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AM Best Upgrades Credit Ratings of Northbridge Financial Corporation's Members; Affirms Credit Ratings of Wentworth Insurance Company Limited
AM Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) an...
About this update from Fairfax Financial Holdings Limited
[{"type":"text","content":"AM Best Upgrades Credit Ratings of Northbridge Financial Corporation’s Members; Affirms Credit Ratings of Wentworth Insurance Company Limited\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n \n\n\n\n\n AM Best\n \n has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “aa-” (Superior) from “a+” (Excellent) of the members of Northbridge Financial Corporation (Northbridge), which is composed of Federated Insurance Company of Canada, Northbridge General Insurance Corporation, Zenith Insurance Company and Verassure Insurance Company. All companies are domiciled in Ontario, Canada. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Wentworth Insurance Company Limited (Wentworth) (Barbados). The outlook of these Credit Ratings (ratings) is stable. The aforementioned companies are subsidiaries of Fairfax Financial Holdings Limited (Fairfax) [TSX: FFH].\n \n\n The ratings of Northbridge reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).\n \n\n The ratings also reflect Northbridge’s position within Canada’s commercial insurance market, diversified commercial lines franchise and strong broker distribution network. In recent years, the group has benefited from hardening rates across most lines, as well as strong underwriting results in commercial lines. Northbridge has continuously produced combined ratios and returns on equity superior to commercial lines composites.\n \n\n Additionally, these ratings acknowledge the group’s favorable reserve development in most years and the financial flexibility provided by Fairfax, which maintains financial leverage that is in line with its current ratings, as well as additional liquidity sources given its access to capital markets and lines of credit. The upgrade reflects the enhanced credit profile of the group’s parent group, Fairfax, which provides support to Northbridge in the form of investment management and shared resources.\n \n\n The ratings of Wentworth reflect its balance sheet strength, which AM Be...