07:17 AM EDT, 05/23/2025 (MT Newswires) -- Fairfax Financial Holdings ( FRFHF ) overnight Thursday said AM Best has upgraded the company's Long-Term Issuer Credit Rating (ICR) to "a-" (Excellent) from "bbb+" (Good) as well as upgraded its unsecured debt and preferred equity because of its improved underwriting income and record profits.

The ratings agency has also upgraded the Long-Term ICRs to "a-" (Excellent) from "bbb+" (Good) of Fairfax (US) and Zenith National Insurance), both indirect holding companies of Fairfax. AM Best revised the outlook of the ratings to stable from positive.

In 2022, Fairfax diverted significant cash assets into higher-yielding fixed-income instruments, which boosted dividend and interest income, while at the same time tightening its underwriting, allowing it to generate record profits despite higher catastrophe activity.