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Fairfax Financial Holdings (TSX:FFH) Moat Score : 6/10 (As of Jul. 02, 2025)


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What is Fairfax Financial Holdings Moat Score?

Fairfax Financial Holdings has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Fairfax Financial Holdings has Narrow Moat: Fairfax Financial Holdings has a strong narrow moat due to its diversified insurance operations and significant market presence. The company benefits from economies of scale and a strong brand. However, the competitive nature of the insurance industry and moderate customer switching costs limit its moat to narrow.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Fairfax Financial Holdings might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Competitive Comparison of Fairfax Financial Holdings's Moat Score

For the Insurance - Property & Casualty subindustry, Fairfax Financial Holdings's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Fairfax Financial Holdings's Moat Score Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Fairfax Financial Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where Fairfax Financial Holdings's Moat Score falls into.


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Fairfax Financial Holdings  (TSX:FFH) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Fairfax Financial Holdings Moat Score Related Terms

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Fairfax Financial Holdings Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Fairfax Financial Holdings Ltd (TSX:FFH) » Definitions » Moat Score
Comparable Companies
TSX:IFC TSX:DFY PGR CB TSE:8766 TRV ALL HKSE:01339 HKSE:02328 HIG TSE:8725 TSE:8630 WRB MKL ASX:QBE CINF L ASX:SUN WAR:PZU ASX:IAG
Traded in Other Exchanges
FRFXF.PFD:USA FRFHF:USA FRFFF.PFD:USA FAXXF.PFD:USA FAXRF.PFD:USA FFX:Germany FFX:Germany FFH.U:Canada FFH.PR.K.PFD:Canada FFH.PR.J.PFD:Canada FFH.PR.I.PFD:Canada FFH.PR.H.PFD:Canada FFH.PR.G.PFD:Canada
Address
95 Wellington Street West, Suite 800, Toronto, ON, CAN, M5J 2N7
Website
https://www.fairfax.ca
Fairfax Financial Holdings provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chair and CEO, since its formation in 1985.

Fairfax Financial Holdings Headlines

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