Westaim Reports Q1 2026 Results for the Quarter Ended March 31, 2026

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NEW YORK — The Westaim Corporation (“Westaim” or the “Company”) (TSXV: WED) today announces its unaudited financial results for the quarter ended March 31, 2026. Westaim recorded a net loss of $33.4 million ($1.00 diluted loss per share) for Q1 2026 compared to a net loss of $7.4 million ($0.34 diluted loss per share) for Q1 2025¹.

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“We made meaningful progress on our strategic priorities during the quarter, highlighted by the February 17^th launch of our fixed indexed annuity product, which marks an important milestone in expanding our platform and enhancing our market position. Early results since inception across all products have been encouraging and ahead of expectations, with over $300 million of premiums, issued and pending, through April 30, 2026. We continue to see strong engagement from our distribution partners, particularly in response to the streamlined onboarding experience for policyholders on our platform. Ceres’ invested assets increased to $370 million, supported by the accelerating pace of our annuity policy issuances. Consistent with our expectations, the assets supporting our reserves continue to generate yields meaningfully above crediting rates. While accounting results for new and rapidly growing annuity insurance companies can at times be difficult to interpret, we are quite encouraged by the momentum building across the business,” said Cameron MacDonald, Chief Executive Officer of Westaim.

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Further, Mr. MacDonald added, “Guided by Andrew Rabinowitz’ leadership within our asset management segment, we have made significant progress on new business initiatives and partnerships that we anticipate will generate significant growth in fee paying assets under management in third‑party capital over the next 12 to 18 months.”

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Chinh Chu, Executive Chairman of the Board for Westaim, added, “We are encouraged by the strong execution by our management team and the positive momentum across both our insurance and asset management businesses. We are particularly pleased with the launch of our fixed indexed annuity product and the pace of sales in its first few months on the market.”

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Insurance

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The Insurance segment, which primarily operates through Ceres Life Insurance Company (“Ceres” or “Ceres Life”), reported an Adjusted EBITDA² loss of $20.1 million for the three months ended March 31, 2026. This included a net insurance service loss of $11.1 million and operating expenses of $14.1 million, partially offset by net investment income of $5.1 million.

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Our financial results reflect the early-stage nature of our insurance business. Net insurance service results remain negative as we scale issuance of new multi-year guaranteed annuity and fixed indexed annuity policies. Under applicable accounting treatment, both products require Ceres to recognize a reserve for future policyholder obligations at the time policies are issued, which results in upfront accounting losses on new business.

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Over time, as premiums are invested and the portfolio continues to earn returns in excess of crediting rates, we expect these contracts to contribute positively to operating results. By design, Adjusted EBITDA reflects the impact of these reserves within “insurance service results” and, as such, will continue to face near-term pressure while new business growth remains significant relative to the size of the in‑force book. As the business matures and earnings from in-force contracts increasingly offset losses associated with new policy issuances, we expect that accounting impact to moderate.

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Current-quarter operating expenses include approximately $1.3 million of platform build-out costs. As we continue to scale and improve operating efficiency, we expect operating expenses as a percentage of policies written to decline meaningfully over time.

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Asset Management

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The Asset Management segment, which primarily operates through Arena Investors Group Holdings, LLC and its subsidiaries and affiliates (“Arena”), had an Adjusted EBITDA loss of $7.3 million for the three months ended March 31, 2026. Adjusted EBITDA for the quarter included $7.7 million of management, servicing and other fee revenues less negative incentive and performance fees due to marks on unrealized positions.

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As of March 31, 2026, our AUM³ and Programmatic Capital⁴ totaled $4.3 billion, with fee‑paying AUM of $2.5 billion, including $0.4 billion managed on behalf of our Insurance segment. We have continued to take meaningful actions to reduce our cost base, and we expect the benefits of these initiatives to become increasingly evident in the second half of 2026. As we grow fee‑paying AUM on a more efficient platform, we believe the business is well positioned to move toward consistent profitability.

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Corporate and Other Investments Activity

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While Corporate is not considered a separate operating segment of the Company, the Corporate column in our segment reporting comprises activities that reside outside of our two operating business segments. These include investments within the FINCOs, other cash and investments held outside of our operating segments, compensation (including share-based compensation) for employees and directors who are not allocated to our operating segments, and other corporate overhead expenses.

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We continue to make progress monetizing assets within the FINCOs, which had an investment balance of $122.5 million as of quarter end. During the first quarter of 2026, we exited two positions, achieving an IRR⁵ of 23% and a MOIC of 1.37x, and returned $8.2 million in net proceeds.

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The Company also launched its 2026 Normal Course Issuer Bid (“NCIB”), repurchasing 70,469 common shares at a cost of C$1.7 million. As of March 31, 2026, the Company held 290,273 shares in treasury.

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The Company will host its Annual and Special Shareholders Meeting (the “ASM”) on May 19^th, 2026. The Company’s Investor Day will be held on September 17, 2026, where management will present a detailed update on the Company’s strategy, recent performance, and outlook.

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Segment Results

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As a result of the Strategic Transaction¹ 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 reported in the Corporate column of our segment reporting.