The Western Investment Company of Canada Limited (Western) has announced robust financial and operating results for the third quarter and first nine months ending September 30, 2024. The company also highlighted significant strides in its transition to becoming a property and casualty insurance and investment holding entity.
A key development in Western’s strategic evolution was the post-quarter acquisition of additional shares in Fortress Insurance Company.
Western increased its ownership in Fortress from 28.45% to 83.57%, positioning the subsidiary as a cornerstone of its growth strategy. Fortress’s gross written premiums surged 102% to $30.9 million for the first nine months of 2024, bolstered by new programs and expansion into the Ontario market.
Western’s president and CEO, Scott Tannas, expressed confidence in the company’s direction: “Our transition towards a property and casualty insurance and investment holding company is going smoothly. Subsequent to the end of the quarter we increased our total ownership in Fortress to 83.57%, and we expect to acquire the remaining shares in the near future.”
Western reported equity income of $1.01 million for the third quarter, a 48% increase compared to $681,383 in the same period last year, marking the strongest third-quarter results in five years. Normalized income rose 60% year-over-year to $781,454.
This performance compensated for earlier seasonal challenges in the second quarter, which impacted some of the company’s associate businesses.
Net income for the quarter increased 7% to $521,104. However, year-to-date net income saw an 86% decline to $149,959 due to one-time items such as uncapitalized transaction costs and extraordinary gains recorded in 2023.
Western expects its financial results to evolve following the consolidation of Fortress as a subsidiary beginning in the fourth quarter. The company is finalizing a private placement of up to $30 million in proceeds, set to close on December 6, 2024, and anticipates acquiring Fortress’s remaining shares shortly.
The company noted that costs associated with recent acquisitions and its transformation strategy would impact short-term financials. However, equity income from associate businesses is projected to align with typical fourth-quarter seasonality.
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