Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 39

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 39
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 an increase in the amount of taxable income incurred by the
Company or its subsidiaries.

No assurance can be given that applicable tax laws, or the interpretation thereof, will not change or that new taxes will not be implemented which would adversely affect the Company.

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Technological or other changes could adversely impact demand, or the premiums payable, for the insurance coverages we offer.

Technological changes could
have unpredictable effects on the insurance and reinsurance industries. It is expected that new services and technologies will continue
to emerge that will affect the demand for insurance and reinsurance products and services, the premiums payable, the profitability of
such products and services and the risks associated with underwriting certain lines of business, including new lines of business. While
we strive to maintain an innovation working group comprised of members with diverse backgrounds from across our global operating companies
to regularly assess new services and technologies that may be applicable or disruptive to the insurance and reinsurance industries, failure
to understand evolving technologies, or to position us in the appropriate direction, or to deploy new products and services in a timely
way that considers customer demand and competitor activities could have an adverse impact on our business, financial condition, profitability
or cash flows.

Assessments and other surcharges for guaranty funds and second-injury funds and other mandatory pooling arrangements may reduce the profitability of our insurance subsidiaries.

Virtually all U.S. states
require insurers licensed to do business in their state to bear a portion of the loss suffered by some insureds as a result of impaired
or insolvent insurance companies. Many states also have laws that establish second injury funds to provide compensation to injured employees
for aggravation of a prior condition or injury. In addition, as a condition to the ability to conduct business in various jurisdictions,
some of our insurance subsidiaries are required to participate in mandatory property and casualty shared market mechanisms or pooling
arrangements, which provide various types of insurance coverage to individuals or other entities that otherwise are unable to purchase
that coverage from private insurers. The effect of these assessments and mandatory shared market mechanisms or changes in them could reduce
the profitability of our U.S. insurance subsidiaries in any given period or limit their ability to grow their business. Similarly, our
Canadian insurance subsidiaries contribute to mandatory guaranty funds that protect insureds in the event of a Canadian property and casualty
insurer becoming insolvent, and certain of our Asian insurance subsidiaries participate in mandatory pooling arrangements in their local
markets.

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