Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 78

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 78
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 Financial Institutions.

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Constraints on Shares

The ICA contains certain
restrictions on the purchase or other acquisition, issue, transfer and voting of any shares of an insurance company. Pursuant to these
restrictions, no person is permitted to acquire shares of any of our Canadian insurance subsidiaries, or to acquire control of a company
which holds such an interest, if the acquisition would cause the person to have a “significant interest,” or increase an
existing “significant interest,” in any class of shares of the insurance company, unless the prior approval of the Minister
of Finance (Canada) is obtained. In addition, no insurance company is permitted to record any transfer or issue of its shares if the
transfer or issue would cause the person to have a significant interest, or increase an existing significant interest, in the insurance
company and such interest or increase has not been approved by the Minister of Finance (Canada). No person who has a significant interest
in such a company may exercise any voting rights attached to the shares held by such person, or entities controlled by that person, unless
the prior approval of the Minister of Finance (Canada) is obtained. In certain cases, if a person contravenes any of these restrictions,
the Minister of Finance (Canada) may, by order, direct that person to dispose of all or any portion of those shares. For these purposes,
a person has a significant interest in a class of shares of an insurance company where the aggregate of any shares of that class beneficially
owned by that person, or an entity controlled by that person and by any person associated or acting jointly or in concert with that person,
exceeds 10% of all outstanding shares of that class of shares of the company.

Provincial and Territorial Insurance Regulation

Each of our insurance subsidiaries
is subject to provincial and territorial regulation and supervision in each of the provinces and territories of Canada in which it carries
on business. Provincial insurance regulations deal primarily with the form and content of insurance contracts, the sale and marketing
of insurance products, including licensing and supervision of insurance distributors, and the settlement of insurance claims. In the
provinces of Alberta, Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island premium rates for
automobile insurance are regulated by public authorities. They require insurers to submit proposed rates to a regulatory body and have
them approved before use. While Québec has a public auto insurance system for its base coverage, rates for excess