AM Best has upgraded the financial strength rating to A+ (Superior) from A (Excellent) and the long-term issuer credit ratings to “aa-” (Superior) from “a+” (Excellent) of the subsidiaries of Odyssey Group Holdings.
The outlook of these ratings is stable.
AM Best says the ratings of Odyssey Group reflect its balance sheet strength, which it assesses as “strongest”, as well as its strong operating performance, “favourable” business profile and appropriate enterprise risk management.
The rating upgrades recognise the removal of ratings drag from Odyssey Group’s parent company, Fairfax Financial Holdings, which has demonstrated sustained improvement in its overall credit profile in recent years.
Fairfax has reduced its debt leverage materially and improved its overall operating performance, the credit rating agency says. Subsequently, debt servicing metrics have improved sustainably, reducing the burden imposed on Fairfax subsidiaries.
Odyssey Group continues to produce “consistently strong” underwriting results, despite “elevated global catastrophe losses”. It is “well-positioned to take advantage of continued rate improvement in many of its key business lines”, according to AM Best.
Odyssey Group’s risk-adjusted capitalisation remains “strongly supportive of its strongest overall balance” sheet strength assessment.
AM Best adds that the group continues to benefit from its position as a global reinsurer with a well-diversified portfolio that also includes a position in the specialty primary market in the United States.
