Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 40

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 40
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 in the event of the insolvency or liquidation of any such subsidiary, following payment by
such subsidiary of its liabilities, the subsidiary may not have sufficient remaining assets to make payments to us as a shareholder or
otherwise. In the event of a default by any such subsidiary under any credit agreement or other indebtedness, its creditors could accelerate
the debt, prior to such subsidiary distributing amounts to us that we could use to make payments on the Exchange Notes. In addition, if
we caused any such subsidiary to pay a dividend to us to make payments on the Exchange Notes, and the dividend was determined to be improperly
paid, holders of the Exchange Notes who had received proceeds from such dividend payments could be required to return the payment to the
subsidiary’s creditors.

As of December 31, 2024,
our subsidiaries (other than Allied World) had approximately $3.3 billion principal amount of indebtedness. Our subsidiary debt may increase
in the future. The terms of the Exchange Notes do not limit the ability of our subsidiaries to incur additional indebtedness that is senior
to the Exchange Notes.

We may incur additional indebtedness that may adversely affect our ability to meet our financial obligations under the Exchange Notes.

As of December 31, 2024,
the Company and Allied World had approximately $8.6 billion aggregate principal amount of total outstanding senior unsecured indebtedness,
all of which would rank equally to the Notes. The Company’s other subsidiaries had approximately $3.3 billion aggregate principal
amount of total outstanding indebtedness, all of which would be structurally senior to the Notes. The Indenture that will govern the Exchange
Notes does not limit the amount of additional indebtedness that we may incur. We may incur additional indebtedness in the future, which
could have important consequences to holders of the Exchange Notes, including the following:

| · | we could have insufficient cash to meet our financial obligations, including our obligations under the 
 Exchange Notes;                                                                                        |

| · | our ability to obtain additional financing for working capital, capital expenditures or general corporate 
 purposes may be impaired; and                                                                             |

| · | a significant degree of debt could make us more vulnerable to changes in general economic conditions and 
 could also affect the financial strength ratings of our insurance and reinsurance subsidiaries.          |

The Indenture governing the
Notes provides that certain restrictive covenants will be automatically eliminated or amended effective as of the Amendment Date, including
in respect of the limitation on liens on capital stock of restricted subsidiaries.