A.M. Best Affirms Ratings of Fairfax Financial, Odyssey Re and Northbridge Financial; Removes Under Review Status.

OLDWICK, N.J. -- A.M. Best Co. has removed from under review with negative implications the financial strength rating (FSR) and issuer credit ratings (ICR) of the operating subsidiaries of Odyssey Re Holdings Corp. (Odyssey) (NYSE: ORH) (Stamford, CT) and the debt ratings of Odyssey. This rating action is subsequent to Odyssey's announcement that it filed its 2005 Form 10-K on March 31, 2006. Odyssey's ratings were placed under review on March 17, 2006 following the company's announcement that it would delay the filing of Form 10-K. A.M. Best has also removed from under review with negative implications the FSR and ICRs of Crum & Forster as well as Fairfax Financial Holding Limited's (Fairfax) (NYSE: FFH) (Toronto, Canada) other wholly-owned operating subsidiaries and the operating subsidiaries of Northbridge Financial Corporation (Northbridge) (TSX: NB) (Toronto, Canada). All debt ratings of Fairfax have also been removed from under review with negative implications. Fairfax's and Northbridge's ratings were placed under review due to Fairfax delaying the filing of its Annual Report with Canadian regulators as a result of the delay in Odyssey's 10-K filing.

All of the FSRs, ICRs and debt ratings of Odyssey and Fairfax have been affirmed with a stable outlook. The FSRs and ICRs of Northbridge have been affirmed with a positive outlook, with the exceptions of Lombard Insurance Company, Zenith Insurance Company and CRC (Bermuda) Reinsurance Limited, which have a stable outlook. (See link below for a detailed list of ratings.)

A.M. Best has reviewed the accounting considerations that led to Odyssey's need to re-state its financial statements for the years ended December 31, 2000 through 2004 and for the nine months ended September 30, 2005 and believe they are not of a sufficient nature to directly cause a negative rating action. In particular, the need to restate due to finite contracts risk transfer considerations was immaterial. Statutory accounting is not materially affected by the restatements, and A.M. Best's evaluation of Odyssey's statutory capital remains unchanged and currently supportive of its ratings. However, current surplus levels have been achieved through the company's significant capital raising activities in 2005--assisted by Fairfax's explicit support--and collectively has caused a decrease in its financial flexibility. Odyssey's holding company cash levels are deemed sufficient to support its debt service obligations in 2006. A.M. Best maintains earnings, capital level, adverse reserve development and financial leverage expectations for Odyssey and its operating subsidiaries. Should results be inconsistent with expectations, the ratings could be re-evaluated.

A.M. Best believes that Fairfax's Crum & Foster and Northbridge operations are stable, well managed and adequately capitalized. In particular, A.M. Best incorporates in its capital model for the Crum & Forster subsidiaries a charge related to the remaining finite reinsurance contracts.

A.M. Best closely monitors Fairfax's holding company liquidity and the U.S. and European run-off operations, which are housed in the TIG and nSpire subsidiaries, respectively. Expectations are that earnings losses, particularly within the European run-off operations, will subside in 2006; however, the European operations will continue to be cash needy for the foreseeable future. Fairfax holding company liquidity of approximately $559 million at December 31, 2005 is expected to be sufficient for the near term and includes the cash needs of the run-off operations. Earnings have been noticeably augmented through significant realized gains, although projections do not include a continuation of positive past performance. A.M. Best reiterates its belief that Fairfax's elevated financial leverage, partially due to Odyssey's 2005 capital raising activity, remains an issue and that management's plans to reduce leverage have been stalled by earnings losses--the result of hurricane activity--and corresponding reduced cash flow to the holding company.

A.M. Best recognizes that Fairfax and certain subsidiaries and individuals associated with Fairfax have received subpoenas from the Securities and Exchange Commission (SEC) as have other insurance industry participants. The U.S. Attorney's office is reviewing documents provided to the SEC by Fairfax. The timing of a response from the SEC is indefinite and the nature of the response is unknown. Because this concern cannot be analyzed or quantified, it is not currently being incorporated into the ratings. However, as information becomes available, A.M. Best will respond appropriately.

For a complete listing of Odyssey Re Holding Corp.'s, Fairfax Financial Holdings Limited's and Northbridge Financial Corporation's FSRs, ICRs and debt ratings, please visit www.ambest.com/press/040308fairfax.pdf.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.