Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 33

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 33
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 adversely affect our business, financial
condition and results of operations.

We may be subject to regulatory proceedings or significant litigation, which will be expensive and time consuming and, if decided against us, could require us to pay substantial judgments or settlements.

We may, from time to time,
become party to a variety of legal claims and regulatory proceedings, including, but not limited to: disputes over coverage or claims
adjudication; disputes regarding sales practices, disclosures, premium refunds, licensing, regulatory compliance and compensation arrangements;
disputes with our agents, brokers or network providers over compensation and termination of contracts and related claims; regulatory actions
relating to consumer pressure in relation to benefits realized by insurers; disputes with taxing authorities regarding our tax liabilities
and tax assets; regulatory proceedings and litigation related to acquisitions or divestitures made or proposed by us or our subsidiaries
or in connection with subsidiaries in which we hold an investment; and disputes relating to certain businesses acquired or disposed of
by us. Operating companies manage day-to-day regulatory and legal risk primarily by implementing appropriate policies, procedures and
controls. Internal and external legal counsels also work closely with the operating companies to identify and mitigate areas of potential
regulatory and legal risk. The existence of such claims against us or our subsidiaries, affiliates, directors or officers could, however,
have various adverse effects, including negative publicity and the incurrence of significant legal expenses defending claims, even those
without merit.

Our significant shareholder may substantially influence our direction and operations.

Mr. Prem Watsa, our
Chairman and Chief Executive Officer, owns, directly or indirectly, or exercises control or direction over shares representing approximately
43.3% of the voting power of the Company’s outstanding shares. Mr. Watsa has the ability to substantially influence certain
actions requiring shareholder approval, including approving a business combination or consolidation, liquidation or sale of the Company’s
assets, electing members of our Board of Directors and adopting amendments to the Company’s articles of incorporation and by-laws.

Amendments were made to the
terms of our multiple voting shares, which are controlled by Mr. Watsa, in August of 2015 having the effect of preserving the
voting power represented by the multiple voting shares at 41.8% even if additional subordinate voting shares are issued in the future.

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We may be adversely affected by foreign currency fluctuations.

Our reporting currency is
the U.S. dollar. A portion