The Westaim Corporation ('Westaim' or the 'Company') (TSXV: WED) is pleased to provide an update on various developments relating to Houston International Insurance Group, Ltd. ('HIIG').

2019 HIIG Results

Westaim is pleased to provide the following update on the results for HIIG as at and for the year ending December 31, 2019. Gross written premium for the year ending December 31, 2019 was $878.3 million, an increase of 26% over the same period in 2018. Net written premium for the year ending December 31, 2019 was $421.7 million, an increase of 40% over the same period in 2018. Net income after-tax was $32.3 million for the year ending December 31, 2019 and the combined ratio for the year was 98.4%. Stockholders' equity as at December 31, 2019 was $370.2 million, an increase of 12% from $329.9 million as at December 31, 2018. A discussion of HIIG's results will be included with Westaim's fourth quarter and year end annual report expected to be released on March 26, 2020. Additionally, Westaim will make HIIG's audited financial statements as at and for the year ending December 31, 2019 available on SEDAR on or before March 31, 2020. Subsequent to December 31, 2019, the onset of COVID-19 and the novel coronavirus has caused considerable angst in the community and its potential economic impact has caused high levels of volatility in world financial markets. After a considered review, Westaim advises that it does not believe HIIG has material exposure to the impacts of the pandemic under the policies of insurance it currently has in force. However, particularly in March 2020, considerable volatility experienced in financial markets has resulted in unrealized losses on the equity securities portion of HIIG's investment portfolio, which portfolio represented approximately 9% of HIIG's total investment portfolio as at December 31, 2019. These unrealized losses are expected to impact reported net income (loss) for the 2020 fiscal year, unless a recovery in the equity markets, and particularly HIIG's portfolio of equity securities, is experienced during the remainder of the year. Westaim advises that HIIG's strategy and intention is to hold and measure its equity investments over the long term in accordance with its investment strategy. Westaim further advises HIIG has implemented its business continuity plan which includes employees working from home or other remote locations to continue service to its policyholders, reinsurance partners, clients, agents, and producers.

About Westaim

Westaim is a Canadian investment company specializing in providing long-term capital to businesses operating primarily within the global financial services industry. The Company invests, directly and indirectly, through acquisitions, joint ventures and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Westaim's strategy is to pursue investment opportunities with a focus towards the financial services industry and grow shareholder value over the long term. Westaim's investments include significant interests in HIIG and the Arena Group. Westaim's Common Shares are listed on the TSX Venture Exchange under the trading symbol WED. This release is made solely on behalf of Westaim and not on behalf of HIIG.

Contact:

Tel: (416)969-3333

Certain portions of this press release as well as other public statements by Westaim contain forward-looking statements. Such forward-looking statements include but are not limited to statements concerning the investment strategies and expected rates of return and strategic alternatives to maximize value for shareholders. These statements are based on current expectations that are subject to risks, uncertainties and assumptions and Westaim can give no assurance that these expectations are correct. Westaim's actual results could differ materially from those anticipated by forward-looking statements for various reasons generally beyond our control, including but not limited to: (i) our ability to obtain all requisite approvals, including TSXV approval, as applicable, in connection with the Offering; (ii) HIIG's ability to complete the Offering on the terms described herein or at all; (iii) HIIG's ability to complete the LPT; (iv) changes in market conditions or deterioration in underlying investments; (v) general economic, market, financing, regulatory and industry developments and conditions and (vi) other risk factors set forth in Westaim's 2018 Audited Annual Financial Statements and Management's Discussion and Analysis, quarterly reports or annual information form. Readers of this press release are cautioned not to place undue reliance on these 'forward-looking statements'. Except as otherwise required by applicable law, Westaim expressly disclaims any intention or obligation to update publicly any forward-looking information, whether as a result of new information, future events or otherwise. The information provided herein does not constitute an offer or solicitation regarding any investment products offered by Arena Group.

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