Strong and diversified competitive position. Strong financial profile. Strong financial flexibility. Very strong investment team. Unproven underwriting success through soft market conditions. Exposure to natural catastrophes. Potential operational risks related to its decentralized business model and expanding global franchise. Sizable run-off reserves subject to potential adverse development. The counterparty credit rating on Fairfax Financial Holdings Ltd. (FFH) is based on the company's strong competitive position, strong financial profile and financial flexibility, and very strong investment team. Partially offsetting these positive factors are the company's exposure to cyclical industry conditions and natural catastrophes, as well as potential operational risks related to its decentralized business model and a sizable, though decreasing, run-off reserve position. FFH's strong and competitive market position is based
