AM Best has upgraded the credit ratings of the subsidiaries of Odyssey Group Holdings, Inc., and assigned a stable outlook.
The firm’s members now have a Financial Strength Rating (FSR) of A+ (Superior) which was previously A (Excellent), and its Long-Term Issuer Credit Ratings (Long-Term ICRs) is now “aa-” (Superior), which previously was “a+” (Excellent).
According to AM Best, these ratings reflect Odyssey Group’s balance sheet strength, which the rating agency assesses as strongest, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
The upgrades also recognize the removal of ratings drag from Odyssey Group’s parent company, Fairfax Financial Holdings Limited, which has demonstrated sustained improvement in its overall credit profile in recent years, according to AM Best.
It said: “Fairfax has reduced its debt leverage materially and improved its overall operating performance, while maintaining consistently sound balance sheet strength and financial flexibility.
“As a result, debt servicing metrics have improved sustainably, reducing the burden imposed on Fairfax subsidiaries and supporting the removal of ratings drag on Odyssey Group.”
Despite higher global catastrophe losses, Odyssey Group otherwise continues to produce consistently strong underwriting results. It is also well-positioned to take advantage of continued rate improvement in many of its key business lines, the credit rating agency concluded.
Adding: “Odyssey Group’s risk-adjusted capitalization remains strongly supportive of its strongest overall balance sheet strength assessment, and the group continues to benefit from its position as a global reinsurer with a well-diversified portfolio that also includes a significant position in the specialty primary market in the United States.”
