Fortress Insurance Company sees dive in net income
Fortress Insurance Company sees dive in net income | Insurance Business Canada
Insurance News
Fortress Insurance Company sees dive in net income
Plans for ownership changes also announced
Insurance News
By
Terry Gangcuangco
Fortress Insurance Company was profitable in the three and six months that ended June 30 of this year but not nearly as much compared to corresponding figures in 2023.
Metric
Q2 2024
Q2 2023
H1 2024
H1 2023
Insurance revenue
$5,852,846
$5,036,753
$11,571,504
$9,682,871
Insurance service result
$888,982
$639,083
$1,081,466
$1,099,380
Investment income (loss)
$222,233
$46,750
$487,511
$355,195
Net income (loss)
$52,634
$224,752
$111,088
$499,153
Gross written premium
$10,559,993
$7,262,622
$15,777,765
$10,981,840
Without elaborating on the decrease, the group said: “Western recognized equity income of $31,604 from Fortress compared to $90,552 in equity income for the comparative period ended June 30, 2023.”
Plan for full ownership of Fortress
In a separate announcement, Western outlined its plans to become the sole owner of the insurance business. Currently, Western owns 28.5% of Fortress.
Announcing a revised transaction designed to be more straightforward, Western president and chief executive Scott Tannas said: “We have essentially become victims of our own success. Securing agreements for the purchase of 100% of Fortress Insurance, instead of the 51% outlined as a condition of the original transaction, would have required a complex and costly process in order to close the Fortress Insurance acquisition.
“In addition to being costly, this would have significantly delayed and altered the original transaction. Given the strategic importance to Western of acquiring 100% of Fortress Insurance in the near term, we searched for a simpler and more efficient financing path. This revised transaction provides Western with a much clearer and quicker path to achieving its insurance and investments growth strategy and maintains a simple capital structure.”
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