Fairfax Financial: Getting Paid To Hold Float At 7.8x Earnings

Fairfax Financial earns a Buy rating, trading at 7.8x trailing earnings and near adjusted book value. FRFHF's insurance operations remain profitable, with a 93.1% combined ratio and $459M Q2 underwriting profit despite softening premium growth. The $77.3B investment portfolio yields ~5% from high-quality, short-duration fixed income, driving rising interest income.