Western Reports Third Quarter Financial Results

Executive Summary

• Western Investment Company of Canada reported Q3 2025 net income of C$0.6 M, up from C$0.5 M a year earlier, reflecting modest earnings growth despite higher expenses from the consolidation of Fortress Insurance.
• Fortress Insurance’s Gross Written Premiums (GWP) increased 10% YoY to C$16.8 M, while insurance revenue rose 26% YoY; however, the total insurance service result fell 38% due to higher claims and long‑term specialty program costs.
• Subsidiary operating segments showed mixed performance: GlassMasters Autoglass revenue +8% YoY, Foothills Creamery revenue +2% YoY, and Golden Health Care revenue +9% YoY, with varying impacts on margins and EBITDA.

Key Details

• Western Consolidated Financial Highlights (Three months ended Sep 30, 2025 vs. 2024):
• Total insurance service result: C$277 K (no prior‑period comparable).
• Net investment income: C$297 K.
• Income (loss) from equity investments: C$893 K vs. C$1,008 K (-C$115 K).
• Finance income: C$466 K vs. C$211 K (+C$255 K).

• Net income: C$602 K vs. C$521 K (+C$81 K).

• Fortress Insurance – Q3 2025 Results:

• Gross Written Premiums (GWP): C$16,770 K vs. C$15,146 K (+C$1,624 K; +10%).
• Insurance revenue: C$7,840 K vs. C$6,207 K (+C$1,633 K; +26%).
• Total insurance service result: C$382 K vs. C$616 K (‑C$234 K; –38%).
• Net investment income (loss): C$340 K vs. C$487 K (‑C$147 K).
• Net income (loss) for Fortress standalone: C$230 K vs. a loss of C$6 K prior year (+C$236 K).
• Trailing‑12‑month loss ratio: 53.3% (down from 54.8%).

• Normalized trailing‑12‑month expense ratio: 47.7%; combined ratio: 97.4% (excluding one‑time transaction costs).

• Segment Performance – Q3 2025:

• GlassMasters Autoglass: Revenue C$13.8 M (+8% YoY); gross margin 35.5% vs. 32.8%; EBITDA C$2.1 M (down from C$2.6 M).
• Foothills Creamery: Revenue C$11.9 M (+2% YoY); gross margin 26.1% vs. 28.3%; EBITDA C$1.4 M (down from C$1.8 M).

• Golden Health Care: Revenue C$2.8 M (+9% YoY); EBITDA C$0.6 M (up >40%); net income C$0.3 M vs. C$0.1 M prior year.

• Management Commentary: CEO Paul Rivett highlighted “capital‑efficient growth” at Fortress, the contribution of equity‑accounted investments, and ongoing execution of growth initiatives across portfolio companies.

Notable Quotes

“Fortress delivered another quarter of capital‑efficient growth through prudent underwriting and continuing expansion of its specialty programs. We are also encouraged with the strong performance of our equity‑accounted investments as they execute on a wide range of growth initiatives,” – Paul Rivett, CEO.