Western Investment Company reports financials as it eyes P&C success

Western Investment Company reports financials as it eyes P&C success | Insurance Business Canada

Insurance News

One arm surges – but the group still takes a hit

Insurance News

By
Paul Lucas

As it eyes success in the property and casualty insurance arena, Western Investment Company of Canada has reported its financials for the first quarter of 2024.

The group behind Fortress Insurance Company noted that the first quarter is “generally slow” for its associate companies due to seasonal issues – and last year was an unusual exception primarily thanks to Western’s share of the $1.1 million one-time gain with the sale of Foothills Creamery warehouse in Kelowna. This time around, total revenue was down $588,072 compared to the prior year period, although it noted that it would have been comparable with one-time items removed.

Overall, it suffered an income loss of $271,751 from equity investments, saw $190,415 in finance income and with management fees taken into account finished the period with a revenue loss of $48,836.

“Our associates are primed and well positioned as we head into our busy spring and summer season to deliver what we believe will be a solid year for Western,” said Scott Tannas, president and chief executive officer of Western. “We deliberately built-up inventory levels through the first quarter at both GlassMasters and Foothills to ensure we have product on hand to meet customer demand. GlassMasters will also benefit from the four new locations it has added over the last year and the ICBC accreditation it received in the first quarter that will allow it to serve BC customers with insurance claims.

“We have also made significant progress on our proposed transaction with Paul Rivett to transform Western into a property and casualty insurance and investment holding company. We expect to provide an update in the coming days on the status of this transaction.”

How did Fortress Insurance Company perform in the first quarter of 2024?

Fortress meanwhile, enjoyed a strong growth trajectory across all products, and was further boosted by the addition of liability and transportation insurance to its line-up.

Overall, GWP was up 40% to $5.2 million, year over year.

For the three months ended March 31, 2024, Western noted equity income of $16,630 from Fortress – that compares to $26,879 in equity income for the quarter ended March 31, 2023.

In its outlook, it did note however that the growth in GWP at Fortress is likely to moderate as it enters the Ontario marketplace. It will, nevertheless, look to add further products to its line-up.