Fairfax Financial slides after BMO cuts rating on operating income outlook

Shares of Canadian insurer Fairfax Financial Holdings FFH.TO down 4.90% at C$2303.71

BMO downgrades FFH to "market perform" from "outperform"

Says operating income outlook has turned muted due to softer property and casualty insurance markets

BMO warns FFH’s strong 2023–25 investment gains won’t be repeatable, pointing to a drop in reported ROE to about 11% in 2026–27 (from 21%/16%/17% over 2023–25)

Much of FFH’s recent outperformance came from buoyant markets and an unusually large boost from its total return swap on shares, it says

5 of 7 brokerages rate stock "buy", 2 "hold"; their median PT is C$2965.47 - data compiled by LSEG

Including session's move, FFH up 14.07% in the last 12 months