Two North American financial services groups have released first-quarter 2026 results, with both reporting pressure on headline earnings tied to early-stage insurance build-outs, accounting treatment of new annuity business, and one-off items.
The Westaim Corporation reported a Q1 2026 net loss of $33.4 million, or $1.00 diluted loss per share, compared with a net loss of $7.4 million, or $0.34 diluted loss per share, in the prior-year quarter.
Consolidated revenue came in at $13.5 million across asset management, insurance, and corporate segments, while total expenses excluding depreciation, amortization, and income taxes reached $31.8 million. Adjusted EBITDA was a loss of $28.8 million for the period.
The insurance segment, which operates mainly through Ceres Life Insurance Company, posted an Adjusted EBITDA loss of $20.1 million. The result reflected a net insurance service loss of $11.1 million and $14.1 million in operating expenses, offset in part by $5.1 million of net investment income.
Westaim attributed the segment's negative service results to the accounting mechanics of scaling new multi-year guaranteed annuity and fixed indexed annuity issuance, which requires Ceres to book reserves for future policyholder obligations upfront.
Management said that over time, "as premiums are invested and the portfolio continues to earn returns in excess of crediting rates," the contracts are expected to contribute positively to operating results.
Operating expenses for the quarter included roughly $1.3 million of platform build-out costs. The asset management segment recorded an $11.3 million net loss, which included $3.1 million in severance-related expenses.
Mount Logan Capital reported Q1 2026 asset management segment revenue of $2.5 million, down $1.4 million, or 36%, from the prior-year quarter.
The company linked the decline to the July 2025 termination of the Logan Ridge investment management agreement and one-time SOFIX management fee reimbursements booked in Q1 2025.
Fee-Related Earnings for the segment were $1.2 million, down from $2.3 million a year earlier, reflecting the lower management fee base. Intercompany management fees from Ability Insurance Company, which sit outside reported asset management revenue, rose 7% to $1.8 million.
In Insurance Solutions, total net investment income including consolidated variable interest entities increased 7% year over year to $20.2 million. Excluding funds withheld assets under reinsurance and modified coinsurance arrangements, net investment income was $14.6 million, a 2% rise.
Portfolio yield reached 6.8% for the quarter, or 7.5% excluding funds withheld and Modco assets. Spread-Related Earnings improved to $2.0 million from less than $0.1 million a year earlier.
Ability's total assets managed by Mount Logan, excluding funds withheld and Modco, stood at $699.4 million as of March 31, 2026, up $105.7 million year over year. Including Modco, total managed assets reached $891.2 million, a $249.0 million increase. Insurance segment book value was $120.1 million, down $2.0 million from year-end 2025.
On the capital front, Mount Logan completed a $40.0 million senior unsecured notes offering on Jan. 26, 2026, using proceeds to partially repay its credit facility.
The company also closed a $15.0 million tender offer on Feb. 6 covering roughly 12% of its outstanding common stock, and on Feb. 23 announced a $10.0 million share repurchase program running through Dec. 31, 2027.
