Fairfax Financial Holdings Limited (FRFHF) 11 Feb 222021 Q4 Earnings call transcript

Good morning. And welcome to Fairfax’s 2021 Year End Results Conference Call.

Your lines have been placed in a listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] Today’s conference is being recorded, if you have any objections, you may disconnect at this time.

call Watsa today’s for opening for Mr. host is with Prem remarks Your Bulas. Derek Mr. Bulas, please begin.

securities as filed Shelf set risk Risk out welcome call forward-looking which the the any consequences a applicable to to regulators Factors variety call required risk XXXX except And revise statements from resulting intention and to with and forward-looking morning. our statements is Good Prospectus, our foreseeable includes such in most securities in adverse results. and I the may perhaps turn of or forward-looking related call Prem those results available contained year or COVID-XX to by on This pandemic. uncertainties obligation a may over Base Actual include personnel now statements. which to under CEO, been differ SEDAR, materially of and has from now end and Fairfax’s will Fairfax of Fairfax’s disclaims Chairman Canadian as result our of update law. to investments business, factors, Watsa. the which are discuss any or

and to the Allen, Peter details. last Chief named our congratulating Jen year call Hey. Good operations; to and you was Financial provide reinsurance XXXX and all, and to want Operating I financial I’d President Clarke, morning, insurance our end Peter begin, to highlights Operating some of who Officer to our additional on give like first to conference evening. Chief gentlemen. Thank comment Clarke, Chief by Officer of Fairfax’s some Officer, and then call. the Welcome ladies Derek. you, pass and President

Fairfax our Fairfax outstanding Fairfax who roles work continuing is release, done In an smart, of in the culture as many two Jen it. I appointment Peter Peter. fully deserves some to for our Peter said. with a while As realize no past closely the President. I to ego. been President job one us in I no and to hardworking press decades time, numerous ways, has said with his very over took represents has There and any forward It just look for better,

with $X.X $XX over had surpassing results. combination So, now, an The our per Book year dividend. previous $XXX onto billion, call. earnings record $X in billion XXXX. was of the high million a We share outstanding adjusted value investment XX%, grew book value underwriting share record our for of over outstanding profit XX% growth in by of and per

XX%, quarter, major our high rate and year, all world. We in XX XXXX. in essentially up which $X.X this A presidents decentralized the one reach Insurance ratio combined in a written are must result. approach over despite was lines billion billion. of with wrote us all to XX% compensation. the $X.X XXXX, to years the exception took business, who is XX% of well. Gross of another with over catastrophe up workers for We the year XXXX, Congratulations our year businesses across from growing increases steady organic. the Our losses. It wrote $XX.X were rapidly in all fourth reinsurance in gross go premiums over year in that billion all works premiums produced

is Canada and CEO Former were thoughts your joined outstanding year. that of an in prayers. have be was doing him while to He’s Brit page years release in highlighted Interim RSA we from XXXX the More and had President Ki to of expect page XXXX. it keep him to years the of our treatment President fortunate Brit, press XXX XXX call is calls As in of XXXX Thompson, we had us were disclosed annual our Wilson, back and Matthew our Mark In next Please only XX Martin job We our the of out undergoing or last late our four the on significantly two or of we shown I through of year. a there on we page XXXX each Ki. conference negative in report annual case I’d when All Peter. on report you building Allan rebounded XXXX that investment return.

only went with of first were much a by had investment the a the because more -- that table investment our XXXX XX.X%, X.X%, and up we me, Please down investment In we XXXX of portfolios XXXX portfolio, billion. last investment that’s return know, note, down earning down results in negative our the our for X.X%, and had than been securities. better all as than our you of that end portfolio. it XXXX X.X%. was investment cash in up our But and XXXX Investment Each about But expected. many XXXX positive So heard return investors $X.X the have quarter up time X.X%, a with investments year, portfolios up X.X% next and it time resulted XXXX X.X%, that’s went X.X%, time ended the year which you year of reversed XXXX, total mark-to-market. return the from nothing and returns year times XXXX X.X%. from your on the following X.X% in and they return down the went years, short-term was four this XXXX down worried half XX.X%, XX

have per year outstanding of is XX% growing where have million to portion raise done $X.X $XXX at and XX% Of from of course, billion significant $X.X at includes they a at an Digit Kamesh a job and valuation it’s profitable. Digit completed capital the Digit announced this billion. Goyal

our worked are shown for lumpy this us XX the very years. that has Our over last history returns and has

it share our We years even the per have currently. years. XX have value never focused XX% loves and on XX But steady year quarterly long-term we that’s for though you, increased per stock book over market at earnings,

positions, our Stelco CIB Bank Wilson XX stock -- XX%. have Kennedy which our -- on statements XX%, common stock year, to mark-to-market major was our in associates have again, last in XX%, positions is we we above mark-to-market which sheet up XX%, are this XX%, included Not up XX%. done, begun investments, our in the how have up BlackBerry report. up you I showing and The annual will be was IIFL mark-to-market balance report consolidated it our Wealth and Here’s XXXX. annual top financial in in our year’s in

Thomas Here’s have the to Quess mentioned XX%, Greece in how business-friendly on Resolute large Fairfax XX%. up Corp. positions up up average X%, XX%, they best in up XX% that up I India up XXXX. is these and Eurobank you up up Atlas XX%, Cook were Recipe country XX%, XXX%, did Europe.

We now Our Eurobank still just long yesterday €X.XX €X.XX that’s trading way think go. to is XXXX, it has versus end -- has at a up year XX%. at

book Our XXXX. value XX% share, in per as said, was I up

not the and consolidated investments equity our not does our include investments, are in this mark-to-market. accounted increase However, which

If of our consolidation, from of $XXX pre-tax add both we share book In a value If gains which you $XXX of $X a on per subject Digit approximately the is value, to value fair over upon a pre-tax anticipate at are will from -- additional a being did as December basis. carrying additional we mark-to-market, these on to gains would control to per million, share and it’s quarter, the and excess unrealized $XX XXXX. basis value be approval, added recorded we book million -- or share of on or $XXX arithmetic, regulatory $XXX $XX $XXX our million course, share. XX,

stocks difficult dot.com a value previously, said in last has long-term have or XXXX. very even technology, particularly been Valuations now. the decade through the versus never exceeding investing in I growth so time few stocks gone of era years, have extremes about a As for the extreme value-oriented

fore. continues interest inflation, normalize mean, a stocks rise because coming rates value-oriented As reverse to to to economy and the to that we expect the continue of the

a I stock our to in three believe I before to remind continue our that XXXX very are common in most years XXXX were undervalued. portfolio to stock that this downturn, XXX%. you indexes have down up years the about but and XX%, you positions stock was said market three the We

higher. cash Towards XXXX purchasing shares complete capital and book was the $XXX shares cancelling of quarter, substantial intrinsic and Odyssey $XXX bid for issuer publicly transactions the $XXX at Group at neutral cash of cheap. per our opportunity had the consideration gain million, buyback able share, a with market have of much shares well below We for value million. we billion was the bid $XXX that essentially of ridiculously done is million to a stated were per and substantial for value our payment share billion. of conjunction issuer the per a to Fairfax XXXX, were The X the $XXX us. resulted share, sale I current Combine company of in of X cash In and price fourth $X in two which X.X%

you investment reinsurance Just they that and our additional which were one up have and were this December share up in what basis a basis billion point because our with per is provide but the basis, premiums on points to give every per income. short-dated we long-term, million. have investment. share XX% the portfolio the in gone in us up gross interest XXXX, XX, in cash shares held million already representing counts At of XX%, $XX.X gross example, additional of rates, With $X the companies premiums our of fact XXXX, outstanding increase insurance investments, company’s reduced $XXX XXX XX XX.X% by would

billion to custodian at face. end. and company, undrawn and predominantly our cash is We billion have $X note said might continue meet approximately have at cash a I to before, in holding line the in the company, bank any $X.X contingency year Fairfax every you to as short-term and that Please securities holding

our this We are support long-term Operating and on Officer, reinsurance comment with insurance needed. investments Peter and our to if will than pass making reinsurance to call I cash Chief any the other operations President insurance operations. and Peter? our Clarke, not to now

Prem. you, Thank

results growth. to with produce strong organic Our underlying companies continue outstanding

year. billion up losses finished and gross XX%, premiums produced of quarter million, year strong the $XXX the from fourth the profit for in XXX% combined our the a for gross $XXX billion. -- It points. XXXX, losses X.X was our Our catastrophe XX% the million written X.X or points was $X.X In premium related reflecting million. $XXX ratio record amounted fourth in losses up over ratio industry losses in year million, of absorbing XXXX, This in quarter highest XXXX, with second is catastrophe excess expected $XXX billion ratio of year. underwriting of that in and off produced of of XX.X% comparison, a combined the We an underwriting combined premium despite XXXX, ratio, ever. $XX.X By $XXX XX.X% up $XXX profit in of of combined combined million the COVID-XX and to ratio the will of COVID-XX or XX% of a generating have catastrophe losses we combined

underwriting the combined World XXX%, combined and XX%. still reported XX%, and the for lowest Odyssey ratios also driven year Zenith elevated Brit XXXX, had by front, Allied catastrophe being strong had Group a while Northbridge losses. XX% respectively, at On below and ratios,

has with follow-on writing especially the for innovative, XX% liability As World This mentioned, year. Brit in growth previous syndicate an directors approximately and made with strong particularly markets, insurance our in increase up in up favorable the grew results XXX% XX% Brit year casualties of liability, the under should the by gross officers the a reinsurance Ki, premium Allied accounting economic and were North and $X.X started the company, Ki’s our professional continued as year Group’s noted conditions XX%, that business less fourth quarter. it in was ended up gross were effective many premium XXXX. possible premiums control its XX%, XX%, though and in both XX% growth that by prevail It of was for expansion market it’s it billion even be from year, segment. America. of with interest. in strong has segments premiums standards, including that must up than its Odyssey consolidate excess premiums of

of a Excluding up increased continues and Canada, by Forster premium its XX% in Northbridge business. Brit’s gross U.S. healthy continued increased In & Ki, in surplus face lines terms, modest, driven the as register retention as by at asset in new and headwinds it by premiums United growth rate commercial market XX%, Zenith the to specialty more favorable its dollar increases, continues worker’s health, compensation XX%. Crum States. Growth topline and it were in strong divisions. to be to competitive the its

Fairfax with $XXX premiums -- expansion Asia’s million premium Our XX% included international operations Re. two year-over-year. from year well, consolidated growth quarters Singapore as of its recently this approximately were continued up XX% and

registered America, growth, across lines, South South in expected see in for to in we significant absolute Africa Eastern strong overall attractive. rate rate in while Europe of remain and taper opportunity will companies increases XXXX all is growth Central Fairfax, the and most Entering year. Our continued some level

Our companies gains management their of on teams are extending focused years. the in last made each over several the

the As its XX had X.X were and and winter Hurricane combined the in Group the of storms points Odyssey a points Brit felt XX%, of most, $XXX to year. previously combined included strong XX.X% European mentioned, to XX Ida, million, effects $XXX losses ratio for on combined million of catastrophe U.S. ratio. catastrophe very and floods ending of respectively. the bringing our ratio adding the which Brit and the main losses down the year, catastrophe losses, points resulted their losses. the million, $XXX drivers of

Ki As previously, consolidated results. is Brit’s mentioned into

excluding the was Brit’s for catches its with year, its Ki, Ki’s its expenses combined was year and XX. For catastrophe losses. ratio earned up combined XXX.X the underwriting as ratio premiums

team We portfolio posting began ratio the & an Brit XX% his with this will business. the quarter. Mark for Both in done quarter, year and transfers an job first Ki expect increase their combined over of time, Crum Allen loss underwriting and written combined outstanding by in reserves $XXX ratio accounting profits Ki for Each benefited earned Brit’s in Foster Crum completed for negative for the and and Brit The fourth and year. year combined premium reduced reserves and & prior premium a Foster point $XXX by respectively. quarter. net of million million, as are of transfer half approximately company’s the have the and ratio

This our For on of or XXXX. X.X recorded year, ratio. companies $XXX million or X compares in our $XXX insurance combined million to the and points favorable reinsurance points reserve development

from includes year our COVID-XX in favorable full our ultimate of XXXX. development unfavorable XXXX, the For million losses development changes to $XX relating

IBNR. As we of today’s unpaid year, of well-priced as strengthen, million is COVID-XX $XXX for believe business. expand reserve the the our We companies in to losses, net the hold end of we in operating XX% claims position continues with which

the increase in ratio benefit volume. expense continues sharp to Our from premium

pleased year-over-year, all, Our overall the All attractive. expense Allied with in underwriting performance we are by market expense mainly lower is companies X in the year, the World, points XXXX remain point dropped of ratio in helped X current where XXXX. In versus very conditions our XXXX.

expect of growth and possibility results. We improved underwriting continued the

The Our financial to call will the Officer critical capitalize companies investment are system Financial overall results, Chief decentralized very is well-positioned position. the to now performance non-insurance Jen on to operating on our Fairfax success. our our and I opportunities within Allen, companies their pass our markets. of comment to

my of which will consolidated insurance of common our billion earnings year nine the been at and which remarks companies, already a Thank full XXXX. basic I in value combined full XXXX, you, net to adjusted value XXXX growth in the attributed represented resulted our so of XX, $XXX year $XXX.XX, $X.X the dividend per share year The on reported million Peter. of shareholders when the with that book fourth quarter the share begin was over commentary and in strong book per December first $XX.X, per has XXXX and quarter paid our a Fairfax on $XX -- with months has share in the for detailed record results respectively, just provided results Peter quarter Fairfax. of reinsurance companies. of non-insurance We for first basic of fourth

restrictions, the fourth on Fairfax and excluding non-insurance segment X, Looking favorable Thomas losses $XXX which reflecting deconsolidation segment, the of of fees, XXXX. operating and principally impact reduced benefited income quarter fourth Cook improved COVID-XX to loss in companies its operating restaurant Fairfax the the related our benefited million, performance quarter income at reduced and COVID-XX the -- by compared compared restrictions XXXX, December India Africa lockdown in results from at of India’s retail principally fourth quarter also XXXX, other subsidiaries the India, lockdown from to of XXXX from an which in XXXX, of in retail lower the operating reflecting of operating related

$XX the the a by received at Gulf investments India’s lockdown non-insurance restaurant Canadian Thomas fees, the and operating loss of million government compared loss year excluding improved and an had the XXXX to in of retail higher by profit restrictions a from deconsolidation segment, of operating share to and which We XXXX. $XXX the COVID-XX Africa the which subsidies of of operating India reduced December Turning improvement full in XXXX related Fairfax India, was company growth improvement X, partially in at of compared compared XXXX. associates, dollar impact offset Cook and Fairfax an of which India’s to from income operating in reduced principally reflecting the million to the operating U.S. performance XXXX, Fairfax income strengthening $XXX XXXX from lockdown for restrictions, this compared to COVID-XX million, profit XXXX and segment from operating income segment on in benefited lower producing with the dollar, XXXX, of strong other reflecting benefited again count lower

$XXX was Fairfax consolidated year $XX India’s Fairfax million of India excess the associates benefiting XXXX, noted deficiency the carrying that December expense. value was million, of XXXX that December be value the by the of portfolio at of in earning an attributed higher was A than significant to company fair to adjusted fair certain of value $XXX non-insurance XX, XX, adjusted At India’s considers compared improvement and XXXX, pre-tax investments million. million, value a or $X of subsidiaries the at our over the non-insurance over the allocated value XXXX, XX% a investment billion, Fairfax fee, recorded million with of full not as underlying been interest performance. in As $XX in by reflected with as management Fairfax performance indicator an pre-tax but book non-controlling share, regularly our which has which of about just shareholders, $XXX to is pre-tax carrying per excess reviewed

to Our $XX of million $XX Eurobank improvements $XXX Cook to for certain associated of that non-insurance Quess and Atlas of principally accounted Fairfax Thomas million million, $XXX million. in the at of appreciation, Resolute non-insurance consolidated $XXX million and million, Corp. related $XXX India million, $XX attributed $XXX and million subsidiaries of

focused U.S. our that acquisitions of growth commitment $XX.X small of reinsurance organic the hold and our comprised billion the rates. of of represented billion treasuries. billion short-dated or was fixed rising mentioned and a investment other and by we short-term over cash before, are long-term the but from a short-term, income companies and short-term cash, portion in This portfolio December we portfolio, significant growing in on securities, which As the and our insurance inflation has value. of at supported to of investments protected concerns continue have impact inflation to $XX.X had XX.X% subsidiaries, XXst, interest we income dampened SME with short-dated $X.X With investments shareholder us

net $XXX higher by dividend of Treasury reflecting for strategy environment. and which term U.K., from corporate These more sovereign the the in bonds for which our income terms bonds reach a estate by interest debt our income million our income throughout yield, in the that loans first purchases loans of high of in Ireland the stock to XXXX, income first was that partially earned primarily Our and in million provide in invest years. coming net from to XXXX, XXXX yields, have in less added interest and interest investments offset than and down to not were -- on sales in in XXXX U.S. million our benefit will earned increased fourth secured lower portfolio. resulted $XXX the five income of in mortgage and was $XXX shorter recent are mortgage with dividend XXXX. sales the U.S. in principally bond We XXXX This due U.S., -- decreased of some along real years, the rate quality interest purchased from common benefit

that We to will rise in be the in the short-term we and able portion the cash the rates hold given advantage of short-terms take in portfolio. significant the interest

of year compared million which gains investments the quarter quarter reflected net of $XXX and following. Stelco the in from $XX in share it That in on associates to consolidated share, were our to million impairment million million quarter the the return in from $X.X $XXX million The $XX comprised fourth profit equity of in for of no Fairfax XXXX. Looking gains our total of XXXX $XXX investments the common total year investments Eurobank, $XXX and gains Atlas exposures. included in stock in our largest XXXX The of $XXX from other net XXXX. from That losses of as fourth gains XXXX, million impairment gains strong that we the Gulf and over Resolute, recorded return Bank investments $XX from $XXX swaps, profit associates $XXX were equity following, that and million had of over in the swaps on $X.X from equity Insurance. of were in shares. derivatives, principally billion losses of million a $XXX million comprised results from and full were primarily mainly the million Corp. losses appreciation associates just of XXXX million net International reflected from subordinated in on fourth Net were Commercial benefited and our the component the billion the and of such our full our including holdings XXXX on net of

and included year, Canada Fairfax in the swaps For Stelco, Atlas such holdings stock million investment of $XXX in BlackBerry, shares and U.S., our on the derivatives subordinate we the from other had common total the our gains $X.X again Asia benefited that of on Corp. partnerships voting limited net warrants. as that full and billion equity return appreciation the

investments other These included respective billion I on in which Digit or gains $XXX our moment. losses on and net $XXX net on primarily convertible each by offset our unrealized our of million that convertible portfolio, $X.X million million shares, just $XXX were were in U.S. $X.X shares. and a related of under compulsorily net our corporate on period gains A in million Digit the $XXX bonds. investment the in to our couple preferred gains billion the preferred Secondly, comments bond partially recorded discuss additional on investment compulsory and will that

If you recall from third-party our it Digit as Infoworks agreements to $X.X prior at quarter billion. Insurance conference calls, the who valuing Insurance we into hold we subsidiary equity approximately a of Go certain associate with $XXX refer whereby Digit, XX% shares, million or Digit raise entered to equity interest insurance Digit in it’s the investors new underlying Services

equity successfully at and equity method in with at discounted hold the remaining of company recorded and incorporate to billion, accepted accounting loss. tranches our accounted value associate, shares in Digit XX% through In close $X.X convertible fair a the to Digit by portion discount Insurance profit an that’s that regulatory to are model unobservable conditions. These customary rates. XXXX, to transactions early at the the supported growth investment cash equity rates for approximately subject flow preferred $XXX expected long-term has million raise, substantial which recent value in industry that interest as closing Digit addition an are compulsory under Digit completed now of and we also

shares billion the of Plan the had unrealized for resulted subsidiaries $XXX want in Pension common XXXX, that and the an respective Board maintained aggregate company Municipal the $X.X And to for reporting Pension interest issued completed period. there As A gain $XXX was Investment increase we Employees the Canadian and Ontario of no company equity on of $XX transactions on December to X, Group. retained control $XXX we its the the interest December voting consideration shareholder’s quarter, I substantial of XXth, XXXX, on company, remaining of pursuant was we Plan Odyssey and XX% Odyssey par -- an redeemed That cash our reduction reinsurance insurance billion completed per million. note, million. in few gains million highlight issuer Group aggregate senior XX, million October a February equity On amount to by OMERS, that and consideration recorded to At at to were of our companies. $XXX $X the X.XX continues subordinate principal which a the recorded to consolidate result, representing equity starting of million our the XX, at cash holding a the that the Fairfax shareholder’s share were price X.XXX% key for in notes reported shares the unsecured aggregate due as cancelled as purchased Fairfax equity. bid and on to of X that common then X.XX% and

investments holding will remained have we as decentralized deploy at companies and efficiently. noted and the approximately holding December -- company $X.X liquidity company enable we to that strong with and billion structure insurance Our the the of cash supports company the our position cash XXst to before us capital at of

deployment end, primarily billion, of holding $X.X was insurance significant the our reduction over a company reinsurance the our in with our strategy to at attributed operations. be to X.X% debt capital our earnings companies, debt non-insurance decreasing XX.X% XX, XX.X% the at shareholder’s cap total just December consolidated and and and ratio, excluding XXXX, from prior prudent the equity continued We the on that total year net increase by to reflecting at the to the in

I we update to ESG, began. commitment provide to Before has an which closing, on been Fairfax since wanted our very for meaningful

always The that made on report we report. first XXXX, are and say website, which recently we extended sustainable achievements we published and to XXXX and is we improve would to our our in have now ESG noted on report throughout before, that the processes, initiatives. an have ESG As incorporates importance our initiatives information to an we Recognizing and enhance room investments updated available XXXX, pleased grow highlighted investment continue to-date. investment there’s we published our sustainable

wanted end Fairfax’s Friday, release company’s will you. just Prem, to the call to Xth. Annual to year in Report to on posted was over back And on that call the remind turn now website back yesterday issued March press XXXX Thank the I addition over on the results, Prem Before the turn that will the everyone I be

your Please you, Thank company and your look answering your questions. try to only questions name us to name now your one. limit give to Jen. We and Hey. forward

to call. it’s the So fair on everyone

we ready our for any Britney, Okay, -- have. might are questions that to shareholders

Jaeme Instructions] Gloyn [Operator you. from Bank from comes question Our Thank first National Financial.

Your line is open. now

me, thinking some just just bit Good walk and color to this us excuse just clarity see on transfers. of we the then should going wanted the lost more wanted Thanks. through that? little on stuff Thanks. morning. I forward portfolio expect you to more a strategy to, I Yeah. Can get

Terrific. want you. you Peter, answer to that question. No. Thank

to a but was business it & reserves does on in up into reserves construction done resources of years. Forster free had a well Riverstone, to we Yeah. as transaction, it No. one that well. events, loss two fourth worker’s entered And know capital we our excess who the them their resources. current through it Sure. Riverstone the Brit and focus growth with are transferring up ongoing transfers the a quarter. and transferred portfolio up In very capacity defect, Essentially allows again, construction with our their and -- comp Crum claim. We course, own with portfolio what risks was Sure. they but loss one-off it for number frees at Zenith also is, staff transactions that over the and a Brit’s frees you third-party. did. and claim third-party also in specialized are It’s as International, just did some had and internal They a really of transfer, Riverstone really LPT. U.S.

So were to reserves those Riverstone. were the that transferred

Thank you, Peter. If the we go on question, Britney? next to

Our next [ph]. Partners question Fisher from from comes Charles LF

now line is Your open.

Good morning, Prem.

Good morning, Charles.

is cap. float. billion extensively $XXX it XXX%, you? said float if that actually are liability, Buffett an though about He below the is $XXX the Warren against How asset. has importance ratio a written in has billion in Berkshire even market is float of combined

market in billion in float $XX Our cap. $XX billion Fairfax has against

We of remarkable. combined Can at XX% It’s think float to are how a the tell you ratio. about you value Fairfax? running us

You $XX that’s just undervalued our a combined are said, reserving our you number just is. ratio million XX%, have you our back why, right, of stock it’s it. Charles, is bought I and company we strong. shows exactly billion float X very of And like how significant understand It of shares.

will We the and I I X years it two price shares. I control we million our to bought stock. of said said it’s again, then cheap, ago, continue stock. buy back we ridiculously can’t mean,

I said. are We will at not -- not do looking again, expanding we

issue We shares to to are going buy anything. not any

like anyone well pretty expense advantage see and our by $X paid take as like grown at our our consideration first ROC structure of market, financial product are always buy after compare can fair billion, advantage we are companies, XX%. because price $X not of hot we the at the have Charles, and a it’s the to take companies, the you for property of billion, going number. And pretty growth you Allied of at follow got to back we looking we insurance shares, you $X the we our come we know, find else, is like now, billion, getting customers, to but you very taking getting companies got decentralized all that XX% have significant price Our these opportunity casualty risk. the it internal not is a we is have will a at at position, expense high

market right, float, billion exactly Charles. $XX you time. So, the will are you, Thank over yeah, in it Charles, see

Next question, please, Britney.

from comes question from Mark Dwelle next Capital RBC Markets. Our

now line Your open. is

I I… be if I’d remiss Good mean, Yeah. morning.

Mark. morning, Good

…don’t years I the company. followed combined XX in I that the comment the ratio have best this seen that have was

usual that that. the on focus on expense, or I But corporate other to couple expense line that time of to compared and other elevated items run a attractive what a congratulations one the wanted rate income is nature less quarter. in million start is with within much were I number? want to there anything So normal $XXX little overhead the was in

that combined Yeah. the said, will by, as very reserve that But will ratio, notice for we Mark, add significantly. and were your I have we to redundancies just that. very you information, grown limited

or ratio of and in we back think value will premium the we of expense created a Jen that long redundancies been market XXXX, growth last that like XXXX underlying have than the combined on experienced. just have XXXX good the had And you measure, go we And but and time we so doubled question Peter redundancies time. hot have XXXX, period see for it’s come our a the the a our is If on the Mark we had. that company more long well-reserved a this, measure, has the doesn’t time. a period in it is to that reflect reserve over

Sure. Yes.

annual will details the be that corporate in So report on overhead. more there

includes that, the out. expense So our on assets intangible company insurance will companies. when we level things and the It But and comes MD&A you number amortized goodwill also to our includes holding through refer that acquisitions. be at that that will high like

mainly it’s On intangibles on a going modestly the offset that partly you if a that by income. probably are really given year-over-year through some have numbers some basis, in So management in able have investment of looking amortized been YTD basis have being the are been that driven offset in fees the obtain, stronger actually that quarter. to increased impaired goodwill at it’s that portfolio we there a that by we increase

a there it’s to harder release. be that is that MD&A, bit said, the more as details a So in the But will a I number of provided. I press get, in appreciate lot

details of overhead get our corporate lot the all that the you in detail further annual very with question. you Mark? question Any want. yeah, report is and broken will and coming Mark, Britney, a soon So, that’s next much,

Investments. our Leucadia comes Craig from Okay. And question next from Companion

now is line open. Your

auction. question Prem. had now that hear okay? Hello, I me Can you a Dutch

you. I Thank Yeah. Yes. hear you. can Yeah.

great but idea, depository. Yeah. a was they That act as a I Computershare, comment, guess,

them So we problem had a with

Yeah.

would held accounts a companies. I tell, …and the what to can From U.S. they transmittal never letter changing suggest their in in maybe shares sent of I

the not Canada, did they think U.S. in in but I

plan suggest companies for until But, The a $XX to Fairfax the would Yeah, still it’s they We to I like our their changing all are special So, golden like auction. a get just yeah, provider. go bucks. they people for great. maybe such dividend? a that great dividend of got I midyear future to to holding transaction was $XX see coffins. as

you your a can and… mind for reflect -- we be to your us That’s enough thank that send comment. you on if so Okay. you experience kind Would a on don’t little note that

Yeah.

Okay.

will But sure we a for doesn’t remedy terms dividend, well, you see of next We the and or how -- paid happen dividend. that. can that check our in time $XX make it out we

Our but by got numbers annual will in per we on have we like think We that are you it’s That’s you can we -- the focus and float is the these back Fisher, report, buying stock. our share in billion and anytime see can $XX Charles we we effect, buy doing that all in it shares. said fellow time stock. But, back what should any buying for previously, do.

and appreciate of giving So we mind. buyback. Britney, But the of a of not we question, will dividend, in you question are a course, terms next your please. that form in keep a in but dividend,

Capital next [Operator Instructions] Markets. question Dwelle RBC Mark comes Absolutely. from from Our

open. is line Your

morning. Good Hey.

I my to I got think cut second gotten ask so. before there off a chance might one, have I

Yeah. We had…

Can you a little… talk

Mark. Thank you,

Yeah.

going lot other to idea more related One just due. the come I if ask guess, -- quarter own Were they questions, is, But you actually rolling? I swaps I of or swaps out have a any Fairfax’s fourth ago. wanted opened in were the and important one-year forward did had two on when second the the third. I So a that of with those taken were forward those year shares, extended know annual rolled questions, duration the to the a to well, report was

when that annual Jen? again, did is report The Yes.

Xth. March -- March This the Friday,

Xth. on we expect them, March Friday, swaps but TRS the extend to Peter? Peter

Yeah. extended, still out They are so and been there. have ruled they

other you Mark, So, any comments had?

so am his sorry. I off. That line

Yeah. back he next had again if But Yeah. problem. Britney you No a Yeah. question, will please. come question.

Okay.

comes Our [ph]. Gabe from Linnet from LLP next Family question Gabe

Your line is now open.

We… Yes. Hi. Hi.

morning. Good

charitable …are document. the to of the counsel dividend had XXXCX that Tory the offering well the Dutch private terrible foundation the firm to disclosed tax a auction. in distribution nature, a time We U.S. wasn’t in really for our the tried the Canadian nature your It’s U.S. with talk in law U.S. opinion

Yes.

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it. about …

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we aware of of the to… as we a not would, send we love note United aware concerns States, can a, you send We concerns we in but the will the us I to problems and follow-up try as and are make I’d are problems best sure me

Right.

repeat to that. Not

information or your disclose contact on e-mail don’t website. the your You

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p_watsa, p_watsa@fairfax.ca. it’s -- It’s that’s simple, very

Okay. But…

Okay.

doing whatever concern from yourself the class to something lawsuit open other standpoint, that anyway… or without action you company one for don’t to want disclosure But and a

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Britney, question and you thank please. next question, So for your

from Okay. [ph], comes Aniket Our [Operator individual. in private next question Kabari Instructions] a

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comes question [ph]. Sickel William Our next Gilmore from from

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Sure. Yeah.

annual in So on provide portfolio. the income fixed will we on the report the duration

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you. Thank Okay.

Thank you Tiffany next very please. question, [ph], much.

next from our Ashwin from Jones. comes question Edward And Okay. Mudaliar

now Your open. line is

question the wonderful year. year, Thank you, amazing is just… on Mr. My and congrats, Watsa, the

very Thank much. you

philosophical My problem. of India. investment difference or not is up in just area factor higher philosophy unique be assets? investments that have it greater risk competition just was is those No growth just having to whereas Fairfax terms there’s companies, there is a my philosophy of you access in to may just That’s to pay a question. wondering in if India. for bit be in low a -- those able little question I -- about for as great change willing or a of We

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Yes.

ahead. go sorry, a, was …there

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look Yeah. No. at We that. of all

is going can rebound XX%, the India know grow tends We company you which XX%. Cook, -- significantly. that heavy if to went to in we we will reason is like India tough India huge. down like India, companies Thomas a at into take account, Canada that’s to going tremendously domestic that really zero, restaurant pretty business to a time to companies back in through will well the tourists and and and Recipe in bounce bounce like with back XX%,

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the we think. good to continues Fairfax reduce So India shares prices outstanding these at

very that India in to be a well looking the performed to have companies benefit money. terrific shareholders it a benefit got over time. and to will going main good that have expect are we but we of long-term the and put of we is So the at Fairfax group place India -- over

inflation, Tiffany, we everything countries not individual XX%. that’s As companies going well. in becomes type rising real, are bounce And in India interest including as next X%, very are well. like economic very, economic do back very, question, normal rates, and even going economic, inflation of spades, very strong normalize, economy, They do some please. environment to perhaps X% to growth, that that

Instructions] comes [Operator Kabari, from your question Our you. -- Thank Aniket individual. next private

is line Your open. now

hear me? Hello. Can you

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years Hi, all. Prem. a I investor company new at a and not with the Yeah. two am the last Yeah. Yeah. sophisticated investor for

So might pardon a sound to question the little me understand then dumb, the am the and trying that transaction if but Odyssey Fairfax the with capital I did used to purchase stock.

to sold Odyssey And correct XX% almost I of am then… Fairfax $X So understand billion? that for

Yes.

…you worth, billion? does Odyssey company $XX $XX just and whole proceed say, but the billion at Fairfax trading to, not means that around is

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market. in still thank think move. I and But mean, today’s just doing you am that shocked I I that’s I that a am So, that for was great possible --

do future, be are about in such this at all, transactions cheap. the personally trading if your that here guys is I So, dividend you the think because yes, worried to should you don’t planning stock

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you told buy and the of market. this would the position I our of at not stock, expense take of not expense of that, advantage course capital financial at to -- we Of back the hot

we very really -- company. we nimble entrepreneurial a are So are what

You in operations. that decentralized insurance our saw

expense our company ability take of well at at advantage You the than our to market. the we see saw you of any position will pretty financial in but how and not more a take expanded so And not North significantly insurance America. of good of expense advantage us opportunity,

please, question, Tiffany? Next

questions There this at time. are additional no

much, very you you joining all for and thank So Tiffany, this thank call.

with little this a look we will invite it’s join -- And you you we joining if further AGM going all of are can in-person We for April. to soon and forward call will we questions to bit luck, again a our AGM us. to be in having and and thank you

joining So Tiffany. and thank you all you, thank for

participants This today’s All does this conclude conference. time. disconnect may at