Fortress Insurance Company sees dive in net income

Fortress Insurance Company sees dive in net income | Insurance Business Canada

Insurance News

Fortress Insurance Company sees dive in net income

Plans for ownership changes also announced

Insurance News

By
Terry Gangcuangco

Fortress Insurance Company was profitable in the three and six months that ended June 30 of this year but not nearly as much compared to corresponding figures in 2023.

Metric

Q2 2024

Q2 2023

H1 2024

H1 2023

Insurance revenue

$5,852,846

$5,036,753

$11,571,504

$9,682,871

Insurance service result

$888,982

$639,083

$1,081,466

$1,099,380

Investment income (loss)

$222,233

$46,750

$487,511

$355,195

Net income (loss)

$52,634

$224,752

$111,088

$499,153

Gross written premium

$10,559,993

$7,262,622

$15,777,765

$10,981,840

Without elaborating on the decrease, the group said: “Western recognized equity income of $31,604 from Fortress compared to $90,552 in equity income for the comparative period ended June 30, 2023.”

Plan for full ownership of Fortress

In a separate announcement, Western outlined its plans to become the sole owner of the insurance business. Currently, Western owns 28.5% of Fortress.

Announcing a revised transaction designed to be more straightforward, Western president and chief executive Scott Tannas said: “We have essentially become victims of our own success. Securing agreements for the purchase of 100% of Fortress Insurance, instead of the 51% outlined as a condition of the original transaction, would have required a complex and costly process in order to close the Fortress Insurance acquisition.

“In addition to being costly, this would have significantly delayed and altered the original transaction. Given the strategic importance to Western of acquiring 100% of Fortress Insurance in the near term, we searched for a simpler and more efficient financing path. This revised transaction provides Western with a much clearer and quicker path to achieving its insurance and investments growth strategy and maintains a simple capital structure.”

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