Annual Meeting

April 20, 2011

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 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 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 191 – 201 in our 2010
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 Fairfax’s 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.

2
Fairfax – Twenty Five Years

1985 2010
($ millions)
Net Premiums Written 12 4,449
Net Earnings (1) 471
Investment Portfolio 24 23,305
Total Assets 30 31,738
Common Shareholders' Equity 8 7,762

Per Share Growth

Book Value $ 1.52 $ 379 250x

Share Price (C$) $ 3.25 $ 409 126x
Investments $ 4.80 $ 1,139 237x
Net Premiums Written $ 2.44 $ 217 89x

3
Fairfax Value Creation
(RE)INSURANCE = IT’S ALL ABOUT COMPOUNDING BOOK VALUE

WIN, PLACE, SHOWING UP...& FAIRFAX

350
R
E 306.3
T
300
Fairfax = 26%
U
R Progressive = 21%
N
250
W.R. Berkley = 19%
O
200
N Win = 15%

I 150 Place = 12%

N
V Showing Up = 7% 117.5
E
100
S
T 75.5
M
50 32.9
E
N 17.0
T 0 5.4

5 years 10 years 15 years 20 years 25 years

Source: Dowling & Partners 4
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

5
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

6
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! 7
Financial Results

2006 2009 2010

Book Value per Share $ 150 $ 370 $ 379
Growth in Book Value per Share 33% 3%

Common Shareholders'
Equity ($ billions) 2.7 7.4 7.8

Investments per Share $ 1,064 $ 1,139

8
Why Lower Investment Returns in
2010 ?
($ millions)
1. Common Stocks
Realized gains 536
Unrealized gains 421
957
Unrealized hedging losses (937)
Net gains 20

2. Fixed Income
Realized gains 523
Unrealized losses (412)*
Total 111

* Government (190)
Municipal (216)
Other (6)
Total (412) 9
2010 Subsidiary Financial Results

Combined Net Return on

Ratio Earnings Avg. Equity
($ millions)

Northbridge 107.3% 81 5.0%

Crum & Forster 109.1% 64 5.8%

Zenith National* 137.8% -24 -1.9%

OdysseyRe 98.6% 225 6.1%

Fairfax Asia 89.3% 46 12.6%

*since it was acquired in May 2010

10
Accident Year Combined Ratios

2002-2010
Cummulative Net Average
Premiums Combined Ratio
Written (fully developed)
($ billions)

Northbridge Cdn 9.9 95.6%

Crum & Forster 7.9 99.8%
OdysseyRe 18.5 91.2%
Fairfax Asia 0.7 88.0%

11
Accident Year Reserve Redundancies

Average Annual
Reserve
Redundancies
2002-2009

Northbridge 7.6%
Crum & Forster 8.9%
OdysseyRe 9.6%
Fairfax Asia 2.6%

12
Strong Capital

Net Premiums
Written/
Net Premiums Statutory Statutory
Written Surplus Surplus
($ millions) ($ millions)

Northbridge 985 1,272 0.8

Crum & Forster 733 1,314 0.6
(1)
Zenith National 427 690 0.6
(2)
OdysseyRe 1,854 3,749 0.5
(2)
Fairfax Asia 157 397 0.4

(1) Zenith National was acquired on May 20, 2010;

as a result, net premiums written for the period May 21 to December 31, 2010 have been annualized
(2) Canadian GAAP total equity

13
Subsidiary Growth in
Book Value per Share
2001-2010
Compound Annual
Growth Rate
Northbridge 17.2%
Crum & Forster 17.0%
OdysseyRe 20.4%
Fairfax Asia (1) 23.6%
(1)
Since commencement in 2002

 Built on:
 Underwriting culture
 Conservative reserving
 Total return investing
14
Acquisitions in 2010
First Mercury – 100% ownership
 Nine year average combined ratio of 93%
 Excess and surplus lines writer in the United States

Gulf Insurance – 41% ownership

 Ten year average combined ratio of 94%
 Premier P&C company in the Middle East

Pacific Insurance Berhad – 100% ownership

 Seven year average combined ratio of 99%
 General insurance specializing in medical insurance based in Malaysia

General Fidelity Insurance Company – 100% ownership

 Run-off company purchased by RiverStone
 Purchased below book value with significant downside protection
15
International Operations
Fairfax International Operations as at and for the year ended December 31, 2010 ($ millions)

Fairfax Share
Gross Gross
Shareholders' Premiums Investment Shareholders' Premiums
Equity Written Portfolio Equity Written
Fairfax Asia 665 1,301 1,560 380 607
Insurance - Other 672 1,277 1,628 212 334
Reinsurance - Other 212 401 717 212 401

Total International Operations 1,549 2,979 3,905 804 1,342

Fairfax Asia Insurance - Other Reinsurance - Other

Falcon Insurance (Hong Kong) Fairfax Brasil Advent Capital (United Kingdom)
First Capital (Singapore) Alliance Insurance (Dubai) (1)(2) Polish Re (Poland)
Falcon Thailand (1) Gulf Insurance (Kuwait) (1)
ICICI Lombard (India) (1)(2) Alltrust Insurance (China) (2)(3)

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

(2) All dollar amounts are as at or for the 12 months ended September 30, 2010.
(3) Alltrust is carried at cost. 16
Broad Diversification by Line and
Geography
Fairfax Global Operations
Fairfax North America Insurance Fairfax Global Reinsurance Fairfax International Fairfax Runoff
Insurance

United States Canada Global Lloyds Fairfax Asia Other US/Europe

• Crum & Forster • Commonwealth • CRC • Advent • Falcon • Alliance • GFIC

• Fairmont • Federated Reinsurance • Newline • First Capital • Alltrust • nSpire Re
• First Mercury • Lombard • OdysseyRe • ICICI Lombard (China) • RiverStone UK
• Hudson • Markel • Polish Re • Pacific Berhad • FFH Brasil • TIG
• Seneca • Wentworth • Gulf Ins
• Zenith

• Commercial Auto • Commercial Auto • Casualty ● Commercial • Marine / Hull • Commercial • Workers
• Std Lines Casualty • Commercial Reinsurance Auto • Industrial Risks Property Compensation
• Std Lines Property Property • Property • Crime • Employee Comp • Motor
• A&E
• Accident & Health Reinsurance • Direct • Commercial Auto • General
• Commercial Liab Accident
• Other Latent
• Workers Comp • Trucking • Surety Property • Personal • Reinsurance
• Medical
• Excess&Surp.Lines • Personal Lines • Marine • General Accident • Insurance
• Marine
• Umbrella • Direct Agency • Casualty Fac. Liability • Personal Lines • Surety • Lloyds
• D&O • Property Fac. • Property • Commercial Prop. • Personal Lines
• Professional Liability • Aerospace Reinsurance • Commercial
• Medical Malpractice • Accident & Health • Energy Auto.
• Crop • Prof. Liability • Professional
• Surety • Medical Liab.
• Offshore Energy • Aviation
Malpractice • Energy Offshore
• Marine • Marine & Onshore
Well Positioned for a Turn in the Cycle

3,000
Northbridge (C$)
Gross Premiums Written ($ millions)

Odyssey Re
Crum & Forster
2,500

2,000

1,500

1,000

500

Soft Market Hard Market

0
1999 2000 2001 2002 2003 2004 2005

18
Dividend Capacity
Operating Companies

At December 31, 2010

($ millions)

Northbridge 229
Crum & Forster 133
Zenith National 69
OdysseyRe 315
Total 746

19
Importance of Float
Average Float
(Operating
Companies)

1986 $ 22 million

2010 $ 10.4 billion (year-end $ 11 billion)

 Average cost of float: 2.3%

 Total float at year-end 2010 $ 13.1 billion

(including runoff) $ 641 / share

20
Importance of Float

Year-End 2010
($ millions) Per Share
Total Float 13,110 $ 641

Common Shareholders' Equity 7,762 $ 379

Net Debt 2,434 $ 119

Total Investment Portfolio 23,306 $ 1,139

Investment Portfolio in 1985 $24 million $5

21
Pre-Tax Interest and Dividend Income

Interest &
Dividend
Income Per Share
($ millions)

1985 3 70¢
2010 762 $ 37

2010 - Adjusted
for "Munis" 869 $ 42

22
Pre-Tax Realized & Unrealized Gains

Gains Per Share

($ millions)
1985 0.5 10¢

2008 2,292 $ 126

2009 1,981 $ 108
2010 22 $ 1

Cumulative Gains $ 10.2 billion

23
Long Term Common Stock Holdings
At December 31, 2010

Shares Market Unrealized

Owned Value Gains
(millions) ($ millions) ($ millions)
Wells Fargo 20.0 620 232
Johnson & Johnson 7.6 469 5
US Bancorp 15.9 428 169
Kraft Foods 10.9 344 54
Total 1,861 460

24
Investment Performance
Hamblin Watsa Investment Performance

5 Years to 10 Years to 15 Years to

Dec. 31 '10 Dec. 31 '10 Dec. 31 '10

Common stocks (with equity hedging) 14.2% 17.9% 17.2%

Common stocks (without equity hedging) 6.9% 14.3% 14.8%
S&P 500 2.3% 1.4% 6.8%

Taxable bonds 12.6% 11.9% 10.0%

Merrill Lynch U.S.corporate (1-10 year) bond index 5.9% 6.3% 6.2%

Source: Hamblin Watsa Investment Counsel - Annualized Rate of Return (%).

Notes: Bonds do not include returns from credit default swaps.
15 year investment performance includes portfolios managed by Hamblin Watsa which were not owned by Fairfax.
Past performance is no guarantee of future results. 25
Fairfax Focused on the Long Term
Earnings and book value volatile on a quarterly basis
2010

Earnings (Loss) Book Value

per Share per Share

At December 31, 2009 n/a $ 370

First quarter $ 14.02 $ 384

Second quarter $ 15.49 $ 383

Third quarter $ 10.24 $ 401

Fourth quarter $ (18.43) $ 379

26
Financial Strength

2009 2010
($ millions)

Subsidiary Debt 903 920

Holdco Obligations 1,411 1,810
Total Debt 2,314 2,730
Holdco Cash and Marketable Securities 1,243 1,474
Net Debt 1,071 1,255

Total Equity & Minority Interest 7,737 8,742

Net Debt/Net Total Capital 12.2% 12.6%

Total Debt/Total Capital 23.0% 23.8%

27
U.S. Debt as % of GDP 1870-2010
Annual
380% 380%
2009 = 372
360% 360%
340% 340%
320% 1933 = 299.8 320%
2003 = 301.4
300% 300%
280% 280%
2000
260% 260%
1998
240% 240%
220% 220%
1928
200% 200%
180% 180%
1875 = 156.4 1916 = 170.4 Total
160% 160%
140% 140%
Private
120% 120%
100% 100%
80% 80%
60% 60%
Federal
40% 40%
20% 20%
0% 0%
1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Source: Hoisington Investment Management. 28

Deleveraging Has Begun - Just
U.S. Total Private Sector (1) Debt and Total Private Sector Debt/GDP
1953 - 2010
5,000 350%

4,000
300%
3,000
250%
Year over Year Change ($ Billions)

2,000

1,000 200%
b

0 150%

-1,000
100%
-2,000
50%
-3,000

-4,000 0%
1953 1958 1964 1970 1976 1981 1987 1993 1999 2004 2010
Total Private Sector Debt Total Private Sector Debt/GDP
(1) Household, business and financial sector 29
Source: Gluskin Sheff and Hoisington Investment Management
Bank Credit plus Commercial Paper
Monthly ($ trillion)
12 12

11 11

10 10

9 9

8 8

7 7

6 6

5 5

4 4

3 3
1990 1994 1998 2002 2006 2010
30
Source: Hoisington Investment Management.
Velocity of Money
Equation of Exchange: GDP (nominal) = M*V
Annual
2.25 2.25
1997 = 2.12

1918 = 1.95
2.00 2.00

Avg. 1900
1.75 to present = 1.67 1.75

1.50 1.50
1928 = 1.5 Avg. 1953
to 1980 = 1.675

1.25 1.25
Cumulative decline during Great
Depression = -22%
1932 = 1.17
% change Q3 2010 level to 1.17 = 31%
1.00 1.00
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Source: Hoisington Investment Management 31

High Yield Rates

30%

25%

20%

15%

10%

5%

0%
2005 2006 2007 2008 2009 2010
Source: Merrill Lynch 32
Fairfax Investment Portfolio
Positioned For Income & Capital Gains
2007 2008 2009 2010

Cash and Short Term 21% 32% 17% 17%

Government Bonds 50% 16% 14% 23%

Municipal Bonds 1% 20% 26% 23%
Corporate Bonds 4% 7% 14% 9%
Total Fixed Income 55% 43% 54% 55%
Yield 4.6% 4.7% 6.5% (1) 6.5% (1)

(2)
Common Stocks 17% 22% 26% 23%

Other Investments 7% 3% 3% 5%
Total 100% 100% 100% 100%

Total Investment Portfolio (3) ($ billions) $19.0 $19.9 $21.3 $23.3

(1) Pre-tax equivalent yield

(2) Common stock hedging: 2007: 86%, 2008: 0%, 2009: 30%, 2010: 89%
(3) Includes holding company cash and marketable securities 33
CPI-Linked Derivative Contracts
December 31, 2010

Notional Weighted
Amount Average Dec 31, 2010
Underlying CPI Index ($ billions) Strike Price (CPI) CPI
U.S. 16 217 219
European Union 17 109 111
U.K. 1 216 228
34
($ millions)
Total cost 302
Total market value 329

34
Fairfax’s Strengths
Demonstrated Over 25 Years
1. Operations – Disciplined operating management focused on
underwriting profitability and prudent reserving
 P&C Insurance Operations
• Canada – One of the leading commercial insurance
operations
• United States – large commercial operation across the
country
• Asia – Hong Kong, Singapore, Thailand, China, Malaysia
and largest private operation in India
• South America – Fairfax Brasil
• Middle East – Dubai and Kuwait
• Eastern Europe – Poland

 P&C Reinsurance Operations

• Worldwide – Top 5 broker reinsurer in the U.S., top 20 in
the world
35
Fairfax’s Strengths
Demonstrated Over 25 Years

2. Investments – Long term, value-oriented philosophy

 Worldwide
• Stocks
• Bonds
• Distressed debt
• Wherever “value” prevails
 Excellent long term track record

36
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

37