AM Best Affirms Credit Ratings of Northbridge Financial Corporation’s Members and Wentworth Insurance Company Limited

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of the members of Northbridge Financial Corporation (Northbridge) (Ontario), which is composed of Federated Insurance Company of Canada, Northbridge General Insurance Corporation, Zenith Insurance Company and Verassure Insurance Company. 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 assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings also reflect Northbridge’s prominent position within Canada’s commercial insurance market, diversified commercial lines franchise and strong broker distribution network. Though the Canadian commercial lines market has seen pockets of softening, the group has benefited from strong rate enhancement in recent years. The continued largely favorable market conditions have partially contributed to Northbridge’s superior combined ratios and return-on-equity compared to peers in the commercial lines market, even as Canada has endured severe catastrophic property losses over the last two years. The group’s underwriting performance continues to have low volatility, with overall operating performance enhanced by strong investment returns.

Additionally, these ratings acknowledge Northbridge’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 and investment performance and favorable loss reserve development. Though the company produced an underwriting loss in 2025, its first in the last five years, net income remained favorable due to record investment returns. Fairfax has demonstrated support for Wentworth by derisking the investment portfolio, historically providing capital, and managing capital levels above the very strong threshold, 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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