A.M. Best Affirms Ratings of TIG Insurance Group and Fairmont Specialty Group

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and the issuer credit rating (ICR) of “bbb-“ of TIG Insurance Group(TIG) (headquartered in Manchester, NH) and its property/casualty members. At the same time, A.M. Best has affirmed the FSR of B++ (Good) and the ICR of “bbb” of Fairmont Specialty Group(Fairmont) (headquartered in Manchester, NH) and its property/casualty members. All members of TIG and Fairmont are indirect, wholly owned subsidiaries of Fairfax Financial Holdings Limited (Fairfax) (Toronto, Ontario) [TSX: FFH and FFH.U]. All members of the groups are in run-off. The outlook for all ratings is stable.

TIG’s ratings, which are based upon the consolidated financial results of TIG Insurance Company and its wholly owned subsidiaries (including the members of Fairmont) reflect the group’s adequate level of risk-adjusted capitalization and the implicit support and financial flexibility as part of the Fairfax enterprise. Offsetting factors include TIG’s run-off status, significant adverse development of prior years’ loss reserves and its elevated level of affiliated investments.

The ratings of Fairmont reflect the group’s supportive level of risk-adjusted capitalization and the to-date orderly progress of the run-off of the group’s remaining liabilities. Offsetting factors to the rating include an elevated level of affiliated investments and the run-off status of the company.

For a complete listing of Fairfax Financial Holdings Ltd. and its subsidiaries’ FSRs, ICRs and debt ratings, please visit www.ambest.com/press/0209fairfax.pdf.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.Jennifer Marshall, 908-439-2200, ext. 5327
Senior Financial Analyst
[email protected]
orMichael J. Lagomarsino, CFA, 908-439-2200, ext. 5810
Assistant Vice President
[email protected]
orRachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
orJim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.