What’s New: In Brief (December 04, 2008)

Agriculture Financial Services Corporation (AFSC) is offering a first-of-a-kind livestock insurance program to Alberta beef producers to help protect their operations from fluctuating market prices.
The Cattle Price Insurance Program (CPIP) is an Alberta-made livestock insurance product developed through a partnership with the federal government, the Government of Alberta and the Alberta Beef Producers.
“This type of insurance doesn’t currently exist in Canada and will be another tool our producers can use to help protect them from fluctuating cattle prices,” said George Groeneveld, minister of agriculture and rural development.
“CPIP will provide protection against drops in Alberta beef prices over a defined time period,” AFSC announced in a press release. “Premiums would vary according to policy length and coverage desired.
“The insurance will be a voluntary, producer-funded program and will provide timely claim payments.”

Fitch Ratings says its rating of Fairfax Financial Holdings Limited (Fairfax) remains unchanged after Fairfax’s recent offer to acquire the remaining 37% of Northbridge Financial Corporation (Northbridge) that it does not already own.
“This privatization offer is consistent with Fitch’s view of Fairfax as a ‘true’ holding company acquiring and overseeing subsidiary insurance and reinsurance companies under a decentralized management approach,” Fitch says in a statement.
“While the cash consideration of Cdn$686 million (Cdn$39 per share) represents an almost 29% premium over the closing price when Fairfax approached Northbridge with the proposed transaction on Nov. 13, 2008, Fitch considers this a prudent use of cash given the opportunities available in the current difficult investment and credit market environment.”