Fairfax Financial - Other Investments

Other Investments

• Fairfax Asia

Fairfax Asia Limited ("Fairfax Asia") is the fastest growing insurance line of business within the Fairfax Group.

• Fairfax Brasil

Fairfax Brasil Seguros Corporativos S.A. ("Fairfax Brasil") is a Brazilian property and casualty insurance, headquartered in São Paulo.

• Polish Re

Polish Re (Polskie Towarzystwo Reasekuracji Spółka Akcyjna) based in Warsaw, Poland, writes reinsurance business in Central and Eastern Europe (100%-owned by Fairfax).

• Advent Capital (Holdings) PLC

Advent Capital, based in London, in the U.K., provides specialty property and casualty insurance, operating through Syndicates 780 and 3330 at Lloyd’s London (100%-owned by Fairfax).

• Alliance Insurance

Fairfax owns a 20% stake in Alliance Insurance (Dubai).

• Alltrust Insurance Company of China

Fairfax owns a 15% stake in Alltrust Insurance Company in China.

• General Fidelity Insurance Company

On August 17, 2010, Fairfax purchased 100% of General Fidelity Insurance Company (GFIC – a runoff company), for approximately $241 million. GFIC will be under RiverStone, Fairfax runoff group.

• Gulf Insurance Co.

On September 28, 2010, Fairfax purchased 41.3% of Gulf Insurance Co. (a Kuwait insurance company), for approximately $217 million.

• First Mercury Financial Corporation

On October 28, 2010, Fairfax announced to acquire all of the outstanding shares of First Mercury common stock for approximately $294 million. First Mercury will become the excess and surplus lines platform for Crum & Forster.

• The Pacific Insurance Berhad

Pacific Insurance is headquartered in Kuala Lumpur, Malaysia. On December 3, 2010, Fairfax announced to acquire Malaysian insurer, The Pacific Insurance Berhad, for approximately US$64 million. Pacific will join the Fairfax Asia group. (The deal is expected to close in the 1st Q. of 2011)

• Jordan Kuwait Bank

Odyssey Re, a wholly owned subsidiary of Fairfax owns a 4.8% stake of the Jordan Kuwait Bank.

• ICICI Lombard

ICICI Lombard is the largest private general insurance company in India, with a 12.5% market share. ICICI Bank, which owns the 74% of ICICI Lombard not owned by Fairfax, requested Indian government approval to sell a 5.9% stake in itself (ICICI Financial Services Ltd.) for $600 million to a group of private equity investors. ICICI Bank was looking at valuing ICICI Holdings at $10 billion.Goldman Sachs and other foreign funds were interested in buying the stake. Fairfax is carrying the minority interest in ICICI Lombard, on its balance sheet at $60 million, which appears to be a significant discount to intrinsic value (The 26% stake in ICICI Lombard is via Fairfax Asia, which is owned 100% by Fairfax Financial -- which also includes a 29.5% economic interest owned by Odyssey Re Holdings Corp).

• Overstock.com

Fairfax holds a 16.5% stake in online retailer Overstock.com (Chou Associates Management Inc. holds a 9.9% stake). Patrick M. Byrne, the CEO, chairman and owner of Overstock comes from a family of value investors. He is the son of John J. Byrne, former chairman of Berkshire Hathaway's GEICO insurance subsidiary and White Mountains Insurance Group.

• Chou Associates Fund

In late 2002, Fairfax invested $50 million in Chou Associates Fund and another $50 million in the first half of 2003 (Fairfax apparently owns more than 26% of Chou Associates Fund).