Page 1

Fairfax India Holdings Corporation TSX Stock Symbol : FIH.U TORONTO , April 29 , 2021 News Release NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES FIRST QUARTER FINANCIAL RESULTS ( Note : All dollar amounts in this news release are expressed in U.S. dollars except as otherwise noted . The financial results are prepared using the recognition and measurement requirements of International Financial Reporting Standards , except as otherwise noted , and are unaudited . ) Fairfax India Holdings Corporation ( TSX : FIH.U ) announces net earnings of $ 255.4 million in the first quarter of 2021 ( $ 1.66 net earnings per diluted share ) , compared to a net loss of $ 253.8 million in the first quarter of 2020 ( $ 1.67 net loss per diluted share ) , reflecting increased net unrealized gains on investments and decreased net foreign exchange losses , partially offset by increased performance fees and provision for income taxes . Highlights for the first quarter of 2021 included the following : • • Net change in unrealized gains on investments of $ 327.6 million , principally from an increase in market prices of the company's investments in the public companies IIFL Finance ( $ 196.6 million ) , Privi Speciality ( formerly Fairchem Speciality ) ( $ 85.9 million ) , IIFL Wealth ( $ 36.4 million ) , CSB Bank ( $ 15.4 million ) , Fairchem Organics ( $ 10.2 million ) , and Other Public Indian Investments ( $ 12.6 million ) , and an increase in the fair value of the company's investment in the private company Seven Islands ( $ 4.0 million ) , partially offset by a decrease in the fair value of the company's investment in the private company NCML ( $ 6.4 million ) and a decrease in market price of the company's investment in the public company 5paisa ( $ 4.6 million ) . • On February 26 , 2021 the company completed its previously announced offering of $ 500.0 million in aggregate principal amount of 5.0 % Unsecured Senior Notes due February 26 , 2028. On March 1 , 2021 the net proceeds from this offering were used to repay $ 500.0 million of indebtedness that was outstanding under the company's secured $ 550.0 million term loan facility maturing on June 28 , 2021 . In accordance with the Investment Advisory Agreement , which provides for the payment of a performance fee of 20 % of the increase in book value per share in excess of a hurdle rate of 5 % per annum , a performance fee of $ 56.0 million was accrued to the benefit of Fairfax Financial Holdings for the period from January 1 , 2021 to March 31 , 2021. The performance fee , if any , will only be finally determined on December 31 , 2023 at the end of the three year measurement period . • On April 29 , 2021 the company completed the sale of its 48.8 % equity interest in Privi Speciality to certain affiliates of Mahesh P Babani and D B Rao for 12.2 billion Indian rupees ( $ 164.8 million at current exchange rates ) . As a result , the company expects to record a realized gain since inception on its investment in Privi Speciality of approximately $ 134 million at current exchange rates , representing a 27 % internal rate of return , due in large part to the visionary leadership of Mahesh , whom we want to thank and wish continued success in the future . • At March 31 , 2021 common shareholders ' equity was $ 2,691.2 million , or book value per share of $ 17.98 , compared to $ 2,446.9 million , or book value per share of $ 16.37 , at December 31 , 2020 , an increase of 9.8 % ( an increase of 12.1 % prior to accounting for the performance fee recorded during the first three months of 2021 ) , primarily related to net earnings during the first three months of 2021 , partially offset by a commitment under the company's automatic share purchase plan recorded against common shareholders ' equity and unrealized foreign currency translation losses as a result of the weakening of the Indian rupee relative to the U.S. dollar . Fairfax India remains in strong financial health , with undeployed cash and marketable securities of approximately $ 210 million . FAIRFAX INDIA HOLDINGS CORPORATION 95 Wellington Street West , Suite 800 , Toronto , Ontario , M5J 2N7 Telephone : 416-367-4755