Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 64

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 64
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 on the ability of insurers to share data used to compile rates. Such limitations
have had, and are expected to have, no significant impact on us.

Insurance companies are
required to file detailed annual and quarterly financial reports with the state insurance regulators in each of the states in which they
do business, and their business and accounts are subject to examination by such regulators at any time. In addition, these insurance
regulators periodically examine each insurer’s financial condition, adherence to statutory accounting practices, and compliance
with insurance department rules and regulations, including market conduct and claims practices.

Insurance Regulation Concerning Change or Acquisition of Control

The insurance codes in our
operating insurance subsidiaries’ respective domiciliary states each contain similar provisions (subject to certain variations)
to the effect that the acquisition of “control” of a domestic insurer or of any person that directly or indirectly controls
a domestic insurer cannot be consummated without the prior approval of the domiciliary insurance regulator. In general, a presumption
of “control” arises from the direct or indirect ownership, control, possession with the power to vote or possession of proxies
with respect to 10% or more of the outstanding voting securities of a domestic insurer or of a person that controls a domestic insurer.
A person seeking to acquire control, directly or indirectly, of a domestic insurance company or of any person controlling a domestic
insurance company generally must file with the relevant insurance regulatory authority a statement relating to the acquisition of control
containing certain information regarding the proposed acquisition and acquiring party required by statute and regulations, provide a
copy of such statement to the domestic insurer and obtain the prior approval of such regulatory authority for the acquisition. In addition,
certain state insurance laws contain provisions that require pre-acquisition notification to the state insurance regulator of a change
of control of a non-domestic insurance company licensed in that state. Such pre-acquisition notification statutes authorize certain remedies,
including the issuance of cease-and-desist orders with respect to the non-domestic licensed insurer and its affiliates doing business
in the state if certain conditions exist, such as undue market concentration. Additionally, in most states, the insurance regulator is
authorized to deny an application to acquire control of a domestic insurer if the acquisition of control of the domestic insurer would
substantially lessen competition in insurance in the state or tend to create a monopoly.

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These laws regulating change
of control may discourage potential acquisition proposals and may delay, deter or prevent a change of control of Fairfax