Western Reports Third Quarter Financial Results

TORONTO, ON / ACCESS Newswire / November 25, 2025 / The Western Investment Company of Canada Limited (TSXV:WI) (“Western” or the “Company“) today reported its financial and operating results for the three and nine months ended September 30, 2025. The interim financial statements and management’s discussion and analysis have been filed on SEDAR+. Unless otherwise indicated, financial figures are expressed in Canadian dollars and comparisons are to the prior period ended September 30, 2024.

In the third quarter of 2025, Fortress Insurance (“Fortress”) sustained growth in Gross Written Premiums (“GWP”) ¹ and Western’s equity-accounted investments continued to generate meaningful top-line expansion.

Net income in the third quarter of 2025 increased to $0.6 million compared with net income of $0.5 million in the prior-year comparative period. Western’s expenses now include consolidated expenses from Fortress Insurance and a comparison to previous periods is not currently meaningful.

“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, ” said Paul Rivett, Western’s Chief Executive Officer.

Western financial highlights

¹ GWP is a Non-GAAP measure defined as all premiums written during the year, including both earned and unearned auto insurance premiums, and fronting fees earned

² Fortress Insurance results are consolidated into Western from fourth-quarter 2024

Fortress Insurance

In the third quarter, Fortress grew GWP to $16.8 million from $15.1 million in the third quarter of 2024. Total investment portfolio, including cash and cash equivalents, ended the quarter at $29.7 million compared to $23.5 million as of December 31, 2024. Insurance revenue increased 26% year-over-year but total insurance service result decreased by 38% due to increased claims and the long-term policies written under Fortress’ specialty programs, which have a end-tailed profitability. Profitability on these longer-term programs will increase gradually over their term. Net investment income decreased by over 30% year-over-year, primarily due to lower investment returns on certain asset classes and a portion of invested assets being liquidated during the quarter before the capital moved to a new investment manager.

The trailing 12-month loss ratio at September 30, 2025 (incurred losses, including incurred but not reported, over earned premium) was 53.3%, compared to 54.8% in the prior-year period.

The trailing 12-month expense ratio and resulting combined ratio was high due to the expenses related to the setup of the new automotive replacement value insurance product and to one-time events, such as the conversion of Fortress’s Employee Share Ownership Plan (ESOP) to a cash-settled plan, as well as increased professional fees related to the Western/Fortress transaction. Excluding the costs of the transaction, the normalized trailing 12-month expense and combined ratios are 47.7% and 97.4%, respectively.

¹ GWP is a Non-GAAP measure defined as all premiums written during the year, including both earned and unearned auto insurance premiums, and fronting fees earned

Note: The above table reflects stand-alone Fortress results, excluding consolidation adjustments for the Company

GlassMasters Autoglass revenue grew 8% year-over-year to $13.8 million in the third quarter of 2025. Gross margin increased to 35.5% compared to 32.8% in the prior-year period. EBITDA for the third quarter decreased to $2.1 million compared to $2.6 million in 2024. This performance was driven by same store sales growth.

Foothills Creamery second quarter revenue was up 2% to $11.9 million compared to $11.7 million in the third quarter of 2024. Gross margins declined to 26.1% compared to 28.3% in the prior-year period. EBITDA was $1.4 million in the third quarter of 2025 compared to $1.8 million in the prior-year period. Revenue growth in the quarter was primarily driven by increased ice cream sales.

Golden Health Care revenue grew 9% to $2.8 million compared with $2.5 million in the third quarter of 2024, supported by improved occupancy at underutilized homes. EBITDA increased over 40% to $0.6 million compared with $0.4 million in the prior-year period. Net income for the quarter was $0.3 million compared with $0.1 million in the comparable quarter of last year.

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 Toronto Venture Exchange under the symbol WI.

For more information on Western, please visit its website at www.westerninvest.ca.

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CONTACT INFORMATION – The Western Investment Company of Canada Limited

Pablo Dancuart, Chief Financial Officer, pdancuart@westerninvest.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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