Strong and geographically diversified business profile. Strong investment management. Strong consolidated financial profile. Above-average tolerance for market risk. Exposure to the pricing cyclicality of the property/casualty marketplace as well as to catastrophes. Sizable run-off reserves subject to potential adverse development. The counterparty credit rating on Fairfax Financial Holdings Ltd. (FFH) incorporates the company's strong and geographically diversified business profile, strong investment management, and a strong consolidated financial profile. Partially offsetting these positive factors are the company's exposure to market risk, cyclical industry conditions and natural catastrophes, as well as sizable, though decreasing, run-off liability exposures. FFH's strong and competitive market position is based on its sizable geographic footprint and sector diversification. Its three principal operating units include wholly owned Odyssey
