Fairfax Announces Pricing of Senior Notes Offering

• Fairfax Financial Holdings Limited priced a private offering of US$750,000,000 in senior notes due 2056.
• The notes carry a fixed interest rate of 6.200% per annum and are unsecured senior obligations.
• Net proceeds are designated for general corporate purposes, with closing expected around June 8, 2026.
• The offering targets qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S.
• This follows a CAD 650 million senior notes offering completed in February 2026 and the May 29, 2026 completion of a US$1.91 billion sale of a 23.1% stake in Poseidon Corp.
• The company also executed an early redemption of CAD 450 million in 4.70% senior notes due December 2026 on May 29, 2026.

• The US$750 million note issuance is a direct follow-up to previously announced capital management activities and aligns with the company's stated need to fund the Kennedy Wilson acquisition (up to US$1.65 billion commitment) and optimize its balance sheet.
• The 6.200% coupon is elevated relative to recent market conditions, but Fairfax has a long history of raising capital opportunistically and deploying it into higher-yielding insurance float or strategic investments. The cost of debt is manageable given the company's strong operating cash flows and record FY 2025 net earnings of $4.77 billion.
• The timing coincides with the completion of the Poseidon divestiture, which generated US$1.91 billion in proceeds and a US$837 million pre-tax gain. This provides ample liquidity, making the new debt issuance a routine capital structure adjustment rather than a distress-driven raise.
• The news is fully consistent with the company's Q1 2026 transcript guidance, which explicitly outlined Q2 2026 closings for Poseidon, Eurolife, and Kennedy Wilson, alongside ongoing capital redeployment.
• No unexpected surprises or fundamental shifts in the business model are present. The market likely priced in the need for additional liquidity ahead of the Kennedy Wilson closing.

• Fairfax Financial Holdings Limited is a diversified holding company primarily engaged in property and casualty insurance, reinsurance, and investment management.
• Flagship operations include Northbridge Financial Corporation, Crum & Forster, Gulf Insurance Group, Bryte Insurance, and Wentworth Insurance Company.
• The company operates a decentralized model with experienced local management teams focused on underwriting discipline and profitable premium growth.
• The investment management arm manages a large portfolio of public and private equities, fixed income, and strategic minority stakes in companies like Poseidon Corp., Eurolife, and Farmers Edge.
• The company's strategy emphasizes capital preservation, opportunistic share repurchases, and disciplined deployment of float into higher-yielding assets.