Canada's Westaim Q1 net loss widens

Westaim

14/05/2026 22:02

Overview

Canada insurance and asset manager reported Q1 net loss widened to $33.4 mln

Insurance segment posted adjusted EBITDA of $20.1 mln loss as new annuity policies drove upfront losses

Company repurchased 70,469 shares under normal course issuer bid at cost of C$1.7 mln

Outlook

Company expects significant growth in fee-paying AUM over the next 12-18 months

Westaim expects operating expenses as a percentage of policies written to decline over time

Company anticipates cost reduction benefits in asset management segment to become evident in H2 2026

Result Drivers

NEW ANNUITY POLICY ISSUANCES - Upfront accounting losses driven by reserves for new multi-year guaranteed and fixed indexed annuity policies, reflecting early-stage growth of insurance business

OPERATING EXPENSES - Insurance segment results included platform build-out costs and higher operating expenses as business scales

NEGATIVE PERFORMANCE FEES - Asset management segment's fee revenues was offset by negative incentive and performance fees due to marks on unrealized positions

Company press release: ID:nBw7VhxNKa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$33.40 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$34.00, about 47.5% above its May 13 closing price of C$23.05

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.)