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AM Best Upgrades Credit Ratings of Fairfax Financial Holdings Limited, Its Subsidiaries and Allied World Assurance Company Holdings, Ltd.
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” (...
About this update from Fairfax Financial Holdings Limited
[{"type":"text","content":"AM Best Upgrades Credit Ratings of Fairfax Financial Holdings Limited, Its Subsidiaries and Allied World Assurance Company Holdings, Ltd.\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n.bwlistdisc { list-style-type: disc }\n \n\n\n\n\n AM Best\n \n has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” (Excellent) from “bbb+” (Good) and upgraded the Long-Term Issue Credit Ratings (Long-Term IR) on the unsecured debt and preferred equity of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada) [TSX: FFH]. In addition, AM Best has upgraded the Long-Term ICRs to “a-” (Excellent) from “bbb+” (Good) of Fairfax (US) Inc. (Delaware) and Zenith National Insurance Corp. (headquartered in Woodland Hills, CA), both of which are indirectly, wholly owned downstream holding companies of Fairfax. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. (See below for a detailed listing of Long-Term IRs.)\n \n\n Fairfax’s rating upgrades reflect the group’s improved earnings in recent years and prospectively. In 2022, Fairfax deployed significant cash assets into higher-yielding fixed-income instruments, which bolstered reliable streams of dividend and interest income. At the same time, the group’s underwriting performance recorded record profits despite elevated catastrophe activity. These enhanced returns have allowed the group to grow its capital base and further expand its projected run-rate for operating earnings in future cycles.\n \n\n At the same time, AM Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term ICRs to “aa-” (Superior) from “a+” (Excellent) of the operating affiliates of Allied World Assurance Company Holdings, Ltd.’s (Allied World Holdings) (Bermuda), collectively referred to as Allied World. Concurrently, AM Best has upgraded the Long-Term ICRs to “a-” (Excellent) from “bbb+” (Good) of Allied World Holdings and its downstream holding company, Allied World Assurance Company Holdings I, Ltd (Bermuda). AM Best also has revised the outlooks to stable from positive. (See below for a detailed listing of the companies and ratings.)\n \n\n The ratings of Allied...