Fairfax Financial Holdings South Africa-based financial services portfolio company’s national scale financial strength rating has been affirmed at A(ZA), with a negative outlook by GCR Ratings.
Bryte Insurance Company has been affirmed at A(ZA) on its strong risk adjusted capitalisation and liquidity.
However, GCR has downgraded the company’s outlook from stable to negative on expected lower earnings performance exacerbated by the coronavirus disease 2019 (COVID-19) crisis.
Fairfax first backed Bryte in 2016 having injected an undisclosed amount in the company.
Earlier in 2020, Helios Holdings and Fairfax’s subsidiary Fairfax Africa Holdings merged to create an alternative investment platform Helios Fairfax Partners (HFP), a vehicle to be listed in Canada.
Helios Holdings is an investment holding vehicle that holds management fees and carries on behalf of some Helios Investment Partners team members.
Helios Investment Partners is the GP on the Helios funds, and is not part of the merger, but has been named advisor to the listed vehicle.
Financial details of this transaction have not been disclosed and the deal is subject to regulatory approvals.
This transaction is expected to be completed in the third quarter of 2020.