Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 30

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 30
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 revenues. As a result, our inability to obtain adequate reinsurance protection could have a material adverse effect on
our financial condition and operations.

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Our operations could be adversely affected as a result of regulatory, political, economic or other influences in the insurance and reinsurance industries.

We are subject to government
regulation in each of the jurisdictions in which our operating insurance and reinsurance subsidiaries are licensed or authorized to conduct
business. Governmental bodies have broad administrative power to regulate many aspects of the insurance business, which may include accounting
methods, governance, premium rates, market practices, policy forms and capital adequacy. The laws and rules behind this regulation
are concerned primarily with the protection of policyholders rather than investors. Governmental bodies may impose fines, additional capital
requirements or limitations on our insurance and reinsurance operations, and/or impose criminal sanctions for violation of regulatory
requirements. The laws and regulations that are applicable to our insurance and reinsurance operations are complex and may increase the
costs of regulatory compliance or subject our business to the possibility of regulatory actions or proceedings.

In recent years, the insurance
industry has been subject to increased scrutiny by policymakers, legislatures and regulators alike. New laws and rules and new interpretations
of existing laws and rules could adversely affect our financial results by limiting our operating insurance subsidiaries’ ability
to make investments consistent with our total return strategy or requiring us to maintain capital in specific operating subsidiaries in
excess of the amounts we consider to be appropriate, or causing us to make unplanned modifications of products or services, or imposing
restrictions on our ability to enter or exit lines of insurance business or to utilize new methods of assessing and pricing risks or selling
products and services. We cannot predict the future impact of changing law, regulation or government policy on our operations; any changes
could have a material adverse effect on us or the insurance industry in general.

Our international business is subject to applicable laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could adversely affect our operations.

We must comply with all applicable
economic sanctions and anti-bribery laws and regulations, including those of Canada, the United States, the United Kingdom, the European
Union and other foreign jurisdictions where we operate. U.S. laws and regulations applicable to us include the economic trade sanctions
laws and regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control, as well as certain
laws administered by the U.S. Department