Fairfax Financial Holdings Ltd. announced today that certain of its U.S. subsidiaries have sold an aggregate of 2 million common shares of Zenith National Insurance Corp. common stock to Wachovia Securities at a net price of US$66 per share.

Net proceeds from the transaction will be US$132 million resulting in a pre-tax realized gain of approximately US$79 million.

Following the completion of this trade, Fairfax will continue to hold approximately 3.9 million shares, or approximately 16%, of Zenith common stock, on a fully diluted basis.