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

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