Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 80

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 80
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as well as certain terms that cannot be changed without statutory or regulatory amendment.

Property and Casualty Insurance Compensation Corporation (“PACICC”)

PACICC was formed to respond
to claims by Canadian policyholders and refund certain premiums paid in advance, within limits, in the event of the insolvency of their
insurance company. The Canadian property and casualty insurance industry elects the directors of PACICC. PACICC is funded by its member
insurance companies, including our Canadian property and casualty insurance subsidiaries.

<div align='center'>United Kingdom</div>

General

Fairfax is subject to regulation
and supervision by the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”)
in relation to the carrying on by certain of our operating subsidiaries of regulated activities in the United Kingdom. Fairfax is also
subject to regulatory standards set by Lloyd’s of London (“Lloyd’s”) by way of our operations in the Lloyd’s
market.

Our U.K. operating
subsidiaries include:

| · | the                                                                                    
 following Lloyd’s managing agents: (a) Brit Syndicates Limited, which is the managing  
 agent of Syndicates 2987 and 2988; (b) Newline Underwriting Management Limited, which  
 is the managing agent of Syndicate 1218; and (c) Allied World Managing Agency Limited, 
 which is the managing agent of Syndicate 2232; and                                     |

| · | the                                                                                    
 U.K. branch of Allied World Assurance Company (Europe) dac, an Irish insurance company 
 (“AWAC Europe U.K. Branch”).                                                           |

| - 47 - |

This section is principally
focused on the application of the U.K. regulatory framework to the Lloyd’s managing agents referenced above (but a number
of the requirements also apply to AWAC Europe U.K. Branch, including, for example, the FCA’s conduct of business requirements).

U.K. Regulatory Framework

Dual-regulation by PRA and FCA

The PRA and the FCA are
the regulators for persons authorized under the Financial Services and Markets Act 2000 (“FSMA”) to undertake regulated
activities in the financial services sector in the United Kingdom. The PRA oversees and is responsible for the micro-prudential regulation
of banks, insurers and some large investment firms (the Financial Policy Committee, a sub-committee of the Bank of England, is responsible
for macro-prudential regulation in the United Kingdom). The FCA is responsible for conduct of business