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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 12, 2022 03:39 PM (EDT)
AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb” (Good) to the recently announced USD 750 million, 5.625% senior unsecured notes, due Aug. 16, 2032, of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada). The outlook assigned to the Credit Rating (rating) is positive.
Fairfax intends to use substantially all of the net proceeds of this offering to purchase a portion of the non-controlling interests in Allied World Assurance Company Holdings, Ltd, and use any remainder for general corporate purposes.
Following completion of the transaction discussed above, Fairfax’s financial leverage measures are expected to be slightly elevated compared with year-end 2021. However, after accounting for the anticipated income from the sale of Crum & Forster Insurance Group’s pet business and underwriting gains through the remainder of 2022, it is anticipated that leverage ratios will fall back in line with the prior year end. Fairfax’s Long-Term Issuer Credit Rating of “bbb” (Good), its existing Long-Term IRs and the ratings of its operating insurance subsidiaries are unchanged.
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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.