Good and diversified competitive position. Good operating performance. Strong liquidity supported by holding company cash. Very strong investment team. Lack of a strong earnings track record in a softening market. High, but decreasing, reinsurance recoverables. Historical utilization of finite reinsurance (reduced significantly in 2006). The counterparty credit rating on Fairfax Financial Holdings Ltd. (FFH) is based on the company's good competitive position, substantially improved earnings in 2007, strong liquidity, and very strong investment team. Offsetting these positive factors are the historical utilization of finite reinsurance, high reinsurance recoverables (although decreasing), and lack of a strong earnings track record in a softening market. The competitive position of FFH's consolidated operating companies, including runoff entities, (collectively Fairfax) is good based on its
