History

The Westaim Corporation (“Westaim” or the “Company”)(TSXV: WED) has been publicly traded since 1996. At the time of its initial public offering (as a spin-out from Viridian Inc.), it had a portfolio of development stage business opportunities which included: coking-resistant coatings, electroluminescent flat panel displays, biomedical coatings, electronic ceramics and structural ceramics.  In the period between 2005 and 2008, after a strategic review by its Board of Directors, Westaim proceeded to divest virtually all of its businesses in order to improve its business focus and to pursue other investment opportunities. In April 2009, Westaim hired the current management team to pursue investment opportunities to maximize value for shareholders.

In 2010, the Company completed its opportunistic acquisition of JEVCO Insurance Company. With the disposition of its remaining industrial assets, Westaim became an investment company with a particular focus on the financial services industry.  In response to an unsolicited offer, in September 2012, Westaim sold Jevco and subsequently returned substantially all of the proceeds of the sale of Jevco to its shareholders thereby generating superior risk-adjusted returns.

In 2014, Westaim funded and established a limited partnership controlled by Westaim in order to complete the acquisition of a majority interest in Houston International Insurance Group, Ltd. (“HIIG”) (renamed to Skyward Specialty Insurance Group, Inc. (“Skyward Specialty”) in November 2020) for US$75.7 million (Westaim share). Skyward Specialty was a rapidly growing specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. Today, Skyward Specialty operates through eight underwriting divisions, including Accident & Health, Captives, Global Property, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S. In January 2015 Westaim made a follow-on investment in Skyward Specialty of US$50.6 million to complete a bolt-on acquisition and in April 2020, the Company, with other Skyward Specialty shareholders, participated in a US$100 million rights offering of preferred shares, with Westaim purchasing its pro rata share of US$44 million. On January 18, 2023, Skyward Specialty completed an initial public offering (“IPO”) and listed its shares on the Nasdaq Global Select Market under the ticker symbol “SKWD”. From June 2023 to September 2024, Westaim monetized its interest in Skyward Specialty, generating strong returns and tax efficient gains.(1)

  • Total realized proceeds of US$454.4 million (C$618.2 million)
  • Gross internal rate of return (“IRR”) (US$) of 12.8% (gross IRR (C$) of 14.8%)
  • Realized and unrealized gain (US$) of 166.7% (realized and unrealized gain (C$) of 201.1%)

In 2015, the Company established the Arena Group. Westaim (through a number of affiliated entities) made an aggregate investment in the Arena Group of approximately US$185 million. This investment was funded in part from the net proceeds of Westaim’s previously announced equity offering which raised gross proceeds of approximately C$234 million, including approximately C$22 million provided by Westaim’s management team, insiders and certain other investors.

(1) For further information, please refer to the following