2024-02-12 11:05:00 ET
Summary
- Fairfax Financial Holdings is a strongly performing Insurance/Reinsurance company.
- FFH business segments are enjoying multiple tailwinds.
- Analysts are mostly bullish, FFH stock has risen.
- FFH reports Q4 after the bell on Thursday 15th. I expect even stronger results.
- A short report on Fairfax Financial Holdings came out a week before earnings, and FFH dropped 12%. I examine the bear case.
Fairfax Financial Holdings
Fairfax Financial Holdings Limited, ( FFH:CA ) through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company operates through Property and Casualty Insurance and Reinsurance, Life Insurance and Run-off, and Non-Insurance Companies segments. As part of its operating model, FFH owns various non-insurance businesses, either partly or wholly. FFH is mainly active in the commercial insurance and reinsurance segments, two cyclical segments, which are experiencing an upswing.
Since 1985, FFH has been headed by Prem Watsa, its founder, Chairman and CEO. Watsa is an iconic figure in the Canadian business world, and he and FFH have been compared to Warren Buffett and Berkshire Hathaway Inc. ( BRK.A ) Watsa predicted the US Subprime crisis as early as 2006, referencing it in his letter to shareholders.
The Fairfax Financial business has been performing well, and this has been recognised by the market. Analysts have generally been positive on the company, other than a recent `short report by Muddy Waters. On the day of this report, shares fell by as much as 12.5%
In this article, I profile the key underlying businesses, and provide an outlook for the company. FFH reports its Q4 figures after the market close on February 15th. I expect the Q4 figures to show continued profit growth. As an analyst with significant expertise in insurance and reinsurance accounting, I will also review the short thesis....
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For further details see:
Fairfax - Positive Outlook Ahead Of Earnings Despite Accounting Fears