Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 17

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 17
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 that are beyond our control.                                                                                 |
| · | There may be no active market for the Exchange Notes.                                                        |
| · | The Exchange Notes may be redeemed prior to maturity.                                                        |

Risk Factors Relating to the Exchange Offer

| · | If you do not validly tender your Initial Notes, you will not receive Exchange Notes in the Exchange Offer,                               
 and the resale restrictions applicable to the Initial Notes will continue to apply to those Initial Notes that are not validly exchanged. |
| · | The market for the Initial Notes may be significantly more limited after the Exchange Offer.                                              |
| · | The Exchange Offer may be terminated, cancelled or delayed.                                                                               |
| · | Some persons who participate in the Exchange Offer must deliver a prospectus in connection with resales                                   
 of the Exchange Notes.                                                                                                                    |

General Risk Factors

| · | Our computer and data processing systems may fail or be perceived to be insecure, which could adversely 
 affect our business and damage our customer relationships.                                              |
| · | A disruption of our information technology systems could significantly affect our business.             |
| · | We may continue to be adversely impacted by the conflicts in Ukraine and Israel and the development of  
 other geopolitical events and economic disruptions worldwide.                                           |

<div align='center'>Risk Factors Relating to Our Business</div>

If our actual claims exceed our claim reserves, our financial condition and results of operations could be adversely affected.

We maintain reserves to cover
our estimated ultimate unpaid liability for losses and loss adjustment expenses with respect to insurance and reinsurance policies underwritten
by the Company at the end of each reporting period. Our success is dependent upon our ability to accurately assess the risks associated
with the businesses that we reinsure or insure. If we fail to accurately assess the risks we assume, we may fail to establish appropriate
premium rates and our reserves may be inadequate to cover our losses. This could adversely affect our net earnings and financial condition
in future reporting periods.

<div align='center'>- 11 -</div>

Reserves do not represent
an exact calculation of liability, but instead represent estimates at a point in time involving actuarial and statistical projections
of our expectations of the ultimate settlement of claims incurred and the associated claims adjustment expense. Establishing an appropriate
level of claims reserves is an inherently uncertain process. We utilize both proprietary and commercially available actuarial models,
as well as historical insurance industry loss development patterns, to assist in the establishment of appropriate claim reserves.

In contrast to casualty losses,
which