Exhibit 99.1

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ANNUAL INFORMATION FORM

FOR THE YEAR ENDED DECEMBER 31, 2013

GRAPHIC

March 7, 2014

Fairfax Financial Holdings Limited
95 Wellington Street West, Suite 800
Toronto, Ontario Canada M5J 2N7

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FAIRFAX FINANCIAL HOLDINGS LIMITED  2013 ANNUAL INFORMATION FORMTABLE OF CONTENTS AND INFORMATION INCORPORATED BY REFERENCE

Page ReferenceAnnual
Information Form

2013
Annual Report(1)

Management
Proxy Circular(2)CORPORATE STRUCTURE


3DESCRIPTION OF THE BUSINESS


4


2-3, 33-114, 116-208GENERAL DEVELOPMENT OF THE BUSINESS


5


4-21, 72-78, 86-89RISK FACTORS


6


89-106, 197-205DIVIDENDS


6CAPITAL STRUCTURE


6MARKET FOR SECURITIES


9DIRECTORS AND OFFICERS


11LEGAL PROCEEDINGS


13


82-83INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS


13TRANSFER AGENTS AND REGISTRARS


13MATERIAL CONTRACTS


13INTERESTS OF EXPERTS


13AUDIT COMMITTEE


14





18-19ADDITIONAL INFORMATION


15


(1)Incorporated
by reference from the Fairfax Financial Holdings Limited 2013 Annual Report (the "2013 Annual Report").(2)Incorporated
by reference from the Fairfax Financial Holdings Limited Management Proxy Circular dated March 7, 2014 (the "Management Proxy
Circular").


Except
as otherwise noted, all information given is at, or for the fiscal year ended, December 31, 2013. As the majority of our operations are in the United States or
conducted in U.S. dollars, we report our consolidated financial statements in U.S. dollars. All comparative financial information, financial data and other monetary data in this Annual
Information Form are reported in U.S. dollars unless otherwise noted.

Copies
of this Annual Information Form, as well as copies of the 2013 Annual Report and the Management Proxy Circular (parts of which are incorporated herein by reference), may be
obtained from our Corporate Secretary at 95 Wellington Street West, Suite 800, Toronto, Ontario, M5J 2N7. These documents may also be found on our website at www.fairfax.ca or on
SEDAR at www.sedar.com. See "Additional Information".

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CORPORATE STRUCTURE

Name, Address and Incorporation

Fairfax Financial Holdings Limited ("Fairfax") is a financial services holding company which, through its subsidiaries, is engaged in
property and casualty insurance and reinsurance and investment management. Fairfax was incorporated under theCanada Corporations Acton
March 13, 1951 and continued under theCanada Business Corporations Actin 1976. Our original name of Markel Service of Canada Limited was
subsequently changed to Markel Financial Holdings Limited and, in May 1987, to our current name of Fairfax Financial Holdings Limited. Our registered and head office is located at
95 Wellington Street West, Suite 800, Toronto, Ontario M5J 2N7.

Intercorporate Relationships

The following is a list of our principal subsidiaries. Indented companies are subsidiaries of the non-indented company which precedes
them. All subsidiaries were wholly-owned, directly or through another subsidiary, as of December 31, 2013 unless otherwise noted.

Name

Jurisdiction of
IncorporationCanadian insurance subsidiariesNorthbridge Financial Corporation

CanadaNorthbridge Indemnity Insurance Corporation

CanadaFederated Insurance Company of Canada Limited

CanadaNorthbridge General Insurance Corporation

CanadaNorthbridge Personal Insurance Corporation

CanadaU.S. insurance subsidiariesCrum & Forster Holdings Corp.

DelawareUnited States Fire Insurance Company

DelawareHartville Group, Inc.

NevadaThe North River Insurance Company

New JerseySeneca Insurance Company, Inc.

New YorkFirst Mercury Insurance Company

IllinoisZenith National Insurance Corp.

DelawareZenith Insurance Company

CaliforniaAsian insurance and reinsurance subsidiariesFirst Capital Insurance Limited (98.0% owned)

SingaporeFalcon Insurance Company (Hong Kong) Ltd.

Hong KongThe Pacific Insurance Berhad

MalaysiaOther insurance subsidiariesFairfax Brasil Seguros Corporativos S.A.

BrazilReinsurance and insurance subsidiariesOdyssey Re Holdings Corp.

DelawareOdyssey Reinsurance Company

ConnecticutAdvent Capital (Holdings) Ltd.

United KingdomPolskie Towarzystwo Reasekuracji SA

PolandCRC Reinsurance Limited

BarbadosWentworth Insurance Company Ltd.

Barbados


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Name

Jurisdiction of
IncorporationRunoff subsidiariesClearwater Insurance Company

DelawareFairmont Specialty Group Inc.

DelawareTIG Insurance Company

CaliforniaGeneral Fidelity Insurance Company

South CarolinaAmerican Safety Holdings Corp.

GeorgiaRiverStone Insurance Limited

United KingdomRiverStone Insurance (UK) Limited

United KingdomRiverStone Managing Agency Limited

United KingdomInvestment management subsidiaryHamblin Watsa Investment Counsel Ltd.

CanadaOther non-insurance and reinsurance subsidiariesKitchen Stuff Plus, Inc. (55.0% owned)

OntarioMFXchange Holdings Inc.

OntarioRidley Inc. (73.6% owned)

ManitobaSporting Life Inc. (75.0% owned)

OntarioTommy & Lefebvre Inc.

OntarioThomas Cook (India) Limited (75% owned)

IndiaIKYA Human Capital Solutions Private Limtied (77.3% owned)

IndiaWilliam Ashley China Corporation

Canada


DESCRIPTION OF THE BUSINESS

Overview

Fairfax is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and
reinsurance and investment management. Fairfax's corporate objective is to achieve a high rate of return on invested capital and build long-term shareholder value. We seek to differentiate ourselves
by combining disciplined underwriting with the investment of our assets on a total return basis.

The
financial performance of a property and casualty company is determined by two principal factors: (i) the operating results of the insurance operations, which is determined by
the level of premiums collected in relation to claims and operating costs, and (ii) the returns generated by the investment portfolios of the insurers.

Our
insurance and reinsurance companies operate on a decentralized basis, with autonomous management teams applying a focused underwriting strategy to their markets. Our subsidiaries
provide a full range of property and casualty products, maintaining a diversified portfolio of risks across all classes of business, geographic regions, and types of insureds.

Our
investments are centrally managed for all the Fairfax group of companies by Hamblin Watsa Investment Counsel Ltd. ("Hamblin Watsa"), a wholly-owned subsidiary of Fairfax.
Hamblin Watsa emphasizes a conservative value investment philosophy, seeking to invest assets on a total return basis, which includes realized and unrealized gains over the long-term.

Since
2011, we have acquired companies that are in industries other than insurance and re-insurance where the companies met our investment criteria. Such companies are run on a
decentralized basis with autonomous management and represent a small portion of Fairfax's consolidated operations.

For
a full description of our business see our corporate profile, the notes to our audited consolidated financial statements and management's discussion and analysis of financial
conditions and results of operations, all in our 2013 Annual Report.

Competition

The property and casualty insurance industry and the reinsurance industry are both highly competitive, and we believe that they will
remain highly competitive in the foreseeable future. Competition in our industry is

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based
on many factors, including premiums charged and other terms and conditions offered, products and services provided, commission structure, financial ratings assigned by independent rating
agencies, speed of claims payment, reputation, selling effort, perceived financial strength and the experience of the insurer or reinsurer in the line of insurance or reinsurance to be written. We
compete, and will continue to compete, with major U.S. and non-U.S. insurers and reinsurers, as well as certain underwriting syndicates, some of which have greater financial, marketing and
management resources than we do. We also are aware that other financial institutions, such as banks, are now able to offer services similar to those offered by our insurance subsidiaries. In addition,
in recent years we have seen the creation of alternative products from capital market participants that are intended to compete with reinsurance products.

Cycles of Insurance

Demand for insurance and reinsurance is influenced significantly by the underwriting results of primary insurers and prevailing general
economic conditions. Factors such as changes in the level of employment, wages, consumer spending, business investment and government spending, the volatility and strength of the global capital
markets and inflation or deflation all affect the business and economic environment and, ultimately, the demand for insurance and reinsurance products.

The
property and casualty insurance business historically has been characterized by periods of intense price competition due to excess underwriting capacity, known as a soft insurance
market, when companies may underprice business to gain market share. Such inadequate pricing reduces underwriting margins. When excess capital is removed from the industry, it leads to periods when
shortages of underwriting capacity have permitted attractive premium levels. This is known as a hard insurance market. We expect to continue to experience the effects of this cyclicality.

In
the reinsurance industry, the supply of reinsurance is related to prevailing prices and levels of surplus capacity that, in turn, may fluctuate in response to changes in rates of
return being realized. It is possible that premium rates or other terms and conditions of trade could vary in the future, that the present level of demand will not continue because the larger insurers
may require less reinsurance or that the present level of supply of reinsurance could increase as a result of capital provided by recent or future market entrants or by existing reinsurers.

Employees

As at December 31, 2013, Fairfax (the holding company) had 38 employees and our operating subsidiaries had in
aggregate approximately 10,900 employees.

GENERAL DEVELOPMENT OF THE BUSINESS

Over the past three completed financial years our total assets have increased from $33.4 billion as at December 31, 2011
to $36.0 billion as at December 31, 2013. Common shareholders' equity was $7.4 billion, $7.7 billion and $7.2 billion as at December 31, 2011, 2012 and 2013,
respectively. For the year ended December 31, 2011, Fairfax had revenue of $7.5 billion and net earnings of $47.8 million. For the year ended December 31, 2012, Fairfax had
revenue of $8.0 billion and net earnings of $535.0 million. For the year ended December 31, 2013, Fairfax had revenue of $5.9 billion and a net loss of
$564.5 million.

For
a description of the recent developments of our company, see our Chairman's letter to shareholders in our 2013 Annual Report. For a description of our acquisitions and divestitures
over the last three years, see Note 23 (Acquisitions and Divestitures) to our audited consolidated financial statements in our 2013 Annual Report. We have not filed a
Form 51-102F4  Business Acquisition Report in respect of any of our acquisitions. For a description of our capital transactions, see Note 16 (Total
Equity) to our annual consolidated financial statements in our 2013 Annual Report. For a description of our debt profile, see Note 15 (Subsidiary Indebtedness, Long Term Debt and Credit
Facilities) to our audited consolidated financial statements in our 2013 Annual Report.

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RISK FACTORS

We have identified certain risks and uncertainties to which our business, operations and financial conditions are subject, which are
described under "Issues and Risks" on pages 197-205 of our 2013 Annual Report. Additional risks and uncertainties not known to us or that we currently believe are not reasonably likely to
materially affect us may also impair our business, results of operations and financial condition. An explanation of our risk management approach can be found in Note 24 (Financial Risk
Management) to our 2013 Annual Report.

DIVIDENDS

We have declared the following dividends since 2011 on our subordinate voting shares and multiple voting shares (collectively, the
"Equity Shares"):



The
dividends were payable in U.S. dollars. Future dividends on our Equity Shares, if any, are expected to be paid in U.S. currency.

Dividends
of CDN$1.4375 per Series C preferred share were paid to holders of our Series C preferred shares during each of 2011, 2012 and 2013.

Dividends
of CDN$1.1875 per Series E preferred share were paid to holders of our Series E preferred shares during each of 2011, 2012 and 2013.

Dividends
of CDN$1.25 per Series G preferred share were paid to holders of our Series G preferred shares during each of 2011, 2012 and 2013.

Dividends
of CDN$1.25 per Series I preferred share were paid to holders of our Series I preferred shares during each of 2011, 2012 and 2013.

Dividend
payments on our Series K preferred shares commenced during 2012. Dividends of CDN$0.97089 and CDN$1.25 per Series K preferred share were paid to holders of our
Series K preferred shares during each of 2012 and 2013, respectively.

The
declaration and payment of dividends are at the sole discretion of our board of directors and depend on, among other things, our financial condition, general business conditions,
legal restrictions regarding the payment of dividends by us and other factors which the board of directors may in the future consider to be relevant. As a holding company with no direct operations, we
rely on cash dividends and other payments from our subsidiaries and our own cash balances to pay dividends to our shareholders.

CAPITAL STRUCTURE

General Description

For a general description of our capital structure please see "Description of Subordinate Voting Shares and Preferred Shares" at
pages 42-48 of our short form base shelf prospectus dated December 10, 2012 filed with the Canadian securities regulatory authorities and incorporated herein by reference.

On
February 1, 2010 we issued 8,000,000 Series E preferred shares. On February 26, 2010 we issued 563,381 subordinate voting shares. On July 28,
2010 we issued 10,000,000 Series G preferred shares. On October 5, 2010 we issued 12,000,000 Series I preferred shares. On March 21, 2012 we issued
9,500,000 Series K preferred shares. On November 15, 2013, we issued 1,000,000 subordinate voting shares.

For
a general description of each series of our preferred shares see our prospectus supplements referenced below, each of which has been filed with the Canadian securities regulatory
authorities and is incorporated herein by reference:



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Our
short form base shelf prospectus and supplementary prospectuses are available on SEDAR at www.sedar.com.

Ratings

Long Term Debt

Our senior, unsecured long term debt has been assigned a rating of BBB- with a positive outlook by Standard & Poor's
Ratings Services ("S&P"). Moody's Investors Service ("Moody's") has assigned a Baa3 rating with a stable outlook on our senior unsecured long term debt. DBRS Limited ("DBRS") has assigned a BBB
rating with a stable outlook on our senior unsecured long term debt. A.M. Best ("A.M. Best") has assigned a rating of bbb on our senior unsecured long term debt.

S&P's
credit ratings are on a long term debt rating scale that ranges from AAA to D, which represents the range from highest to lowest quality of such securities rated. A rating of
BBB- by S&P is the fourth highest of ten categories and indicates that the obligation exhibits adequate protection parameters. However, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

Moody's
credit ratings are on a long-term debt rating scale that ranges from Aaa to C, which represents the range from highest to lowest quality of such securities rated. A rating of Baa
by Moody's is the fourth highest of nine categories and is assigned to debt securities that may possess certain speculative elements and are subject to moderate risk. The addition of a 1, 2 or
3 modifier after a rating indicates the relative standing within a particular rating category. The modifier 1 indicates that the issue ranks in the higher end of its
generic rating category, the modifier 2 indicates a mid-range ranking and the modifier 3 indicates that the issue ranks in the lower end of its generic rating category.

The
DBRS credit ratings are on a long-term debt rating scale that ranges from AAA to D, which represents the range from highest to lowest quality of such securities rated. A rating of
BBB is in the fourth highest category of ten categories and is assigned to debt that is considered to be of adequate credit quality. Protection of interest and principal is considered acceptable, but
the entity is fairly susceptible to adverse changes in financial and economic conditions, or there may be other adverse conditions present which reduce the strength of the entity and its rated
securities. Each rating category is denoted by the subcategories "high" and "low". The absence of either a "high" or "low" designation indicates the rating is in the "middle" of the category.

A.M.
Best credit ratings are on a long term debt rating scale that ranges from aaa to d, which represents the range from highest to lowest quality of such securities rated. A rating of
bbb is the fourth highest category of eight categories and is assigned to debt that is considered to be of adequate credit quality, however, the issue is more susceptible to changes in economic or
other conditions. The assignment of a plus (+) or minus (-) designation after a rating indicates whether the credit quality is near the top or bottom of a category.

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Preferred Shares

Our preferred shares have been assigned the following ratings:

Series of Preferred Shares

S&P Rating

DBRS Rating

Moody's Rating

AM BestSeries C preferred shares


P-3


Pfd-3


Ba2


bb+Series E preferred shares


P-3


Pfd-3


Ba2


bb+Series G preferred shares


P-3


Pfd-3


Ba2


bb+Series I preferred shares


P-3


Pfd-3


Ba2


bb+Series K preferred shares


P-3


Pfd-3


Ba2


bb+


S&P's
preferred share rating scale is a current assessment of the creditworthiness of an obligor with respect to a specified preferred share obligation issued in the Canadian market,
relative to preferred shares issued by
other issuers in the Canadian market. There is a direct correlation between the specific ratings assigned on the Canadian preferred share scale and the various rating levels on the global debt rating
scale. The rating scale ranges from P-1(High) to D, which represents the range from highest to lowest quality of such securities rated. A rating of P-3 by S&P is the third highest of eight
categories and indicates that the obligation is less vulnerable to nonpayment than other speculative issues, however faces major ongoing uncertainties or exposure to adverse business, financial, or
economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

The
DBRS preferred share rating scale is meant to give an indication of the risk that a borrower will not fulfill its full obligations in a timely manner. The rating scale ranges from
Pfd-1 to D, which represents the range from highest to lowest quality of such securities rated. A rating of Pfd-3 is in the third highest category of six categories and is assigned to preferred
shares that are considered to be of adequate credit quality. Protection of dividends and principal is considered acceptable, but the entity is susceptible to adverse changes in financial and economic
conditions, or there may be other adverse conditions present which detract from debt protection. Each rating category is denoted by the subcategories "high" and "low". The absence of either a "high"
or "low" designation indicates the rating is in the "middle" of the category.

Moody's
preferred share rating scale expresses an opinion of the issuer's capacity to honor the contractual terms of an obligation on a rating scale that ranges from Aaa to C, which
represents the range from highest to lowest quality of such securities rated. A rating of Ba2 by Moody's is the fifth highest of nine categories and is assigned to obligations that are judged
to have speculative elements and are subject to substantial credit risk. The addition of a 1, 2 or 3 modifier after a rating indicates the relative standing within a particular rating category.
The modifier 1 indicates that the issue ranks in the higher end of its generic rating category, the modifier 2 indicates a mid-range ranking and the modifier 3 indicates that the
issue ranks in the lower end of its generic rating category.

A.M.
Best debt and preferred share rating scale is on a rating scale that ranges from aaa to d, which represents the range from highest to lowest quality of such securities rated. A
rating of bb+ is the fifth highest category to securities that are considered to be speculative. The assignment of a plus (+) or minus (-) designation after a rating indicates whether the
credit quality is near the top or bottom of a category.

These
credit ratings are intended to provide investors with an independent measure of credit quality of any issue of securities. The credit ratings accorded to our debt and preferred
shares by the rating agencies are not recommendations to purchase, hold or sell any security in as much as such ratings do not comment as to market price or suitability for a particular investor. Any
rating may not remain in effect for any given period of time or may be revised or withdrawn entirely by a rating agency in the future if in its judgment circumstances so warrant, and if any such
rating is so revised or withdrawn, Fairfax is under no obligation to update this disclosure. We have paid customary rating fees to S&P, Moody's, DBRS and A.M. Best in connection with the
above-mentioned ratings. In addition, we have made customary payments in respect of certain other services provided to us by S&P and A.M. Best during the last two years.

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MARKET FOR SECURITIES

Trading Price and Volume

Our subordinate voting shares are listed for trading on the Toronto Stock Exchange (the "TSX") and trade in Canadian dollars
under the symbol "FFH" and in U.S. dollars under the symbol "FFH.U". Our Series C preferred shares are listed on the TSX under the symbol "FFH.PR.C", our Series E preferred shares
are listed on the TSX under the symbol "FFH.PR.E", our Series G preferred shares are listed on the TSX under the symbol "FFH.PR.G", our Series I preferred shares are listed on the TSX
under the symbol "FFH.PR.I" and our Series K preferred shares are listed on the TSX under the symbol "FFH.PR.K". The following table sets out the market price range in CDN$ and aggregate
trading volume of our subordinate voting shares and preferred shares on the TSX for the periods indicated:

Subordinate Voting Shares

Month

High

Low

Close

Trading VolumeJanuary, 2013


373.00


356.10


358.00


691,034February, 2013


400.31


352.60


391.84


686,701March, 2013


402.00


382.00


396.66


492,870April, 2013


405.39


386.98


404.15


468,178May, 2013


438.00


400.01


418.65


600,336June, 2013


424.57


393.01


413.57


423,298July, 2013


424.62


407.00


408.00


384,933August, 2013


437.00


410.00


432.77


338,692September, 2013


435.84


413.38


416.56


476,788October, 2013


477.46


419.00


455.00


532,498November, 2013


455.00


402.25


412.81


1,654,072December, 2013


426.57


404.05


424.11


587,569


Series C Preferred Shares

Month

High

Low

Close

Trading VolumeJanuary, 2013


26.25


25.19


26.15


270,113February, 2013


26.25


25.75


26.12


165,018March, 2013


26.54


25.90


26.16


196,727April, 2013


26.25


25.50


25.65


152,580May, 2013


26.07


25.60


25.90


158,899June, 2013


25.95


24.71


25.43


297,324July, 2013


25.72


24.91


25.30


181,937August, 2013


25.36


23.35


24.75


232,071September, 2013


25.04


24.22


24.65


214,560October, 2013


24.75


23.91


24.32


306,144November, 2013


25.00


24.09


24.60


245,438December, 2013


24.80


23.95


24.50


208,283


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Series E Preferred Shares

Month

High

Low

Close

Trading VolumeJanuary, 2013


23.31


22.11


23.29


259,557February, 2013


24.23


23.23


23.95


274,975March, 2013


24.40


23.80


24.20


240,850April, 2013


24.22


23.65


23.88


264,445May, 2013


24.20


23.81


24.11


133,541June, 2013


24.15


21.80


22.33


117,494July, 2013


23.00


20.50


20.82


131,873August, 2013


21.15


19.33


21.15


125,398September, 2013


21.39


20.05


20.14


213,139October, 2013


20.58


19.48


19.89


223,298November, 2013


19.82


18.38


19.24


350,837December, 2013


19.33


17.70


18.61


369,960


Series G Preferred Shares

Month

High

Low

Close

Trading VolumeJanuary, 2013


25.00


23.76


24.94


377,784February, 2013


25.54


24.75


25.20


211,590March, 2013


25.85


25.15


25.85


209,731April, 2013


25.80


24.34


24.76


223,185May, 2013


25.20


24.55


24.96


222,090June, 2013


25.03


23.06


23.79


153,189July, 2013


24.00


22.01


22.44


192,559August, 2013


22.46


20.92


22.30


195,082September, 2013


23.30


22.00


22.10


198,175October, 2013


22.40


20.28


20.49


364,147November, 2013


20.94


19.69


20.93


576,175December, 2013


20.99


19.46


20.69


658,405


Series I Preferred Shares

Month

High

Low

Close

Trading VolumeJanuary, 2013


25.53


24.86


25.28


204,575February, 2013


25.94


25.10


25.75


285,271March, 2013


26.13


25.65


25.91


307,465April, 2013


26.17


25.26


25.48


246,833May, 2013


25.50


25.12


25.40


167,255June, 2013


25.44


23.53


24.54


203,841July, 2013


24.88


23.20


23.50


163,226August, 2013


23.70


21.93


23.35


201,592September, 2013


23.55


22.50


22.55


193,628October, 2013


22.76


21.40


21.43


405,908November, 2013


21.79


20.54


21.77


533,841December, 2013


21.95


20.73


21.95


484,972


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Series K Preferred Shares

Month

High

Low

Close

Trading VolumeJanuary, 2013


25.95


25.25


25.84


236,787February, 2013


26.30


25.55


26.03


138,118March, 2013


26.50


25.78


26.50


188,656April, 2013


26.50


25.70


26.00


363,649May, 2013


26.40


25.86


25.88


221,065June, 2013


25.95


24.65


25.10


189,949July, 2013


25.21


24.95


25.15


155,413August, 2013


25.14


24.07


24.95


191,942September, 2013


25.19


24.41


24.74


155,937October, 2013


24.90


24.45


24.65


241,319November, 2013


25.12


24.29


25.12


217,685December, 2013


25.01


23.89


24.25


226,371


Prior Sales

On January 21, 2013, we completed the sale of CDN$250 million aggregate principal amount of a re-opening of 5.84% senior
notes due 2022 at an issue price of $103.854.

DIRECTORS AND OFFICERS

Name, Occupation and Security Holding

Directors

Each director holds office until the next annual meeting of shareholders or until a successor is elected or appointed.

Name and municipality
of residence

Principal occupation during the last five years

Date first electedAnthony F. Griffiths(a)(b)(c)(d)
Toronto, Ontario

Independent Business Consultant and Corporate Director


2002Robert J. Gunn(a)(c)
Toronto, Ontario

Independent Business Consultant and Corporate Director


2007Alan D. Horn(a)
Toronto, Ontario

President and Chief Executive Officer, Rogers Telecommunications Limited and Chairman of Rogers Communications Inc.


2008John R.V. Palmer(b)
Toronto, Ontario

Chairman of the Toronto Leadership Centre


2012Timothy R. Price(a)(b)
Toronto, Ontario

Chairman of the Brookfield Funds,
division of Brookfield Asset Management Inc.


2010Brandon W. Sweitzer(b)(c)
New Canaan, Connecticut, U.S.A.

Dean, School of Risk Management, St. John's University


2004V. Prem Watsa
Toronto, Ontario

Chairman and Chief Executive Officer, Fairfax; Vice President, Hamblin Watsa Investment Counsel Ltd.


1985Notes:


(a)Member
of the Audit Committee (Chair  Alan D. Horn)(b)Member
of the Governance and Nominating Committee (Chair  Anthony F. Griffiths)(c)Member
of the Compensation Committee (Chair  Anthony F. Griffiths)(d)Lead
Director


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Officers

Name and municipality
of residence

Principal occupation during the last five years
(office is with Fairfax, unless otherwise specified)

Office heldDavid Bonham
Mississauga, Ontario

Vice President and Chief Financial Officer. Prior to August 2012, Vice President, Financial Reporting

Vice President and Chief Financial OfficerPeter Clarke
Richmond Hill, Ontario

Vice President and Chief Risk Officer

Vice President and Chief Risk OfficerJean Cloutier
Toronto, Ontario

Vice President, International Operations. Prior to May 2009, Vice President and Chief Actuary

Vice President, International OperationsBradley Martin
Toronto, Ontario

Vice President, Strategic Investments. Prior to early 2012, Vice President, Chief Operating Officer and Corporate Secretary

Vice President, Strategic InvestmentsPaul Rivett
Toronto, Ontario

President; Chief Operating Officer, Hamblin Watsa Investment Counsel Ltd. From July 2012 to July 2013, Vice President, Operations of Fairfax. Prior thereto, Vice President and Chief Legal Officer of
Fairfax.

PresidentEric Salsberg
Toronto, Ontario

Vice President, Corporate Affairs and Corporate Secretary. Prior to early 2012, Vice President, Corporate Affairs

Vice President, Corporate Affairs and Corporate SecretaryRonald Schokking
Toronto, Ontario

Vice President and Treasurer

Vice President and TreasurerJohn Varnell
Caledon, Ontario

Vice President, Corporate Development. From June 2010 to August 2012, Vice President and Chief Financial Officer. Prior thereto, Chief Financial Officer of Northbridge Financial Corporation

Vice President, Corporate DevelopmentV. Prem Watsa
Toronto, Ontario

Chairman and Chief Executive Officer; Vice President, Hamblin Watsa Investment Counsel Ltd.

Chairman and Chief Executive Officer


Directors and Officers  Ownership of Securities

As at December 31, 2013, to our knowledge, the directors and officers of Fairfax beneficially owned, directly or indirectly, or
exercised control or direction over, approximately 410,299 of our subordinate voting shares (2.0%) and 1,548,000 of our multiple voting shares (100%). V. Prem Watsa, our Chairman and Chief Executive
Officer, controls shares representing 44.0% of the total votes attached to all classes of our shares (100% of the total votes attached to the multiple voting shares and 1.5% of the total votes
attached to the subordinated voting shares).

Cease Trade Orders, Bankruptcies, Penalties or Sanctions

Mr. Griffiths was a director of Brazilian Resources Inc. until June 2004. The company was subject to an insider
cease trade order issued by the Ontario Securities Commission (the "OSC") on June 10, 2001 relating to the company's late filing of financial statements. All required documents were
filed by that company and the

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order
was rescinded on July 30, 2001. That company was also subject to a cease trade order issued by the OSC on June 12, 2003 due to the late filing of financial statements. All required
documents were filed by that company and the cease trade order was rescinded on July 29, 2003. Mr. Griffiths was a director of Slater Steel Inc. until August 2004. In
June 2003, Slater Steel obtained a court order providing creditor protection under the provisions of theCompanies' Creditors Arrangement Act(Canada) (the "CCAA"). In addition, Slater Steel and the Canadian court-ordered monitor filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code(the "USBC") with respect to Slater Steel's United States and Canadian subsidiaries.
PricewaterhouseCoopers was appointed as trustee in bankruptcy over the remaining assets of Slater Steel. Mr. Griffiths was a director of PreMD Inc. from 1995 to February 2010,
and, in connection with the voluntary delisting of the company's shares from the TSX, cease trade orders were issued in April 2009 (and remain in effect) requiring all trading in and all
acquisitions of securities of the company to cease permanently due to the company's failure to file continuous disclosure materials required by Ontario securities law.

Mr. Griffiths
and Mr. Rivett were directors of Resolute Forest Products Inc. (formerly AbitibiBowater Inc.) when that company and certain of its U.S. and
Canadian subsidiaries filed for protection in Canada under the CCAA and for relief under Chapter 11 of the USBC in the United States in April 2009. On December 9, 2010 that
company emerged from creditor protection under the CCAA in Canada and Chapter 11 of the USBC in the United States.

Conflicts of Interest

There is no existing or, to our knowledge, potential material conflicts of interest between our company or a subsidiary of our company
and any director or officer of our company or a subsidiary of our company.

LEGAL PROCEEDINGS

A description of the legal proceedings to which we are a party to during 2013 is included in Note 20 (Contingencies and
Commitments) in our 2013 Annual Report.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

During the three-year period ending December 31, 2013 and during the current financial year up to the date hereof, none of our
directors, executive officers, 10 percent shareholders or any of their associates or affiliates had a material interest in any transaction that has materially affected or will materially affect
Fairfax on a consolidated basis.

TRANSFER AGENTS AND REGISTRARS

The transfer agent and registrar for our subordinate voting shares in Canada is Valiant Trust Company, 130 King Street West,
Suite 710, P.O. Box 34, Toronto, Ontario M5X 1A9, and in the
United States is Registrar and Transfer Company, 10 Commerce Drive, Cranford, New Jersey, 07016-3572. The transfer agent and registrar for our Series C preferred shares,
Series E preferred shares, Series G preferred shares, Series I preferred shares and Series K preferred shares is Valiant Trust Company, 130 King Street West,
Suite 710, P.O. Box 34, Toronto, Ontario M5X 1A9.

MATERIAL CONTRACTS

There are no contracts which are material to Fairfax, on a consolidated basis.

INTERESTS OF EXPERTS

Our independent auditor is PricewaterhouseCoopers LLP, Chartered Accountants, Licensed Public Accountants who has issued an
independent auditor's report dated March 7, 2014 in respect of Fairfax's consolidated financial statements as at December 31, 2013 and 2012 and for the two years ended
December 31, 2013 and Fairfax's internal control over financial reporting as at December 31, 2013. PricewaterhouseCoopers LLP has advised that they are independent with respect to
Fairfax within the meaning

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of
the Rules of Professional Conduct of the Institute of Chartered Accountants of Ontario and the rules of the US Securities and Exchange Commission and the requirements of the Public Company
Accounting Oversight Board Rule 3520,Auditor Independence.

AUDIT COMMITTEE

A copy of our Audit Committee Charter is attached as Schedule A. The members of our Audit Committee are Alan D. Horn (Chair),
Anthony F. Griffiths, Robert J. Gunn and Timothy R. Price. All of the members of our Audit Committee are independent and financially literate pursuant to the meanings of such terms in Multilateral
Instrument 52-110  Audit Committees. Additional information concerning our Audit Committee, including the education and experience of each Audit Committee
member and the procedures that we have adopted for the engagement of non-audit
services, can be found in our Management Proxy Circular dated March 7, 2014 under the heading "Audit Committee".

Accountant
fees payable for the years ended December 31, 2013 and December 31, 2012 to our external auditor, PricewaterhouseCoopers LLP, and its affiliates by us and
our subsidiaries were CDN$22.9 million and CDN$19.8 million, respectively. The fees payable to PricewaterhouseCoopers LLP in 2013 and 2012 are detailed below.

Year ended
December 31, 2013

Year ended
December 31, 2012(CDN $ millions)

(CDN $ millions)Audit fees

$
17.7

$
16.5Audit-related fees


0.9


0.6Tax fees


1.1


1.8All other fees


3.2


0.9Total

$
22.9

$
19.8


The
nature of each category of fees is described below.

Audit Fees

Audit fees were paid for professional services rendered for the audits of our consolidated financial statements and the effectiveness
of internal control over financial reporting of Fairfax and statutory and subsidiary audits, issuance of comfort letters, consents, assistance with review of documents filed with regulatory
authorities and actuarial attestation of policy liabilities.

Audit-Related Fees

Audit-related fees were paid for assurance and related services related to employee pension and benefit plan audits, accounting
consultations, and assurance services that are not required by statute or regulation and special actuarial reviews.

Tax Fees

Tax fees were paid for services related to tax compliance, tax advice and tax planning professional services. These services consisted
primarily of tax compliance including the review of original and amended tax returns, assistance with questions regarding tax audits and tax planning and advisory services relating to common forms of
domestic and international taxation (e.g., income tax, capital tax and Value Added Tax).

All Other Fees

Fees disclosed in the table above under the item "all other fees" were paid for products and services other than the audit fees,
audit-related fees and tax fees described above. These services consisted primarily of consulting fees related to internal reorganizations, French translation of our regulatory filings, including our
annual consolidated financial statements and management's discussion and analysis, interim consolidated

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financial
statements and quarterly reports to shareholders and financial information included in the Annual Information Form, prospectuses and other offering documents.

ADDITIONAL INFORMATION

Additional information about our company may be found on SEDAR at www.sedar.com.

Additional
information, including directors' and officers' remuneration and indebtedness, principal holders of our securities and options to purchase securities is contained in our
Management Proxy Circular dated March 7, 2014. Additional financial information is provided in our audited consolidated financial statements and management's discussion and analysis of
financial conditions and results of operations for the year ended December 31, 2013 and in pages 2-3 and 4-21 of our 2013 Annual Report.

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Schedule A    FAIRFAX FINANCIAL HOLDINGS LIMITED    AUDIT COMMITTEE CHARTER    Approved by the Board of Directors on February 17, 2005

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FAIRFAX FINANCIAL HOLDINGS LIMITED    AUDIT COMMITTEE CHARTER

1.     Statement of Purpose

The Audit Committee of Fairfax Financial Holdings Limited has been established by the Board for the purposes of overseeing the accounting and financial reporting
processes of Fairfax, including the audit of the financial statements of Fairfax.

The
Committee is responsible for assisting with the Board's oversight of (1) the quality and integrity of Fairfax's financial statements and related disclosure,
(2) Fairfax's compliance with legal and regulatory requirements, (3) the independent auditor's qualifications, performance and independence and (4) the integrity of the internal
controls at Fairfax (including at its publicly traded subsidiaries).

2.     Committee Membership

Members

The Committee will consist of as many members of the Board as the Board may determine but in any event, not less than three members.
Members of the Committee will be appointed by the Board, taking into account any recommendation that may be made by the Governance and Nominating Committee. Any member of the Committee may be removed
and replaced at any time by the Board, and will automatically cease to be a member if he or she ceases to meet the qualifications set out below. The Board will fill vacancies on the Committee by
appointment from among qualified members of the Board, taking into account any recommendation that may be made by the Governance and Nominating Committee. If a vacancy exists, the remaining members of
the Committee may exercise all of its powers so long as there is a quorum and subject to any legal requirements regarding the minimum number of members of the Committee.

Chair

The Board will designate one of the members of the Committee to be the Chair of the Committee, taking into account any recommendation
that may be made by the Governance and Nominating Committee.

Qualifications

All of the members of the Committee must be independent and financially literate, as determined in accordance with the rules of
applicable stock exchanges and securities regulatory authorities, with at least one of the members having financial expertise, as determined in accordance with those rules. Members must also have
suitable experience and must be familiar with the financial reporting practices of public companies.

Ex Officio Members and Management Attendance

The Committee may invite, at its discretion, members of management to attend a meeting of the Committee. Any member of management will
attend a Committee meeting if invited by the Committee. The Lead Director, if not already a member of the Committee, will be entitled to attend each meeting of the Committee as an observer.

3.     Committee Operations

Frequency of Meetings

The Chair, in consultation with the other members of the Committee, will determine the schedule and frequency of meetings of the
Committee, provided that the Committee will meet at least once per quarter.

Agenda and Reporting to the Board

The Chair will establish the agenda for meetings in consultation with the other members of the Committee, the Chairman of the Board and
the Lead Director. To the maximum extent possible, the agenda and meeting materials will be circulated to the members in advance to ensure sufficient time for study prior to the meeting. The Committee
will report to the Board at the next meeting of the Board following each Committee meeting.

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Secretary

The Corporate Secretary of Fairfax will, subject to any contrary direction of the Committee, act as secretary of the Committee.

Minutes

The secretary of the Committee will keep regular minutes of Committee proceedings and will circulate them to all Committee members, the
Chairman of the Board and the Lead Director (and to any other director that requests that they be sent to him or her) on a timely basis.

Quorum

A quorum at any meeting will be a simple majority.

Procedure

The procedure at meetings will be determined by the Committee.

Transaction of Business

The powers of the Committee may be exercised at a meeting where a quorum is present or by resolution in writing signed by all members
of the Committee.

Absence of Chair

In the absence of the Chair, the Committee may appoint one of its other members to act as Chair of that meeting.

Exercise of Power Between Meetings

Between meetings, and subject to any applicable law, the Chair of the Committee, or any member of the Committee designated for this
purpose, may, if required in the circumstance, exercise any power delegated by the Committee. The Chair or other designated member will promptly report to the other Committee members in any case in
which this interim power is exercised.

4.     Committee Duties and Responsibilities

The Committee is responsible for performing the duties set out below and any other duties that may be assigned to it by the Board and performing any other
functions that may be necessary or appropriate for the performance of its duties.



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5.     Access to Advisors

The Committee may, in its sole discretion, retain counsel, auditors or other advisors in connection with the execution of its duties and responsibilities and may
determine the fees of any advisors so retained. Fairfax will provide the Committee with appropriate funding for payment of compensation to such counsel, auditors or other advisors and for ordinary
administrative expenses of the Committee that are necessary or appropriate in carrying out its duties.

6.     The Committee Chair

In addition to the responsibilities of the Chair described above, the Chair has the primary responsibility for monitoring developments with respect to financial
reporting in general, and reporting to the Committee on any significant developments.

7.     Committee Evaluation

The performance of the Committee will be evaluated by the Governance and Nominating Committee as part of its annual evaluation of the Board committees.

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