Western Reports Second Quarter Financial Results

TORONTO, ON / ACCESS Newswire / August 26, 2025 /The Western Investment Company of Canada Limited (TSXV:WI) ( "Western " or the "Company ") today reported its financial and operating results for the three and six months ended June 30, 2025. The interim financial statements and management 's discussion and analysis have been filed on SEDAR+. Unless otherwise indicated, financial figures are expressed in Canadian dollars and comparisons are to the prior period ended June 30, 2024.

In the second quarter of 2025, Fortress Insurance continued to achieve strong growth in Gross Written Premiums ( "GWP ") ¹ while Western 's equity-accounted investments delivered strong operating results and returned capital to the Company.

Net income in the second quarter of 2025 increased to $0.75 million compared with net income of $0.1 million in the prior-year comparative period. Western 's expenses now include consolidated expenses from Fortress Insurance and a comparison to previous periods is not currently meaningful.

"Fortress Insurance continues to expand its premium base through growth in its existing customer portfolio, while maintaining strong underwriting discipline in a softening market. We are equally encouraged by the strong performance of our equity-accounted investments, with all three companies delivering solid year-over-year increases in both revenue and profitability " said Paul Rivett, Western 's Chief Executive Officer.

Western financial highlights

		Three Months Ended June 30,
		2025			2024			Change
Total insurance service result 2		$	357,243				-				357,243
Investment income 2			355,780				-				355,780
Income (loss) from equity investments			778,957				442,152				336,805
Other finance income			480,102				187,329				292,773
Net income			751,997				103,987				648,010

1 GWP is a Non-GAAP measure defined as all premiums written during the year, including both earned and unearned auto insurance premiums, and fronting fees earned

2Fortress Insurance results are consolidated into Western from fourth-quarter 2024

Fortress Insurance

In the second quarter, Fortress Insurance grew GWP to $15.4 million from $10.6 million in the second quarter of 2024. Total investment portfolio, including cash and cash equivalents, ended the quarter at $24.6 million compared to $23.5 million as of December 31, 2024. Insurance revenue increased 17% year-over-year but total insurance service result decreased by 11% due to increased claims and professional fees incurred during 2025 as compared to the prior-year period. Total insurance service result was also impacted by the long-term policies written under the specialty programs, which have an end-tailed profitability. Profitability on these longer-term programs will increase gradually over their term. Total investment income increased 20% year-over-year.

The trailing 12-month loss ratio at June 30, 2025 (incurred losses, including incurred but not reported, over earned premium) was 53.2%, compared to 59.7% in the prior-year period, with less claims events during the first half of 2025 in comparison to the first half of 2024.

The trailing 12-month expense ratio and resulting combined ratio was high due to the expenses related to the setup of the new automotive replacement value insurance product and to one-time events, such as the conversion of Fortress 's ESOP to a cash-settled plan, as well as increased professional fees related to the Western/Fortress transaction. Excluding the costs of the transaction, the normalized trailing 12-month expense and combined ratios are 54.9% and 108.1%, respectively.

		Three Months Ended June 30,
		2025			2024			Change
Insurance revenue		$	6,941,105				5,852,846				1,088,259
Total insurance service result			256,392				308,496				(52,104	)
Total Investment income (loss)			267,602				222,233				45,369
Net income (loss)			45,813				52,634				(6,821	)
Gross written premiums1			15,406,523				10,559,993				4,846,530

1 GWP is a Non-GAAP measure defined as all premiums written during the year, including both earned and unearned auto insurance premiums, and fronting fees earned

Note: The above table reflects stand-alone Fortress results, excluding consolidation adjustments for the Company

GlassMasters Autoglass revenue grew 14% year-over-year to $14.1 million in the second quarter of 2025. Gross margin increased to 33.1% compared to 31.9% in the prior-year period. EBITDA for the second quarter increased to $2.5 million compared to $1.9 million in 2024. This strong performance was driven by growth in Saskatchewan operations and a focus on labour utilization and cost management.

Foothills Creamery second quarter revenue was up 11% to $11.5 million compared to $10.4 million in the second quarter of 2024. Gross margins improved to 23.5% compared to 21.3% in the prior-year period. EBITDA was $1.0 million in the second quarter of 2025 compared to $0.6 million in the prior-year period. Margins benefitted from 22% year-over-year growth in ice cream sales. Inventory levels as of June 30, 2025 were reduced by $1.6 million compared to the prior-year, due to improved cream management.

Golden Health Carerevenue grew 12% to $2.7 million compared with $2.4 million in the second quarter of 2024, supported by improved occupancy at underutilized homes. EBITDA increased 60% to $0.72 million compared with $0.45 million in the prior-year period. Net income for the quarter was $0.4 million compared with $0.1 million in the comparable quarter of last year. In the second quarter, Golden Health Care declared a return of capital to be paid to shareholders. Western 's share was $0.48 million.

About The Western Investment Company of Canada Limited

Western is an insurance and investments holding company focused on decentralized ownership of insurance businesses and centralized investment management. Western 's shares are traded on the Toronto Venture Exchange under the symbol WI.

For more information on Western, please visit its website at www.westerninvest.ca.

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CONTACT INFORMATION - The Western Investment Company of Canada Limited

Pablo Dancuart, Chief Financial Officer, pdancuart@westerninvest.ca

Advisories

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to future results and plans for Western and its associated companies, acquisitions, financings and returns. Statements containing the words: 'believes ', 'intends ', 'expects ', 'plans ', 'seeks ' and 'anticipates ' and any other words of similar meaning are forward-looking. All statements included herein involve various risks and uncertainties because they relate to future events and circumstances beyond Western 's control.

The forward-looking statements are based on certain key expectations and assumptions made by Western, including expectations and assumptions concerning the ability of Western to successfully implement its strategic plans and initiatives.

Although Western believes that the expectations and assumptions on which the forward-looking statements made by Western are based are reasonable, undue reliance should not be placed on the forward-looking statements because no assurance can be provided that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks relating to regulatory compliance, risks relating to demand for the products and services provided by Fortress Insurance and other portfolio companies, risks relating to future growth prospects and business opportunities, risks that management is not able to execute its business strategy, and the impact of general economic conditions in Canada and the United States. A description of additional assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Western 's disclosure documents on the SEDAR+ website at www.sedarplus.com.

The forward-looking statements contained in this news release are made as of the date hereof and Western undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release also contains financial outlook information ( "FOFI ") about prospective results of operations and book value, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this news release was made as of the date of this news release to provide information about management 's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for any other purpose. Western disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, except as required by applicable law.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

"Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. "

SOURCE:The Western Investment Company of Canada Limited

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