Mr. John Varnell reports

FAIRFAX ANNOUNCES PRICING OF SENIOR NOTES OFFERING

Fairfax Financial Holdings Ltd. has priced its previously announced private offering of $600-million (U.S.) of Fairfax's senior notes due 2028, at an issue price of 99.765 per cent. The notes will be unsecured obligations of Fairfax and will pay a fixed rate of interest of 4.850 per cent per annum. In anticipation of the offering of the notes, Fairfax initiated a hedge of the treasury benchmark related to the notes. After giving effect to the benefit of this hedge, the effective interest rate on the notes is 4.58 per cent per annum. Fairfax also intends to enter into a registration rights agreement in connection with the offering.

Fairfax intends to use the net proceeds from this 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 increase short-term investments and marketable securities held at the holding company level, and/or for other general corporate purposes. The offering is expected to close on or about April 17, 2018, subject to the satisfaction of customary conditions.

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

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