2026 Q1 Financial Results From Major North American Insurers

Two major financial services companies in North America have released their first-quarter 2026 financial results, highlighting challenges in early-stage insurance ventures, new annuity product accounting, and unique financial events.

The Westaim Corporation reported a net loss of $33.4 million for the first quarter of 2026, equating to a diluted loss of $1.00 per share. This represents a significant increase from the $7.4 million net loss, or $0.34 per share, in the same quarter of the previous year. The firm’s total revenue reached $13.5 million across its segments, including asset management, insurance, and corporate operations. However, expenses excluding depreciation and taxes totaled $31.8 million, resulting in an adjusted EBITDA loss of $28.8 million.

In Westaim's insurance division, operated by Ceres Life Insurance Company, the adjusted EBITDA showed a loss of $20.1 million. The net insurance service loss of $11.1 million and operating expenses of $14.1 million were partially mitigated by a net investment income of $5.1 million. Company management cited the need for reserve bookings on new annuity obligations as the primary cause of the insurance service loss. They anticipate improved investment returns over time to counter these losses.

Within the asset management division, Westaim reported an $11.3 million net loss, including $3.1 million in severance expenses. Operating expenses also accounted for $1.3 million related to platform expansion.

Mount Logan Capital revealed that its asset management segment's revenue was $2.5 million for the first quarter of 2026, a decline of $1.4 million or 36% compared to 2025, due to the termination of a key management agreement and prior year reimbursements. Fee-Related Earnings dropped to $1.2 million from $2.3 million, with intercompany management fees from Ability Insurance Company growing by 7% to $1.8 million.

Mount Logan's insurance solutions reported a 7% year-over-year increase in total net investment income, reaching $20.2 million. Excluding certain reinsurance assets, net investment income rose by 2% to $14.6 million. The portfolio yield for the quarter was 6.8%, or 7.5% when excluding specific assets. Spread-Related Earnings significantly increased to $2.0 million from under $0.1 million the previous year.

In capital activities, Mount Logan completed a $40.0 million senior unsecured notes offering in January 2026, using some proceeds to reduce credit facility debt. The company also initiated a $15.0 million tender offer and a $10.0 million share repurchase program to run until December 2027, demonstrating active capital and risk management strategies.