DBRS Releases Report on Fairfax Financial Holdings Limited

DBRS has today released a report on Fairfax Financial Holdings Limited (Fairfax or the Company) that supports the recent confirmation of the Company’s Senior Unsecured Debt rating at BBB and its Preferred Shares rating at Pfd-3. The trends are Stable. The confirmation reflects the fact that Fairfax has continued to enjoy strong earnings despite negative underwriting results stemming from ongoing competitive market conditions in commercial insurance markets and adverse catastrophic claims from the tsunami in Japan, earthquakes and storm activity.

Strong investment results, including both interest and dividends and gains on investments, continue to distinguish Fairfax’s unique in-house investment management operation, funded through premiums taken in by its insurance operating subsidiaries, although maintaining underwriting profitability is a strategic priority. Given its strong investment bias, Fairfax has more latitude to avoid the worst of the cyclicality inherent in the property and casualty (P&C) insurance industry by simply choosing not to write policies where inadequate pricing would only give rise to additional underwriting losses while continuing to report strong earnings overall.

Today’s report and the December 23, 2011, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.