Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 39

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 39
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 our U.S. insurance subsidiaries in any given period or limit their ability to grow their business. Similarly, our
Canadian insurance subsidiaries contribute to mandatory guaranty funds that protect insureds in the event of a Canadian property and casualty
insurer becoming insolvent, and certain of our Asian insurance subsidiaries participate in mandatory pooling arrangements in their local
markets.

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

The market value of the Exchange Notes may be affected by changes in credit ratings.

The value of the Exchange
Notes will be affected by the general creditworthiness of the Company. Real or anticipated changes in credit ratings on the Exchange Notes
may affect the market value of the Exchange Notes. No assurance can be given that any credit rating assigned to the Exchange Notes will
not be lowered or withdrawn entirely by the relevant rating agency or that negative trends will not be applied by any ratings agency.

<div align='center'>- 23 -</div>

The Initial Notes were assigned
ratings by Morningstar DBRS, Moody’s Ratings, Fitch Ratings, Inc. and S&P Global Rating. One or more other independent
credit rating agencies may assign credit ratings to the Exchange Notes. The ratings may not reflect the potential impact of all risks
related to the structure, market, additional risk factors discussed herein and other factors that may affect the value of the Exchange
Notes. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal
by the rating agency at any time. No assurance can be given that a credit rating will remain constant for any given period of time or
that a credit rating will not be lowered or withdrawn entirely by a credit rating agency if, in its judgment, circumstances in the future
so warrant. A suspension, reduction or withdrawal at any time of the credit rating assigned to the Exchange Notes by one or more of the
credit rating agencies may adversely affect the cost and terms and conditions of our financing and could adversely affect the value and
trading of the Exchange Notes.

The Exchange Notes are effectively subordinated to the indebtedness of our subsidiaries (other than Allied World).

The Exchange Notes are effectively
subordinated to any existing and future indebtedness and other liabilities of our subsidiaries (other than Allied World, which is a Co-Obligor
of the Notes). You will not have any claim as a creditor against our subsidiaries or the assets of our subsidiaries, other than Allied
World, in respect of the Notes. Therefore,