Mr. Paul Rivett reports

FAIRFAX AND ALLIED WORLD ANNOUNCE FINAL EXCHANGE RATIO FOR EXCHANGE OFFER

Pursuant to the terms of the agreement and plan of merger, dated as of Dec. 18, 2016, between Fairfax Financial Holdings Ltd. and Allied World Assurance Company Holdings AG, and as described in the prospectus forming part of the registration statement on Form F-4 filed by Fairfax with the Securities and Exchange Commission, as amended, based on today's closing price of Fairfax subordinate voting shares and assuming the completion of the offer as currently scheduled, the final calculation of the consideration being offered for each Allied World registered ordinary share tendered and not properly withdrawn in Fairfax's offer is (i) $23 cash and (ii) 0.057937 of a Fairfax subordinate voting share. (Unless otherwise provided herein, all dollar amounts in this announcement are expressed in U.S. dollars.)

In addition, Allied World will pay a special cash dividend of $5 per share, without interest, simultaneously with the payment of the offer consideration.

The offer and withdrawal rights will expire at 11:59 p.m. New York time on June 30, 2017, unless the offer is extended.

Allied World shareholders who have not yet accepted the offer are urged to do so as soon as possible and in any event by 11:59 p.m. New York time on June 30, 2017, which is when the offer and withdrawal rights will expire, unless the offer is extended. Financial intermediaries holding Allied World shares on your behalf may have set earlier deadlines for shareholders to notify them of their intention to accept the offer, and so, if you intend to accept the offer, you should contact your financial intermediary (if relevant) to ensure you are aware of any such deadline. Full details of how to accept the offer are set out in the registration statement on Form F-4, which includes a prospectus, and the tender offer statement on Schedule TO (including the related letter of transmittal and other offer documents) filed by Fairfax with the Securities and Exchange Commission and available on the SEC's website and on Fairfax's website.

If you require further information on how to tender your Allied World shares, please contact Georgeson LLC, the information agent for the offer, toll-free at 1-800-248-7690.

About Fairfax Financial Holdings Ltd.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

We seek Safe Harbor.