Canada's Westaim Q2 net loss widens on new annuity accounting
Canada's Westaim Q2 net loss widens on new annuity accounting
Overview
Canada insurance and asset management firm's Q2 net loss widened sharply yr/yr
Loss driven by upfront IFRS accounting for new annuity policy issuances at Ceres Life
Company announced leadership changes at Ceres Life, with new acting CEO appointed
Outlook
Company expects near-term accounting results to remain pressured as insurance business scales
Westaim anticipates growth in fee-paying AUM and third-party capital through 2026 and into 2027
Company expects cost reduction benefits to become more visible in H2 2026
Result Drivers
UPFRONT RESERVES - Co said net loss was driven by IFRS accounting that requires upfront recognition of reserves for new annuity policy issuances at Ceres Life
EARLY-STAGE BUSINESS - Co said negative insurance service results reflect the early-stage nature of Ceres Life as it scales issuance of new annuity policies
COST REDUCTION INITIATIVES - Co said it implemented over $16 mln in annualized run-rate savings and expects benefits to become more evident in future results
Company press release: ID:nBwyFDfMa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Loss |
| $81.50 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for Westaim Corp is C$32.00, about 46.1% above its August 12 closing price of C$21.90
Reuters Recommended Reads
Aug 11 - Mount Logan Q2 loss widens on insurance investment losses
Aug 13 - Canada's Onex Q2 net earnings fall after Convex deal
Aug 12 - Canada's Sagicor Q2 swings to profit on improved equity markets
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Aventus Capital
See all newsCanada's Westaim Q2 net loss widens on new annuity accounting
Brief: The Westaim Corporation Announces Leadership Transition At Arena Investors Group Holdings
Canada's Westaim Q1 net loss widens
Canada's Westaim net loss narrows in Q4 as asset management unit turns positive
Brief: The Westaim Corporation Announces Normal Course Issuer Bid