The Westaim Corporation (WED) investor relations material

Executive summary

• Q1 2026 net loss was $33.4 million ($1.00 diluted loss per share), compared to a $7.4 million loss ($0.34 per share) in Q1 2025, reflecting ongoing investments in platform build-out and restructuring costs.

• The company completed its transformation into an integrated insurance and asset management operating entity after the Strategic Transaction with CC Capital in April 2025, consolidating Arena, Salem Group, and Arena FINCOs.

• Shareholders' equity increased to $618.7 million at Q1 2026 from $490.0 million at Q1 2025.

• Insurance segment (Ceres Life) launched fixed indexed annuities in February 2026, with over $300 million in premiums issued and pending through April 30, 2026.

• Asset Management segment managed $4.3 billion in AUM and programmatic capital as of March 31, 2026, with $2.5 billion in fee-paying AUM.

Financial highlights

• Q1 2026 total revenue was $14.1 million, up from $3.8 million in Q1 2025, driven by management and servicing fees, interest income, and advisory fees.

• Adjusted EBITDA loss for Q1 2026 was $28.8 million, with segment losses of $7.3 million (Asset Management), $20.1 million (Insurance), and $1.4 million (Corporate and Other).

• Book value per fully diluted share was $18.60 at March 31, 2026, down from $19.60 at December 31, 2025.

• Cash and cash equivalents were $240.6 million at March 31, 2026, with investments at fair value of $455.7 million.

• Adjusted EBITDA excludes $3.1 million in severance expenses and included $1.3 million in platform build-out costs.

Outlook and guidance

• Insurance segment expects operating leverage and improved efficiency as the business scales, with operating expenses as a percentage of policies written projected to decline.

• Asset Management segment anticipates significant growth in fee-paying AUM and improved profitability as cost reduction initiatives take effect in the second half of 2026.

• Company invested $25 million in a partnership acquiring an interest in Insignia Financial Ltd., strengthening client relationships and expanding strategic investments.

• Expect accounting impact of upfront losses on new insurance business to moderate as the in-force book grows.