Theo Chiarot

Theo Chiarot asked how Fairfax balances share repurchases with maintaining holding company liquidity, and what specific valuation trigger would prompt the company to become significantly more aggressive with buybacks.

Answer

Peter S. Clarke, President and COO of Fairfax Financial, acknowledged that this is a complex and frequently discussed internal question, given the many options for deploying excess capital. He stated that Fairfax continues to buy back its stock at current prices but noted that market conditions are dynamic, making it difficult to specify a precise valuation trigger for more aggressive buybacks.

Theo Chiarot, a private investor, asked about Fairfax Financial's strategy for balancing share repurchases with holding company liquidity, and what specific valuation trigger would lead the company to become significantly more aggressive with buybacks.

Answer

Peter S. Clarke, President and COO of Fairfax Financial, acknowledged it as a difficult question, stating that the company constantly evaluates its many options for excess capital and dividends. He confirmed that at current prices, they continue to buy back stock, having done a significant amount last year, but emphasized that the situation is subject to change and constantly re-evaluated, making it difficult to put a specific number on a trigger.