Best’s News & Research Service - November 20, 2012 04:11 PM (EST)
A.M. Best Withdraws Ratings of Certain Run-off Subsidiaries of Fairfax Financial Holdings Limited
OLDWICK, N.J. //BestWire// - A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating (FSR) of B++ (Good) and the issuer credit rating (ICR) of “bbb+” of RiverStone Insurance Limited, formerly Brit Insurance Limited. The outlook for both ratings is stable.
The rating actions follow the completion of the sale of RiverStone Insurance Limited to RiverStone Holdings Limited, an indirect subsidiary of Fairfax Financial Holdings Limited (Fairfax) [TSX: FFH and FFH.U] (Toronto, Canada).
At the same time, A.M. Best has affirmed the FSR of B++ (Good) and the ICRs of “bbb” of Fairmont Specialty Insurance Company, Fairmont Premier Insurance Company and Fairmont Insurance Company (together the Fairmont Specialty Group) (San Diego, CA) and General Fidelity Insurance Company (Charleston, SC). The Fairmont Specialty Group is no longer associated with the Fairmont Specialty brand, which is used by Crum & Forster an affiliated group of companies. In addition, A.M. Best has affirmed the FSR of B+ (Good) and the ICRs of “bbb-” of TIG Insurance Company (San Diego, CA) and Clearwater Insurance Company (Stamford, CT). The outlook for all ratings is stable. These companies are insurance subsidiaries of their ultimate parent company, Fairfax, and make up a portion of the RiverStone Group, Fairfax’s U.S.-based insurance, reinsurance and service subsidiaries, specializing in the management of legacy and run-off insurance businesses and portfolios.
Concurrently, A.M. Best has withdrawn the ratings of these run-off companies as Fairfax has requested that the companies no longer participate in A.M. Best’s interactive rating process.
The remaining ratings of Fairfax are unchanged. (Please see A.M. Best’s press release dated May 3, 2012).
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.