Fairfax Financial Holdings has received approval from the Toronto Stock Exchange for a new normal course issuer bid that allows it to repurchase up to 2,025,315 subordinate voting shares and 950,000 Series K preferred shares through September 2027. The program begins Sept. 30, 2026, and runs through Sept. 29, 2027, according to a Sept. 28 filing with the U.S. Securities and Exchange Commission.
The authorized purchases represent approximately 10% of the public float for each security class. Fairfax said subordinate voting shares bought under the program will either be cancelled or reserved for share-based payment awards, while Series K preferred shares purchased will be cancelled. Purchases may be made through the TSX or other alternative Canadian trading systems in accordance with applicable exchange rules.
The new authorization covers subordinate voting shares with 20,823,876 shares outstanding and a public float of 20,253,151 shares as of Sept. 16. The daily purchase limit for the subordinate voting shares is 15,137 shares, based on TSX rules governing purchases relative to average daily trading volume, subject to block purchase exemptions. The Series K preferred shares have 9.5 million shares outstanding and a daily purchase limit of 2,226 shares.
Fairfax said its board approved the program and that the company considers its subordinate voting shares and Series K shares an attractive investment opportunity in appropriate circumstances. The company also said purchases of subordinate voting shares are intended to enhance the value of shares held by remaining shareholders, reflecting the rationale stated in its issuer-bid announcement.
The new program follows Fairfax’s previous normal course issuer bid, under which the company had authorization to purchase up to 2.187 million subordinate voting shares along with Series I, Series J and Series K preferred shares. Fairfax said it purchased 1,593,566 subordinate voting shares under that program during the preceding 12 months through the TSX and other Canadian trading systems at a volume-weighted average price of C$2,280.87. No preferred shares were purchased under the previous bid.
Fairfax has also established an automatic share purchase plan with a designated broker. The arrangement allows purchases of subordinate voting and Series K shares during periods when Fairfax would normally be restricted from trading because of regulatory requirements or internal blackout periods. Under the plan, the broker will make purchases based on parameters established by Fairfax before each applicable blackout period, while purchases outside those periods remain at Fairfax’s discretion.
The automatic purchase plan becomes effective Sept. 30 and will end when the annual purchase limits are reached, the normal course issuer bid expires or Fairfax terminates the arrangement. The company said the plan qualifies as an automatic securities purchase plan under Canadian securities laws.
The reduction in the authorized subordinate voting share limit from the prior program reflects the current public float calculation. Fairfax’s latest filing shows that its outstanding subordinate voting shares declined from the 22.48 million reported in September 2025 to 20.82 million as of Sept. 16, 2026. The company also redeemed all outstanding Series I and Series J preferred shares at the end of 2025, leaving Series K as the preferred-share class covered by the new bid.
Fairfax is a holding company whose businesses are primarily focused on property and casualty insurance, reinsurance and associated investment management. The new issuer bid does not require Fairfax to purchase the full authorized amount, and the company said decisions regarding purchases under the program will be made in accordance with market conditions, share prices and other factors.
The latest authorization therefore establishes a potential source of shareholder capital returns over the next year rather than representing an immediate commitment to repurchase the maximum number of shares. Any purchases will remain subject to the terms of the issuer bid, TSX requirements and the company’s own trading parameters.
