Fitch keeps Fairfax Financial, Odyssey Re on negative watch

Fitch Ratings said the ratings for Fairfax Financial Holdings Ltd., Odyssey Re Holdings Corp. and its insurance subsidiaries and TIG Holdings Inc. remain on Rating Watch negative after Odyssey Re filed its 10-K report and Fairfax, which owns 80% of Odyssey Re, filed its annual report. Both filings had been delayed due to additional time needed to complete the restatement of Odyssey Re's financial results.

TIG Holding's negative Rating Watch reflects the alignment of the company's and Fairfax's debt ratings given that Fairfax has traditionally guaranteed TIG's debt, the agency said. The holding company ratings of Crum & Forster Holdings Corp. and the insurance company ratings of Crum & Forster Insurance Group, Northbridge Financial Insurance Group and TIG Insurance Group are not affected by this action.

Fitch said it views as a positive development Odyssey Re's 10K filing with relatively minor additional restatements, as it has reduced a significant uncertainty. The ratings remain on negative Rating Watch, however, due to the substantial uncertainty surrounding the ongoing investigations of Fairfax and Odyssey Re relating to material weaknesses in its internal control.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.