TORONTO, ONTARIO--(Marketwired - Dec. 16, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Fairfax Financial Holdings Limited ("Fairfax") (TSX:FFH)(TSX:FFH.U) has completed its previously announced offering of C$450
million in aggregate principal amount of 4.70% Senior Notes due 2026 (the "Offering").
The Senior Notes were offered through a syndicate of dealers co-led by RBC Dominion Securities Inc. and BMO Nesbitt Burns Inc.
The Senior Notes are unsecured obligations of Fairfax and pay a fixed rate of interest of 4.70% per annum.
Fairfax intends to use the net proceeds of the Offering to refinance or repay outstanding debt or other corporate obligations
of Fairfax and its subsidiaries and for general corporate purposes. This may include the redemption or repurchase of certain of
Fairfax's previously issued senior unsecured notes. As of the date of this press release, Fairfax has not made any determination
as to the specific debt or other obligations to be repaid, nor the amount, timing or method of repayment. Any repurchase of
senior notes will be subject to market conditions, and there can be no assurance that senior notes will be available for
repurchase on terms acceptable to Fairfax. Any proceeds not used to refinance or repay debt or other corporate obligations will
be used to augment Fairfax's cash position, to pursue potential acquisition opportunities, to increase short-term investments and
marketable securities held at the holding company level and/or for other general corporate purposes.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of
the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction. This press release is not an offer of securities for sale in
the United States, and the securities may not be offered or sold in the United States absent registration or an exemption from
the registration requirements. The securities have not been and will not be registered under the United States Securities Act of
1933, as amended.
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance
and investment management.
Certain statements contained herein may constitute forward-looking statements and are made pursuant to the "safe harbor"
provisions of applicable Canadian securities laws. Such forward-looking statements are subject to known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of Fairfax to be materially
different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: a reduction in net earnings if our loss reserves are insufficient; underwriting losses
on the risks we insure that are higher or lower than expected; the occurrence of catastrophic events with a frequency or severity
exceeding our estimates; changes in market variables, including interest rates, foreign exchange rates, equity prices and credit
spreads, which could negatively affect our investment portfolio; the cycles of the insurance market and general economic
conditions, which can substantially influence our and our competitors' premium rates and capacity to write new business;
insufficient reserves for asbestos, environmental and other latent claims; exposure to credit risk in the event our reinsurers
fail to make payments to us under our reinsurance arrangements; exposure to credit risk in the event our insureds, insurance
producers or reinsurance intermediaries fail to remit premiums that are owed to us or failure by our insureds to reimburse us for
deductibles that are paid by us on their behalf;
the inability of our subsidiaries to maintain financial or claims paying ability ratings; risks associated with implementing our
business strategies; the timing of claims payments being sooner or the receipt of reinsurance recoverables being later than
anticipated by us; risks associated with our use of derivative instruments; the failure of our hedging methods to achieve their
desired risk management objective; a decrease in the level of demand for insurance or reinsurance products, or increased
competition in the insurance industry; the impact of emerging claim and coverage issues or the failure of any of the loss
limitation methods we employ; our inability to access cash of our subsidiaries; our inability to obtain required levels of
capital on favourable terms, if at all; the loss of key employees; our inability to obtain reinsurance coverage in sufficient
amounts, at reasonable prices or on terms that adequately protect us; the passage of legislation subjecting our businesses to
additional supervision or regulation, including additional tax regulation, in the United States, Canada or other jurisdictions in
which we operate; risks associated with government investigations of, and litigation and negative publicity related to, insurance
industry practice or any other conduct; risks associated with political and other developments in foreign jurisdictions in which
we operate; risks associated with legal or regulatory proceedings or significant litigation; failures or security breaches of our
computer and data processing systems; the influence exercisable by our significant shareholder; adverse fluctuations in foreign
currency exchange rates; our dependence on independent brokers over whom we exercise little control; an impairment in the
carrying value of our goodwill and indefinite-lived intangible assets; our failure to realize deferred income tax assets;
technological or other change which adversely impacts demand, or the premiums payable, for the insurance coverages we offer; and
assessments and shared market mechanisms which may adversely affect our U.S. insurance subsidiaries. Additional risks and
uncertainties are described in our most recently issued Annual Report which is available at www.fairfax.ca and in our Base Shelf Prospectus (under "Risk Factors") filed with the securities
regulatory authorities in Canada, which is available on SEDAR at www.sedar.com. Fairfax disclaims any intention or obligation to update or revise any forward-looking
statements.