Company: FRFXF
Filing Date: 2025-10-01
Form Type: F-10
Source: 0001104659-25-095645
Chunk: 86

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-10-01
Form: F-10
Chunk 86
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 is known in the industry as the aggregate retention, is $37.5 billion. TRIA is applicable to almost all commercial lines of property and casualty insurance, but excludes commercial auto, burglary and theft, surety, professional liability and farm owners’ multi-peril insurance. Insurers with direct commercial property and casualty insurance exposure in the U.S. are required to participate in the program and make available coverage for certified acts of terrorism. Federal participation will be triggered when the Secretary of the Treasury certifies an act of terrorism.

While the provisions of TRIA and the purchase of certain terrorism reinsurance coverage mitigate our exposure in the event of a large-scale terrorist attack, the risk of severe losses to us from acts of terrorism remains because our effective deductible is significant, certain lines that we write are not covered by TRIA and there is no certainty that future acts of terrorism will be certified as such by the Secretary of the Treasury. There is also no certainty that the program will be extended beyond December 31, 2027, or, if it is extended, that the program will provide coverage in the same amounts and on the same terms. Moreover, regardless of

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TRIA, some state insurance regulators do not permit terrorism exclusions for various coverages or causes of loss. Accordingly, we continue to carefully monitor our concentrations of risk.

**Possible Legislative, Regulatory and Policy Changes**

In recent years, the insurance industry has been subject to increased scrutiny by legislators, regulators and policymakers. As noted above, the NAIC and a number of state legislatures have considered or adopted legislative proposals that alter and, in many cases, increase the authority of state regulators to regulate insurance companies and holding company systems. Additional regulations or new requirements may emerge from activities of various regulatory and policymaking bodies, including the Federal Reserve Board, the Federal Insurance Office, the Financial Stability Oversight Council, the U.S. Department of the Treasury, the Executive Office of the President and the NAIC. We cannot predict whether any specific state or federal measures will be adopted to change the nature or scope of the regulation of insurance or what effect any such measures would have on Fairfax and its U.S. operating insurance subsidiaries.

Finally, the ongoing investigations and scrutiny of insurance industry business practices, discussed above, may result in new laws or regulations at the state or federal level. See “Risk Factors — Risk Factors Relating to Our Business — Certain business practices of the insurance industry have been the subject of negative publicity and investigations by government authorities