TORONTO, ON / ACCESS Newswire / April 28, 2025 / The Western Investment Company of Canada Limited (TSXV:WI) ("Western" or the "Corporation") today reported its financial and operating results for the three and twelve months ended December 31, 2024. The audited financial statements, management's discussion and analysis, and annual information form have been filed on SEDAR+. Unless otherwise indicated, financial figures are expressed in Canadian dollars and comparisons are to the prior period ended December 31, 2023. In the fourth-quarter of 2024, Western completed the acquisition of the remaining shares of Fortress Insurance Company ("Fortress Insurance"), as a result, starting October 1, 2024, Fortress Insurance results are consolidated into Western's financial statements. Insurance specific results are discussed under the Fortress Insurance section below.
Income from equity investments for the year ended December 31, 2024 was $733,778 down from $1,235,241 in 2023, because the prior year results included a one-time gain on the sale of real estate at Foothills Creamery. Net income for the year ended December 31, 2024 increased to $1,276,532 compared with net income of $201,967 in 2023. 2024 net income was impacted by several one-time items in relation to the Fortress Insurance acquisition, including a gain on acquisition of $2,597,162 relating to the revaluation of Western's equity investment in Fortress Insurance to fair value and professional fees of $1,270,276 in 2024 compared with $306,514 in 2023.
Western financial highlights
| | | Year Ended December 31, | | |
| |
| | | $ | 2024 | | | | 2023 | | | Change | |
| Total insurance service result 1 | | | 81,314 | | | | - | | | | 81,314 | |
| Net Investment income 1 | | | 284,137 | | | | - | | | | 284,137 | |
| Income (loss) from equity investments | | | 733,778 | | | | 1,235,241 | | | | (501,463 | ) |
| Other finance income | | | 844,168 | | | | 605,278 | | | | 238,890 | |
| Net income | | | 1,276,532 | | | | 201,967 | | | | 1,074,565 | |
1 Fortress Insurance results are consolidated into Western from fourth-quarter 2024
"We have just concluded a transformative year for Western, marked by a strategic pivot in December of 2024 toward becoming an insurance and investment management holding company. As part of this transformation, Western acquired 100% of Fortress Insurance, which has continued to demonstrate a strong growth trajectory with prudent underwriting and reserving. As we look ahead to 2025, we begin in many ways as a new company with a new focus on deepening our presence in insurance and investment management and we look forward to holding a meeting with all of our shareholders later in the year to outline our long-term strategy," said Paul Rivett, Western's Chief Executive Officer.
Fortress Insurance
In 2024, Fortress Insurance increased gross written premiums by 103% to $45.4 million. Fortress Insurance added three new programs in 2024, including additional automobile replacement value insurance products in the transportation segment, and a new property program in Ontario. Fortress Insurance's total investment portfolio, including cash and cash equivalents, grew 28% to $23.5 million compared to $18.4 million at the end of the prior year, while net investment income increased 38% over the prior year.
The trailing 12-month loss ratio as at December 31, 2024 (incurred losses, including incurred but not reported over earned premium) was 55% (2023 - 47%). The increased loss ratio was due to the impacts of various catastrophic events in 2024. Net income decreased to a $264,366 loss compared to income of $599,377 in 2023 due to a variety of factors, including the conversion of its employee share option plan from equity to a cash-settled plan and increased professional fees from the Western and Fortress Insurance transactions.
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| | Year Ended December 31, | | |
| |
| | | $ | 2024 | | | | 2023 | | | Change | |
| Insurance revenue | | | 23,915,818 | | | | 20,535,772 | | | | 3,380,046 | |
| Total insurance service result | | | 1,720,501 | | | | 1,212,687 | | | | 507,814 | |
| Net Investment income (loss) | | | 1,095,754 | | | | 793,150 | | | | 302,604 | |
| Net income (loss) | | | (264,336 | ) | | | 599,377 | | | | (863,713 | ) |
| Gross written premiums1 | | | 45,338,603 | | | | 22,406,496 | | | | 22,932,107 | |
1 Supplementary financial measure - total gross insurance premiums written during the year.
Note: The above table reflects stand-alone Fortress results, excluding consolidation adjustments for the Corporation
GlassMasters Autoglass revenue grew 20.4% to $42.5 million in 2024. Revenue growth has averaged 20% each year over the past four years. This has been obtained by a combination of organic growth occurring at current retail and warehouse locations as well as from the addition of new locations. EBITDA increased to $5.5 million in 2024 compared to $4.5 million in 2023. GlassMasters has plans for further expansion in 2025.
Foothills Creamery saw an improvement in gross margins from 21% in 2023 to 22% in 2024. Overall sales during 2024 were down slightly from the prior year, but Foothills intentionally decreased sales of lower margin butter, to focus on higher margin ice cream sales. 2024 EBITDA was marginally up when adjusting for a one-time gain on sale of real estate in 2023. Foothills will continue to prioritize profitability through a focus on selling more high margin frozen products and continued process efficiencies.
Golden Health Care annual revenue grew 14% to $10.2 million compared with $9.0 million in 2023, due to improved occupancy at senior care homes. Our senior care homes ended the year at or near full occupancy. Inflationary pressure has eased on the expense side, allowing Golden Health Care to make gains in EBITDA. Management is working to access government funding for senior care, which would allow more seniors in need to access their beds.
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 shares are traded on the Exchange under the symbol WI.
For more information on Western, please visit its website at www.winv.ca.
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CONTACT INFORMATION - The Western Investment Company of Canada Limited
Stacey Cross, Chief Financial Officer, scross@winv.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 containing 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 believes that the expectations and assumptions on which the forward-looking statements made by Western are based are reasonable, undue reliance should not be placed on the forward-looking statements because no assurance can be provided 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 United 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 disclosure documents on the SEDAR+ website at www.sedarplus.com.
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 events 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 news 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."
SOURCE: The Western Investment Company of Canada Limited
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