AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of the members of Northbridge Financial Corporation (Northbridge), which is composed of Federated Insurance Company of Canada, Northbridge General Insurance Corporation, Zenith Insurance Company and Verassure Insurance Company. All companies are domiciled in Ontario, Canada. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Wentworth Insurance Company Limited (Wentworth) (Barbados). The outlook of these Credit Ratings (ratings) is stable. The aforementioned companies are subsidiaries of Fairfax Financial Holdings Limited (Fairfax) [TSX: FFH].

The ratings of Northbridge reflect the group’s balance sheet strength, which AM Best assess as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings also reflect Northbridge’s position within Canada’s commercial insurance market, diversified commercial lines franchise and strong broker distribution network. In recent years, the group has benefited from hardening rates across most lines, as well as strong underwriting results in the small- to mid-market commercial segment. Northbridge has continuously produced combined ratios and returns on equity superior to commercial lines composites. Additionally, these ratings acknowledge the group’s favorable reserve development in most years and the financial flexibility provided by Fairfax, which maintains financial leverage that is in line with its current ratings, as well as additional liquidity sources given its access to capital markets and lines of credit.

The ratings of Wentworth reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings also are enhanced by the benefits the company derives from its position in the Fairfax enterprise.

In addition, Wentworth’s ratings are supported by its historically profitable underwriting performance and favorable loss reserve development. Fairfax has demonstrated support for Wentworth by derisking the investment portfolio and providing capital to maintain ongoing risk-adjusted capitalization at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR).

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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Christopher Pennings, CPCU Financial Analyst +1 908 882 2237 christopher.pennings@ambest.com

Dan Hofmeister, CFA, FRM, CAIA, CPCU Associate Director +1 908 882 1893 dan.hofmeister@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