Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that all of its outstanding 4.875% senior notes due August 13, 2024 (the “Notes”) will be redeemed on January 29, 2024 by its wholly-owned subsidiary Fairfax (US) Inc. at a redemption price that will be determined on January 24, 2024 in accordance with the Notes’ terms, plus accrued and unpaid interest. At present, the principal amount of US$279,305,000 in Notes is outstanding. Fairfax offers its complete, unqualified, and irreversible guarantee on the Notes.
In accordance with the “safe harbour” provisions of the US Private Securities Litigation Reform Act of 1995 and any relevant Canadian securities legislation, certain of the comments expressed here may be deemed to be “forward-looking statements.” The actual results, performance, or accomplishments of Fairfax could differ materially from any future results, performance, or accomplishments expressed or implied by such forward-looking statements due to known and unknown risks, uncertainties, and other factors. These variables comprise, but are not restricted to: our capacity to execute strategic deals and acquisitions on the terms and timeliness considered and to realise the expected advantages from them;
underwriting losses on the risks we cover that are more or lower than anticipated; a decrease in net earnings if our loss reserves are inadequate; the frequency or intensity of catastrophic catastrophes beyond our estimates; adverse shifts in market factors that might have an adverse effect on our investment portfolio, such as interest rates, credit spreads, equities prices, and foreign exchange rates; the cycles of the insurance industry and overall economic circumstances, which have the potential to significantly impact both our rivals’ and our own premium rates as well as our ability to write new business; inadequate funds for latent claims related to asbestos, the environment, and other issues; exposure to credit risk in the event that our reinsurance agreements are not fulfilled by our reinsurers;
exposure to credit risk in the event that our insureds, insurance producers, or reinsurance intermediaries fail to pay us the premiums that are owed, or in the event that our insureds fail to reimburse us for deductibles paid on their behalf; risks related to putting our business strategies into action; the possibility that we won’t be able to maintain our long-term debt ratings; the possibility that our subsidiaries won’t be able to maintain their financial or claims-paying ability ratings; the effect that a downgrade of these ratings on derivative transactions that we or our subsidiaries have entered into;
hazards related to using derivative instruments; the inability of any hedging strategies we may use to meet our risk management goals; a decline in the demand for insurance or reinsurance products; heightened competition in the insurance market; the effect of new claim and coverage issues or the failure of any strategies we use to limit losses; our inability to access the cash of our subsidiaries; our inability to secure the necessary amounts of capital on favourable terms, if at all; the departure of key personnel; our inability to secure reinsurance coverage in sufficient amounts, at reasonable rates, or on terms that adequately protect us; the enactment of laws exposing our businesses to additional adverse requirements,