Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 38

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 38
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 and to reduce any Pillar Two top-up taxes payable by the Company in respect of Bermuda.

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The Company is also subject
to the application of the Canadian excessive interest and finance expense limitation rules (enacted on June 20, 2024) that limit
the deductibility of certain interest expenses in certain circumstances, which may result in an increase in the amount of taxable income
incurred by the Company or its subsidiaries.

No assurance can be given
that applicable tax laws, or the interpretation thereof, will not change or that new taxes will not be implemented which would adversely
affect the Company.

Technological or other changes could adversely impact demand, or the premiums payable, for the insurance coverages we offer.

Technological changes could
have unpredictable effects on the insurance and reinsurance industries. It is expected that new services and technologies will continue
to emerge that will affect the demand for insurance and reinsurance products and services, the premiums payable, the profitability of
such products and services and the risks associated with underwriting certain lines of business, including new lines of business. While
we strive to maintain an innovation working group comprised of members with diverse backgrounds from across our global operating companies
to regularly assess new services and technologies that may be applicable or disruptive to the insurance and reinsurance industries, failure
to understand evolving technologies, or to position us in the appropriate direction, or to deploy new products and services in a timely
way that considers customer demand and competitor activities could have an adverse impact on our business, financial condition, profitability
or cash flows.

Assessments and other surcharges for guaranty funds and second-injury funds and other mandatory pooling arrangements may reduce the profitability of our insurance subsidiaries.

Virtually all U.S. states
require insurers licensed to do business in their state to bear a portion of the loss suffered by some insureds as a result of impaired
or insolvent insurance companies. Many states also have laws that establish second injury funds to provide compensation to injured employees
for aggravation of a prior condition or injury. In addition, as a condition to the ability to conduct business in various jurisdictions,
some of our insurance subsidiaries are required to participate in mandatory property and casualty shared market mechanisms or pooling
arrangements, which provide various types of insurance coverage to individuals or other entities that otherwise are unable to purchase
that coverage from private insurers. The effect of these assessments and mandatory shared market mechanisms or changes in them could reduce
the profitability of