AM Best Upgrades Credit Ratings of Fairfax Financial Holdings Limited, Its Subsidiaries and Allied World Assurance Company Holdings, Ltd.
OLDWICK, N.J. — 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.)
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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.
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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.)
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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.
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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.
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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:
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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
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The following Long-Term IRs have been assigned with stable outlooks:
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Fairfax Financial Holdings Limited—
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— 'a-' (Excellent) on USD 400 million 6.50% senior unsecured notes, due 2055
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The following Long-Term IRs have been upgraded with the outlooks revised to stable from positive:
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Zenith National Insurance Corp.—
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— to 'bbb+' (Good) from 'bbb' (Good) on USD 77.3 million 8.55% subordinated deferrable debentures, due 2028
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Fairfax Financial Holdings Limited—
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 125 million 8.3% senior unsecured notes, due 2026
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— to 'a-' (Excellent) from 'bbb+' (Good) on CAD 450 million 4.7% senior unsecured notes, due 2026
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— to 'a-' (Excellent) from 'bbb+' (Good) on CAD 650 million 4.25% senior unsecured notes, due 2027
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— to 'a-' (Excellent) from 'bbb+' (Good) on EUR 750 million 2.75% senior unsecured notes, due 2028
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 600 million 4.85% senior unsecured notes, due 2028
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— to 'a-' (Excellent) from 'bbb+' (Good) on CAD 500 million 4.23% senior unsecured notes, due 2029
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— to 'a-' (Excellent) from bbb+' (Good) on USD 650 million 4.625% senior unsecured notes, due 2030
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 600 million 3.375% senior unsecured notes, due 2031
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— to 'a-' (Excellent) from 'bbb+' (Good) on CAD 850 million 3.95% senior unsecured notes, due 2031
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 750 million 5.625% senior unsecured notes, due 2032
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 750 million 6% senior unsecured notes, due 2033
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— to 'a-' (Excellent) from 'bbb+' (Good) on CAD 450 million 4.73% senior unsecured notes, due 2034
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 125 million 7.75% senior unsecured notes, due 2037
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 1 billion 6.35% senior unsecured notes, due 2054
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— to 'a-' (Excellent) from 'bbb+' Good) on CAD 250 million 5.23% senior unsecured notes, due 2054
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— to 'a-' (Excellent) from 'bbb+' (Good) on USD 600 million 6.1 % senior unsecured notes, due 2055
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— to 'bbb' (Good) from 'bbb-' (Good) on CAD 193.0 million Series G cumulative, five-year rate reset preferred shares
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— to 'bbb' (Good) from 'bbb-' (Good) on CAD 57.0 million Series H cumulative, floating rate preferred shares
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— to 'bbb' (Good) from 'bbb-' (Good) on CAD 260.5 million Series I cumulative, five-year rate reset preferred shares
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— to 'bbb' (Good) from 'bbb-' (Good) on CAD 39.5 million Series J cumulative, floating rate preferred shares
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— to 'bbb' (Good) from 'bbb-' (Good) on CAD 237.5 million Series K cumulative, five-year rate reset preferred shares
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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:
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Fairfax Financial Holdings Limited—
— to 'a-' (Excellent) from 'bbb+' (Good) on senior unsecured debt
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— to 'bbb+' (Good) from 'bbb' (Good) on subordinated debt
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— to 'bbb' (Good) from 'bbb-' (Good) on preferred shares
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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.
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Contacts
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Dan Hofmeister, CFA, FRM, CPCU
Associate Director
+1 908 882 1893
dan.hofmeister@ambest.com
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Gregory Dickerson
Director
+1 908 882 1737
gregory.dickerson@ambest.com
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This press release contains a general summary of the Warrants. Please read the Warrant Agreement filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on July 21, 2025 as it contains important information about the terms of the Warrants. Forward‐Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, about us, the Warrants and our business that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, should, would and similar expressions that convey uncertainty about future events or outcomes. 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