Fairfax Financial Holdings Ltd Shs Subord.Vtg

FFH: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 1,747.00	Ktr	Sqmyvmbd

Fairfax Earnings: Industry Tailwinds Lead to Strong Quarter

Brett Horn

Aug 2, 2024

Fairfax enjoyed a strong second quarter, as it is benefiting from favorable industry underwriting conditions and seeing some tailwinds on the investment side. Book value per share, adjusted for dividends, is up 6% from year-end. We think the near-term outlook for the company is bright, but we also believe that insurance is a highly competitive and inherently mean-reverting industry, and that current tailwinds will dissipate. We will maintain our CAD 1,180 fair value estimate for the no-moat company. We see shares as overvalued and think the market is overly focused on the company’s near-term prospects.

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