Annual Meeting

April 26, 2012

Note: All financial disclosure in this presentation is, unless otherwise noted, in US$

Forward-Looking Statements
Certain statements contained herein may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forwardlooking 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 income if our loss reserves are insufficient; underwriting losses on the risks our subsidiaries insure that are higher or lower than expected; the occurrence of catastrophic events with a frequency or severity exceeding our estimates; the cycles of the insurance market, which can substantially influence our and our competitors premium rates and capacity to write new business; changes in economic conditions, including interest rates and the securities markets, which could negatively affect our investment portfolio; insufficient reserves for asbestos, environmental and other latent claims; the inability of our subsidiaries to maintain favourable financial or claims-paying ability ratings; an inability to realize our investment objectives; exposure to credit risk in the event our subsidiaries reinsurers or insureds fail to make payments; a decrease in the level of demand for our subsidiaries products, or increased competition; an inability to obtain reinsurance coverage at reasonable prices or on terms that adequately protect our subsidiaries; an inability to obtain required levels of capital; an inability to access cash of our subsidiaries; risks associated with requests for information from government authorities; risks associated with current government investigations of, and class action litigation related to, insurance industry practice; the passage of new legislation; and the failure to realize future income tax assets. Additional risks and uncertainties are described on pages 195 205 in our 2011 Annual Report which is available at www.fairfax.ca. For a fuller detailing of issues and risks relating to the company, please see Risk Factors in Fairfaxs most recent Supplemental and Base Shelf Prospectus filed with the securities regulatory authorities in Canada and the United States, which is available on SEDAR and EDGAR. Fairfax disclaims any intention or obligation to update or revise any forward-looking statements.

Fairfax Twenty Six Years

1985
($ millions) Net Premiums Written Net Earnings Investment Portfolio Total Assets Common Shareholders' Equity 12 (1) 24 30 8 5,608 48 24,323 33,407 7,428

2011

Per Share
Book Value Share Price (C$) Investments Net Premiums Written $ $ $ $ 1.52 3.25 4.80 2.44 $ $ $ $ 365 437 1,194 275

Growth
240x 134x 249x 113x

Guiding Principles
Objectives
We expect to compound our book value per share over the long term by 15% annually by running Fairfax and its subsidiaries for the long term benefit of customers, employees and shareholders at the expense of short term profits if necessary Our focus is long term growth in book value per share and not quarterly earnings. We plan to grow through internal means as well as through friendly acquisitions We always want to be soundly financed

We provide complete disclosure annually to our shareholders

Guiding Principles
Structure
Our companies are decentralized and run by the presidents except for performance evaluation, succession planning, acquisitions and financing, which are done by or with Fairfax. Cooperation among companies is encouraged to the benefit of Fairfax in total
Complete and open communication between Fairfax and its subsidiaries is an essential requirement at Fairfax Share ownership and large incentives are encouraged across the Group Fairfax head office will always be a very small holding company and not an operating company

Guiding Principles
Values
Honesty and integrity are essential in all of our relationships and will never be compromised We are results-oriented not political We are team players no "egos. A confrontational style is not appropriate. We value loyalty to Fairfax and our colleagues. We are hard working but not at the expense of our families We always look at opportunities but emphasize downside protection and look for ways to minimize loss of capital We are entrepreneurial. We encourage calculated risk-taking. It is all right to fail but we should learn from our mistakes We will never bet the company on any project or acquisition We believe in having fun at work!

Financial Results
2006 Book Value per Share Growth in Book Value per Share (1) Common Shareholders' Equity ($ billions) $ 150 $ 2010 376 2% $ 2011 365 (3%)

2.7

7.7

7.4

Investments per Share

$ 1,139

1,194

(1) Excludes dividends of $10 in 2010 and 2011

Historic Performance vs Peer Group

Compound Growth in Book Value per Share (5 Years ending 2011) (1)
19.4%
16.9%

11.6%

11.1%

11.1%

11.0% 8.9% 7.5%

7.3%

7.0% 5.8% 0.7%

(2.4%)

(11.0%)

(1) Except for S&P 500 (compound index return excluding dividends)

Historic Performance vs Peer Group

Compound Growth in Book Value per Share (26 Years: since Fairfaxs inception) (1)
23.5%

17.3%

17.1% 15.3% 13.9% 13.5% 10.4% 9.2% 7.1%

(1) Except for S&P 500 (compound index return excluding dividends)

Source of Earnings in 2011

($ millions)

Ongoing operations Underwriting profit (loss) Interest and dividend income Operating income Net gains on investments Runoff Interest expense Loss on repurchase of long term debt Corporate overhead, taxes and other Net income

(754) 518 (236) 205 361 (214) (104) 36 48

Major Catastrophe Losses in 2011

($ millions)

Japan Tohoku earthquake and tsunami Thailand floods U.S. tornadoes New Zealand earthquake Hurricane Irene Australian floods Other Total

470 202 70 63 31 27 158 1,021

OdysseyRe Track Record - Property

Underwriting Year Gross Premiums Written ($ millions)
136 353 491 580 629 716 584 616 637 662 755 798

Combined Ratio

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

78.9% 103.4% 75.3% 70.0% 101.5% 151.4% 63.1% 81.7% 90.5% 87.2% 127.5% 97.5%

Total

6,957

96.7%

Investment Returns in 2011

Realized Gains (losses) ($ millions)

Common Stock Hedges Common Stock after Hedges Bonds CPI-linked derivatives Other 703 703 425 (40) 1,088

Unrealized Gains (losses) ($ millions)

(1,496) 414 (1,082) 854 (234) 65 (397)

Net Gains (losses) ($ millions)

(793) 414 (379) 1,279 (234) 25 691

International Coal
Share Price $16 $14 $12 $10 Cost per Share $4.58 Sale Price per Share $7.26 Cost per Share $1.81 (average $3.62) Sale Price per Share $14.60 (Average $10.93)

$8
$6 $4 $2

$0
2006

Cost per Share $4.39 (average $4.40) 2007

Cost per Share $2.87 (average $3.37)

2008

2009

2010

June 2011

Accident Year Combined Ratios

2002-2011
Cummulative Net Premiums Written ($ billions) Northbridge Crum & Forster OdysseyRe Fairfax Asia Cdn 11.0 9.0 20.6 0.9 40.1 Average Combined Ratio

96.4% 100.3% 93.6% 87.4% 95.6%

Accident Year Reserve Redundancies

Average Annual Reserve Redundancies 2002-2010
Northbridge Crum & Forster OdysseyRe Fairfax Asia 7.6% 8.0% 9.3% 6.2%

Strong Operating Companies Capital - 2011

Net Premiums Written/ Statutory Surplus 1.0x 0.9x 0.8x 0.6x 0.5x

Net Premiums Written ($ millions) Northbridge Crum & Forster Zenith National OdysseyRe Fairfax Asia
(1) IFRS total equity

Statutory Surplus ($ millions) 1,138 1,245 620 3,454 458

1,099 1,077 524 2,090 214

(1) (1)

Well Positioned for a Turn in the Cycle

3,000
Northbridge (C$) Crum & Forster

2,500
Gross Premiums Written

OdysseyRe

2,000

1,500

1,000

500

Soft Market
0 1999 2000 2001 2002

Hard Market
2003 2004 2005

Growth in Net Premiums Written in 2011

Net Premiums Written % Change in
Northbridge Crum & Forster Zenith National OdysseyRe Fairfax Asia Other insurance and reinsurance Consolidated 11.5% 46.8% 27.4% 12.7% 35.8% (8.7%) 23.4%
(1)

(1) Second half of 2011 versus second half of 2010, as Zenith National was acquired in May 2010

International Operations - 2011

Fairfax Share Shareholders' Equity 620 609 200 1,429 Gross Premiums Investment Written Portfolio 1,656 1,930 1,481 431 3,568 1,516 714 4,160 Shareholders' Equity 419 185 200 804 Gross Premiums Written 772 439 431 1,642

Fairfax Asia Insurance - Other Reinsurance - Other Total International Operations

Fairfax Asia Falcon Insurance (Hong Kong) Pacific Insurance (Malaysia) First Capital (Singapore) Falcon Thailand (1) ICICI Lombard (India) (1)

Insurance - Other Fairfax Brasil Alliance Insurance (Dubai) Gulf Insurance (Kuwait) (1) Alltrust Insurance (China)

Reinsurance - Other Advent Capital (United Kingdom) Polish Re

(1) These associated companies are carried on an equity accounted basis

Importance of Float
Year-End Float (Operating Companies) 1985 2011
Average cost of float: 2.8% 14.4 billion $ 707 / share (+10% over the 2010 float of $641 per share)

12.5 million 11.6 billion

Total float at year-end 2011 (including runoff)

Importance of Float
Year-End 2011 ($ millions) Total Float Common Shareholders' Equity Net Liabilities Total Investment Portfolio 14,399 7,428 2,495 24,322 Per Share $ $ $ 707 365 122

$ 1,194

Investment Portfolio in 1985

24

Pre-Tax Interest and Dividend Income

Interest Dividend Income ($ millions) 1985 2011 2011 - Adjusted for "Munis" 3 705 814 $ $ 70 35 40

Per Share

Pre-Tax Realized & Unrealized Gains

Gains ($ millions) 1985 2008 2009 2010 2011 Cumulative Gains 0.5 2,292 1,981 (3) 691 11 billion $ $ $ $ Per Share 10 126 108 34

Pre-Tax Income Runoff Operations

($ millions)

2007 2008 2009 2010 2011 Cumulative (2007-2011)

188 393 31 165 352 1,129

Dividend Capacity Operating Companies

At December 31, 2011 ($ millions) Northbridge Crum & Forster Zenith National OdysseyRe Total 166 122 62 303 653

Acquisitions in 2011
William Ashley 100% ownership
Since 1947, William Ashley has been recognized in North America as the leader within the dinnerware and wedding registry industries

Sporting Life 75% ownership

Since 1979, Sporting Life has been selling high-end sports merchandise and leading edge fashion apparel focused on the principle of a healthy, sporting lifestyle and unparalleled customer satisfaction

Investment Performance
Hamblin Watsa Investment Performance
As at December 31, 2011 5 Years 10 Years 15 Years Common stocks (with equity hedging) S&P 500 8.7% (0.2%) 15.8% 2.9% 14.2% 5.5%

Taxable bonds Merrill Lynch U.S.corporate (1-10 year) bond index

13.3% 6.0%

12.5% 5.8%

10.4% 6.3%

Notes:

Bonds do not include returns from credit default swaps.

Long Term Common Stock Holdings

At December 31, 2011

Shares Owned (millions) Wells Fargo Johnson & Johnson U.S. Bancorp 20.0 7.4 15.9 $ $ $

Cost per Share 19.36 61.37 16.27

Market Price per Share $ $ $ 27.56 65.58 27.05

Market Value 552 485 428

Fairfax Investment Portfolio Positioned Defensively

At December 31, 2011
Cash and Short Term Government Bonds Municipal Bonds Corporate Bonds Total Fixed Income Yield Common Stocks
(2)

27% 17% 25% 6% 48% 7.2% 21% 4% 100% ($ billions) 24.3

(1)

Other Investments Total Total Investment Portfolio

(1) Pre-tax equivalent yield (2) Common stock hedged approximately 100%

Fairfax Focused on the Long Term

Earnings and book value volatile on a quarterly basis
2011 Earnings (Loss) per Share At December 31, 2010 First quarter Second quarter Third quarter Fourth quarter $ $ $ $ n/a (12.42) 3.40 46.73 (38.47) Book Value per Share $ $ $ $ $ 376 355 359 403 365

Financial Strength
2010 2011
($ millions) Subsidiary Debt Holding Company Obligations Total Debt Holding Company Cash and Marketable Securities Net Debt 919 1,810 2,729 1,474 1,255 624 2,395 3,019 963 2,056

Total Equity & Non-controlling Interest Net Debt/Net Total Capital Total Debt/Total Capital

8,674 12.6% 23.9%

8,409 19.6% 26.4%

U.S. Debt as % of GDP 1870-2011

Annual
380% 360% 340% 320% 300% 280% 260% 240% 220% 200% 180% 1875 = 160% 140% 120% 100% 80% 60% 40% 20% 0% 1870

2009 = 382.8 1933 = 299.8 2003 = 301.4 2000 1998 1928 1916 = 170.4 156.4

Total Private

Federal

380% 360% 340% 320% 300% 280% 260% 240% 220% 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0%

1886

1902

1918

1934

1950

1966

1982

1998

2011

Source: Hoisington Investment Management

US Economy is Still at Risk

(2007=100, Seasonally adjusted) (%, Seasonally adjusted, inverted)

103 101 99 97 95 93 91 Last seen in 1983 89 87 85 Last seen in 1997 83 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

Source: Richard Koo, Nomura Research Institute

3.5 Unemployment Rate (right scale) 4.0 4.5 5.0 Industrial Production (left scale) 5.5 Last seen in 2005 6.0 6.5 7.0

7.5
8.0 8.5 9.0 9.5 10.0 10.5 11.0

Euro-Zone Economy is Still at Risk

(Seasonally adjusted, 2005=100) (%, Seasonally adjusted, inverted)

115

7.0

110

Unemployment Rate (right scale)

7.5

8.0 105 8.5

100

Last seen in 2005

9.0

9.5 95 10.0

90

Industrial Production (left scale)

10.5 Last seen in 1997 11.0

85 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Richard Koo, Nomura Research Institute

Japans GDP Flat in spite of Massive Loss of Wealth and Private Sector De-leveraging
(Sep. 1990=100) (Sep.1990=100, Seasonally Adjusted)

140 Nominal GDP (Right Scale) 120 Real GDP (Right Scale)

130

115 Cumulative 90 - 05 GDP Supported by

Government

100 Likely GDP Path w/o Government Action 80

100
85

Action: ~ 2000 trillion ~ USD 24.6 trillion

60

70

40 Last seen in 1973 20 Land Price Index in Six Major Cities (Commercial, Left Scale) 0
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

55 down 40
87%

25

Cumulative Loss of Wealth on Shares and Real Estate ~ 1500 trillion ~ USD 18.5 trillion

Source: Richard Koo, Nomura Research Institute

Long Term Bullish on Equities

Annual Compound Return - December 31, 2011 1 Year 5 Years 10 Years 15 Years 20 Years Long US Treasury Bonds (1) S&P 500
(2)

35.6% 2.1%

11.2% (0.3% )

8.8% 2.9%

8.3% 5.5%

8.0% 7.8%

(1) Barclays Capital 30 year Bellwether (2) S&P 500 compound index return including dividends

CPI-Linked Derivative Contracts December 31, 2011

Notional Amount ($ billions)
18 27 1 1 47

Underlying CPI Index

U.S. European Union U.K. France

Weighted Average Strike Price (CPI)

217 110 216 120

Dec 31, 2011 CPI

226 114 239 124

($ millions)
Total cost Total market value 421 208

Historic Total Return on Investment Portfolio

20.0%

10.0%

0.0%

1986

1991

1996

2001

2006

2011

-10.0%

Total Return on Portfolio

- - - Average Total Return on Portfolio 9.6%

Superior Long Term Investment Track Record

Return on Average Investments 2002-2011

Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Average Fairfax
Source: SNL Financial LC; Returns calculated by Fairfax

5.3% 5.3% 5.1% 4.9% 4.7% 4.4% 4.4% 4.2% 4.0% 3.9% 3.7% 4.5% 9.7%

Ready for the Next Decade Building on Fairfaxs Strengths

Our guiding principles have remained intact Excellent long term performance Demonstrated strengths Strong operating subsidiaries focused on underwriting profitability and prudent reserving Conservative investment management providing excellent long term returns Well positioned for the future Fair and friendly Fairfax culture