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2 0 2 5 I N V E S T O R D A Y June 12, 2025
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This document and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part either directly or indirectly without the prior written consent of each of The Westaim Corporation (“Westaim” or the “Corporation” or the “Company” or “we” or “our”), CC Capital Partners, LLC (“CC Capital”), Ceres Life Insurance Company (“Ceres Life”), Arena FINCOs (as defined in Westaim’s March 31, 2025 Management’s Discussion and Analysis (“MD&A”)) and Arena Investors Group Holdings, LLC (“AIGH” or inclusive of Arena Investors, LP ("Arena") and Arena Institutional Services ("AIS")). Ceres Life is a cloud-native, highly scalable, de novo annuity platform. Inspired by the belief that technology can reinvent the way insurance providers meet the needs of investors, Ceres Life is building a nimble, highly efficient, and risk-conscious insurance company that provides simple-to-understand and easily accessible annuity products to create better outcomes for policyholders. Arena (a company of which Westaim owns 100% of the equity interests) operates through its wholly-owned subsidiaries and subsidiaries which Arena has a controlling interest. Arena operates as two businesses, Arena Investors and AIS. Arena Investors operates as an investment manager offering third-party clients access to fundamentals-based, asset-oriented credit and other investments that aim to deliver attractive yields with low volatility. Arena Investors provides investment services to third-party clients consisting of but not limited to institutional clients, insurance companies, private investment funds and other pooled investment vehicles. AIS provides non-investment advisory services for Arena and third parties. The Company’s investment in Arena is accounted for using the equity method and consists of investments in corporations or limited partnerships where the Company has significant influence. This document is not, and under no circumstances is it to be construed as, an advertisement or a solicitation for any investment or any investment product with respect to Westaim or any of the entities described herein. The information set forth herein does not purport to be complete and no obligation to update or otherwise revise such information is being assumed unless required by law. Where any opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. In addition, certain of the information contained herein is preliminary and is subject to change. Unless otherwise stated, the information contained herein is current as of the date of this presentation. There is no guarantee that any of the goals, targets or objectives described herein will be achieved. This document is not intended to provide specific investment, financial, legal, accounting and/or tax advice. This document contains certain historical results and performance data including, without limitation, relating to Arena FINCOs and Arena. Such historical results and performance data have been prepared and provided solely by the relevant party and have not been independently verified or audited. The historical results and performance data have been included in this document for illustrative purposes only. The historical results and performance data are in no way indicative of any future results, performance or returns by any of Westaim, Arena FINCOs and Arena. Certain statements in this presentation are “forward-looking statements”. Any statements that express or involve discussions with respect to predictions, target yields and returns, internal rates of return, expectations, beliefs, plans, projections, objectives, Arena operating leverage and AUM (as defined herein) growth, assumptions or future events or performance (often, but not always using words or phrases such as “expects”, “does not expect”, “is expected”, “seeks”, “endeavours”, “anticipates”, “does not anticipate”, “plans”, “estimates”, “believes”, “does not believe” or “intends”, “does not intend” or stating that certain actions, events or results may, could, would, might or will occur or be taken, or achieved) are not statements of historical fact and may be “forward-looking statements”. In particular, but without limiting the foregoing, this presentation contains forward-looking statements pertaining to: expectations of strategic transactions; expected benefits to Ceres Life from organic distribution; effects of the Transaction (as defined herein) on Westaim (including its shareholders), Ceres Life and Arena; Ceres Life expanding into other distribution channels; demand for Ceres Life’s products; projected growth of Ceres Life’s annuity book; operational milestones for Ceres Life; Ceres Life’s ability to leverage the capabilities of Arena; intended investments and strategies of Arena; and the rebranding and new corporate name of Westaim. Forward-looking statements are based on expectations, estimates and projections as well as other relevant factors at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. These include, but are not limited to, the risk factors discussed in Westaim’s Annual Information Form for its fiscal year ended December 31, 2023, (as same may be modified or superseded by a subsequently filed Annual Information Form) and the Company’s management information circular dated November 19, 2024, both of which are available on SEDAR+ at www.sedarplus.ca Except as required by law, Westaim does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement or to update such forward-looking statement. Disclaimer Safe Harbour Statement
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Supplementary financial measures concerning the Arena FINCOs and Arena (the “Arena Supplementary Financial Measures”) contained in this presentation are unaudited and have been derived from the unaudited financial statements of Arena FINCOs and Arena for the quarter ended March 31, 2025, which have been prepared in accordance with either International Financial Reporting Standards (“IFRS”) or US GAAP. Such statements are the responsibility of the management of the Arena FINCOs and Arena. The Arena Supplementary Financial Measures, including any Arena FINCOs and Arena non-GAAP measures contained therein, may not be reconciled to IFRS and so may not be comparable to the financial information of issuers that present their financial information in accordance with IFRS. The Arena Supplementary Financial Measures should be read in conjunction with the Company’s historical financial statements including the notes thereto and the related MD&A as well as the Company’s other public filings. The Arena Supplementary Financial Measures have been primarily provided by the management of the Arena FINCOs and Arena. Although Westaim has no knowledge that would indicate that any of the Arena Supplementary Financial Measures contained herein are untrue or otherwise misleading, neither Westaim nor any of its directors or officers assumes any responsibility for the accuracy or completeness of such information, or for any failure by the Arena FINCOs and Arena to disclose to Westaim events or facts which may have occurred or which may affect the significance or accuracy of any such financial information but which are unknown to Westaim. Westaim disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the Arena Supplementary Financial Measures, their accuracy, completeness or by reason of reliance by any person on any of them. The information contained herein is based on publicly available information, internally developed data and other sources. Although Westaim believes such information to be accurate and reliable, it has not independently verified any of the data from third party sources cited or used. All amounts herein are in United States million dollars unless otherwise indicated. Certain comparative figures have been reclassified to conform to the presentation of the current period, and certain totals, subtotals and percentages may not reconcile due to rounding. Unless otherwise noted, all references to the share capital of the Company herein is after giving effect to the Company’s December 31, 2024 six to one consolidation. Safe Harbour Statement Disclaimer
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Westaim Westaim reports its interim consolidated financial statements using Generally Accepted Accounting Principles (“GAAP”) and accounting policies consistent with IFRS. Westaim uses both IFRS and non-generally accepted accounting principles (“non-GAAP”) measures to assess performance. Westaim cautions readers about non-GAAP measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. Book Value Per Share (“BVPS”) is a non-GAAP measure – see section 15 of Westaim’s MD&A for the quarter ended March 31, 2025 for a discussion of non-GAAP measures including a reconciliation to Westaim’s financial results determined under IFRS. Arena FINCOs and Arena Arena FINCOs and Arena use US GAAP, IFRS and non-GAAP measures to assess performance. Net Return (a non-GAAP measure) on the Arena FINCOs investment portfolios is the aggregate of investment income, net of gains (losses) on investments less interest expense, management, asset servicing and incentive fees, and other operating expenses of the Arena FINCOs divided by average carrying values for the Arena FINCOs, for the period. Gross Return (a non-GAAP measure) on the Arena FINCOs investment portfolios is the aggregate of investment income, net of gains (losses) on investments less interest expense divided by average carrying values for the Arena FINCOs, for the period. Realized Internal Rate of Return (“IRR”): Realized calculations are presented net of investment level expenses and gross of fund level fees (e.g. management and incentive fees), which can impact returns significantly. Current IRR reflects all investment activity, i.e, prior actual cash flows and future projected cash flows (which are discounted as of the reporting date), from the inception of each applicable investment through March 31, 2025. The current IRR may not be representative of the realized IRR upon exit of each investment, which may increase or decrease. Underwritten IRRs: Investment-level gross underwritten IRR represents the internal rate of return prior to or at the time of making the initial investment as reflected in and supported by loan agreements, including, but not limited to, note purchase agreements and origination agreements. The underwritten IRR is one of many metrics considered by Arena prior to investment and is not typically updated after the initial funding date. The underwritten IRR may be presented as a single percentage or a range. Such gross IRRs are estimated and do not take into account any entity level management fees, incentive allocation and/or any other associated fees, all of which may significantly reduce the net return received attributable to any investment. These underwritten IRRs are not a proxy for investment performance for any strategy or fund. The underwritten IRRs disclosed herein are being presented for the purpose of providing insight into the investment objectives of, Arena detailing anticipated risk and reward characteristics in order to facilitate comparisons with other investments and for establishing a benchmark for future evaluation of Arena Investors’ strategy. The IRRs are also being presented because financially sophisticated investors may find this information useful in determining where Arena’s strategies may fit within their investment portfolios. The IRRs included in this presentation are not intended, and must not be regarded, as a representation, warranty or prediction that any Arena vehicles will achieve any particular return with respect to any particular investment opportunity or for a particular time period, or that Arena and its investors will not incur losses. In evaluating these IRRs, it should be noted that (a) there can be no assurance that Arena will be able to source and consummate investments of the type it is seeking to make and (b) the assumptions underlying the IRRs may prove not to be accurate or not materialize. There can be no assurance that the objective of the investment shown can be met or that substantial losses will be avoided. Assets under management (“AUM”): AUM refers to the assets for which Arena Investors provides investment management. AUM is generally based on the net asset value of the funds managed by Arena Investors plus any unfunded commitments. Arena Investors’ calculation of AUM may differ from the calculations of other asset managers, and as a result, may not be comparable to similar measures presented by other asset managers. Arena Investors’ calculations of AUM are not based on any definition set forth in the governing documents of the investment funds and are not calculated pursuant to any regulatory definitions. Fee Paying Assets Under Management ("FP AUM") refers to the AUM on which Arena earns management fees, servicing expenses and/or incentive fees. Important Disclosures Non-GAAP Measures
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With respect to the section on Arena the information therein is being provided solely in relation to the management company and the investment manager, including their funds, subsidiaries and affiliates. Returns shown are unaudited. Past performance is not indicative or a reliable indicator of future performance. Actual results may vary. The information set forth herein does not purport to be complete, is unaudited and subject to change. Arena has no obligation to update or revise such information other than as may be required by applicable law. Unless otherwise stated, the information contained herein is current as of the date of the presentation. This document does not constitute investment advice nor is it a recommendation or an offer of investment advisory services or products. No person in any jurisdiction may treat this document as a solicitation or offer of any advisory product or service. A prospective investor must rely solely on the terms and associated disclosures in any final offering memoranda, investment management agreement and associated subscription documents (if any), which would constitute the only basis upon which offerings of any product or service may be made. Investments in Arena vehicles are speculative in nature and involve risk. There can be no assurance that investment objectives will be achieved and investment results may vary substantially over time. These investments are not intended to be a complete investment program for any investor. There is no secondary market for an investor’s interest in Arena funds and none is expected to develop. Arena’s funds are not registered under the Investment Company Act of 1940 and accordingly are not extensively regulated. Opportunities for redemption and transferability of interests are restricted, so investors may not have access to capital when it is needed. Leverage may be employed in the funds, which can make investment performance volatile. Valuation of the investments may involve uncertainties and the exercise of judgment. An investor should not make an investment unless the investor is prepared to lose all or a substantial portion of its investment. The fees and expenses charged in connection with investments may be higher than the fees and expenses of other investment alternatives and may offset profits, and the performance- based compensation paid to Arena may create an incentive for Arena to make more speculative investments than would otherwise be the case. Arena has total authority and control over its funds and the use of a single advisor applying generally similar investment programs could mean a lack of diversification and, consequently, higher risk. For a comprehensive list of risk factors, an investor must review the risk factors as specified in the related confidential information memorandum for a specific fund or investment management agreement, which will be made available upon request. The information provided herein should not be considered a recommendation regarding a particular investment. The actual and potential investments discussed herein are meant to be examples of Arena’s investment approach. It should not be assumed that any of the investments discussed herein will prove to be profitable, or that the investment recommendations or decisions made by Arena in the future will be profitable. In addition, Arena makes investments in Corporate Securities, including liquid investments such as convertible structured investments, which are not fully discussed herein. Further information is available upon request. The statements contained herein contain certain forward-looking statements that are based on Arena’s beliefs as well as assumptions made by and information currently available to Arena. When used herein, the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “going forward,” “intend,” “may,” “modeled,” “ought to,” “plan,” “project,” “seek,” “should,” “will,” “would,” and similar expressions, as they relate to Arena or Arena’s management are intended to identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to investments, business prospects, future developments, trends and conditions in the industry and geographical markets in which Arena operate, Arena strategies, plans, objectives and goals, as well as Arena ability to control costs, statements relating to prices, volumes, operations, margins, overall market trends, risk management and exchange rates. These forward-looking statements reflect Arena’s views at the time such statement were made with respect to future events and are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward- looking statements involves known and unknown risks and uncertainties. As of April 1, 2025, Arena had $4.1 billion in AUM and programmatic capital. Programmatic capital includes callable capital to discretionary and non-discretionary separately managed accounts. Net annualized returns inceptions to date are net of fees as disclosed and net of deal and operating expenses (including asset servicing expenses). All returns are based on the reinvestment of principal, interest, and dividends received. As applicable, fee schedules for returns shown include management fees with a range of 0.35%-2%, incentive fees with a range of 7.5% incentive to 20% and preferred returns or hurdles applicable on specific vehicles. Important Disclosures Arena
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Agenda Introduction Ceres Life Arena CC Capital Conclusion Q&A 6
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Insurance Investment Company Investment Company Focused on Insurance & Asset Management Integrated Insurance & Asset Management Company Westaim’s Transformation 2009 – 2012 2014 – 2024 Since April 2025 7Note: Refer Appendix for JEVCO and Skyward Specialty case studies.
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A L O O K B A C K
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Unlock Value Created for Shareholders Westaim Strategy May 2024 AGM Special Dividends Opportunistic Share BuybacksSource / Build Excellent Financial Services Businesses Opportunistic Investing Partnership Approach Business Building Long-Term Horizon Asset Management Capital Allocation Insider Alignment 9
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2024 Report Card Strategically Monetize Westaim’s interest in Skyward Specialty common shares • Following Skyward Specialty’s successful IPO in 2023, Westaim completed tax-efficient monetization of its remaining interest with a final sale on September 10, 2024 • After approximately 10 years of ownership, Westaim received total net proceeds of approximately US$455 million (C$620 million), resulting in a gain of approximately US$285 million (C$413 million) and an internal rate of return of 12.8% (US$) and 14.8% (C$) Arena FINCOs • Completed assessment of Arena FINCOs; Monetizing the portfolio, with proceeds to be strategically utilized Target 2024-2025 Actions 10
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2024 Report Card Accelerate the growth and development of Arena Investors • Arena Investors: Ongoing assets under management growth and additional infrastructure development to focus and expand operating leverage Return capital to Shareholders through opportunistic share buyback • Since September 2021, acquired and cancelled approximately 2.7 million common shares Target 2024-2025 Actions 11
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2024 Report Card Allocate capital in line with Westaim’s strategy of partnership- driven investing, business building, and long-term asset management with strong insider alignment • CC Capital invested US$250 million in Westaim at C$28.50 per share, expanding total investable capital base to ~US$700 million • Strategic transactions expected to increase intrinsic value, unlock long-term upside, and support sustained equity compounding Target 2024-2025 Actions 12
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CC Capital and Westaim to Create Integrated Insurance and Asset Management Company
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Integrated Insurance & Asset Management Company • On October 9, 2024, Westaim announced a strategic partnership with CC Capital (the “Transaction”), including an investment of US$250 million in exchange for common shares and warrants of Westaim, for an approximate 36% ownership interest (assuming the vesting and exercise of all warrants)1 • Ceres Life, led by Deanna Mulligan, is a cloud-native, highly scalable annuity platform • Ceres Life is expected to benefit from substantial organic distribution through a unique partnership, significantly accelerating its growth • Transaction anticipated to deliver more assets to Arena and support Ceres Life in scaling its business to serve a broader range of policyholders 2 • The Transaction is expected to provide Arena with long-dated insurance assets and better position Arena to increase its third-party AUM, creating a path to a potential US$10 billion of AUM with just the existing equity capital base3 • The Transaction received strong shareholder support, with over 99.9% of votes cast in favor • As part of the Transaction, Westaim completed a plan of arrangement on December 31, 2024, under which it redomiciled from Alberta, Canada to Delaware, USA, and consolidated its shares on a 6-for-1 basis 4 • Chinh Chu (CC Capital Senior Managing Director and Founder) to serve as Westaim’s Executive Chairman • Westaim Board: 5 nominated by Westaim; 5 nominated by CC Capital; 1 independent Director • Ceres Life and Arena Boards report into Westaim Board and include Deanna Mulligan (CEO, Ceres Life) and Dan Zwirn (Arena CEO & CIO) 5 On April 3, 2025, CC Capital and Westaim completed the Transaction; anticipated to generate strong and sustainable value creation for Westaim shareholders 14
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Flywheel Engine Note: Simplified Transaction Structure (1) Exact ownership stake dependent on warrants; approximately 44% ownership assuming warrant conversion. Integrated Insurance & Asset Management Company Attractive ROE and Capital Compounding Illustrative $6B Invested Assets 100% Equity Ownership ~36% Ownership(1) $250 million Primary Investment 15
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• Strong record of investing in and partnering with financial services • Deep expertise and experience building integrated insurance asset management strategies • Led by a highly experienced, industry-leading team • Enables Westaim shareholders to directly participate in upside value creation opportunities • Pivoting to an operating company with a well-defined go-forward business plan and strong earnings potential • Ceres Life earnings bolstered by Arena’s asset management capabilities, strategic distribution partner, and cloud-native technology platform • Long term stewardship and investment by CC Capital • Legacy as a strong investor with differentiated expertise in private credit opportunities • Significant value creation opportunity that can be accelerated Integrated Insurance & Asset Management Company Integrated Insurance & Alternative Asset Management Company 16
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Expected uplift in intrinsic value, long-term upside potential, and attractive equity compounding Strategic Partnership with Exceptional Leadership
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• President and CEO of Westaim since April 2009, leading successful investments and realization in JEVCO Insurance Company, Skyward Specialty Insurance Group, Inc. and, alongside Dan Zwirn, the formation and development of Arena • CEO and President (2000-2012) of Goodwood Inc., an alternative investment manager that provides services to institutional and high-net- worth clients • Director, member of the Research and Executive Committee, and shareholder of Connor Clark Private Trust (1990-1999) Cameron MacDonald CEO & Director • 25 years leading alternative credit businesses, including Arena, investing in over 25 countries and deploying ~$5.6bn into 390+ privately negotiated transactions since launch in 2015(1) • Built, co-founded, or was day- one sole investor in 150+ specialty finance and alternative credit enterprises, platforms, and JVs • Assumed role as CFO and Chief Risk Officer (“CRO”) at transaction close, responsible for leading all operational, financial, risk, and control processes for Westaim • Former Senior Managing Director, Chief Operating Officer (“COO”), and CFO of CC Capital • Managing Director and Treasurer of Blackstone for over 11 years (2009-2020). He was also the COO for Blackstone Liquidity Solutions and a member of the firm's Valuation Committee and Enterprise Risk Committee • Prior to Blackstone, worked at Merrill Lynch for 10 years, including a role as CFO for Merrill Lynch Bank & Trust (1) Excludes structured private convertibles. Our Experienced Management Team has a Strong Track Record Westaim Matthew Skurbe CFO & CRO; Director Dan Zwirn CEO & CIO Arena • Former CEO (2011-2020) and Chairman (2020) of Guardian Life, leading Guardian to 10+ years of growth, doubling pre-tax operating income and increasing the balance sheet to ~$80bn • After Guardian, focused on building a de novo, next generation insurance company • Ms. Mulligan served as a trustee on the Board of Directors for The Vanguard Group (2017–2024), and as a Director at DuPont de Nemours, Inc. (2021–2025) Deanna Mulligan CEO; Westaim Director Ceres Life • Led 2017 acquisition of Fidelity & Guaranty Life for ~$2.1bn; Executive Chairman of the Board and control party for Form A filing • Joined Blackstone in 1990 and spent 25 years at the firm, holding various senior leadership roles, including Senior Managing Director, Co-Head of Private Equity, member of the firm’s Executive Committee, and Head of Financial Services investing Chinh Chu CEO; Westaim Executive Chairman CC Capital
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2025 Westaim Annual General Meeting June 12, 2025
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01 Strategy and Team 02 Operations and Technology03 Market Opportunity AGENDA 04 Outlook
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Ceres Life Strategy • We are building a life insurance company focused on annuity products that have significant market tailwinds due to the growing demand for retirement solutions. Market volatility tends to increase demand for guaranteed income. • Our business is underpinned by a highly scalable, cloud native technology platform that is unencumbered by legacy systems and integrates with and enables leading IMOs. Technology gives us both market and cost advantages over the long term. • Our technology features AI integrations from day one and ongoing innovation and development. • Our committed distribution partners, Advisors Excel (“AE”) and Innovation Design Group (“IDG”), provide significant distribution capability. We are actively exploring opportunities to partner with additional IMOs and plan to expand into other distribution channels over time. • Our partnership with Arena provides differentiated asset management. • We have attracted a highly talented and experienced team that is excited about the significant market opportunity we have in an industry of largely legacy business systems.
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Attractive $15T 1 market and business opportunity Leading distribution partnerships Technology as a differentiator Deep investment capabilities Strong balance sheet and risk culture Demand for annuities, retirement and pension products provides an attractive opportunity Distribution partnerships will support successful launch Fast and flexible platform delivers operational and cost advantages Arena’s capabilities difficult for smaller insurers to replicate Financial flexibility and risk management Significant growth in fixed annuities over recent years Growth fueled by (1) an aging population, (2) a market and rate environment that provides attractive investment opportunities, and (3) high consumer interest in principal- protected and lifetime income offerings Partnerships with Advisors Excel, a fast-growing IMO focused on annuity, Medicare, and life insurance production, and Innovation Design Group We intend to expand distribution to other IMOs, and over time, other distribution channels A modern cloud platform supports legacy-free infrastructure, enabling seamless and flexible integration of systems, APIs and cyber security, thereby supporting agents and distribution partners Artificial Intelligence (AI) and other automation technologies expected to deliver operational efficiencies Investment capabilities meaningfully overlap with the needs of an insurance balance sheet Extensive sourcing network with 50+ proprietary JV relationships Focus on risk, duration and diversification Committed capital from Westaim, a public parent company Our team’s industry experience enables us to put prudent risk management at the core of everything we do – finance, technology and operations We are targeting initial capital levels above and beyond what is expected of a more mature company Our business strategy is grounded in our 5-part value proposition 1. Source: Bloomberg.
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Deanna Mulligan Chief Executive Officer Former CEO (2011-2020) and Chair (2020) of Guardian Life with ~$80B balance sheet at time of departure Carrie Marlatt Chief Financial Officer and Interim Chief Risk Officer 30 years of experience in financial services, including strategy and finance roles at AIG and Corebridge Financial Joe Bentivoglio Head of Operations Former insurance operations VP at Group 1001, Guggenheim, and OneAmerica Financial David Levy Co-Chief Technology Officer Partner, DevAltus; former product engineering leader at Insurtech start-up; ex-Guardian Life Tom Olds Head of Innovation Managing Director, Yorkville Data Technologies; former Guardian Life SVP of data and analytics; founder of data science start-up Kevin Goldstein Co-Chief Technology Officer Partner, DevAltus; engineering and software leader with 22+ years of experience in financial services Our experienced management team has a strong track record Ceres Life leadership team CC Capital and Westaim leaders Chinh Chu • Founder and Senior Managing Director, CC Capital • Appointed Executive Chair, Westaim Doug Newton • Founder and Senior Managing Director, CC Capital Cameron MacDonald • Chief Executive Officer, Westaim Matthew Skurbe • Chief Financial Officer and Chief Risk Officer, Westaim • Chief Financial Officer, Arena Investors • Senior Advisor, CC Capital Richard DiBlasi • Chief Strategy Officer, Westaim • Senior Managing Director, CC Capital Peggy Huang • Chief Investment Officer, CC Capital Insurance Advisors Dan Zwirn • Chief Executive Officer and Chief Investment Officer, Arena Investors Erik Askelsen Chief Legal Officer 25 years of legal experience, including leadership roles at American Equity, Athene and Aviva June Guan Chief Actuary 20 years of experience as a life and retirement actuary, including roles at Brighthouse, MetLife and TIAA-CREF
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46M 48M 49M 51M 53M 55M 56M 56M 58M 61M 72M 78M 0 100 200 300 400 45 50 55 60 65 350 550 650 450 600 70 75 500 700 50 150 250 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $232B $231B $217B $195B 45M $307B $228B $377B $424B 2030 $215B 2035 $236B $251B Ceres has an attractive market and business opportunity. There is continued demand for MYGA and FIA products commensurate with growth in the retired population. Individual annuity sales by product vs. age 65+ population growth 2014-2024, $B and M 1. All other annuities includes deferred income, fixed immediate, traditional variable, and RILA products Source: LIMRA, US Census, Oliver Wyman analysis. People age 65+ All other annuities1 MYGA FIA Significant correlation between population of individuals 65+ and annuity sales Market has grown by 6% CAGR; MYGA & FIA see significant increase in overall % of market share
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We have partnered with two of the fastest growing distribution partners in the country, who, together, form the largest seller of annuities in their channel A D V I S O R S EXCEL Products attuned to agent and customer preferences Co-developed product with Innovation Design Group based on feedback from agents and customers Customized technology platform User-friendly technology platform facilitates enhanced customer and agent experience (e.g., real-time information flows) Aligned incentives Advisors Excel has a long track record of partnering with CC Capital Regulation-compliant, professionalized model Advisors Excel and Innovation Design Group require advisors to complete specific training on consumer best-interest practices and mandate compliance with insurance marketing regulations Mutual investment of resources by Ceres Life and IMOs Aligned incentives and a professionalized model 2 1
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We plan to expand our distribution network to other IMO and non-IMO partners $151B Non-IMO channels $77B IMO channel 38% 22% 18% 9% 9% Bank B/D: Full Service National B/D: Independent Career Agent 3% Direct Response Other 2 MYGA and FIA sales across IMO and non-IMO channels 1 2024, $B and % Significant opportunity for growth beyond in IMO Channel We are in discussions to expand and diversify our distribution 1. Additional IMOs 2. Banks 3. Broker-Dealers 4. Registered Investment Advisors Reinsurance, including the assumption of blocks of business and flow, business is also part of our strategy 1. As of December 2024; 2. Includes registered investment advisor sales Source: Wink’s Sales and Market Report, Oliver Wyman analysis.
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Our technology is designed to provide a differentiated value proposition Unconstrained modern technology infrastructure Harnessing AI for a differentiated customer experience Protecting Ceres Life and our customers Unlocking the power of data No legacy constraints Scalable and future-proof Single source of truth Real-time data intelligence AI-driven automation Operational efficiencies Defend against cyber threats Compliance and governance De novo platform with no legacy systems enables unconstrained modern technologies to operate seamlessly, with end-to-end straight through processing A cloud-native, serverless architecture that scales dynamically to meet the evolving needs of agents, IMOs / distributors, and policyholders A unified, real- time data platform ensuring accurate, and consistent information across all systems, supporting seamless collaboration and rapid insights Continuous data processing and advanced analytics to surface actionable insights, improve risk assessment, and optimize customer interactions Leveraging artificial intelligence and machine learning to streamline operations, reduce manual processes, and enhance decision-making for advisors and IMO partners AI-driven efficiencies and optimized infrastructure to maximize speed, agility, and prudent business growth while minimizing costs Technology infrastructure designed and built with a strong cyber foundation from the onset Enterprise-grade security with built- in regulatory compliance, audit trails, and proactive monitoring to ensure trust and reliability
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Ceres Life Sees Significant Potential For Scaling its Annuities Book Illustrative Scale Opportunity $200 – 300MM $750 – 1,000MM $10 - 20B $50B+ $30 - 40MM $300 – 500MM operating expense at legacy carriers 1 0 20 40 60 80 100 120 140 160 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2025 2026 At Scale Legacy Carriers US Dollars Cumulative Annuity Sales Ceres Life Operating Expense Legacy Carrier Operating Expense Ceres Life expects modest growth in operating expenses Legacy carriers achieve limited operating cost leverage Notes: (1) Based on estimate of legacy carrier operating expenses ranging from 50 – 90 bps of general account assets. (2) Operating expenses exclude commissions. 2 2
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We have delivered against key operational milestones, and our operations are in place and ready for “go-live” 2024 Mar 2024 – Feb 2025: Developing technology systems and processes to support operations and finance Oct 2024: Publicly announced Ceres Life, including Westaim ownership Jun 2024: CC Capital formed Salem Group Holdings (“SGH”) to incubate Ceres Life 2026 Jan 2025: Opened call center June 2025: MYGA product launch Feb 2025: Acquired ManhattanLife of America Insurance Company (now Ceres Life) April 3, 2025: Close of Westaim transaction FIA product launch est. Fall 2025 Key milestones (non-exhaustive) 2025 Feb 2025: TDI approved MYGA product Mar 2025: Re- branded as Ceres Life Insurance Company
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AIGH is a global financial institution with over 180 people in 8 global offices including its affiliates, complemented by an extensive network of joint venture partners, operating in over 20 countries.
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33Contents 1 ABOUT ARENA INVESTORS GROUP HOLDINGS 2 ENVIRONMENT 3 ARENA INVESTORS 4 AUM GROWTH
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34 ABOUT ARENA INVESTORS GROUP HOLDINGS
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About Arena Investors Group Holdings (“AIGH”) 35 AIGH is a global alternative investment firm managing assets on behalf of institutional and private investors through two core business units: Arena Investors ("AI"), a multi-strategy credit investment platform focused on diversified alpha-creating strategies, and Arena Institutional Services ("AIS") which provides services and solutions for companies or assets seeking operational or capital structure improvement and efficiently priced capital. 8 GLOBAL OFFICESON-THE-GROUND IN 20 COUNTRIES180+ EMPLOYEES ~40% annual AUM growth; growing product platform $4.4 Billion(1) in assets, managing multi-strategy, excess capacity, and stable income strategies Significant market opportunity with minimal incremental operating expenditure Leveraging services provided to AI investments for third parties Arena Institutional Services 1) These amounts include both committed and undrawn capital, and Programmatic Capital. Programmatic capital includes callable capital to discretionary and non-discretionary separately managed accounts and certain pooled investment vehicles. In June of 2025, Arena’s AUM and programmatic capital increased by approximately $300 million bringing total AUM and programmatic capital to approximately $4.4 billion.
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36About Arena Investors Arena Investors, a multi-asset manager with significant experience in insurance asset management, enables access to attractive risk-adjusted returns • Opportunistic approach targets investments with attractive returns per unit of risk and meaningful downside protection • Access to full spectrum of fixed income assets, ratings, structuring, and securitization capabilities necessary to enable optimal capital efficiency • Deep focus around risk, duration and diversification • Fully built platform with sourcing, underwriting, surveillance, servicing, and operating capabilities • Proprietary IT platform that systematizes a custom investment process into a technology solution that features efficiency, scalability, controls, governance, transparency, and reporting $4.4B Assets under management and programmatic capital(1) Highly differentiated global multi- strategy investment firm Vast global origination and servicing network Unique sourcing model that supports smaller insurer access to investment solutions Team Embedded Investment Philosophy Robust infrastructure • Highly capable senior leadership team with extensive expertise investing across all classes of fixed income investments, led by Dan Zwirn • Starting in 2002, Dan Zwirn developed some of the earliest specialty finance assets specifically designed to suit insurer balance sheets • Vertically integrated with Quaestor Advisors, which provides robust infrastructure, surveillance, risk management, and work-out capabilities for all private assets that Arena owns • > 160 professional across investment, servicing and infrastructure in addition to 20+ professionals in capital formation and corporate operations • Global firm with an extensive proprietary investment sourcing network (50+ specialist joint ventures) 1) These amounts include both committed and undrawn capital, and Programmatic Capital. Programmatic capital includes callable capital to discretionary and non-discretionary separately managed accounts and certain pooled investment vehicles. In June of 2025, Arena’s AUM and programmatic capital increased by approximately $300 million bringing total AUM and programmatic capital to approximately $4.4 billion.
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The Opportunity Ahead for Arena 37 Strong capabilities position Arena to capture transformation opportunity Arena’s Differentiated Insurance Asset Management CapabilitiesArena’s Unique Market Position Arena operates at institutional quality and scale, which is expected to allow Ceres Life to leverage the capabilities of a multi- strategy manager that would likely be difficult for a similarly small insurance company to replicate. Arena seeks to make investments with differentiated return / risk profiles and does not engage in price-taking / beta. Mono-line Managers Allows for greater excess return and diversification (lower risk) in a universe of investments that competitors cannot access Mega Insurance Asset Managers Single-Strategy Multi-Strategy ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Existing investment capabilities meaningfully overlap with the needs on an insurance balance sheet, spanning ABS / structured products, real estate, corporate credit, and investment grade One-stop solution with ratings, structuring, and securitization capabilities to manage full spectrum of fixed income assets Target attractive returns per unit of risk Focus on meaningful downside protection Extensive sourcing network with >50 proprietary JV relationships Systemized investment process with extensive controls and risk management driven by proprietary technology platform Dedicated portfolio management and servicing capabilities Distinguished track record with >$5bn of capital deployed since inceptions and a 19% gross realized IRR Highly experience team with a deep supporting cast
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38 ENVIRONMENT
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0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Arena Investors – Environment / Outlook 39 Federal Funds Rate New news is affirmation of irresponsible fiscal policy with and without tariffs Fed Balance Sheet Money Supply Source: Board of Governors of the Federal Reserve System (US) 0% 2% 4% 6% 8% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Millions of dollars Billions of dollars 0 5,000 10,000 15,000 20,000 25,000 1959 1965 1971 1977 1983 1989 1995 2001 2007 2013 2019 2025 M2
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Arena Investors – Environment / Outlook 40 • Affirmation of continued fiscal indiscipline • Greater concern with the USD as reserve currency • Ratings agency downgrade for US Government • US Government-supported speculative non-cash flow producing asset emphasis • Uncertainty regarding long-term US rating • Elevated risk of stagflation • Greater risk of left-tail geopolitical/event risks • Continued slow “popping” of the 2021 “Everything Bubble” What this last year brought: Implications: • Inflationary tariffs • “Big beautiful” spending • DOGE effect is minimal • No will to control entitlements or defense spending Thus, continued expectations for elevated rates and inflation over the next several years
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Arena Investors – Environment / Outlook 41 The most unprecedented creation of assets in history… …with the yield of everything in reference to zero… …mixed with lots of even more hysteria (e.g., crypto, NFTs, r/WallStreetBets)… …leading to the largest asset bubble in history + inflation… … which is now a slow-rolling series of implosions.
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Arena Investors – Environment / Outlook 42 Where we are today Growth and venture in 2021 The GP/LP universe in 2022 and now accelerating “Search for DPI” US and Europe now Structured now starting with increased delinquencies in most non- aviation structured products sectors Commercial real estate in early 2023 and accelerating Leveraged lending started in late 2023 and accelerating with ever more defaults and LMEs Not yet in Asia- Pacific Illustration of sequential implosion Geographies Impacted Area Impacted Asia-Pacific US Europe Growth and venture Private Funds/LPs Commercial real estate (and beyond office) Corporate leverage finance Structured finance assets Nov 2021 Apr 2023 Jul 2023May 2022 Still to comeApr 2025
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Arena Investors – Environment / Outlook Illustration of barbell opportunity 43 Scalable, homogenous opportunities Special situations / Distress Examples Lower Middle Market Corporate Cash Flow -- CRE Lending -- Asset-Based Finance (“ABF”) Examples Growth Credit -- European Distressed Real Estate -- Continuation Vehicles for Lower-Tier GPs
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44 ARENA INVESTORS
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Stable Income strategies for select asset types with lower absolute but highly compelling return per unit of risk investments Structured Finance & Products Corporate Securities Arena Investors – Platform leveragability 45 Arena’s proprietary sourcing infrastructure, across all corporate, real estate, and structured finance investments areas, at all levels of the capital structure and liquidity, and in all developed markets, allows the firm to review a large number of opportunities and allocate resources to investments that are the most compelling on a risk-adjusted basis for all of its balance sheets Corporate Private Investments Arena’s Business Platforms Real Estate Private Investments Structured Finance & Products Natural Resources European Private Investments Asia-Pacific Private Investments Secondary & Liquidity Solutions Corporate Securities Corporate Private Investments Real Estate Private Investments Whole balance sheet view of most compelling return/risk globally, across the liquidity and cost of capital spectrum with free flow of information and analytical resources Arena Life & Annuity Services (“ALAS”) where Arena manages whole-portfolio (“vertical”) insurance mandates Multi-strategy: Business units and JV network allow for a tremendous amount of flow, with Arena only spending time on a fraction, which further go through a rigorous and systematic memo-based underwriting process Excess Capacity Opportunities where there is more volume relative to multi-strategy positions limits
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Breadth of Capabilities 46 Arena can add value across a broad range of investments, with full balance sheet origination capabilities. Arena manages conservatively around risk, duration and diversification — using its proprietary sourcing capabilities to source and create structured products that add efficiency on the asset side of the balance sheet without increasing investment risk. SECURITIES Origination capabilities across corporate securities,currently manage dedicated CRE and ABS portfolios as tactical “completion” portfolios for insurance companies STRUCTURED PRODUCTS / SECURITIZATIONS Have securitization capabilities to optimize assets investments for insurers ASSETS Broad capabilities in private investments, with approximately $4 billion in institutionalcapital including $200 million of own balance sheet invested alongside and 50% of total AUM from insurance companies LIQUIDITYSPECTRUM Corporate Fixed Income ABS CMBS/RMBS CLOs Esoterics Corporate Real Estate Structured Finance Infrastructure/Assets Loans and Yielding Assets OriginatedSecurities 1) These amounts include both committed and undrawn capital, and Programmatic Capital. Programmatic capital includes callable capital to discretionary and non-discretionary separately managed accounts and certain pooled investment vehicles. In June of 2025, Arena’s AUM and programmatic capital increased by approximately $300 million bringing total AUM and programmatic capital to approximately $4.4 billion.
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Arena Investors – Platform leveragability 47 Arena has the ability to leverage its business units across insurance REAL ESTATE PRIVATE INVESTMENTS • Transitional CMLs • 3-5-year floating residential loans • 7-10 year fixed rate loans • CRE CLOs CORPORATE PRIVATE INVESTMENTS • IG corporate private placements • IG Middle Market lender finance EUROPEAN & ASIA-PACIFIC PRIVATE INVESTMENTS • G20 IG corporate and structured products investments and CMLs CORPORATE SECURITIES • IG securities team led by 25-year Barron’s-rated MD SECONDARY & LIQUIDITY SOLUTIONS • IG NAV loans • IG subscription financings • IG feeder structures STRUCTURED FINANCE & ASSETS • IG CLOs, ABS, and CMBS • IG lender finance • IG securities issued by existing Arena specialty finance platforms NATURAL RESOURCES • IG private placements in power, renewables, infrastructure, and timber • IG ABS in energy assets
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Arena Investors Capabilities – The Full Spectrum of Assets 48 We have capabilities in all of the assets below and each can be a part of an insurer’s portfolio either through rated loan structures, private ABS, and/or valuable residuals with asymmetric return/risk. Corporate • Corporate Fixed Income • Bank Loans • Direct Loans • Lower-Middle Market Loans • ABL Loans • Venture Lending Real Estate Structured Finance & Products Commercial & Industrial Structured Finance & Products Consumer Natural Resources Secondaries • CMBS/RMBS • Commercial Real Estate • Multifamily Property Loans • Real Estate Bridge Loans • Residential Mortgages • NNN Leases • RE NPLs • ABS (incl. Esoteric Assets) • CLOs • Medical Equipment Factoring • Aircraft, Engines and Parts • Entertainment Royalties • Cell Towers • Trade Finance Receivables • Equipment Loans and Leasing • Litigation Finance • Auto Loans, Leases • Commercial Receivables • Intellectual Property • Small Business Loans • Digital Receivables • ABS • Consumer Loans • Tax Liens • Art, Jewelry, and Luxury Assets • Student Loans • Auto Loans, Leases • Medical Receivables • Commission Payments • Debt Settlement Loans • Structured Settlements • Lease to Own Contracts • Energy ABS • VPPs • Royalty Interests • RBL Loans • CFOs • NAV Loans • Private Credit LP Secondaries • GP Continuation Vehicles
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Arena Investors – Platform leveragability 49 Deep team and platform expertise. 1) Across 12 Front Office MDs including CIO. 2) Including PIPEs and loans within JVs. 150+ all-time JVs and… 500+ Originated private transactions since inception(2). Equal to one every calendar week. 280+ Years of experience across Front Office Managing Directors(1) 50+ current JV partnerships and platforms of which… 20+ directly produce IG investments or are adjacent and accretive to producing sourcing for sale
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Sample of Arena Investors' Global Joint Venture Partnerships 50
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Arena Investors – Proprietary Sourcing for Alternatives 51 Arena’s proprietary sourcing infrastructure, which includes its joint venture partners, allows the firm to review a large number of opportunities and allocate resources to investments that are the most compelling on a risk-adjusted basis. Note: Approximate numbers over last 12-month period . . .
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52 AUM GROWTH
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Stable Income strategies for select asset types with lower absolute but highly compelling return per unit of risk investments Arena Investors – Four Forms of Balance Sheet 53 Multi-strategy: Business units and JV network allow for a tremendous amount of flow, with Arena only spending time on a fraction, which further go through a rigorous and systematic memo-based underwriting process Excess Capacity Opportunities where there is more volume relative to multi-strategy positions limits Arena Life & Annuity Services (“ALAS”) where Arena manages whole-portfolio (“vertical”) insurance mandates
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Recent Fundraising 54 Recent fundraising success across third Flagship Special Opportunities Fund as well as Excess Capacity vehicles Sources: FT, Bloomberg Law, Alternatives Watch, Alternative Credit Investor FT Bloomberg Law Alternatives Watch Alternative Credit Investor
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0.4 1.0 2.7 4.4 - 2 4 6 8 10 12 June 2025 Pro forma $10B+ $ B Arena Investors – Growth potential with insurance 55 Multi-strategy Excess Capacity Opportunities Arena Life & Annuity Services Stable Income • Arena is focusing the investment strategy as the broader model shifts to homogeneous, scalable insurance assets. • We are adding insurance capital that is deployed using existing infrastructure and asset generation capabilities. • We have invested ahead of revenue to build elements of this capability. • There is a renewed focus on profitability as we roll forward to scalable strategies. • Future capability builds will have a focus on optimizing for growth and profitability. 1) These amounts include both committed and undrawn capital, and Programmatic Capital. Programmatic capital includes callable capital to discretionary and non-discretionary separately managed accounts and certain pooled investment vehicles. In June of 2025, Arena’s AUM and programmatic capital increased by approximately $300 million bringing total AUM and programmatic capital to approximately $4.4 billion.
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CC Capital + Westaim CC Capital is a private investment firm focused on partnering with high-quality businesses that have compelling customer value propositions and sustainable competitive advantages, which drive long-term performance. CC Capital partners with accomplished leaders and management teams, leveraging its deep industry relationships to drive operational improvements in its portfolio companies, accelerating growth and maximizing long-term value creation. The firm was founded in 2016 by Chinh Chu after a 25-year career at Blackstone, where he served as the Co-head of the Private Equity business and a member of the firm-wide Executive Committee. Chinh has a long and successful track record of leading sizable private equity transactions. Westaim is not a portfolio company, it is an extension of CC Capital. Chinh and CC Capital have been and will continue to be diligently focused on leading the execution of Westaim’s go-forward business plan, stewarding the transformation and growth of Arena, and building Ceres into a leading annuities provider. ➢ Compelling customer value propositions ➢ Sustainable competitive advantages ➢ Attractive secular growth dynamics ➢ High returns on capital ➢ Executives highly involved in due diligence and value creation process ➢ Fit-for-purpose executive stewardship ➢ High-caliber, engaged board of directors ➢ Invest to accelerate organic revenue growth ➢ Drive operational efficiencies ➢ Leverage areas of expertise to drive innovation ➢ Pursue strategic acquisitions The Westaim Thesis Highlights CC Capital’s Investment Approach High Quality Business …and Value Creation Opportunities…With Accomplished Leaders…
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CC Capital and Arena • CC Capital and Chinh have distinctive experience building and stewarding asset managers • Proven track record of developing insurance asset management capabilities • Long history of scale fundraising and investment product development • Global relationships to facilitate deal flow and talent acquisition • Chinh and the CC team are dedicating significant time and resources to Arena’s transformation and growth Westaim is an Extension of CC Capital 1 2 CC Capital Long term, aligned strategic partner with relevant expertise to execute insurance strategy 2CC Capital and Ceres Life • Incubated Ceres Life with Deanna Mulligan within CC Capital and continue to dedicate significant CC resources to the build • Extensive experience investing in and stewarding insurance companies • Global network and internal capabilities to facilitate sourcing and execution of accretive insurance and reinsurance investments • Longstanding industry relationships to bring world class talent and partnership opportunities 1 CC Capital is and will be actively engaged in stewarding Westaim and plans to grow Ceres and Arena into world class businesses, matching the scales of their leading peers. CC will continue to dedicate its significant resources to this effort 3 CC Capital and Westaim • Dedicating significant internal CC resources to Westaim (Chinh Chu, Doug Newton, Matt Skurbe, Richard DiBlasi, Molly Feeney) • Evaluating ongoing opportunities for accretive and strategic investments • Recruited world-class board members 3
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T H E W E S T A I M C O R P O R A T I O N
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Ceres Life provides compelling annuity products and a differentiated, cloud-native technology platform unlocked by strong distribution partnerships, leading to increased origination volumes for Ceres Life and assets for Arena Arena can deliver attractive investment returns to Ceres Life, driving ROE and book value growth Highly Differentiated Operating Company with a Flywheel Engine A synergistic flywheel engine that reinvests earnings into the ecosystem 60 On May 12, 2025, Westaim made an additional US$350 million capital contribution to Salem Group Partners, LP; proceeds to fund the operations and capital of Ceres Life, an advantaged, cloud-native and scalable annuity platform
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(1) Source: Capital IQ (2) Assumes the reinvestment of the cash distribution of C$37.50 per common share paid by Westaim on September 28, 2012 and 6:1 reverse stock split. (3) Compounded annual growth rate is from January 2, 2009 – May 30, 2025, the period current management has been involved with Westaim Solid Share Price Performance(1)(2) 61 CAGR (January 2, 2009 to May 30, 2025) Westaim 16.3% S&P Total Return Index 14.1% TSX Total Return Index 9.8%
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As at March 31, 2025 December 31, 2024 (Amounts in millions of US$ except per share data) Assets Cash $240.8 $301.9 Loan receivable (Arena FINCOs) 13.0 13.0 Other assets 4.4 2.5 Investment in Skyward Specialty - - Investment in Arena 40.5 22.7 Investment in Arena FINCOs 173.7 173.9 Investment in ASOP LP 3.1 3.1 Investment in Salem Group 28.8 - Deferred tax asset 8.3 6.1 Total assets $512.6 $523.2 Liabilities Accounts payable, income taxes payable and accrued liabilities $22.5 $25.7 Deferred tax liability 0.1 0.1 Total liabilities $22.6 $25.8 Shareholders’ equity 490.0 497.4 Total liabilities and shareholders’ equity $512.6 $523.2 Number of common shares outstanding(3) 21,706,501 21,706,501 Fully diluted book value per share - in US$(1) $22.56 $22.88 Fully diluted book value per share - in C$(1)(2) $32.43 $32.90 (1) Period end exchange rates of USD to CDN: $1.43755 at March 31, 2025; $1.43815 at December 31, 2024. (2) For further information, refer to the Notes of the Westaim Financial Statements for the quarter ended March 31, 2025. (3) May 31, 2025, Westaim had 33,551,508 common shares outstanding. Westaim Summary Q1 2025 Statement of Financial Position 62
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W E S T A I M T R A N S F O R M E D
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CC Capital A Transformational Partner 1 Deep Expertise In-House Capabilities Global Relationships Proven Experience
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Ceres Life Insurance Company A Strategic Acquisition 2 Cloud-Native Tech Platform Differentiated Distribution Partnership Operational & Open for Business Experienced Management Team
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Arena Investors A Strong Investment Partner 3 AUM Continues to Grow Well-Positioned for Accelerated Value Creation Global Manager with Significant Insurance Experience
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4 Rebrand and new corporate name coming later this year. The New Westaim A long-term value creator in the life and annuity insurance and asset management sectors.
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Q & A
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A P P E N D I X
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Background Key Metrics • In 2010, an opportunistic purchase of a 100% interest in Jevco for ~C$260 million • In the fall of 2012, after two and a half years of ownership, Westaim responded to an unsolicited offer for Jevco and closed the sale to Intact Financial Corporation for C$530 million • Subsequent to the sale of Jevco in September 2012, Westaim paid a tax efficient distributionof ~C$520 million to its shareholders • Initial Investment: • Proceeds of Sale: • Gross unlevered IRR (C$)(1): • Gross MOIC: C$261.4 million C$530.0 million 28.9% 2.04x Historical Annotated Stock Chart (2) $0.00 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 (1) Excludes Westaim corporate level costs. (2) Reflects historical share prices prior to the October 1, 2023 50:1 reverse stock split; Canadian dollars; Historical data January 2009 – April 2013. (3) For further information,refer to press releases relating to JEVCO posted on Westaim’s website. $0.20 $0.40 $0.60 $0.80 $1.00 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Share Price (C$) Apr 3, 2009: Current WED Management appointed Jan 25, 2010: WED enters into definitive agreement to acquire Jevco from Kingsway Financial and announces a $275 million private placement (at $0.50 per share) May 2, 2012: WED enters into definitive agreement to sell Jevco for $530 million Sep 5, 2012: WED completes sale of Jevco in all cash transaction Sep 28, 2012: WED pays cash distribution of $0.75 per common share (~$520 million) by way of a return of capital Mar 29, 2010: WED completes acquisition of Jevco for $261.4 million Source, Build, Unlock: JEVCO 70
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Background Key Metrics • In 2014, Westaim acquired an interest in Houston International Insurance Group, Ltd (“HIIG”) (rebranded to Skyward Specialty Insurance Group, Inc. (“Skyward Specialty”)) for $75.7 million at a valuation of P/BV of ~0.87x Adjusted Stockholders‘ Equity as at December 31, 2013(1) • Additional investments in 2015 (Elite Acquisition) and 2020 (Rights Offering) were made to support the growth of the business and take advantage of opportunities • On January 18, 2023, Skyward Specialty listed on the NASDAQ under the ticker “SKWD” at US$15.00 per share • Initial Investment • Follow-on (2015) • Follow-on (2020) • Total Investment (1) For further information, refer to press releases relating to Skyward Specialty posted on Westaim’s website. (2) Includes commissionsfees relating to Skyward Specialty secondary offerings, cash received by Westaim post redemption of Westaim HIIG Limited Partnership, MSA fees and consulting fees; does not include Westaim corporate level costs. $ 75.7 million $ 50.6 million $ 44.0 million $170.3 million Timeline • Secondary (June 2023) • Follow-on (November 2023) • Follow-on (May 2024) • Follow-on (September 2024) • Total Realized Proceeds(2) $87.4 million $104.9 million $177.3 million $79.0 million $454.4 million 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 July 31, 2014: WED invests $75.7 million completing acquisition of HIIG January 13, 2015: WED announced additional Investment ($50.6 million) November 17, 2020: Changed name to Skyward Specialty Insurance Group, Inc. January 18, 2023: Skyward Specialty listed on the NASDAQ January 2015 - February 2021: Add-on acquisitions including April 22, 2020: WED completed additional investment (Rights Offering of $100 million; Westaim invests its pro-rata share of $44.0 million) May 25, 2020: Appointed Andrew Robinson as New CEO Realized and Unrealized Gain (US$)(2) 166.7% Gross IRR (US$)(2) 12.8% Realized and Unrealized Gain (C$)(2) 201.1% Gross IRR (C$)(2) 14.8% Source, Build, Unlock: Skyward Specialty 71
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Investment Overview ▪ F&G is a leading provider of FIA, MYGA, and indexed universal life products with 700,000 customers and a network of 37,000 licensed independent agents ▪ CF Corp (a $1.2bn SPAC raised by CC Capital and Bill Foley) acquired F&G at a $2.1bn enterprise value ($1.9bn of equity capital) in November 2017 ▪ As part of the transaction, F&G entered an asset management relationship with Blackstone to improve net asset yields and underwriting competitiveness ▪ F&G was successfully sold for cash and stock to Fidelity National Financial (FNF) in 2020; CC Capital remained actively engaged in advising F&G post sale ▪ From acquisition close to sale announcement (~2 years), F&G increased after tax adjusted operating income (“AOI”) by 127% and ROE by 82% ▪ From acquisition close to current, Book Value increased by 264%(1) Value Creation Levers 11% 20% At SaleAt Close $141 $320 Management Enhancements Hired a respected industry leader to reinvigorate growth 1 Reinvigorated Growth 27% Sales CAGR over 2 years prior to sale driven by distribution relationships in the IFA channel 2 Asset Management Yield Uplift Investment partnership with Blackstone improving yield and driving ROE uplift 3 Ratings Upgrade AM Best ratings upgrade from B++ to A-; unlocked the Bank / Broker Dealer (“B/D”) channel 4 Tax Efficiencies Reduced effective rate from 40% to 20% 5 Cost Savings Realized $15 million of annual cost savings 6 At SaleAt Close CurrentAt Close $1,646 $5,999 (1) Book Value excluding Accumulated Other Comprehensive Income (AOCI); Current reflects the latest quarterly filing as of December 31, 2024. Value Realization +127%+82% +264% ROE AOI Book Value 72 CC Capital Case Study: Fidelity & Guaranty Life