TORONTO, ONTARIO -- (MARKET WIRE) -- 11/20/08 -- (Note: All dollar amounts in this news release are expressed in Canadian dollars)

Northbridge Financial Corporation (TSX: NB) today announced that it has removed the downside protection on its equity portfolio investments by covering its S&P and S&P/TSX60 equity index total return swaps.

As of October 31, 2008, Northbridge held approximately 70% of its investment portfolio in cash, treasury bills and government bonds, and continued to hold credit default swaps. The credit default swaps are extremely volatile, with the result that their market value and their liquidity may vary dramatically either up or down in short periods, and their ultimate value will therefore only be known upon their disposition. Similarly, the values of Northbridge's other portfolio investments, including treasury bills, government bonds, other fixed income securities and equities are also volatile, and particularly so given the increased volatility of current financial markets, and their ultimate value will only be known upon their disposition.

Northbridge is the largest commercial property and casualty insurance group in Canada, providing property, automobile, general liability and a wide range of other commercial insurance products to businesses primarily in Canada. Northbridge common shares are listed and traded under the symbol NB on the Toronto Stock Exchange. Visit Northbridge's website at www.norfin.com for more information.

Contacts:
Northbridge Financial Corporation
Craig Pinnock
Chief Financial Officer
(416) 350-4300
Website: www.norfin.com