Fairfax Financial Holdings Limited, Annual General Meeting, Apr 20, 2023

Speaker 1: which had never happened before. Rather than ask him about this, the captain stood at the back of the room and listened to Jones' pet.

At the back of the room and listen to John's pitch.

Speaker 1: So Jones explained the basics of GI insurance to the new recruits. Then he said, if you have GI insurance and go into battle and are killed, the government has to pay $200,000 to your beneficial.

So John explained the basics of GI insurance of the New Records. Then he said if you have Gi insurance and go into Battle and I killed the government has to pay $200000 to your beneficiaries.

Speaker 1: 200,000 to your beneficiaries. If you don't have GI insurance and you get go into battle and are killed

200000 beneficiaries, if you don't have Gi insurance and you get go into battle and are killed.

Speaker 1: The government has only to pay a maximum of $6,000.

The government has only to pay a maximum of $6000.

Speaker 1: Now he concluded, which bunch do you think they're going to send into battle first?

Now he concluded which bunch do you think they're going to send into battle first.

[laughter] nah.

Speaker 1: I gotta tell you, these jokes over the years have come from Benoit Loganard, who looks after all of these events and also the AGM, all the boots and all of that with Benoit's idea.

I got to tell you they've jokes over the years have come from but no logging now then who looks after all of these events and at and also the AGM all of the boats and all of that with the idea.

Speaker 1: Over the past weekend, we had quite a scare. We know that cardiac medical emergency and as in hospital.

Over the past weekend, we had quite a square quite a scare.

We don't have a cardiac medical emergency and is in hospital.

Speaker 1: He looked after immediately. They put a scent to open a blockage. He is stable doing well. All things considered. But the doctors have put them in the sedation and they're taking it now out. And it's all removed now. And we're expecting we know to have a full recovery. Please keep the note in your prayers. Thank you. Thank you.

He has looked at they immediately they put a stent to open a blockage. He is stable doing well all things considered.

But the doctors have put them under sedation and Theyre, taking it now out and and it's all removed now and we are expecting to.

To have a full recovery. Please keep window then you're pres. Thank you.

Okay.

Speaker 1: So it's more than a year now since Russia invaded Ukraine in February 2022. As I mentioned last year, our presidents are keeping our people safe, and they're our heroes working under extraordinarily difficult conditions.

So it's more than a year now since Russia invaded Ukraine in February 2022 as I mentioned last year, our present that keeping our people safe and their our heroes working on the extraordinarily difficult conditions you know we're the largest.

Speaker 1: You know we are the largest insurance company in Ukraine. I want to just show you

Insurance company in Ukraine.

I want to just show you our heroes.

Speaker 1: You can see from Universe Sala, Oleski, Andre from ARX, and from Colonnade, you got Slava. Give them a nice round of applause. Applause Now you will be interested to know. You will be interested to know.

You can see from Univar universality Olesky Andre from air racks and from Colonnade, you've got Slava give them a nice round of applause.

[noise] now you will be interested to know that the help and support that they have received from all our companies in every part of the world, particularly colonnade, which is a N the eastern European.

Speaker 1: that the help and support that they've received from all our companies in every part of the world, particularly Colonnade, which is in the Eastern European sector, and from Peter Chacquari, who leads the team.

And a sector and from Peter Chuck Whobrey, who leads the team.

Speaker 1: It's been exceptional. It hasn't been directed by me or any of us in the head office. It's just our culture coming to bear. And it reminded us that we are all one big family.

Yeah.

It's been exceptional it hasn't been directed by me or any of US in head office is just our culture coming to bear and and it reminded us that we are all one big family.

Speaker 1: Please keep our Ukrainian brothers and sisters in your thoughts and prayers as we stand beside them united in our support.

Please keep our Ukrainian brothers and sisters in your thoughts and prayers.

As we stand beside them, United and our support.

Speaker 1: In the last three years, particularly of, we have shown our fair and friendly culture, has shown brightly. As you know, we had no layoffs in our insurance and re-insurance companies during COVID-19. All 16,500 of our employees.

In the last three years, particularly.

We've shown our fair and friendly culture has shone brightly as you know we had no layoffs in our insurance and reinsurance companies. During COVID-19, all 16500 of our employees.

Speaker 1: Work from home, we continue to provide outstanding service. We treat our employees as one big family and we do not want to have layoffs. You're seeing layoffs of 5%, 10% of the staff. We never want to have that happen to our company. And because we're decentralized, we think we can manage it. But it's very important for us.

Work from home, we continue to provide outstanding service.

We treat our employees is one big family and we do not want to have layoffs, you're seeing layoffs of 5%, 10% is that we never want to have that happened to our company.

And because we're decentralized.

We think we can manage it but its very important for us.

Speaker 1: to keep our cultures strong, not to have layoffs like we're saying in the economy these days. Well, Fairfax and all our companies have been a great place to work.

To keep our culture strong not to have layoffs like we're seeing in the economy. These days.

Fairfax and all our companies have been a great place to work.

Speaker 1: We do not tolerate or condone any form of racism, discrimination. We still know that it has not been eradicated in society, even in 2023. I told you last year we have created the Black Initiative Action Committee at Fairfax under the chairmanship of Craig Bennett, the Chief Financial Officer of Northbridge, to make our company even more attractive for people from the Black community and other minorities.

We do not tolerate a con condone any form of racism discrimination, we still know that it has not been eradicated in society.

Even in 2023 I told you last year, we have created the Black initiative action Committee at Fairfax.

Under the chairmanship of Greg Bennett, the Chief Financial Officer of Northbridge to make our company even more attractive for people from the black community and other minorities, we are making headway and Fairfax should be a leading example of how one company can make a difference some of the examples of initiatives that have been taken at our companies.

Speaker 1: We are making a headway and Fairfax should be a leading example. How one company can make a difference. Some of the examples of initiatives that have been taken at our company's worldwide include expanding internship programs with a diversity and inclusion lens.

Worldwide include expanding internship programs with a diversity and inclusion lens.

Speaker 1: Reversement mentoring programs where senior members are mentored by a colleague who is different from a diversity and inclusion perspective and on and on and on many many many programs all aimed at creating a more inclusive workplace and many which are included in our ESG report

Reverse mentoring programs, where senior members of mentored by our colleague who is different from a diversity and inclusion perspective and on and on and on many many many programs all aimed at creating a more inclusive workplace and many of which are included in our ESG report.

Speaker 1: Now, we have a Fairfax Innovation Award, which was created in 2017. Some of you will wonder how we create. We don't have a central area for innovation. It all comes from our individual companies. And so we created this award for the operating companies who's innovation has had a transformative and positive impact on the organization.

Now the.

We have a fair Franks Innovation award, which was created in 2017. Some of you will wonder how we create but you don't have a central.

Area for innovation it all comes from my individual companies.

And so we created this award for the operating companies, who was innovation has had a transformative and positive impact on the organization. This year, an impressive 25 initiatives from 12 Fairfax companies around the world was submitted.

Speaker 1: This year an impressive 25 initiatives from 12 Fairfax companies around the world were submitted. Diverse reigns.

Diverse range of projects.

Speaker 1: And after reviewing all these submissions, Gelf Insurance Group's Auto Parts solution in Jordan has been selected as the 2022 winner.

And after reviewing all these submissions Gulf insurance groups Autopart solution in Jordan has been selected as the 2022 window.

Speaker 2: Here's the team who worked together.

[noise], yes, the team who worked together, we've just announced yesterday that Gulf insurance is going to be a quite a 46% are going to be acquired by us. So we're going to have 90% reliable follow up off of a 10%.

Speaker 1: We've just announced yesterday that golf insurance is going to be acquired, the 46% are going to be acquired by us. So we're going to have 90% we'll have a follow-up offer for 10%. And these are the people who came up with it. And it's quite amazing. Just very quickly, it's a comprehensive digital marketplace.

And these are the people who came up with that and it's quite amazing just very quickly. It's a comprehensive digital marketplace that presents a unique opportunity for public users motor parts to provide his body shops car dealers insurance companies. The trade digitally auto parts are produced by <unk>.

Speaker 1: that presents a unique opportunity for public users.

Speaker 1: Motor parts providers, body shops, guide dealers, insurance companies, the trade, digits.

Speaker 1: Autoparts are produced by GIG's Jordan's average cost. They reduce the average cost per claim by 11%. Increase the number of auto part providers and the response by 30%. And here's the deal. Reduce the average number of days for customers to receive their claim payment from five days to one day.

<unk> Jordan average cards, they reduce the average cost per claim by 11% increase the number of autopart providers.

And the response by 30% and here's the deal reduced the average number of days for customers to receive their claim payment from five days to one day.

Outstanding.

Speaker 1: Since the inception of Fairfax, we've always been focused on a few things. The way we operate, the way we treat each other, and the way we help our communities. A management team and board ensure that honesty and integrity are never compromised, and that full disclosure is provided to all our stakeholders. We follow the golden rule. Treat people like you want to be treated yourself.

Since the inception of Fairfax, we've always been focused on a few things the way we operate the way we treat each other and the way we help our communities our management team and board ensure that honesty and integrity I never compromised and that full disclosures provided to all our stakeholders, we follow the Golden rule treat.

People like you want to be treated yourself, we now have 16500 employees all around the world working in a decentralized environment. Following these basic principles.

Speaker 1: We now have 16,500 employees.

Speaker 1: I'm pleased to say we posted our third ESD report, which is on our website, but we've been following these principles for, you know, almost from the time we began, right from the time we began 37 years ago. So.

I am pleased to say, we posted our third ESG report, which is on our website, but we've been following these principles fall almost from the time, we began right from the time, we began 37 years ago.

So if you look at our 2022 and I told you. This before you go back to 1985, when you say how many companies were listed in all of the exchanges and we look at particularly the United States, New York Stock Exchange Amax, NASDAQ and 1985 there was.

Speaker 1: And we look at particularly the United States, New York Stock Exchange, AMEX, NASDAQ. And 1985 there were 6,000 companies listed. At the end of 22, there were only 600 still trading, mergers, acquisitions, bankruptcy, only one 10.

6000 companies 6000 companies list.

Listed at the end of 'twenty two there were only 600 still trading mergers acquisitions bankruptcy only 110th.

Speaker 1: 600, part of 6000 survived. 90% of gun bankrupt but taken over, they no longer exist.

600, part of 6000 survived 90% have gone bankrupt, but taken over there no longer exists.

Speaker 1: So we are very blessed to be in this category that have survived. If you then say how many have thrived?

So we are very blessed to be in this category that have survived. If you then say how many have thrived and you defined thrive is 15% annual compounded return and the stock price over that 37 year out period long time, and it's only 1% or about.

Speaker 1: And it defines Thrive as 15% annual compounded return in the stock price over that 37 year period, long time. And it's only 1% or about 55 companies that

55 companies that have survived 1% 55 companies out of the 600 have done 15% compound. It. So it's a very small group and we've done 16.8, our stock price has gone up 16.8, and so we're in that 1%.

Speaker 1: 1% 55 companies out of the 600 have done 15% compounded. So it's a very small group. And we've done 16.8, our stock price is gone at 16.8. And so we're in that 1%.

Speaker 1: So we consider ourselves mightily blessed as you can imagine. But also just to remind you, we have a great culture, but it's very much performance oriented. And it's performance oriented in the long term, not in any quarter or year.

And so we consider ourselves mightily blessed as you can imagine, but also just to remind you we have a great culture, but it's very much performance oriented and its performance oriented in the long term not in any quarter or a year.

Speaker 1: And we think the next five years will be great years for Fairfax and its shareholders.

And we think the next five years will be great years for Fairfax and its shareholders.

Okay.

Speaker 1: Now just a couple of words on our management team. I've always said and to repeat, we are very blessed to have such a wonderful group of long-term shareholders, first of all, who stood by us through the ups and downs of business. And you're all here. They're people here with 20 years, 25 years investing in Fairfax.

Now just a couple of words on our management team I've always said and to repeat we're very blessed to have such a wonderful group of long term shareholders first of all who have stood by us through the ups and downs of business and you're all here. There are people here with 20 years 25 years investing in Fairfax.

Speaker 1: big sums of money in terms of their personal net worth, net worth and even

Big sums of money in terms of their personal net wealth network and they've invested at a culture that we've had is a very valuable asset even though it's not shown on the balance sheet and the creation and preservation of that culture is the biggest achievement of Fairfax over the past 37 years.

Speaker 1: Our culture that we've had is a very valuable asset, even though it's not shown on the balance sheet. And the creation and preservation of that culture is the biggest achievement of Fairfax over the past 37 years.

Speaker 1: and the continuing driver for our success. And you know it's protected for all time. The fan-friendly culture, which is in our name, so why companies over the world want to deal with us? Because they trust us, they know when we sign, we shake their hands that we won't renege. And...

And they're continuing driver of our success and you know it's protected for all time, the fan friendly culture, which is in our name so why companies over the world want to deal with us because they trust us they know when we sign reshaped the hand that we had there we wont we wont renege and.

Speaker 1: simplifying these culture. David Johnson's written a book on trust, which we've given you a copy of in the past. He's followed by his latest book on empathy, and two great books, and we have got a copy for all of you on the way out on empathy.Happy !

Exemplifying B's.

A culture, David Johnston has written a book on Trust, which we've given you a copy off in the past you've followed by his latest book on empathy.

And two great books, and we have got a copy of it for all of you on the way out on empathy.

Speaker 1: trust and empathy, two qualities we believe great organizations need to have.

Trust and empathy to qualities, we believe great organizations need to have.

Speaker 1: Also, we have a copy of John Templeton's words of wisdom.

Also we have a copy of John Templeton's words of wisdom with one of the greatest investors of all time.

Speaker 1: one of the greatest investors of all time. Lauren Templeton, his grand niece and our director, has put together this book. It's nice and short, and you will enjoy every word of wisdom that John has. He was, as you know, fortunate to have him at the mentor for almost 30 years.

Lauren Templeton is grand niece, and our director.

<unk> has put together this book, it's nice in short and you will enjoy every.

A word of wisdom that John has he was as you know I was fortunate to have him as a mentor for almost 30 years.

Speaker 1: Now I'd like to take the opportunity to welcome Brian Porter to our border direct.

Now I'd like to take the opportunity to welcome Brian Porter to our board of directors as you all know Brian was the CEO of bank of Nova Scotia for 10 years and was at the bank for 40 years, we're looking forward to benefiting from Brian's Vas business experience. Please give them a nice round of applause, Brian Florida.

Speaker 1: As you all know, Brian was the CEO of Bank of the Escowship of Teniers and was at the Bank for 40 years.

Speaker 1: We're looking forward to benefiting from Brian's vast business experience. Please give him a nice round of applause. Brian Porter. I also want to thank this opportunity to thank our directors. Leaven of them and now with Brian Twelves for their strong support of our company, our directors.

I also wanted to take this opportunity to thank our directors 11 of them and now with Brian 12 for that strong strong support of our company our directors.

Speaker 2: We were very saddened earlier this year with a passing of Alan Horn. Alan served as our independent board member and chair of our audit committee from 2008 to 2018. The board member of Fairfax India, thinf his inception. We benefited greatly from Alan's business, accumen, guidance and commitment to excellence.

We were very saddened earlier this year with the passing of Alan Horn, Alan served as our independent Board member and chair of our audit Committee from 2008 to 2018, the board member of Fairfax, India since its inception <unk>.

<unk> greatly from Ireland business acumen guidance and commitment to excellence.

Speaker 1: Alan was a trusted advisor and dear friend of Fairfax and we will must

Alan was a trusted advisor and Dear friend of Fairfax, and we will miss him.

Speaker 1: Over our 37 year history, we have always operated at Fairfax with an outstanding small team, very small team of officers, great integrity, team spirit, no egos, protecting our company from unexpected downside risks.

Over a 37 year history, we have always operated at Fairfax with outstanding small team very small team of officers.

Great integrity team spirit, no egos protecting our company from unexpected downside risks and taking advantage of opportunity when it comes our way.

Speaker 1: and taking advantage of opportunity when it comes our way.

Speaker 1: This group has worked together for a long time and with the trust and long term focus.

This group that's worked together for a long time and without but that trust and long term focus and very happy to report at this group is led by Peter Clark, Our President and he has just completed its first year as a president and that has been outstanding.

Speaker 1: And very happy to report it's the group is led by Peter Clark, our president. And he's just completed his first year as our president. And it has been outstanding.

Speaker 1: Peter has been with Fairfax.

Peter has been with Fairfax.

Speaker 1: We had done a terrific job and yesterday we have been busy. Yesterday we reported that we bought the 46% interest of GIG. In the midst of our annual report and the midst of our HEM, we were able to do that. And we had been with us for 26 years and he represents our culture. Smart, hardworking and no ego.

We have done a terrific job and yesterday.

Betsy yesterday, we reported that we bought the 46% interest of G. I G are in the midst of our.

Annual report and most of our AGM, we were able to do that and we would have been with us for 26 years and he represents our culture smart hardworking and no ego.

Speaker 1: very very happy to see how well the bidders performed.

Very very happy to see how well Peter has performed.

No.

Speaker 1: Every year I introduce our management team. You've seen the photographs going around and that we've done to save time. But I wanted to emphasize that it is because we've got a very small holding company. It's very decentralized.

Every year I introduce our management team you've seen the.

Photographs going round and that we've done for the.

At the same time, but I wanted to emphasize that it is these because we've got a very small holding company. It's very decentralized it as these leaders who make Fairfax such a wonderful company. We are blessed with a very unusual group of smart hardworking trustworthy people are real strength and the reason why I'm so confident.

Speaker 1: It is these leaders who make Fairfax such a wonderful company. We are blessed with a very unusual group of smart, hardworking trustworthy people, our real strength. And the reason why I'm so confident that we will do well over the long term, long after I am gone.

That we will do well over the long term long after I am done.

Speaker 1: And I wanted to take that long tenure. All of these people have been with us for a long time. I wanted to recognize them and give them a nice round of applause. Our management team. Open game. Now it's time to ask more

And.

I wanted to take that long tenure and all of these people have been with us for a long time I wanted to recognize them and give them a nice round of applause our management team.

Speaker 1: So as you know, we've got 43 boots here this year, almost a record. All our companies are there, large investments, also are there. Shall we get?

So as you know we've got 43 boots here this year up almost a record all our companies are their large investments also are there.

Show you a little about our company and this is an opportunity to learn about our company, we think for our shareholders. Once a year and we open it up and and you can ask any questions that you might have so that is all of the insurance companies are there's the non insurance investments like Domino's cookware.

Speaker 1: And this is an opportunity to learn about our company. We thank for our shareholders once a year, and we open it up and you can ask any questions that you might have. So there's all of the insurance companies.

Speaker 1: There's the non-insurance investments like Thomas Cook, Quest and AGT, are supporting companies like Bauer, Sporting Life, Golf Town.

First in a G T a sporting companies like Bower Sporting life golf town, and and of course, Fairfax, India, who has that Fairfax, India is up.

Speaker 1: and uh... and of course fairfax India who has uh... the fairfax India

Speaker 1: HEM is in the afternoon at 2 o'clock and all the companies from Fairfax India represented and the management teams and presidents are here.

H M as in the afternoon at two o'clock and all the companies from Fairfax, India represented and the management teams and president of out here.

Speaker 1: We have a reception and after this, and you can count on a good meal because we have recipe restaurants, we have keg, and celebrity chef Mark McEwan will be preparing some of their signature items. So it's about 12, 15 that you can go out and have a nice little refreshment.

We have a reception and after this and yes, you can count on a good meal, because we our recipe restaurants, we have CAG and celebrity chef Marc Mcewen will be preparing some of their signature items. So Don it's about 12 15.

That you can go out and have a nice a little.

Refreshments.

Speaker 1: We have the Ivy Business School showcasing the Ben Graham Chair for Value Investing. It's become one of the best in the world. George has been doing it for 18 years, Ethan Asakos. He had a conference yesterday, which I'd recommend to all of you every year. I've been recommending it, outstanding conference yesterday. And we have our co-op students from the University of Waterloo, the largest co-op.

We have the IV business gold show showcasing the Ben Graham Chair for value investing has become one of the best in the world.

George has been doing it for 18 years at in Osaka.

He had a conference yesterday, which I'd recommend all of you every been recommending it outstanding conference yesterday, and we have a co op students from the University of Waterloo, The largest co op program in the World and we've been we benefited greatly from hiring.

Speaker 1: program in the world and we've been we benefited greatly from hiring

Speaker 1: are co-op students from the University of Waterloo and they're there also. Now you know the-

Our co op.

Students from the University of Waterloo and they they're there also.

Now you know the saying by doing good.

Speaker 1: doing good by doing well. You have to do well first before you do good. We certainly believe in it and last year we invested 26 million in our community.

Doing good by doing well you have to do well first before you do good we certainly believe in it and last year, we invested 26 million and our communities all over the world.

Speaker 1: all over the world. A cumulative, almost 300 million since we began our donations program in 1991. Our annual donations from that time have increased by 147 times since we began and to think that when we began the whole company was worth $2 million.

Accumulative almost 300 million since we began our donations program in 1991, our annual donations from that time have increased by 147 times since we began and to think that when we began the whole company was what $2 million.

Speaker 1: Business can be a good force in the economy and we're an example of that.

And this can be a good force in the economy and an example of that.

Speaker 1: Now as we've done in the past 37 annual meetings, I will quickly go through the formal meeting, give a short presentation with slides, and then most importantly, we want to hear your Q&A, your questions with our answers, and our presidents are there, our some of our big investments, non-insurance investments, we've got our presidents here too, and they'll be kind enough to say they'd be able to, they'd be happy to answer any questions.

Now as we've done in the past 37 annual meetings I will quickly go through the formal meeting give a short presentation with slides and then most importantly, we wanted to hear your Q&A your questions with our branches and our President's or there are some of our big investments non insurance investments.

We've got a president here too and there'll be a they've been kind enough to say they'd be able to they'd be happy to answer any questions.

Speaker 1: And you can still submit your questions in real time on this platform, which we received by Jeff Stacey, who will moderate the Q&A from the web.

And you can still submit your questions in real time on this platform, which really received by Jeff Stacey who will moderate the Q&A from the web.

Speaker 1: As I mentioned to you, at 2 p.m., we'll have the 6th Fairfax India Annual Meeting, which will take place both here and on the web.

As I mentioned to you at two P. M will have the sixth Fairfax, India annual meeting.

Which will take place both here and on the web.

Speaker 1: So again, I wanted to, you know, while we had the surprise by Vinod on the weekend, he organized everything, it was all organized, and I wanted to thank him and thank our team at Fairfax for setting all of this up. It's a lot of work, lots of detail, and they've done a terrific job. Let's give them a nice round of applause. So now we'll begin the formal part of the meeting.

So again I wanted to you know, while we had the surprise by the node on the weekend. He organized everything it was all organized and I wanted to thank him and thank our team at Fairfax for setting all of this up it's a lot of work lots of detail and they've done a terrific job, let's give them a nice round.

Applause.

So now we will begin the formal part of the meeting.

Speaker 1: And so ladies and gentlemen, welcome to the Fairfax annual shareholders meeting. I'm from what's at Chairman CEO Fairfax. Actors are chairman of this meeting.

And so ladies and gentlemen, welcome to the a Fairfax annual shareholders' meeting on Prem wants a chairman and CEO of Fairfax Act as chairman of this meeting I will ask Derek Bull as the widespread and Chief legal officer of Fairfax to Act as Secretary of the meeting.

Speaker 1: I will ask Derek Boulas, the White President, the Chief Legal Officer of Fairfax to act as Secretary of the Meeting.

Speaker 1: I shall also point Shirley Tom and Louise Waltonbury of Computer Share Trust's company to act as scooters and to complete the votes of any polls taken at this meeting and to report them to me at CHEM.

I should also point, Shirley Tom and Louise Walton Berry of Computershare Trust Company to act as Scrutineers and to complete the votes of any polls taken at this meeting and to report them to me as chairman.

Speaker 1: I can report that as a result of reviewing an affidavit of mailing and a preliminary report on the scooters, I'm satisfied that notes of me have been duly given the commerce president and that this meeting is properly cautioned.

I can report that as a result of reviewing an affidavit of mailing and a preliminary report on the Scrutineers I'm satisfied that notice of meeting have been duly given the Columbus present and that this meeting is properly constituted.

Speaker 1: I propose to move quickly to the formal business. I now set the minutes of the previous annual shareholders meeting held are available for inspection, upon request to the Fairfax corporate secretary.

I propose to move quickly to the formal business announced that the minutes of the previous annual shareholders meeting held are available for inspection upon request of the Fairfax <unk> corporate Secretary.

Speaker 1: And I also place the Fairfax Annual Report, gets bigger every time because of all the disclosures that have to be made, includes the company's financial statements for December 22 and December 21, and the report of the auditors, Pricewater House Cooper.

And I also place the Fairfax annual report gets bigger.

Every time because of all the disclosures that have to be made.

Includes the company's financial statements for December 'twenty, two and December 'twenty, one and the report of the auditors Pricewaterhousecoopers. In addition, I declare that the total number of votes attached to the shares represented at this meeting by proxy Richard have been directed to be voted in favor of each matter to be considered at the meeting.

Speaker 1: In addition, I declare that the total number of votes attached to the shares represented at this meeting by proxy, which have been directed to be voted in favor of each matter, to be considered at the meeting as in each case, not less than 81% of all the votes that may be cast at this meeting.

As in each case, not less than 81% of all the votes that may be cast at this meeting.

Speaker 1: Voting today will be conducted by electronic ballot for those attending virtually and by a show, hands for those attending in person. I will ask that the ballot being be open to registered holders and appointed proxy holders. The polls are now open on the platform and at this point all registered holders and proxy holders attending virtually have, if they're properly logged in, you can vote. All motions to be brought to this meeting.

Voting today will be conducted by electronic ballot for those attending virtually and by a show of hands for those attending in person I will ask that the balloting be opened to registered holders and appointed proxy holders. The polls are now open on the platform and at this point all registered holders.

And proxy holders attending virtually have if they're properly logged in you can vote all motions to be brought to this meeting.

Speaker 1: Following the presentation of the motions, Jennifer Allen will confirm to us our chief financial officer when the polls have closed. Once the electronic balloting closes, your votes will be submitted.

Following the presentation of the emotions, Jennifer Allen will confirm to us.

<unk> financial officer, when the polls have closed once the electronic balloting closes your votes will be submitted.

Speaker 1: With your consent now, I will now move directly to the election of directors. I now invite.

Yeah.

With your consent I will now move directly to the election of directors.

I now invite.

And right nominations for directors.

Speaker 3: I am Peter Clark and I nominate as directors of the Corporation for the ensuing year, Robert Gunn, David Johnson, Karen, Georgia Bitch.

I am Peter Clark and I nominate as directors of the corporation for the ensuing year.

Robert Gunn.

Okay.

David Johnson.

Karen Church of itch.

Bill Mcfarland.

Christine Mclean.

Brian Porter.

Timothy price.

Brandon Sweitzer.

Lauren Templeton.

Benjamin Wassa.

Prem Wassa.

And William Weldon.

Thank you Peter are there any further nominations.

As no other nominations for directors have been received and is the number of directors nominated is exactly the number to be elected I confirm that those 12 nominees proposed for election as directors of the company.

Given the hybrid meeting and the fact that we also conduct a virtual vote, we will have a vote on this together with the next resolution.

Appointment of an auditor.

Speaker 1: I now invite a resolution regarding the appointment of an audit.

I now invite a resolution regarding the appointment of an auditor.

Speaker 3: I move that Price Waterhouse Cooper's LLP be appointed as auditor of the corporation to hold office until the next annual meeting. Thank you, Peter.

I move that price Waterhouse Coopers LLP be appointed as auditor of the corporation to hold office until the next annual meeting.

Thank you Peter.

I will second that motion.

Jan.

For those attending in person I would ask that you. Please vote by show of hands all in favour, we put your hand up.

Terry.

Speaker 1: We now take a brief pause for 60 seconds to allow registered holders and proxy holders to complete their electronic voting on the motions.

We now take a brief pause for 60 seconds to allow registered holders and proxy holders to complete the electronic voting on the motions.

Brought forth at this meeting and Jennifer Allen, It's timing. It then will let us know the results.

Okay.

Yeah.

Okay.

Yeah.

Mr. Chairman the voting is now complete and the polls are closed.

Speaker 1: Thank you very much, Jan. I have been advised by the scrutiners that the proxy's deposited by the meeting have now been voted. I can confirm that the nominated directors have been appointed as directors of the company to hold office until the next annual meeting. In addition, I can confirm that PricewaterhouseCoopers have been appointed as an auditor of the company to hold office until the next annual meeting. We will file a report on Cedar setting out the voting results following the meeting.

You're very much Jan.

I have been advised by the Scrutineers that the proxies deposited by the meeting have now been voted I can confirm that the nominated directors have been appointed as directors of the company to hold office until the next annual meeting. In addition, I can confirm that price Waterhouse Coopers had been appointed as an audit of the company to hold office until the next annual meeting.

We will file a report on SEDAR setting out the voting results following the meeting.

Speaker 1: I propose now that to terminate this meeting, after that I'd like to talk to you about the operations, the short presentation, and then open it up for questions.

I propose now that to terminate this meeting after that I'd like to talk to you about the operations. This short presentation and then open it up for questions.

Speaker 1: motion for termination. All moved that this meeting be terminated. Thank you, Jan. I second the motion. Thank you very much. I declare the meeting terminated and we get into the presentation, short presentation. The picture is worth a thousand words and then open it up for question and answer.

A motion for termination I'll move that this meeting be terminated thank you Jan and I second the motion. Thank you very much I declare the meeting terminated and we get into the presentation Jud presentation.

It shows whether in a thousand words, and then open it up for question and answers so with that.

Speaker 1: So with that, we'll go into our slide presentation.

We'll go into our.

A slide presentation.

Yeah.

Speaker 1: So guiding principles are the key. We've had that for the better part of 37 years. Just highlights that every year I begin with that, because that's the basic foundation.

So our guiding principles are the key we've had that for the better part of 37 years, just highlights that every year I begin with that because that's the basic.

Foundation of our company, we start all our meetings with this what are we what is our objective at the public company objective is to provide a long term return of 15% annually by running a subsidiary for the long term benefit of customers you're not in business. If you don't have customers and even if you don't provide outstanding service to them.

Speaker 1: that all our meetings with this. What are our objectives of the public company? Objectives to provide a long-term return of 15% annually by running our subsidiaries for the long-term benefit of customers. You're not in business if you don't have customers and if you don't provide outstanding service to them. The people who provide that is I'm employees. So we've got to look after our employees.

The people who provide that as our employees. So we got to look after our employees and.

Speaker 1: And finally we've got to make a return for shareholders. And for us, we want to put money back into the communities where we operate because it all works together. You can't build a company that operates in a vacuum. And so it's a, now, we, again, another political giant of all of these things. And so we can become more creative and drive up to, I think beyond the laws of corruption we will continue to

Finally, we got to make a return for shareholders and for US we want to put money back into the communities, where we operate because it all works together you don't you can't.

Build a company that operates in a vacuum and so it's a.

Now read.

Speaker 1: We support our communities where we operate at the expense of short term profits of necessary. We're not focused on short term profits.

We support our communities, where we operate at the expense of short term profits of necessary. So we're not focused on short term profits long term growth and book value per share and not quarterly earnings always soundly financed and once a year, we provide disclosure in our annual report.

Speaker 1: Long term growth in book value per share, not quarterly earnings, always-only finance. And once a year, we provide disclosure in our annual report. I structure the

Our structure.

Speaker 1: Big plus of our structure and it's a little unique is that it's decentralized.

The big plus of our structure and it's a little unique is that it's decentralized.

Speaker 1: Each company has capital, has a management team, and it's totally separate, independent from the others.

Each company is has capital and the management team and its totally separate independent from the others.

Speaker 1: So it's been, for 37 years, it's been a massive strength for us. Talk a little more about it. Open communication, we're focused on the bottom line, not on the top line.

So it's a it's been at it for 37 years has been a massive strength for us talk a little more about it.

Open communication, we are focused on the bottom line not on the top line.

Speaker 1: guiding principles on ends with our values, which are very important to us, and honesty and integrity essential in all our relationships will never be compromised. You'd expect us to say that.

Guiding principles.

And as with our values, which.

Very important to us and honesty and integrity are essential in all our relationships have never be compromised you'd expect us to say that but we believe in it and we practice it.

Speaker 1: We believe in it and we practice it. Results oriented, not political team players. No egos, confrontational style. We don't think is appropriate. Hard, we have an unusual value. Hard working, but not at the expense of our families. We work very hard, but not at the expense of our families.

Results oriented not political team players knowing he goes.

Confrontational style, we don't think is appropriate.

We have an unusual value hard working but not at the expense of our families. We work very hard but not at the expense of our families always look at opportunities, we make mistakes learn from them, but we will never bet. The company on any projects or acquisitions. So we just bought G. I G. Its not close would we have a binding agreement.

Speaker 1: Always look at opportunities. We make mistakes, learn from them, but we'll never bet the company on any project or acquisition. So we just bought GID. It's not close. We would have a binding agreement to buy it. If something happens on that, and it doesn't work out, it's not going to affect the rest of it.

To buy it if something happens on that and it doesn't work out it's not going to affect the rest of Fairfax.

Speaker 1: So it's a significant acquisition, but it won't affect the rest of the fair.

Such a significant acquisition, but it won't affect the rest of Fairfax Lastly, we believe in having a few laughs at work because we work very hard we.

Speaker 1: Lastly, we believe in having a few laps at work, because we work very hard.

Speaker 1: believe in having fun. Quite often that's the only value that some of our companies remember when I'd go and see them. If you, not too, very quickly, you've seen the annual report, I'll just highlight, we had a very 16% growth and growth premiums.

I believe in having fun quite often that's the only value that some of our companies remember when I go and see them.

[laughter] if you're allowed.

Very quickly you see in the annual report I'll just highlight we had that.

There is 16% growth in our gross.

Speaker 1: Unready profit of 1.1 billion combined ratio you can see interesting dividend income I'm going to talk about the 960 to Million that's for the whole

<unk> underwriting profit of 1.1 billion combined ratio you can see interest and dividend income I'm going to talk about the 962 million that's for the whole year.

Speaker 1: But I said in the airport and it's true. It right now, the current run rate is 1.5 billion. Actually a little more than that. But 1.5 billion is what we said in the airport. And that's what it is. 1.5 billion.

But.

I said in the airport and it's true.

Right now the current run rate is 1.5 billion actually a little more than that but 1.5 billion is what we said in the airport and that's what it is 1.5 billion.

Speaker 1: is our interest and dividend income. It's very significant. We've never had that before. And the net income was, as you can see, but it's after unrealized investment losses of 1.7 billion. These are fluctuations up and down. Mainly bonds that with about 1.1, 1.2.

<unk> is our interest and dividend income very significant we've never had that before and the net income was as you can see but it's after.

Unrealized investment losses of $1 7 billion. These are fluctuations up and down mainly bonds and that was about 1.112 billion.

Speaker 1: and some foreign exchange fluctuations and common stock fluctuations. And...

And some foreign exchange fluctuations and.

Common stock fluctuations and now we actually realized a gain of $1 2 billion from the sale of our pet insurance operations.

Speaker 1: Now, we actually realized again of 1.2 billion from the sale of our pet insurance operation.

Speaker 1: to GAB, very significant.

Two J J b.

A very significant.

Speaker 1: So last five years, I said in the annual report, Fairfax has

So in last five years I said in the annual report Fairfax has been transformed.

Speaker 1: Even for me, it's just unbelievable what's happened in the last five years. Shares outstanding, you can see is dropped by 16% at about 4.5 million shares. We retired 4.5 million shares.

Even for me, it's just unbelievable what's happened in the last five years shares outstanding you can see has dropped by 16% that's about 4.5 million shares.

We retired $4 5 billion shares.

Speaker 1: Gross premiums has doubled.

Gross premiums has doubled gross premiums have gone from 13, 8% to 27.6 foot 100% float.

Speaker 1: Close premiums have gone from 13.8 to 27.6.

Speaker 1: for 100% off float. That's, that's, it leads to the investment portfolio. That's $31 billion.

They invest.

It leads to the investment portfolio, that's $31 billion huge advantage for Fairfax. This float. Unlike banks you can pull up deposits for banks, especially.

Speaker 1: huge advantage for Fairfax. This float unlike banks, you can't pull deposits for banks, especially in the United States. You can pull those deposits away. You can't pull that float away. That float we can manage in terms of investing and we can make an unwriting profit. Invest in portfolio you can see and share all those equity. And then if you look at it because the shares, so it's not only that

Especially in the United States, you can pull those deposits away you cant pull that float away that float we can manage it.

In terms of investing and we can make an underwriting profit investment portfolio, you can see and shareholders' equity and then if you look at it because the shares so it's not only the total numbers, but it's pushed share that.

Speaker 1: have indiscretory before the 137% of the float, investment portfolio, shareholders equity. Huge increases.

That counts and you can see the per share numbers are very significant gross premiums have increased voice share by 137% of the float.

<unk> portfolio of shareholders' equity.

Huge increases in the last five years.

Speaker 1: And that's all of the numbers at one slide. This is perhaps the most important slide that I can show you. Interesting dividend income.

And.

That's all of the numbers in one slide.

This is perhaps.

The most important slide that I can show you interest and dividend income.

Speaker 1: This is the outlook for 1.5 billion, unwriting profit, one billion. This is the outlook for 1.5 billion.

This is the outlook for 1.5 billion underwriting profit.

$1 billion.

I think that's conservative.

Speaker 1: You do have hurricanes and earthquakes and anything that happens in the world, any catastrophe you'll know we're taking ahead.

You do have.

Hurricanes and earthquakes and anything that happens in the world any catastrophe, you'll know we're taking a hit.

Speaker 1: Okay, but within reason, within our expectations. Despite of all that, last year we had $1.1, 1.2 billion of catastrophes that we paid out, 1.1, 1.2 billion.

But within reason within our expectations. Despite of all that last year. We had 1.1 point $2 billion of Cat catastrophes that we paid out 1.1 point 2 billion and we still made a billion dollars of Andre profit because we have so much bigger and we can absorb at 27 28 billion.

Speaker 1: And we still made a billion dollars of honorary profit because we have so much bigger and we can absorb at 27, 28 billion. We can absorb a lot of losses. Non-insurance profit, which is associates and consolidated. Consolidated would be things like Thomas Koch and Question and other companies that we have consolidated. And associates are like companies like Atlas and in.

We can absorb a lot of.

Our losses non insurance profit, which is our associates and consolidated consolidated would be things like Thomas Cook in question and other companies that we have consolidated and our associates are like.

Companies like Atlas and.

Speaker 1: our Stealth Co and once which are Shown as a profit. That's a half a billion. That's conservative too And so you get operating income of three billion That's three billion which after expenses and all the potential earnings of about a hundred dollars per

Hum.

Stelco, and once which are Rob.

Shown as a profit that's a half a billion that's conservative too and so you get operating income of $3 billion 3 billion, which after expenses and all of that potential earnings of about $100 per share.

Speaker 1: That's before any investment gains. And we've made a ton of investment gains over the past. Before investment gains, $100. But now I can tell you that for this is 23, 24, 25, we've extended our terms.

That's before any investment gains and we've made a ton of investment gains over the past before investment gains of $100, but now I can tell you that for the this is 'twenty three 'twenty four 'twenty five.

Extended our term.

Speaker 1: by buying treasury bonds in the last two or three months. And so we are confident that we'll have 1.5 billion interest and dividend income in 23, 24, and 25.

By buying treasury bonds in the last two or three months and so we are confident that we'll have 1.5 billion interest and dividend income in 'twenty, three 'twenty four and twenty-five bye.

Speaker 1: by buying about 80% of our fixed income portfolio in government bonds, treasury bonds, Canadian government bonds. So basically government bonds.

By buying about 80% of our fixed income portfolio in government bonds Treasury bonds Canadian government bonds, So basically government bonds.

Speaker 1: when we're outside North America, government bonds in different countries. So not taking credit risk.

When we're outside North America.

Government bonds in different countries, so not taking credit risk.

Speaker 1: And there'll be a time to take credit risks, not now, we don't think. And so we've got it for three years. And if you look in the future and we have a recession, and we don't know if we will have it or not, but spreads widened, spread between corporate bonds and treasuries are very narrow today. And when they widen, if they widen, we'd have the ability to sell these.

And there'll be a time to take credit risks, it's not now we don't think and so we've got it for three years and if you look in the future and we have a recession.

And we don't know, we will have it or not but spreads widen spreads between corporate bonds and treasuries are very narrow today and when they widen if they widen we'd have the ability to sell these.

Speaker 1: treasury bonds and then extend these type of interest and dividend income for 3, 4, 5 years further.

<unk> bonds and then extend these type of interest and dividend income for three or four or five years further and we've never had that we've never Fairfax has never had the ability to look three or four or five years, we've taken a view that over time.

Speaker 1: And we've never had that. We've never, Fairfax has never had the ability to look 3, 4, 5 years. We've taken a view that over time, our investment portfolios will work out and they have.

Our investment portfolios will walk out and they have but this time, we've got operating income of $100 a share.

Speaker 1: But this time we've got operating income of $100 a share.

Speaker 1: for 23, 24, 25. Not guaranteed, of course, because there's underrating profit there and there's non-insurance profit. But we feel comfortable to...

For 'twenty three 'twenty four 'twenty five.

Not guaranteed of course, because that underwriting profit there and there's a non insurance profit.

But we feel comfortable.

Speaker 1: highlight that for you. This is a track record. 37 years of book value per share, 17.8%. The Fairfax share price, 16.1% versus the S&P 500. And then if you include dividends, you can see our share price, 17.4 versus 18.5. The.

Uh huh.

Highlights that for you.

This is our track record 37 years, our book value per share of 17.8% the Fairfax share price, 16.1% versus the S&P 500, and then if you include dividends you can see our share price.

<unk> 17.4 versus 18 and a half.

Speaker 1: our stock price has gone above the book value sometimes below it's right now it's below and the possibilities are pretty huge

<unk>.

Our stock price has gone above the book value, sometimes below its right now its below and.

We think the possibilities are pretty huge for the next five years.

Speaker 1: This has been a formula for like 37 years. Discipline underwriting.

This has been our formula for like 37 years disciplined underwriting value investing superior long term returns discipline disciplined underwriting means a combined ratio below 100%. So we've done it for about 10 years now and more.

Speaker 1: Value investing, superior long term return. Discipline, disciplined, underwriting means a combined ratio below 100%. So we've done it for about 10 years now and more. And with good reserving. So we've had reserve redundancies for about 16 years.

And.

And.

With good reserving so we've had reserve redundancies for about 16 years.

Speaker 1: now. And you're combined that with value investing and you get superior long-term returns.

Now and you combine that with value investing and you get superior long term returns.

Speaker 1: So if you just look at the unconsolidated balance sheet,

So if you just look at the unconsolidated balance sheet.

Speaker 1: You can see insurance and re-intro insurance operations, non-intro insurance operations, holding company cash.

You can see.

Insurance and reinsurance operations non insurance operations holding company cash.

Speaker 1: long term that this is what you own.

Long term debt. This is what you own unconsolidated consolidation gets everything mixed up accounting rules.

Speaker 1: Unconsolidated consolidation gets everything mixed up accounting roles, but this is how we look at it. And if you look at our insurance and re-insurance operations,

But this is how we look at it and.

If you look at our insurance and reinsurance operations.

Speaker 1: Just to summarize, float 31 billion investments, 52 billion. The difference being all the other equity and some debt and others adds up to 52 billion at the end of 2022. And that's invested in cash.

To summarize float 31 billion investments 52 billion the difference being.

All the other.

Hum.

All the other.

Equity.

And some debt and others adds up to 52 billion at the end of 2022 and that's invested in cash.

Bonds common stock and you can see about 14 billion.

Speaker 1: common stock and you can see about 14 billion, 11 to 14 billion on common stocks, which we think over time will be very good for us.

11 to 14 billion in common stocks, which we think over time will be a.

Speaker 1: If you look at non-insurance operations, two billion, it's in our books, a two billion. You got recipe, it's now 100% owned, or it's 85% owned, a Fairfax India, we consolidate, we own about.

Very good for us.

If you look at non insurance operations 2 billion. It's on our books at 2 billion you got recipe.

Not 100% owned or it's 85% on Fairfax, India, we consolidate we own about 40% plus <unk>, 75% plus Thomas Cook.

Speaker 1: 40% plus, Gravalier, Viona, 75% plus, Thomas Cook.

Speaker 1: about 75% and some others come to 2.1 billion.

About 75% and some others come to 2.1 billion.

Speaker 1: Those companies that are consolidated, if you look at their revenue, it's about 5.5 billion.

Those companies that are consolidated if you look at their revenue its about $5 5 billion.

Speaker 1: And if you look at that pre-tax profit, it's about 350 million. And despite of, you know, recipe coming out of COVID and Thomas Cook basically shut down.

And if you look at the pre tax profit, it's about 350 million in spite of.

Our recipe coming out of.

Corvette and Thomas Cook basically shut down.

Speaker 1: So 350 million pre-tax profit, it's in our books at 2.1 billion. We think it's very reasonable. We think over time it will be worth a lot more.

So at 350 million pretax profit it's on our books at 2.1 billion. We think its very reasonable we think over time it'll be what a lot more.

Speaker 1: our debt, no near-term machoities, in the next year or so we'll finance bonds which mature in 24 and 25. We always do that. And if you look at our income statement, 27.6 billion, that's a lot of insurance premium all over the world.

Our debt no near term maturities in the next year or so we will finance, our bonds, which mature in 'twenty four and 'twenty five.

We always do that and.

If you look at our income statement 27.6 billion.

At a lot of insurance premium all over the world globally diversified.

Speaker 1: globally diversified underwriting profit 95% combined 94.7 that's the 1.1

Underwriting profit, 95% combined $94 seven that's the 1.1.

Speaker 1: This is accounting, interest in dividends, one billion, approximately, share of profits, we're one billion, we're only using half a billion for the future.

This is accounting interest and dividends 1 billion approximately share of profits were 1 billion, we're only using half a billion for the future.

Speaker 1: that I talked to you just about bonds will fluctuate.

That I talked to you just about bonds will fluctuate we had a loss of 1.1 billion with Ifr Ias 17 that will no longer be an issue because you got discounting of reserves and you got your bonds that fluctuate and so.

Speaker 1: We had a loss of 1.1 billion. With IFR-RAS 17, that will no longer be an issue.

Speaker 1: because you get discounting of reserves and you got your bonds that flock to it. And so, they will,

They will.

Speaker 1: That'll be less of an issue. Talk a little about that. Laws are an expertise and you can say foreign exchange and other.

That'll be less of an issue and.

And talk a little about that losses on equities and you can say foreign exchange and other.

Speaker 1: That's how you get on that earnings. I just break it down very quickly for you.

That's how you get on net earnings that break it down very quickly for you.

Speaker 1: And then we had our growth and book value. This is an interesting slide. Growth and book value we had a 6%. So you'll be shocked. How did our competition do? Here's the change in book value.

And then we had a growth in book value. This is an interesting slide growth in book value, we had a 6%.

So you'll be shocked how did the competition do.

Here's the change in book value per share adjust.

Adjusted for dividends for 2022.

Speaker 1: I mean some of the numbers, 43%, first three, 38% then you can go down and then you can go down on the right and you see some big numbers because

I mean, some of the numbers, 43% switch rate, 38%. Then you can go down and then you can go down on the right and you saw some big numbers because.

Speaker 1: Insurance businesses have a big fixed income portfolio. And if you try to match your liabilities, when interest rates were low, and interest rates went up in 2022, then this is what has happened to their book values. Very significant drop. And we, when I tell you, we've got a billion and a half, billion and a half billion and a half. It's all treasury.

Our insurance businesses have a big fixed income portfolio.

And if you try to match.

If you try to match your liabilities when interest rates were low and interest rates went up in 2022 and this is what has happened.

To their book values, very significant drop and Ah.

Ah away when I tell you, we've got a billion and a half billion and a half billion in App. It's all treasury's lot of our competition has also got a.

Speaker 1: A lot of our competition has also got corporate bonds in that portfolio. 30, 40 percent because we're not trying to make money in any quarter. So we don't really care what our numbers are. But if you're focused on a quarter by quarter, then you have to try to see what you can get. You might have to reach for yield and a lot of our companies have.

Corporate bonds and their portfolios 30, 40% because you know we're not trying to make money in any quarter. So we don't really care, what our numbers up but if your focus on a quarter by quarter. Then you have to try to see what you can get you might have to reach for yield and a lot of a lot of our company a lot of these companies have.

Speaker 1: But we're very comfortable with Web-E-R. I just thought I'd show you that.

But we're very comfortable with where we are I just thought I'd show you that.

Speaker 1: Our company that decentralized, same management team, who've been with us, I'll show it to you, very exceptional performance, 16% growth. And you know, an appropriate time to tell you that we had.

A company that decentralized same management teams who've been with US I'll show it to you.

Very.

Exceptional.

Performance, 16% growth.

And.

Opiate time to tell you that we had.

In the last three years.

Speaker 1: In 20, we had a 12% growth. In 21, 25% growth. And last year, 16%. You put those three years together, we've added $11 billion. $11 billion of growth premium. When we bought...

And 'twenty, we had a 12% growth in 'twenty, one 'twenty, 5% growth and last year's 16% you put those three years together, we've added $11 billion Levin billions dollars of gross premium when we bought.

Speaker 1: Allied world we paid five billion dollars. We got three and a half billion in premium. When we bought bread for almost two billion dollars, we got two billion dollars of premium.

Allied World, we paid $5 billion, we got $3 5 billion in premium when we bought Brit for almost $2 billion.

$2 billion of premium.

Speaker 1: organic, no acquisitions we've added $11 billion. That's why I tell you it's been transformative the last five years. Here, this is shows it to you a little better. Here's what everyone did in the top 20. We're in the top 20 now, in the world.

Organic no.

Acquisitions, we've added $11 billion, that's why I tell you it's been a transformative the last five years.

Here. This it shows it to you a little better here's what everyone dead in the top 20 were in the top 20 now in the world.

Speaker 1: I had to tell you, top 20 in the world, all property casually companies in the world. State farms got the highest premium, 70 billion. The green dots show you that three-year compound.

Italia top 20 in the world for all property and casualty companies in the World State Farm has got the highest premium 70 billion Big Green Dot show you that three year compound.

Growth what are the compound growth for three years, it's about.

Speaker 1: What did the compound growth for three years? It's about, and the three years, why three years, it's basically the hard markets that took place in the last three years. You see about, for them, it's about 5%.

Three years why three that's basically the hot markets that took place in the last three years.

You'll see about for them, it's about 5%.

Speaker 1: And you'll see all of them the best is about 10% and we did about 17% in red and That just transform the 70 year compounding works right three years 17% We're in the top 20 companies now and then of course this doesn't include about

And you'll see all of them the best as about 10% and we did about 17%.

And red.

And that is transformed that 70 are compounding works right three years, 17%.

We are in the top 20 companies now and then of course. This doesn't include about almost $3 billion from.

Speaker 1: almost 3 billion from GIG and digit, which I'll show you here. This is a slide I showed you all the time. It's just a say we're totally decentralized. So Northbridge is

From G IGN and digit which I'll show you here.

This is a slide I showed you all the time, it's just to say we're totally decentralized so not bridge is separately.

Speaker 1: capitalized, separated, run by Sylvie and on and on and on. And huge strength for us. So our president empowered. It's not like Fairfax tells them you do something here, you do something. They run the company, they have to focus on underwriting profit. That's right.

Capitalized separately run by salary and on and on and on and.

Huge strength for us to walk a president's are empowered it's not like Fairfax tell them you do something are you do something.

They run their company they have to focus on underwriting profit.

Speaker 1: and they have to focus on good reserving and take the long-term view and have our culture and I'm happy to say that all of them do. You can see the international, a huge amount of companies that we have and tremendous opportunity in Asia, Latin America, Latin American presidents are your, many of our Asian presidents are your...

And they have to focus on Gudrun surfing and take the long term view and have our culture and I'm happy to say that all of them do you can see the international.

Huge amount of companies that we have and tremendous opportunity in Asia, Latin America, Latin American Presidents, a many of our Asian presidency here.

Speaker 1: huge opportunity for them as you can have just listed them here. Very deep centralizing of course, we've got a runoff business which has been exceptional for us for a long, long time.

A huge opportunity for them.

As you can I've just listed them here very de centralize and of course, we've got a runoff business, which has been exceptional for us.

For a long long time.

Speaker 1: So here's our business, the 27.5 billion consolidated insurers and re-insurers. That's what we have. And the portfolios are now about 56 billion.

So here's a business the 27 and a half billion consolidated insurers and reinsurers, that's what we have and the portfolios are now about 56 billion.

Speaker 1: If you look at what we bought, so that's basically the non-consolidated, so that's digit, 900 million, and the GIG, which is the Middle East, and that's about 2.7 billion, all gross written premiums. So you can see we're at about $31 billion, all over the world, our portfolios are 60 billion.

If you look at what we bought so that's basically the.

The non consolidated so that digit $900 million and.

A G I G, which is the middle east and that's about.

$2 7 billion.

All gross written premiums. So you can see we are at about $31 billion all over the world our portfolios are 60 billion.

Speaker 1: It's a huge, huge strength for our company as we go forward. And it develops this float, which I show you here. We had almost no float in 1985. And now we've got $31 billion. That's about $1300.

It's a huge huge strength for our company as we go forward and.

And develops as float, which I show you here, we had almost no floater 1985 and now we've got 31 billion that's about 1300.

Speaker 1: and $39 per share, the compound rate has shown there. And then you can see the benefit of the float when you make an underwriting profit.

And $39 per share compound rate as shown there.

And then you can see the benefit of the float when you make an underwriting profit.

Speaker 1: There's a plus, it doesn't cost you. So you're getting all this money that 31 billion and you're making an underrated profit. And that, about a billion dollars on 31 is about 3.5% return. Here it just shows you over the last five years and 10 years. But last year, it was 3.5%. That 31 billion, we can invest in the...

There is a plus that it doesn't cost you. So youre getting all this money that 31.

All in and you're making an underwriting profit.

And that.

About $1 billion on 31 is about three 5% return here just shows you over the last five years and 10 years, but last year. It was three 5% that 31 billion, we can invest in that.

Speaker 1: you know, basically in bonds, if we want, and we have, get another three and a half percent. And that's seven percent on 31 billion. And the 31 billion happens to be twice our share of those equities.

Basically in bonds, if he wants and rehab get another three 5% and that 7% on 31 billion in the 31 billion happens to be twice.

Shareholders' equity.

Speaker 1: So you can see we get 15% right there, just the inter-thin dividend income and the underwriting profit on our company. So you can see we get 15% right there, just the inter-thin dividend income and the underwriting profit on our company.

So you can see we get 15% right there just the interest and dividend income and the underwriting profit.

On our company.

Speaker 1: These are globally diversified. We started in Toronto and I can't even business less than 10% now. We're all over the world and we have 16,500 employees, 100 countries where we do business, underwriting offices in 50 countries and all tied together by our culture. This is a slide, a holding company. Just look at the number of years.

These are globally diversified we started in Toronto.

And our Canadian business less than 10% now we're all over the world and we have 16500 employees 100 countries wherever we do business underwriting offices.

In 50 countries and all tied together by a culture.

This is a slide a holding company just look at the number of years.

Speaker 1: that people have worked in our company. 27 years for Andy Bernard, Peter is about 25 years, Jen Allen and on and on and on, just scan it. And some people have come in more recently, like Tom Rose, seven years and...

That people have walked in our company 27 years for Andy Barnard Peter is about 25 years, Jen Allen and on and on and on the scan it and some some people have come in more recently like Tom Rose seven years and.

Speaker 1: Brian Bailey and Tax Six Years, but

Brian Bailey and tax six years, but key for us has been the huge amount of.

Speaker 1: The key for us has been the huge amount of farm.

Speaker 1: experience that we have and no turnover. That's a big plus.

Experience that we have and no turnover to such a big plus and if you look at.

Speaker 1: And if you look at our management team, insurance management team, just scan that for a second. 27 years for India that said, 22 years for Jonathan go down. And look at Silvie Wright, 29 year Brian , young, 27 on and on and on. And...

Our management team insurance management team to scan that for a second 27 years fan near that 22 years for Jonathan go down and look at February 29 years, Brian Young 27 on and on and on and.

It's just been a phenomenal we're very happy with Martin Thompson T. This is the plus of Martin ran RSA, which is a big Canadian company, which was bought by intact and he decided.

Speaker 1: and he decided he didn't want to go for it though. And so he joined us without a job.

He didn't want to.

Go for it though and so he joined US without a job you just joined US with the idea that something will come and then we are so happy that he did because Matthew Wilson as you know.

Speaker 1: These are the joint words with the idea that something will come. And we are so happy that he did because Matthew Wilson, as you know, got sick and decided that he couldn't, his doctor said he couldn't continue. And Martin was the interim CEO while...

Got sick and decided that he couldn't as Doctor said, he couldnt continue and Martin was the.

The interim CEO while.

Speaker 1: Matthew was recovering and then Matthew said he's the right guy and you should put him in and we did and Britz going to do exceptionally well With Martin but Martin joined us with no no job. You know like a really successful Prevent of our essay joined us without a specific job years ago. Be John

Matthew was recovering and then Matt you said, he's the right Guy and you should put them in and we did.

Brits Gonna do exceptionally well with Martin, but Martin joined Us with no no job.

Like a really successful.

The president of RSA joined us without a specific job years ago Bejon.

Speaker 1: who is our president of International Winshaw. Clujee also joined us with no job, and now we've got, in first assignment with GIG, and now we've got, you know, we're likely going to have when we complete it, 100% of GIG.

Who is our president of international with Shaw.

<unk> also joined US with no job and now we've got it first assignment with G. I G and now we've got.

You know we are likely going to have when when we completed a 100% of G. I G.

Speaker 1: This is the investment team. These centralize again, and you can see the investment caberri. There's

This is the investment team decentralized again and you can see the investment committee there's.

Speaker 1: 5 and 3, 8 of us in the investment committee. Big, big plus, but see the number of years, of course.

Five and three eight of us and the investment Committee Big Big plus but see the number of years of course.

Speaker 1: Brian Bradstreet and Roger Lace myself have worked together for a long time, almost all 37 years.

Brian Bradstreet and Roger Lace myself have worked together for a long time, almost all 37 years.

Speaker 1: But Chandran and Wade Burton, 15 years, Wade Burton and Lawrence are the two who are taking our investment organization forward. And you can see all of the other people who have worked with us for a long time. Um...

But chandran in and Wade Burton 15 years, Wade Burton and Lawrence RB two who are taking our investment organization forward and you can see all of the other people who have worked with us for a long time.

Speaker 1: Just a few more slides and we'll open it up for questions. US Treasury rates. This is a fascinating slide. I've shown it to you before. In 1982, 14.8%.

Just a few more slides and now and we'll open it up for questions U S. Treasury rates, let's say a fascinating slide I've shown it to you before.

In 1982.

At 14.8% 30 year bonds.

Speaker 1: So what if you own those bonds, US Treasury bonds?

So what if you tour if you own those bonds U S treasury bonds.

Speaker 1: and held them all 40 years.

And held them all 40 years.

Speaker 1: Your rate of return would be something like 14.3% more than 14%

Your rate of return would be something like 14, 3% more than 14%.

Speaker 1: And how about the S&P 500? If you had all of these pluses, the S&P would have given you 11%.

And how how about the S&P 500, if you had all of these pluses that S&P would have given you 11%.

Speaker 1: The best credit in the United States, the least risky, but I've given you 14%. But you'd have to hold it for 40 years, almost no one did that. I know a couple who did, but...

The best credit in the United States, the least risky without giving you a 14%, but you'd have to hold it for 40 years almost no. One did that I know a couple of dead, but by it and just hold it and you'd have had a 14% compound or do you have to buy a strip on.

Speaker 1: buy it and just hold it and you'd have had a 14% compounded you have to buy a strip on where you strip the coupons and you'd get 14% compounded and I was there with Roger and Brian and no one wanted to buy treasuries at that time because they thought inflation would never come down. Today

And when you strip the coupons and you to get 14% compounded and I was there wed Roger Brian and no. One wanted to buy dredge reached at that time, because they thought inflation was never come down today.

Speaker 1: that interest rates are very low. They've gone up to 4% and no one thinks inflation will go up. It's an interesting situation because we had 40 years of interest rates going up from 1940 to 1982.

Interest rates are very low they've gone up to 4% of no one thinks inflation well.

Go up so interesting.

Our situation because we had 40 years of interest rates going up from 1940 to 1982.

Speaker 1: 40 years coming down and If history's any guide maybe the next 40 years will be different from the previous 40

40 years coming down and.

If history is any guide may be the next 40 years will be different from the previous 40.

Speaker 1: One thing we never took part in was tech stocks and cryptocurrency. Now the speculation, this is list, have mentioned it to you before. Here's what happened from the 2021 high of all of the big companies. And some of these big companies have got

One thing we never took part in was tech stocks in crypto currency now the speculation this is list.

I mentioned it to you before.

Here's what happened from the 2021 high of all of the big companies and some of these big companies have got 300 billion in sales 400 billion and sell the so called Fang stocks and for them to grow at even 10% you've got 400 billion in revenue, 10% at $40 billion in a year.

Speaker 1: 300 billion in sales, 400 billion in sales, the so-called Fang stocks, and for them to grow at even 10 percent.

Speaker 1: You know, you got 400 billion in revenue, 10% of 40 billion in a year. Not easy.

Not easy.

Speaker 1: They've achieved it though over time. And we just shy away from things like this because in our minds, this is not over yet. There's some way to go. And if the dot com crisis was any standard, there's a lot more to go before it ends. And I'll be happy to talk about it, not Q&A.

They've achieved it over time.

We just shy away from.

Like this because.

In our minds.

This is not over yet there's some way to go and if the dotcom crisis was any.

Any.

Standard.

A lot more to go before it ends and they'll be happy to talk about it in our Q&A.

Speaker 1: For us though in the dot com 99 to 2002 you can see all the indices drop and our portfolios went up 100%

For us, though in the Dotcom 99 to 2000 until you can see all the indices drop and portfolios went up 100%.

Speaker 1: And we'd like to thank Value Investing is coming back and our position will be similar. This just shows you the portfolio and the fact that we've extended our duration in 2023 with US freshries, the best credit in the world. Lots of our money is in the US, but if it's not, create a government bonds and other government bonds in other countries. And...

And we'd like to thank value investing is coming back and.

Our position will be similar.

Shows you the portfolio and the fact that we've extended our duration in 'twenty to 'twenty three with U S treasuries, the best credit in the World.

Lots of our money is in the U S, but if it's not Canadian government bonds and other government bonds and other countries.

And.

Speaker 1: And so that's how we've told you that we can get 1.5 billion for the next three years. Investments in India, we've got invest-

And so that's how we've told you that we can get 1.5 billion for the next three years.

Investments in India, we've got to invest.

Speaker 1: Fairfax India in the afternoon will talk about that, but I've just highlighted here an update for you. Happy to answer any questions. Our presidents are there. Motherland Manon, who runs Thomas Cook, Chandran of course from Fairfax India.

Fairfax, India in the afternoon will talk about that but I've just highlighted here an update for you happy to answer any questions. Our president's are there.

Martin One man and no runs a Thomas Cook chairman of costs from Fairfax, India.

Speaker 1: digit Kamesh Koyal done a phenomenal job and not here He had to stay in India Quest Ajit Isaac is here and the others you can see

Digit come.

<unk> done a phenomenal job.

And not here.

He had to stay in India crushed Ajit Isaac is here and the others you can see.

Speaker 1: Digit is a significant investment for us. It's been an outstanding year for digit. Gross premiums are 50% to 900 million. 22 was again.

Digital is a significant investment for us has been an outstanding year for digit gross premiums up 50% to $900 million.

92 was again it's profitable.

Speaker 1: 10% return an equity, something like that. Entered Fortune, India's magazine, ranking of 500 largest companies. It's five years old, started from scratch, zero.

10% return on equity or something like that.

Entered fortune India's magazine.

Ranking of 500 largest companies is five years old started from scratch zero and file documents has filed documents for an IPO. So we can't talk a lot about it but huge opportunity for digital I can't show you. The same slide I showed you previously India is the admit them because I missed.

Speaker 1: And file documents, it's file documents for an IPO. So we can't talk a lot about it, but huge opportunity for digit. I can't show you the same slide. I showed you previously. India is a bit, because of Mr. Modi, is a land of opportunity. I've talked to you about it.

<unk> is a land of opportunity I've talked to you about it the industry premium today is about 32 billion in India.

Speaker 1: The industry premium today is about 32 billion in India.

Speaker 1: for the whole 1.31.4 billion. It's growing at 15% compound, it likely go faster. That takes it to 1.30 billion. And Kamesh is thinking that he'll have a 5% share, grow at 22%.

For the whole 131 4 billion. It is growing at 15% compounded likely grow faster that takes it to 130 billion and commission is thinking that 11, 5% share grow at 22% for those.

Speaker 1: for those, during that time, next 10 years, and you'd have six and a half billion, not unreasonable, and it's all digitized, and you've got a smart insurance guy running it. It's not a tech guy, even though the name is digital, digit, it's an insurance fellow running it, steeped an insurance. This is our, bilber Buddy.

During that time next 10 years and he would have $6 5 billion not unreasonable and it's all digitized and and you've got a smart insurance Guy running it is not a tech guy.

Even though the name that's digital.

Digit.

It's an insurance fellow running at steeped in insurance.

This is a.

Speaker 1: long-term rate of return. It just shows you that we've got 7.7% since inception. And more recently, I returned, so I've started to go up, not in 22, but we think over time.

Long term rate of return and it just shows you that we've got 7.7% since inception.

And more recently our returns.

Started to go up not in 'twenty, two but we think over time.

Speaker 1: This shows the white line when the white line shows you when value is doing well or not well and the red is showing you growth stocks.

This shows the white line is when.

The White line shows you went value, it's doing well or not well and the red is showing your growth stocks and.

Speaker 1: And that just shows you that value is...

This just shows you that value is now coming back.

Speaker 1: Now coming back from 2021, 21 with the first year it came back, 22, a little bit of a drawup. And we think if you look at this in the next five years. Oh.

2021 'twenty one was the first year it came back 22.

A little bit of a.

Drop and we think if you look at this in the next five years.

Speaker 1: value will come back significantly and perhaps tech stocks and growth stocks, all of that will come down a lot more than they have already.

Our value will come back significantly in and perhaps tech stocks and growth stocks all of that.

Come down.

A lot more than they have already.

Speaker 1: A financial position is very strong. I told you that we're going to refinance a couple of bond issues that we have, but nothing more to add there. I offer S17.

Our financial position are very strong.

I told you that we are going to.

Refinance up in a couple of bond issues that.

We have but.

Nothing more to add there.

<unk> 17.

<unk>.

Speaker 1: This counting is going to be taking place. We didn't have a choice. You have to discount. We don't think it's a good idea, but...

Discounting is going to be taking place we didnt have a choice you have to discount we don't think it's a good idea but.

Speaker 1: They didn't ask us about it. And I, for our 17 discounting, and so it'll be presented. We give an estimate, we got it so significant. It increases our common share and those equity by $2.2 billion.

They didn't ask us about it.

And Ifr 17, discounting and so it'll be.

Did we give an estimate because it's so significant it increases our common shareholders' equity by $2.2 billion.

Speaker 1: And that's about $94 a share. And

And that's <unk>, that's about $94 a share.

Speaker 1: actual discounting takes it up by 4.7 billion, but then we have a risk margin of 1.7 that takes 4.7 less 1.7 that gets you three and then taxes and other 0.8 gets you the 2.2 billion. So we think we're being very conservative in terms of the discounting and this is like a one time effect because we've never had discounting in the past.

And actual discounting takes it up by $4 7 billion, but then we have a risk margin of 1.7 that takes 4.7 less 1.7, let's get you three and then taxes and other 0.8 gets you. The 2.2 billion. So we think we're being very conservative and <unk>.

Terms of the discounting.

And this is like a one time effect because we've never had discounting in the past others might've had been discount in Canada, and Australia and some other countries none in the U S and.

Speaker 1: others might have had that have been discounted in Canada in Australia, some other countries, none in the US. And um...

<unk>.

Speaker 1: but this is a very significant impact. So that's why we announce it. But we will run our company on the old metrics, no discounting, a combined ratio, good reserving, all of that, and the way that we've done it for 37 years.

But this is a very significant impact so that's why we announced it but.

But we will run a company on the old metrics no discounting.

Our combined ratio a good reserving all of that and the way that we've done it for 37 years.

Speaker 1: Galfin Chawns Group, just wanted to highlight for you. We have 43.744%. We bought the 46% that we don't own. We've been with this company for 12 years, 2010. Combined ratio, 94% return on equity on average, 15%.

Gulf Insurance group just wanted to highlight for you.

We have 43.7, 44%, we bought the Florida at the 46% that we don't own.

We've been with this company for 12 years 2010, combined ratio, 94% return on equity on average 15%.

Speaker 1: Yeah, we paid 860 million, 200 million unclosing, four annual payments, 165, which we think.

We paid $860 million $200 million and closing four annual payments 165, which we think.

Speaker 1: perhaps the dividends from the company from from Galfin Jones Group will largely pay for that.

Perhaps the dividends from the company from.

From Golf Insurance group will lodge.

Largely pay for that and we.

Speaker 1: And we have to make a, once we close this, we have to make a similar offer for the 10%. So it might take six months before it happens. Very excited about it. We know the people, very strong. We have Khaled here and Paul Adams. And are they with us here? Let's give them a nice warm welcome, Khaled and Paul Adams. Let's get something.

We have to make us a bunch, we closed as we have to make a similar off over the 10%. So it might take six months before it happens very excited about it we know the people very strong.

We have Colette here and Paul Adams and are they with US here, let's give them a nice warm welcome Carla then ball items.

Speaker 1: So we're very excited about that. Happy to talk to you about it. And finally, last slide is to tell you that business, my experience over 37 years.

So we're very excited about that the happy to talk to you about it and finally last slide.

Is to tell you that business my experience over 37 years is that business can be a force for good. So he has a small example.

Speaker 1: is that business can be a force for good. So here's a small example in Fairfax, 37 years cumulative, we've written premiums of $229 billion. That's gross written premium.

In Fairfax 37 years cumulative we've written premiums of $229 billion. That's gross written premium from that you have to take a reinsurance out and then you have to look at the claims we paid claims.

Speaker 1: From that you have to take a re-insurance out, and then you have to look at the claims. We paid claims.

Speaker 1: for companies and individuals with 120 billion dollars. So you have something that you do for as a service, 120 billion cumulative. Annual salaries, every year we pay two billion to our employees all over the world. Two billion annual salaries made cumulative donations as you see, 288 million. Bill.

For companies and individuals $120 billion. So you have something that you do for as a service 120 billion cumulative annual salaries every year, we pay $2 billion to our employees all over the World 2 billion in annual salaries made cumulative donations as you'll see.

288 million.

Pay taxes, I forgot about that than years past now I'm remembering $4 3 billion since inception to countries, where we do business and of course for our shareholders. We grow book value by 18, 5% since inception, and we've done all of that with a fan friendly culture, which is our biggest.

Speaker 1: I forgot about that then years passed now I'm remembering 4.3 billion since inception to countries where we do business and of course for our shareholders we grow book value by 18.5% since inception and we've done all that with our fair friendly culture which is our biggest, biggest plus

Speaker 1: So ladies and gentlemen, that's the presentation I had for you. And, so, with that,

The biggest plus so ladies and gentlemen, that's our presentation I had for you and.

So with that I will.

Speaker 1: I will open it up, I have the lights go up.

Open it up the lights go up.

Speaker 1: We can have, we have Mike, sure you have.

And.

We can have.

We have Mike Shea or you have.

Right, we have let me see we have.

Speaker 1: Yeah, one, two, three, four mics. And this is a shareholder's meeting. So we're happy to answer any and every shareholder's you have. Any question you may have. And then Jeff is right there where he will take questions from the from the net. And so...

Yeah, 1234 mics and this is a shareholders' meeting so we're happy to answer any and every shareholders. You have any question you may have and then Jeff is right there where he will now take questions from the from the net and so.

<unk>.

Speaker 1: Let me just get organized here for a second. And that is very good. So we start with number three. I notice a gentleman there, so please say who you are. And...

Let me just get organized here for a second and.

That is very good so we'd start with.

Number three I didn't notice a gentleman there so they say who you are and.

Speaker 1: And your question. I've ran Trevor Scott in Tideball Capital.

And your question Bryan, It's Trevor Scott and Titanfall capital.

Speaker 1: Fairfax nailed the, you know, duration risk that the other companies missed. And I noticed you said you were extending duration now. I just wanted your thoughts on a company like

Fairfax nailed the.

Duration risk that the other companies missed and I noticed you said you were extending duration now.

I just wanted your thoughts on a company like <unk>.

Speaker 1: Silicon Valley Bank that wasn't able to do it properly, and if that's having credit ramifications through the economy. You know.

What was the Silicon Valley Bank that.

I wasn't able to do it properly and if that's having credit ramifications through the economy.

I see.

Speaker 4: a few points there. We didn't reach for yield. One of the big things we did, and we looked pretty stupid, right? Like our returns were very low, but we just didn't want to reach for yield. If you are focused on the short term, and you're looking at quarterly results, you had to have reach for yield. Very difficult, not.

A few points that we didn't.

Reached for yield one of the big things, we did and we look pretty stupid right like our returns were very low and but we just didn't want to reach for yield. If you was focused on the short term and you are looking at quarterly results you have to reach for yield very difficult not to right because you wouldn't have met.

Speaker 4: Right? Because you want to met your quarterly projections. We never had that. And...

You wouldn't have met your quarterly projections, we never we never had that and.

So the effect I showed you on people, who did reach for yield and we think it's not over yet.

But the other side of it is.

In the insurance business, they say it's matching.

So unless in the banking side.

Speaker 4: Silicon Valley Bank, the deposits flew out 42 billion in one day and so they had to sell and take a realized loss.

Silicon Valley Bank the deposits flew out 42 billion in one day and so they had to sell and take a realized loss the insurance business unlikely. They would take a realized loss. You mean, you might have a big catastrophe or something like that that will force.

Speaker 4: The insurance business unlikely they would take a realized loss. I mean, you might have a big catastrophe or something like that. That'll force people to take a loss. But those drop in book values, all that can happen with discounting in the Europe is that comes back up some.

People have taken a loss.

But.

Those drop in book values, all of that can happen with discounting in the Europe as that comes back up some may come up come back up to what it was.

Speaker 4: come back up to what it was. But the rating agencies have not reacted to that.

But the rating agencies have not reacted to that.

Speaker 4: But it has been as I showed you, very significant.

But it has been as I showed you a very significant and.

Speaker 4: Yeah, I'd, you know, register and react to it. And one of the biggest pluses, but that's business. You know, businesses like that. One of you might ask a question on Atlas, and Atlas, what they've done, but David Sokol and Ben Cheng, is this phenomenal? You get the opportunity and you have to react. And that's what's happened to us in the last three, four years. You show the premiums went up and we didn't.

Yeah.

We just didn't react to it and one of the biggest pluses, but that's business.

This is like that.

One of you might ask a question on Atlas and Atlas of what they've done with David Sokol and Bank Chang.

As a phenomenal you get the opportunity and you have to react and that's what happened to us in the last three or four years you show the premiums went up and we didn't.

Reach for yield and then suddenly on investment income goes from 500 million to a billion and a half and goes there for three years.

Speaker 4: And then suddenly, an investment income goes from 500 million to a billion and a half and goes there for three years.

Speaker 4: that we've locked up. And then if the spreads widen, you get another three, four, five years, and we might get more than a billion and a half, right? So you've got the possibility, but it all changed in a few years, but you have to take that.

We've locked up and then if the spreads widen you got another 345 years, and we might get more than a billion and a half right. So you've got the possibility, but it all changed in a few years, but you have to take that take.

Speaker 4: take the head in meaning not meet analyst projections or whatever because we're building our company a good company for the long term. Thank you for your question and I go to another

Take the head and meaning not meet analysts projections or whatever because we are building a company a good company for the long term.

Thank you for your question and I go to number four.

Speaker 5: Thank you very much, Fairfax for everything. My question is regarding many years ago, I think six, seven years ago, Mr. Vassa mentioned that you like to keep one billion dollar in company, holding company level. And now the company is almost...

Thank you very much Fairfax, where everything my question is regarding many years ago I think six seven years ago. Mr. Also mentioned that you like to keep $1 billion in company or holding company level and no. Other company has almost tripled so if their doctor is jeet I.

Speaker 5: So if that target is changed, I don't see that. So that's a very, very good question. And it's about still about a billion. Why? Because we're growing. This growth that I told you.

I don't see that so that's a very very good question and that it's about still about 1 billion.

Why because we are growing this growth that I told you.

Speaker 4: 11 billion dollars of growth that needs capital. So if we don't grow, the dividends come through to our company. And we think we have to raise our billion to a billion and a half, maybe two billion in time. But there is no question that number has to go up.

$11 billion of growth that needs capital so.

If we don't grow the dividends come through to our company and we think we have to raise a billion two 1 billion and a half maybe $2 billion in time.

But there is no question that number has to go up.

But right now you know to raise that number and not take advantage of our growth doesn't come it's very.

Speaker 4: you know, to raise that number and not take advantage. How great doesn't come. It's very, you know, in 10 years you might have two or three years.

And 10 years, you might have two or three years. So when you have that possibility of growth our president.

Speaker 4: So when you have that possibility of growth, our presidents put the pedal to the metal and wrote a ton of business.

Pedal to the metal in and wrote a ton of business and and you got to do that.

Speaker 4: and you got to do that. But what you're saying is what we're always thinking about. And we've got a billion. Then we've got some investments that might add another billion.

But what Youre, saying is what we're always thinking about and we've.

We've got $1 billion and then we've got some my investments that might add another billion dollars. So.

Speaker 4: No

Very sound no maturities.

Speaker 4: for some time bond maturities, we don't have any bank debt, and we got a bank line of $2 billion unused, right, for problems, not for opportunity. And so, but your points were taken, we've got that very well in our minds. Thank you for that question. We'll come to number two.

For some time bond maturities, we don't have any bank debt and we got a bank line of $2 billion unused right for problems not for opportunity.

And so but.

But your point's well taken we've got that very well in our minds. Thank you for that question.

We'll come to number two.

Prime Frank factor a longtime shareholder.

Speaker 4: My question is with regards to capital allocation.

My question is with regards to capital allocation we.

Speaker 4: We see the huge impact you've had on buying back and canceling shares, how it's impacted our per share earning.

We see the huge impact you've had on buying back and canceling shares how it's impacted our per share earnings and now as you said the company has been transformed mostly because of the incredible performance of the insurance division in A&D.

Speaker 4: And now as you said, the company has been transformed mostly because of the incredible performance of the insurance division in Andy.

Speaker 4: And we're going to see three billion a year in operating income. How do you decide what to do with that with respect to buying back shares?

And we're going to see 3 billion a year in operating income how do you decide what to do with that with respect to buying back shares.

Speaker 4: Paying down debt, what we have, six or seven billion in debt.

Paying down debt, what do we have six or $7 billion in debt.

Speaker 4: I know you've said no more acquisitions. All the growth will be internal. And.

I know you've said no more acquisitions, all the growth will be internal.

And.

Speaker 4: Does the share buybacks, are they contingent on the shares trading at book value or less?

Does the share buybacks are they contingent on the shares trading at book value or less so that's a terrific question and I mentioned years ago that my hero was a guy by the name of Henry Singleton.

Speaker 4: So that's a terrific question. And I'd mentioned years ago that my hero was a guy by the name of Henry Singleton.

Speaker 4: He took 10 million shares in the 60s, went to 100 million in 1972, 73, and then he took it down to 12 million and 8687. 12 million.

He took 10 million shares in the sixties went to $100 million and 1970 273, and then they took it down to 12 million and 80 680 $712 million.

Speaker 4: dropped it by 85%. And he was buying shares and people were selling it. And he was buying shares. And so our first alternative right now is buying by Karshak. So, our stock's gone up a little right, $900 and $1.00 Canadian. But it's still below book value. And so we bought close to 400,000 shares last year. We bought two million shares before.

Drop it by 85% and now <unk>.

He brings a with bankshares and people who are selling it and he was buying shares in and so our first alternative right now is buying back our shock. So our stock has gone up a little right 9900, an odd dollars Canadian.

But it's still below book value and so we bought close to 400000 shares last year, we bought 2 million shares before <unk>.

Speaker 4: And I told you, so, you know, an interesting way to look at it as we paid, we issued five million shares to buy Allied.

And I told you. So you know in an interesting way to look at it as well.

We paid we issued 5 million shares to buy Allied world and.

Speaker 4: and we basically bought 4.5 million of that five. And so we think the best thing we can do for our shareholders is buy. We can't.

And we basically bought for $9 million of that five.

And and so we think the best thing we can do for our shareholders is by we can't.

Speaker 4: We have no impact on the stock, right? Like stock trades and I bought some shares in 2020 and I thought I'd tell Shell, it looks as incredibly cheap.

We have no impact on the stock right like stock trades in.

I bought some shares in 'twenty, 'twenty and I thought I'd tell shareholders is incredibly cheap well I'd say there are no perhaps went lower and so we can have no impact other than by our actions by the shares.

Speaker 4: Well, it stayed there and perhaps went lower. And so we can have no impact other than by our actions, by the shares. But I must tell you like our opportunity, I've been here 37 years, right? We've never had an opportunity set like we have now.

But I must tell you like our opportunity.

<unk> 37 years right, we've never had an opportunity set like we have now.

Speaker 4: And but you can't so we're buying TIJ.

And but you can't so we're buying G I G.

Speaker 4: You couldn't have forecasted that. At last year's annual meeting, if we were sitting down here, you couldn't have forecasted that. I'd choke and say we are strategy, complicated strategy is waiting for the...

You couldn't have forecasted that at last year's annual meeting if we were sitting down yeah, you couldnt forecast that I.

I choke and shape our strategy.

Complicated strategy is waiting for the telephone to ring.

Speaker 4: And it rang. Six months ago it rang and this lady was running it now, said she was looking to sell the whole thing.

And it rang six months ago, It rang and the Lady who is running it now said she was looking to sell the whole thing.

Speaker 4: And, you know, and they had no hurry and they're good partners of ours, but they needed it for other things. And so we worked a deal and we, you know, we were able to do it yesterday and came out with a press release. And we...

And Oh, and they're no hurry and there are good partners of ours, but they needed it for other things and and so we worked a deal it would be.

You know, we're able to do it yesterday and came out with a press release and we.

Speaker 4: If you've ever gone to the Middle East, but the Middle East is booming.

If you've ever gone to the mirror some of you have gone to the middle East, but the middle East is booming.

Speaker 4: Dubai is the standard. And so Saudi Arabia, I don't know this, I'm just guessing, but they're looking and saying, if Dubai can do it without any oil, we've got tons of oil and we should be doing it. And so you're seeing,

Dubai is the standard and so Saudi Arabia, I don't know this I'm, just guessing, but theyre looking at saying of Dubai I can do it without any oil we've got tons of oil and we should be doing it and.

So you are seeing.

Hum.

Speaker 4: I was there in Bahrain and in Kuwait. I mean, you wouldn't believe the buildings going up and the economic development. And we.

I was there in.

Bahrain and and.

In Kuwait.

You wouldn't believe the buildings going up and the economic development and we G. I G with Axa Gulf, which we bought about a year and a half ago.

Speaker 4: TIG with Axigal, which we bought about a year and a half ago, will be, we have another biggest, if not the biggest property cash you can, companies in 14 countries.

It will be we have another biggest if not the biggest property casualty can.

Companies in 14 countries in that area. So my only point is that you cant say, but we were able to do this with no share issuance right. So we're not going to be issuing shares to buy things well buy a thing here and there you know in.

Speaker 4: in that area. So my only point is you can't say, but we were able to do this with no share issue.

Speaker 4: So we're not going to be issuing shares to buy things. We'll buy a thing here and there, in different countries Latin America or Asia, we're a small, but we're not going to issue shares. Because we want to really buy back stock. But we have to be financially sound. That question was very good where you have to raise the cash that we have for the potential problems which you can't see. I mean, 2020, 180, COVID-19.

Different countries, Latin America or Rob.

Asia, where we're small.

But we're not going to issue shares because we wanted to really buy back stock, but we have to be financially sound that question was very good where you have to raise the.

Cash that we have for the potential problems, which you can see I mean, 'twenty 'twenty 180 of COVID-19.

Speaker 4: A hundred and eighty countries stopped doing business, right? The hundred and eighty countries were closed down. And we had...

180 countries stopped doing business right. The 180 countries are closed down.

And we had at.

Speaker 4: at the conference, investor conference that George at the Nassaukel had yesterday, and I was happy to introduce Vicki Holub, who runs oxidative petroleum. And she says,

At the conference Investor Conference that George Aetna's, Soccer's had yesterday and I was happy to introduce Vicki Holub, who runs Occidental petroleum and she says.

Speaker 4: Never before this happened, the oil consumption dropped by 15 million barrels a day.

Never before this happened the oil consumption dropped by 15 million barrels a day.

Speaker 4: And the praise of oil you'll remember when negative. And she had just bought a massive company called Indarkova Petroleum.

And the price of oil remember went negative and she had just bought a massive company.

They called Endako petroleum.

Speaker 4: And she had to cut the dividend and survive. But...

And and she had to cut the dividend and survive but.

Speaker 4: But this is the type of thing that can happen. So you have to be financially sound and just be flexible. And we have a wonderful management team here that you'll hear from. And we're so fortunate to have that. And they've been with us. It's such another thing after a long period of time you recognize.

But this is the type of thing that can happen to you have to be financially sound and just be flexible and we have a we have a wonderful management team here that you'll hear from and we're so fortunate.

To have that and they've been with us as such and another thing.

After a long period of time, you're recognized the sustainability of our company. When you have the same management, all the time and and they work so well together, whereas companies other companies might.

Speaker 4: the sustainability of a company when you have the same management all the time. And they work so well together. Companies, other companies might...

Speaker 4: Get CEO or get the president out from another company. We'll never do that. Like one of the things I said to our board is we have to make an internal, starting from May, internal, each of our president's internal. You know, you saw Brian Young, he's helping Andy, and you saw his internal all-formaracy, not from Chrome or infrared, it was all-formaracy. So that's what we're focused on.

Get our CEO I'll get the president out from another company will never do that.

One of the things I've said to our board as we have to make it internal starting from May and tunnel each of our President's internal you saw Brian young.

He's helping Andy in your so his internal all from Odyssey not from Cromwell.

And Brett It was all from Odyssey. So so that's what we're focused on.

Speaker 6: Joe, peace go right there. So we've seen our share price trade at 3, 4, 100% of book value or more. Is there a certain trigger point where you wouldn't buy back shares and you would look at alternatives like paying off debt?

Joe.

Colorado, we've seen our share price traded three for 100% of book value or more is there a certain trigger point, where you wouldn't buy back shares and you would look at alternatives like paying off debt.

Speaker 7: Yeah, you know, we're not, our debt positioned really given that we have cash in the holding company and some other investments. And our shareholders equity is very under serious. So in that, these...

Yeah, Yeah yeah.

We're not I did position really given that we have cash at the holding company and some other investments.

Our debt and shareholders equity is very.

Very agitated, so and that decentralized.

Speaker 4: Try to add, you know, not bridge, add a C, add light.

China had you know Northbridge Odyssey Allied.

Speaker 4: I'm just using this and there will never happen. But if you take one company, say we take Odyssey.

I'm, just using that sort of it never happened, but if you take one company's therapeutic Odyssey.

Speaker 4: and you spell honesty, we'd be that afraid. One company, no unpacked on the other companies. So we're very strong financially. When you look at the structure, you can't say that of other companies.

And you sell Odyssey, we'd be debt free one company.

The others not no impact on the other companies. So we're very strong financially when you look at the structure you can say that of other companies.

Speaker 4: You know, they don't have that flexibility. We have that flexibility. And, um,

You know they don't have that flexibility, we have that flexibility and.

Speaker 4: That debt position will over time come way down. But it's all bonds, pay your interest, pay your principal. And we don't like to keep two or three years, no maturedies for two or three years.

That debt position.

Well over time come come our way down, but it's all bond payer interest pay a principle and and we don't like to keep two or three years.

No.

No maturities for two or three years, but but thank you. Thank you very much hey, Jeff.

Speaker 4: But thank you, thank you very much. Hey, Jeff.

Speaker 4: I almost forgot you. Our first question is about the insurance companies. Please comment on the current underwriting environment for insurance and provide an outlook for our company.

And I almost forgot to you.

Our first question is about the insurance companies. Please comment on the current underwriting environment first insurance and provide an outlook for our companies Wow. That's a that's fantastic because I got to tell you and I've said this 10 times, if ive said it once that company have changed dramatically.

Speaker 4: Well, that's, that's fantastic because I gotta tell you. And I said this 10 times if I said it once. The company has changed dramatically.

Speaker 4: and he but not been with us for twenty seven years he helped build a Odyssey then passed it to brine young we brought with them twenty seven years ago so they've known each other for twenty seven and he reminded me he knew him even before that another four five years

Holly antibody has been with US for 27 years. He helped build the Odyssey then pass it to Brian Young who he brought with him 27 years ago. So they've known each other for 27 and it reminded me knew them even before that another four or five years. They might've said started very young Brian seller.

Speaker 4: They might have started very young, Brian Cillox very young. But Andy is at a phenomenal job. He took over for all the companies. The company is the report to me and others at Fairfax.

Blacktop, but Andy has done a phenomenal job he took over when.

Of all our company the companies as they report to me and others at Fairfax and the best thing we did in about 2010, we pass it on to Andy and Peter Clarke to all our companies report to the two and you have seen phenomenal track record in terms of growth.

Speaker 4: And the best thing we did in about 2010, we passed it under Andy and Peter Clark.

Speaker 4: two, all our companies report to the two and you've seen phenomenal track record in terms of growth. You've seen a phenomenal track record in terms of combined ratios and in terms of reserving. So with that, when we get Andy to the podium, Andy.

I've seen a phenomenal track record in terms of combined ratios and in terms of reserving so with that why don't we get Andy to the podium Mandy.

Speaker 4: Get my knife out of the floor. Thank you, thank you, Brent, for that introduction.

And I kind of apply.

Thank you. Thank you Graham for that.

Introduction.

Speaker 8: I'll let some of the other CEOs comment more specifically about the conditions in their markets, but what I'd like to do is to return to one of the slides that Prem showed you here that included us in the top 20 global property casualty groups, which of course we're very proud of and very happy about.

I'll, let some of the other Ceos comment more specifically about the conditions in their markets, but what I'd like to do is to return to one of the slides that prem.

So you hear that included us in the top 20.

Global property casualty groups, which of course, you know, we're very proud of and very happy about but.

Speaker 8: But I really look at that a little bit differently because if you take a closer look at that list and then limit it to those companies that we really compete with.

I really look at that a little bit differently.

Cause if you take a closer look at that list. It in limited to those companies that we really compete with <unk>.

Speaker 8: So if you take out the giant personal lines companies, if you take out the Chinese companies, the Japanese companies, what it shows you is that we're actually the 12th largest global property casualty group in the world.

So if you take out the giant personal lines companies, if you take out the Chinese companies the Japanese companies.

What it shows us that we're actually the 12th largest global property casualty group in the world.

Speaker 8: which to us is just fantastic considering where we came from, how we've grown, how we've developed.

Which to.

To us, it's just fantastic considering where we came from how we've grown how we've developed.

Speaker 8: And, you know, Prem showed the growth rates of all these companies. You know, we were 60% higher than the next highest growth rate among that universe of companies all included. You know, to us, that's just spectacular. And the most important fact is that that has all happened when rates were surging.

And you know Prem showed the growth rates of all these companies.

You know, we were 60% higher than the next highest growth rate among that universe of companies all included.

To us that just spectacular.

And the most important fact is that that has all happened when rates were surging.

Speaker 8: that we took advantage of market conditions, the companies that had much lower growth rates. They were the ones that gave us the opportunity, because they had been more aggressive in the past. They were in a mode of contraction, of pulling back. And this is what created the opportunity that we were just ideally positioned to take advantage of.

That we took advantage of market conditions, the companys that have much lower growth rates. They were the ones that gave us the opportunity because they had been more aggressive in the past they were in a mode of contraction or pulling back and this is what created the opportunity that we were just ideally positioned to take advantage of.

Speaker 8: You know, in my experience in this industry, there's really nothing more important than effective cycle management.

In my experience in this industry.

There's really nothing more important and effective cycle management, which means that we expand when the markets are supportive when conditions are strong when rates are going up.

Speaker 8: which means that we expand when the markets are supportive, when conditions are strong, when rates are going up, when there's less competition. That's the time to expand.

When Theres West competition, that's the time to expand.

Speaker 8: When things turn around, when there's more competition, when conditions are softening, everyone wants to chase the business, that's a time to be more cautious into pullback. We've come through a period where the opportunity has been right for many of our companies. We've been able to take advantage of that and really just bolt our way into the top group of global property casualty companies as a result.

When things turn around when Theres more competition when conditions are softening everyone wants to chase the business. That's the time to be more cautious into pullback we've come through a period, where the opportunity has been rife for many of our companies we've been able to take advantage of that and really.

Just bought our way into the top group of global property casualty companies as a result, and because we're on the right side of this cycle management.

Speaker 8: And because we're on the right side of this cycle management.

Speaker 8: You know, our companies are on the right path. The path to long-term, sustainable underwriting profitability is managing that underwriting cycle effectively.

Our companies around the right path a path to long term sustainable underwriting profitability is managing that underwriting cycle effectively.

Speaker 8: And we're just thrilled that all of our companies are on that path right now. We're on the right side.

And we're just thrilled that all of our companies are on that path right now we're on the right side.

Speaker 8: You know, we've had great growth rates over the last several years.

You know we've had great growth rates over the last several years.

Speaker 8: We know that's not going to continue at that level. We're going to continue to have opportunity. There are going to be some areas where there'll be the opportunity for us to continue to expand. But competition is returning in some of the areas that we're most important in our growth. And we're going to become more cautious. We're not going to chase the business.

We know that's not going to continue at that level, we're going to continue to have opportunity, they're going to be some areas where there'll be.

The opportunity for us to continue to expand but but competition is returning and some of the areas that were most important in our growth and we're going to become more cautious we're not going to chase the business.

Speaker 8: Underwriting profitability at the end of the day is the real objective of what we're doing.

Underwriting profitability at the end of the day is the real objective of what we're doing.

Speaker 8: And, you know, we've come through some fantastic years. We've been blessed with a fantastic and amazing group at CEOs. It understand.

And we've come through some fantastic years, we've been blessed with a fantastic an amazing group of Ceos you'd understand these concepts that I'm talking about here and you know.

Speaker 8: these concepts that I'm talking about here. And the reason we're so optimistic about the future, Prem can predict with a high degree of confidence.

The reason, we're so optimistic about the future you Prem.

Graham can predict with a high degree of confidence.

Speaker 8: You know, that we should have some very good years ahead of us. Of course, no guarantees, anything can happen in this business in this world, but, you know, we couldn't feel better about how we stand today. And...

You know that we should have some very good years ahead of us.

Of course with no guarantees anything can happen in this business in this world but.

You know, we couldnt feel better about how we stand today.

And.

Speaker 8: So, you know, this has been a wonderful time for us up to this point. You know, we're very optimistic as we go through 2023. And you know, it's really down to these folks here that run our companies, that understand all this stuff. And you know, with that, let me hand it over to my friend Brian Young. And he can tell you a little bit more about Odyssey and his perspective on the market.

So you know.

This has been a wonderful time for us up to this point, we're very optimistic as we go through 2023.

And it's.

Its really down to these folks here that run our companies.

Did understand all this stuff.

And you.

You know.

With that let me hand, it over to my friend, Brian Young and he can tell you a little bit more about Odyssey and his perspective on the market.

Speaker 4: Andy Bernad and Brian . Give him a big thumbs up. Thank you. Thank you Andy. Thank you Prem. I first met Prem 27 years ago and you looked a little younger than.

Andy Barnard and Brian .

Yes.

Yes.

Thank you Andy Thank you Prem.

First met Prem 27 years ago, and you looked a little younger done but.

Speaker 9: But Andy, Andy and I, we worked at Transray, another re-insurance company started working together. In 1989, he's been my boss, my mentor, my friend, for 33, 34 years. Best decision I ever made was coming to work with Andy on the underwriting side at Transray, and then joining him to come to the Fairfax.

But Andy Andy and I, we worked to Trans re are another another reinsurance company started working together in 1989. He's been my my boss My mentor My friend for 33 34 years.

Best decision I ever made was.

Coming to work with Andy on the underwriting side, a treasury and then joining him to come too to Fairfax, but echoing what's been said before you know it.

Speaker 9: But, you know, echoing what's been said before, you know, it has been a gross story at Odyssey. If you go back to 2016, our gross written premium was 2.4 billion.

Has been a growth story at Odyssey. If you go back to 2016, our gross written premium was $2 4 billion.

Speaker 9: And in 2022, we finished with 6.8 billion. A tremendous period of growth, really taking advantage of opportunity in the market. But with that growth has come consistent profitability, re-insurance markets, insurance markets are volatile. And in many years, it's tough to make a profit. Rates may not be adequate. We suffer from extraordinary losses, cats.

And in 2022, we finished with 6.8.

Billion, a tremendous period of growth really taking advantage of opportunity in the market, but what that growth has come consistent profitability reinsurance.

Reinsurance markets insurance markets are volatile and in many many years, it's tough to make a profit.

Rates may not be adequate we suffer from extraordinary losses cats.

Speaker 9: But for 11 straight years, we've made an underwriting profit. For us, we think that's the most important achievement accomplishment of our organization.

But for 11 straight years, we've made an underwriting profit for US we think that that's the most important achievement accomplishment of our organization over that period in 2000 $20 million to $230 million of underwriting profit of 96% combined ratio catch has been heavy the lag.

Speaker 9: over that period and 2022 on 230 million of underriding profit and 96% combined ratio. You know, cats have been heavy the last five years and just focusing on on the reinsurance. The reinsurance market has lost money over the previous five years of from cats. But we were able to buck that trend and make a profit.

Two five years, and just focusing on the reinsurance reinsurance market.

It has lost money over the previous five years off from cats, and but we were able to buck that trend and make a profit we had a 96% combined ratio in 2022.

Speaker 9: We had a 96% combined ratio in 2022.

Speaker 9: It was a heavy cat. Your cat added about two and a half points.

It was a heavy cat year catch added about two and a half points over and above expectation to our combined ratio. So if we had normalized cat experience our combined would have come in.

Speaker 9: over and above expectation to our combined ratio. So if we had normalized cat experience or combined would have come in at 93 and a half.

At 93 and a half.

Speaker 9: As we move forward in 2023 and beyond it, I would say and furthering what Andy said, growth is not gonna continue at a pace. We grew 19% last year.

As we move forward in 2023 and beyond that you know I would say and furthering what Andy said growth is not going to continue at a pace we grew 19% last year.

Speaker 9: And so far, it's things are slowing down in the market. We see more opportunity to grow and re-insurance today than insurance. Odyssey is, we have three distinct operating platforms. Odyssey re is our global re-insurance business. We write about $4 billion. Hudson is our US insurance platform, run by Chris Gallagher, who's done an amazing job over 20 years.

And so far it's.

Things are slowing down in the market, we see more opportunity to grow in reinsurance today than insurance Odyssey is we have three distinct operating platforms Odyssey re as our global reinsurance business. We write about $4 billion of Hudson is our U S insurance platform run by <unk>.

MS Gallagher who's done an amazing job over over 20 years.

Speaker 9: And then we have new line which was run by Carl Overy for the past 15 years, but if you read the annual report You will see Carl is now stepping into the position He will continue to have management oversight over new line, but Carl will assume responsibility for our global ranchers business of $4 billion.

And then we have new line, which was run by Carl ovary for the past 15 years, but if you read the annual report you will see Carl is now stepping into the position. He will continue to have management oversight over new line, but.

But Carl will assume responsibility for our global reinsurance business a $4 billion.

Speaker 9: I'm portfolio, but growth is a little there's a little more opportunity in the reinsurance today and it really It really is in the property space and particularly the cat space and my 35 years in the business I have not seen a harder cat market and it's no surprise. We've seen a lot of cat loss

Our portfolio.

But growth is a little there's a little more opportunity in in the reinsurance today and it really it really is in the property space and particularly the cat space in my 35 years in the business I have not seen a harder cat market and it's no surprise, we've seen a lot of cat loss.

Speaker 9: over the last five years and inflation is having a dramatic effect.

Over the last five years and inflation is having a dramatic effect on the property sector and so it's driven.

Speaker 9: on the property sector and so it's driven, you know, a significant rise in rates and, you know, we're trying to take advantage of that to the best of our ability. And other lines of business, there is more competition and casualty, a lot of the different casualty lines were starting to see, you know, increased competition. You know, rate levels are still attractive, but we may have to give a little bit back, which is gonna hinder growth.

Significant rise in rates and you know, we're trying to take advantage of that to the best our best of our ability in other lines of business. There is more competition in casualty a lot a lot of the different casualty lines, we're starting to see increased competition rate levels are still.

[noise] attractive, but we may have to give a little bit back which is going to hinder growth.

Speaker 9: So when I look at 23 and beyond, the story isn't about growth, it's about profitability. It's about the margin in the business. The margin that we have in our business today is the strongest it's been in quite some time. And even though the overall margin is strong, we have aspects of our business. We have 36 business units across our three operating platforms and some of those are not working well, but we're making, we're taking steps to improve it. In those areas, we are.

So when I look at 'twenty, three and beyond the story isn't about growth. It's about profitability. It's about the margin in the business. The margin that we have in our business today is the strongest it's been in quite some time and even though the overall margin is strong we have aspects of our business. We have 36 business units across our three.

Three operating platforms and some of those are not working well, but we're making so we're taking steps to improve in those areas we are getting rate.

Speaker 9: And so that will just further bolster the profitability of our business. But with that, I'm gonna turn it back to...

And so that will just further bolster our the profitability of our of our of our business, but with that I'm going to turn it back to.

Speaker 4: Brian Young. And we get a Lou from Allied World, phenomenal growth by Lou.

Brian Young.

And we get a little from Allied world phenomenal growth by low.

Speaker 10: Thank you, Prem. And I just like to point out to Prem that we do have fun at work, but not too much fun. So.

Thank you Brian .

I would just like to point out to Premier we do have fun at work, but not too much fun. So.

Speaker 10: Try to measure that out a little bit. Well, it's great to see everybody. We got a big crowd here today, which is great. And the market, in general, I think Brian touched on, a lot of the detail is correct, and I agree with all of that. On a macro basis in the market today, if you look at the run-up, I think we're in a very, what I would consider, predictable places like.

Try to measure that out a little bit.

Well, it's great to see everybody, we've got a big crowd here today, which is great.

The market in general I think Brian touched on a lot of the detail. It is correct and I agree with all of that.

On a macro basis in the market today.

If you look at the run up I think we're in a very what I would consider predictable placement cycle.

Speaker 10: We've had several years of strong market, strong rate improvement in terms of conditions. And now you get up on top of that bell curve and you bounce around a little bit, right? So rates are moderating some, but I would say in general most product lines rates are still up and exceeding what I would consider claims inflation. So still the market is in a good place.

We've had several years of strong markets strong rate improvement in terms and conditions.

And now you get up on top of that Bell curve and you bounce around a little bit right. So rates are moderating some.

But I would say in general.

Most product lines rates are still up and exceeding what I would consider claims inflation. So its still the market is in a good place.

Speaker 10: but it is moderating. It also agree that the reinsurance market is presenting some better opportunities, maybe than the direct side at the moment.

But it is moderating would also agree that the reinsurance market is presenting some better opportunities maybe than the direct side at the moment.

Speaker 10: So still in a good place, rates in general still adequate, you can't forget to run up to put the rates where they are, even though there are some challenges and moderation in the market.

So still in a good place.

Rates in general still adequate you can't forget the run up to put the rates where they are even though there are some challenges in moderation in the market today.

Speaker 10: At Allied, you know, in the past couple of years, we've taken the opportunity to really expand our company. You know, we thought it was the right time to do that. We did it mostly on rate and less so on adding exposure to the company.

At Allied in the past couple of years, we've taken the opportunity to really expand our company.

We thought it was the right time to do that we did it mostly on rate and less so on adding exposure to the company.

Speaker 10: In fact, we've improved our risk profile over the past couple of years with terms of condition improvements and deductible increases and such. But we also wanted to make sure that we took the full opportunity that was presented to us by scaling our

Fact, we've improved our risk profile over the past couple of years.

With terms and condition improvements and deductible increases and such.

We also wanted to make sure that we took the full opportunity that was presented to us by scaling our company.

Speaker 10: So we really watched our expenses during this period of time and our expense ratio today because of that strategy is down in the low 20s.

So we really watch our expenses during this period of time in our expense ratio today because of that strategy is down in the low twenties, which gives us a tremendous amount of operating leverage in the marketplace Big benefit that we do have so last year in 'twenty 'twenty. Two you saw some of the results of these strategies come through.

Speaker 10: gives us a tremendous amount of operating leverage in the marketplace, big benefit that we do have. So last year in 2022, you saw some of the results of these strategies come through. We had a combined ratio of 90.7.

At a combined ratio of 90.7, we had an underwriting profit of 388 million, which was a record for allied world and I'm really proud of all of our people for doing all the hard work to make that happen.

Speaker 10: We had an underwriting profit of 388 million, which is a record for Allied world. And I'm really proud of all of our people for doing all the hard work to make that happen.

Speaker 10: We grew a company by 12% to a growth-written premium of just under $6.7 billion. The growth was highly diversified across geography globally, also across different product lines. We feel like growing like that spreads our risks.

We grew our company by 12%.

Gross written premium of just under $6.7 billion. The growth was highly diversified across geography globally also across different product lines. So we feel like growing like that spreads our risk.

Speaker 10: also keeps us from being overly dependent on any given product line or any given geography.

Also keeps us from being overly dependent on any given product line or any given.

Speaker 10: And of course, there are still a lot of challenges out there. Brian mentioned the cats, cats have been very active and hard to predict. So it was a challenge for us. Claims inflation on the general inflation side is...

Graffiti.

And of course, there is still a lot of challenges out there.

Brian mentioned, the cats cat cat, so I've been very active in and hard to predict so it was a challenge for US claims inflation on the on the on the general inflation side as it's affecting the level of claims is social inflation that we deal with and then what we talked about a little bit with the market.

Speaker 10: protecting the level of claims as social inflation that we deal with and then what we talked about a little bit with the market. But we continue to be very well positioned to deal with the challenges and also to take advantage of the opportunities that we can create and the opportunities that are available.

But we continue to be very well positioned to deal with the challenges.

And also to take advantage of the opportunities that we can create new opportunities that are available and so we feel like we're in a really really good spot in the marketplace right now.

Speaker 10: So we feel like we're in a really, really good spot in the marketplace right now.

Speaker 10: And, you know, of course, none of this would be possible without great people. I feel like we have great people at Allied Worlds. They're very passionate about the business.

And of course, none of this would be possible without great people I feel like we have great people at Allied world very passionate about the business. They know how to operate in all different cycles. So as we see the cycle start to adjust we will adjust and take full advantage of what we could with those opportunities. So really proud of the people and we're looking forward to the future.

Speaker 10: They know how to operate in all different cycles. So as we see the cycles start to adjust.

Speaker 10: will adjust and take full advantage of what we could with those opportunities. So, really proud of the people and we're looking forward to the future. So, thank you everybody and I'll be around if anybody wants to talk more. Thanks. I just looked up and I'm really worried about this next question because it's from my grand order again, Chloe.

So thank you everybody and I'll be around if anybody wants to talk more thanks.

Yes.

I guess are locked up and I'm really worried about this next question because it's for my granddaughter again Chloe.

Speaker 11: Give man a nice, Likewise.

Hey, Brian .

Boy.

Speaker 12: that Fairfax had offices in over 50 plus countries.

Sure.

Oh for 50, plus country, which country has the most.

Speaker 13: Oh, you're getting tougher and tougher, glory. I'd ask the guests of the United States of America. The US has about 70% of our business and we've got about five companies there. And so it's the United States, number one country for us.

I am youll be getting tougher and tougher glory.

I'd have to go outside the United States of America.

The U S has about 70% of our business and we are we've got about five companies their rent. So it's they're United States number one.

Country for ISR clause. So thank you for your question and lovely to see you there.

Speaker 11: Chloe, so thank you for your question and lovely to see you there. Thank you. Applause. So we've got our other presidents in the insurance side. We're happy to answer any of your questions there. We just move on to number three.

Yes.

So we've got a rather prevalent in the insurance side, we are happy to answer any of your questions. There.

But just more want to number three.

Speaker 14: Hi, my name's Chief Lillani. I'm a new shareholder. I've been a shareholder for two years. When I buy a company that looks obviously cheap, like Fairfax does, I look for reasons why it's so cheap. One of the feedback I get from investors is the employee stock conversations complicated the disclosures. I'm wondering if someone is willing to walk through with us the accounting and also the economic ramifications or what the actual economics would like on the underlying basis for shareholders.

My name is a sheath leilani and I'm, a new shareholder ive been a shareholder for two years.

When I buy a company that looks obviously cheap like Fairfax guys I look for reasons why it's so cheap and one of the feedback I get from investors is on the share of the employee stock compensations.

Complicated the disclosures and I'm wondering if someone is willing to walk through with us.

The accounting and also the the economic ramifications for what the actual economics look like on the underlying basis for shareholders.

Speaker 7: So did you say compensation? Yeah, the stock compensation.

Did you say compensation.

The stock compensation.

Speaker 14: RSUs and option buybacks that take place to find that I think it's complicated how that works Very simple, our competition is very simple So for the president, it'll be based on under any profit, not on growth

As far as use in buybacks that take place to find that.

Complicated how theyre very a very simple our competition is very simple.

So for the president it'll be based on underwriting profit not on growth and it'll be based on.

Speaker 4: and it'll be based on Times your salary. So if you get a million dollars is it twice three times whatever depending on underwriting

Times your salary so if you've got $1 million is it twice three times, whatever depending on underwriting combined ratios and a half of it almost always half of it is deferred and you get a.

Speaker 4: combined ratios and a half of it almost always half of it is deferred and you get

Speaker 4: are issues that you have to be there to collect it.

Our issues.

That you have to be there to collect it. So if you get a say a million dollars you've got to have a half of a bonus half of that is in cash half of that is in our stock that you'll get in five years, but the price is fixed at the time.

Speaker 4: So if you get, say, a million dollars, you get half of your bonus. Half of that is in cash. Half of that is in stock.

Speaker 4: that you'll get in five years, but the price is fixed at the time. And our compensation in Fairfax, we look at it in terms of salary again, and it doesn't go much more than 150%. Sometimes the exception has gone 200%. But if you compare our...

And or a compensation.

In Fairfax.

We look at it in terms of.

Salary again, then it doesn't go up much more than a 100, 150%, sometimes exception has gone to 100%, but if you compare.

Speaker 4: salaries and bonuses to any other similar size companies, not even close. And then in terms of stock ownership, we have a program just like for our companies where in five years or ten years, we have some ten-year grants like fixed for ten years. But we don't give that often. It's like a one-time grant.

Salaries and bonuses to any other similar sized companies not even close.

And then in terms of stock ownership, we have a program just like for our companies where in five years or 10 years, we have some 10 year grants like fixed for 10 years.

But we don't give that often that's like a one time grant and.

And you know the biggest plus we have is stability and cultures, one they love the culture, but the second is one we want to make sure they're compensated well and when you see that chart in terms of the 25 years 27 years now.

Speaker 4: Culture is one, they love the culture. But the second is we want to make sure they're compensated well. And when you see that chart, in terms of the 25 years, 27 years, 20 to not compensation works.

Compensation works, we're very very happy, but but if you are recommending an increase in my salary ill take that into account.

Speaker 4: They're very, very happy, but if you recommend an increase in my salary, I'll take that into account. Thank you for your question. Number one.

Thank you for your question.

Number one.

Speaker 11: Thank you Mr. Vatsa. I have been a long time shareholder of Fairfax but this is the first time I am in Toronto for the annual meeting. So very delighted to be here. Warm welcome. Thank you. So my question is, you just heard from the insurance firms of how strong the insurance market is and clearly you have laid out in your operating earnings how strong the earnings is.

Okay. Thank.

Thank you Mr. Maxa I, having a longtime shareholder of Fairfax and but this is the first time I'm in Toronto for the annual meeting so very delighted to be here warm welcome. Thank you. So my question is if you just heard from the insurance firms of how strong the insurance market is and clearly you have laid out in your operating earnings how strong the earnings is like.

Speaker 11: Given that and given that our stock price is trading below book, what is it that is preventing us from buying a lot more of our stock at clearly a very company?

Given that and given that our stock trades, it's trading below book what is it that is preventing us from buying a lot more of our stock at clearly a very compelling price.

Speaker 4: Good question and it's one we think all the time. As I said before, that's what we want to do, but we're expanding.

Good question and it's one we think all the time as I said before that's what we want to do but we're expanding so theres a lot in the last five years expanding and in spite of that we bought 2 million shares in 2021 400000 shares last year and we continue to buy stock.

Speaker 4: So there's a lot, you know, in the last five years, expanding. And as far as that, we bought two million shares in 2021, 400,000 shares last year, and we continue to buy stock. But there's two things. One is the...

But that's two things one is the expansion and the second is.

Speaker 4: And the second is, one is the expansion and the second is the finatious soundness. We have to be all with finatious sound.

One is the expansion in the second of the financial soundness, we have to be always financially sound, but you know it's a very good question and it's probably appropriate Peter for Peter Clark Who's our president to give you some sense for what happens if you don't expand.

Speaker 7: But you know, it's a very good question and it's probably appropriate Peter for Peter Clark who's our president to give you some sense for what happens if we don't expect.

Speaker 7: the dividend capability that company goes like this, right? To understand that, and Peter also, we consider ourselves risk managers, all of us, all the presidents, starting with me, I consider risk as number one, then opportunity, right? We gotta survive. And Peter is fantastic on that. So perhaps Peter can give you a sense for risk, how we look at risk and capital in terms of dividends. Department who wins a win with the financial support,

The dividend capability of the company goes like like this right to understand that.

And Peter also we consider ourselves risk managers all of US all the President's starting with me I consider risk number one then opportunity right. We've got to survive and Peter is a fantastic on that so perhaps Peter can give you a sense for risk how we look at risk and capital in terms of <unk>.

Evidence of superior.

Speaker 11: Get Peter, President and I, so that I won't mind. Applause. Thank you, Prem. Yeah, those are great questions. And actually it's something that we talk about, you know, on a weekly basis, daily basis. How do we, you know, how do we deal with the capital we have? And as Prem has always said, you know, number one is our financial strength. So we want to make sure.

Yes.

Walnuts.

Thank you for them.

Yeah, those are great questions and actually it's something that we talk about.

On a weekly basis daily basis, how do we how do we deal with the capital we have.

And as Prem has always said you know number one is our financial strength. So we want to make sure we're financially strong.

Speaker 3: Hard markets, they don't come along very often. So we wanted to make sure that we can take care of that. And then number three, we want to buy back as much shares as we can.

Hard markets. They don't come along very often so we wanted to make sure that we can take care of that.

And then number three we want to buy back as much shares as we can.

So those are the three things we're juggling all the time if.

Speaker 3: If you go back, a prem mentioned it, we grew our premium base by $11 billion of the last three years. And the companies have done an excellent job really funding that themselves through strong earnings. They came into it with excess capital. So we come out of this time period, still with a very strong capital.

If you go back.

Prem mentioned it we grew our premium base by $11 billion over the last three years and the companies have done an excellent job really funding that themselves through strong earnings they came into it with excess capital. So we come out of this time period, you know still with a very strong capital position.

Speaker 3: When we look at capital, we look at it, we have rating agency capital, we have regulatory capital, and then we have our own capital models that we have to manage. And we look at it by company, and even underneath that by statutory.

When we look at capital we look at it.

We have rating agency capital, we have regulatory capital and then we have our own capital models that we are we have to manage and we look at it by company and even underneath that by statutory entity.

Speaker 3: So there's a lot of stuff we're looking at, a lot of things we're juggling.

So theres a lot of stuff, we're looking at a lot of things we're juggling.

Speaker 3: But today we're sitting in a nice position. And as Brian said, Lou said, we'll likely not see the growth that we've seen over the last three years, which is about 17% per year, which we internally funded.

But today, we're sitting in a nice position and as Brian said Lou said.

We'll likely not see the growth that we've seen over the last three years, which is about 17% per year, which we internally funded.

Speaker 3: And when that slows down,

And when that slows down.

Speaker 3: You know, there's going to be a lot of access capital built up very quickly, especially on the back of the operating earnings we see coming forward. So that gives us lots of options.

There's going to be a lot of excess capital built up very quickly, especially on the back of the operating earnings we see coming forward. So that gives us lots of options.

Speaker 3: We build up cash at the holding company, we buy back minority interest, we buy back our own shares. We're in great shape on the capital front.

Again, we build up cash at the holding company, we buyback minority interest we buy back our own shares. So we're in great shape on the capital front.

The excess capital.

How much is excess capital right now that we.

Speaker 6: It's hard to say. You can't give a firm number, but most of our companies have access capital built in. And like I say, then we look forward and the earnings that they're going to get in the next couple of years will be significant. And then, so we're really pleased in the position we are.

It's hard to say it it you can't give a firm number.

But most of our companies have excess capital built in and like I say, then we look forward and the earnings that Theyre going to get in the next couple of years.

Will be significant and then so we're really pleased in our position we are today.

Speaker 7: Peter, any comments on the red side that you want to highlight?

Comment on the risk side.

Do you want to highlight.

Speaker 3: You talked a lot about investments, obviously, that's a risk we look at. But one of the big risks we have, and we've always looked at it at the holding company's catastrophe risk. We've always looked at it at the holding company's catastrophe risk.

You talked a lot about investments obviously, that's that's a risk we look at but you know what.

I'm.

Very you know one of the big risks, we have and we've always looked at it at the holding company is catastrophe risk Andy.

Andy mentioned it.

Speaker 3: But what we're benefiting from now, too, is through this growth, the size and scale of Fairfax's is huge.

But what we're benefiting from now to us through this growth the size and scale of Fairfax is huge and we've grown our premium by $11 billion, but our cat risk hasn't gone up proportionately.

Speaker 3: And we've grown our premium by $11 billion, but our cat risk hasn't gone up proportionally.

Proportionately so our P&L, that's how we measure our exposure.

Speaker 3: So our PMLs, that's how we measure our exposure. As a percentage of our premium we write today, is down significant.

As a percentage of our premium we write today is down significantly.

Speaker 3: So, you know, in 2022, the industry had record cat losses, and we were able to post a combined ratio below 95. In...

So.

In 2022, the industry had record cat losses, and we were able to post a combined ratio below 95.

In 2020.

Speaker 3: We had COVID and we had significant cat losses and again with all absorbed within the underwriting profit. So it's a risk we worry about. It's a risk at Fairfax. We follow quite closely and even though we've been doing a good job managing it, we're not complacent. It's a risk that can hit you very quickly and so we always want to be looking at the worst survey, potentially at the best of cases with COVID-19's

We had COVID-19 and we had significant cat losses, and again was all absorbed within the underwriting.

Profit.

So.

It's a risk we worry about it as a risk at Fairfax.

We follow quite closely.

And even though.

We've been doing a good job managing yet we're not complacent, it's a risk that can hit you very quickly and so we always want to be looking at the worst case and are prepared for it.

Speaker 11: Thank you very much, Pito. We're going to number three.

Thank you very much brito.

They go on to number three.

Speaker 3: Doug Visick from RBC, Portfolio Manager and Shareholder.

Doug <unk> from RBC portfolio manager and shareholder.

Speaker 3: My interest is in culture and culture and performance and fair and friendly. And two part question one is when you do an acquisition.

My interest is in culture, and culture and performance and fair and friendly.

Two part question one is when you do an acquisition.

Speaker 3: How do you judge that who you're requiring is gonna be fair and friendly? How do you solidify that?

How do you judge that who you were acquiring is going to be fair and friendly how do you solidify that.

Speaker 3: And how do you maintain fair and friendly across so many geographies?

And how do you maintain fair and friendly across so many geographies.

Speaker 3: over such a long time period. So this is a wonderful question, that's a really good one. And so GIG, for example, we've known them for 12 years, right? So that was the risk as much less.

For such a long time period. So this is a wonderful question. That's a really good one and so a G. I G. For example, we've known them for 12 years right. So that was the risk is much less.

Speaker 7: But what we found is our culture is so strong that if a company, you know, before we wouldn't be looking at a company that doesn't fit, but if a company comes in, with not exactly the right culture, it gets absorbed. If you're a company that doesn't, then you know that equilibrate. And if you're sending a company out and m humanos, if you're not sending a company out, then we don't.

But what we found is our culture is so strong that if a company.

Well first of all we we.

We wouldn't be looking at a company that doesn't fit but if a company.

Comes in with not exactly the right culture.

It gets absorbed.

Speaker 7: They become like our culture because first of all they like it. So we bought the AIG operations and left America.

They become law.

Unlike our culture, because first of all they like it so we bought the <unk>.

We bought the AIG operations in Latin America.

Speaker 4: So a fellow who worked for them for a long time, 17 years for Bruce, he's here. And I traveled with him. And we're talking like this about our culture and stuff. And so I just met him. This is about five years ago.

A fellow who worked for them for a long time 17 years Fabricio and he's here.

And I traveled with him and we're talking like this about our culture and stuff and so I'd just met him. This about five years ago and so he says you know it's funny says.

Speaker 7: You know, it's funny. He says, in business, I thought you have to be tough, take no prisoners, let people go. And in my home life, with my friends, with my family, I was different. I treated them.

In business I thought you have to be tough take no prisoners, let people go.

And in my home life with my friends with my family I was different I treated them.

Family.

Speaker 7: But I said to me that when I look at Fairfax, there's no difference.

But I'd say he said to me that when I look at Fairfax, There's no difference.

Speaker 7: We treat people in our business, the same as we treat people in our family. And that was from a person who hadn't been in our company. And if you meet our Latin American operations today, you'd find our culture is very, people wanna be like that. You don't wanna fire people left, right, and center. That's no fun.

We treat people in our business the same as we treated people in our family and and that was from a person who hadn't been in our company at all.

If you meet our Latin American operations today, you'd find a culture very people want to be like that you don't want to fire people left right and center that's no fun.

Speaker 7: And so they gravitate mostly, but they're almost without exception for us, no exception, they gravitate towards our culture. It's a likable culture, it's a good culture. And it's what business should do.

And and so.

They gravitate.

Mostly without almost without exception for us are no exception, they gravitate towards a culture to likeable culture. It's a good culture and its one business should do look after the people who provide all of the.

Speaker 4: Look after the people who provide all of the, you know, the services to your customers. And if something doesn't work out, you can just fire them. Sometimes you have to, but you can do that in a very humane way too. And so that's been our...

You know the services to your customers and if something doesn't work out you can't just fire them, sometimes you'll have to but you can do that in a very humane way too and so so that's been our experience.

Speaker 7: been an interesting experience. But thank you for the question. Thank you. It can be, I go back to Jeff.

And.

<unk> experienced but but thank you for the question. Thank you.

It can be.

I'll go back to.

Jeff from the web.

Speaker 15: We've had a number of questions come in about the various non-insurance holdings. So I'd like to start with Stellco. And the question just was that Stellco is a large investment for us. Can you comment on why we own it and what the outlook is?

We've had a number of questions come in about the various non insurance holdings. So I'd like to start with Stelco and the question just was that stockholders of large investment for US can you comment on why we own it and what the outlook is.

Speaker 4: That's terrific. Alan Cass and bomb is here. So Alan, come on in.

That's a terrific island Kastenbaum is here so Alan come on in.

Speaker 4: Alan's done a phenomenal job at Stelco. We are, he's, I think at three buybacks last year and we are now 24% shareholder. And I told you about leadership, right? You're gonna see some more president here. And Alan, as I said, an unbelievable job and a steel company, a Lewis Car Steel Company, but Alan.

And then a phenomenal job of Selco, we are here.

I think he had three buybacks law last year and we're now on a 24% shareholder and I told you about leadership, Ryan Youre going to see some more prevalent here and Alan and then as I said, an unbelievable job in our steel company, a lowest cost steel company.

But alan.

Speaker 5: Thank you very much, Param, and thank you for having me here, and it's really a great experience to be here at this event.

Thank you very much brennen and thank you for having me here and it's really a great experience to be here at this at this event.

Speaker 5: I thought the best thing I could do that would be of interest to this group.

The best thing I could do that would be of interest to this group.

Speaker 5: First of all, listening to the comments on culture and how we focus on people and profitability, how these things work together is a complete culture. And I think the first thing I did.

First of all listening to the comments on culture, and how we focus on people and profitability to how these things work together as a complete culture and I think the first thing I did after I bought the company in 2017, and we took it public in 2017 four months later was really establish relationships with the with the union and our workers, which had been a problem there.

Speaker 5: After I bought the company in 2017, and we took a public in 2017, four months later, was really established.

Speaker 5: relationships with the union and our workers, which had been a problem there. The bottom line is the company has been over the last four years the most profitable steel company in North America, which is something I'm very proud of.

The bottom line is the company has been over the last four years. The most profitable steel company in North America, which is something I'm very proud of.

Speaker 5: But I want to tell you a story that goes back to 2020 which really personifies Pram and Fairfax and everybody that works with him. With middle of COVID, it was March of 2020. I run down to my apartment in Florida because nobody's going to the office and I'm focused full time on an absolutely Christ.

But I want to tell you a story that goes back to 2020 with truly personifies Prem in Fairfax and everybody that works with him with the middle of Covid. It was March of 2020, I run down to my apartment in Florida, because nobody's going to the office and I'm focused full time on an actual absolute crisis.

Speaker 5: We didn't know if anyone was ever going to buy steel again. And prices collapsed, raw materials collapsed. And I made a decision. We had about 300 million of cash left. And I made a decision to go and acquire for basically in perpetuity our key raw material and really integrate our company and buy iron ore for basically in perpetuity. And an incredibly low price. Price had never gotten that low.

Didn't know if anyone's ever going to buy steel again.

And and prices collapsed raw materials collapsed.

And I made a decision we had about 300 million of cash left and I made a decision to go and acquire for basically in perpetuity or key raw material and really integrate our company and buy iron ore for for basically in perpetuity at an incredibly low price price had never gotten that low.

Speaker 5: And to do that, it had to make a $100 million payment. Then we had to rely on our blast furnace for another $168 million. And we made these announcements.

And we do that I had to make $100 million payment then we had to rely on our blast furnace for another $168 million and we made these announcements.

Speaker 5: Prembo at the stock about six months earlier at 17, I think, or 18 bucks. And here we were sitting at $4 a share in March of 2020. And we had just made the press release about these expenses pretty much whittling down our cash. My belief was, this is a time to do things with things that are dark cheap. That things would come back.

Prem bought the stock at six months earlier it at 17, I think our 18 Bucks and here, we were sitting at $4 a share.

In March of 2020, and we have just made the press release about these expenses pretty much you know whittling down our cash my belief was this is a time to do things when things are dirt cheap that things would come back, but I don't like waiting for shareholder calls.

Speaker 5: But I don't like waiting for shareholder calls. And I said, I picked up the phone and I called Prem.

And I said I picked up the phone and I called Prem.

And.

Speaker 5: I told him what we were doing. And I was expecting, like, you crazy, are you nuts, what are you doing? How could you do this? And all I got from him was just like his vision about the future. People are gonna start flying again. People are gonna start traveling in. This is brilliant. Way to go, Alan. I look a little stupid right now with the share price that I paid, but I have confidence this is gonna work.

I told them, what we were doing and I was expecting are you crazy or not what are you doing how could you do this and what I got from him was just like his vision about the future people are going to start buying people are going to start flying again people are going to start traveling in this is brilliant way to go Alan a little.

Stupid right now with the share price that I paid but I have confidence this is going to work well the end of the story or let's say, where we are so far.

Speaker 5: Well, the end of the story, or let's say where we are so far,

Speaker 5: We've returned since that time $1.8 billion of money back to shareholders.

We've returned since that time $1.8 billion of our money.

Money back to shareholders or the stock is now as you know.

Speaker 5: Are the stock is now, you know, sitting over 50 was as higher as 60 this year. We also made less, you were 10% dividend, special dividend payment, a 4% regular dividend payment. And we bought last year, 29% of our stock back, really learning from the model that Prem has done here over at Fairfax. So I got to tell you, he's been a tremendous friend. He really, really, really walks the walk of long-term thinking.

Sitting over 50 was as high as 60. This year. We also made last year, a 10% dividend special dividend payment a 4% regular dividend payment and we bought last year, a 29% of our stopped that really learning from the model that premise is done here over at Fairfax. So I've got to tell you it's been a tremendous friend.

You really really really walk the walk of long term thinking I experienced it myself and as I just conveyed to you in the story and really appreciate all the support for them and really pleasure to be here. Thank you very much.

Speaker 5: I experienced it myself and as I just conveyed to you in the story and I really appreciate all the support for him and really pleasure to be here. Thank you. Thank you very much, Alan. Get my name out of the blue. I'm glad to have you, Alan. Unbelievable performance by Alan Cassonbaum and we expect to continue to be shared with for a long time. We'll go into number four.

Yes.

And for that matter.

On the labor performance by Alan Katz, and Bom, and we expect to continue to be a shareholder for a long time.

We'll go into number four.

Good morning, Mr. Wassa.

Speaker 16: Now we shall put it and this is my first annual shareholder made.

And Richard what if and this is my first annual shareholder meeting.

Speaker 16: Thank you and congratulations for the last five years of outstanding performance.

Thank you and congratulations for the last five years of outstanding performance.

Speaker 16: I have a generalised question regarding the insurance business. Insurance is all about how people and...

I have a question generalized question regarding the insurance business insurance is all about.

How people and businesses are worried.

Speaker 16: So let's say for the fair amount of time of the five years, there is no events occurred. So how does the insurance business and what strategy about the...

And so let's say the four the fair amount of time after five years. There is no events occurred so how does the.

How does the insurance business and what's the strategy about.

About the growth of the insurance business.

Speaker 4: Yes, so Andy and Brian and Lou talked about that in terms of growth in the business. As he said, when the prices are good, we expand. What does he mean by price? When you're getting paid to take the risk. If you're not getting paid to the...

Yeah. So.

Andy and Brian and then.

Lew talked about that.

In terms of growth in the business as he said when the prices are good we expand what does he mean by price when you're getting paid to take the risk if you're not getting paid to take the risk.

Speaker 4: You know, and like copper, the price of production is below your cost of production. The price of the commodity copper is below you can see that very easily. But it was an insurance that a lot of reserving and all of that. So it's not that obvious. But our guys are experienced and when they see the cost below they pull back. And the famous for me was Zenith. Zenith was waiting a billion dollars, I think, in 2005.

Unlike copper the appraisal.

Action is below your cost of production the price of the commodity copper below you can see that very easily but it was insurance, there's a lot of our reserving and all of that so you're right. It's not that obvious but our guys are experiencing when they see the cost below the pullback.

And the famous for me was a zenith zenith was writing a billion dollars I think in 2005 <unk>.

Speaker 4: approximately there. And by 2010, they dropped it by a half. 450, no other company could do that. And Karim Angande was here, the president, and the founder of Stanley's Acts. And that's what he did. He dropped the premium. And then they backed it up now at 7,800. And the people who expanded during that time, 2005 to 2010, are basically not here with us.

Similarly, there and by 2010, they dropped it by a half 450 and no other company could do that and Kari Van Gundy was here the president and the founder was Stanley's Zacks and that's what he did he dropped the premium and then they backed it up now, it's seven 800 and and the <unk>.

<unk> expanded during that time 2005 to 2010 are basically not here with us.

Speaker 7: not in existence. But so Andy explained that very well. And we've got, as he said, all our companies are based on that underwriting profit at all times.

Were not in existence, but so Andy explained that very well and we've got as he said all our companies are based on that underwriting profit at all times.

Speaker 4: But thank you again for your question. We'll go on to Jeff, if you got another one. And then we-

But but thank you again for your question really go on to.

Jeff have you got another one.

And then we'll go to number one.

Speaker 15: a prim question on Atlas Corp. Please comment on the rationale for the Go private transaction with Atlas Corp and how the opportunity for the company has changed. Now that is no longer public. Thank you very much, Jeff. And we are so fortunate to have David Sokol, a wonderful leader and Beng Cheng. They work together. But David, a nice round of applause. And Beng is right there with them.

Prem question on Atlas Corp. Please comment on the rationale for the go private transaction with Atlas Corp, and how the opportunity for the company has changed now that there is no longer public. Thank you vary by job, Jeff and we have we're so fortunate to have David Sokol.

Wonderful leader and bank Chang they work together, but give David a nice round of applause.

And Bang is right there with them.

Speaker 11: Maybe if I bang a knife, I'm not gonna hit it. Maybe just a moment of background. So two great things happened in 2018 to Atlas. The first, actually they were simultaneous, but the first I think was Fairfax's commitment to invest in the company. We needed capital to rearrange the organization, but simultaneous with that we were able to acquire a phenomenal CEO , Bing Chen.

It may.

They have a bank.

Yes.

Maybe just a moment of background.

So two great things happened in 2018 to Atlas.

The first actually they were simultaneous with the first I think it was fair.

Fairfax is commitment to invest in the company.

We needed capital to rearrange the organization.

Simultaneous with that we were able to acquire a phenomenal CEO Bing Chen.

Speaker 6: So since 2018 to today, the return to investors, Fairfax included, has been a little over 25% annual return, including dividends. And that was really created by two folks, most here. One providing the capital and the other providing the impetus to change and to look forward into an industry, then a lot of people hadn't really given a lot of vision to the shipping industry.

Since 2018 should today the returned to investors Fairfax included has been a little over 25% annual return including dividends.

And that was really created for bye bye to folks they're both both here.

One providing the capital and the other providing the impetus to change and to look for forward into an industry. There are a lot of people hadn't really given a lot of vision to the shipping industry.

Speaker 6: Then in 2018, 2019, as these changes are being made, one of the big strengths is constantly thanking three and five years ahead.

Then in 2018 2019 as as these changes are being made will have being strengths is constantly thinking three and five years ahead.

Speaker 6: And what he noticed by putting in one of the advantages being did not come from the shipping industry. He was the reason he was selected as CEO specifically because he didn't come from the shipping.

And what do you when he noticed by putting in one of the advantages being did that come from the shipping industry. He was the reason he was selected as CEO is specifically because you didn't come from the shipping industry.

Speaker 6: So what he spent time doing was not regurgitating history, but looking at where does the industry stand today, what do assets look like, what is the future for shipping, particular container shipping?

So what are you what he spent time doing was not regurgitating history, but looking at where does the industry stand today, what do assets look like what is the future for shipping particular container shipping.

So.

Speaker 6: having access to additional capital from Fairfax.

Having access to additional capital from Fairfax.

Speaker 6: in the Washington family. Being identified the fact that construction companies, shipbuilding companies throughout the world were at a very low point in 2019.

And the Washington family.

Being identified the fact that the.

Construction companies shipbuilding companies throughout the World, we're at a very low point in 2019.

Speaker 6: But there was a clear demand for new ships coming down the road caused by a number of changes in the industry.

But there was a clear demand for new ships coming down the road caused by a number of changes in the industry.

Speaker 6: And so by putting very, very little money at risk, being kind of corner of the market in the slots for building new ships.

And so by putting very very little money at risk being kind of cornered the market in the slots for building new ships.

Speaker 6: And then went out and to our major customers said, you know, here's the data we see.

And then went out and to our major customers shed here's the data we see.

Speaker 6: And what we found was many of those customers had exactly the same vision, but they weren't quite sure what they were going to do with.

And what we found was many of those customers at exactly the same vision, but they weren't quite sure what they were going to do with it.

Speaker 6: So it was able to lock up $8 billion of new ship building and $18 billion of new long-term charter arrangements to back up every one of those ships and lock in to place by the end of 2021, mid-2021, all of the financing to be co-terminous along with the charter.

So it was able to lock up $8 billion of new shipbuilding and $18 billion of new long term charter arrangements to back up every one of those ships and lock in place by the end of 'twenty 2021, mid 2021, all of the financing to be co terminus along with our with the charge.

Speaker 6: Changing a company that has historically been taking pricing that the industry gave us.

<unk>.

Changing a company that had historically been taking pricing that the industry gave them.

Speaker 6: And Turion, the long-term matched arrangement on both the revenues and the expense.

Tori into a long term matched arrangement on both the revenues and the expenses.

Speaker 6: So with that and with today, a little over $18 billion of backlog revenue going forward, we burn about today, $1.61 billion of revenue a year, Wigel Private.

So with that and with today, a little over $18 billion of backlog revenue going forward, we burned about today 1.6, $1 $7 billion of revenue a year.

Why go private.

Speaker 6: a great return to date, Guago Private. Well, industries cycle and industries have disruption.

Great returned to date, Weigel private well industries cycle and industries have disruptions.

Speaker 6: steel industry, you just discussed a little bit before. The shipping industry is going through.

Steel industry, you just discussed a little bit before the.

The shipping industry is going through a dramatic change.

Speaker 6: And oddly enough, it just went through the two most profitable years in the history of the industry.

Oddly enough. It just went through the two most profitable years in the history of the industry.

Speaker 6: But that also comes with challenges. Shippers require greater efficiency, more on time delivery. The industry, not too long ago, if you could get a container delivered somewhere around the world in six months, you felt pretty good about it. Shippers today won't move in two and three weeks in those same locations.

But that also comes with challenges shippers require greater efficiency more on time delivery the.

The industry not too long ago, if you could get a container delivered somewhere around the world in six months you felt pretty good about it shippers today want it moved into in three weeks and those same locations.

Speaker 6: So our feeling was that while the companies terrifically situated for the future, the industry is changing and get a change significantly, we have a small float, less than 30% public float.

So our feeling was that while the company's terrifically situated for the future. The industry is changing and going to change significantly we had a small float less than 30% public float.

Speaker 6: And many of the shareholders terrific long-term shareholders and they've done quite well in the stock.

And.

Many of the shareholders terrific long term shareholders and they've done quite well in the stock, but in a time of change when there's when there's announcements going that Gee. This was the most profitable year ever in 2022 two.

Speaker 6: But in a time of change, when there's announcements going that G this was the most profitable year ever in 2022 to a 30% reduction for most of our customers in their economics.

30% reduction for most of our customers and their economics.

Speaker 6: stocks go down whether they should or they shouldn't. It had no effect whatsoever. Those changes in economics had no effect on atlas whatsoever.

<unk> go down whether they show that they shouldn't it had no effect whatsoever. Those changes at economics had no effect on Atlas whatsoever, but you get drawn down in them. So the license was last summer the stock was trading substantially under under its value.

Speaker 6: but you get drawn down in them. So my sense was, last summer, the stock was trading substantially under its value.

Speaker 6: We had an obligation, Prem and I, and Mr. Washington agreed that we have an obligation to work common shareholders to treat them fairly. We have an obligation to work common shareholders to treat them fairly.

We had an obligation from an eye and Mr. Washington agree do we have an obligation to work common shareholders to treat them fairly Morocco drive steal the company, but they're going to be better off being able to take capital from us.

Speaker 6: We're not gonna try and steal the company, but they're gonna be better off being able to take capital from us.

Speaker 6: invested in a way they're comfortable with not be subject to the vagaries of this market which will not be intelligently Reviewed if you will I mean what are the top transportation analysts in the country after our investor meeting last spring Reduced his price target from 1650 to 1050

Invested in a way, they're comfortable with not be subject to the vagaries of this market, which will not be intelligently reviewed if you will I mean, what are the top transportation analyst in the country.

After our investor.

Investor meeting last spring.

Reduces price target from $16 50 to 10 50.

Speaker 6: based on nothing other than the broader industry is going to going to have some difficult.

Based on nothing other than the broader industry is going to going to have some difficulties.

Speaker 6: He knew our economics, everything else. They didn't even have to stock trade it down, not that far, but down. And so going private was an opportunity to do two things. A, take care of our loyal public shareholders, but also bring in a strategic partner, ocean network express, the Japanese, if you will. Three companies were joined together in 2018. They operate out of Singapore. They're a major customer of ours as well. But they have a real strategic vision as to where they're going.

We knew our economics to everything else that even at the stock traded down not that far but down and so going private was an opportunity to do two things a take care of our loyal public shareholders, but also bring in a strategic partner Ocean Network Express the Japanese if you will.

Three companies were joined together in 2018, the operator out of Singapore. They are a major customer of ours as well, but they have a real strategic vision as to where they're going.

Speaker 6: And we think a lot of their thoughts make a lot of sense and consistent with us. We're still independent of them. They own now 29.5%. Fairfax is our largest shareholder about 43%. And then the Worshine family and being in myself.

And we think a lot of their thoughts make a lot of sense and consistent with us we're still independent of them. They are now 29.5% Fairfax is our largest shareholder about 43%.

And then the washing family and big and myself.

Speaker 6: That was the impetus for it. It's not that we are going to do anything different, frankly, going forward than we would have intended to. Other than it affects everybody in your food chain when the stock market bounces around, or your stock bounces around, it affects lenders and everyone else. And for no reason, this is a business that, frankly, probably should be priceless.

That was the impetus for it.

Not it's not that we are going to do anything different frankly going forward than we would've intended to other then it affects everybody in your food chain.

When the stock market bounces around or your stock bounces around it affects lenders.

And everyone else and for no reason this is a business that frankly, probably should be private.

Speaker 6: Similar to the energy industry, which is my prior involvement. So anyway, that's the reason for it. Going forward, we thank the company. It's great, great opportunities. We were pleased to get O&E as a significant partner. They see the opportunities.

Similar to the energy industry, which is my prior involvement so anyway. That's the reason for it going forward. We think the company is great great opportunities. We were pleased to get OLED is a significant partner they see the opportunities to give that and put that in perspective theres a lot of risk between now and three years from now and in this.

Speaker 6: To give that and put that in perspective, there's a lot of risk between now and three years from now and in this sector. We think we've got it under control. We still have 50 some ships to deliver. We've already delivered 20 all ahead of time, all under fixed price contracts and all fully financed. But we still have to deliver 50 more. They're all under construction. But not with...

Sector.

We think we've got it under control we still have 50, some ships to deliver we've already delivered 20 all.

All ahead of time, all under fixed price contracts in all fully financed but we start to deliver 50 more they're all under construction.

But.

Notwithstanding the risks are if we do that.

Speaker 6: to give you some perspective, our EBITDA margins about 71% consistently. And our EBITDA will grow. This year it'll be a little under a billion, two, but three years from now, it'll be a billion, seven, fifty. And that's under control.

To give you some perspective.

Our EBITDA margins about 71% consistently.

And.

Our EBITDA will grow this year it'll be a little under 1 billion to three.

Three years from now it'll be 1 billion 750, and that's under contract.

Speaker 6: And if you just take the same multiples of what we paid for going private and push them forward three years on the exact same numbers, no other growth, no other advantage, we should be up another 50%. Here in the front, when watercolor we put again in water And doin', die'

And if you if you just take the same multiples of what we paid for going private and pushed them forward three years on the on the exact same numbers no other growth no. Other advantage, we should be up another 50%.

And.

Speaker 6: in return. So it's a good business, you know, like many, it's got to be managed on a daily basis. It has a lot of interesting aspects to it, but that's fundamentally why we chose to take it.

In return so it's a good business like many it's gotta be managed on a daily basis. It has a lot of.

Interesting aspects to it but that's fundamentally why we chose to take it private. Thank you very much David gave my knife out of our products.

Speaker 4: Thank you very much, David. Give my night's final part. Applause. We have almost $2 billion in Atlas and David and Bing's leadership and David and Mid-American Energy at Bookshop compounded.

We have almost $2 billion in Atlas and David and Bangs.

Our leadership and David then.

Midamerican energy at Berkshire.

Compounded.

Speaker 4: Any number you want to look at, revenue and net income, 20% per year for 20 years.

Any number you want to look at revenue net income 20% per year for 20 years.

Speaker 4: tremendous track record and yeah we just think you're going to see similar type of returns over the long term not at any quarter

Remainders track record and yeah, we just think youre going to see similar type of returns over the long term not at any quarter.

Speaker 4: I'm just so wondering Jeff, given that we're talking going private.

I'm just wondering Jeff given that we are talking going private.

Speaker 4: We've got a recipe and Frank Hennessey here, and it might be appropriate to just ask Frank. We took a recipe private and Frank's the CEO of the company and Bill Gregson was the previous CEO and he's come back to health. But Frank runs it. Give Frank a nice round of applause. Thank you, Param. Still trying to figure out a restaurant guy got in this room, but...

We've got a recipe and Frank Hennessy YOD it might be appropriate too.

Uh huh.

Ill ask Frank we took a recipe private and Frank.

Hum.

CEO of the company and Bell Brexit barely gregson was the previous CEO and he's coming back to help but Frank runs that give Frank a nice a round of applause.

Thank you Brian .

So I'm trying to figure out a restaurant Guy got in this room, but.

Speaker 1: I've told Prem before that, you know, I really, if he had to put one word on recipe, I'd say resilient.

I've told Prem before that you know I really if you had to put one word on recipe I'd say resilient.

Speaker 1: You know, if you go back a year ago, when we were coming out of COVID, recipe actually came out very strong and very healthy, particularly our balance sheet. In fact, our debt was lower coming out of COVID than it was.

If you go back.

A year ago, when we were coming out of Covid.

Recipe actually came out very strong.

And very healthy, particularly our balance sheet in fact, our.

Our debt was lower coming out of Covid and it was going into it and that's fairly remarkable. When you also think of the fact that we supported our franchise partners through that period of time in helping them with their with their rents and other cash flow issue. So.

Speaker 1: going into it. And that's fairly remarkable when you also think of the fact that

Speaker 1: You know, we supported our franchise partners through that period of time and helping them with their rents and other cash flow issues. So we felt very, very good about the company and where it was.

We felt very very good about the company and where it was.

Speaker 1: Much like the previous story, the markets weren't looking very favorably upon a restaurant stock at the time, and particularly companies like Recipe that

Much like the previous story the markets weren't looking very favorably upon.

Our restaurants stock at the time, and particularly companies like recipe that.

Speaker 1: You know, we're predominantly in the full service business, meaning they had dinier rooms, and that's the majority of our portfolio.

You know were predominantly in the full service business.

Meaning their diners and that's the majority of our portfolio. So an opportunity came along to take the company private.

Speaker 1: So an opportunity came along to take the company private. In the spirit of fairness to shareholders, we have some long standing shareholders with us. A 54% premium was given to shareholders and they overwhelmingly approved. I think you take Fairfax out, the vote was like 99.8% in favor of the transaction.

In the spirit of fairness to shareholders, we have some <unk>.

Long standing shareholders with us.

54% premium was given to shareholders overwhelmingly approved.

You take Fairfax out the vote was like 99.8% in favor of the transaction.

Speaker 1: So now that we're a private company, we're taking the time to make the some adjustments in our lines of business and into some of our portfolios. Just candidly, things that it's easier to do being private versus in a public setting. But overall, I mean, we're very, very bullish about our future, particularly growth organically. We have some brands that are literally on fire. It's just about trying to find the real estate step onwards.

So now there were a private company, we're taking the time to make the.

Some adjustments in our lines of business.

And into some of our portfolios.

Just candidly things that it's easier to do being private versus public setting, but overall I mean, we're very very bullish about our future, particularly growth organically, we have some brands that are.

Literally on fire, it's just about trying to find the real estate to get them out there.

Speaker 1: but also because of all the free cash flow that we generate as an organization, mainly because we're 85% franchise.

But also because of all the free cash flow that we generate as an organization, mainly because we're 85% franchised we can pay down debt quickly.

Speaker 1: We can pay down debt quickly, but we think there's also opportunities to look at acquisitions as industry continues to consolidate.

But we think there's also opportunities to look at acquisitions.

As the industry continues to consolidate you know and Prem talks a lot about empowerment and culture, we empower our leaders to do the right things and we have a great culture. So we're very very bullish about our future.

Speaker 1: You know, and Prem talks a lot about empowerment and culture. We empower our leaders to do the right things and we have a great culture. So we're very, very bullish about our...

Speaker 11: Thank you very much, Frank. Applause. Sorry for keeping you waiting, number one. Thank you.

Thanks, Brad can vary by track.

Sorry for keeping you waiting number one.

All good all good.

Speaker 3: Prem, thanks for taking my question. My name's Lars Nardel, in from Vancouver. Like many here, I'm very happy.

Prem Thanks for taking my question My name is Lars and Ardelle in from Vancouver.

Like many here a very happy shareholder.

Speaker 3: Fairfax certainly is well positioned today. The future looks bright. However, I want to turn the clock back just quickly.

Fairfax, certainly is well positioned today.

The future looks bright however, I want to turn the clock back just quickly.

Speaker 3: I think we can all agree 2010 to 2020 was largely a lost decade for Fairfax shareholders. My question is what are two or three most important lessons that Fairfax has learned?

I think we can all agree 2010 to 2020 was largely a lost decade for Fairfax shareholders.

My question is what are two or three most important lessons that Fairfax has learned.

Speaker 3: And then have any internal processes changed to ensure the mistakes made in the past are not repeated. Thank you. That's very good question. In business, you make mistakes. And I remember in the investment side, Mr. John Templeton, who had perhaps the best track record ever for 50 years. Thank you.

And then have any internal processes changed to ensure the mistakes made in the past are not repeated thank you.

That's very good question.

In business, you know you make mistakes and.

I remember in the investment side.

Mr. John Templeton, who had perhaps the best track record ever for 50 years.

He said.

Speaker 4: two out of three decisions that I make, if I can get two out of three right, one third wrong, I still have.

Two out of three decisions that I make if I can get two of the three right one third wrong.

I still have one of the best track records ever.

Speaker 4: And so it's just a recognition that mistakes happen. So some of the mistakes we had in the past, our company is doing really well and then the CEO , where the track record goes and expands by taking on too much debt. We had a situation like that too, actually, and that. You had cyclical prices in oil and gas.

And so it's a it's just a recognition that mistakes happen. So some of the mistakes we had in the past.

You know our company is doing really well and then the C. L who has a track record goes it expands by taking on too much debt, we had a situation like that to actually at that.

You had cyclical prizes in oil and.

And gas.

Speaker 7: But one of the big pluses is we stay with our companies and things turn around, it's never the end. And...

But one of the big pluses as we stay with our companies and and things turn around its never the end.

And.

Speaker 4: But we always look at, you know, for us, the key is the person at the top.

But we always look at.

You know for US the key is the person at the top.

Speaker 7: And our mistakes have been when we haven't got the right person at the top.

And our mistakes have been when we haven't got the right person at the top end and the second might be the financial strength of the company, where we are if you don't have the right Guy and he decided to take on a lot of that very difficult.

Speaker 7: And the second might be the financial strength of the company where we are. If you don't have the right guy and he decides to take on a lot of debt, very difficult.

Speaker 7: And the third might be some people are good operators, but not able to buy companies.

And in the third might be some people are good operators, but not able to buy companies.

Speaker 7: and integrate them or perhaps keep them separate like we've done. So there's a vast number of lessons. In our organization structure, we have now Wade Burton and Lawrence Chan. And.

And.

Integrate them, all perhaps keep them separate like we've done.

So there's a vast number of.

Lessons and not organization structure, we have now weighed button and Lawrence Chan and of course, Roger Brian and so we work at the team.

Speaker 7: of course Roger, Brian . And so we work at the team in terms of our investments, but investing is always an individual effort. So you have to take all the pluses and minuses and then make a decision. But the biggest point I think I'd leave with you is what Mr. Templin said. You're gonna make mistakes.

In terms of our investments, but investing is always an individual effort so you'll have to.

Take all the pluses and minuses and then make a decision.

But the biggest point I think I'd leave with you is what Mr. <unk> said youre going to make mistakes and you have to take those mistakes on them.

Speaker 7: And you have to take those mistakes, own them, and move forward. You won't have any mistakes if you don't make any investment decisions. And so, and there are time periods like the last 10 years, where value investing never worked out, right? Whereas if you were a growth investor, I'm talking tech stocks here, you did extremely well.

And move forward.

Yeah Yeah.

You won't have any mistakes, if you don't make any investment decisions and so.

And there are time periods like the last 10 years, where value investing never worked out right.

Whereas if you were a growth invest I'm talking tech stocks here you did extremely well.

Speaker 7: But that's changing. And I think some people say, why can't you take advantage of that and at the right time get off and sell them? Very difficult to do, really difficult to do. But thank you for your question. And we'll try to improve as we go forward. Thank you. Thanks again. Yeah.

But that is changing and I think some people say why cant you take advantage of that and at the right time get off and sell them.

Very difficult to do really difficult to do.

But thank you for your question and then we'll try we'll try to improve as we go forward.

Thanks again.

Number three.

Speaker 17: Hi, hi, Brian . Incheon, on, also from Vancouver. Nice to see you. Good to see you. I have a question on inflation and on commercial real estate.

Hi, Brian and John All from also from Vancouver, Nice to see you getting you I have a question on inflation and on commercial real estate.

How is inflation affected the insurance businesses.

Is it a net plus or a net negative.

Speaker 17: And on commercial real estate, we've seen some big name investors defaulting on some of their debt.

And on commercial real estate.

We've seen some big name investors defaulting on some of the.

Speaker 17: given your relationship with Kennedy Wilson? It would be interesting to hear your thoughts. Yes, so our first question on inflation. Inflation, as you heard, our President said, the claims cost increase. So it's all question.

Debt.

Given your relationship with Kennedy Wilson.

Interesting to hear your thoughts yeah. So first question on inflation inflation as you heard the President says the claims cost increase so it's all a question of prize is the rate taking that into account or not if the rate. If you have a 8% inflation in the rates takes.

Speaker 7: is the rate taking that into account or not. If the rate, if you have a 8% inflation and the rates are taking that into account, and you don't normally you have inflation, material, cost of goods inflation, but you have social inflation.

That into account and you know you don't want not only you have inflation material.

Cost of goods inflation, but you have social inflation plaintiff's lawyers asking for big lots of money.

Speaker 7: plaintiffs lawyers asking for big amounts of money. So all of that is taken into account by our guys. And so they still feel, as they said, that in the main, that the industry conditions are good. But we have to look at all of that, because many a time our claims last property is not that long, but still in a maybe two years to get the construction all done.

So all of that is taken into account by our guys and and so they sell feel as they said that the in the main that the industry conditions are good but we have to look at all of that because many of the time our.

Claims last you know property is not that long, but certainly you know maybe a year maybe at two two years.

To get the construction are all done.

Speaker 7: But we take that into account. Now, real estate is a very good question.

But we take that into account now real estate is a very good question.

Speaker 7: First of all, we deal with Kennedy Wilson, mainly apartment buildings. Apartment buildings, you can increase your rents if there's inflation.

First of all we deal with Kennedy Wilson, mainly apartment buildings, but when buildings you can increase your rents if there's inflation.

One year.

Speaker 7: office buildings pretty tough and shopping center is pretty tough. And so we feel very comfortable with Kennedy Wilson. We've never lost money with them. And we don't think that'll happen yet.

Office buildings pretty tough.

And shopping centers pretty tough and so we feel very comfortable with Kennedy Wilson, we've never lost money with them and we don't think that'll happen.

Speaker 4: So, but commercial real estate and a lot of the real estate is done by small banks in the United States. I think like 40% of

Yet.

So but.

Commercial real estate and a lot of the real estate is done by small banks in the United States I think like 40% of.

Commercial real estate.

Speaker 4: is done by small banks lending money. And after the Silicon Valley bank and the signature bank and other banks that are failed in the US, credit is becoming tighter, tougher to, you know, they're looking at...

It's done by small banks lending money and after the Silicon Valley Bank and the signature bank and other banks that have failed in the U S.

Credit is becoming tighter tougher too you know they're looking at.

Speaker 4: Depart the leaving and can be lend. So what then that happens is it's very tough to refinance. If you've got money, you've got a mortgage loan coming in, due this year or next year. There's a lot coming in the next five years. This year in 2005, our My

That's leaving and can be land. So what then that happens is its very tough to refinance if you've got money you got a mortgage loan coming due this year or next year and there's a lot coming in the next five years.

Speaker 7: You may not, first of all, the rates are higher. So you did your mortgage at two or three percent, and now it's like six or seven, eight percent, and it doesn't, the math doesn't jive. Or you just don't get the financing. And so.

You may not first of all the rates are higher so you did do a mortgage at two or 3% then now it's like six or seven 8% then it doesn't matter doesn't jibe.

All.

You just don't get the financing and so.

Speaker 7: Commercial real estate is a risk, is a pretty big risk because it benefited. You know there's something called cap rates, right? So you get rental income.

Commercial real estate as a risk.

As a preview.

Big risk because it benefited you know there's something called cap rates rates. So you get rental income.

Speaker 7: for like 10 years and then you got a discounted. Do you discounted by 3% 5% used to be 10 and I remember 10 11 12% went down to buildings were trading at 3%.

For like 10 years, and then you got a discounted do you discounted by 3%, 5% used to be at 10, and I Remember 10, 11, 12% went down to billings were trading at 3% discount 3% so the value somewhat very high.

Speaker 7: discount 3% so the values are much very high. So that might all change and there might be problems. You can't tell. You'll only see it. We never saw the problems in Silicon Valley Bank and, you know, that they had extended long. Bye.

So that might all change and there might be problems, Yeah, you can't tell.

You'll only see it we never saw the problems and Silicon Valley Bank and you know that they had extended long they bought treasury bonds and they bought mortgage bonds and they find out a set of deposit thinking devices, they're never going to leap.

Speaker 4: Treasury bonds and they bought mortgage bonds and they financed with deposit thinking Departments are never going to leave

Speaker 7: And they left one day, 42 billion for the Silicon Valley Bank. And the next day, as a treaty, $100 billion was going to leave.

And they left one day 42 billion for Silicon Valley Bank and the next day as really a $100 billion was going to leave.

And they closed the bank.

Speaker 7: So I think those two areas could be problematic. We're very comfortable with Kenny Wilson, being in business for 25, 30 years, very, very careful, and anytime we make a mortgage loan.

So I think.

I think those two areas are going to be a could.

Could be problematic, we're very comfortable with Kenny Wilson being in business for 25, 30 years, very very careful and anytime we make a mortgage loan just.

Speaker 4: like 50% the first move, it's 50% to the value of the

Like 50%, so first mortgage 50% too.

The value of the.

Speaker 4: apartment building and then there's equity and there are people that Kenny Wilson knows so we The button look after all of that for us. We're very comfortable with what we have

Apartment building and then there's equity and there are people that Kenny Wilson knows so Wade.

Button looks after all of that for us and we're very comfortable with what we have.

Speaker 17: Actually, I was thinking more in terms of whether you see it as an opportunity for you going forward. You've thought traditionally been big in the... Hard.

Actually I was thinking more in terms of whether you see there's an opportunity for you going forward you have traditionally been in the real estate.

Speaker 7: So we're in mortgages and we've been buying like two or three mortgages, floating rate. So we're getting, I think, I said, seven percent plus in our mortgages. Very well secured, very little capital use. But we feel comfortable with what we have, but the function of what else is happening in the marketplace, right? And so we're looking at it. We have a terrific partner with Bell MacMaro.

So we are in our mortgages and we.

We've been buying like two or three of mortgages floating rate. So we're getting I think I've said, 7% plus and our mortgages very well secured very little capital use.

But.

But we feel comfortable with what we have but the function of what else is happening in the marketplace right and so we're looking at it we have a terrific partner with the Bell Mcmorrow.

Speaker 4: Thank you for your question. Nice to see you again. Thank you. Thank you. Good night. Jeff, any question that you had?

So thank you for your question nice to see you again, thank you.

Yeah.

In the night.

Jeff.

Are there any questions that you had you alluded to Silicon Valley banks. Our next question is actually about Euro bank.

Speaker 15: you alluded to Silicon Valley banks or next question is actually about Euro Bank.

Speaker 15: Three banks in the United States have recently declared bankruptcy and credit sues was forced to merge with UBS. Has Eurobank been impacted in any way? So that's a really good question.

Three banks in the United States have recently declared bankruptcy and credit Suisse was forced to merge with UBS has eurobank been impacted in any way.

So that's a really good question, we've got probably our second biggest investment is eurobank.

Speaker 4: Probably our second biggest investment is Euro Bank. Focueur is running it, done a fantastic job. And Focueur is right here. Focueur, would you answer that question? Give a nice round of applause. It comes all the way from Athens. Applause. Thank you, Prem.

<unk> is running at done a fantastic job and forecast right here for Kevin would you answer that question and give them a nice round of applause. It comes all the way from Athens.

Thank you Brian .

Speaker 18: First, let me introduce myself from Focchio Caravíaz, the CEO of Euro Bank since 2015. But I'm with the company quite for sometimes since 1997.

First let me introduce myself I'm man.

For Q V is a sea of Eurobank since 2015.

But there was a company wide for some time since 1997.

Speaker 18: So I have seen in my career a lot of...

So I have seen in my career, along a lot of <unk>.

Speaker 18: crisis like the one that we have experienced recently, but we have gone through a more severe crisis, the Greek sovereign crisis between 2010, 2017. So we have really seen a lot of difficult situations.

Crises like the one that we have experienced recently, but we have gone through a more severe crises.

The Greek sovereign crisis for between 2010 2000.

17, so we have really seen a lot of difficult situations.

Speaker 18: Europe and I would say is in the best situation that has been for the last maybe 15, 20 years. 2022 was a fantastic year, was a record year in terms of profitability. The tangible Bucubali pressure grew by 20%.

Eurobank I can chase in the best.

The situation there.

It's been for the last maybe 15 20 years 'twenty to 'twenty two was a fantastic year was a record year in terms of.

Profitability, the tangible book value per share grew by 20%.

Speaker 18: to one year and seventy cents, driven by strong organic profitability, but also another of positive one-off.

Two one urine 70 cents driven by strong organic profitability, but also a number of positive one offs.

Speaker 18: The bank has taken advantage of the macro situation, both in Greece and the region. Actually, although Prem usually talks about Greece, this time he didn't mention anything, Greece is doing very well. In 2022, the economy grew by close to 6%.

The bank has taken advantage of the macro situation, both in Greece, and the region actually.

Although ram usually talks about Greece at this time you didn't mention anything English is doing very well.

Yeah.

The 'twenty to 'twenty two the economy grew by close to 6%.

Speaker 18: All sectors did very well in the economy, despite the global challenges of inflation and the energy price.

All sectors did very well in a economy. Despite the global challenges of inflation and then.

Energy prices.

Speaker 18: In 2023, we expect the economy to grow by another 2.5, maybe 3% well above the European average. And my expectation is that over the next, let's say, three or maybe five years, Greece will do much better than the European others.

In 'twenty to 'twenty, three we expect the economy to grow by another two.

2.5, maybe 3% well above the European average and my expectation is that over the next let's say three or maybe five years, Greece will do much better than the European average and there may be one.

Speaker 18: And maybe one another, you figure that I should mention, is one of the legacy problems of the 10-year-long financial crisis. This is the debt to GDP. And a few years ago, it was over 200%. We expect this year to be around 160%. Still, this is a high figure, but the trend is positive. And definitely, the progress is quite significant.

Either you figure that they shouldn't mention is one of the legacy problems over the then a year long financial crisis. This is the debt to GDP.

A few years ago. It was over 200% we expect this year to be around 160% still this is a high figure, but the trend is positive and definitely the progress is quite significant.

Speaker 18: By the way, we expect the country to return into investment grade the second half of 2023. Now, let me come back to the performance of the bank. About two months ago, when we announced the full year 2022 financial results, we also provided some highlights about our three-year plan 2023 2025.

By the way we expect.

The country to returning to investment grade the second half of 2023 now let me come back to the performance of the bank about two months ago, when we announced our full year 2022 financial results. We also provide with some highlights.

Out of our three year plan 2023 to <unk> 2025.

Speaker 18: And we provided some guidance to our shareholders about what we expect. So we said that for this year...

And we provided some guidance to our shareholders about what we expect so we said that for this year for 2023, we expect earnings per share about 22 cents versus 18% in 'twenty to 'twenty, two which is 22% increase.

Speaker 18: for 2023, we expect an express air about 22 cents versus 18 cents.

Speaker 18: in 2022, this is 22% increase. Actually, higher interest rates...

Actually <unk>.

Higher interest rates.

Speaker 18: are something very positive for Eurobank. High interest rates are boosting our net interest income. As most of our assets are in floating rates and therefore they are pricing according.

Something very positive for Eurobank.

High interest rates are boosting our net interest income as most of our assets.

In floating rates and therefore, they're priced.

Very pricing accordingly.

Speaker 18: Deposit in whimmedsion SVB are mainly retail, very well diversified. And the asset quality remains very resilient, given that our exposure to, let's say, the higher risk segments like the CRE loans that were mentioned before is very small. It's very limited.

Deposits and as we mentioned as we B are mainly retail very well diversified and the asset quality remains very resilient.

Given that our exposure to let's say the higher risk segments like the CRE loans of the war or mentioned before is very small is very limited.

Speaker 18: So we have upgraded our targeted return on equity from 10% that was last year to 13% for the three year period, 2023, 2025. And based on this expectation, the banks would generate about 200 basis points of organic capital per annum. And this is going to be used to finance the loan growth. The cost ofured fund make unstable investments are within one thoughts.

We have upgraded our targeted.

Our return on equity from 10% that was last year to 13% for the three year period 'twenty to 'twenty three 'twenty 'twenty five.

And then based on this expectation the bank should generate about 200 basis points of organic capital per annum.

And this is going to be used to finance the loan growth is expected to be around seven.

Speaker 18: seven percent Aranum to enhance further the capital ratios, but also to finance the shareholder reward. And we have already started in 2020.

7% per annum to enhance further the capital ratios.

But also to finance the shareholder reward and we have already started.

In 2023 by announcing it.

Speaker 18: A fast step, a small step, but I think it is important to make the first step, so we announce...

First step is more step, but I think it is important to make the first steps, so we announced and a share buyback scheme for about one 5% of our share capital and we also said that in 2024 on awards, we envision a payout ratio of at least 25% more.

Speaker 18: and a share by Baxkeem for about 1.5% of our share capital. And we also said that in 2024, onward, we envisaged a payout ratio of at least 25% mainly in cash dividend. So...

Mainly in the cash dividend so overall.

Speaker 18: Eurobanks doing well. I'm very optimistic about the performance of the bank in 2023 and the years to come.

Eurobank is doing well I'm very optimistic about.

About the performance of the bank in 2023 into the years to come.

Speaker 18: taking obviously into account and without underestimating the global challenges that exist in the economy.

Taken all obviously into account and without underestimating the global challenges that exist in the in the economy. Let me close with a few words about the stock performance I think the market has rewarded us well about the actual performance of the bank of the stock was up 15% in 2020.

Speaker 18: Let me close with a few words about the stock performance.

Speaker 18: I think the market has rewarded as well about the actual performance of the bank, the stock.

Speaker 18: and 28% here to date. So...

And the 28% year to date, so so far so good.

Speaker 11: We'll go ahead.

That's right.

Yes.

Okay.

We'll go out to a number three.

Speaker 19: Hi, hi frame good to see you again. Thank you. My question is more broad base. You have made like you know this distinction between value investing and other kinds of investing Beat investing and text talks are more broadly like growth investing

Hi, Brian good to see you again.

My question is more broad base.

You have me like you know this distinction between value investing in other kinds of investing Butte and resting in tech stocks are more broadly like growth investing today in many times in your laterals as well Charlie Munger has a quote where he says like basically all kind of interesting is value in western growths you are buying likes.

Speaker 19: Today and many times in your letters as well. Charlie Munger has a quote where he says like basically all kind of investing is value investing because you are buying like cents on dollars. So.

On dollar so since you bought our stalwarts of investing World I would love to hear more about your parts like why is this an important distinction to make and how your thought process has evolved on this over the past decade, or so and you know that's a very good it's just that.

Speaker 19: Since you both are stalwarts of investing world, I would love to hear more about your thoughts. Like why is this an important distinction to make and how your thought process has evolved on this over the past decade or so. Thank you. No, that's very good. It's just that exactly right. Every all investing is value. But if you're paying for five years and 10 years ahead.

Exactly right every all investing has value, but if you are paying for five years and 10 years ahead today and our expectation is that so theres a lot of assumptions that you have to make so when the you know the Fang stocks all the assumptions that were made in 'twenty one.

Speaker 4: today and your expectation is that so there's a lot of assumptions that you have to make. So when the Frank stocks, all the assumptions that were made in 21.

Pan out for 'twenty, two and perhaps in 'twenty, three and perhaps for a few more years.

And so.

All investing as value I think Mr. Templeton said it well when he said if you can buy future earnings future, earning at a low price today, that's going to be a here terrific investment, but you got to be right on your future earnings and.

Speaker 4: future earnings at a low price today. That's going to be a terrific investment, but you've got to be right on your future earnings. And so you have to be very, very careful on predicting the future because very tough to know. So that's what we've refrained from. Or as Mr. Ben Graham said, there's a lack of a margin of safety.

So you have to be very very careful on predicting the future because very tough to know and so that's what we've refrained from.

Or as Mr. Ben Graham said, there's a lack of a margin of safety. So you have to be careful.

Speaker 4: you have to be careful on that. But I think Charlie's exactly right. All investing is value. It has to be value for it to work out. And some like the Frank Starks had extrapolations that didn't come true. And in my view that still got a ways to play. It still has a...

But I think Charlie's exactly right all investing is value it has to be value add.

For it to work out and <unk>.

Some are the like the Fang stocks had extrapolation that didnt come true and in my view that still got a ways to play.

It still has a ways to go before it.

Speaker 4: It's all over but but thank you for your question and thank you for coming. Thank you Jeff anything from your end. I'm seeing a few more questions from This next one is about the IFRS Accounting rule change on reserves and the question is what are the hazards you see with discounting insurance reserves?

It's all over but but thank you for your question and thank you for coming thank you.

Jeff anything from you all and I'm, saying.

A few more questions from.

This next one is about the Ifr S accounting rule change on reserves and the question is what are the hazard Juicy with discounting insurance reserves, yeah, because the problem of discounting is you can do a different rates different time periods and.

Speaker 7: Yeah, because the problem with discounting is you can use different rates, different time periods, and it no longer is a certain, there's a certainty to it. And so we just think it's fraught with error. And over time might incentivize management to expand, because they're very scapital and they have to do something. So we're not in favor of discounting.

It no longer has a certain there's a certainty to it and so we just think it's fraught with error.

And over time might.

Might incentivize management to expand.

They raised capital and they have to do something.

Well, we're not in favor of discounting.

Speaker 4: But no one asked us, it's already, I have for us 17, there's law and we have to live by it. But we think it might have negative connotation.

But no one asked us it's already Ivar a 17, Theres law and we have to live by it.

But we think it might have negative connotations.

Speaker 15: We have a question about the recent sale of the pet insurance business.

We have a question about.

The recent sale of the pet insurance business.

Speaker 15: The question is as follows I believe you have stated in the past that no insurance business within the Fairfax family Whatever be sold again nevertheless the pet insurance business was sold in 2022 does this mean you have changed your mind and that any business can be sold at the right price no That's a very good question and that's certainly not the case So we said no businesses for sale we've sold first capital

The question is as follows I believe you have stated in the past that no insurance business within the Fairfax family would ever be sold again. Nevertheless, the pet insurance business was sold in 2022 does this mean you have changed your mind in that any business can be sold at the right price nor I took very good question.

And that's certainly not the case.

So we said that no business is for sale, we've sold our first capital.

Speaker 4: because it came from Mr. Atapun. We sold ICS Alambad because we weren't able to get control of it. I've talked to you about that previously. And in this case,

Because it came from Miss out upon we sold.

Ics, our Lombard because we weren't able to get.

Get control of it I've talked to you about that previously and in this case.

Speaker 4: Gary McGatty called Andy Bernard late last year and said that you know it might be something we can't compete. We've got a bad insurance.

Gary Mcgeady called Andy Barnard late last year, and said that you know it might be something we can't compete we've got a pet insurance, we sell insurance, but the people who supply food pet food supply.

Speaker 4: We sell insurance with people who supply food, pet food, they supply the hospitals and all sorts of things which they're looking at putting together. And so we thought about it and we saw Andy and I and Peter, we discussed it, we agreed with it. And but it came from the company, that's important. It's not like we initiated the fail.

Hospitals, and all sorts of things, which they're looking at.

Putting together and so we thought about it and we serve and Eni in beta we discuss it we agreed with it and but it came from the company. That's important it's not like we initiated the sale and it was done really well.

Speaker 4: and it was done really well.

Speaker 4: You know, I've said we, someone said we got a...

We are you know as I've said, we are someone who says we've got a good price but for them. It gave them a platform for expansion. These are the guys have done coffee.

Speaker 7: good price, but for them, it gave them a platform for expansion. These are the guys who have done coffee.

And then number one on coffee.

Speaker 4: out at about 10 years ago, they've done restaurants in the United States.

Got it about 10 years ago, they've done restaurant restaurants in the United States and they take the focus on in the industry and they expand in it and so I think I think they're going to do very well, yeah, we liked them very smart.

Speaker 4: and they take the focus on an industry and they expand in it. And so I think they're going to do very well. Yeah, we like them very smart.

Speaker 4: But that's how it happened. So we'll always be sensitive about that. But you can't buy a R2C, you can't buy our company like Krummen Foster, we're just not gonna sell it. And why would we when we've got these massive

And.

But that's how it happened so we'll always be sensitive about that but you can't buy Odyssey you can't buy a company like Crum <unk> Forster.

We're just not going to sell it and why would we when we've got these massive buildup of float $31 billion of float and it's not understood by most people what a big big plus it is they'll have that and and it's a long term benefit so yeah. So.

Speaker 4: you know, build up a float, $31 billion of float, and it's not understood by most people what a big, big plus it is to have that. And it's a long term benefit. So yeah, so there are exceptions like that, but it proves the rule.

There are exceptions like that but it proves the rule.

Do you have time for two more questions maybe okay. We'll go right ahead. So the first one.

Speaker 14: Maybe, okay, we'll go right ahead. So the first one, we have been a very patient investor in Blackberry and Resolute. How do you decide when to exit such investments? Right?

We have been a very patient investor and Blackberry and resolute, how do you decide when to exit such investments.

Speaker 7: And so in the case of Resolute, we had an offer to buy it, I think 60% above where it was selling. I gave you all the details. It looked good on a short term basis, but over the...

And so in the case of Resolute, we had an offer to buy at I think 60% above where it was selling I gave you all the details and look good on a short term basis, but over the over the time of our investment we didn't make any money and Blackberry is a good question, we've got a terrific guy.

Speaker 7: over the time of our investment. We didn't make any money.

Speaker 7: And Blackberry is a good question. We've got a terrific guy, John Chen, who saved the company from bankruptcy. But he hasn't been able to grow the business.

Hi, John Chen, who soul of who.

Save the company from bankruptcy.

He hasn't been able to grow the business.

Speaker 7: And so that's still a focus for John . And we're waiting.

And so that's still a focus for <unk>.

John .

And.

We're waiting should we say.

Speaker 15: Last question is on digit. Just what is the status of a potential IPO and when will the final government regulatory approvals be made?

Last question is on digit just what is the status of a potential IPO and when will the final government regulatory approvals.

Speaker 7: So there's a, you know, like an SEC approval before you take an IPO for digit, and they're going through that process sometime in June , perhaps they get that. There's another regulatory approval that the Department of Insurance has to give for us to go to 74%.

Be made so.

There's a you know like an FCC approval before you take an IPO for digit and theyre going through that process sometime in June perhaps they get that there's another regulatory approval that the department of insurance is to give for us to go to 74% and both of them on the process.

Speaker 7: and both of them are in the process of taking place. And digit is, you know, it can grow at 45%, 50%. I showed you the slide. Those regulatory hurdles in India just take time. We expect to get them. And we think that a ton of interest in the IPO and that Carmeche Corial, ton of fabulous job will be very...

Less of taking place.

And digital is.

No.

Can grow at $45 50 per cent I showed you this slide.

Those regulatory hurdles in India, just they just take time, we expect to get them and we.

We think there's a ton of interest in the IPO and that combination go out done a fabulous job will be very successful.

Speaker 7: Jeff, thank you for the questions from the net. Thank you all for coming.

Jeff. Thank you for the questions from the net.

Thank you all for coming.

Speaker 7: Yeah, number four has sneaked in. I just looked at the last question from number four. Sure, from Tim Pachowski from ACR out of St. Louis. We've been shareholders for about 13 years.

Yeah number for Hess snake, there neither have loved other.

Last question from number for sure from a simple chassis from ACR out of St. Louis we've been shareholders for about 13 years.

Speaker 10: and maybe a good one to end on, which is where do you see Fairfax in the next 10 to 20 years? And do you have a goal of evolving towards what Berkshire has done in terms of being the last man standing?

And maybe a good one to end on which is where do you see Fairfax in the next 10 to 20 years.

And do you have a goal of evolving towards what Berkshire has gone in terms of being the last man standing.

Speaker 10: Or are you happy with the structure that leaves the company triple B rate?

Or are you happy with the structure that leaves the company Triple B rated.

Speaker 4: No, I'm on the second question. I don't think we're comfortable at all in terms of, we want our affairs like a much higher rating in our minds.

No.

The second question I think I don't think we're comfortable at all in terms of we run our affairs like a much higher rating in our minds than the rating agency, but you know they don't look at it like we do and I think the fact that we've got operating income will help them.

Speaker 4: than the rating agency. But you know, they don't look at it like we do. And I think the fact that we've got operating income will help them. But so the rating we are focused on increasing it, significantly from triple B.

But.

There are rating we are focus on increasing it significantly from triple B.

Speaker 4: on the first. The structure and Fairfax otherwise is to make a return. If you told me, in 37 years ago, when we had $10 million of business, that today we'd be in the top 20, or like Andy was saying in the top 12.

On the first the structure on Fairfax, otherwise is to make a return if you told me and 937 years ago. When we had $10 million of business that today, we'd be in the top 20 are like Andy was saying in the top 12.

Speaker 4: be unbelievable, right? You couldn't believe that. And so we just take one year at a time and try to do the best thing we best we can do for our shareholders, for the company, for our customers. And, and ultimately results speak for themselves. And, you know, we've had a terrific compound at rate of return from inception, less in the last 10 years. But that's your, that's end date sensitive.

Beyond believable right you Couldnt believe that.

And so we just take one year at a time and try to do the best thing. We are best we can do for our shareholders of the company for our customers and.

And the element <unk> results speak for themselves and.

We've got a terrific compounded rate of return from inception.

Less than the last 10 years.

But that's yeah, that's N data sensitive and a few good years in all of those numbers will change.

Speaker 7: and a few good years and all those numbers will change.

Speaker 7: So thank you for your question. Thank you all for attending another of our RGM. And we love having you. Thank you for our president like David Sokol and Pokhion and others who have attended. And we look forward to seeing you again next year. Thank you.

So thank you for your question. Thank you all for attending another of our AGM.

And we love, having you and thank you for app rather than like a.

David Sokol.

Pork yarn and others, who have attended and we look forward to seeing you again next year. Thank you.