Earnings release
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1 Supplementary Non-IFRS financial measures. Refer to the Q2-2026 Management’s Discussion and Analysis for descriptions and further details. Western Investment Company Reports Second Quarter 2026 Results Toronto, ON / August 25, 2026 / Highlights • Gross written premiums1 increased by 4% • Combined ratio was 80.4%, mainly due to a strong loss ratio • Net income of $509,000 drove earnings per share of $0.003 • Balance sheet streng th maintained with cash and investments growing by 2% and shareholders equity by 1%, to end on $87.3 million and $78.6 million respectively • Gain on sale of GlassMasters Autoglass increased by $1.0 million as working capital on the transaction was finalized The Western Investment Company of Canada Limited (TSXV: WI) today reported its financial and operating results for the three months ended June 30 , 202 6. The interim consolidated 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, 2025. The second quarter ended June 30, 2026 was highlighted by strong insurance service results from Western’s insurance subsidiary and an additional gain recognized on the sale of Western’s investment in GlassMasters. Western’s Insurance revenue increased to $10.3 million for the quarter, compared to $8.5 million in the prior-year period. The increase was primarily driven by higher revenue recognition from longer -term insurance products with multi-year coverage periods. The insurance business contributed $0.3 million to net income for the quarter ended June 30, 2026, compared to $0.1 million in the second quarter of 2025. Fortress’ combined ratio1 for the quarter ending June 30, 2026 was 70.6% versus 107.8% in the same period in 2025. This significantly lower combined ratio was mainly due to a lower loss ratio of 7.4% (versus 43.6% in the same period in 2025) caused by very low claims activity in the quarter and growth in insurance revenue. Similarly, on a year to date basis, for the six months ending June 30, 2026 the combined ratio was 80.4% versus 108.5% in the same period in 2025. During the quarter, Western recognized an additional $1.0 million of proceeds from the sale of GlassMasters as a result of post-closing working capital adjustments. Following these adjustments, total net proceeds from the sale increased to $24.3 million, resulting in a total gain on the sale of $15.4 million.
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1 This release contains Non-IFRS financial measures, Non-IFRS ratios and other financial measures. Refer to the IFRS and Non-IFRS financial measures section in the Q2-2026 Management’s Discussion and Analysis for further details. Income from equity -accounted investments was $0.3 million for the quarter ended June 30, 2026, compared to $0.8 million in the same period in 2025. The decrease was primarily attributable to the absence of equity income from GlassMasters following the sale of Western’s investment therein. Net income for the quarter ended June 30, 2026 was $0.5 million, or $0.003 per share, compared to $0.75 million, or $0.005 per share, in the second quarter of 2025. Management remains focused on identifying and investing in high-quality, entrepreneurial insurance businesses aligned with Western’s long-term strategy. The Corporation is actively progressing a robust pipeline of potential acquisition and partnership opportunities. Western Consolidated Financial Highlights Fortress Insurance On a stand-alone basis, Fortress increased gross written premiums by 4% to $16.0 million in the second quarter of 2026. The trailing 12 -month loss ratio (incurred losses, including incurred but not reported claims, as a percentage of earned premium) improved to 21.5% at June 30, 2026, compared to 34.8% for the year ended December 31, 2025. The improvement was primarily driv en by a higher insurance revenue base as additional premium was earned during the period, together with favourable prior-year claims development and a lower level of large losses in the current year. The trailing 12-month expense ratio improved modestly to 66.4% at June 30, 2026, compared to 66.7% for the year ended December 31, 2025, reflecting continued cost discipline and operating leverage generated by growth in insurance revenue. During the second quarter of 2026, Western invested an additional $2.5 million of capital in Fortress to support its ongoing growth plans. $ ‘000 2026 2025 Change 2026 2025 Change Insurance revenue 10,247 8,518 1,729 19,555 16,730 2,825 Total insurance service result 1,003 357 646 1,372 677 695 Net investment income (loss) (123) 356 (479) 170 486 (316) Income (loss) from equity investments 260 779 (519) (1,000) 476 (1,476) Gain on sale of investment in associate 992 - 992 15,346 - 15,346 Other finance income and fronting fees 534 572 (38) 1,026 993 34 Net income (loss) 509 752 (243) 12,979 (247) 13,226 Net income (loss) per common share - Basic ($) 0.003 0.005 (0.002) 0.081 (0.002) 0.082 For the three months ended June For the six months ended June 30,
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1 Supplementary Non-IFRS financial measures. Refer to the Q2-2026 Management’s Discussion and Analysis for descriptions and further details. 1 This release contains Non-IFRS financial measures, Non-IFRS ratios and other financial measures. Refer to the IFRS and Non-IFRS financial measures section in the Q2-2026 Management’s Discussion and Analysis for further details. Fortress’s total investment portfolio, including cash and cash equivalents, increased to $38.8 million at June 30, 2026, compared to $33.7 million at December 31, 2025. The increase was primarily attributable to Western’s additional capital investment and higher collateral balances associated with new fronting arrangements. Fortress recorded a net investment loss of $0.1 million for the quarter ended June 30, 2026, compared to net investment income of $0.1 million in the same period in 2025. Net income for the second quarter of 2026 was $0.3 million, compared to $0.1 million in the comparative quarter of 2025. Fortress Stand-alone Financial Highlights Equity Investments Foothills Creamery reported revenue of $11.1 million for the second quarter of 2026, compared to $11.5 million in the same period in 2025. Despite the decrease in revenue, gross profit increased to $3.1 million from $2.7 million, while Earnings Before Inte rest, Tax, Depreciation and Amortization (“ EBITDA1”) increased to $1.2 million from $1.0 million in the comparative quarter. The improvement in profitability was primarily driven by a strategic shift in sales mix toward higher -margin ice cream products, together with lower input costs. Golden Health Care reported an 8% increase in revenue to $2.9 million for the second quarter of 2026, compared to $2.7 million in the same period in 2025, reflecting continued strong occupancy levels across its senior care homes. Operating expenses remained relatively stable, resulting in EBITDA of $0.65 million for the quarter, compared to $0.72 million in the comparative period in 2025. $ ‘000 2026 2025 Change 2026 2025 Change Gross written premiums1 15,986 15,406 580 26,979 28,735 (1,756) Total insurance service result 983 256 726 1,331 448 883 Net investment income (loss) (123) 356 (479) 218 486 (267) Net income 299 134 165 553 12 541 For the three months ended June For the six months ended June 30,
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1 This release contains Non-IFRS financial measures, Non-IFRS ratios and other financial measures. Refer to the IFRS and Non-IFRS financial measures section in the Q2-2026 Management’s Discussion and Analysis for further details. 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 common shares are traded on the TSX Venture Exchange under the symbol WI. For more information on Western, please visit www.westerninvest.ca. To subscribe to email alerts, please visit this link. Contact Information Pablo Dancuart Chief Financial Officer 604 349 5115 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 con taining 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 b elieves that the se expectations and assumptions are reasonable based on currently available information, undue reliance should not be placed on the forward- looking statements, as there can be no assurance 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 Uni ted 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 public disclosure documents filed on SEDAR+ at www.sedarplus.com.
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1 This release contains Non-IFRS financial measures, Non-IFRS ratios and other financial measures. Refer to the IFRS and Non-IFRS financial measures section in the Q2-2026 Management’s Discussion and Analysis for further details. 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 eve nts 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 new s 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.”