Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 19

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 19
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 of interest rates and, consequently, the value of fixed income securities. Interest rates are highly sensitive
to many factors, including governmental monetary policies, domestic and international economic and political conditions, trade restrictions
and other factors beyond our control. General economic conditions, stock market conditions, environmental conditions, climate change,
policy changes and many other factors can also adversely affect the equity markets and, consequently, the value of the equity securities
we own.

Inflation rates in jurisdictions
that we operate or invest in have increased significantly in recent years, rising above the target inflation rate ranges set by governing
central banks. A significant portion of the upward pressure on prices has been attributed to the rising costs of labor, energy, food,
motor vehicles and housing, as well as overall challenges involved in managing the economy throughout the COVID-19 pandemic and continuing
global supply-chain disruptions. Inflationary increases may or may not be transitory and future inflation may be impacted by reductions
or increases in labor market constraints, supply-chain disruptions, tariffs and commodity prices. To address rising inflation, central
banks across the world have simultaneously increased interest rates, which have remained at elevated levels despite recent easing. Inflation
and the corresponding rise in interest rates in recent years have not had a material adverse effect on our business, however, any further
sustained upward trajectory in the inflation rate and corresponding increases to interest rates may have an adverse impact on our operating
results and our investments. We continue to monitor inflationary pressures in the jurisdictions we operate or invest in and assess any
potential effects on our operating results and investments.

In addition, defaults by
third parties who fail to pay or perform on their obligations could reduce our investment income and net gains on investment or result
in investment losses. The cycles of the insurance and reinsurance industries, general economic conditions and industry-specific factors
relating to our asset mix may cause fluctuations in our operating results.

Historically, we have experienced
fluctuations in operating results due to competition, frequency or severity of both catastrophic and non-catastrophic events, levels of
capital and underwriting capacity, general economic conditions and other factors. Demand for insurance and reinsurance is influenced significantly
by underwriting results of primary insurers and prevailing general economic conditions. Factors such as changes in the level of employment,
wages, consumer spending, business investment and government spending, the volatility and strength of the global capital markets and inflation
or deflation, all affect the business and economic environment and, ultimately, the demand for insurance and