S&P lifts ratings on Fairfax’s core re/insurance subsidiaries

S&P Global Ratings has raised its long-term issuer credit and financial strength ratings on Fairfax Financial’s core re/insurance operating subsidiaries, which include Odyssey Re and Allied World, to ‘AA-‘ from ‘A+’.

The rating agency has additionally raised its long-term issuer credit rating on Fairfax to ‘A-‘ from ‘BBB+’, and assigned a stable outlook.

According to S&P, the upgrade reflects its assessment of Fairfax’s sustainable and robust capitalisation—redundant at the 99.95% confidence level through year-end 2027—supported by diversified operating earnings and disciplined capital management.

It also highlights Fairfax’s consistent performance, in line with other ‘AA-‘ rated peers.

“Fairfax has solidified its very strong competitive position by growing organically and making strategic acquisitions, supported by large and diversified re/insurance operations well established in their respective markets, with each entity operating independently,” S&P added.

In Q1 2025, Fairfax reported net earnings of $945.7 million, up from $776.5 million in the first quarter of 2024, despite higher catastrophe losses.

Gross premiums written also increased during the quarter, rising to $8.47 billion compared to $8.06 billion in Q1 2024.

S&P suggested that the stable outlook reflects its view that Fairfax will sustain its very strong competitive position and uphold underwriting discipline.

The rating agency also anticipates Fairfax to generate solid returns, supported by robust underwriting and strong investment income.

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