S&P Global Ratings has upgraded Fairfax Financial Holding and its re\/insurance subsidiaries, which include Odyssey Re and Allied World amongst others, on revised criteria and assigned a positive outlook.<\/p>\n
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The agency raised its long-term issuer credit rating on Fairfax Financial Holdings to ‘BBB+’ from ‘BBB’. The long-term issuer credit and financial strength ratings on Fairfax’s core re\/insurance operating subsidiaries were raised to ‘A+’ from ‘A’.<\/p>\n
At the same time, S&P removed all ratings from CreditWatch, where it placed them with positive implications on December 4, 2023.<\/p>\n
These rating moves are the result of S&P\u2019s implementation of its revised criteria for analysing insurers’ risk-based capital – published on November 12, 2023 -, which led to higher levels of capitalization for Fairfax.<\/p>\n
Additionally, under this revised criteria, Fairfax enjoys a higher diversification benefit as a global re\/insurer, with a diversified business profile, leading to a material reduction in the required risk-based capital, the agency noted.<\/p>\n
It was also stated that the positive outlook reflects S&P\u2019s view that the ratings on Fairfax could be raised if the company maintains its underwriting discipline and meets or exceeds expectations while executing its strategy.<\/p>\n
The agency added: \u201cThe 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.\u201d<\/p>\n
But if Fairfax fails to meet S&P\u2019s expectations, the agency could revise its outlook to stable or lower its ratings in the next 12-24 months.<\/p>\n
The post Ratings on Fairfax\u2019s re\/insurance subs upgraded on revised criteria<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" S&P Global Ratings has upgraded Fairfax Financial Holding and its re\/insurance subsidiaries, which include Odyssey Re and Allied World amongst others, on revised criteria and assigned a positive outlook. The agency raised its long-term issuer credit rating on Fairfax Financial Holdings to ‘BBB+’ from ‘BBB’. The long-term issuer credit and financial strength ratings on Fairfax’s […]<\/p>\n","protected":false},"author":1,"featured_media":805,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/803"}],"collection":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=803"}],"version-history":[{"count":2,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/803\/revisions"}],"predecessor-version":[{"id":806,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/803\/revisions\/806"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/805"}],"wp:attachment":[{"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}