Profile: Fairfax Financial Holdings Ltd (FRFHF.PK)
24 Jul 2014
Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company’s segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited. In July 2013, Fairfax Financial Holdings Ltd announces the completion of the agreement with Hartville Group, Inc., as a result of which Hartville has become a wholly owned subsidiary of Crum & Forster's United States Fire Insurance Company, joining the Accident & Health division of Crum & Forster's Fairmont Specialty operation. In October 2013, Fairfax Financial Holdings Limited announced the acquisition of American Safety Insurance Holdings Ltd. Effective October 18, 2013, Fairfax Financial Holdings Ltd of Canada, acquired a 5.02% interest in Mytilineos Holdings SA. Effective March 20, 2014, Fairfax Financial Holdings Ltd raised its interest to 22.7% from 19.3%, by acquiring a 3.4% interest in in Torstar Corp. Effective May 19, 2014, Fairfax acquired a 6.437% interest in Commercial International Bank Egypt SAE from Actis CIB (Mauritius) Ltd of Mauritius.
Northbridge Financial Corporation (Northbridge) is a national commercial property and casualty insurer in Canada providing property and casualty insurance products through its Commonwealth, Federated, Lombard and Markel subsidiaries, primarily in the Canadian market and in selected United States and international markets. U.S. Insurance, formerly Crum & Forster Holdings Corp. (Crum & Forster), consists of Crum & Forster and Zenith National. Crum & Forster is a national commercial property and casualty insurance company in the United States writing a range of commercial coverages. Its subsidiaries, Seneca Insurance and First Mercury, provide property and casualty insurance to small businesses and certain specialty coverages. Zenith National is primarily engaged in the workers’ compensation insurance business in the United States. Fairfax Asia underwrites insurance and reinsurance coverages in Singapore (First Capital Insurance Limited (First Capital)) and Hong Kong (Falcon Insurance Company Limited (Falcon)).
Odyssey Re Holdings Corp. (OdysseyRe) underwrites reinsurance, providing a range of property and casualty products on a worldwide basis. It also underwrites specialty insurance, primarily in the United States and in the United Kingdom directly and through the Lloyd’s of London marketplace.
Insurance and Reinsurance Other
This segment consists of Group Re, Advent Capital (Holdings) PLC (Advent), Polskie Towarzystwo Reasekuracji Spolka Akcyjna (Polish Re) and Fairfax Brasil Seguros Corporativos S.A. (Fairfax Brasil). Group Re participates in the reinsurance of Fairfax’s subsidiaries by quota share or through participation in those subsidiaries’ third party reinsurance programs on the same terms as third party reinsurers through CRC Reinsurance Limited (CRC Re) (Canadian business) and Wentworth Insurance Company Ltd. (Wentworth) (international business). Group Re also writes third party business. Advent is included in this reporting segment and is a reinsurance and insurance company, operating through Syndicate 780 at Lloyd’s, focused on specialty property reinsurance and insurance risks.
The runoff segment consists of nSpire Re Limited (nSpire Re), including the runoff of nSpire Re’s Group Re participation, RiverStone Insurance (UK) Limited (RiverStone (UK)) and the United States runoff company formed on the merger of TIG and International Insurance Company (IIC), combined with Old Lyme and Fairmont. The U.K. and international runoff operations of RiverStone (UK) have reinsured their reinsurance portfolios to nSpire Re to provide consolidated investment and liquidity management services, with the RiverStone Group retaining full responsibility for all other aspects of the business. GFIC is also included in the United States runoff and is a property and casualty insurance company based in the United States whose business will run off under the supervision of Fairfax’s RiverStone management.
The Other reporting segment includes Ridley Inc. (Ridley). Ridley is engaged in the animal nutrition business and operates in the United States and Canada.
Corporate and Other
Corporate and Other includes the parent entity, which includes Fairfax Financial Holdings Limited. Its subsidiary intermediate holding companies, Hamblin Watsa Investment Counsel Ltd. (Hamblin Watsa) is an investment management company, and MFXchange, a technology company.
Fairfax Financial Holdings Ltd
Suite 800, 95 Wellington Street
PO Box 8
TORONTO ON M5J 2N7