Company Website: https://westaim.com/
NEW YORK -- (Business Wire)

The Westaim Corporation (“Westaim” or the “Company”) (TSXV: WED) today announces its unaudited interim financial results for the quarter ended September 30, 2025. Westaim recorded a net loss attributable to controlling interests of $11.7 million ($0.35 diluted loss per share) for Q3 2025 compared to a net loss of $1.2 million ($0.05 diluted earnings per share) for Q3 2024.

“Westaim continued to develop its integrated asset management and insurance platform during the third quarter, most notably with the Ceres launch of multi-year guaranteed annuities (“MYGA”) through our distribution partnerships in mid-September. Importantly, Ceres’ technology and service platform is performing very well, receiving positive reviews from active agents for its efficiency and quick responsiveness to policy purchases, transfer activities, commission payments, and ongoing reporting. Ceres has continued to onboard significant active agents after September 30, 2025, and their distribution of MYGA policies has continued to ramp up substantially in Q4 2025. Arena Investors has begun the investment management of Ceres’ investment portfolio, positioning the portfolio to be asset/liability matched and generating a gross spread of more than +200 basis points. Lastly, we are pleased that Ceres has received regulatory approval to launch its fixed income annuities (“FIA”), which we expect to commence in early 2026, and consistent with industry volumes, we believe it will become the predominant product within Ceres’ portfolio. A significant amount of this quarter’s operating loss came from our insurance segment, which we have previously disclosed will generate net operating losses in the near term as the business scales. Throughout Q3, Arena continued to re-focus their business activities on scalable opportunities for its insurance-focused clients, including a targeted restructuring with the planned closing of its Singapore office and the wind-down of Quaestor Consulting Group (“QCG”) and Quaestor Strategic Advisors (“QSA”) businesses, which are viewed as non-core to our prospective strategy. Arena made considerable progress on realizations in its existing portfolios, generating attractive realized returns for our investors, producing incentive fees and performance allocations during the quarter. We expect the fourth quarter to bring added focus, development and scale of the platform as we continue to execute on our business plan,” said Cameron MacDonald, President and Chief Executive Officer of Westaim.

Chinh Chu, Executive Chairman of the Board for Westaim, added, “We are excited to see the progress of our business plan for both Ceres and Arena, but we are just commencing our journey and are hard at work to execute on the significant opportunities ahead of us.”

The third quarter net loss attributable to controlling interests includes severance expenses of $0.7 million, which are expected to produce estimated annualized run-rate savings of approximately $4.1 million for the company, the largest component of which relates to the planned closing of our Singapore office. This brings our cumulative run-rate savings on restructuring initiatives to $8.1 million for actions taken since the closing of the strategic transaction through September 30, 2025. Additionally, we have identified an additional $0.9 million of annualized run-rate savings related to our November 2025 decision to wind-down the QCG and QSA businesses, which will bring total run-rate savings to $9.0 million. We will continue to evaluate our business activities for additional operational efficiencies and run-rate savings for the Company over the coming quarters as we continue to reposition the Asset Management segment to focus more on scalable opportunities for the Insurance segment, its existing client base, and future third-party clients.

At September 30, 2025, Westaim’s consolidated shareholders’ equity attributable to controlling interests was $671.3 million and the Company had 33,382,104 common shares (“Common Shares”) outstanding. Book value per fully diluted share¹ was $20.11 (C$27.99) at September 30, 2025, compared to $22.88 (C$32.90) at December 31, 2024. The net impact of the Strategic Transaction² was a reduction of $1.48 (C$2.06)³ to book value per fully diluted share.

Segment Results

As a result of the Strategic Transaction and in accordance with IFRS, the Company now manages its operations and reports its financial results in two operating business segments: Asset Management and Insurance. Other activity for the Company outside of these two operating segments is reporting in the Corporate column of our segment reporting.

Insurance

The Insurance segment, which primarily operates through Ceres Life Insurance Company (“Ceres”), had Adjusted EBITDA loss of $9.4 million for the three months ended September 30, 2025, inclusive of $1.9 million of platform build-out related expenses. The Insurance segment is not expected to generate material earnings outside of investment returns on its current cash and portfolio of investments until the annuity business increases in scale. We now have product regulatory approvals in 45 states plus the District of Columbia, and the business launched the distribution of its multi-year guaranteed annuities through its distribution partners in September 2025. We have continued to onboard additional agents since September 30, 2025, and our distribution of MYGA policies has continued to ramp up substantially during Q4 2025. Ceres also received regulatory approvals to launch its fixed index annuities offering, which we expect to launch in early 2026. As Ceres gains recognition in the distribution channel and rolls out more products over the course of the coming year, we expect premiums received and revenues to accelerate. The business believes that the technology and processes underpinning their operations will be able to scale efficiently relative to its peer group, and this operating leverage capability should become more evident as the business scales.

Asset Management

The Asset Management segment, which primarily operates through Arena Investors Group Holdings, LLC and its subsidiaries and affiliates (“Arena”), had Adjusted EBITDA loss of $2.3 million for the three months ended September 30, 2025. Adjusted EBITDA included $12.9 million of performance allocations and management, servicing, incentives, and other fee revenues, and a $1.5 million gain from Net results of investments. AUM and Programmatic Capital1 was $4.5 billion at September 30, 2025, compared to $3.4 billion at December 31, 2024. Fee-paying AUM was $2.7 billion at September 30, 2025 (including $0.3 billion from the Insurance segment), compared to $2.4 billion at December 31, 2024.

Corporate and Other Investments Activity

While Corporate is not considered a separate operating segment of the Company, the Corporate column of our segment reporting comprises activities of the Company that reside outside of our two operating business segments and includes the investments within the Arena FINCOs, other cash and investments that are held outside of our operating segments, compensation (including share-based compensation) for employees and directors of the company that are not included in our operating segments, and other corporate overhead expenses. For the three months ended September 30, 2025, the activities outside of our two operating segments produced Adjusted EBITDA loss of $0.6 million, driven by salaries and benefits of $1.7 million, professional fees of $1.7 million, and a loss on Net results of investments of $0.3 million, offset by share-based compensation recovery of $1.8 million and interest income of $1.4 million.

This press release should be read in conjunction with Westaim’s unaudited interim consolidated financial statements (the “Financial Statements”) and management’s discussion and analysis for the three and nine months ended September 30, 2025 and 2024 (the “MD&A”) which were filed on SEDAR+ at www.sedarplus.ca. These documents and the Company’s Q3 2025 Investor Presentation can be found on the Company’s website at www.westaim.com.

Non-GAAP Financial Measures

Westaim reports its Financial Statements using GAAP and accounting policies consistent with IFRS. Westaim uses both IFRS and non-GAAP measures to assess performance. The Company cautions readers about non-GAAP measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. Readers are urged to review Section 15 Non-GAAP Measures in the MD&A (available on SEDAR+ at www.sedarplus.ca) which is incorporated by reference into this news release and discloses historical figures for book value per share in respect to the three and nine months ended September 30, 2025 as well as additional disclosures regarding this measure. Additionally, Adjusted EBITDA is a new non-GAAP measure that was introduced as a result of the company’s previously announced strategic transaction with CC Capital that closed on April 3, 2023, as described more fully in Section 15 of the MD&A.

About Westaim

Westaim is an integrated insurance and alternative asset management company with two primary operating businesses: Ceres Life and Arena.

Ceres Life is a cloud-native, highly scalable, de novo annuity insurance company. Inspired by the belief that technology can reinvent the way insurance providers meet the needs of investors, Ceres Life is building a nimble, highly efficient, and risk-conscious insurance company that provides simple-to-understand and easily accessible annuity products to create better outcomes for policyholders. Ceres Life is led by Deanna Mulligan, former CEO and Chair of Guardian Life Insurance. For more information, see www.ceresinsurance.com.

Founded in 2015, Arena is a global institutional asset manager with deep expertise in credit and asset-oriented investments, including the full spectrum of corporate, real estate and structured finance opportunities. With a team of over 180 employees in offices around the world, Arena provides creative solutions for those seeking competitive capital and flexibility to engage in custom transactions. For more information, see www.arenaco.com.

Westaim’s common shares are listed on the TSXV under the trading symbol “WED”.

Cautionary Note and Forward-Looking Statements

This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"), including with respect to l. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.

Forward-looking statements are based on the opinions and estimates of management of Westaim at the date the statements are made based on information then available to Westaim. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements including past practice of the Company. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Westaim, which may cause Westaim’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.

No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the heading “Risk Factors” in its annual information form for its fiscal year ended December 31, 2024.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251113507751/en/

Contacts:

For more information, visit our website at www.westaim.com or contact:

J. Cameron MacDonald, President and Chief Executive Officer or
Matthew Skurbe, Chief Financial Officer and Chief Risk Officer
The Westaim Corporation
info@westaim.com
(416) 969-3333

Source: The Westaim Corporation