Annual Meeting April 09, 2014

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

4 6 8

11

15 18 19 2

6 31 3

9

63

86

11

2

15

6

14

8

11

8 12

7

16

7

16

7

14

3 15

7

24

0

29

3

39

3

40

9

40

7

431

33

9

1985 1989 1993 1997 2001 2005 2009 2013

Book Value

Cumulative Dividend

Fairfax 28 Years

6

Shareholders Book Value per Share plus Dividends $

1.5

2

402 28 Year Compound Annual Growth Rate

22%

339

Financial Results

(1) Excludes dividends paid

7

Book Value

per Share (1) % Change

2006 $ 150

2007 $ 230 53%

2008 $ 278 21%

2009 $ 369 33%

2010 $ 376 2%

2011 $ 365 (3%)

2012 $ 378 4%

2013 $ 339 (10%)

8

19.8%

16.5%

15.4%

14.4% 13.9%

12.7%

11.7% 11.2% 10.8% 10.7%

10.2%

9.1% 8.7%

4.0%

(1.2%)

Historic Performance vs Peer Group

Compound Growth in Book Value per Share (5 Years ending 2013) (1)

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

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 (28 Years: since Fairfaxs inception) (1)

10

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

21.3%

17.0% 16.3%

14.6%

13.3% 13.1%

10.1% 9.0%

8.1%

5.7%

Source of Earnings in 2013

11

($ millions)

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

Underwriting profit (Combined Ratio of 92.7%) 440 Investment income and other 382

Operating Income 822

Other (1) (259)

Realized investment gains 1,380

Pre-tax income including realized investment gains 1,943 Unrealized investment losses (mostly from bonds) (962)

Hedging losses (1,982)

Pre-tax loss (1,001)

Net Loss (565)

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

1,324

29

Realized

Gains

(Losses) ($ millions)

(1,351)

(27) 66 -

(10)

Unrealized

Gains

(Losses) ($ millions)

121 (631)

(510) (995) (127)

39

(1,593)

Net

Gains

(Losses) ($ millions)

1,445 (1,982)

(537) (929) (127)

29

(1,564)

Net Gains on Investments in 2013

12

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

2,767

2,835

Realized

Gains

(Losses) ($ millions)

(1,344)

1,423 1,622

- (209)

Unrealized

Gains

(Losses) ($ millions)

(91) (2,166)

(2,256) (468) (462) 118

(3,068)

Net

Gains

(Losses) ($ millions)

2,676 (3,510)

(834) 1,154 (462)

(91)

(233)

Net Gains on Investments 2010 2013

13

Accident Year Combined Ratios

14

Cumulative Net

Premiums Average

Written Combined Ratio

($ billions)

Northbridge Cdn 11.0 98.4%

Crum & Forster 9.9 101.8%

OdysseyRe 21.6 92.6%

Fairfax Asia 1.3 86.7%

43.8 96.0%

2004-2013

Average Annual

Reserve

Redundancies

Northbridge 10.3%

Crum & Forster 4.6%

OdysseyRe 11.3%

Fairfax Asia 7.9%

2003-2012

Accident Year Reserve Redundancies

15

Net Premiums

Written/

Net Premiums Statutory Statutory

Written Surplus Surplus

Northbridge 1,031 1,172 0.9x

Crum & Forster 1,233 1,142 1.1x

Zenith National 700 516 1.4x

OdysseyRe 2,377 3,809 (1) 0.6x

Fairfax Asia 257 610 (1) 0.4x

Strong Operating Companies Capital - 2013

(1) IFRS total equity

16

($ millions) ($ millions)

Well Positioned for a Turn in the Cycle

17 0

500

1,000

1,500

2,000

2,500

3,000

1999 2000 2001 2002 2003 2004 2005

Gro

ss P

rem

ium

s W

ritt

en

OdysseyRe

Northbridge (Cdn $)

Crum & Forster

Soft Market Hard Market

($ millions)

Importance of Float

10 year average cost of float: 0.7%

(2004 2013)

18

Operating Total

Companies (Including Runoff) Per Share

1985 $ 12.5 million $ 12.5 million $ 3

2013 $ 11.9 billion $ 15.6 billion $ 734

Year-End

Importance of Float

19

Year-End 2013

($ millions) Per Share

Total Float 15,551 $ 734

Common Shareholders' Equity 7,187 $ 339

Net Liabilities 2,124 $ 100

Total Investment Portfolio 24,862 $ 1,173

Investment Portfolio in 1985 24 $ 5

Gains 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)

Cumulative Gains billion$ 10

Pre-Tax Realized and Unrealized Gains

20

($ millions)

Pre-Tax Income Runoff Operations

21

2007 188

2008 393

2009 31

2010 165

2011 351

2012 184

2013 (229)

Cumulative (2007-2013) 1,083

Acquisitions in 2013

American Safety 100% ownership

Hartville 100% ownership

Thomas Cook/IKYA/Sterling

Prime/CARA/Keg

22

Investment Performance

Hamblin Watsa Investment Performance

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

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

S&P 500 17.9% 7.4% 4.7%

Taxable bonds 11.2% 10.3% 9.9%

Merrill Lynch U.S.corporate

(1-10 year) bond index

8.4% 5.0% 5.7%

5 Years 10 Years 15 Years

As at December 31, 2013

23

Fairfaxs Investment Portfolio 2008 vs 2013

Cash/Short-Term31%

Corporate Bonds

6%

Municipal Bonds

25%

Gov't Bonds

12%Common Stocks 22%

(~100% Hedged)

Other

Investments

4%

Cash/Short-Term27%

Corporate Bonds

4%

Common Stocks 16%

(~100% Hedged)

Other

Investments

6%

Government

Bonds 47%

September 30, 2008 (1)

$20.4 billion

(1) Includes holding company cash and marketable securities

December 31, 2013 (1)

$24.9 billion

24

At December 31, 2012 n/a $ 378

First quarter $ 7.1 $ 373

Second quarter $ (8.6) $ 362

Third quarter $ (29.0) $ 335

Fourth quarter $ (1.0) $ 339

2013

Earnings

(Loss) per

Share

Book

Value per

Share

Fairfax Focused on the Long Term

Earnings and book value volatile on a quarterly basis

25

Financial Strength

26

2012 2013

Holding Company Obligations 2,378 2,491

Subsidiary Debt 671 504

Total Debt 3,049 2,995

Holding Company Cash and Marketable Securities 1,128 1,242

Net Debt 1,921 1,753

Total Equity & Non-controlling Interests 8,890 8,461

Net Debt/Net Total Capital 17.8% 17.2%

Total Debt/Total Capital 25.5% 26.1%

($ millions)

Investments Not Carried at Market Value

27

Carrying

Value

Fair

Value

Unrealized

Gain

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

Investments in Associates 1,433 1,815 382

Thomas Cook India 162 253 91

Ridley 70 131 61

Eurobank Properties (Rights Offering) 109

Total 643

28

Emerging Markets and Asian Footprint

Gross

Premiums

Written Ownership

Fairfax's Share of

Gross Premiums

Written

First Capital 399 100% 399

Fairfax Brasil 151 100% 151

Polish Re 100 100% 100

Pacific Insurance 73 100% 73

Falcon Insurance (Hong Kong) 58 100% 58

781 781

ICICI Lombard 1,240 26% 322

Alltrust Insurance 900 15% 135

Gulf Insurance 533 41% 219

Falcon Insurance (Thailand) 48 41% 20

Other Reinsurance 334 25% 84

3,055 780

Total 3,836 1,561

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 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Panic Year 2008

Panic Year 1929

Panic Year 1873

1870-2013 avg. = 180.2%

Current total debt = $58.9 trillion

Debt/GDP of 180.2% would require total debt of $30.8 trillion

30Source: Hoisington Investment Management

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

29

30

100%

200%

300%

400%

500%

600%

700%

1979 1983 1987 1991 1995 1999 2003 2007 2011

100%

200%

300%

400%

500%

600%

700%

Canada

Australia

U.S.

Eurozone

U.K.

Japan

Source: Hoisington Investment Management

annual

Total Public and Private Debt

as a % of GDP Major Countries

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

Source: Hoisington Investment Management 32

1918 = 1.95

Avg. 1900 to

present = 1.71

1946 = 1.18

1997 = 2.2

annual

Avg. 1953 to 1983 = 1.74

1.57

31

Velocity of Money 1900-2013

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

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

Source: Hoisington Investment Management

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 2.5%

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

32

0%

2%

4%

6%

8%

10%

12%

14%

0%

2%

4%

6%

8%

10%

12%

14%

Source: Hoisington Investment Management

Interest rate avg. = 2.9%

Inflation rate avg. = 1.0%

avg. = 4.3%

Onset of Iron and

Bamboo Curtains

Fall of Berlin Wall

Interest rate avg. = 6%

Inflation rate avg. = 3.9%

Global market Restricted market

Global

market

1871 1891 1911 1931 1951 1971 1991 2011

3433

Long Term Treasury Rate 1871-2013

05

10

15

20

25

30

35

40

45

50

0

5

10

15

20

25

30

35

40

45

50

1881 1893 1905 1917 1929 1941 1953 1965 1977 1989 2001 2013

Source: Hoisington Investment Management

Average

Dec. 1999

42

Average at end of

recessions = 13.1

Range = 5.3 to 19.3

Avg. = 16.4

35

Jan. 1966

24

Sept. 1929

32

June 1901

25

34

Shillers Price-Earnings Ratio 1881-2013

S&P 500 Index and Profit Margins

0

1

2

3

4

5

6

7

8

9

10

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan 1994 Jan 1998 Jan 2002 Jan 2006 Jan 2010 Jan 2014

Profit Margin Index

Source: Bloomberg35

An

nu

al

Cu

mu

lati

ve

37Source: Organization for Economic Cooperation & Development

-15%

-10%

-5%

0%

5%

10%

-3%

-2%

-1%

0%

1%

2%

3%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Annual Deflation Annual Inflation Cumulative

*

* Estimate36

Deflation in Japan

7-10 Year US High Yield Debt

(Yield To Maturity)

0

5

10

15

20

25

Source: Bloomberg

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

37

Source: Bloomberg 38

High Tech Speculation

Market Cap. P/E Ratio Price to Sales

(US$ Billions)

Social MediaTwitter 39 (loss) 38x

Netflix 27 186x 6x

Facebook 174 116x 21x

LinkedIn 24 887x 15x

Yelp 7 (loss) 27x

Yandex 12 33x 11x

Tencent Holdings 150 59x 16x

Other Tech/WebGroupon 6 (loss) 2x

Service Now 10 (loss) 22x

Salesforce.com 38 (loss) 9x

Netsuite 9 (loss) 21x

Monstrous Real Estate & Construction

Bubble in China

China built 50 Manhattans between 2008 and 2012

China built 20 million housing units in 2012 compared to 2 million in the United States at its peak

At the end of 2013 China had 60 million units under construction

In many Chinese cities, the existing housing stock has been replicated and is empty

Home ownership rates in China are estimated to be over 100% versus 65% in the United States

Since 2009 the Chinese banks have grown by the equivalent of the entire United States banking system

The shadow banking system in China is estimated by BoA to be $4.7 trillion or 51% of Chinese GDP

Prior to the credit crisis, the U.S. had $4.5 trillion in asset-backed securities (31% of U.S. GDP)

A combination of explosive growth and high interest rates has resulted in a massive carry trade where speculators borrow at low rates across

the world and invest in China when the capital flows reverse, watch out!

39

CPI-Linked Derivative Contracts

December 31, 2013

40

Notional Weighted

Amount Average Dec 31, 2013

Underlying CPI Index ($ billions) Strike Price (CPI) CPI

U.S. 34 230 233

European Union 39 110 117

U.K. 6 244 253

France 4 125 126

83

($ millions)

Total Cost 546

Total Market Value 132

41

Fairfax Historic Total Return on

Investment Portfolio

-10%

0%

10%

20%

1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

Total Return on

Portfolio

Average Return on

Portfolio 8.9%

2013

Peer 1

Peer 2

Peer 3

Peer 4

Peer 5

Peer 6

Peer 7

Peer 8

Peer 9

Peer 10

Average

Fairfax

4.2%

7.4%

4.2%

4.1%

4.0%

3.8%

3.6%

4.7%

4.6%

4.5%

4.4%

4.3%

Superior Long Term Investment

Track Record

Source: SNL Financial LC; Returns calculated by Fairfax

Return on Average Investments 2004-2013

42

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

43