Strong competitive position based on large and diversified re/insurance operations Very strong capital adequacy supported by improving earnings profile from ongoing repositioning of investments Exceptional liquidity owing to substantial amount of cash and short-term investments Less-than-adequate financial flexibility highlighting constrained investments earnings and moderately high leverage pressuring debt servicing, though with an improving outlook Historically volatile operating performance primarily related to the investments strategy partially offset by good underwriting performance Moderate risk position reflecting property catastrophe exposure, long-tail casualty reserves and relatively high tolerance for investment risk The ratings on Fairfax Financial Holdings Ltd (TSX:FFH; Fairfax) reflect its strong business risk profile and moderately strong financial risk profile. The company's credit profile benefits from its large and diversified re/insurance operations
