AM Best Upgrades Credit Ratings of Fairfax Financial Holdings Limited, Its Subsidiaries and Allied World Assurance Company Holdings, Ltd.

May 22, 2025 at 17:37 PM EDT

AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” (Excellent) from “bbb+” (Good) and upgraded the Long-Term Issue Credit Ratings (Long-Term IR) on the unsecured debt and preferred equity of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Canada) [TSX: FFH]. In addition, AM Best has upgraded the Long-Term ICRs to “a-” (Excellent) from “bbb+” (Good) of Fairfax (US) Inc. (Delaware) and Zenith National Insurance Corp. (headquartered in Woodland Hills, CA), both of which are indirectly, wholly owned downstream holding companies of Fairfax. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. (See below for a detailed listing of Long-Term IRs.)

Fairfax’s rating upgrades reflect the group’s improved earnings in recent years and prospectively. In 2022, Fairfax deployed significant cash assets into higher-yielding fixed-income instruments, which bolstered reliable streams of dividend and interest income. At the same time, the group’s underwriting performance recorded record profits despite elevated catastrophe activity. These enhanced returns have allowed the group to grow its capital base and further expand its projected run-rate for operating earnings in future cycles.

At the same time, AM Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term ICRs to “aa-” (Superior) from “a+” (Excellent) of the operating affiliates of Allied World Assurance Company Holdings, Ltd.’s (Allied World Holdings) (Bermuda), collectively referred to as Allied World. Concurrently, AM Best has upgraded the Long-Term ICRs to “a-” (Excellent) from “bbb+” (Good) of Allied World Holdings and its downstream holding company, Allied World Assurance Company Holdings I, Ltd (Bermuda). AM Best also has revised the outlooks to stable from positive. (See below for a detailed listing of the companies and ratings.)

The ratings of Allied World reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management.

Allied World’s rating upgrades stem from a revision of the operating performance assessment to strong from adequate. Allied World has benefited from improved underwriting ratios, as well as stronger streams of dividend and interest income in recent years. AM Best views Allied World’s solid recent and prospective underwriting results as reflective of sound cycle management strategies that have reduced volatility, while at the same time steadily increasing underwriting income.

The FSR has been upgraded to A+ (Superior) from A (Excellent) and the Long-Term ICRs to “aa-” (Superior) from “a+” (Excellent) with the outlooks revised to stable from positive for the following operating subsidiaries of Allied World Assurance Company Holdings, Ltd:

Vantapro Specialty Insurance Company
Allied World Assurance Company, Ltd
Allied World Surplus Lines Insurance Company
Allied World Assurance Company (U.S.) Inc.
Allied World National Assurance Company
Allied World Specialty Insurance Company
Allied World Insurance Company
Allied World Assurance Company (Europe) Designated Activity Company

The following Long-Term IRs have been assigned with stable outlooks:

Fairfax Financial Holdings Limited—

-- “a-” (Excellent) on USD 500 million 5.75% senior unsecured notes, due 2035

-- “a-” (Excellent) on USD 400 million 6.50% senior unsecured notes, due 2055

The following Long-Term IRs have been upgraded with the outlooks revised to stable from positive:

Zenith National Insurance Corp.—

-- to “bbb+” (Good) from “bbb” (Good) on USD 77.3 million 8.55% subordinated deferrable debentures, due 2028

Fairfax Financial Holdings Limited—

-- to “a-” (Excellent) from “bbb+” (Good) on USD 125 million 8.3% senior unsecured notes, due 2026

-- to “a-” (Excellent) from “bbb+” (Good) on CAD 450 million 4.7% senior unsecured notes, due 2026

-- to “a-” (Excellent) from “bbb+” (Good) on CAD 650 million 4.25% senior unsecured notes, due 2027

-- to “a-” (Excellent) from “bbb+” (Good) on EUR 750 million 2.75% senior unsecured notes, due 2028

-- to “a-” (Excellent) from “bbb+” (Good) on USD 600 million 4.85% senior unsecured notes, due 2028

-- to “a-” (Excellent) from “bbb+” (Good) on CAD 500 million 4.23% senior unsecured notes, due 2029

-- to “a-” (Excellent) from bbb+” (Good) on USD 650 million 4.625% senior unsecured notes, due 2030

-- to “a-” (Excellent) from “bbb+” (Good) on USD 600 million 3.375% senior unsecured notes, due 2031

-- to “a-” (Excellent) from “bbb+” (Good) on CAD 850 million 3.95% senior unsecured notes, due 2031

-- to “a-” (Excellent) from “bbb+” (Good) on USD 750 million 5.625% senior unsecured notes, due 2032

-- to “a-” (Excellent) from “bbb+” (Good) on USD 750 million 6% senior unsecured notes, due 2033

-- to “a-” (Excellent) from “bbb+” (Good) on CAD 450 million 4.73% senior unsecured notes, due 2034

-- to “a-” (Excellent) from “bbb+” (Good) on USD 125 million 7.75% senior unsecured notes, due 2037

-- to “a-” (Excellent) from “bbb+” (Good) on USD 1 billion 6.35% senior unsecured notes, due 2054

-- to “a-” (Excellent) from “bbb+” Good) on CAD 250 million 5.23% senior unsecured notes, due 2054

-- to “a-” (Excellent) from “bbb+” (Good) on USD 600 million 6.1 % senior unsecured notes, due 2055

-- to “bbb” (Good) from “bbb-” (Good) on CAD 193.0 million Series G cumulative, five-year rate reset preferred shares

-- to “bbb” (Good) from “bbb-” (Good) on CAD 57.0 million Series H cumulative, floating rate preferred shares

-- to “bbb” (Good) from “bbb-” (Good) on CAD 260.5 million Series I cumulative, five-year rate reset preferred shares

-- to “bbb” (Good) from “bbb-” (Good) on CAD 39.5 million Series J cumulative, floating rate preferred shares

-- to “bbb” (Good) from “bbb-” (Good) on CAD 237.5 million Series K cumulative, five-year rate reset preferred shares

The following indicative Long-Term IRs on securities available on the universal shelf registration have been affirmed with the outlooks revised to stable from positive:

Fairfax Financial Holdings Limited—

-- to “a-” (Excellent) from “bbb+” (Good) on senior unsecured debt

-- to “bbb+” (Good) from “bbb” (Good) on subordinated debt

-- to “bbb” (Good) from “bbb-” (Good) on preferred shares

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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. For more information, visit www.ambest.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250522542640/en/

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+1 908 882 1893

dan.hofmeister@ambest.com

Gregory Dickerson

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+1 908 882 1737

gregory.dickerson@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

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AM Best Upgrades Credit Ratings of Fairfax Financial Holdings Limited, Its Subsidiaries and Allied World Assurance Company Holdings, Ltd.

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