Company: FRFXF
Filing Date: 2025-03-14
Form Type: F-4
Source: 0001104659-25-024010
Chunk: 23

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-14
Form: F-4
Chunk 23
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 various rating agencies, however there can be no assurance that these activities will avoid a downgrade
by rating agencies. We can provide no assurance that we will not experience such downgrades in the future.

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We may not be successful in achieving our strategic objectives.

We may periodically and opportunistically
acquire other insurance and reinsurance companies or execute other strategic initiatives developed by management. Although we undertake
due diligence prior to the completion of an acquisition, it is possible that unanticipated factors could arise and there is no assurance
that the anticipated financial or strategic objectives following an integration effort or the implementation of a strategic initiative
will be achieved, which could adversely affect our financial condition, profitability or cash flows.

We may periodically explore
opportunities to make strategic investments in all or part of certain businesses or companies. Acquisitions may involve a number of special
risks, including failure to retain key personnel, unanticipated events or circumstances, increased exposure to industry-specific and credit
risks and potential for legal liabilities and incurrence of indebtedness to finance the transactions, some or all of which could have
a material adverse effect on our business, results of operations and financial position. We cannot be sure that any acquired businesses
will achieve the anticipated revenues, income and synergies, or that acquisitions of loan portfolios will perform as anticipated. Failure
on our part to manage our acquisition strategy successfully could have a material adverse effect on our business, results of operations
and financial position. We cannot be sure that we will be able to identify appropriate targets, profitably manage additional businesses,
investments and/or portfolios or successfully integrate any acquired business into our operations.

The strategies and performance
of our subsidiaries, and the alignment of those strategies throughout our organization, are regularly assessed through various processes
undertaken by senior management and our Board of Directors, however there can be no assurance that these efforts will be successful to
mitigate the risks identified above.

We may hold derivative instruments, which could result in significant losses and volatility of our operating results.

We may hold significant investments
in derivative instruments and the market value and liquidity of these investments are volatile or extremely volatile and may vary dramatically
up or down in short periods, and these circumstances may be exacerbated by adverse economic conditions, fluctuations in interest rates
and the volatility in the public markets. We may use derivative instruments to manage or reduce risks or as a cost-effective way to synthetically
replicate the investment characteristics of an otherwise permitted investment. The