Fairfax Financial business insurance

Overview

Fairfax Financial is a Toronto holding company whose U.S. insurers are some of the best-known names in specialty and excess and surplus lines. Its U.S. group was ranked No. 13 among U.S. business insurers by 2025 commercial lines direct premiums written, with $9.09 billion, based on NAIC market share data. Most of that is liability: Fairfax ranks sixth nationally in other liability (general, excess, umbrella and professional liability), eighth in surety and tenth in products liability.

Fairfax runs its companies on a decentralized model. Each has its own management, underwriting and brand, while investments are managed centrally by Hamblin Watsa in Toronto. The U.S. businesses a buyer will meet are:

• Crum & Forster (Morristown, New Jersey): national commercial property and casualty, surplus lines, surety and accident and health; $4.7 billion of net premiums written in 2025.
• Allied World (Pembroke, Bermuda, with a large U.S. operation based in New York): property, casualty, professional, management and healthcare liability, primary and excess. Fairfax owned 83.4% at the end of 2025.
• Zenith National (Woodland Hills, California): a workers' compensation specialist that also insures California farms and agribusinesses; $810.9 million of net premiums written in 2025.
• Hudson Insurance Group, the U.S. specialty insurance arm of the 90%-owned Odyssey Group (Stamford, Connecticut), which is mainly a reinsurer.
• RiverStone, which manages Fairfax's run-off business and third-party claims administration and does not sell new policies.

Abroad, Fairfax also owns Northbridge in Canada and Brit at Lloyd's. All U.S. business is sold through agents, brokers, wholesalers and program administrators. V. Prem Watsa, chairman and CEO, has run Fairfax since September 1985.

History

Fairfax has been under its present management since 1985 and grew mainly by buying insurers, often troubled ones, and fixing them. Its U.S. footprint came in stages:

• 1996: The reinsurance business Fairfax calls "the old Skandia," the start of what is now Odyssey Group.
• 1998: Crum & Forster, a commercial insurer that now cites more than 200 years in business, and TIG. Fairfax said those deals, together with Skandia International, roughly tripled its pro forma premiums and investments that year.
• 2010: Zenith National, the California-based workers' comp carrier.
• 2011: First Mercury, a Detroit-based surplus lines and specialty insurer founded in 1973, closed in February 2011 for $294 million and became Crum & Forster's E&S platform.
• 2017: Allied World, acquired on July 6, 2017; Fairfax paid $4.2 billion for its stake.

Recent changes are about ownership and ratings rather than new acquisitions. Fairfax reported no significant acquisitions or divestitures in the first half of 2026. On May 29, 2026, it extended its option to buy out Allied World's minority shareholders to December 31, 2029. S&P upgraded the core insurance companies to AA- in 2025, and AM Best raised Crum & Forster and Allied World to A+. Zenith changed CEOs in 2025, with Davidson Pattiz taking over. Outside insurance, Fairfax keeps buying whole businesses, most recently the June 2026 take-private of real estate firm Kennedy Wilson, in which it holds a majority economic interest.

Business insurance products

Crum & Forster writes across four divisions. Commercial Lines covers contractors, middle-market segments (manufacturing, real estate, hospitality, distributors), target niches (agribusiness, fuel retail, food retail and Hawaii risks) and an executive risk suite of E&O, D&O, cyber, tech E&O and crime. Surplus & Specialty includes binding authority, construction, energy, environmental, excess and umbrella, security, transportation and a small business team on an excess and surplus lines basis. There are also property (E&S property, programs, inland marine and product recall), surety (commercial, contract and bail) and accident and health, including medical stop-loss and pet health. Affiliates include Seneca.

Allied World writes primary and excess property, casualty, professional and management liability and healthcare liability.

Zenith sells workers' compensation through regional offices in California, Illinois, Pennsylvania, Texas, North Carolina and Florida, and a California agribusiness package of property, general and products liability, business auto and related coverages.

Hudson offers alternative risk, casualty, commercial auto, crop and livestock, inland and ocean programs, professional lines (including financial institutions, management liability and medical professional liability), property, specialty lines and surety. Much of it comes through program administrators and MGAs; see program business: niche insurance through program administrators.

Who it insures

The common thread is risk that needs specialist underwriting: contractors and construction projects, transportation, energy and environmental exposures, security firms, manufacturers and distributors, healthcare organizations, and accounts that need high excess limits. Crum & Forster's E&S and small business teams also take small, hard-to-place risks through wholesale brokers. Zenith targets employers that want a comp specialist and California farms, dairies, vineyards and agricultural processors. None of these companies is set up to sell a simple, low-hazard business owner's policy online.

How to buy

Go through a licensed agent or broker. Crum & Forster's commercial lines work with retail agents, while its surplus lines and binding authority business comes through wholesale brokers. Allied World's U.S. business comes through agents and brokers, and Hudson's through retailers, wholesalers and program administrators. Zenith uses independent agents and brokers, who can submit, quote and bind through its online portal; small employers can also call its small business hotline (855-936-4855).

After binding, Crum & Forster insureds and producers can use C&F Connect for loss runs, claim reporting, reports and policy documents.

Claims

• Crum & Forster: 800-690-5520, 24 hours a day, online through C&F Connect, by email or by fax (877-622-6218). Hawaii and Seneca claims have separate contacts. Emergency response teams handle catastrophic and urgent losses around the clock.
• Zenith: report workplace injuries as soon as you know about them, online or at 800-440-5020; agribusiness property, liability and auto claims go to 877-581-8237. Zenith reminds employers that avoidable ambulance charges count in the experience modification rate.
• Allied World: send notices of claims or potential claims to [email protected] and check your policy for specific reporting requirements.
• Hudson: claims are reported by product line; commercial auto online, and Hudson Direct Cyber by phone at 866-546-3981 (option 7).

Financial strength and ratings

S&P upgraded the financial strength ratings of Fairfax's core insurance operations to AA- (Very Strong) in 2025, the first AA-level rating in Fairfax's history. AM Best raised Crum & Forster and Allied World to A+ (Superior) in 2025; Odyssey Group was already A+. Allied World lists A+ (stable) from AM Best, AA- from S&P and A2 (positive outlook) from Moody's for its insurers as of May 31, 2026.

The 2025 underwriting results were profitable at the large units. Crum & Forster posted a 94.8% combined ratio and $236 million of underwriting profit on $6.2 billion of gross premiums written. Allied World earned $546 million of underwriting profit and Odyssey Group $375 million. Zenith was the exception, with a 102% combined ratio and a $15 million underwriting loss that Fairfax blamed on years of workers' comp price competition.

Strengths and weaknesses

Fairfax gives brokers a deep bench of specialty and E&S markets backed by strong, recently upgraded ratings. Buyers deal with each company separately, though, and the parent runs its capital differently from most insurers.

• Strengths: AA- from S&P and A+ from AM Best on the main U.S. companies after 2025 upgrades. National top-10 positions in other liability, surety and products liability. Profitable underwriting at Crum & Forster, Allied World and Odyssey in 2025. Specialist depth in E&S, construction, transportation, accident and health and workers' comp.
• Weaknesses: No single front door; each company has its own appetite, portal and claims contacts. No direct or online buying for business owners. Zenith ran a 102% combined ratio in 2025. Fairfax invests more of its capital in stocks and whole businesses than a typical insurer, so group earnings move with markets.

How to contact Fairfax Financial