Andrew Goffe

Andrew Goffe of Goffe Holdings asked if increased interest income would allow for higher dividend payments from insurance subsidiaries to the holding company and requested an estimate of this potential capacity.

Answer

Peter Clarke, President and COO, confirmed that as premium growth moderates, strong earnings are generating additional dividend capacity from subsidiaries. Jennifer Allen, CFO, added specifics, referencing the annual report to state that Fairfax has the capacity to dividend approximately $3 billion from its insurance companies in 2024. She also noted that $451 million in dividends had already been received from subsidiaries in Q1 2024.

Andrew Goffe of Goffe Holdings asked if increased interest income has improved the capacity to dividend cash from insurance subsidiaries to the corporate level and requested an estimate of potential dividend amounts over the next few years.

Answer

Peter Clarke, President and COO, confirmed that as premium growth levels off, the subsidiaries are generating additional dividend capacity. Jennifer Allen, CFO, added specific details, referencing the annual report to state that Fairfax has the capacity to dividend up to $3 billion in 2024 based on statutory requirements. She also noted that $451 million in dividends had already been received from subsidiaries in Q1 2024.

Asked about the capacity to dividend cash from insurance subsidiaries to the holding company, given the increase in interest income, and the potential amount.

Answer

Leveling premium growth has increased dividend capacity, giving the company flexibility. For 2024, there is an ability to dividend up to $3 billion from subsidiaries, and $451 million was already received in Q1.