NEW YORK (Standard&Poor's) July 21, 2006--Standard&Poor's Rating Services said today that its ratings on Fairfax Financial Holdings Ltd. (Fairfax; BB/Stable/--) and Commonwealth Insurance Co. (Commonwealth), Federated Insurance Co. of Canada (Federated), Lombard General Insurance Co. of Canada (Lombard), and Markel Insurance Co. of Canada (Markel), the operating subsidiaries of Northbridge Financial Corp. (collectively Northbridge; each operating unit is rated BBB/Stable/--) are unaffected by Commonwealth's estimated C$73.7 million net charge due to additional development on its marine losses relating to Hurricanes Katrina, Rita, and Wilma. Northbridge's capital adequacy is strong and operating performance is supported by Federated, Markel, and Lombard performing at strong levels in 2006. Northbridge is expected to reduce premiums and lower volatility related to
