets | 1,841.3 | 1,858.4 |
Liabilities | (220.9) | (190.5) |
Net asset (liability) exposure | 1,620.4 | 1,667.9 |
Notional long (short) amount of foreign currency forward contracts | 3.4 | |
Net asset (liability) exposure after foreign currency forward contracts | 1,620.4 | 1,671.3 |
Hypothetical change in pre-tax earnings (loss) | (162) | (167.1) |
Hypothetical change in net earnings (loss) | $ (160.1) | $ (164.9) |
Foreign currency risk | ||
Financial Risk Management | ||
Sensitivity analysis, percentage of appreciation the U.S. dollar against foreign currency | 10% |
Financial Risk Management - M_6
Financial Risk Management - Market Risk - Foreign currency effects on the consolidated statement of other comprehensive income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Canadian dollar | ||
Financial Risk Management | ||
Assets | $ 11,437.4 | $ 10,712.5 |
Liabilities | (6,583.4) | (6,117.3) |
Net asset exposure before hedge of net investment | 4,854 | 4,595.2 |
Hedge of net investment | (2,107.6) | (2,057.7) |
Net asset exposure after hedge of net investment | 2,746.4 | 2,537.5 |
Hypothetical change in pre-tax other comprehensive income (loss) | (274.6) | (253.7) |
Hypothetical change in other comprehensive income (loss) | (269.6) | (248.2) |
Euro Member Countries, Euro | ||
Financial Risk Management | ||
Assets | 9,393.8 | 7,937.1 |
Liabilities | (7,064.4) | (6,144.2) |
Net asset exposure before hedge of net investment | 2,329.4 | 1,792.9 |
Hedge of net investment | (821.5) | (792.2) |
Net asset exposure after hedge of net investment | 1,507.9 | 1,000.7 |
Hypothetical change in pre-tax other comprehensive income (loss) | (150.8) | (100.1) |
Hypothetical change in other comprehensive income (loss) | (112.2) | (72.5) |
British pound sterling | ||
Financial Risk Management | ||
Assets | 2,255.9 | 1,818.7 |
Liabilities | (1,502.3) | (1,379.7) |
Net asset exposure before hedge of net investment | 753.6 | 439 |
Net asset exposure after hedge of net investment | 753.6 | 439 |
Hypothetical change in pre-tax other comprehensive income (loss) | (75.4) | (43.9) |
Hypothetical change in other comprehensive income (loss) | (69.3) | (43) |
Indian rupee | ||
Financial Risk Management | ||
Assets | 4,110.8 | 3,697.6 |
Liabilities | (1,349.3) | (1,251.3) |
Net asset exposure before hedge of net investment | 2,761.5 | 2,446.3 |
Net asset exposure after hedge of net investment | 2,761.5 | 2,446.3 |
Hypothetical change in pre-tax other comprehensive income (loss) | (276.2) | (244.6) |
Hypothetical change in other comprehensive income (loss) | $ (260.9) | $ (228) |
Financial Risk Management - Cap
Financial Risk Management - Capital Management - Additional disclosures (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Financial Risk Management. | |||
Net earnings attributable to shareholders of Fairfax | $ 4,381.8 | $ 3,374.2 | |
Changes in capitalization | 319.3 | $ 1,244.5 | |
Payments of common and preferred share dividends | $ 294.9 | ||
Percentage of consolidated net debt/net total capital ratio | 22.40% | 24.10% | |
Percentage of consolidated total debt/total capital ratio | 26% | 27.30% | |
National Association of Insurance Commissioners | |||
Financial Risk Management. | |||
Capital and surplus, regulatory minimum requirement multiplier | 2 | 2 | |
Bermuda Monetary Authority | |||
Financial Risk Management. | |||
Target capital level percentage | 120% | ||
Office of the Superintendent of Financial Institutions | |||
Financial Risk Management. | |||
Minimum supervisory target | 150% | ||
Common shareholders' equity | |||
Financial Risk Management. | |||
Changes in capitalization | $ 67.2 | $ 107.9 | |
Treasury shares | |||
Financial Risk Management. | |||
Purchase of shares for use in share-based payment awards | 89.6 | ||
Allied World and Recipe | Common shareholders' equity | |||
Financial Risk Management. | |||
Changes in capitalization | $ (273.6) | ||
Odyssey Group, Crum & Forster, Zenith National, Allied World and U.S. Run-off excluding TIG Insurance | National Association of Insurance Commissioners | Minimum | |||
Financial Risk Management. | |||
Capital and surplus, actual multiplier | 3.2 | 3 | |
TIG Insurance | National Association of Insurance Commissioners | Minimum | |||
Financial Risk Management. | |||
Capital and surplus, actual multiplier | 2 | 2 | |
Northbridge | Office of the Superintendent of Financial Institutions | |||
Financial Risk Management. | |||
Weighted average MCT ratio | 255% | 241% | |
Brit | |||
Financial Risk Management. | |||
Subordinated debt and contingent funding in the form of letters of credit | $ 2,545.7 | $ 2,052.7 | |
Surplus over the management capital requirements | $ 1,050.4 | 709.5 | |
Gulf Insurance | |||
Financial Risk Management. | |||
Regulatory solvency capital | 998% | ||
Gulf Insurance | Unsecured senior notes | |||
Financial Risk Management. | |||
Borrowings, principal | $ 579.2 | ||
Ordinary shares | |||
Financial Risk Management. | |||
Equity in stock | $ 21,615 | $ 17,780.3 | $ 15,199.8 |
Financial Risk Management - C_5
Financial Risk Management - Capital Management - Financial measurements and ratios (Details) $ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Financial Risk Management | |||||||
Capitalization | $ 37,424.4 | $ 31,643.6 | |||||
Holding company cash and investments (net of derivative obligations) | 1,749.1 | 1,326.4 | |||||
Borrowings | 9,723.5 | 8,624.9 | $ 7,753 | ||||
Net debt | 7,974.4 | 7,298.5 | |||||
Non-controlling interests | 4,750.4 | 3,902.9 | $ 4,940.9 | ||||
Total equity | $ 27,700.9 | $ 23,018.7 | [1] | 21,476.2 | 21,476.2 | [1] | |
Net debt/total equity | 28.80% | 28.80% | 31.70% | ||||
Net debt/net total capital | 22.40% | 22.40% | 24.10% | ||||
Total debt/total capital | 26% | 26% | 27.30% | ||||
Interest coverage | 13.8 | 13.8 | 13.1 | ||||
Interest and preferred share dividend distribution coverage | 12.1 | 12.1 | 11.4 | ||||
Borrowings, At Fair Value | $ 9,490 | $ 8,049.8 | |||||
Common shares | |||||||
Financial Risk Management | |||||||
Equity in stock | 21,615 | 17,780.3 | 15,199.8 | ||||
Preferred shares | |||||||
Financial Risk Management | |||||||
Equity in stock | 1,335.5 | $ 1,456 | 1,335.5 | 1,335.5 | |||
Holding company | |||||||
Financial Risk Management | |||||||
Borrowings | 6,928.9 | 5,887.6 | 5,338.6 | ||||
Borrowings, At Fair Value | 6,811.2 | 5,454.6 | |||||
Insurance and reinsurance companies | |||||||
Financial Risk Management | |||||||
Borrowings | 895.6 | 733.4 | 790.7 | ||||
Borrowings, At Fair Value | 836.2 | 663.7 | |||||
Non-insurance companies | |||||||
Financial Risk Management | |||||||
Borrowings | 1,899 | 2,003.9 | $ 1,623.7 | $ 1,623.7 | |||
Borrowings, At Fair Value | 1,842.6 | 1,931.5 | |||||
Excluding consolidated non-insurance companies | |||||||
Financial Risk Management | |||||||
Holding company cash and investments (net of derivative obligations) | 1,749.1 | 1,326.4 | |||||
Borrowings | 7,824.5 | 6,621 | |||||
Net debt | 6,075.4 | 5,294.6 | |||||
Non-controlling interests | 3,115.8 | 2,212.5 | |||||
Total equity | $ 26,066.3 | $ 21,328.3 | |||||
Net debt/total equity | 23.30% | 23.30% | 24.80% | ||||
Net debt/net total capital | 18.90% | 18.90% | 19.90% | ||||
Total debt/total capital | 23.10% | 23.10% | 23.70% | ||||
Interest coverage | 18.1 | 18.1 | 16 | ||||
Interest and preferred share dividend distribution coverage | 15 | 15 | 13.4 | ||||
Excluding consolidated non-insurance companies | Common shares | |||||||
Financial Risk Management | |||||||
Equity in stock | $ 21,615 | $ 17,780.3 | |||||
Excluding consolidated non-insurance companies | Preferred shares | |||||||
Financial Risk Management | |||||||
Equity in stock | 1,335.5 | 1,335.5 | |||||
Excluding consolidated non-insurance companies | Holding company | |||||||
Financial Risk Management | |||||||
Borrowings | 6,928.9 | 5,887.6 | |||||
Excluding consolidated non-insurance companies | Insurance and reinsurance companies | |||||||
Financial Risk Management | |||||||
Borrowings | $ 895.6 | $ 733.4 | |||||
[1] See note 3 for details of transition to IFRS 17. |
Segmented Information - Sources
Segmented Information - Sources of earnings by reporting segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Segmented Information | |||
Insurance revenue | $ 26,934.8 | $ 24,703.5 | |
Insurance service expenses | (21,944.1) | (20,467.3) | |
Net insurance result | 4,990.7 | 4,236.2 | |
Cost of reinsurance | (4,977.4) | (4,509.2) | |
Recoveries of insurance service expenses | 3,943.7 | 3,274.4 | |
Net reinsurance result | (1,033.7) | (1,234.8) | |
Insurance service result | 3,956.4 | 3,000.9 | |
Other insurance operating expenses | (966.4) | (656.4) | |
Interest and dividends | 1,681.6 | 828.3 | |
Share of profit of associates | 990 | 911.9 | |
Other | |||
Non-insurance revenue | 6,614.5 | 5,581.6 | |
Non-insurance expenses | (6,568.7) | (5,520.9) | |
Operating income (loss) | 5,707.4 | 4,145.4 | |
Net finance income (expense) from insurance contracts and reinsurance contract assets held | (1,605.6) | 1,617.3 | |
Net gains (losses) on investments | 1,949.5 | (1,573.2) | |
Gain (loss) on deconsolidation of insurance subsidiary | 549.8 | 1,219.7 | |
Interest expense | (510) | (452.8) | |
Corporate overhead and other | (430.2) | (296.7) | |
Earnings before income taxes | 5,908.3 | 4,904.2 | |
Provision for income taxes | (813.4) | (1,092.5) | |
Net earnings | 5,094.9 | 3,811.7 | [1] |
Attributable to: | |||
Shareholders of Fairfax | 4,381.8 | 3,374.2 | |
Non-controlling interests | 713.1 | 437.5 | |
Net earnings | 5,094.9 | 3,811.7 | [1] |
Property and Casualty Insurance and Reinsurance | |||
Segmented Information | |||
Insurance revenue | 26,799.3 | 24,563.7 | |
Insurance service result | 4,135.9 | 3,080.9 | |
Other insurance operating expenses | (822.1) | (701.8) | |
Interest and dividends | 1,654.7 | 746.1 | |
Share of profit of associates | 761.6 | 721.5 | |
Other | |||
Operating income (loss) | 5,730.1 | 3,846.7 | |
Property and Casualty Insurance and Reinsurance | North American Insurers | |||
Segmented Information | |||
Insurance revenue | 8,077.7 | 7,214.7 | |
Insurance service result | 977.1 | 964 | |
Other insurance operating expenses | (280.8) | (262.3) | |
Interest and dividends | 443.3 | 234 | |
Share of profit of associates | 165.1 | 239.8 | |
Other | |||
Operating income (loss) | 1,304.7 | 1,175.5 | |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | |||
Segmented Information | |||
Insurance revenue | 15,480.2 | 14,693.4 | |
Insurance service result | 2,828 | 1,886.7 | |
Other insurance operating expenses | (360.4) | (293.9) | |
Interest and dividends | 1,031.1 | 413.3 | |
Share of profit of associates | 469.2 | 429.3 | |
Other | |||
Operating income (loss) | 3,967.9 | 2,435.4 | |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | |||
Segmented Information | |||
Insurance revenue | 3,241.4 | 2,655.6 | |
Insurance service result | 330.8 | 230.2 | |
Other insurance operating expenses | (180.9) | (145.6) | |
Interest and dividends | 180.3 | 98.8 | |
Share of profit of associates | 127.3 | 52.4 | |
Other | |||
Operating income (loss) | 457.5 | 235.8 | |
Life insurance and Run-off | |||
Segmented Information | |||
Insurance revenue | 135.5 | 139.8 | |
Insurance service result | (179.5) | (80) | |
Other insurance operating expenses | (144.3) | 45.4 | |
Interest and dividends | 103 | 55.6 | |
Share of profit of associates | 76.2 | 56.4 | |
Other | |||
Operating income (loss) | (144.6) | 77.4 | |
Non-insurance companies | |||
Segmented Information | |||
Interest and dividends | (76.1) | 26.6 | |
Share of profit of associates | 152.2 | 134 | |
Other | |||
Non-insurance revenue | 6,614.5 | 5,581.6 | |
Non-insurance expenses | (6,568.7) | (5,520.9) | |
Operating income (loss) | 121.9 | 221.3 | |
Attributable to: | |||
Non-controlling interests | 203.4 | 136.8 | |
Operating segments | |||
Segmented Information | |||
Insurance revenue | 27,341.2 | 25,042.7 | |
Other | |||
Corporate overhead and other | (182.8) | (52.2) | |
Operating segments | Property and Casualty Insurance and Reinsurance | |||
Segmented Information | |||
Insurance revenue | 27,191.3 | 24,902.9 | |
Operating segments | Property and Casualty Insurance and Reinsurance | North American Insurers | |||
Segmented Information | |||
Insurance revenue | 8,137.2 | 7,260.6 | |
Operating segments | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | |||
Segmented Information | |||
Insurance revenue | 15,600.3 | 14,790.2 | |
Operating segments | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | |||
Segmented Information | |||
Insurance revenue | 3,453.8 | 2,852.1 | |
Operating segments | Life insurance and Run-off | |||
Segmented Information | |||
Insurance revenue | 149.9 | 139.8 | |
Operating segments | Non-insurance companies | |||
Segmented Information | |||
Interest and dividends | (76.1) | 26.6 | |
Other | |||
Non-insurance revenue | 6,614.5 | 5,581.6 | |
Non-insurance expenses | (6,568.7) | (5,520.9) | |
Operating income (loss) | 121.9 | 221.3 | |
Intercompany insurance revenue | |||
Segmented Information | |||
Insurance revenue | (406.4) | (339.2) | |
Intercompany insurance revenue | Property and Casualty Insurance and Reinsurance | |||
Segmented Information | |||
Insurance revenue | (392) | (339.2) | |
Intercompany insurance revenue | Property and Casualty Insurance and Reinsurance | North American Insurers | |||
Segmented Information | |||
Insurance revenue | (59.5) | (45.9) | |
Intercompany insurance revenue | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | |||
Segmented Information | |||
Insurance revenue | (120.1) | (96.8) | |
Intercompany insurance revenue | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | |||
Segmented Information | |||
Insurance revenue | (212.4) | $ (196.5) | |
Intercompany insurance revenue | Life insurance and Run-off | |||
Segmented Information | |||
Insurance revenue | $ (14.4) | ||
[1] See note 3 for details of transition to IFRS 17. |
Segmented Information (Details)
Segmented Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segmented Information | ||
Corporate and other expenses | $ (430.2) | $ (296.7) |
Share of profit of associates | (1,022.2) | (1,022.4) |
Operating segments | ||
Segmented Information | ||
Corporate and other expenses | (182.8) | (52.2) |
Intercompany insurance revenue | ||
Segmented Information | ||
Interest and dividends | 31 | (9.6) |
Share of profit of associates | (32.2) | (110.5) |
Investment management and administration fee income and other | $ (246.2) | $ (124.4) |
Segmented Information - Investm
Segmented Information - Investments In Associates, Additions to goodwill, Segment assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | |
Segmented Information | ||||
Investments in associates | $ 8,037.3 | $ 7,435.7 | $ 6,098.1 | |
Additions to goodwill | 355.8 | 152 | ||
Segment assets | 91,985.1 | 78,818.5 | $ 76,124.4 | |
Segment liabilities | 64,284.2 | 55,799.8 | $ 54,648.2 | |
Non-insurance companies | ||||
Segmented Information | ||||
Investments in associates | 7,668.6 | 6,786.6 | ||
Holding company and eliminations and adjustments | ||||
Segmented Information | ||||
Investments in associates | 827.6 | 1,006.1 | ||
Segment assets | (1,101.1) | (1,427.2) | ||
Segment liabilities | 6,567.3 | 5,062.4 | ||
Operating segments | Property and Casualty Insurance and Reinsurance | ||||
Segmented Information | ||||
Investments in associates | 5,319.6 | 4,703 | ||
Additions to goodwill | 343.4 | |||
Segment assets | 77,494.7 | 65,705.8 | ||
Segment liabilities | 47,256.3 | 40,989.2 | ||
Operating segments | Property and Casualty Insurance and Reinsurance | North American Insurers | ||||
Segmented Information | ||||
Investments in associates | 1,136.3 | 1,217.7 | ||
Segment assets | 18,133.1 | 16,323.1 | ||
Segment liabilities | 10,831 | 9,807.4 | ||
Operating segments | Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||||
Segmented Information | ||||
Investments in associates | 3,337.7 | 2,893.3 | ||
Segment assets | 46,713.3 | 41,720.6 | ||
Segment liabilities | 30,233.2 | 27,525.2 | ||
Operating segments | Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||||
Segmented Information | ||||
Investments in associates | 845.6 | 592 | ||
Additions to goodwill | 343.4 | |||
Segment assets | 12,648.3 | 7,662.1 | ||
Segment liabilities | 6,192.1 | 3,656.6 | ||
Operating segments | Life insurance and Run-off | ||||
Segmented Information | ||||
Investments in associates | 429.5 | 348.1 | ||
Additions to goodwill | 0.4 | |||
Segment assets | 6,541.9 | 5,928.5 | ||
Segment liabilities | 5,448.1 | 4,927.6 | ||
Operating segments | Non-insurance companies | ||||
Segmented Information | ||||
Investments in associates | 1,460.6 | 1,378.5 | ||
Additions to goodwill | 12.4 | 151.6 | ||
Segment assets | 9,049.6 | 8,611.4 | ||
Segment liabilities | $ 5,012.5 | $ 4,820.6 |
Segmented Information - Product
Segmented Information - Product Line (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segmented Information | ||
Insurance revenue | $ 26,934.8 | $ 24,703.5 |
Distribution of insurance revenue | 100% | 100% |
Property | ||
Segmented Information | ||
Insurance revenue | $ 9,743.2 | $ 8,486.5 |
Distribution of insurance revenue | 36.20% | 34.40% |
Casualty | ||
Segmented Information | ||
Insurance revenue | $ 14,948.4 | $ 14,256.4 |
Distribution of insurance revenue | 55.50% | 57.70% |
Specialty | ||
Segmented Information | ||
Insurance revenue | $ 2,243.2 | $ 1,960.6 |
Distribution of insurance revenue | 8.30% | 7.90% |
Property and Casualty Insurance and Reinsurance | ||
Segmented Information | ||
Insurance revenue | $ 26,799.3 | $ 24,563.7 |
Property and Casualty Insurance and Reinsurance | Property | ||
Segmented Information | ||
Insurance revenue | 9,743.2 | 8,486.5 |
Property and Casualty Insurance and Reinsurance | Casualty | ||
Segmented Information | ||
Insurance revenue | 14,935.2 | 14,235 |
Property and Casualty Insurance and Reinsurance | Specialty | ||
Segmented Information | ||
Insurance revenue | 2,120.9 | 1,842.2 |
Property and Casualty Insurance and Reinsurance | North American Insurers | ||
Segmented Information | ||
Insurance revenue | 8,077.7 | 7,214.7 |
Property and Casualty Insurance and Reinsurance | North American Insurers | Property | ||
Segmented Information | ||
Insurance revenue | 2,001.5 | 1,712.8 |
Property and Casualty Insurance and Reinsurance | North American Insurers | Casualty | ||
Segmented Information | ||
Insurance revenue | 5,634.6 | 5,078.7 |
Property and Casualty Insurance and Reinsurance | North American Insurers | Specialty | ||
Segmented Information | ||
Insurance revenue | 441.6 | 423.2 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||
Segmented Information | ||
Insurance revenue | 15,480.2 | 14,693.4 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Property | ||
Segmented Information | ||
Insurance revenue | 5,848.2 | 5,239.6 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Casualty | ||
Segmented Information | ||
Insurance revenue | 8,561.7 | 8,516.3 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Specialty | ||
Segmented Information | ||
Insurance revenue | 1,070.3 | 937.5 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||
Segmented Information | ||
Insurance revenue | 3,241.4 | 2,655.6 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | Property | ||
Segmented Information | ||
Insurance revenue | 1,893.5 | 1,534.1 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | Casualty | ||
Segmented Information | ||
Insurance revenue | 738.9 | 640 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | Specialty | ||
Segmented Information | ||
Insurance revenue | 609 | 481.5 |
Life insurance and Run-off | ||
Segmented Information | ||
Insurance revenue | 135.5 | 139.8 |
Life insurance and Run-off | Casualty | ||
Segmented Information | ||
Insurance revenue | 13.2 | 21.4 |
Life insurance and Run-off | Specialty | ||
Segmented Information | ||
Insurance revenue | $ 122.3 | $ 118.4 |
Segmented Information - Geograp
Segmented Information - Geographic Region (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segmented Information | ||
Insurance revenue | $ 26,934.8 | $ 24,703.5 |
Distribution of insurance revenue | 100% | 100% |
Canada | ||
Segmented Information | ||
Insurance revenue | $ 2,772.7 | $ 2,644.2 |
Distribution of insurance revenue | 10.30% | 10.70% |
United States | ||
Segmented Information | ||
Insurance revenue | $ 16,922.7 | $ 15,931.2 |
Distribution of insurance revenue | 62.80% | 64.50% |
Asia | ||
Segmented Information | ||
Insurance revenue | $ 1,958.6 | $ 1,586.5 |
Distribution of insurance revenue | 7.30% | 6.40% |
International | ||
Segmented Information | ||
Insurance revenue | $ 5,280.8 | $ 4,541.6 |
Distribution of insurance revenue | 19.60% | 18.40% |
Property and Casualty Insurance and Reinsurance | ||
Segmented Information | ||
Insurance revenue | $ 26,799.3 | $ 24,563.7 |
Property and Casualty Insurance and Reinsurance | Canada | ||
Segmented Information | ||
Insurance revenue | 2,772.7 | 2,644.2 |
Property and Casualty Insurance and Reinsurance | United States | ||
Segmented Information | ||
Insurance revenue | 16,909.5 | 15,909.8 |
Property and Casualty Insurance and Reinsurance | Asia | ||
Segmented Information | ||
Insurance revenue | 1,958.6 | 1,586.5 |
Property and Casualty Insurance and Reinsurance | International | ||
Segmented Information | ||
Insurance revenue | 5,158.5 | 4,423.2 |
Property and Casualty Insurance and Reinsurance | North American Insurers | ||
Segmented Information | ||
Insurance revenue | 8,077.7 | 7,214.7 |
Property and Casualty Insurance and Reinsurance | North American Insurers | Canada | ||
Segmented Information | ||
Insurance revenue | 2,287.1 | 2,162 |
Property and Casualty Insurance and Reinsurance | North American Insurers | United States | ||
Segmented Information | ||
Insurance revenue | 5,760.3 | 5,025.2 |
Property and Casualty Insurance and Reinsurance | North American Insurers | Asia | ||
Segmented Information | ||
Insurance revenue | 1.4 | 1.8 |
Property and Casualty Insurance and Reinsurance | North American Insurers | International | ||
Segmented Information | ||
Insurance revenue | 28.9 | 25.7 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | ||
Segmented Information | ||
Insurance revenue | 15,480.2 | 14,693.4 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Canada | ||
Segmented Information | ||
Insurance revenue | 485.4 | 482.2 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | United States | ||
Segmented Information | ||
Insurance revenue | 11,148.1 | 10,879.8 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Asia | ||
Segmented Information | ||
Insurance revenue | 963.2 | 881.3 |
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | International | ||
Segmented Information | ||
Insurance revenue | 2,883.5 | 2,450.1 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | ||
Segmented Information | ||
Insurance revenue | 3,241.4 | 2,655.6 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | Canada | ||
Segmented Information | ||
Insurance revenue | 0.2 | |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | United States | ||
Segmented Information | ||
Insurance revenue | 1.1 | 4.8 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | Asia | ||
Segmented Information | ||
Insurance revenue | 994 | 703.4 |
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | International | ||
Segmented Information | ||
Insurance revenue | 2,246.1 | 1,947.4 |
Life insurance and Run-off | ||
Segmented Information | ||
Insurance revenue | 135.5 | 139.8 |
Life insurance and Run-off | United States | ||
Segmented Information | ||
Insurance revenue | 13.2 | 21.4 |
Life insurance and Run-off | International | ||
Segmented Information | ||
Insurance revenue | $ 122.3 | $ 118.4 |
Segmented Information - Non-ins
Segmented Information - Non-insurance companies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segmented Information | ||
Revenue | $ 6,614.5 | $ 5,581.6 |
Expenses | (6,568.7) | (5,520.9) |
Interest and dividends | 1,681.6 | 828.3 |
Share of profit (loss) of associates | 1,022.2 | 1,022.4 |
Operating income (loss) | 5,707.4 | 4,145.4 |
Non-insurance companies | ||
Segmented Information | ||
Revenue | 6,614.5 | 5,581.6 |
Expenses | (6,568.7) | (5,520.9) |
Interest and dividends | (76.1) | 26.6 |
Share of profit (loss) of associates | 941.5 | 984.3 |
Operating income (loss) | 121.9 | 221.3 |
Non-insurance companies | Other | Farmers Edge | ||
Segmented Information | ||
Impairment loss recognised in profit or loss, goodwill | 63.5 | 133.4 |
Operating segments | Non-insurance companies | ||
Segmented Information | ||
Revenue | 6,614.5 | 5,581.6 |
Expenses | (6,568.7) | (5,520.9) |
Pre-tax income (loss) before interest expense and other | 45.8 | 60.7 |
Interest and dividends | (76.1) | 26.6 |
Share of profit (loss) of associates | 152.2 | 134 |
Operating income (loss) | 121.9 | 221.3 |
Operating segments | Non-insurance companies | Restaurants and retail | ||
Segmented Information | ||
Revenue | 1,772.3 | 1,710.3 |
Expenses | (1,690.7) | (1,582.2) |
Pre-tax income (loss) before interest expense and other | 81.6 | 128.1 |
Interest and dividends | 9.9 | 9.9 |
Share of profit (loss) of associates | (0.1) | |
Operating income (loss) | 91.5 | 137.9 |
Operating segments | Non-insurance companies | Fairfax India | ||
Segmented Information | ||
Revenue | 263.3 | 216.7 |
Expenses | (251.4) | (208.1) |
Pre-tax income (loss) before interest expense and other | 11.9 | 8.6 |
Interest and dividends | (87.4) | 21.4 |
Share of profit (loss) of associates | 151.1 | 132 |
Operating income (loss) | 75.6 | 162 |
Operating segments | Non-insurance companies | Thomas Cook India | ||
Segmented Information | ||
Revenue | 941.6 | 611 |
Expenses | (906.5) | (600.8) |
Pre-tax income (loss) before interest expense and other | 35.1 | 10.2 |
Share of profit (loss) of associates | (0.1) | 0.3 |
Operating income (loss) | 35 | 10.5 |
Operating segments | Non-insurance companies | Other | ||
Segmented Information | ||
Revenue | 3,637.3 | 3,043.6 |
Expenses | (3,720.1) | (3,129.8) |
Pre-tax income (loss) before interest expense and other | (82.8) | (86.2) |
Interest and dividends | 1.4 | (4.7) |
Share of profit (loss) of associates | 1.2 | 1.8 |
Operating income (loss) | $ (80.2) | $ (89.1) |
Segmented Information - Segment
Segmented Information - Segmented Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | ||
Assets | ||||||
Holding company cash and investments | $ 1,781.6 | $ 1,345.8 | $ 1,478.3 | |||
Insurance contract receivables | 926.1 | 648.9 | 650.1 | |||
Portfolio investments | 63,422.1 | 54,324.7 | 51,691.5 | |||
Reinsurance contract assets held | 10,887.7 | 9,691.5 | 9,893.1 | |||
Deferred income tax assets | 301.1 | 137.3 | ||||
Goodwill and intangible assets | 6,376.3 | 5,689 | 5,928.2 | $ 5,928.2 | ||
Other assets | 8,290.2 | 6,981.3 | 6,034.1 | |||
Total assets | 91,985.1 | 78,818.5 | 76,124.4 | |||
Liabilities | ||||||
Accounts payable and accrued liabilities | 5,487.2 | 4,806.6 | 4,587.6 | |||
Derivative obligations | 444.9 | 191 | 152.9 | |||
Deferred income tax liabilities | 1,250.3 | 868 | 586.5 | |||
Insurance Contract Payables | 1,206.9 | 1,402.7 | 1,826 | |||
Insurance contract liabilities | 46,171.4 | 39,906.6 | 39,742.2 | |||
Borrowings | 9,723.5 | 8,624.9 | 7,753 | |||
Total liabilities | 64,284.2 | 55,799.8 | 54,648.2 | |||
Equity | ||||||
Shareholders' equity attributable to shareholders of Fairfax | 22,950.5 | 19,115.8 | 16,535.3 | |||
Non-controlling interests | 4,750.4 | 3,902.9 | 4,940.9 | |||
Total equity | 27,700.9 | 23,018.7 | [1] | 21,476.2 | 21,476.2 | [1] |
Total liabilities and total equity | 91,985.1 | 78,818.5 | 76,124.4 | |||
Holding company and insurance and reinsurance companies | ||||||
Liabilities | ||||||
Borrowings | 7,824.5 | 6,621 | 6,129.3 | |||
Non-insurance companies | ||||||
Liabilities | ||||||
Borrowings | 1,899 | 2,003.9 | $ 1,623.7 | $ 1,623.7 | ||
Non-insurance companies | ||||||
Equity | ||||||
Non-controlling interests | 1,634.6 | 1,690.4 | ||||
Operating segments | Property and Casualty Insurance and Reinsurance | ||||||
Assets | ||||||
Holding company cash and investments | 270.9 | 316.6 | ||||
Insurance contract receivables | 915.3 | 636.2 | ||||
Portfolio investments | 58,180 | 49,038.8 | ||||
Reinsurance contract assets held | 11,373.4 | 10,310.9 | ||||
Deferred income tax assets | 17.8 | (40.6) | ||||
Goodwill and intangible assets | 4,245.7 | 3,396.8 | ||||
Due from affiliates | 250.8 | 206.3 | ||||
Other assets | 2,059.8 | 1,673.7 | ||||
Investments in affiliates | 181 | 167.1 | ||||
Total assets | 77,494.7 | 65,705.8 | ||||
Liabilities | ||||||
Accounts payable and accrued liabilities | 2,083.7 | 1,901.8 | ||||
Derivative obligations | 351.4 | 113.5 | ||||
Deferred income tax liabilities | 672.5 | 516.7 | ||||
Insurance Contract Payables | 553.5 | 785.4 | ||||
Insurance contract liabilities | 42,649.9 | 36,921.3 | ||||
Due to affiliates | 49.7 | 17.1 | ||||
Total liabilities | 47,256.3 | 40,989.2 | ||||
Equity | ||||||
Shareholders' equity attributable to shareholders of Fairfax | 27,134.9 | 22,504.1 | ||||
Non-controlling interests | 3,103.5 | 2,212.5 | ||||
Total equity | 30,238.4 | 24,716.6 | ||||
Total liabilities and total equity | 77,494.7 | 65,705.8 | ||||
Operating segments | Property and Casualty Insurance and Reinsurance | Holding company and insurance and reinsurance companies | ||||||
Liabilities | ||||||
Borrowings | 895.6 | 733.4 | ||||
Operating segments | Life insurance and Run-off | ||||||
Assets | ||||||
Insurance contract receivables | 10.8 | 12.7 | ||||
Portfolio investments | 4,318 | 4,275.4 | ||||
Reinsurance contract assets held | 454.3 | 413.4 | ||||
Deferred income tax assets | 1.3 | (6.4) | ||||
Goodwill and intangible assets | 8.4 | 7.5 | ||||
Due from affiliates | 338.8 | 364.1 | ||||
Other assets | 1,394.8 | 832.5 | ||||
Investments in affiliates | 15.5 | 29.3 | ||||
Total assets | 6,541.9 | 5,928.5 | ||||
Liabilities | ||||||
Accounts payable and accrued liabilities | 257.6 | 257.6 | ||||
Deferred income tax liabilities | 69.6 | 43.2 | ||||
Insurance Contract Payables | 653.4 | 617.3 | ||||
Insurance contract liabilities | 4,466.7 | 4,009.2 | ||||
Due to affiliates | 0.8 | 0.3 | ||||
Total liabilities | 5,448.1 | 4,927.6 | ||||
Equity | ||||||
Shareholders' equity attributable to shareholders of Fairfax | 1,081.5 | 1,000.9 | ||||
Non-controlling interests | 12.3 | |||||
Total equity | 1,093.8 | 1,000.9 | ||||
Total liabilities and total equity | 6,541.9 | 5,928.5 | ||||
Operating segments | Non-insurance companies | ||||||
Assets | ||||||
Portfolio investments | 2,496.5 | 2,119.3 | ||||
Deferred income tax assets | 54.1 | 54.5 | ||||
Goodwill and intangible assets | 2,121.6 | 2,284.4 | ||||
Other assets | 4,377.4 | 4,153.2 | ||||
Total assets | 9,049.6 | 8,611.4 | ||||
Liabilities | ||||||
Accounts payable and accrued liabilities | 2,625.6 | 2,430.7 | ||||
Derivative obligations | 61 | 58.2 | ||||
Deferred income tax liabilities | 274.2 | 252.4 | ||||
Due to affiliates | 159.9 | 82.4 | ||||
Total liabilities | 5,012.5 | 4,820.6 | ||||
Equity | ||||||
Shareholders' equity attributable to shareholders of Fairfax | 2,402.5 | 2,100.4 | ||||
Non-controlling interests | 1,634.6 | 1,690.4 | ||||
Total equity | 4,037.1 | 3,790.8 | ||||
Total liabilities and total equity | 9,049.6 | 8,611.4 | ||||
Operating segments | Non-insurance companies | Non-insurance companies | ||||||
Liabilities | ||||||
Borrowings | 1,891.8 | 1,996.9 | ||||
Corporate and eliminations | ||||||
Assets | ||||||
Holding company cash and investments | 1,510.7 | 1,029.2 | ||||
Portfolio investments | (1,572.4) | (1,108.8) | ||||
Reinsurance contract assets held | (940) | (1,032.8) | ||||
Deferred income tax assets | 227.9 | 129.8 | ||||
Goodwill and intangible assets | 0.6 | 0.3 | ||||
Due from affiliates | (589.6) | (570.4) | ||||
Other assets | 458.2 | 321.9 | ||||
Investments in affiliates | (196.5) | (196.4) | ||||
Total assets | (1,101.1) | (1,427.2) | ||||
Liabilities | ||||||
Accounts payable and accrued liabilities | 520.3 | 216.5 | ||||
Derivative obligations | 32.5 | 19.3 | ||||
Deferred income tax liabilities | 234 | 55.7 | ||||
Insurance contract liabilities | (945.2) | (1,023.9) | ||||
Due to affiliates | (210.4) | (99.8) | ||||
Total liabilities | 6,567.3 | 5,062.4 | ||||
Equity | ||||||
Shareholders' equity attributable to shareholders of Fairfax | (7,668.4) | (6,489.6) | ||||
Total equity | (7,668.4) | (6,489.6) | ||||
Total liabilities and total equity | (1,101.1) | (1,427.2) | ||||
Corporate and eliminations | Holding company and insurance and reinsurance companies | ||||||
Liabilities | ||||||
Borrowings | 6,928.9 | 5,887.6 | ||||
Corporate and eliminations | Non-insurance companies | ||||||
Liabilities | ||||||
Borrowings | $ 7.2 | $ 7 | ||||
[1] See note 3 for details of transition to IFRS 17. |
Expenses (Details)
Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Expenses | ||
Losses on claims, net | $ 11,992.5 | $ 11,629.7 |
Premium taxes | 276 | 252.7 |
Commissions | 3,582.7 | 3,234.5 |
Cost of sales | 4,059.6 | 3,349.4 |
Compensation expense | 3,342.9 | 3,129.4 |
Administrative expense and other | 2,712 | 2,071.2 |
Expenses | 25,965.7 | 23,666.9 |
As presented in the consolidated statement of earnings: | ||
Insurance service expenses | 21,944.1 | 20,467.3 |
Recoveries of insurance service expenses | (3,943.7) | (3,274.4) |
Other insurance operating expenses and Corporate and other expenses | 1,396.6 | 953.1 |
Non-insurance expenses | 6,568.7 | 5,520.9 |
Expenses | 25,965.7 | 23,666.9 |
Insurance and reinsurance companies | ||
Expenses | ||
Losses on claims, net | 11,992.5 | 11,629.7 |
Premium taxes | 276 | 252.7 |
Commissions | 3,582.7 | 3,234.5 |
Compensation expense | 2,222.5 | 2,105.6 |
Administrative expense and other | 1,323.3 | 923.5 |
Expenses | 19,397 | 18,146 |
As presented in the consolidated statement of earnings: | ||
Insurance service expenses | 21,944.1 | 20,467.3 |
Recoveries of insurance service expenses | (3,943.7) | (3,274.4) |
Other insurance operating expenses and Corporate and other expenses | 1,396.6 | 953.1 |
Expenses | 19,397 | 18,146 |
Insurance and reinsurance companies | Directly attributable expenses | ||
Expenses | ||
Losses on claims, net | 11,992.5 | 11,629.7 |
Premium taxes | 276 | 252.7 |
Commissions | 3,582.7 | 3,234.5 |
Compensation expense | 1,449.8 | 1,448.9 |
Administrative expense and other | 699.4 | 627.1 |
Expenses | 18,000.4 | 17,192.9 |
As presented in the consolidated statement of earnings: | ||
Insurance service expenses | 21,944.1 | 20,467.3 |
Recoveries of insurance service expenses | (3,943.7) | (3,274.4) |
Expenses | 18,000.4 | 17,192.9 |
Insurance and reinsurance companies | Directly attributable expenses | Insurance acquisition cash flows | ||
Expenses | ||
Premium taxes | 276 | 252.7 |
Commissions | 3,582.7 | 3,234.5 |
Compensation expense | 586.3 | 605.7 |
Administrative expense and other | 297.2 | 273.6 |
Expenses | 4,742.2 | 4,366.5 |
As presented in the consolidated statement of earnings: | ||
Insurance service expenses | 4,742.2 | 4,366.5 |
Expenses | 4,742.2 | 4,366.5 |
Insurance and reinsurance companies | Directly attributable expenses | Other expenses | ||
Expenses | ||
Losses on claims, net | 11,992.5 | 11,629.7 |
Compensation expense | 863.5 | 843.2 |
Administrative expense and other | 402.2 | 353.5 |
Expenses | 13,258.2 | 12,826.4 |
As presented in the consolidated statement of earnings: | ||
Insurance service expenses | 17,201.9 | 16,100.8 |
Recoveries of insurance service expenses | (3,943.7) | (3,274.4) |
Expenses | 13,258.2 | 12,826.4 |
Insurance and reinsurance companies | Non-directly attributable expenses | Other operating expenses | ||
Expenses | ||
Compensation expense | 772.7 | 656.7 |
Administrative expense and other | 623.9 | 296.4 |
Expenses | 1,396.6 | 953.1 |
As presented in the consolidated statement of earnings: | ||
Other insurance operating expenses and Corporate and other expenses | 1,396.6 | 953.1 |
Expenses | 1,396.6 | 953.1 |
Non-insurance companies | ||
Expenses | ||
Cost of sales | 4,059.6 | 3,349.4 |
Compensation expense | 1,120.4 | 1,023.8 |
Administrative expense and other | 1,388.7 | 1,147.7 |
Expenses | 6,568.7 | 5,520.9 |
As presented in the consolidated statement of earnings: | ||
Non-insurance expenses | 6,568.7 | 5,520.9 |
Expenses | $ 6,568.7 | $ 5,520.9 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information - Cash and cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Unrestricted cash and cash equivalents included in the consolidated statement of cash flows | |||
Cash | $ 2,433.7 | $ 3,350.5 | |
Cash equivalents | 2,687.7 | 2,769.1 | |
Total cash and cash equivalents | 5,121.4 | 6,119.6 | $ 11,685.4 |
Restricted cash and cash equivalents | |||
Restricted cash | 188.3 | 501.6 | |
Restricted cash equivalents | 454 | 359.6 | |
Total restricted cash and restricted cash equivalents | 642.3 | 861.2 | |
Cash and cash equivalents included on the consolidated balance sheet | |||
Cash and restricted cash | 2,622 | 3,852.1 | |
Cash equivalents and restricted cash equivalents | 3,141.7 | 3,128.7 | |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 5,763.7 | 6,980.8 | |
Holding company cash and investments | |||
Unrestricted cash and cash equivalents included in the consolidated statement of cash flows | |||
Cash | 81.4 | 72.7 | |
Cash equivalents | 325.4 | 479.4 | |
Total cash and cash equivalents | 406.8 | 552.1 | |
Cash and cash equivalents included on the consolidated balance sheet | |||
Cash and restricted cash | 81.4 | 72.7 | |
Cash equivalents and restricted cash equivalents | 325.4 | 479.4 | |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 406.8 | 552.1 | |
Holding company assets pledged for derivative obligations | |||
Unrestricted cash and cash equivalents included in the consolidated statement of cash flows | |||
Cash equivalents | 2.5 | 40.6 | |
Total cash and cash equivalents | 2.5 | 40.6 | |
Cash and cash equivalents included on the consolidated balance sheet | |||
Cash equivalents and restricted cash equivalents | 2.5 | 40.6 | |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 2.5 | 40.6 | |
Subsidiary cash and short term investments | |||
Unrestricted cash and cash equivalents included in the consolidated statement of cash flows | |||
Cash | 2,172.9 | 3,243.3 | |
Cash equivalents | 2,347.3 | 2,105.6 | |
Total cash and cash equivalents | 4,520.2 | 5,348.9 | |
Restricted cash and cash equivalents | |||
Restricted cash | 188.1 | 500.8 | |
Restricted cash equivalents | 448.9 | 353.6 | |
Total restricted cash and restricted cash equivalents | 637 | 854.4 | |
Cash and cash equivalents included on the consolidated balance sheet | |||
Cash and restricted cash | 2,361 | 3,744.1 | |
Cash equivalents and restricted cash equivalents | 2,796.2 | 2,459.2 | |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 5,157.2 | 6,203.3 | |
Fairfax India | |||
Unrestricted cash and cash equivalents included in the consolidated statement of cash flows | |||
Cash | 179.4 | 34.5 | |
Cash equivalents | 12.5 | 143.5 | |
Total cash and cash equivalents | 191.9 | 178 | |
Restricted cash and cash equivalents | |||
Restricted cash | 0.2 | 0.8 | |
Restricted cash equivalents | 5.1 | 6 | |
Total restricted cash and restricted cash equivalents | 5.3 | 6.8 | |
Cash and cash equivalents included on the consolidated balance sheet | |||
Cash and restricted cash | 179.6 | 35.3 | |
Cash equivalents and restricted cash equivalents | 17.6 | 149.5 | |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ 197.2 | $ 184.8 |
Supplementary Cash Flow Infor_4
Supplementary Cash Flow Information - Additional disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net (purchases) sales of investments classified at FVTPL | ||
Short term investments | $ 1,592.6 | $ 6,352.5 |
Bonds | (5,910.6) | (16,016.2) |
Preferred stocks | (135.1) | (293.2) |
Common stocks | (1,000.6) | (63.6) |
Net derivatives and other invested assets | (45.4) | 380.3 |
Net (purchases) sales of securities classified at FVTPL | (5,499.1) | (9,640.2) |
Changes in operating assets and liabilities | ||
Net decrease in restricted cash and cash equivalents | 250.4 | 393.7 |
Insurance contract receivables | (282.4) | (1.6) |
Reinsurance contract assets held | (723) | 45.7 |
Insurance contract payables | (301.5) | (270.5) |
Insurance contract liabilities | 4,286.1 | 994.3 |
Other receivables | (270.9) | (348) |
Accounts payable and accrued liabilities | 541.2 | 326.1 |
Other | (423.6) | (337.2) |
Changes in operating assets and liabilities | (3,076.3) | (802.5) |
Net interest and dividends received | ||
Interest and dividends received | 1,595.1 | 1,030.8 |
Interest paid on borrowings | (428.1) | (360.5) |
Interest paid on lease liabilities | (54.8) | (48.1) |
Net interest and dividends received | 1,112.2 | 622.2 |
Net income taxes paid | $ (713.9) | $ (416.4) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Key management team | ||
Related Party Transactions | ||
Salaries and other short-term employee benefits | $ 14.5 | $ 10.2 |
Share-based payments | 7.3 | 5.7 |
Related party compensation | 21.8 | 15.9 |
Board of Directors | ||
Related Party Transactions | ||
Retainers and fees | 1.4 | 1.7 |
Share-based payments | 0.2 | 0.3 |
Related party compensation | 1.6 | $ 2 |
Fairfax India | ||
Related Party Transactions | ||
Performance fee receivable | $ 110.2 |
Subsidiaries (Details)
Subsidiaries (Details) | 12 Months Ended | |||
Jun. 23, 2023 | Sep. 27, 2022 | Sep. 26, 2022 | Dec. 31, 2023 | |
Allied World Assurance Company Holdings, Ltd (Allied World) | ||||
Subsidiaries | ||||
Equity ownership percentage | 83.40% | 82.90% | 70.90% | 83.40% |
U.S. Run-off | TIG Insurance Company (TIG Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Gulf Insurance Group K.S.C.P. (Gulf Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 90% | |||
Property and Casualty Insurance and Reinsurance | North American Insurers | Northbridge Financial Corporation (Northbridge) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | North American Insurers | Crum & Forster Holdings Corp. (Crum & Forster) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | North American Insurers | Zenith National Insurance Corp. (Zenith National) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Odyssey Group Holdings, Inc. (Odyssey Group) | ||||
Subsidiaries | ||||
Equity ownership percentage | 90% | |||
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Brit Limited (Brit) | ||||
Subsidiaries | ||||
Equity ownership percentage | 86.20% | |||
Property and Casualty Insurance and Reinsurance | Global Insurers and Reinsurers | Allied World Assurance Company Holdings, Ltd (Allied World) | ||||
Subsidiaries | ||||
Equity ownership percentage | 83.40% | |||
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | Bryte Insurance Company Ltd (Bryte Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | International Insurers and Reinsurers | Eurolife FFH General Insurance Single Member S.A. (Eurolife General) | ||||
Subsidiaries | ||||
Equity ownership percentage | 80% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | Polskie Towarzystwo Reasekuracji Spolka Akcyjna (Polish Re) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | Colonnade Insurance S.A. (Colonnade Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | FFH Ukraine Holdings (Fairfax Ukraine) | ||||
Subsidiaries | ||||
Equity ownership percentage | 70% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | ARX Insurance Company (ARX Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Central and Eastern Europe | Private Joint Stock Company Insurance Company Universalna (Universalna) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | Fairfax Brasil Seguros Corporativos S.A. (Fairfax Brasil) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | La Meridional Compania Argentina de Seguros S.A. (La Meridional Argentina) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | SBS Seguros Colombia S.A. (Southbridge Colombia) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | SBI Seguros Uruguay S.A. (Southbridge Uruguay) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Latin America | Southbridge Compania de Seguros Generales S.A. (Southbridge Chile) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Group Re | CRC Reinsurance Limited (CRC Re) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Group Re | Wentworth Insurance Company Ltd. (Wentworth) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Group Re | Connemara Reinsurance Company Ltd. (Connemara) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Falcon Insurance Company (Hong Kong) Limited (Falcon) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Asia | The Pacific Insurance Berhad (Pacific Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 85% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Asia | PT Asuransi Multi Artha Guna Tbk (AMAG Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 80.30% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Fairfirst Insurance Limited (Fairfirst Insurance) | ||||
Subsidiaries | ||||
Equity ownership percentage | 78% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Falcon Insurance Public Company Limited (Falcon Thailand) [Member] | ||||
Subsidiaries | ||||
Equity ownership percentage | 96.70% | |||
Property and Casualty Insurance and Reinsurance | Fairfax Asia | Singapore Reinsurance Corporation Limited (Singapore Re) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Life insurance and Run-off | Eurolife FFH Life Insurance Group Holdings S.A. (Eurolife) | ||||
Subsidiaries | ||||
Equity ownership percentage | 80% | |||
Investment management | Hamblin Watsa Investment Counsel Ltd. (Hamblin Watsa) | ||||
Subsidiaries | ||||
Equity ownership percentage | 100% | |||
Non-insurance companies | Restaurants and retail | Recipe Unlimited Corporation (Recipe) | ||||
Subsidiaries | ||||
Equity ownership percentage | 84% | |||
Non-insurance companies | Restaurants and retail | Sporting Life Group Limited | ||||
Subsidiaries | ||||
Equity ownership percentage | 88.50% | |||
Non-insurance companies | Fairfax India | Fairfax India Holdings Corporation (Fairfax India) | ||||
Subsidiaries | ||||
Equity ownership percentage | 42.50% | |||
Proportion of voting rights held | 95.20% | |||
Non-insurance companies | Thomas Cook India | Thomas Cook (India) Limited (Thomas Cook India) | ||||
Subsidiaries | ||||
Equity ownership percentage | 64.60% | |||
Non-insurance companies | Other | AGT Food and Ingredients Inc. (AGT) | ||||
Subsidiaries | ||||
Equity ownership percentage | 59.60% | |||
Non-insurance companies | Other | Dexterra Group Inc. (Dexterra Group) | ||||
Subsidiaries | ||||
Equity ownership percentage | 49.30% | |||
Non-insurance companies | Other | Boat Rocker Media Inc. (Boat Rocker) | ||||
Subsidiaries | ||||
Equity ownership percentage | 44.90% | |||
Proportion of voting rights held | 56.10% | |||
Non-insurance companies | Other | Farmers Edge Inc. (Farmers Edge) | ||||
Subsidiaries | ||||
Equity ownership percentage | 61.20% | |||
Non-insurance companies | Other | Grivalia Hospitality | ||||
Subsidiaries | ||||
Equity ownership percentage | 85.20% | |||
Thomas Cook (India) Limited (Thomas Cook India) | Sterling Holiday Resorts Limited (Sterling Resorts) | ||||
Subsidiaries | ||||
Equity ownership percentage | 64.60% | |||
Proportion of voting rights held | 100% |