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

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 26
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 insurance and reinsurance companies we control are included in our consolidated financial statements and, generally, losses
incurred by any of our companies directly impact our consolidated results. Although a severe loss incurred by one insurance or reinsurance
company should not have any adverse effect on any of our other insurance or reinsurance companies, such loss, even though not material
to us when our financial condition is viewed as a whole, could have an adverse effect on us because it could affect adversely how our
other insurance or reinsurance companies are treated by others, including rating agencies and insurance regulators.

In the event of the insolvency
or liquidation of a subsidiary, following payment by such subsidiary of its liabilities, the subsidiary may not have sufficient remaining
assets to make payments to us as a shareholder or otherwise, or may be restricted from doing so by insurance regulatory authorities, receiver,
administrator or supervising court, as applicable. In the event of a default by a subsidiary under a credit agreement or other indebtedness,
its creditors could accelerate the debt, prior to such subsidiary distributing amounts to us that we could use to make payments on our
outstanding debt.

Although substantially all
of our operations are conducted through our subsidiaries, none of our subsidiaries are obligated to make funds available to us for the
payment of principal and interest on our outstanding debt (other than Allied World, which is a Co-Obligor). Accordingly, our ability to
meet financial obligations, including the ability to make payments on outstanding debt, is largely dependent on the distribution of earnings
from our subsidiaries. The ability of subsidiaries to pay dividends or distributions in the future will depend on their statutory surplus,
on earnings and on regulatory restrictions. Our subsidiaries may incur additional indebtedness that may severely restrict or prohibit
the making of distributions, the payment of dividends or the making of loans by our subsidiaries to the Company. We cannot assure you
that the agreements governing the current and future indebtedness of our subsidiaries will permit our subsidiaries to provide us with
sufficient dividends, distributions or loans to meet our financial obligations, including to fund payments on our outstanding debt when
due. Dividends, distributions or returns of capital to us are subject to restrictions set forth in the applicable laws and regulations
of the countries where the relevant company operates (principally the U.S., Canada, the United Kingdom and Bermuda) (in each case, including
the provinces, states or other jurisdictions therein) and is affected by the subsidiaries’ credit agreements and indentures, rating
agencies, the discretion of