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  5. FFH: Given the age of Prem Watsa, does Fairfax have a detailed succession plan? [Fairfax Financial Holdings Limited Subordinate Voting Shares]
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Q: Given the age of Prem Watsa, does Fairfax have a detailed succession plan? Is anyone being groomed? What do you feel the impact on the company would be if something happened to Prem? The P/E seems quite low at 7.83. Is this a relatively safe entry point? What do you see as the biggest concerns with this company?

Thanks
Asked by Brad on February 13, 2026
5i Research Answer:

In late 2025, Watsa confirmed in the book The Fairfax Way that his son, Ben Watsa (age 46), will succeed him as chairman to ensure continuity and preserve the company's culture. Ben Watsa has been on Fairfax's board since 2014 and manages Marval Capital, a successful India-focused fund with strong returns, positioning him as the clear heir apparent. Watsa emphasized no immediate plans to step down but highlighted the plan's role in reassuring shareholders. Daughter Christine has also been on the board for eight years. Upon his departure, we might expect some short term weakness in the stock but would not view the risk as hugely material. The biggest risks are likely deceleration in the insurance business, and general market malaise, which would hurt FFH's investment portfolio. But frankly, if the latter happens. FFH would likely just go on a buying spree. A strong market conversely might cause investors to look beyond typical value stocks like FFH. While no stock is completely safe, the low valuation certainly reduces risks and we think the stock is attractive todat after its YTD decline.