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Fairfax India Holdings Corporation TSX Stock Symbol : FIH.U TORONTO , July 29 , 2021 News Release NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES SECOND 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 $ 224.9 million in the second quarter of 2021 ( $ 1.43 net earnings per diluted share ) , compared to net earnings of $ 52.4 million in the second quarter of 2020 ( $ 0.35 net earnings per diluted share ) , reflecting increased net realized and unrealized gains on investments , partially offset by increased performance fees , provision for income taxes , and net foreign exchange losses . Highlights for the second quarter of 2021 included the following : • Net change in unrealized gains on investments of $ 184.2 million , principally from an increase in market prices of the company's investments in the public companies CSB Bank ( $ 111.4 million ) , Fairchem Organics ( $ 85.3 million ) , IIFL Securities ( $ 32.5 million ) , 5paisa ( $ 16.1 million ) , and Other Public Indian Investments ( $ 14.1 million ) , and an increase in the fair values of the company's investments in the private companies Sanmar ( $ 107.2 million ) and NSE ( $ 28.1 million ) , partially offset by a decrease in market prices of the company's investments in the public companies IIFL Finance ( $ 34.0 million ) and IIFL Wealth ( $ 11.2 million ) . As the gain on Privi Speciality ( formerly Fairchem Speciality ) has now been realized , the net change in unrealized gains on investments also included a reversal of unrealized gains on Privi Speciality of $ 191.0 million and a reversal of unrealized losses on the Privi Speciality written call option of $ 26.8 million recorded in prior periods . • Net realized gains on investments of $ 134.6 million primarily related to the sale of the company's 48.8 % equity interest in Privi Speciality on April 29 , 2021 for 12.2 billion Indian rupees ( $ 164.8 million ) resulting in a realized gain since inception of $ 132.3 million . • • On April 29 , 2021 the company purchased an additional 2,330,757 common shares in Fairchem Organics for 1.3 billion Indian rupees ( $ 18.1 million ) , increasing its ownership from 48.8 % to 66.7 % . On May 11 , 2021 the company used proceeds from the sale of Privi Speciality to repay the remaining $ 50.0 million of indebtedness that was outstanding under the company's secured $ 550.0 million term loan facility . • 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 $ 98.2 million was accrued to the benefit of Fairfax Financial Holdings for the period from January 1 , 2021 to June 30 , 2021. The performance fee , if any , will only be finally determined on December 31 , 2023 at the end of the three year measurement period . • At June 30 , 2021 common shareholders ' equity was $ 2,876.3 million , or book value per share of $ 19.26 , compared to $ 2,446.9 million , or book value per share of $ 16.37 , at December 31 , 2020 , an increase of 17.7 % ( an increase of 21.7 % prior to accounting for the performance fee recorded during the first six months of 2021 ) , primarily related to net earnings during the first six months of 2021 , partially offset by 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 $ 300 million . The company continued to buy back shares under its normal course issuer bid and in the first six months of 2021 purchased for cancellation 693,078 subordinate voting shares at a net cost of $ 8.1 million ( $ 11.71 per subordinate FAIRFAX INDIA HOLDINGS CORPORATION 95 Wellington Street West , Suite 800 , Toronto , Ontario , M5J 2N7 Telephone : 416-367-4755