Company Background
Skyward Specialty Insurance Group, Inc.TM (“Skyward Specialty”) is a rapidly growing specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. Skyward Specialty operates through eight underwriting divisions – Accident & Health, Captives, Global Property, Industry Solutions, Professional Lines, Programs, Surety and Transactional E&S.

Skyward Specialty’s subsidiary insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A- (Excellent) by A.M. Best Company.

Westaim’s Investment in Skyward Specialty
In 2014, Westaim established Westaim HIIG Limited Partnership, (“the Partnership”). The Partnership was funded by Westaim along with third party investors. With the funding, in July 2014, the Partnership completed the acquisition of the majority interest in Houston International Insurance Group, Ltd. (“HIIG”) (renamed to Skyward Specialty in November 2020). In January 2015 the Partnership provided additional funding to Skyward Specialty. In April 2020, Skyward Specialty completed a convertible preferred share rights offering that resulted in gross proceeds of $100 million to Skyward Specialty. As part of the rights offering, Westaim purchased $44 million (or 44%) of the Skyward Specialty preferred shares offered.

In January 2023, Skyward Specialty listed on the Nasdaq Global Select Market (the “NASDAQ”) under the ticker symbol “SKWD”. The IPO of 8,952,383 shares of Skyward Specialty common stock (“Shares”), consisting of 4,750,000 Shares sold by Skyward Specialty and 4,202,383 Shares sold by selling stockholders, at the public offering price of $15.00 per Share. The underwriters also exercised in full their option to purchase 1,342,857 additional Shares from the selling stockholders, at a price per share of $15.00 per Share, less underwriting discounts and commissions.

On June 12, 2023, Westaim announced the closing of underwritten secondary public offering of Skyward Specialty. Westaim sold 3,850,000 Shares of Skyward Specialty, at a price to the public of $23.00 per Share. The underwriters also exercised in full their option to purchase an additional 577,500 Shares from the selling stockholders at $23.00 per Share, of which 137,500 Shares were sold by Westaim. The proceeds to Westaim from the 3,987,500 Shares it sold, less underwriting commissions of 4.75%, were approximately US$87.4 million.

On November 20, 2023, Westaim announced the closing of Skyward Specialty upsized follow-on offering of its common stock. Westaim sold 3,600,000 Shares of Skyward Specialty (which included the exercise in full of the underwriters’ over-allotment option) at a price to the public of US$30.50 per Share. The proceeds to Westaim, less underwriting commissions of 4.5%, were approximately US$104.9 million.

As at November 20, 2023, Westaim owns 6,979,639 Shares of Skyward Specialty.

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