Fortress Insurance, a specialty and surplus lines insurer under Western Investment Company of Canada, reported continued growth in Q3 2025, reflecting its strategic expansion and capital-efficient underwriting.
Gross written premiums (GWP) for Fortress increased to $16.8 million, up from $15.1 million in the same period last year. Meanwhile, insurance revenue grew 26% year-over-year, highlighting the company’s ability to attract new business across its specialty lines.
While total insurance service results fell by 38%, this was largely due to increased claims and the long-term nature of policies under Fortress’ specialty programs, whose profitability matures gradually over the policy term.
The insurer’s trailing 12-month loss ratio improved slightly to 53.3%, compared to 54.8% in the prior-year period, signaling disciplined underwriting and effective claims management. The expense ratio and combined ratio were elevated due to one-time costs, including the launch of Fortress’ new automotive replacement value insurance product, the cash settlement of its Employee Share Ownership Plan (ESOP), and professional fees related to the Western/Fortress transaction.
Excluding these transaction-related costs, normalized expense and combined ratios were 47.7% and 97.4%, respectively.
Net investment income decreased by over 30% year-over-year, primarily due to lower returns on certain asset classes and the liquidation of a portion of invested assets prior to transitioning capital to a new investment manager. Despite this, Fortress’ total investment portfolio grew to $29.7 million from $23.5 million at the end of 2024, providing additional capacity to support future underwriting and product expansion.
Paul Rivett, CEO of Western, noted that Fortress delivered another quarter of “capital-efficient growth through prudent underwriting and continuing expansion of its specialty programs.” He highlighted the strong performance of equity-accounted investments and the company’s ongoing execution on growth initiatives.
Fortress’ performance illustrated the role of specialty and surplus lines insurers in the Canadian market. By providing coverage for long-tailed, niche risks, Fortress adds critical capacity for brokers and commercial clients in areas often underserved by standard insurers. Its expansion into automotive replacement value insurance and continued growth of specialty programs demonstrate the insurer’s potential to stabilize access and pricing in hard-to-place sectors while maintaining disciplined underwriting and risk management.
As specialty lines markets remain competitive, Fortress’ growth and measured approach signal a positive development for brokers and clients seeking tailored coverage solutions in Canada’s evolving insurance landscape.
Last year, Western Investment Company of Canada pivoted from a private equity investment platform to a property and casualty insurance and investment holding company, increasing its stake in Fortress to over 83%.
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