Northbridge Financial Corporation (NBFC) reported a 4.5 per cent decrease in its direct written premiums in 2025. They totalled US$2.4 billion, representing a decline of US$114 million compared with the volume written in the 2024 fiscal year.
These results were published in the press release issued by Fairfax Financial Holdings, which released its quarterly results and preliminary annual statement on February 19.
Since 2022, Fairfax has not reported its results in Canadian currency. In addition, the company no longer discloses the underwriting income of its various property and casualty insurance subsidiaries, nor does it disclose NBFC’s operating income.
Premiums
Net premiums earned fell by 4.8 per cent for the full 2025 fiscal year, reaching US$2.1 billion in 2025. This represents a decrease of US$107 million compared with the 2024 fiscal year.
Fairfax’s other North American property and casualty insurance subsidiaries, namely Crum & Forster (+11 per cent) and Zenith National (9 per cent), nevertheless recorded increases in their net premiums earned in 2025 compared with the previous fiscal year.
Combined ratio
NBFC’s combined ratio stood at 88.7 per cent in 2025. This represents a difference of 0.6 percentage points compared with the combined ratio of 89.3 per cent reported for the 2024 fiscal year.
As in the previous two years, Northbridge’s combined ratio in 2025 was lower than that of Fairfax’s other North American property and casualty insurance subsidiaries, and it was also below the combined ratio of all property and casualty insurance and reinsurance subsidiaries.
Fairfax results
Across all its North American subsidiaries, Fairfax’s insurance result amounted to US$1.1 billion in 2025, representing an increase of US$28 million, or 2.5 per cent, over the previous year.
With premium volume of more than US$33.6 billion in property and casualty insurance and reinsurance in 2025, an increase of 2.4 per cent over 2024, Fairfax’s insurance result totalled US$4.2 billion in 2025, down US$451 million, or 10 per cent, compared with the 2024 fiscal year.
Net earnings attributable to Fairfax common shareholders amounted to US$4.8 billion in 2024, up US$897 million, or 23 per cent, compared with the US$3.9 billion reported in 2024.
Total catastrophe losses in 2025 generated US$1.2 billion in losses for Fairfax, representing an impact of 4.8 percentage points on Fairfax’s property and casualty combined ratio, including 2.8 points attributable to the January 2025 fires in the Los Angeles area. Catastrophe losses increased by US$143 million compared with the previous year.
The largest catastrophe losses in 2025 were related to the California wildfires, which resulted in US$723 million in losses, and Hurricane Melissa, with insured losses estimated at US$79.3 million.
