UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
| For the month of: April 2023 | Commission File Number: 001-31556 |
FAIRFAX
FINANCIAL HOLDINGS LIMITED
(Name of Registrant)
95
Wellington Street West
Suite 800
Toronto, Ontario
Canada M5J 2N7
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F ¨ | Form 40-F x |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
EXHIBIT INDEX
| Exhibit | Description of Exhibit | |
| 99.1 | Press Release dated April 18, 2023 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| FAIRFAX FINANCIAL HOLDINGS LIMITED | |||
| Date: April 18, 2023 | By: | /s/ Derek Bulas | |
| Name: | Derek Bulas | ||
| Title: | Vice President and Chief Legal Officer | ||
Exhibit 99.1
FAIRFAX News Release
TSX Stock Symbol: FFH and FFH.U
TORONTO, April 18, 2023
PRELIMINARY REPORT ON EFFECT OF IFRS 17 ON COMMON SHAREHOLDERS’ EQUITY
(Note: All dollar amounts in this news release are expressed in U.S. dollars except as otherwise noted.)
Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) announces its preliminary, not finalized, unaudited estimate of the effect of IFRS 17, the new accounting standard which was required to be adopted on January 1, 2023 for insurance contracts, on common shareholders’ equity as at December 31, 2022. The finalized information will be presented in the Company’s 2023 first quarter unaudited financial results, which will be released after the close of markets on Thursday, May 11.
The Company’s preliminary estimate of the effect of IFRS 17 on common shareholders’ equity is that it will increase common shareholders’ equity as at December 31, 2022 by approximately $2.2 billion (an increase in book value per share of approximately $94), primarily reflecting the introduction of discounting net claims reserves (approximately $4.7 billion, partially offset by a risk adjustment of approximately $1.7 billion for uncertainty related to the timing and amount of cash flows arising from non-financial risks), partially offset by the tax effect of the measurement changes and other of approximately $0.8 billion.
Although IFRS 17 brings considerable changes to the measurement, presentation and disclosure of the Company’s insurance and reinsurance operations, it will not affect the Company’s underwriting strategy, its prudent reserving, management’s use of the traditional performance metrics of gross premiums written, net premiums written and combined ratios, or the amount of the Company’s cash flows.
Fairfax is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.
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| For further information contact: | John Varnell, Vice President, Corporate Development at |
| (416) 367-4941 |
close the bracket opened with “approximately”, presumably after “incurred” (and before the comma).
FAIRFAX FINANCIAL HOLDINGS
LIMITED
95 Wellington Street West, Suite 800, Toronto, Ontario, M5J 2N7 Telephone: 416-367-4941 Facsimile: 416-367-4946