[Letterhead of TIG HOLDINGS, INC.]



Media Contact:    Jill Renken               Investor Contact: John Swanson
                  TIG Insurance Co.                           TIG Holdings Inc.
                  (972) 831-4666                              (972) 831-4648


                               TIG CLOSES MERGER 
               BECOMES PART OF FAIRFAX FINANCIAL HOLDINGS LIMITED

     NEW YORK, NY (April 13, 1999) -- TIG Holdings,  Inc. (NYSE:  TIG) announced
today the  completion  of the merger with FFHL Inc.,  an  indirect  wholly-owned
subsidiary of Fairfax Financial  Holdings Limited (TSE: FFH). As a result of the
merger,  holders of common  shares of TIG at the time of the merger are entitled
to receive  US$16.50 per share.  TIG will  promptly send such  shareholders  the
documents necessary to exercise this entitlement.

     TIG Holdings, Inc. is the holding company for a property/casualty insurance
group that offers  reinsurance under TIG Reinsurance and,  primarily,  specialty
insurance  products  under TIG Insurance.  The company  markets its products and
services nationwide through a select number of producer partners.

     Fairfax Financial  Holdings Limited is a financial services holding company
which,  through its  subsidiaries,  is engaged in  property,  casualty  and life
insurance  and   reinsurance,   investment   management  and  insurance   claims
management.

     The  statements  made  by the  Company  in  this  release,  which  are  not
historical  facts,  are  forward-looking  statements.  Actual results may differ
materially  from  those  projected  in  the  statements.  These  forward-looking
statements  involve risks and  uncertainties,  including but not limited to, the
following:  changes in interest rates; changes in premium volumes; the frequency
and severity of  catastrophic  events;  increased  competition;  regulatory  and
legislative  changes;  changes in loss  payment  patterns;  changes in estimated
overall adequacy of loss and LAE reserves;  changes in key management personnel,
changes in general  market or economic  conditions and other risk factors listed
from time to time in the  Company's  filings  with the  Securities  and Exchange
Commission, including the Annual Report on Form 10-K for the year ended December
31, 1998 and the Quarterly  Report on Form 10-Q for the quarter  ended  December
31, 1998.


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