Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 43

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 43
---
 market for similar securities. |

Prevailing yields on similar
securities will affect the market value of the Exchange Notes. Assuming all other factors remain unchanged, the market value of the Exchange
Notes would be expected to decline as prevailing yields for similar securities rise and would be expected to increase as prevailing yields
for similar securities decline. Spreads over the U.S. treasury yields and comparable benchmark rates of interest for similar securities
will also affect the market value of the Exchange Notes in an analogous manner.

As a result of these factors,
you may only be able to sell your Exchange Notes at prices below those you believe to be appropriate, including prices below the price
at which you acquired the Initial Notes.

There may be no active market for the Exchange Notes.

There is currently no public
market for the Exchange Notes, and we do not intend to apply for listing of the Exchange Notes on any securities exchange or any automated
quotation system. Accordingly, we cannot be sure that any active market for the Exchange Notes will develop, or if one does develop,
that it will be maintained. If an active market for the Exchange Notes fails to develop or be sustained, the trading price of the Exchange
Notes could decline.

| - 25 - |

The Exchange Notes may be redeemed prior to maturity.

The Exchange Notes may be
redeemed, at our option, in whole at any time or in part from time to time on or after the closing of the Exchange Offer and prior to
the maturity date for the Exchange Notes, or in whole but not in part in the event of certain developments affecting Canadian or Bermuda
taxation. Holders of Exchange Notes should assume that our redemption option will be exercised if it is in our interest to redeem the
Exchange Notes. Holders whose Exchange Notes are redeemed would not be entitled to participate in any future increase in the market price
of the Exchange Notes and may not be able to reinvest their redemption proceeds in securities providing a comparable expected rate of
return to maturity as the Exchange Notes for a comparable level of risk. See “Description of the Notes — Optional Redemption”
and “Description of the Notes — Redemption for Tax Reasons”.

<div align='center'>Risk Factors Relating to the Exchange Offer</div>

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.

Only Initial Notes that
are validly tendered (and not valid