Annual Meeting April 16, 2015

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 harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking 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 earnings if our loss reserves are insufficient; underwriting losses on the risks we insure that are higher or lower than expected; the occurrence of catastrophic events with a frequency or severity exceeding our estimates; changes in market variables, including interest rates, foreign exchange rates, equity prices and credit spreads, which could negatively affect our investment portfolio; the cycles of the insurance market and general economic conditions, which can substantially influence our and our competitors' premium rates and capacity to write new business; insufficient reserves for asbestos, environmental and other latent claims; exposure to 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, insurance producers 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 their behalf; risks associated with implementing our business strategies; the timing of claims payments being sooner or the receipt of reinsurance recoverables being later than anticipated by us; the inability of our subsidiaries to maintain financial or claims paying ability ratings; risks associated with our use of derivative instruments; the failure of our hedging methods to achieve their desired risk management objective; a decrease in the level of demand for insurance or reinsurance products, or increased competition in the insurance industry; the failure of any of the loss limitation methods we employ; the impact of emerging claim and coverage issues; our inability to access cash of our subsidiaries; our inability to obtain required levels of capital on favourable terms, if at all; loss of key employees; our inability to obtain reinsurance coverage in sufficient amounts, at reasonable prices or on terms that adequately protect us; the passage of legislation subjecting our businesses to additional supervision or regulation, including additional tax regulation, in the United States, Canada or other jurisdictions in which we operate; risks associated with government investigations of, and litigation and negative publicity 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 our significant shareholder; adverse fluctuations in foreign currency exchange rates; our dependence on independent brokers over whom we exercise little control; an impairment in the carrying value of our goodwill and indefinite-lived intangible assets; our failure to realize deferred income tax assets; and assessments and shared market mechanisms which may adversely affect our U.S. insurance subsidiaries. Additional risks and uncertainties are described in our most recently issued Annual Report which is available at www.fairfax.ca and in our Supplemental and Base Shelf Prospectus (under "Risk Factors") filed with the securities regulatory authorities in Canada, which is available on SEDAR at www.sedar.com. Fairfax disclaims any intention or obligation to update or revise any forward-looking statements.

2

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 3

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 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

1.5

2

4 6 8 11

15

18

19

26

31

39 6

3 8

6 1

12

156

148

118

127

167

167

143

157

240

293

393

409

407 431

402

46

8

395

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

Cumulative Dividend

Book Value

2014

Fairfax – 29 Years Book Value per Share plus Dividends ($)

6

Net Premiums Written – $12 million

Investment Portfolio – $24 million

Common Shareholders’ Equity – $8 million

Net Premiums Written – $6.1 billion*

Investment Portfolio – $26.2 billion

Common Shareholders’ Equity – $8.4 billion

* Ongoing Operations

29 Year Compound Annual Growth Rate

22%

Financial Results

(1) Excludes dividends paid

7

Book Value

per Share (1) % Change

2007 $ 230

2008 $ 278 21%

2009 $ 370 33%

2010 $ 376 2%

2011 $ 365 (3%)

2012 $ 378 4%

2013 $ 339 (10%)

2014 $ 395 16%

8

Historic Performance vs. Peer Group

Compound Growth in Book Value per Share (5 Years ending 2014) (1)

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

19.1%

14.0%13.0%

11.6%

9.8% 9.5% 9.3% 9.0%8.4% 8.3% 8.0%

6.6%

5.4%4.5%

1.3%

23

%

11

%

10

%

8%

7

%

6%

5%

5

%

3%

3

%

3%

3%

2

%

(1%

) (3

%)

(3%

)

(3%

)

(4%

)

(5%

) (5

%)

(6%

)

(7%

)

(7%

) (8

%)

(8%

) (9

%)

(9%

) (1

2%

)

(13

%)

(14

%)

(14

%)

(14

%)

(15

%)

(16

%)

(17

%)

(18

%)

(18

%)

(19

%)

(19

%)

(19

%)

(22

%)

(24

%)

(31

%)

(32

%)

(37

%)

(37

%)

(43

%)

(48

%)

(65

%)

(10

0%

)

SOURCE: Dowling & Partners, IBNR #12

Fairfax and AIG calculated using the same methodology as Dowling & Partners, based on company data (AIG excludes government financing) 9

2008 Change in Book Value per Share

Historic Performance vs. Peer Group

Compound Growth in Book Value per Share (29 Years: since Fairfax’s inception) (1)

10

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

21.1%

16.7% 16.2%

14.4%

12.8% 12.8%

10.0%9.0%

8.2%

5.7%

11

($ millions)

(1) Includes: Runoff underwriting income, Interest expense and corporate overhead & other

Underwriting profit – (combined ratio of 90.8%) 552

Investment income and other 441

Operating income 993

Other (1) (391)

Realized investment gains 778

Pre-tax income including realized investment gains 1,379 Unrealized investment gains (mostly from bonds) 1,153

Hedging losses (195)

Pre-tax income 2,338

Net earnings 1,665

Sources of Net Earnings in 2014

Underwriting Results in 2014

12

Combined Underwriting

Ratio Profit

($ millions)

Northbridge 95.5% 43

Crum & Forster 99.8% 2

Zenith 87.5% 90

OdysseyRe 84.7% 360

Fairfax Asia 86.7% 36

Other Insurance and Reinsurance 94.7% 21

Consolidated 90.8% 552

Equity and equity related investments Equity hedges Net equity Bonds CPI-linked derivatives Other

597

791

Realized

Gains

(Losses) ($ millions)

13

610 103

- 78

Unrealized

Gains

(Losses) ($ millions)

(55) (208)

(263) 1,134

18 56

945

Net

Gains

(Losses) ($ millions)

542 (195)

347 1,237 18 134

1,736

Net Gains on Investments in 2014

13

Equity and equity related investments Equity hedges Net equity Bonds CPI-linked derivatives Other

3,364

3,626

Realized

Gains

(Losses) ($ millions)

(1,331)

2,033 1,724

- (131)

Unrealized

Gains

(Losses) ($ millions)

(146) (2,374)

(2,520) 667 (444) 174

(2,123)

Net

Gains

(Losses) ($ millions)

3,218 (3,705)

(487) 2,391 (444)

43

1,503

Net Gains on Investments 2010 – 2014

14

Accident Year Combined Ratios

15

Cumulative Net

Premiums Average

Written Combined Ratio

($ billions)

Northbridge Cdn 10.8 100.3%

Crum & Forster 10.4 102.2%

OdysseyRe 21.6 93.2%

Fairfax Asia 1.5 87.3%

44.3 96.8%

2005-2014

Accident Year Reserve Redundancies

16

Average Annual

Reserve

Redundancies

Northbridge 11.7%

Crum & Forster 3.9%

OdysseyRe 11.1%

Fairfax Asia 6.7%

2004-2013

Importance of Float

10 year average cost of float: 0.3%

(2005 – 2014)

17

Operating Total

Companies (including Runoff) Per Share

1985 $ 12.5 million $ 12.5 million $ 3

2014 $ 11.6 billion $ 15.1 billion $ 711

Year-End

Importance of Float

18

Year-End 2014

($ millions) Per Share

Total Float 15,065 $ 711

Common Shareholders' Equity 8,361 $ 395

Net Liabilities 2,767 $ 131

Total Investment Portfolio 26,193 $ 1,237

Investment Portfolio in 1985 24 $ 5

Investment Portfolio including Brit 30,229 $ 1,354

Year-End 2014

($ millions) Per Share

($ millions)

Pre-Tax Income – Runoff Operations

19

2007 188

2008 393

2009 31

2010 165

2011 351

2012 184

2013 (229)

2014 273

Cumulative (2007-2014) 1,356

Gains (Losses) Per Share

($ millions)

1985 0.5 10¢

2008 2,144 $ 118

2009 1,981 $ 108

2010 (3) -

2011 691 $ 34

2012 643 $ 31

2013 (1,564) $ (77)

2014 1,736 $ 80

Cumulative Gains $11.7 billion

Pre-Tax Realized and Unrealized Gains

20

Acquisitions in 2014 / 2015

Brit PLC

Pethealth – 100% ownership

Fairfax Indonesia – 80% ownership

MCIS Insurance Berhad (Malaysia)

Union Assurance (Sri Lanka) – 78% ownership

Fairfax Eastern Europe (Slovakia/Hungary/Czech

Republic/Ukraine)

Insurance bolt-on acquisitions

Runoff acquisitions

Fairfax India

21

Investment Performance

Hamblin Watsa Investment Performance

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

Common stocks (with equity hedging) (2.7)% 6.5% 11.6%

S&P 500 15.5% 7.7% 4.2%

Taxable bonds 10.2% 11.1% 11.5%

Merrill Lynch U.S.corporate

(1-10 year) bond index

5.5% 5.0% 6.1%

5 Years 10 Years 15 Years

As at December 31, 2014

22

Investment Performance

Hamblin Watsa Investment Performance

23

5 Years 10 Years 15 Years

Compound Annual Returns

December 31, 2014

Common stocks (with equity hedging) (2.7%) 6.5% 11.6%

S&P 500 15.5% 7.7% 4.2%

December 31, 2013

Common stocks (with equity hedging) 3.2% 7.6% 13.5%

S&P 500 17.9% 7.4% 4.7%

December 31, 2012

Common stocks (with equity hedging) 5.5% 14.5% 13.5%

S&P 500 1.7% 7.1% 4.5%

Fairfax’s Investment Portfolio

Remains Defensive

24

Investment Portfolio Well Positioned

• No focus on short term earnings

• Capital preservation a priority

• Positioned to take advantage of

opportunities

• Fairfax capital base has benefitted

significantly from investment gains –

locked in common equity gains

• We have not deviated from our long

term value-oriented investment

philosophy

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

Fairfax Investment Portfolio

$26.2 billion at December 31, 2014(1)

Cash/Short-Term23%Other

Investments4%

Corporate Bonds

6%

Municipal Bonds

27%

Gov't Bonds15%

Common Stocks

(~90%hedged)25%

Investments not Carried at Market Value

25

Carrying

Value

Fair

Value

Unrealized

Gain

($ millions) ($ millions) ($ millions)

Insurance and reinsurance associates 440 673 234

Non-insurance associates 1,178 1,397 219

Thomas Cook India 270 473 203

Ridley 71 246 174

Total 831

26

Emerging Markets and Asian Footprint

ICICI Lombard (India) 1,129 26% 293

Alltrust Insurance (China) 920 15% 138

Gulf Insurance (Middle East) 608 41% 252

Falcon Insurance (Thailand) 48 41% 19

Singapore Re 116 27% 32

Thai Re 201 30% 60

3,022 795

Total 3,863 1,614

* Full year 2014 premium

Gross Fairfax's Share of

Premiums Gross Premiums

Written Ownership Written

($ millions) ($ millions)

First Capital (Singapore) 420 98% 411

Fairfax Brasil 158 100% 158

Polish Re 54 100% 54

Pacific Insurance (Malaysia) 75 100% 75

Falcon Insurance (Hong Kong) 82 100% 82

Fairfax Indonesia* 11 80% 9

Union Assurance (Sri Lanka)* 40 78% 31

840 820

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

27 Source: Hoisington Investment Management

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

300%

320%

340%

360%

380%

400%

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

300%

320%

340%

360%

380%

400%

1870 1890 1910 1930 1950 1970 1990 2010

Panic Year 2008

Panic Year 1929

Panic Year 1873

1870-2014 avg.=180.4%

Current total debt = $59 trillionDebt/GDP of 180.4% would require total debt of $32 trillion

28

Total Public and Private Debt

as a % of GDP – Major Countries

Source: Hoisington Investment Management

annual

100%

200%

300%

400%

500%

600%

700%

1979 1984 1989 1994 1999 2004 2009 2014*

100%

200%

300%

400%

500%

600%

700%

Canada

Australia

U.S.

Eurozone

U.K.

Japan

*Through Q2 2014, except U.S. which is through Q4 2014

29

Velocity of Money 1900-2014

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

Source: Hoisington Investment Management

annual

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

1.53

Avg. 1900 to present = 1.73

Avg. 1953 to 1983 = 1.75

0%

1%

2%

3%

4%

5%

6%

7%

0%

1%

2%

3%

4%

5%

6%

7%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Debt Induced Panic Years and

Long-Term Government Bond Yields

1. Average low level of interest rates after panic 2.0%

2. Average number of years after panic to lowest level

of interest rates

13.7 years

3. Average level of interest rates 20 years after panic 2.4%

4. Change from low level of interest rates to 20th year 0.5%

Long Term Government Bond Yields

Historic Panic Years

U.S. 2008

U.S. 1929

Japan 1989

30 Source: Hoisington Investment Management

31 Sources: Hoisington Investment Management, Bloomberg

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 and Bamboo Curtains

Long Term Treasury Rate

1871- Q1 2015

32

U.S. and German

30 Year Sovereign Yields

Source: Bloomberg

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

1994 1997 2000 2003 2006 2009 2012 2015

GER 30 YR UST 30 YR

Source: Bloomberg

U.S.2.5%

German0.6%

Quarterly, through Q1 2015

33

U.S. and German

30 Year Sovereign Yield Spread

Source: Bloomberg

-150

-100

-50

0

50

100

150

200

250

-150

-100

-50

0

50

100

150

200

250

1994 1997 2000 2003 2006 2009 2012 2015

Source: Bloomberg

Quarterly, through Q1 2015

34

Netherlands 10 Year Sovereign Yield

Source: Bank of America Merrill Lynch

35

Cyclically Adjusted P/E Ratio (S&P 500)

Source: 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 Ratio

Above February 2015

June 190125

Sept. 192933

Jan. 196624

Dec. 199944

Average at end of recessions = 13.1Range = 5.3 to 19.3

Average

Avg. = 16.6

Source: Robert J. Shiller

The CAPE Ratio is currently 28xSince 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

Feb. 201528

S&P 500 Index and Profit Margins

36

0

1

2

3

4

5

6

7

8

9

10

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Jan 1994 Jan 1999 Jan 2004 Jan 2009 Jan 2014

Profit Margin IndexSource: BloombergSource: Bloomberg

0

100

200

300

400

500

600

700

800

900

1000

0

100

200

300

400

500

600

700

800

900

1000

'85 '89 '93 '97 '01 '05 '09 '13

Source: Hoisington Investment Management

Commodity Price Declines

37

S&P GSCI Commodity Index, monthly

Source: Hoisington Investment Management

70

80

90

100

110

120

130

140

150

160

170

70

80

90

100

110

120

130

140

150

160

170

1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015

Source: Hoisington Investment Management

Upward Pressure on the Dollar

38

US Dollar Index, monthly

QE ends

Source: Hoisington Investment Management

39

Deflation in Japan

Source: The World Bank

-15%

-10%

-5%

0%

5%

10%

-3%

-2%

-1%

0%

1%

2%

3%1

99

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

Cu

mu

lati

ve

An

nu

al

Annual Inflation Annual Deflation

* In April 2014 Japan raised its consumption tax from 5% to 8% * Estimate - Japan Cabinet Office

*

40

U.S. and Euro Area Consumer Prices

y-o-y percent change, monthly

Source: Hoisington Investment Management

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1990 1994 1998 2002 2006 2010 2015

Through February 2015

Euro Area (-.1%)

U.S. (-.03%)

Source: Hoisington Investment Management

Market Cap. P/E Ratio Price to Sales

($ billions)

Social MediaTwitter 31 (loss) 21x

Netflix 29 111x 5x

Facebook 223 73x 17x

LinkedIn 33 89x 15x

Yelp 3 358x 9x

Yandex 9 19x 6x

Tencent Holdings 164 46x 14x

Other Tech/WebGroupon 6 (loss) 2x

Service Now 12 (loss) 17x

Salesforce.com 40 (loss) 8x

Netsuite 8 (loss) 14x

Source: Bloomberg 41

Public High Tech Speculation

42

CPI-Linked Derivative Contracts

December 31, 2014

Notional Market Unrealized

Amount Cost Value Gain (Loss)

Underlying CPI Index ($ billions) ($ millions) ($ millions) ($ millions)

United States 59 327 151 (175)

European Union 45 286 70 (215)

United Kingdom 5 24 5 (20)

France 3 18 12 (7)

112 655 238 (417)

43

Fairfax Historic Total Return on

Investment Portfolio

-10%

0%

10%

20%

1986 1990 1994 1998 2002 2006 2010 2014

Total Return on

Portfolio

Average Return on

Portfolio 8.9%

1990

Ready for the Next Decade -

Building on Fairfax’s 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

44

Annual Meeting April 16, 2015