Canadian investment company Westaim Corporation (TSXV: WED) has announced its plans to offer a secondary public offering of shares in Skyward Specialty Insurance Group, Inc.™ (NASDAQ: SKWD). The offering, priced at US$36.50 per share, will see Westaim’s wholly-owned subsidiary, Westaim HIIG GP Inc., selling 4.4 million shares of Skyward Specialty’s common stock. The Selling Stockholder has also granted the underwriters a 30-day option to purchase an additional 660,000 shares at the same offering price.
While the proceeds from the sale of shares will not go to Skyward Specialty, the Selling Stockholder will bear the underwriting discounts and commissions associated with the sale, and will receive all the net proceeds.
Leading the offering as joint lead book-running managers are Barclays, Keefe, Bruyette & Woods, Inc., a Stifel Company, and Jefferies. Joint book-running managers for the offering include Citizens JMP, Piper Sandler & Co., Raymond James & Associates, Inc., Truist Securities, Inc., William Blair, TD Securities, and Wolfe | Nomura Alliance.
Westaim Corporation is a Canadian investment company that focuses on providing long-term capital to businesses operating primarily in the global financial services industry. The company pursues investment opportunities with a focus on the financial services industry, with the goal of providing shareholders with capital appreciation and real wealth preservation. Westaim holds significant interests in Skyward Specialty, Arena, and the Arena FINCOs.
Skyward Specialty is a specialty insurance company that offers a wide range of commercial property and casualty products and solutions. The company operates through eight underwriting divisions, delivering non-admitted and admitted insurance services. Skyward Specialty’s subsidiary insurance companies, which include Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company, are all rated A- (Excellent) by A.M. Best Company.
Investors looking to take advantage of this secondary public offering should stay tuned for updates on the deal’s progress and consult with their financial advisors before making any investment decisions.
In addition to the information provided in the article, there are several relevant facts and trends to consider regarding Westaim’s offering of shares in Skyward Specialty:
1. Current Market Trends:
– The insurance industry has been experiencing increased demand for specialty insurance products due to evolving risks and uncertainties in various sectors.
– The COVID-19 pandemic has highlighted the importance of insurance coverage for businesses, leading to heightened interest in insurance stocks.
– The market for initial public offerings (IPOs) and secondary offerings has been active in recent months, driven by strong investor appetite for new investment opportunities.
2. Forecasts:
– Analysts predict continued growth in the specialty insurance sector, fueled by an increase in demand for specialized coverage and solutions.
– The secondary offering of Skyward Specialty’s shares may attract strong investor interest given the company’s solid financial ratings and the potential for further expansion in its underwriting divisions.
3. Key Challenges or Controversies:
– One of the key challenges in the insurance industry is maintaining profitability in the face of rising claims, regulatory changes, and intense competition.
– The impact of natural disasters and catastrophic events can pose significant challenges for insurance companies, affecting their underwriting profitability and ability to pay claims.
Advantages:
– Westaim’s offering provides investors with an opportunity to invest in a specialty insurance company with established underwriting divisions and solid financial ratings.
– Skyward Specialty’s diverse range of commercial property and casualty products positions the company to capitalize on market demand for specialized coverage options.
– The joint lead book-running managers for the offering, including Barclays, Keefe, Bruyette & Woods, and Jefferies, bring their expertise and reputation to the deal, potentially attracting more investors.
Disadvantages:
– Investing in the stock market always carries risks, including the potential for loss of capital.
– The performance of the stock may be affected by external factors such as economic conditions, regulatory changes, or unexpected events.
– Investors should carefully consider their investment goals, risk tolerance, and consult with financial advisors before making any investment decisions.
For more information related to the topic, you can visit the Westaim Corporation’s official website here and Skyward Specialty Insurance Group, Inc.™’s official website here.