- The Western Investment Company of Canada (WI) updated shareholders on a number of key developments regarding Fortress Insurance Company
- Gross Written Premiums for the first half of 2022 increased 213 per cent to $7.2 million from $2.3 million in 2021
- Fortress intends to complete a $5 million equity issuance, including the US Insureco investment
- WICC is a unique publicly traded, private equity company
- The Western Investment Company of Canada Ltd (WI) is up 2.70 per cent, trading at C$0.38 per share at 12:30 pm ET
The Western Investment Company of Canada (WI) updated a number of key developments regarding Fortress Insurance Company.
Updates:
- Gross written premiums for the first half of 2022 increased 213 per cent to $7.2 million from $2.3 million in 2021. Fortress’ target was to grow premiums to $12 million by year end 2022. Based on the first half of the year, they are on track to meet or exceed that goal
- Fortress agreed to a strategic partnership with a U.S. based specialty insurance company. Its identity will remain confidential until closing of the deal. The partnership includes a minimum equity investment of $1.7 million in Fortress by US Insureco. It will also provide resources and expertise to offer specialty surety products in Canadian commercial insurance markets through a comprehensive underwriting and re- insurance agreement
- Fortress intends to complete a $5 million equity issuance, including the US Insureco investment. The balance will come from a small group of value added business partners who will contribute to the continuing growth and development of Fortress. The subscription price of $1.72 for each share in Fortress represents an approximate 100 per cent premium to Fortress’ June 30, 2022 estimated “book value”. Its a substantial increase from Western’s original $0.85 per share investment in 2019.
The $5 million aggregate investment will provide Fortress with capital, capacity, and growth opportunities for years to come.
Upon completion of the proposed financing, WICC and its original investment partners will retain a combined controlling interest in Fortress of approximately 60 per cent.
“We have helped Fortress establish distribution partnerships that has taken their property insurance business from zero to expected annual sales of $12 million by year end. We are pleased to see Fortress management embark on the important next step, which is to develop a portfolio of niche insurance products. The partnership with US Insureco will propel Fortress into the surety market in a big way and with a financially strong, expert partner,” said Scott Tannas, CEO of WICC.
In addition to being a niche capacity provider in the commercial and residential property insurance market, Fortress focuses on the development and provision of specialty insurance products.
WICC is a unique publicly traded, private equity company. Its purpose is to build and maintain ownership in successful Western Canadian companies, and help them to grow.
The Western Investment Company of Canada Ltd (WI) is up 2.70 per cent, trading at C$0.38 per share at 12:30 pm ET.