Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 32

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 32
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2016 of Bermuda. We believe that our commitment to honesty and integrity,
set out in our Guiding Principles and regularly communicated, and the large number of our executives and employees who have served the
Company for a long time, significantly enhance the likelihood that we will comply with those laws and regulations. More specifically,
we have policies and controls in place that are designed to ensure compliance with these laws and regulations, including policies distributed
annually to employees, controls and oversight at individual operating companies and companywide, and whistleblower programs that are monitored
by senior management and the Board of Directors. Despite these policies and controls, it is possible that an employee or intermediary
could fail to comply with applicable laws and regulations, which could expose us to civil penalties, criminal penalties and other sanctions,
including fines or other punitive actions. In addition, such violations could damage our business and/or reputation and therefore have
a material adverse effect on our financial condition and results of operations.

Certain business practices of the insurance industry have been the subject of negative publicity and investigations by government authorities and the subject of class action litigation.

From time to time, the insurance
industry has been subject to investigations, litigation and regulatory activity by various insurance, governmental and enforcement authorities,
concerning certain practices within the industry. We sometimes receive inquiries and informational requests from insurance regulators
or other government officials in the jurisdictions in which our insurance and reinsurance subsidiaries operate. Our internal and external
legal counsels coordinate with operating companies in responding to information requests and government proceedings. From time to time,
consumer advocacy groups or the media also focus attention on certain insurance industry practices. We cannot predict at this time the
effect that investigations, litigation and regulatory activity or negative publicity from consumers or the media will have on the insurance
or reinsurance industry or our business, or whether activities or practices currently thought to be lawful will be characterized in the
future as unlawful or will become subject to negative scrutiny from consumer advocacy groups or the media. Our involvement in any investigations
and related lawsuits would cause us to incur legal costs and, if we were found to have violated any laws, we could be required to pay
fines and damages, perhaps in material amounts. In addition, we could be materially adversely affected by the negative publicity for the
insurance industry related to any such proceedings, and by any new industry-wide regulations or practices that may result from such proceedings
or publicity. It is possible that future investigations or related regulatory developments will mandate changes in industry practices
in a fashion that increases our costs of