Western Reports Second Quarter Financial Results

Executive Summary

• The Western Investment Company of Canada Limited reported financial and operating results for the three and six months ended June 30, 2025, showing a significant increase in net income to $0.75 million in Q2 2025 compared to $0.1 million in the prior-year period.
• Fortress Insurance, which is now consolidated into Western, reported strong growth in Gross Written Premiums (GWP) to $15.4 million and increased insurance revenue by 17% year-over-year, though total insurance service result decreased by 11% due to higher claims and professional fees.
• Equity-accounted investments, including GlassMasters Autoglass, Foothills Creamery, and Golden Health Care, all delivered solid year-over-year increases in revenue and profitability, with Golden Health Care also declaring a return of capital to shareholders.

Key Details

• Consolidated Financial Highlights (Q2 2025 vs Q2 2024):
  • Net Income: $751,997 (up from $103,987).
  • Total Insurance Service Result: $357,243 (newly consolidated).
  • Investment Income: $355,780 (newly consolidated).
  • Income from Equity Investments: $778,957 (up from $442,152).
  • Other Finance Income: $480,102 (up from $187,329).
• Fortress Insurance Performance:
  • Gross Written Premiums (GWP): $15,406,523 (up from $10,559,993).
  • Insurance Revenue: $6,941,105 (up 17% year-over-year).
  • Total Insurance Service Result: $256,392 (down from $308,496).
  • Total Investment Income: $267,602 (up 20% year-over-year).
  • Net Income: $45,813 (down from $52,634).
  • Trailing 12-Month Loss Ratio: 53.2% (improved from 59.7%).
  • Normalized Trailing 12-Month Expense Ratio: 54.9%.
  • Normalized Trailing 12-Month Combined Ratio: 108.1%.
  • Total Investment Portfolio (including cash): $24.6 million.
• GlassMasters Autoglass Performance:
  • Revenue: $14.1 million (up 14% year-over-year).
  • Gross Margin: 33.1% (up from 31.9%).
  • EBITDA: $2.5 million (up from $1.9 million).
• Foothills Creamery Performance:
  • Revenue: $11.5 million (up 11% year-over-year).
  • Gross Margin: 23.5% (up from 21.3%).
  • EBITDA: $1.0 million (up from $0.6 million).
  • Ice cream sales grew 22% year-over-year.
  • Inventory levels reduced by $1.6 million compared to prior year.
• Golden Health Care Performance:
  • Revenue: $2.7 million (up 12% year-over-year).
  • EBITDA: $0.72 million (up 60% from $0.45 million).
  • Net Income: $0.4 million (up from $0.1 million).
  • Declared a return of capital to shareholders; Western's share was $0.48 million.

Notable Quotes

• "Fortress Insurance continues to expand its premium base through growth in its existing customer portfolio, while maintaining strong underwriting discipline in a softening market. We are equally encouraged by the strong performance of our equity-accounted investments, with all three companies delivering solid year-over-year increases in both revenue and profitability" — Paul Rivett, Chief Executive Officer.