Research Update: Fairfax Financial Holdings? Re/Insurance Subs Upgraded To 'A+' On Revised Criteria; Off CreditWatch, Outlook Positive

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). The implementation of the revised capital model criteria had a positive impact on our view of the financial strength of Fairfax Financial Holdings Ltd. and its re/insurance operating entities (collectively, Fairfax). Therefore, we raised our ratings on Fairfax's core re/insurance subsidiaries to 'A+' from 'A' and on the holding company, Fairfax Financial Holdings Ltd., to 'BBB+' from 'BBB'. The positive outlook signals that we could raise our ratings by one notch in the next 12-24 months if Fairfax successfully manages its capitalization sustainably at the 99.95% confidence level, while meeting or exceeding our expectations of strong and more stable

...- On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). - The implementation of the revised capital model criteria had a positive impact on our view of the financial strength of Fairfax Financial Holdings Ltd. and its re/insurance operating entities (collectively, Fairfax). - Therefore, we raised our ratings on Fairfax's core re/insurance subsidiaries to 'A+' from 'A' and on the holding company, Fairfax Financial Holdings Ltd., to '###+' from '###'. - The positive outlook signals that we could raise our ratings by one notch in the next 12-24 months if Fairfax successfully manages its capitalization sustainably at the 99.95% confidence level, while meeting or exceeding our expectations of strong and more stable operating earnings, and further reducing its financial leverage....

Research Update