Investor Presentaiton
Westaim Summary Quarterly Operating Results
Operating result
Three months
ended December 31
Year ended
December 31
(Amounts in millions of US$ except per share data)
2021
2020
2021
2020
Income from investment in Arena FINCOS and ASOF
$0.6
$1.6
$10.1
$0.1
Income from investment in Skyward Specialty excluding unusual items*
5.0
5.9
17.2
11.3
Income (loss) from investment in Arena Investors
5.8
1.4
10.0
(0.1)
Income from investments excluding unusual items*
$11.4
$8.9
$37.3
$11.3
Holding company operating expenses
(1.8)
(1.7)
(6.8)
(5.9)
Preferred securities interest expense
(0.5)
(0.5)
(2.0)
(1.9)
Interest and fee income
0.6
0.6
2.4
2.2
Net holding company operating and interest expenses
($1.7)
($1.6)
($6.4)
($5.6)
Share-based compensation recovery (expense)
0.5
(0.7)
(0.5)
(0.3)
Foreign exchange loss
(0.9)
(0.9)
(0.4)
Site restoration recovery (expense)
1.5
(0.6)
4.1
(0.7)
Derivative warrants - change in fair value gain (loss)
0.4
(0.2)
0.8
0.8
Total net holding company recovery (expenses)
$0.7
($4.0)
($2.9)
($6.2)
Income tax expense
(0.2)
(0.2)
(0.1)
Adjusted profit and comprehensive income excluding unusual
items*
$11.9
$4.9
$34.2
$5.0
Westaim's share of unusual items*
(5.2)
(19.4)
(5.9)
GAAP profit (loss) and comprehensive income (loss)
$6.7
($14.5)
$28.3
(39.5)
($34.5)
GAAP earnings (loss) per share-diluted
$0.04
($0.10)
$0.19
($0.24)
Adjusted earnings per share-diluted excluding unusual items*
$0.08
$0.03
$0.23
$0.03
Refer to Westaim's MD&A section 3 Investments at December 31, 2021 and December 31, 2020 for details of Skyward Specialty unusual items.
WESTAIM
•
GAAP profit and comprehensive income in Q4 2021 was
$6.7 million ($0.04 earnings per share) compared to a
GAAP profit and comprehensive loss of $14.5 million
($0.10 GAAP loss per share) in Q4 2020
GAAP profit and comprehensive income in FY 2021 was
$28.3 million ($0.19 earnings per share) compared to a
GAAP profit and comprehensive loss of $34.5 million
($0.24 GAAP loss per share) in FY 2020
Skyward Specialty reported higher underwriting income in
Q4 2021 of $7.1 million vs. $4.3 million in Q4 2020
despite elevated catastrophes
Skyward Specialty recorded $11.1 million of investment
income in Q4 2021 vs. $13.2 million in Q4 2020
Arena FINCOs' and ASOF's diversified and uncorrelated
portfolios increased Westaim's income by $0.6 million in
the quarter with an approximate +0.3% net investment
return vs. +0.9% in Q4 2020
Arena Investors increased fee-paying AUM to $2.4 billion
at December 31, 2021 vs. $1.3 billion at December 31,
2020 resulting in higher management and service fee
revenue
Arena Investors also produced solid investment returns in
Q4 2021, which combined with invested AUM resulted in
a significant increase in incentive fee income in Q4 2021
and FY 2021
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