Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 27

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 27
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 insurance regulatory authorities and capital support agreements with subsidiaries. Although we strive to be
soundly financed and maintain high levels of liquid assets, an inability of subsidiaries to pay dividends could have a negative impact
on our liquidity and ability to meet our obligations.

Our inability to obtain additional capital in the future as required could have a material adverse effect on our financial condition.

We are required to maintain
specified levels of capital to satisfy regulatory requirements, maintain our credit ratings and meet conditions in various commercial
and financing agreements. These requirements and the methods for calculating capital may change as regulators or rating agencies revise
their models. Our future capital requirements depend on many factors, including our ability to successfully write new business and to
establish premium rates and reserves at levels sufficient to cover losses. Our liquidity needs could increase materially and rapidly for
a variety of reasons, many of which are outside of our control. For example, our insurance subsidiaries may require us to make additional
investments in the event that their regulatory capital levels decline below desired levels as a result of net investment losses and future
impairments of investment securities, catastrophe losses or other conditions, including changes in regulatory capital requirements. To
the extent that the funds generated by our business are insufficient to fund future operations, we may need to raise additional funds
through equity or debt financings. Any equity or debt financing, if available at all, may be on terms that are not favorable to us, including
being subject to higher interest rates. The cost and availability of debt financing is affected by credit ratings. Our ability to raise
additional capital may be adversely affected by our credit ratings. If we cannot obtain adequate capital or if we fail to refinance our
existing debt as it comes due, our business, financial condition and profitability would be materially adversely affected. In addition,
certain of our financings are, and future financings may be exposed to, floating interest rate risks, and if interest rates increase,
an increased proportion of our cash flow may be required to service indebtedness.

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Our ability and/or the ability
of our subsidiaries to obtain additional financing for working capital, capital expenditures or acquisitions in the future may also be
limited under the terms of the Company’s unsecured revolving credit facility (the “Credit Facility”). The Credit
Facility contains various covenants that may restrict, among other things, our ability or the ability of our subsidiaries to incur additional
indebtedness, to create liens or other encum