Good competitive position of the insurance operations Good and improving operating performance Significant amount of holding company cash maintained Strong consolidated capitalization (including the elimination of $1.6 billion in affiliated investments, adjustments for finite reinsurance, and potential reserves charges) Frequent and sizeable reserve charges High reinsurance recoverables High debt leverage Utilization of finite reinsurance (although captured at the current rating level following adjustments to capital adequacy) [Editor's Note: This article, originally published Sept. 14, 2005, has been republished to reflect corrected 2004 data in the table.] The counterparty credit rating on Fairfax Financial Holdings Ltd. (NYSE: FFH) is based on the company's improving competitive position, strong consolidated capitalization (even after adjustments for finite reinsurance), and improved earnings and financial flexibility.
