\n\u00a0Note: All dollar amounts in this press release are expressed in U.S. dollars, except as otherwise noted.\n<\/p>\n
\nThe financial results are reported under International Financial Reporting Standards, except as otherwise noted.\n<\/p>\n
TORONTO–(BUSINESS WIRE<\/a>)– Key Results for the three months ended September 30, 2020 (with comparisons to the same period in 2019) include:<\/b><\/p>\n \u201cOur Q3 results underscore the \u201cthird inning\u201d directional objectives shared with stakeholders in Westaim\u2019s September 22nd<\/sup>, 2020 Investor Day. Within HIIG, Andrew Robinson\u2019s laser focus on execution and achieving first quartile performance is starting to be reflected in our underwriting results.\u201d said J. Cameron MacDonald, President and Chief Executive Officer of Westaim. \u201cIndustry conditions remain quite favourable for profitable growth with US composite insurance pricing up in excess of 10%, and as highlighted during the Investor Day, any business lines that do not achieve an acceptable return on invested capital will be corrected or culled. Importantly, Andrew continues to attract high quality professionals and pursue opportunities that collectively will contribute to our growth and results. We are excited about the trajectory of HIIG as we move into 2021.\u201d<\/i><\/p>\n \u201cArena Investors achieved several key milestones in the third quarter. Firstly, we completed a $45 million non-recourse note issue at AFII, one of the Arena FINCOs, which is expected to accelerate our ability to enhance returns on our proprietary capital on a prudent basis. Secondly, Arena Investors continues to excel in delivering solid performance throughout a volatile period allowing the firm to be a recipient of four industry performance awards in 2020, including the Bloomberg Hedgeweek Multi-strategy Fund of the Year announced on October 26th. It is worth noting that since Arena\u2019s 2015 inception, over 200 credits have been executed by the Arena team delivering cumulative gross returns to date of approximately $345 million. With four offices and a team of 61 around the globe, Arena is well positioned to provide investors diversified, non-correlated consistent returns. Lastly, as of November 1st<\/sup>, committed and invested assets under management has grown to $1.7B. We expect the positive inflow of AUM to continue, and look forward to delivering operating leverage in the business moving forward.\u201d<\/i><\/p>\n Key Results for the nine months ending September 30, 2020 (with comparisons to the same period in 2019) include:<\/b><\/p>\n \nThis press release should be read in conjunction with the Company\u2019s unaudited interim financial statements, accompanying notes and Management Discussion and Analysis (\u201cMD&A\u201d) for the three and nine months ended September 30, 2020 and with our annual Consolidated Financial Statements and MD&A for the year ended December 31, 2019, which can be found on SEDAR at www.sedar.com<\/a> and on the Company\u2019s website www.westaim.com<\/a>.\n<\/p>\n Non-GAAP Financial Measures<\/span><\/p>\n \nWestaim uses both International Financial Reporting Standards (\u201cIFRS\u201d) and non-generally accepted accounting principles (\u201cnon-GAAP\u201d) measures to assess performance. The Company cautions readers about non-GAAP measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. Book value per share is a non-GAAP measure. Readers are urged to review Section 15 Non-GAAP Measures<\/i> in Westaim\u2019s Management\u2019s Discussion and Analysis in respect of its unaudited consolidated financial statements for the three and nine months ended September 30, 2020 and 2019 (the \u201cMD&A\u201d) for additional disclosure regarding these measures. The financial information relating to the Arena Group and HIIG contained in the MD&A is unaudited and has been derived from the financial statements of the related entities. Readers are cautioned that the HIIG financial information and certain Arena Group financial information, including any non-GAAP measures contained therein, has not been reconciled to IFRS and so may not be comparable to the financial information of issuers that present their financial information in accordance with IFRS.\n<\/p>\n About Westaim<\/span><\/b><\/p>\n \nWestaim is a Canadian investment company specializing in providing long-term capital to businesses operating primarily within the global financial services industry. The Company invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Westaim\u2019s strategy is to pursue investment opportunities with a focus towards the financial services industry and grow shareholder value over the long term. Westaim\u2019s investments include significant interests in HIIG and the Arena Group. HIIG, the HIIG Partnership, Arena, the Arena Group, Arena FINCOs, Arena Finance II, LLC, and Arena Investors are defined in the notes to Westaim\u2019s unaudited consolidated financial statements for the three and nine months ended September 30, 2020 and 2019 and the MD&A. Westaim’s Common Shares are listed on the TSX Venture Exchange under the trading symbol WED.\n<\/p>\n \nFor more information, contact: The Westaim Corporation Highlights<\/b><\/p>\n<\/td>\n \nThree months ended September 30\n<\/p>\n<\/td>\n \nNine months ended September 30\n<\/p>\n<\/td>\n<\/tr>\n \n(millions except share and per share data)\n<\/p>\n<\/td>\n \n2020\n<\/p>\n<\/td>\n \n2019\n<\/p>\n<\/td>\n \n2020\n<\/p>\n<\/td>\n \n2019\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nRevenue and net change in unrealized value of investments\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n4.0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n4.8\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(16.1\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n29.3\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nNet expenses\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(3.4\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(1.1\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(3.8\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(7.7\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \nIncome tax expense\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(0.1\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n \nProfit (loss) and comprehensive income (loss)\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.6\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n3.7\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(20.0\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n21.6\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nEarnings (loss) per share \u2013 basic\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.03\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(0.14\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.15\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nEarnings (loss) per share \u2013 diluted\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.03\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(0.14\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.15\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0\n<\/p>\n<\/td>\n \nSeptember 30, 2020\n<\/p>\n<\/td>\n \nDecember 31, 2019\n<\/p>\n<\/td>\n<\/tr>\n \nAssets\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nCash\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n8.3\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n22.2\n<\/p>\n<\/td>\n<\/tr>\n \nIncome tax receivable\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.5\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.4\n<\/p>\n<\/td>\n<\/tr>\n \nOther assets\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.5\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2.3\n<\/p>\n<\/td>\n<\/tr>\n \nInvestments\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n377.3\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n385.8\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n387.6\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n410.7\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nLiabilities\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nAccounts payable and accrued liabilities\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n9.4\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n10.7\n<\/p>\n<\/td>\n<\/tr>\n \nIncome tax payable\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.3\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.4\n<\/p>\n<\/td>\n<\/tr>\n \nPreferred securities\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n37.6\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n38.5\n<\/p>\n<\/td>\n<\/tr>\n \nDerivative warrant liability\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.8\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1.9\n<\/p>\n<\/td>\n<\/tr>\n \nSite restoration provision\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n4.1\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n4.1\n<\/p>\n<\/td>\n<\/tr>\n \nDeferred tax liability\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.4\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.3\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n52.6\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n55.9\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nShareholders\u2019 equity\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n335.0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n354.8\n<\/p>\n<\/td>\n<\/tr>\n \nTotal liabilities and shareholders\u2019 equity\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n387.6\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n410.7\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nNumber of common shares outstanding1<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n143,186,718\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n143,186,718\n<\/p>\n<\/td>\n<\/tr>\n \nBook value per share – in US$2<\/sup><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n2.33\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n2.48\n<\/p>\n<\/td>\n<\/tr>\n \nBook value per share – in C$2<\/sup><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n3.10\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n3.22\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nThe Westaim Corporation (\u201cWestaim\u201d or the \u201cCompany\u201d) (TSXV: WED) today announced its financial results for the third quarter ended September 30, 2020. Westaim recorded a net profit of $0.6 million (nil earnings per diluted share) and a net loss of $20.0 million ($0.14 loss per diluted share) for the three and nine months ended September 30, 2020, respectively, compared to a net profit of $3.7 million ($0.03 earnings per diluted share) and a net profit of $21.6 million ($0.15 earnings per diluted share) in the three and nine months ended September 30, 2019, respectively. Book value per share was $2.33 (C$3.10) at September 30, 2020, compared to $2.48 (C$3.22) at December 31, 2019.\n<\/p>\n\n
\n
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\n
\n
\n
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J. Cameron MacDonald, President and Chief Executive Officer or
\n
Robert T. Kittel, Chief Operating Officer
\n
The Westaim Corporation
\n
info@westaim.com
\n<\/a>
(416)969-3333\n<\/p>\n\n
\n \n
\n
Financial Highlights
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<\/b>(millions of U.S. dollars except share and per share data)\n<\/p>\n<\/td>\n<\/tr>\n\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n
\n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \n \u00a0<\/td>\n \n \n \n \n \u00a0<\/td>\n \n \u00a0<\/td>\n \n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20201112006064\/en\/838613\/3\/Westaim-logo-sm2.jpg\"){kind=logo}
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