Fairfax Financial Holdings Limited has announced the acquisition of the remaining 13.8% ownership interest in Brit Limited from OMERS, the pension plan for Ontario’s municipal employees.
The transaction increases Fairfax’s stake in Brit to 100%, with a cash consideration of approximately $383 million.
Fairfax, a Toronto-based holding company, operates primarily through its subsidiaries in property and casualty insurance, reinsurance, and investment management.
In a related development, Brit and Ki announced that Ki will operate as a standalone entity within the Fairfax Group beginning January 1, 2025. Ki, launched by Brit in 2020 and operating as Syndicate 1618 at Lloyd’s since 2021, is recognized as the first fully digital follow syndicate.
The platform has since expanded its capabilities and sourced capacity from multiple syndicates, writing over $1 billion in gross written premium (GWP) in 2024.
Ki’s transition to an independent company reflects its operational growth. It will continue its partnership with Brit, which will remain a nominated lead for all classes of business. Ki’s role as a digital follow platform and its underwriting strategy will remain unchanged, ensuring continuity for brokers.
In financial results reported earlier this year, Fairfax posted net earnings of $915.4 million ($37.18 per diluted share after preferred share dividends) for the second quarter of 2024. The increase was largely driven by adjusted operating income of $1.12 billion and net investment gains.
As of June 30, 2024, the company’s book value per basic share had risen to $979.63, up from $939.65 at the end of 2023. This represents a 6% increase, factoring in a $15 per common share dividend paid in the first quarter.
Fairfax’s property and casualty insurance and reinsurance operations recorded an 11.5% increase in net premiums written, which totaled $6.84 billion, compared to $6.13 billion in the prior period.
Gross premiums written also rose by 10.8%, with Gulf Insurance contributing $523.8 million to net premiums written and $815.9 million to gross premiums written during 2024.
The growth in premiums was partially offset by declines at Odyssey Group, driven by the non-renewal of a significant quota share contract that had minimal underwriting profit and a reduction in US crop insurance.
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