NU Online News Service, Nov. 20, 3:38 p.m. EST

Toronto-based Fairfax Financial Holdings Limited, which acquired Odyssey Re last month, announced its intention to voluntarily delist its shares from the New York Stock Exchange.

In a statement yesterday, the chairman of the holding company for property and casualty insurance and reinsurance operations, including Odyssey and Crum & Forster, essentially said eliminating the expense of multiple stock listings in the United States and Canada will save money.

A New York Stock Exchange spokesman said the maximum charge in listing and filing fees for a non-us company was $125,00, but he said the complexity of the process meeting various reporting requirements meant accounting and legal fees for a company could be far higher.

Prem Watsa, Fairfax chairman and chief executive officer, said: "While our decentralized operations have global reach, after reviewing the factors relevant to our continued listing on the NYSE, we determined that our company and its shareholders will be better served by the simplified focus and lower cost resulting from the maintenance of only our original TSX listing."

"In recent years, as markets have become significantly more global and liquid, our constituents, including shareholders and employees, no longer require multiple listings."

"The voluntary delisting will have no impact on our ongoing strategic and operating philosophy nor on our very substantial presence in the United States and our presence in the other global markets in which we operate," Mr. Watsa's said.

He began his statement noting that after Fairfax's "recent privatization of Odyssey Re, Fairfax now wholly owns all of its primary businesses and is the largest property and casualty insurance company based in Canada, with worldwide operations in over 50 countries."

In late October, Fairfax, which had previously held a 73 percent stake in Stamford, Conn.-based Odyssey Re, completed a tender offer for $65 per share, triggering a merger transaction.

Fairfax said that after delisting the subordinate voting shares currently traded on the NYSE, its shares will continue to be listed on the Toronto Stock Exchange, the insurance holding company said.

On the TSX, Fairfax will be traded in both Canadian and U.S. dollars under the trading symbols FFH and FFH.U, respectively, the company said.

Fairfax said the delisting will not affect Fairfax's continuing obligation to file required reports with the Securities and Exchange Commission.

Separately, in an unrelated announcement, Standard & Poor's in New York upgraded financial strength ratings of Fairfax's Crum & Forster insurance units to "A-minus" from "triple-B-plus."

"Our upgrade of the Crum & Forster insurance units reflects our revised opinion of the long-term importance of Crum & Forster to the Fairfax group of companies, as well as the benefits it provides to the Fairfax group," S&P said. "With $1.6 billion in statutory surplus as of Sept. 30, 2009, Crum & Forster has evolved into a specialty writer that is well positioned for growth in standard commercial lines once market conditions improve," the rating agency said.

In addition, S&P affirmed the "A-minus" financial strength ratings of Fairfax's other core insurance subsidiaries.

The affirmation reflects Fairfax's "strong financial profile, including strong capital and liquidity," said S&P credit analyst Michael Gross. "But, this is tempered by an above-average tolerance for market risk as well as lackluster underwriting performance amid tough property and casualty industry conditions," he said.

According to S&P, Fairfax Holdings had $7.65 billion in shareholders' equity as of Sept. 30. In addition to Odyssey and Crum & Forster, Fairfax is also the parent of Canada-based Northbridge Financial.

Special Reports /

Fairfax To Delist From NYSE, Gets S&P Upgrade On Crum Units

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