Mr. John Varnell reports

FAIRFAX TO SELL PORTION OF ICICI LOMBARD

Fairfax Financial Holdings Ltd.'s wholly owned subsidiary, FAL Corp., has agreed to sell 12.18 per cent of the fully diluted shares of ICICI Lombard General Insurance Company Ltd. to Red Bloom Investment Ltd. (9.00 per cent), a company wholly owned by private equity funds managed by Warburg Pincus LLC; Tamarind Capital Pte. Ltd. (1.59 per cent), a company wholly owned by the Clermont Group; and IIFL Special Opportunities Fund (1.59 per cent). The proposed transaction values ICICI Lombard at 20,300 crore rupees (approximately $3.1-billion (U.S.)), is subject to governmental and regulatory approvals, and is expected to close in the third quarter of 2017.

ICICI Lombard is a leading general insurance company in India with gross written premiums of approximately $1.2-billion for fiscal year 2016. Upon completion of the transaction, the share ownership in ICICI Lombard of ICICI Bank Ltd. and Fairfax will be approximately 63 per cent and 22 per cent, respectively.

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