“IT IS GOOD TO HAVE AN END TO JOURNEY TOWARDS, BUT IT IS THE JOURNEY THAT MATTERS, IN THE END.”

-ERNEST HEMINGWAY

For the past 11 years, the team at Trisura Guarantee has been on a journey to build the best specialty lines insurer in Canada with the end goal of becoming THE Canadian specialty lines leader. We appreciate you sharing our journey along the way, and we still feel like we are just getting started!

Last month, we announced a new chapter and upcoming change in the corporate structure of Trisura Guarantee which we believe will help us along the journey. However, based on some of the responses I received from a number of folks, it quickly became apparent that I had not done a very good job of explaining exactly what is to transpire. Let me try again.

In a nut shell, Brookfield is divesting its interest in both Trisura Guarantee and Imagine Re by spinning those businesses out into a new public company that will be owned by Brookfield shareholders (to start) and listed on the TSX. This new global platform will be called Trisura Group Ltd. One of the key strategic priorities of the group will be incubating a new start up P&C insurer in the US.

More precise details are as follows: Brookfield will be moving its 60% ownership interest in 6436978 Canada Limited, (the company that owns 100% of Trisura Guarantee Insurance Company) into a new company that it just incorporated. Trisura management and employees will continue to hold our 40% interest in 6436978 Canada Limited. At the same time, Brookfield will also transfer its 100% ownership interest in Imagine Re, a Bermuda/Barbados based reinsurer currently in run-off which will eventually be resurrected into the same new company. To begin with, the new company will effectively own 60% of Trisura Guarantee and 100% of Imagine.

Brookfield will then spin-out its ownership of the new company by way of a special dividend to all existing shareholders of Brookfield. Existing shareholders of Brookfield will be the initial shareholders of the new company, but of course this will begin to change as the shares start trading. Brookfield as a corporate entity will no longer have any ownership in Trisura. The new company will be listed on the TSX (a draft prospectus has been filed and made public in February) and will be called Trisura Group Ltd. Soon after, Trisura Group Ltd will support an initiative to enter the US P&C marketplace through a new start-up operation called Trisura Specialty Insurance Company (or Trisura US).

After approval of the public listing, Trisura Group Ltd will have three principal regulated subsidiaries: Trisura Guarantee (the Canadian operations), Imagine Re, which will be renamed Trisura International Insurance (the reinsurance arm), and Trisura Specialty Insurance (the US operations). Trisura Group Ltd intends on becoming a significant global insurance platform over time.

Trisura Group Ltd’s CEO will be Greg Morrison, a Canadian living in Bermuda who has extensive experience in reinsurance and other facets of the insurance business. I will remain CEO of the Canadian operation and as I mentioned before, we expect little change in the day to day operations of Trisura Guarantee, although we do expect the formation of Trisura Group Ltd to help fuel our future growth.
The benefits to Trisura Guarantee include access to capital via Trisura Group Ltd which will also provide an increased strategic focus on growth opportunities within the insurance space.

I would like to take this opportunity to thank you for your significant and strong support of Trisura over the past 11 years as we have continued on our journey towards becoming Canada’s leading specialty insurer. It has been a wonderful story, full of twists and turns and a whole lot of laughs along the way, and I look forward to sharing this next chapter together.

Should you have any questions at all please give me a shout. Thanks again.