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

Annual MeetingApril 20, 2017

Forward-Looking StatementsCertain statements contained herein may constitute forward-looking information (within the meaning of Canadian securities legislation) and forward-looking statements(within the meaning of the United States Private Securities Litigation Reform Act of 1995). These statements can be identified by expressions of belief, expectation orintention, as well as those statements that are not historical fact. Forward-looking statements are based upon assumptions, estimates, opinions and analysis made bymanagement in light of its experience, current conditions and its expectations of future developments that management believe to be reasonable and relevant, and aresubject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fairfax to be materiallydifferent from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: areduction 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 ofcatastrophic events with a frequency or severity exceeding our estimates; changes in market variables, including interest rates, foreign exchange rates, equity prices andcredit spreads, which could negatively affect our investment portfolio; the cycles of the insurance market and general economic conditions, which can substantiallyinfluence our and our competitors' premium rates and capacity to write new business; insufficient reserves for asbestos, environmental and other latent claims; exposureto 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, insuranceproducers 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 theirbehalf; the timing of claims payments being sooner or the receipt of reinsurance recoverables being later than anticipated by us; the inability of our subsidiaries tomaintain financial or claims paying ability ratings; risks associated with implementing our business strategies; risks associated with our use of derivative instruments; thefailure of our hedging methods to achieve their desired risk management objective; a decrease in the level of demand for insurance or reinsurance products, or increasedcompetition in the insurance industry; the impact of emerging claim and coverage issues; the failure of any of the loss limitation methods we employ; our inability toaccess cash of our subsidiaries; our inability to obtain required levels of capital on favourable terms, if at all; the loss of key employees; technological or other changewhich adversely impacts demand, or the premiums payable, for the insurance coverages we offer; our inability to obtain reinsurance coverage in sufficient amounts, atreasonable prices or on terms that adequately protect us; the passage of legislation subjecting our businesses to additional supervision or regulation, including additionaltax regulation, in the United States, Canada or other jurisdictions in which we operate; risks associated with government investigations of, and litigation and negativepublicity 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; failures or security breaches of our computer and data processing systems; the influence exercisable by oursignificant shareholder; adverse fluctuations in foreign currency exchange rates; our dependence on independent brokers over whom we exercise little control; animpairment in the carrying value of our goodwill and indefinite-lived intangible assets; our failure to realize deferred income tax assets; and assessments and sharedmarket mechanisms which may adversely affect our U.S. insurance subsidiaries. We caution readers not to place undue reliance on these forward-looking statements,which speak only as of their dates. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information,change in assumption or opinion or otherwise, except as may be required by applicable securities laws. Additional risks and uncertainties are described in our mostrecently issued Annual Report which is available at www.fairfax.ca and in our Supplemental and Base Shelf Prospectus (under “Risk Factors”) filed with the securitiesregulatory authorities in Canada, which is available on SEDAR at www.sedar.com. 2

Guiding Principles

Objectives We expect to compound our mark-to-market book value per share over

the long term by 15% annually by running Fairfax and its subsidiaries forthe long term benefit of customers, employees, shareholders and thecommunities where we operate – at the expense of short term profits ifnecessary

Our focus is long term growth in book value per share and not quarterlyearnings. We plan to grow through internal means as well as throughfriendly acquisitions

We always want to be soundly financed We provide complete disclosure annually to our shareholders

3

Guiding Principles

Structure Our companies are decentralized and run by the presidents except for

performance evaluation, succession planning, acquisitions, financing andinvestments, which are done by or with Fairfax. Investing will always beconducted based on a long term value-oriented philosophy. Cooperationamong companies is encouraged to the benefit of Fairfax in total

Complete and open communication between Fairfax and its subsidiaries isan essential requirement at Fairfax

Share ownership and large incentives are encouraged across the Group Fairfax will always be a very small holding company and not an operating

company

4

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! 5

Success of Our Formula

Our combination of disciplined underwriting and long-term valueinvesting has produced superior returns over a long period

6

DisciplinedUnderwriting

ValueInvesting

SuperiorLong-Term

Returns

15% long-term book value pershare CAGR target – achieved

19% since inception

367

484

25$0

$100

$200

$300

$400

$500

$600

1985 1989 1993 1997 2001 2005 2009 2013

Book ValueFairfax share price (USD)S&P 500 index

2016

Fairfax Value Creation – 31 Years

7

31 Year Compound Annual Growth RateFairfax book value per share – 19.4%

Fairfax share price (USD) – 18.8%S&P 500 Index – 7.9%

Historic Performance vs. Peer Group

8

Compound Growth in Book Value per Share (5 Years Ended December 31, 2016) (1)

(1) Except for S&P 500 and TSX which are compound index returns excluding dividends

12.8%12.2%

11.5% 11.5%

7.9% 7.7% 7.7% 7.5% 7.4% 7.0%6.4% 5.9%

5.0%

2.6%

0.7%0.2%

Historic Performance vs. Peer Group

9

Compound Growth in Book Value per Share (31 Years: since Fairfax’s inception) (1)

(1) Except for S&P 500 and TSX which are compound index returns excluding dividends

19.4%

16.2% 15.7%13.9%

12.6% 12.0%

8.7% 7.9%

5.5%

Sources of Net Earnings in 2016

10(1) Includes: non-insurance operations, runoff operating income, interest expense and corporate overhead & other

($ millions)

Underwriting profit – (combined ratio of 92.5%) $576Investment income – insurance and reinsurance 463Operating income 1,039Other (1) (390)Realized investment gains 563Pre-tax income including realized investment gains 1,213Unrealized investment losses (574)Hedging losses (1,193)Pre-tax loss (554)Net loss ($395)

Underwriting Results in 2016

11

Combined Underwritingratio profit

($ millions)

Northbridge 94.9% 46Crum & Forster 98.2% 33Zenith 79.7% 164Brit 97.9% 29OdysseyRe 88.7% 235Fairfax Asia 86.4% 41Other Insurance and Reinsurance 93.7% 28Consolidated 92.5% 576

Pre-tax income 2.2Net earnings $2.0

Net gains (losses) on investments, consisting of:Hedging losses (4.4)Realized and unrealized gains on stocks 2.7Net loss on stocks (1.7)Net realized and unrealized gains on bonds 2.2Net loss on CPI-linked derivatives and others (0.5) 0.0

Results Since Fully Hedged in 2010

12(1) Includes: non-insurance operations, runoff operating income, interest expense and corporate overhead & other

($ billions) 2010-2016Underwriting profit $1.4Interest and dividends – insurance and reinsurance 3.0Operating income 4.4Other(1) (2.2)Pre-tax income before net gains (losses) on investments 2.2

Strategic growthin attractivemarkets

Group Re Polish Re Advent Fairfax Brasil Colonnade, CEE Bryte, South Africa Gulf Ins., Kuwait (41%) Eurolife, Greece (40%) AIG, CEE and LATAM

$10.2 Billion in Gross Premiums Written (2016(1))

$1.1b $2.0b $0.7b$0.8bMajor U.S.

commercial P&Cinsurer

$1.2b StatutorySurplus

$1.3b

Insurance &Reinsurance

Other

Global insurer andreinsurer

$4.0b IFRS equity

Major CdncommercialP&C insurer

C$1.4bStatutory Equity

$2.4b

Manager of globalrunoff businessUS / European runoff

Leading workerscomp insurer inU.S.

$0.6b StatutorySurplus

Significant presencein Asia

Falcon, Hong Kong First Capital, Singapore

(98%) Pacific, Malaysia (85%) AMAG, Indonesia (80%) Fairfirst, Sri Lanka (78%) ICICI Lombard, India (35%) Alltrust, China (15%) Falcon Thailand (41%) BIC, Vietnam (35%)

Leading Lloyd’smarket operation

$1.1b IFRS equity73% FFH

ownership

$1.9b

(1) Presented on a pro-forma basis to include recent acquisitions of PT Asuransi MAG, Bryte Insurance and AIG’s operations inLatin America and Central and Eastern Europe (expected to close in 2017)

Note: Fairfax ownership is 100%, unless otherwise indicated. All surplus and equity related figures are as at December 31, 2016. 13

OdysseyRe Track Record

14(1) Dividends paid and share buybacks less capital contributions

(US GAAP basis) 1996-2016Gross premiums written $40 billionCombined ratio 97%Underwriting profit 876 millionInterest and dividends 4.2 billionNet gains 2.2 billionNet earnings 4.6 billionCumulative capital returned(1) 1.6 billion

Northbridge Track Record

15(1) Dividends paid and share buybacks less capital contributions

(Canadian dollars) 1985-2016Gross premiums written $31 billionCombined ratioUnderwriting profit 38 million

99.8%

Interest and dividends 1.9 billionNet gains 1.2 billionNet earnings 2.0 billionCumulative capital returned(1) 500 million

Crum & Forster Track Record

16(1) Dividends paid and share buybacks less capital contributions

Interest and dividends 1.5 billionNet gains 2.3 billionNet earnings 1.9 billion

Gross premiums written $22 billionCombined ratioUnderwriting profit (855) million

105%

1998-2016

Cumulative capital returned(1) 1.6 billion

International Operations

Fairfax Brasil

Polish Re

ColonnadeBrit

Eurolife

Gulf

Bryte

ICICI Lombard

Fairfirst

Alltrust

First CapitalPacific

AMAG

Advent

Falcon HK

Falcon Thailand

BIC

Fairfax'sGross Premiums Written ($ billions) ShareInsurance and Reinsurance Subsidiaries 3.4 2.8Non-consolidated Insurance Operations 3.8 1.2

Total International Operations 7.2 4.0

Total

17

Runoff

RiverStone is one of the premier runoff groups in the world Many successful runoff acquisitionsGeneral FidelityEagle StarBrit InsuranceAmerican Safety

Average annual return on acquisitions greater than 25% 408 employees: 270 in the United States and 138 in the United Kingdom Cumulative pre-tax profit of $766 million since 2007

18

Total FloatCost (Benefit)

of Float Total Investments($ millions) Per Share ($ millions) Per Share

1985 13 $ 2½ (11.6%) 24 $ 5

2016 16,673 722 (4.2%) 28,431 1,231

CompoundGrowth 20.1% 0.4% 19.6%

Importance of Float

19(1) Weighted average cost of float since inception

(1)

Recent Acquisitions

20

Key Insurance Acquisitions

December 2015Eurolife

June 2016Asuransi MAG

July 2016Zurich South Africa(Renamed Bryte Insurance)

$269 million

$70 million

€496 million

October 2016AIG operations - LATAMand CEE

$669 million ($491 million inLatin America, $178 million inCentral and Eastern Europe)

December 2016AWAC

$3.1 billion

Gross Written Premiums(1) Fairfax Ownership

100%

80%

40%

100%

67%

(1) Gross written premiums during 2016, except for AIG operations – LATAM and CEE which is gross written premiums during 2015

Allied World brings a world-class specialty insurance and reinsurancefranchise Average combined ratio of 90.7% since inception 15 years ago Return on equity of 12% since inception Reserve redundancy every year – cumulative $2.2 billion since inception

Enhances Fairfax’s global insurance franchise and deepens its presencein the U.S. market Strong presence in Fortune 1000 market, with limited overlap Significantly expands Fairfax’s position in the U.S. Excess & Surplus Lines

market

Adds $8.7 billion investment portfolio under Fairfax’s proven investmentexpertise

21

Allied World - Compelling Strategic Acquisition

($ billions) Combined % Change

Gross premiums written 10.2 3.1 13.3 30%

Investment portfolio 27.4 8.7 35.3 29%

Common shareholders' equity 8.5 3.6 10.9 28%

Shares outstanding (millions) 23.1 28.0 21%

22(1) Presented on a pro-forma basis to include recent acquisitions of PT Asuransi MAG, Bryte Insurance and AIG’s operations inLatin America and Central and Eastern Europe (expected to close in 2017)

(1)

Allied World -Attractive Financial Outcome for Fairfax

Argentina44%

Chile29% Colombia

23%

Uruguay3%

Venezuela1%

Accelerates plans for long-term growth in Eastern Europe and significantlyexpands Fairfax’s footprint in Latin America Profitable portfolio of business written in Eastern EuropeWell established, geographically diverse operations in Latin America

Fairfax will support and service AIG’s multinational business

23

Acquisition of AIG Operations -Latin America and Central and Eastern Europe

Poland38%

Czech21%

Hungary20%

Romania10%

Slovakia5%

Bulgaria6%

LATAM - $491 million GWP in 2015 CEE - $178 million GWP in 2015

Investments in India

24(1) The carrying values of Fairfax India and Thomas Cook India represent their respective carrying values under the equity method of accounting(2) The fair values of Fairfax India and Thomas Cook India are as at April 14, 2017

Carrying Fair 100%($ millions - at Dec 31, 2016, unless otherwise noted) Value(1) Value(2) OwnershipFairfax India 451 612 2,027Thomas Cook India 296 838 1,238ICICI Lombard 371 878 878Marketable bonds, stocks and real estate 799 811 811India Investments 1,918 3,138 4,954

2012 2013 2014 2015 2016 2017

Thomas Cook India

25

TC acquires Kuoni(HK and India)

Purchase Price: $81TC Ownership: 100%

Thomas Cook (TC)Purchase Price: $173

Share Price ₹ 52

Today

Market Value: $838(1)

Carrying Value : $296Share Price ₹ 218(1)

TC acquires Sterling ResortsPurchase Price: $140

Fairfax invests $80 into TCTC Ownership: 100%

TC acquires QuessPurchase Price: $47TC Ownership: 74%

Quess IPO – July 2016Market Cap of $600TC Ownership: 62%

(1) As at April 14, 2017

($ millions)

Fairfax India

Oleochemicalmanufacturer

49% FIH ownershipPublic

WarehousingCollateralmanagement ofagri commodities NBFC

88% FIHownershipPrivate

Over $1.2 billion investments completed - $230 million available for new investments

$149m

India’s 3rd

largest airportMonopoly assetReal estateassets

38% FIHownershipPrivate

$386m

PVC andcaustic sodaproducer

30% FIHownership7-yeardebenturesPrivate

$19m

(1)

(1) Fairfax Financial Holdings Limited holds a 30.2% equity interest and 93.6% voting interest in Fairfax India

$277m

NBFCWealthmanagementCapital markets& other

27% FIHownership9% FFHownershipPublic

Aromachemicalmanufacturer

$55m

$300m $27m

Indian stockexchange

1% FIHownershipPrivate

$30m

Containerfreightstation

51% FIHownershipPrivate

$74m

26

Fairfax Africa

Established Fairfax Africa using the successful template ofFairfax India Fairfax Africa raised $500 million through an IPO and private

placement – Fairfax Financial is the lead investor Direct access to one of the most attractive regions for

investment in the world Extensive investing experience in Africa and other emerging

markets Disciplined, valued-oriented approach in an attractive structure

for long term investment27

Investment Performance

28

Note: Bonds do not include returns from credit default swaps.

Compound Annual Returns

5 Years 10 Years 15 YearsCommon stocks 6.7% 3.0% 10.0%Common stocks (with equity hedging) (7.3%) 0.4% 7.6%

S&P 500 14.7% 6.9% 6.7%

Taxable bonds 6.0% 9.6% 10.3%Merrill Lynch U.S. Corporate (1-10year) bond index

3.8% 4.9% 5.1%

As at December 31, 2016

Investment Portfolio

29

Investment Portfolio Well Positioned

Cash/Short-Term

39%

OtherInvestments

1%CorporateBonds

8%

MunicipalBonds

17%

Gov't Bonds10%

CommonStocks

24%

$27.4 billion at December 31, 2016(1)

(1) Net of short sale and derivative obligations; investments in associates at carrying value; excludes Fairfax India portfolio investments

Not focused on short term results Capital preservation a priority Cash and short term holdings in excess of

$10 billion to selectively take advantage ofopportunities Fixed-income duration reduced through

treasury locks to one year We have not deviated from our long term

value-oriented investment philosophy

Financial Strength

30

Dec 31, 2016 Dec 31, 2015Borrowings - holding company 3,473 2,599Borrowings - insurance and reinsurance companies 436 469Borrowings - non-insurance companies 860 284

Total debt 4,768 3,352Non-controlling interests 2,000 1,732Preferred stock 1,336 1,335Common shareholders' equity 8,485 8,953

Total capitalization 16,588 15,372

Debt as a % of total capital 28.7% 21.8%Holding company cash and investments 1,329 1,276Net debt 3,438 2,076Net debt as a % of net total capital 22.5% 14.7%

Investments Not Carried at Market Value

31(1) The carrying values of Cara, Fairfax India and Thomas Cook India represent their respective carrying values under the equity method of accounting(2) Excludes investments in associates held by Fairfax India

($ millions)

Insurance and reinsurance associates 1,515 941 574Non-insurance associates(2) 1,441 1,453 (12)Thomas Cook India 691 296 395Fairfax India 356 290 65Cara 434 455 (21)

4,436 3,435 1,002

Fairvalue

At December 31, 2016

gainUnrealizedCarrying

value(1)

CPI-Linked Derivative Contracts

32

($ millions, unless otherwise noted)

Underlying CPI Index

United States 5.7 47 287 35 (252)United States - 0.5% floor 7.8 13 40 34 (5)European Union 5.0 44 300 13 (288)United Kingdom 5.9 4 23 1 (22)France 6.1 3 21 1 (20)

5.6 110 670 83 (587)

Amount

At December 31, 2016Average

Life(in years)

Notional

($ billions)Cost

MarketValue

UnrealizedGain (Loss)

RisksU.S. Private and Public Debt as % of GDP

33Source: Hoisington Investment Management

Through Q4 2016

100%

140%

180%

220%

260%

300%

340%

380%

420%

100%

140%

180%

220%

260%

300%

340%

380%

420%

1870 1890 1910 1930 1950 1970 1990 2010

Panic Year 2008

Panic Year 1929

Panic Year 1873

1870-2016 avg.=191%

Current total debt = $70 trillionDebt/GDP of 191% would require total debt of $36 trillion

1.00

1.25

1.50

1.75

2.00

2.25

1.00

1.25

1.50

1.75

2.00

2.25

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

1918 = 2.0

1946 = 1.2

1997 = 2.2

1.44

Avg. 1900 to present = 1.73

Avg. 1953 to 1983 = 1.75

RisksU.S. Velocity of Money 1900-2016

34Source: Hoisington Investment Management

Equation of Exchange: GDP (nominal) = M*V

Through Q4 2016

RisksLong Term U.S. Treasury Rate 1871-2016

35Source: Hoisington Investment Management

0%

2%

4%

6%

8%

10%

12%

14%

0%

2%

4%

6%

8%

10%

12%

14%

1871 1891 1911 1931 1951 1971 1991 2011

avg. = 4.2%

Global market Restricted market Global market

Interest rate avg. = 2.9%Inflation rate avg. = 1.0%

Interest rate avg. = 6%Inflation rate avg. = 3.9%

Fall of Berlin Wall

Onset of Iron andBamboo Curtains

annual average

RisksCyclically Adjusted P/E Ratio – S&P 500

36Source: Robert J. Shiller

0

5

10

15

20

25

30

35

40

45

50

0

5

10

15

20

25

30

35

40

45

50

1881 1894 1907 1921 1934 1947 1961 1974 1987 2001 2014

CAPE RatioAbove March 2017

June 190125

Sept. 192933

Jan. 196624

Dec. 199944

Average at end ofrecessions = 13.1Range = 5.3 to 19.3

Average = 16.7

The CAPE Ratio is currently 29xSince 1881, it has been higher only twice.Both episodes ended badly:June - Oct '29 when it peaked at 33xJan '97 - May '02 when it peaked at 44x

Mar 201729

RisksU.S. Corporate After-Tax Profits

37Source: Hoisington Investment Management

Through Q4 2016

($ billions)

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

'10 '11 '12 '13 '14 '15 '16

4

13

7

12

69

2

20

3

1411 10

19

15

22

1

85

17 18 16

21

0%

1%

2%

3%

4%

5%

6%

0%

1%

2%

3%

4%

5%

6%

1790 1800 1810 1820 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Average = 3.8%

Pent-Up DemandU.S. Real GDP Growth 1790-2016

38Source: Hoisington Investment Management

Pent-Up DemandU.S. Housing Starts

39Source: Bloomberg

U.S. Housing Starts (Seasonally Adjusted Annual Rate)

Sep '991.33M

June '071.73M

Dec '160.91M

0.0 M

0.5 M

1.0 M

1.5 M

2.0 M

2.5 M

0.0 M

0.5 M

1.0 M

1.5 M

2.0 M

2.5 M

'59 '62 '65 '68 '71 '74 '77 '80 '83 '86 '89 '92 '95 '98 '01 '04 '07 '10 '13 '16

Housing Starts 10 Year Moving Avg.

Housing Starts Summary:1960s 1.39M p.a.1970s 1.78M1980s 1.48M1990s 1.37M2000s 1.44M2010s 0.89M'59-'16 1.44MCurrent 1.23M

Over the past decade, the U.S. built 8.2 millionfewer houses than it did between 1997-2007

Jun '0518.0

Sep '099.4

Dec '1618.3

Sep '0716.7

Dec'1614.6

4 yr

6 yr

8 yr

10 yr

12 yr

5 M

10 M

15 M

20 M

25 M

'76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16

US Auto Sales 10 Year Moving Average Median Fleet Age (right axis)

US Auto Sales Summary:1970s 14.1M p.a.1980s 13.7M1990s 14.6M2000s 15.3M2010s 15.2M'76-'16 14.7MCurrent 18.3M

Pent-Up DemandU.S. Auto Sales and Median Fleet Age

40Source: Bloomberg

U.S. Auto Sales (Seasonally Adjusted Annual Rate)

Pent-Up DemandU.S. Gross Fixed Capital Formation to GDP

41Source: OECD Main Economic Indicators

Jun '6125.2%

Mar '7936.5%

Jun '9323.7%

Sep '0028.6%

Sep '0628.5%

Mar '1119.0%

Dec '1422.3%

60 year average= 27.5%

10%

15%

20%

25%

30%

35%

40%

10%

15%

20%

25%

30%

35%

40%

'55 '58 '61 '64 '67 '70 '73 '76 '79 '82 '85 '88 '91 '94 '97 '00 '03 '06 '09 '12 '15

Gross Fixed Capital Formation / GDP 10 Year Trailing Average

-10%

0%

10%

20%

1986 1990 1994 1998 2002 2006 2010 2014

Total Return on Investment Portfolio

42

Average Return on Portfolio 8.3%

199

Next Decade - Building on Fairfax’s Strengths

Our guiding principles have remained intact Excellent long term performance Demonstrated strengthsStrong operating subsidiaries focused on underwriting profitability

and prudent reservingConservative investment management providing excellent long

term returns Well positioned for the futureFair and friendly Fairfax culture

43