Good morning, and welcome to our call to discuss Fairfax's 2025 year-end results. This call may include forward-looking statements.

Actual results may differ, perhaps materially, from those contained in such forward-looking statements as a result of a variety of uncertainties and risk factors, the most foreseeable of which are set out under Risk Factors in our base shelf prospectus, which has been filed with Canadian securities regulators and is available on SEDAR+. Fairfax disclaims any intention or obligation to update or revise any forward-looking statements, except as required by applicable securities law.

I'll now turn the call over to our President and COO, Peter Clarke.

Thank you, Derek. Good morning, and welcome to Fairfax's 2025 fourth quarter and year-end conference call.

I plan to give you some highlights, and then pass the call to Wade Burton, our President and Chief Investment Officer of Hamblin Watsa, to comment on investments, and Amy Sherk, our Chief Financial Officer, to provide some additional financial details. 2025 was the best year in our history.

We earned $4.8 billion after taxes, the most ever, with record underwriting income of $1.8 billion, and record interest and dividend income of $2.6 billion. We also had strong contributions from investments in associates, our non-insurance consolidated investments, and net gains on investments.

Operating income from our insurance and reinsurance operations on an undiscounted basis and before risk margin was again very strong at $4.6 billion. We have many sources of income, and they all performed very well this year.

Our book value per share increased 20.5%, adjusted for our $15 dividend, to $1,260, up from $1,060 at December 31, 2024, an increase of approximately $200 per share. Last year, we purchased for cancellation just over 1 million shares at an average cost of $1,615 per share.

At December 31st, 2025, there were 20.9 million shares outstanding. In the first 6 weeks of 2026, we purchased a further 131,000 shares at an average cost of $1,685 per share.

Our insurance and reinsurance companies are in great shape, writing over $33 billion of premium worldwide. We continue to benefit from our scale and diversification through our decentralized insurance operations, supported by the deep expertise and long tenure of our presidents and the leadership teams across our insurance and reinsurance businesses.

As we have said before, we can see our consolidated operating income for the next number of years at $5 billion, of course, no guarantees, and this consists of $1.5 billion of underwriting profit, interest and dividend income of $2.5 billion, and $1 billion income from our associates and non-insurance consolidated income. On February 17th, 2026, it was announced Kennedy Wilson entered into a definitive merger agreement, pursuant to which they will be acquired in an all-cash transaction by a consortium led by Bill McMorrow, Chairman and Chief Executive Officer of Kennedy Wilson, certain other senior executives, and together with Fairfax.

Under the merger agreement, the consortium will acquire all outstanding shares of Kennedy Wilson not already owned by members of the consortium for $10.90 per share in cash. The per share purchase price represents a 46% premium to Kennedy Wilson's unaffected share price as of November 4th, 2025, the last trading day prior to Kennedy Wilson receiving and publicly disclosing the consortium's proposal.

Fairfax has committed to provide the consortium with funding up to an aggregate amount of $1.65 billion, which is the amount necessary to fund the cash purchase price and the redemption of certain preferred shares and other expenses. Bill McMorrow will have effective control and will continue to lead and have ultimate responsibility for the company, while Fairfax will have a majority economic interest in the company.

The transaction is subject to customary closing conditions, including shareholder approvals, and is expected to close in the second quarter of 2026. I will now give you some additional detail on the components of our net earnings for the year.

Our investment return for 2025 was outstanding, with a return of 9.3%, driven by very stable interest and dividend income and associate earnings and a very strong year on net gains on our equity investments. Consolidated interest and dividend income of $2.6 billion was up $62 million year-over-year, benefiting from a growing investment portfolio, offset by lower interest rates and decreased dividend income, primarily from a one-off dividend from Digit Insurance from its IPO in 2024.

Net gains on investments of $3.2 billion for the year were one of the highest ever in our history, driven by gains on our equity exposures of $3 billion, unrealized gains on our bond portfolio of $385 million, primarily from US Treasuries due to the decrease in interest rates during the year, offset by foreign exchange losses of $440 million, much of which was offset by foreign currency translation gains recorded in other comprehensive income. Net gains of $3 billion on our equity and equity-related holdings were driven by realized gains and unrealized mark-to-market gains on investments, with our major contributors being our Fairfax TRS; Orla Mining, a position we sold about half of our common shares, or a quarter of our interest including convertibles and warrants, in the fourth quarter; also contributing was Eurobank and Metlen Energy.

We have always said, and please remember, our net gains or losses on investments only make sense over the long term, and will fluctuate from quarter to quarter, or for that matter, year to year. More on investments from Wade.

As mentioned in previous quarters, our book value per share of $1,260 does not include unrealized gains or losses in our equity accounted investments and our consolidated investments, which are not marked to market. At the end of the year, the fair value of these securities is in excess of carrying value by $3.1 billion, an unrealized gain position, or $150 per share on a pre-tax basis.

This increased from $1.5 billion or $68 per share last year. In 2025, changes in discount rates resulted in a pre-tax loss of $59 million, with net gains on bonds of $385 million offset by a loss on net reserves of $444 million.

This compares to a pre-tax loss of $530 million in 2024, with bond losses of $731 million offset by a benefit of $201 million on net reserves. Our insurance and reinsurance businesses wrote $33.3 billion of gross premium in 2025, an all-time high, up 2.3% or $750 million versus 2024.

Our North American insurance segment increased gross premiums by $468 million in 2025, or 5.3%. Crum & Forster had growth of 9.5%, driven by its accident and health business and surplus and specialty lines.

Zenith premiums were up 6.5% year-over-year due to positive rate in workers' compensation business, primarily in California, its complementary P&C business, and new business in its large account segment. Northbridge's premiums were down 2.6% in Canadian dollars, with planned reductions in its personal lines business and in transportation.

Their customer retentions continue to remain strong, benefiting from strong customer service. Our Global Insurers and Reinsurers segment gross premium was up 2.4%, with gross premiums of $17.6 billion in 2025, up $412 million year-over-year.

Brit's gross premium was up 3.8% for the year, primarily from Brit Re and growth in high-margin classes, including property, financial lines, and marine business. On a net basis, Brit's premium was up 4.2%, retaining a greater share of profitable business.

Allied World was up 3.3% for the year, with gross premiums of $7.4 billion, with each of their operating segments growing, with the reinsurance segment up 6.5%, its global markets up 4.7%, and North American insurance was up 1%. Odyssey Group's premiums were flat in 2025, with gross written premium of $6.3 billion.

Its insurance business was down 4.8%, principally from targeted decreases at Hudson in its crop and financial lines of business, while reinsurance was up 3.9%, mainly property business in the United States, including reinstatement premiums from the California wildfires. Ki, their premium was up 3.8%, primarily on property lines, offset by open market business.

Our international insurance and reinsurance operations wrote gross premium $6.4 billion in 2025 versus $6.5 billion in 2024. The decline was primarily from Gulf Insurance due to the decrease in health insurance business in its operations in Kuwait.

Excluding Gulf Insurance, our international operations premiums were up almost 8%. Fairfax Asia, led by Singapore Re, Colonnade in Eastern Europe, Bryte Insurance in South Africa, our Ukrainian companies ARX and Universalna, and Polish Re all had double-digit growth in the year, a very nice, diversified platform that is growing profitably.

Our international operations write a significant amount of premium at $6.4 billion. This is bigger than the whole of Fairfax only 15 years ago.

We continue to be excited about the prospects for our international operations, and we expect it will be a significant source of growth over time, driven by excellent management teams that are more and more collaborating among themselves and leveraging the strength of Fairfax. On the underwriting front, we had a very strong end to the year, with a fourth quarter combined ratio of 88.6%, producing an underwriting profit of $753 million.

Focusing on the full year, our combined ratio was 93.0% on an undiscounted basis, producing record underwriting profit of $1.8 billion. The combined ratio included catastrophe losses of $1.2 billion, adding 4.8 combined ratio points, primarily from the California wildfires in the first quarter of 2025, Hurricane Melissa in the fourth quarter, and other attritional losses.

This compares to a combined ratio of 92.7, underwriting profit of just under $1.8 billion, and catastrophe losses of 4.5 points in 2024. As our premium base has expanded, and with the benefits of diversification, we expect to be able to absorb significant catastrophe losses within our underlying underwriting profit.

For the full year 2025, our global insurers and reinsurers posted a combined ratio of 92.1, led by Allied World with a combined ratio of 89.3, and an underwriting profit for Allied of $546 million, the largest underwriting profit among all our companies. Odyssey Group had another solid year, producing a combined ratio of 93.8, with underwriting income of $375 million.

These results include 11 points of catastrophe losses, primarily from the California wildfire losses in the first quarter of 2025. Of all our companies, Odyssey felt the effects of catastrophe losses the most this year, not unexpected.

Brit continues to produce excellent results, with $183 million of underwriting profit and a third year in a row of sub-95 combined ratio at 92.7. Ki had a combined ratio of 95.7, with an underwriting profit of $33 million, in its first full year reporting as a separate company from Brit.

Ki's results were affected by separation costs of 4.4 combined ratio points. Excluding these non-recurring costs, Ki's combined ratio would have been in the low 90s, an excellent year for Ki.

Our North American insurers had a combined ratio of 93.8 in 2025, very similar to its combined ratio in 2024. Northbridge had the lowest combined ratio of all our major companies with an 88.7, and underwriting income of $238 million.

Crum & Forster continues to grow profitably with a combined ratio of 94.8, and an all-time record underwriting profit for them at $236 million. Zenith, our workers' compensation specialist, had a combined ratio of 102, managing multiple years of price decreases in that line of business, although now trending in the right direction.

Our international operations delivered a combined ratio of 94.7 for the year. Fairfax Asia led the way with a combined ratio of 90.3, led by Singapore Re, offset by elevated combined ratios at Fairfirst in Sri Lanka that were affected by Cyclone Ditwah late in the year and Falcon Thailand, who suffered two major catastrophes in the year.

Our operations in South America had an excellent year at 94.5 combined, with all its operations producing underwriting profit, led by Southbridge in Chile and Fairfax Brasil. Colonnade, who writes business across Eastern Europe, had a great year with underwriting profit of $23 million, more than double the previous year.

Polish Re had an excellent year with record underwriting profit and a combined ratio of 94.5. Bryte in South Africa, for the second year in a row, posted a combined ratio below 95 at 92.2.

Eurolife's non-life operations in Greece had a small underwriting profit at a 100.5, reflecting a very competitive environment, especially in its motor business. Finally, Gulf Insurance was back to underwriting profitability in 2025 with a combined ratio of 96.5 and underwriting profit of $53 million.

Our international operations, diversified across the globe, wrote $6.4 billion of gross premium and produced $219 million of underwriting profit. This is a five times increase over the last 5 years.

You can see why we are very excited about our international operations. For the year, our insurance and reinsurance companies recorded favorable reserve development of $752 million for a benefit of 2.9 points on our combined ratio.

This is compared to $594 million for the benefit of 2.4 points in 2024. This is the 19th consecutive year our insurance and reinsurance operations have had favorable reserve development, amounting over that time period cumulatively to $6.9 billion.

We have a strong reserving philosophy and are focused on setting our ongoing reserves at conservative levels, especially on long-tail lines of business. Offsetting this, our run-off operations strengthened reserves by $298 million as part of their annual actuarial reserve process, the strengthening related primarily to latent liabilities due to the continued increases in litigation activity.

Through our decentralized operations, our insurance and reinsurance companies continue to thrive, writing close to $33 billion in gross premium, producing record underwriting profit, and as we've said before, led by our exceptional management teams. Our companies are positioned very well to continue capitalizing on their opportunities in their respective markets in 2026.

I will now pass the call to Wade Burton, our President and Chief Investment Officer of Hamblin Watsa, to comment on our investments.

Thank you, Peter. Good morning.

Our investment portfolios ended the quarter at $74.9 billion U.S. dollars.

Of the $74.9 billion, $50 billion was invested in fixed income and $24.9 billion in stocks, investment in associates, LPs, and preferreds. The $50 billion in fixed income is earning a very nice yield of 5%, despite being very short duration and mostly invested in government bonds.

We're playing it safe with spreads at lows and uncertainty around inflation numbers, yet earning good money while we do that. We're keeping a close eye on inflation, Treasury actions, Fed funds rate, GDP growth, and corporate profitability, both in the U.S.

and globally. If there's one thing our fixed income group has proven, it's that it has the ability to act quickly when the time is right.

It's really a core competitive advantage throughout our investment group. When we feel the time is right, we will act.

For now, we're playing it safe in fixed income. All of our top holdings on the $24.9 billion of equity and equity-like investments had good years in 2025.

Eurobank, Atlas, Recipe, Fairfax India, Metlen, Sleep Country, EXCO, Peak Achievement are all in great shape, all earning their cost of capital, and all beautifully run by people we like and trust. These top holdings are a very large percentage of our equity and equity-like investments, and they're making our jobs easy.

We've added a new stock to our portfolios. The company is called Under Armour, founded and run by Kevin Plank.

Kevin, as a youth, was a college-level football player and saw an opportunity to make better athletic wear for under equipment. He started Under Armour in his garage in 1996.

By 2001, revenues were $50 million; 2005, they were $280 million; and in 2017, the company reached $5 billion in sales. Profits every year through 2017.

2017 through 2025 were what we would call the lean years: restructuring charges, new CEOs, lawsuits, increased SKUs, lower product prices, and lower margins. The stock went from as high as in the 50s to as low as in the 4s.

Kevin stepped down as CEO in 2020 and finally took back the role of CEO in 2024. He is refocusing the company on product development, marketing and brand development, and reducing SKUs.

This is exactly the right plan for the long run. Costly and lumpy, and the stock market sometimes doesn't have the patience for that.

We can see that they have the balance sheet, the focus, and the discipline to turn the company around. At Fairfax, we focus on the long run, the lumpiness creates an opportunity for us to take advantage of, with a founder we are so excited to have running this business.

Lastly, you will have seen post-year-end 2025 we are taking our long-time partner Kennedy Wilson private, buying out minority shareholders at $10.90 a share. Three points on this: One, we have had a long-standing and very profitable relationship with Bill McMorrow, Matt Windisch, and the team at Kennedy Wilson, from mortgages to LP investments to investments in their shares.

Two, Kennedy Wilson has world-class capabilities underwriting real estate. Having this capability in-house at Fairfax is a huge long-term benefit for Fairfax shareholders.

Three, the cultural fit between Kennedy Wilson and Fairfax is outstanding. Over the last 16 years, we developed a deep-seated friendship built on respect and openness and striving for excellence, all while treating people well.

Overall, 2025 was an outstanding year on the investment side, and we are in great shape to weather any coming storms and to take advantage of opportunities. With that, I will pass it to Amy Sherk, our CFO.

Thank you, Wade. I'll begin my comments by discussing our non-insurance company results in the fourth quarter and full year of 2025.

Non-insurance companies reported an operating income of $101 million in the fourth quarter of 2025, compared to $150 million in the fourth quarter of 2024. Operating income of the non-insurance companies increased to $397 million in the full year of 2025 from $241 million in 2024, despite a primarily non-cash impairment charge recorded at Boat Rocker Media of $109 million in 2025 before the company deconsolidated Boat Rocker on August 1st.

The increase in operating income in 2025 primarily reflected the acquisition of Sleep Country on October 1st, 2024, and the consolidation of Peak Achievement on December 20th, 2024, which recorded operating incomes of $92 million and $103 million, respectively, in the full year of 2025. Looking at our share of profit from investments in associates in the first in the fourth quarter and full year of 2025, we continue to report strong consolidated share of profit of associates of $252 million in the fourth quarter of 2025, principally related to share of profit of $123 million from Eurobank, $70 million from Poseidon, and $34 million from EXCO Resources.

In the full year of 2025, consolidated share of profit of associates was $816 million, principally reflecting share of profit of $474 million from Eurobank, $287 million from Poseidon, $55 million from Go Digit, and $53 million from EXCO Resources, partially offset by share of loss of $65 million from Waterous Fund III and $45 million from Fairfax India's investment in Sanmar Chemicals. The decreased share of profit of associates of $816 million in 2025, compared to $956 million in 2024, primarily reflected the company's consolidation of Peak Achievement on December 20th, 2024, and its sale of Sigma on March 28th, 2025.

Peak Achievement and Sigma contributed $57 million and $34 million, respectively, to our share of profit of associates in the full year of 2024. A few comments on our transactions for the quarter.

Pursuant to the company's previously announced proposed sale of its Eurolife life operations to Eurobank, at December 31st, 2025, the company had classified assets of $3.4 billion and liabilities of $3.6 billion related to Eurolife life operations as held for sale in our consolidated balance sheet. The current estimated pre-tax gain on closing is approximately $350 million.

Prior to closing, the company will purchase certain investments held by the Eurolife life operations, which will affect the gain ultimately realized on the sale. The proposed transactions are subject to entry into definitive agreements and customary closing conditions, and are expected to close in the second quarter of 2026.

Subsequent to December 31st, 2025, on February 5th, 2026, AGT filed an amended and restated preliminary prospectus with Canadian securities regulatory authorities for a proposed $460 million Canadian initial public offering and secondary offering of its common shares, of $425 million as a treasury issuance and $35 million in a secondary sale, with an expected price range between $26 and $30 Canadian per common share. Both Fairfax and AGT's CEO are not selling any common shares in the offering.

Subsequent to AGT's initial public offering, the company expects to have, directly or indirectly, an equity interest in AGT of approximately 51 to 53%. A few words on our IFRS 17 results.

The company's consolidated statement of earnings in the fourth quarter and full year of 2025 were also impacted by changes in interest rates, and specifically the effects it had on discounting on prior-year net losses on claims and our fixed income portfolio. Net earnings of $1.2 billion and $4.8 billion in the fourth quarter and full year of 2025 included a net benefit of only $9 million and a net loss of $59 million, reflecting the effects of changes in interest rates during the quarter and for the full year of 2025.

The net benefit in the fourth quarter comprised of a net benefit on insurance contracts and reinsurance contracts held of $42 million and net losses on bonds of $34 million. The net loss for the full year was comprised of a net loss on insurance contracts and reinsurance contracts held of $444 million and net gains on bonds of $385 million.

Comparatively, net earnings of $1.2 billion and $3.9 billion in the fourth quarter and full year of 2024 included net losses of $438 million and $530 million, respectively, reflecting the effects of changes in interest rates. The net losses in the fourth quarter and full year of 2024 comprised of net losses on bonds of $1.1 billion and $731 million, partially offset by the net benefits of insurance contracts and reinsurance contracts held of $613 million and $201 million, respectively.

When you compare the year-over-year change in interest rates on a pre-tax basis for the quarter and year, the changes resulted in an approximate $446 million and $471 million positive movement in our pre-tax earnings. This demonstrates our general expectation that our interest rate risk is now partially mitigated.

I will close with a few comments on our financial condition. Maintaining an emphasis on financial soundness, at December 31st, 2025, the company held $2.7 billion of cash and investments at the holding company, had access to our $2 billion unsecured revolving credit facility, an additional $2.2 billion at fair value of investments in associates and consolidated non-insurance companies owned by the holding company.

Holding company cash and investment support the company's decentralized structure and enable the company to deploy capital efficiently to its insurance and reinsurance companies. At December 31st, 2025, the excess of fair value over carrying value of investments in non-insurance associates and market-traded consolidated non-insurance subsidiaries was $3.1 billion, compared to $1.5 billion at December 31st, 2024, with $1.4 billion of that increase related to an increase in the publicly traded market price of Eurobank.

The pre-tax excess of $3.1 billion is not reflected in the company's book value per basic share, but is regularly reviewed by management as an indicator of investment performance. The company's total debt to total capital ratio, excluding non-insurance companies, increased to 26.2% at December 31st, 2025, compared to 24.8% at December 31st, 2024.

This primarily reflected increased total debt and redemptions of the company's Series E, S, G, H, I, J, and M preferred shares, partially offset by increased common shareholders' equity. On the redemption of our Canadian-dollar-denominated preferred shares in 2025, we recognized a gain of $187 million in equity on the favorable foreign exchange movement.

Common shareholders' equity increased by approximately $3.3 billion to $26.3 billion at December 31st, up from $23 billion at December 31st, 2024, primarily reflecting net earnings attributable to shareholders of Fairfax of $4.8 billion and other comprehensive income of $425 million, primarily related to unrealized foreign currency translation gains, net of hedges, as a result of the strengthening of foreign currencies against the US dollar, partially offset by purchases of just over 1 million subordinate voting shares for cancellation for cash consideration of $1.6 billion or $1,614.69 per share, and payments of common and preferred share dividends totaling $368 million. Subsequent to December 31st, 2025, the company has purchased another 130,573 of its subordinate voting shares for cancellation at an aggregate cost of $220 million or $1,684.70 per share.

In closing, book value per basic share was $1,260 at December 31st, 2025, compared to $1,060 at December 31st, 2024, representing an increase per basic share in the full year of 2025 of 20.5%, adjusted for our $15 per common share dividend paid in the first quarter. That concludes my remarks, and I will now turn the call back to Peter.

Thank you, Amy. We are now happy to take any questions that you might have.

Denise?

Good morning, everybody. Peter, just maybe a discussion around some of the premium declines we saw Q4 over Q4, softness, competition within certain business lines, and is there any difference between what you're seeing in North America and the global insurers?

Thanks.

Sure. Thanks, Stephen.

In the fourth quarter, we continue to see softening rates across our companies, and that's making it a little more challenging to grow. As we've said in the past, all our companies are focused on underwriting profit and discipline.

We have no incentives to grow the top line throughout the group. We do benefit greatly from our diversified operations by geography and by product.

The wide variety of the markets and segments that our companies participate in allows us to grow in more attractive areas while curtailing activity in less attractive ones. This is a significant strength for us.

At a high level, we saw price increases in the low single-digit level, with higher price increases in casualty lines, and declines in property, D&O, and cyber. The property catastrophe business, especially on the reinsurance side, we're seeing the most pressure on pricing, but again, that's coming from very strong margins.

In Canada in Northbridge, we've seen pricing up about 2% in the year. You may know the personal lines are probably up closer to 9%, 10%, but that's not a big part of our business.

Crum & Forster is about 5.5%. Odyssey, with more of their premium coming from the reinsurance side, it's flat to 2% 2%.

Then in Lloyd's, we've seen probably the most pricing pressure. At Brit and Ki, pricing is down about 5%.

Then Allied World, they're about flat or up 1%. On the international side, it varies across the group, but in a lot of those markets, the pricing tends to be a little less cyclical than in the North American markets.

The one thing, though, when pricing levels aren't there, premium isn't growing, this frees up capital for us, and then capital allocation becomes very important. Historically, we have allocated capital very well, and we continue to have many attractive opportunities to deploy it.

This includes buying back our own stock, as we've said before, buying minority interest in our own companies, or investing, as we have been, in very good companies, our associates and our non-insurance consolidated companies like a Sleep Country or a Peak. We think we have a lot of great opportunity.

As I said, the market, we still see softening, but within Fairfax, we have many different sources of earnings, and we can benefit from that.

Thank you. Next question, please.

Thanks very much. Good morning.

I asked this question maybe a little over a year ago, but sort of the tax rate outlook going forward. The answer I got was between 22 and 25.

Now, in 2024, it was 24%, but in 2025, it was 18%. I'll ask the question again about a tax rate outlook going forward, and why was 2025 different than sort of that outlook you provided a little more than a year ago, and what is your outlook for it going forward?

Thanks.

No, thanks, Tom. There's a lot of activity on the tax side, and our tax people in Canada and the United States have been extremely busy.

You might have known there's the Pillar Two tax that has been coming through, and in Canada we have the EIFEL taxes. Amy, do you want to comment a little bit more on the specifics?

Sure. Thanks, Peter.

Thanks for the question, Tom. We would continue to give the advice that was given last year, which is an appropriate range for our effective tax rate every year going forward.

This year, we had some things going through that were unique. One of them would be that we had some significant unrealized mark-to-market gains in India, and those gains attract the capital gains rate that is significantly lower than the 26.5% statutory rate here in Canada.

That was a big driver. There has also been a lot of action by domestic governments in terms of introducing their own minimum tax rates.

With that come some tax impact here in Canada when we look at our global minimum tax or our Pillar Two tax. Those were really the big drivers this year that lowered our tax rate.

I think the advice provided last year still remains to be true.

Thanks, Amy. As Tom, we rate right across the world, it really depends where our earnings come from, and that can affect the ultimate tax rate that we pay.

Next question, please.

Great. Thanks.

Hey,

good morning, Peter. Thanks for taking my questions.

Or my question, I guess. Your underwriting income for the year was about $1.8 billion.

That's 2 years in a row now of $1.8. I know you've got the $1.5 billion plus guidance.

Just how are you thinking about that guidance going forward? I heard your commentary around the softening pricing, but we're also seeing your earnings through the cat losses and you've got favorable releases.

Putting it all together, just wanted your outlook there on the underwriting income guide. Thanks.

Sure. No, we still target a $1.5 billion of underwriting profit.

That's what we're looking for. You're right.

In the last 2 years, it's been a little higher than that, 1. a little less than $1.8 in 2024, a little more than $1.8 in 2025.

Generally speaking, the cat losses have also been relatively benign or as expected. We haven't had any major catastrophes.

With that said, with our premium base the way it is, we are able to absorb significant amount of catastrophes now versus if you look 10 10-15 years ago. We're just trying to be conservative.

We think our reserves are extremely strong. We just came through a hard market.

As I said in my opening remarks, we've had 19 years of favorable reserve development. I think that we have a great process in place for setting our reserves throughout the group.

It's all done at the local levels with oversight at the Fairfax holding company. Good process in place.

I think the $1.5 billion is a good point. Next question, please.

Thanks. Just wanted to go back to the premium growth discussion and maybe get a little bit more nuance on two particular business lines.

One would be the Odyssey Group, down in the fourth quarter 10%, and then the offset would be Crum & Forster up 27% in the fourth quarter on gross premiums written. Can you sort of dig into those two businesses a little bit more as to what was driving some of those results, either new business or on non-renewed accounts, something like that, that could be driving some more outsized performance than just price?

Sure. I think if you look at our premium volume by quarter, typically, Jaeme, the fourth quarter is by far the lowest.

The first quarter is usually the highest when we write most of our business. You're coming off a smaller base.

We don't look a lot on a quarter-to-quarter basis. For Crum & Forster, premium was up, and it's really on their specialty lines of business, which are less price sensitive.

In Crum, it's really the NH division there. They've been growing.

Through Gary McGeddy, they have an outstanding specialty there, and they've been growing not only in the United States, but taking their NH business internationally. That's a big driver there.

On Odyssey, it's more on that reinsurance side. Again, it's a fourth quarter.

Not a ton of business is written. It's more 1/1.

Any fluctuations there make the percentage change a little emphasized. I would say those are the two two main things.

Next question, please.

Thanks for taking my call, and thanks for the wonderful results. With that said, my question is, is there any end in sight to these losses from the run-off business?

You've disclosed them separately for, I believe, the last 10 years, and when I add them up, it comes to almost $1.6 billion. Now, I understand that there are reserves associated with this business, and they produce investment gains, but I can't imagine that when you sort of entered into these deals you expected losses of this magnitude.

A little bit of color there would be great. Thank you.

Sure, good question. A lot of these liabilities we inherited through acquisitions back in the late '90s, early 2000s, and they're really latent liabilities.

There are asbestos, environmental, pollution claims, and we have a specialized team that we've segregated these claims, and they're focused on it. I would say personally they're best-in-class.

They've been managing these liabilities for a long time, but they're very difficult claims. In the United States, it's very litigious, and especially on the asbestos front, some of these claims are 30-40 years old, and we look at them every year.

Typically, you can't use general actuarial techniques to come up with the reserves, it's a matter of reacting to what happens. Hi, Denise.

Are you there?

Hi, there. Sorry about that.

We had a small disconnection, but we're ready to take more questions. Next question, please.

Thank you for taking the question. Fairfax has roughly a $1 billion investment in Fairfax India at current pricing, I believe.

Within Fairfax India, roughly half the portfolio is the airport investment, BIAL. There's been a little bit of discussion historically about taking BIAL, getting it a public listing, and I'm just curious if you could provide an update on that progress.

Thank you.

Sure. No, I think that's more of a Fairfax India question, but yeah, the Bangalore Airport is a significant investment for Fairfax India, and one obviously we're very, very excited about.

I know they are in the process of having conversations with the regulators, but there's not a lot more that I can say on the IPO process. Thank you, though, for the question.

Next question, please.

Thanks for taking the follow-up. With respect to the Eurolife transaction, $3.4 billion in assets, I assume, then, are not part of your general fund anymore.

Do I have that correct? Presumably, you're making investment interest and dividend income on those assets.

Would there be a decline in interest and dividend income going forward with respect to losing those $3.4 billion in assets? Where would that be?

Would that be in your interest and dividend income? I'm just trying to figure out what line.

Or would that be in your life and run-off business? Where would that show up?

Sure.

The majority of that would be in our life and run-off business. The P&C business is remaining with us, so that's going to continue.

Tom, we're going to get approximately $950 million dollars for the life business, and eventually we'll deploy that, and that will create earnings off that as well. Generally speaking, yes, the interest and dividend income will come off the life and run-off segment.

Amy, anything to add?

The only thing I would add is that held for sale accounting means that we just have one line on our balance sheet for the held for sale assets and one line for the held for sale liabilities, and we continue to mark to market those investments and record any income earned on those investments until the transaction is closed.

Thank you, Amy. Thank you, Tom.

Next question, please.

Hey, Jaeme.

Thanks. Just wanted to go back to the capital deployments, and you mentioned you have capital freed up here with a softer market.

Buybacks have been fairly active over Q4 and now year-to-date. Maybe talk through how you're looking at buybacks in the next few months here or through 2026.

The timing of that minority interest, if you can just refresh that, and the total return swap, how does that factor into your capital deployment plan?

Sure. I guess like I said, with the premium flattening off, it can produce excess capital at our insurance operations that produce more dividends up to the holding company.

First and foremost, our financial strength, as we always said, is our number one key. That's to have significant cash in the holding company.

We don't want any debt maturities for the foreseeable future, and then our line of credit. Financial strength is number one.

Number two is, like you said, we've been buying back our own stock at these prices. We think we're pleased to do that.

We always look at what the intrinsic value is, and that factors into our capital allocation decision-making. On the Fairfax TRS, we've always said that that's an investment.

We continue to believe it's a very good investment, we continue to hold that. Then buying back Allied and Odyssey, I think, again, both companies we know very well.

They're both performing exceptionally well. We'd like to do that over time as well.

Those are really the things we're looking at today. Always subject to change, of course, Jaeme.

Thank you. Next question, please.

Great. Thanks for taking the follow-up.

Maybe a question for Wade on the investment book. We're seeing quite a dislocation in markets today, and so are you thinking about maybe shifting some of the positions, taking advantage, and being opportunistic in this environment?

Love to get some color on that. Thanks.

I guess I would say we have a very robust, skilled investment team, and we're constantly looking at all securities. We underwrite for 15%, and as you say, maybe you're talking about the software and AI, but we're working very hard.

Anytime we uncover any opportunities, we will act. That's what I'd say.

We're watching it all very closely, as you can imagine.

Thank you, Bart. Next question, please.

Thank you, and good morning. Thank you.

How are you balancing share repurchases versus holding company liquidity, and what valuation trigger would make you significantly more aggressive on buybacks?

That's a difficult question. Again, we discuss it internally all the time.

We have many options, right, with excess capital, with excess dividends coming up. All I really can say at these prices today, we continue to buy back our stock.

We did a significant amount last year, but going forward, things change, and we are constantly evaluating that, and very difficult to put a number on it. Thank you for your question.

We'll take one more question, please.

Hey, thanks for taking the call. New shareholder, still getting aligned with the way you guys think.

Loving it so far. You guys seem like risk masters, and I'm very much enjoying reading about your history and current actions going forward.

Question is a very broad one. What currently are the biggest systemic risks you see to the Fairfax system?

Both in insurance and investments, how are you approaching that to mitigate them? Specifically, how does that relate to the Kennedy Wilson partnership?

How does that partnership de-risk the system, if at all? Thank you.

No, thank you. Thank you very much.

No, I think there's two things in this business, and we have the insurance operations, and what we've built over the last 40 years, I think, is quite substantial, very difficult to replicate. We have essentially 25 separate insurance companies writing $33 billion across the globe, and some of the best insurance professionals running these companies.

On average, our CEOs and presidents have almost 20 years experience. That includes, last year, we had a succession of five separate CEOs that went seamlessly.

Always concerned on the insurance side on the catastrophe exposure, which we monitor constantly, and of course, reserves. Again, we have a very strong track record on the reserving side.

On the investment side, we've have a long-term track record there. I think the investment philosophy of value investing serves us very well, with protection on the downside, and has been a significant strength over time.

On Kennedy Wilson, we have a 12-year or 16-year, I guess, relationship with Kennedy Wilson. They've effectively managed our real estate and mortgage business over that time period and has provided us with outstanding returns, and we don't have that capability, at least at that size and scale, in-house.

We're very excited of what they bring to the table and looking very forward to working with them going forward. Thank you for your question.

If there's no more questions, I'll pass it back to Denise.

Thanks.