Annual MeetinggApril 22, 2010

Note: All financial disclosure in this presentation is, unless otherwise noted, in US$ and, except per share data, in $ millions

Forward-Looking StatementsCertain statements contained herein may constitute forward-looking statements and are madepursuant to the “safe harbor” provisions of the United States Private Securities Litigation ReformAct of 1995. Such forward-looking statements are subject to known and unknown risks,

Forward Looking Statements

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 achievementsof Fairfax to be materially different from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factors include, but are not limitedto: a reduction in net income if our loss reserves are insufficient; underwriting losses on the risksour subsidiaries insure that are higher or lower than expected; the occurrence of catastrophicevents with a frequency or severity exceeding our estimates; the cycles of the insurance marketevents 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 writenew 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 favourablefinancial or claims-paying ability ratings; an inability to realize our investment objectives; exposureto credit risk in the e ent o r s bsidiaries’ reins rers or ins reds fail to make pa ments ato credit risk in the event our subsidiaries’ reinsurers or insureds fail to make payments; adecrease in the level of demand for our subsidiaries’ products, or increased competition; aninability to obtain reinsurance coverage at reasonable prices or on terms that adequately protectour subsidiaries; an inability to obtain required levels of capital; an inability to access cash of oursubsidiaries; risks associated with requests for information from government authorities; risksassociated with current government investigations of, and class action litigation related to,g g ginsurance industry practice; the passage of new legislation; and the failure to realize future incometax assets. Additional risks and uncertainties are described on pages 166 – 172 in our 2009Annual Report which is available at www.fairfax.ca. For a fuller detailing of issues and risksrelating to the company, please see Risk Factors in Fairfax’s most recent Supplemental and BaseShelf 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

2

which is available on SEDAR and EDGAR. Fairfax disclaims any intention or obligation to updateor revise any forward-looking statements.

Guiding Principles

Objectives

Guiding Principles

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,subsidiaries for the long term benefit of customers, employees and shareholders – at the expense of short term profits if necessary

O f i l t th i b k l h dOur 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 h h ld

3

shareholders

Guiding Principles

Structure

Guiding Principles

Our companies are decentralized and run by the presidents except for performance evaluation, succession planning, acquisitions and financing, which are done by or withacquisitions and financing, which are done by or with Fairfax. Cooperation among companies is encouraged to the benefit of Fairfax in total

C l t d i ti b t F i f d itComplete and open communication between Fairfax and its subsidiaries is an essential requirement at Fairfax

Share ownership and large incentives are encouraged p g gacross the Group

Fairfax head office will always be a very small holding d t ti

4

company and not an operating company

Guiding Principles

Values

Guiding Principles

Honesty and integrity are essential in all of our relationships and will never be compromisedWe are results-oriented — not political pWe are team players — no "egos”. A confrontational style is not appropriate. We value loyalty — to Fairfax and our colleaguescolleaguesWe are hard working but not at the expense of our families We always look at opportunities but emphasize downside

t ti d l k f t i i i l f it lprotection and look for ways to minimize loss of capitalWe are entrepreneurial. We encourage calculated risk-taking. It is all right to fail but we should learn from our mistakes

5

We will never bet the company on any project or acquisition We believe in having fun — at work!

Financial ResultsFinancial Results

2006 2007 2008 2009

Book Value per Share 150$ 230$ 278$ 370$

Growth in Book Value per Share 53% 21% 33%Growth in Book Value per Share 53% 21% 33%

Common Shareholders'Equity (billions) 2.7$ 4.1$ 4.9$ 7.4$

Investments per Share 1,076$ 1,141$ 1,064$

Earnings per Share (diluted) 58.38$ 79.53$ 43.75$

6

2008-2009 Change in Book Value per Share

61%

41%

37%

36%

36%

36%

35%

33%

32%

31%

30%

30%

30%

28%

27%

25%

24%

23%

23%

22%

22%

9% % %19 18 18%

15%

14%

12%

12%

9% 7% 7% 6% 5% 4% 2%

0%

%)

(1%

(7%)

(12%

)

%)

(30%

(39%

)

7SOURCE: Dowling & Partners. Fairfax calculated using the same methodology as Dowling & Partners, based on company data

(95%

)

U.S. P&C Insurance Companies 5-Year BVPS and Share Price5 Year BVPS and Share Price

5-Year Compound Annual Growth Rate2004-2009

BVPS Share PriceBVPS Share Price

1 Fairfax(1) 17.8% 15.2%2 WR Berkley 15.6% 3.3%3 QBE Insurance Group 12.8% 10.8%4 Loews 12.7% 9.2%5 ACE Ltd. 12.5% 3.3%6 Chubb 12.4% 5.0%7 Leucadia National 11.4% 0.5%8 R i R 11 4% 0 4%8 RenaissanceRe 11.4% 0.4%9 Markel Corp 10.9% (1.4%)

10 Travelers 10.9% 6.1%11 PartnerRe 10.4% 3.8%12 Berkshire Hathaway 8 6% 2 4%12 Berkshire Hathaway 8.6% 2.4%13 Progressive 5.9% (3.2%)14 White Mountains 3.9% (12.4%)15 Hartford Financial (4.3%) (19.6%)16 AIG (44.5%) (47.9%)

8

(1) BVPS in U.S. dollars. Share price in Canadian dollars.(2) In Canadian dollars.

( ) ( )

S&P 500 1.6% (1.7%)

TSX (2) 9.1% 4.9%

Fairfax Long Term PerformanceFairfax Long Term Performance

Compound Annual Growth Rate to 2009Compound Annual Growth Rate to 2009

Book Value Per Share 5 Y 10 Y 15 Y 24 Y5 Years 10 Years 15 Years 24 Years

Ranking 1 12 1 1Fairfax 17.8% 9.0% 18.0% 25.7%

Number of Companies 16 16 14 10

S&P 500 1.6% 4.5% 5.8% 5.5%TSX 9.1% 6.1% 5.8% 4.7%

9For Fairfax: BVPS in U.S. dollars.

For TSX: In Canadian dollars.

Fairfax Long Term PerformanceFairfax Long Term Performance

Compound Annual Growth Rate to 2009Compound Annual Growth Rate to 2009

Share Price5 Years 10 Years 15 Years 24 Years5 Years 10 Years 15 Years 24 Years

Ranking 1 13 5 1Fairfax 15.2% 5.3% 12.8% 22.3%

Number of Companies 16 16 14 10

S&P 500 (1.7%) (2.7%) 6.1% 6.5%TSX 4.9% 3.4% 7.1% 5.0%

10

For Fairfax: Share price in Canadian dollars.

For TSX: In Canadian dollars.

2009 Subsidiary Financial Results2009 Subsidiary Financial Results

Combined Net Return on Ratio Earnings Avg. Equity

Northbridge 105 9% 92 7 0%Northbridge 105.9% 92 7.0%

Crum & Forster 104.1% 213 17.7%

OdysseyRe 96.7% 487 15.1%

Fairfax Asia 82.6% 38 13.3%Fairfax Asia 82.6% 38 13.3%

11

2009 Underwriting Results2009 Underwriting Results

NorthbridgeCrum & Forster OdysseyRe ConsolidatedNorthbridge Forster OdysseyRe Consolidated

Combined Ratio 105.9% 104.1% 96.7% 99.8%

2006-2009

% Change InIncrease In

Expense Ratio% Change In Net Premiums

Written

Expense Ratio Percentage Points (Including ULAE)

Northbridge (8 3%) 4 6%Northbridge (8.3%) 4.6%

Crum & Forster (40.1%) 8.5%

12

OdysseyRe (13.4%) 1.4%

Subsidiary Growth in Book Value Per ShareBook Value Per Share

2001-2009Compound Annualp

Growth Rate

Northbridge 18.6%

Crum & Forster 19.0%

OdysseyRe 22.7%

(1) 2002-2009

Fairfax Asia (1) 24.8%(1) 2002-2009

Four excellent companies:Underwriting cultureC

13

Conservative reservingTotal return investing

Investing for Long Term Growth –Globallyy

Fairfax AsiaFirst Capital Insurance – 100% (Singapore)First Capital Insurance 100% (Singapore)Falcon Insurance – 100% (Hong Kong)ICICI Lombard General Insurance – 26% (India)F l I Th il d 41% (Th il d)Falcon Insurance Thailand – 41% (Thailand)Alltrust Insurance Company – 15% (China)

EuropeAdvent Capital – 100% (UK)Polish Re – 100% (Poland)

Middle EastMiddle EastArab Orient Insurance – 20% (Jordan)Alliance Insurance – 20% (Dubai)

L ti A iLatin AmericaFairfax Brasil – 100% (Brazil)

14

Purchase of ZenithPurchase of ZenithCombined

RatioRatioQ1 2010 123.1%2009 112.4%

To December 31, 200910 Years 89%20 Years 94%30 Years 95%

Zenith to be run independently by Stanley Zax and his management team, with investments centralized at FairfaxCombination of excellent long term underwriting track

15

Combination of excellent long term underwriting track record (Zenith) with investment expertise (Fairfax)

Free Cash Flow – Operating CompaniesFree Cash Flow Operating Companies

Dividend Capacity At December 31, 2009

( illi )Northbridge 263$

(millions)

Crum & Forster 164$

OdysseyRe 351$

Total 778$

16

Importance of FloatImportance of Float

Average Float g(Operating

Companies)

1986 $22 million

2009 $9 5 billion (year-end $9 8 billion)

Average cost of float: 2 3%

2009 $9.5 billion (year end $9.8 billion)

Average cost of float: 2.3%

Total float at year-end 2009: $11.6 billion (including runoff) $579 / share

17

(including runoff) $579 / share

Importance of FloatImportance of Float

Year End 2009Year-End 2009Billions Per Share

Total Float 11 6$ 579$Total Float 11.6$ 579$

Common Shareholders' Equity 7.4$ 370$

Net Debt 2.3$ 115$

Total Investment Portfolio 21.3$ 1,064$

Investment Portfolio in 1985 $24 million 5$

18

Pre-Tax Interest and Dividend IncomePre Tax Interest and Dividend Income

$ Millions Per Share

1985 3 70¢

2009 713 39$

2009 - Adjusted for "Munis" 822 40$

19

Pre-Tax Realized & Unrealized GainsPre Tax Realized & Unrealized Gains

Per Share$ Amount

1985 million 10¢

2009 billion 110$ 2.0

0.5

Cumulative Gains billion10.2

20

Long Term Common Stock HoldingsLong Term Common Stock Holdings

At December 31, 2009

Shares Market UnrealizedOwned Value Gains

( ) ( ) ( )(millions) (millions) (millions)Wells Fargo 20.0 540$ 152$

Johnson & Johnson 7 6 488$ 25$Johnson & Johnson 7.6 488$ 25$

US Bancorp 15.9 356$ 98$

Kraft Foods 10 7 291$ 6$Kraft Foods 10.7 291$ 6$

Total 1.7$ billion 281$

21

Other Than Temporary Impairments and Mark-to-Market and Realized Lossesand Mark to Market and Realized Losses

2008/20092008/2009(billions)

$Other Than Temporary Impairments 1.4$

Mark-to-Market Losses 0.7$

Realized Losses 0.3$

Total 2.4$ $

22

Investment PerformanceInvestment Performance

Hamblin Watsa Investment Performance

5 Years to 10 Years to 15 Years toD 31 '09 D 31 '09 D 31 '09Dec. 31 '09 Dec. 31 '09 Dec. 31 '09

Common Stocks (with Equity Hedging) 17.1% 19.9% 18.3%Common Stocks 5.9% 13.9% 14.3%

S&P 500 0 4% (1 0%) 8 0%S&P 500 0.4% (1.0%) 8.0%

Bonds 11.8% 12.1% 10.6%BofA Merrill Lynch U.S. Corporate Index 4.5% 6.4% 6.8%

23

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.

Fairfax - Yesterday and TodayFairfax Yesterday and Today1985 2009

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

Net Premiums Written 12.2 4,286

Net Earnings (0.6) 857g ( )

Investment Portfolio 23.9 21,273

Common Shareholders' Equity 7.6 7,392

Per Share GrowthBook Value 1 52$ 370$ 243xBook Value 1.52$ 370$ 243x

Share Price (C$) 3.25$ 410$ 126x

Investments 4.80$ 1,064$ 222x

24

Net Premiums Written 2.44$ 214$ 88x

Fairfax Employee Share Purchase PlanFairfax Employee Share Purchase Plan

To December 31, 2009SiSince

Inception5 Years 10 Years 15 Years 20 Years 22 Years

CompoundAnnual Return 31% 18% 13% 18% 19%

For an employee earning Cdn $40,000 Participation at maximum 10% of salary since inceptionShares owned at December 31, 2009: 2,805Value: Cdn $1.1 million

25

Fairfax Focused on the Long TermFairfax Focused on the Long Term

Quarterly Earnings Not Important2009

Earnings (Loss) Per Share

Book Value Per Share

At December 31, 2008 n/a 278$

Fi t t $ $First quarter (3.55)$ 255$

Second quarter 15.56$ 316$

Third quarter 30.88$ 372$

Fourth quarter 1.65$ 370$

26

q

Financial StrengthFinancial Strength

2004 2005 2006 2007 2008 2009Holdco Cash andMarketable Securities $567 $559 $767 $963 $1,555 $1,243

Year End Year End Year End2003 2005 2009

Subsidiary Debt 784 933 903Subsidiary Debt 784 933 903 Holdco Obligations 1,587 1,610 1,411 Total Debt 2,371 2,543 2,314 Holdco Cash and Marketable Securities 410 559 1,243 N t D bt 1 961 1 984 1 071Net Debt 1,961 1,984 1,071

Total Equity & Minority Interests 2,896 3,396 7,737

Net Debt / Net Total Capital 40 4% 36 9% 12 2%

27

Net Debt / Net Total Capital 40.4% 36.9% 12.2% Total Debt / Total Capital 45.0% 42.8% 23.0%

Can Government Stimulus Work Long Term?Long Term?

“ I have never known much good done by those who affected to trade for the public good.”

Adam Smith (Wealth of Nations) 1772

“ Too much public sector borrowing and government directed investment could only crowd out private sector borrowing and risk taking ”

“ Stimulus plans only enhance future incomes when they move

risk taking.Margaret Thatcher (Prime Minister of the U.K.) 1979

“ Stimulus plans only enhance future incomes when they move current resources from less productive private uses to more productive government uses – a daunting challenge to say the l t ”

28

least.”Eugene Fama (Professor, University of Chicago) 2009

Can the Japanese Experience Be Repeated in the U.S.?Repeated in the U.S.?

Government Debt as a % of GDP, Nominal GDP, Long Term Government Interest Rates and Nikkei Stock Average

1989-2009Index

160%

180%

200%

120

140

120%

140%

80

100

GDP

Base = 100

60%

80%

100%

40

60 % of G

0%

20%

40%

0

20

29Source: Hoisington Investment Management and Bank of Japan

0%01989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

Nominal GDP Nikkei Interest Rates Gov't Debt % GDP

The U.S. Experience in the 1930’sThe U.S. Experience in the 1930 s Government Debt as a % of GDP, Nominal GDP,

Long Term Treasury Rates and S&P 500 1929-1941Index

50%

60%

120

140

40%

80

100

DP

Base = 100

20%

30%

40

60 % of G

D

10%20

40

30

0%01929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941

Nominal GDP S&P 500 Interest Rates Gov't Debt % GDPSource: Hoisington Investment Management and U.S. Commerce Department

Deleveraging Has BegunDeleveraging Has Begun - JustDeleveraging Has BegunDeleveraging Has Begun JustU.S. Total Private Sector(1) Debt and Total Private Sector Debt/GDP

1953-2009

250%

300%

4,000

5,000

s)

200%2,000

3,000

ange

($ Billions

150%

0

1,000

r‐Over‐Ye

ar Cha

100%-1,000

Year

31Source: Gluskin Sheff and Hoisington Investment Management

50%-2,0001953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009

Total Private Sector Debt (YOY Change) Total Private Sector Debt/GDP(1) Household, business and financial sector

Long Term U.S. Treasury Rate 1872-20091872 2009

Long Term Treasury Rate1872 - 2009

12%

14%

Onset of Iron and

Fall of Berlin Wall

8%

10%Onset of Iron and Bamboo Curtains

4%

6%

Average = 4.24%

2%

4%

Global marketGlobal market Restricted market

32Source: Hoisington Investment Management

0%1872 1889 1906 1923 1940 1957 1974 1991 2008

marketGlobal market Restricted market

9

High Yield SpreadsHigh Yield Spreads

2 000

1-10 Year High Yield Spreads

1,600

1,800

2,000

ries

1,200

1,400

U.S

. Tre

asur

600

800

1,000

d (b

ps) o

ver

200

400

600

Spre

a

33Source: Merrill Lynch

01996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Investment Grade SpreadsInvestment Grade Spreads

800

1-10 Year Investment Grade Spreads

600

700

ries

400

500

600

U.S

. Tre

asur

300

400

d (b

ps) o

ver

100

200

Spre

a

34Source: Merrill Lynch

01996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

U.S. Real Housing Price Index 1890-20091890 2009

U.S. Real Housing Price Index1890 - 2009

200

220

160

180

120

140

Average = 103 6

1989124.21979

122.11894 123.9

80

100Average = 103.6

35Source: Hoisington Investment Management and Robert Shiller, Yale University

601890 1907 1924 1941 1958 1975 1992 2009

Fairfax Investment Portfolio Positioned For Income & Capital GainsPositioned For Income & Capital Gains

2007 2008 2009Cash and Short Term 21% 32% 17%Cash and Short Term 21% 32% 17%

Government Bonds 50% 16% 14%Municipal Bonds 1% 20% 26%Municipal Bonds 1% 20% 26%Corporate Bonds 4% 7% 14%Total Fixed Income 55% 43% 54%

Yield 4.2% 6.9% (1) 6.5% (1) Yield 4.2% 6.9% 6.5%

Common Stocks 17% (2) 22% 27% (2)

Other Investments 7% 3% 2%% % %Total 100% 100% 100%

Total Investment Portfolio (3) $19.1B $20.0B $21.3B

36

(1) Pre-tax equivalent yield(2) 2007, approximately 85% hedged and 2009, approximately 30% hedged(3) Includes holding company cash and marketable securities

Well Positioned for a Turn in the CycleWell Positioned for a Turn in the Cycle

3,000Northbridge (C$)

2,500

Northbridge (C$)

Odyssey Re

Crum & Forster

1 500

2,000

ums

Writ

ten

1,000

1,500

Gro

ss P

rem

iu

500

G

Soft Market Hard Market

37

01999 2000 2001 2002 2003 2004 2005

Fairfax’s Strengths Demonstrated Over 24 Years

1. Operations – Disciplined operating management focused on underwriting profitability and prudent reserving

Demonstrated Over 24 Years

underwriting profitability and prudent reservingP&C Insurance Operations

• Canada – leading commercial insurance operation• United States – large commercial operation across theUnited States – large commercial operation across the

country• Asia – Hong Kong, Singapore, Thailand, China and largest

private operation in Indiap p• South America – Fairfax Brasil• Middle East – Dubai and Jordan• Eastern Europe – Polandp

P&C Reinsurance Operations• Worldwide – Top 5 broker reinsurer in the U.S., top 20 in

38

Worldwide Top 5 broker reinsurer in the U.S., top 20 in the world

Fairfax’s StrengthsDemonstrated Over 24 Years

2. Investments – Long term, value-oriented philosophy

Demonstrated Over 24 Years

Worldwide• Stocks• Bonds• Distressed debt

Wh “ l ” il• Wherever “value” prevailsExcellent long term track record

39

Ready for the Next Decade -Building on Fairfax’s Strengths

Our guiding principles have remained intact

Building on Fairfax s Strengths

Excellent long term performanceDemonstrated strengths

Strong operating subsidiaries focused on underwriting profitability and prudent reservingConservative investment management providingConservative investment management providing excellent long term returns

Well positioned for the futureWell positioned for the futureFair and friendly Fairfax culture

40