NEWS

Press Release

TRISURA GROUP REPORTS SECOND QUARTER 2020 RESULTS

TORONTO, August 5, 2020 — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance provider, today announced financial results for the second quarter of 2020.

David Clare, President and CEO of Trisura, stated, “In Q2, Trisura generated net income of $6.6 million, driven by operational strength from our specialty platforms in North America, investment gains and partially offset by reserve strengthening in our Reinsurance entity.

In Canada, disciplined underwriting and consistent investment returns sustained our industry-leading 19.7% return on equity despite the disruption of COVID-19. Our U.S. platform maintained its growth trajectory, binding $144.8 million of quarterly gross premiums and generating $4.0 million in net income. 

We experienced volatility in our reinsurance operations, the result of heightened market volatility and redeployment of our assets as the new manager established an improved portfolio.

Following our equity raise, our balance sheet is further strengthened and positioned to support growth.”

Highlights

  • Gross and net written premiums growth of 85.4% and 26.3% in Q2, supported by momentum in our U.S. operations and continued growth in Canada.
  • Net income of $6.6 million in the quarter, driven by strong underwriting in Canada, growing profitability in the U.S and investment gains.
  • Consolidated LTM ROE of 11.8%, which includes the impact of negative results in our reinsurance business and dilution from the equity raises in September 2019 and May 2020, compared to 3.3% at Q2 2019.
  • Book value per share of $26.24, a 21.6% increase from December 31, 2019, driven by the equity raise and supported by positive net income.
  • EPS of $0.68 in Q2 2020, compared to $(0.63) in Q2 2019.
  • Successfully completed a $65.1 million equity raise to sustain growth in the US supported by existing and new shareholders.
  • Industry-leading results from our Canadian business, achieving a combined ratio of 78.9% in Q2 2020, producing a 19.7% LTM ROE.
  • Continued acceleration in our U.S. business, producing $144.8 million in GPW in the quarter and $4.0 million in net income, driving a 9.5% LTM ROE.
  • Improved financial flexibility demonstrated by a debt-to-capital ratio of 9.9%, below our long-term target of 20.0%.

COVID-19

  • Trisura staff globally continue to work effectively from home. We have introduced safety measures in physical offices in preparation for a gradual return to work acknowledging best practices and local jurisdiction protocols.
  • Despite resilience in the quarter, fears of a second wave in the US and weaker than anticipated economic recovery may threaten momentum. We have observed slowing conditions across the US and continue to monitor closely.
  • Premium generation and claims activity may be impacted depending on the length and depth of the pandemic-related economic slowdown, as well as the effectiveness of government support programs. Depending on these factors, premium growth could slow and claims activity could increase.

Insurance Operations

  • Disciplined underwriting in Canada, achieving a loss ratio of 16.2% in the quarter, supported by strong claims experience across all lines. Improvements in expense ratio driven by operational efficiency resulted in a combined ratio of 78.9%.
  • Strong growth in our U.S. platform, with GPW of $144.8 million in Q2 2020 compared to $120.7 million in Q1 2020, and fee income of $5.6 million in Q2 2020 compared to $4.1 million in Q1 2020.
  • Volatility in the asset-liability matching in our international reinsurance operations negatively impacted consolidated net underwriting income in the quarter.

Capital

  • The minimum capital test (“MCT”) ratio of our Canadian operations was 255% (258% as at December 31, 2019), which comfortably exceeded regulatory requirements of 150%.
  • Trisura Specialty’s capital of $112.8 million USD as at June 30, 2020 ($83.3 million USD as at December 31, 2019) was in excess of the minimum requirement of the states in which Trisura Specialty is licensed.
  • Trisura International’s capital of $11.7 million USD as at June 30, 2020 ($14.2 million USD as at December 31, 2019) was appropriate in the context the regulatory capital requirements it is subject to.
  • Consolidated debt-to-capital ratio of 9.9% as at June 30, 2020 is below our long-term target of 20.0%.

Investments

  • In Q2 2020, net investment income of $6.3 million compared to $5.8 million in Q2 2019. The improvement was driven by an increase in interest and dividend income in North America, as well as longer duration reinsurance assets, which generated strong results in a declining interest rate environment.
  • In Canada, interest and dividend income was consistent in Q2 2020, versus the prior period.
  • In the U.S., interest and dividend income increased 80.6% in Q2 2020, over the prior period, as we benefited both from diversification of the portfolio and increased capital following equity raises in September 2019 and May 2020.
  • European rates fell in Q2 2020, which contributed to a net investment gain of $3.6 million in Trisura International, offset by reserve reductions. Investment income at Trisura International increased 72.7% over the prior YTD period.
  • Other comprehensive income was positively impacted by unrealized gains in the equity, preferred share and fixed income portfolios in both Canada and the US, following the recovery in financial markets since the end of Q1 2020.

Corporate Development

  • Trisura continues to grow its admitted licenses, with 30 state licenses today and the intention of securing admitted licenses in all 50 states.

About Trisura Group

Trisura Group Ltd. is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated subsidiaries: Trisura Guarantee Insurance Company in Canada, Trisura Specialty Insurance Company in the US and Trisura International Insurance Ltd. in Barbados. Trisura Group is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at http://www.trisura.com/group. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at www.sedar.com.

For more information, please contact:
Name: Bryan Sinclair
Tel: 416 607 2135
Email: bryan.sinclair@trisura.com

Trisura Group Ltd.
Consolidated Statements of Financial Position
As at June 30, 2020 and December 31, 2019
(in thousands of Canadian dollars, except as otherwise noted)

Trisura Group Ltd.
Consolidated Statements of Comprehensive (Loss) Income
For the three months ended June 30
(in thousands of Canadian dollars, except as otherwise noted)

Trisura Group Ltd.
Consolidated Statements of Cash Flows
For the three months ended June 30
(in thousands of Canadian dollars, except as otherwise noted)

Cautionary Statement Regarding Forward-Looking Statements and Information  

Note: Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Trisura Group, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

 Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Trisura Group to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

 Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada.

 We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Trisura Group undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

TRISURA GROUP COMPLETES C$60 MILLION UPSIZED BOUGHT DEAL PUBLIC OFFERING AND CONCURRENT PRIVATE PLACEMENT OF C$7.5 MILLION

TORONTO, May 15, 2020 — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance company, today announced that it has completed its previously announced upsized public offering of 1,289,150 common shares, including 168,150 common shares issued pursuant to the full exercise of the underwriters’ over-allotment option, at a price of $46.85 per common share, for gross proceeds of approximately $60 million (the “Offering”). The Offering was completed on a bought deal basis by a syndicate of underwriters led by BMO Capital Markets and Cormark Securities Inc.

Concurrent with the Offering, Trisura issued 160,100 common shares to its principal shareholder, Partners Value Investments Inc., on a private placement basis, for additional gross proceeds of approximately $7.5 million (the “Private Placement”).

In total, Trisura received gross proceeds of approximately $67.5 million from the closing of the Offering and the Private Placement.

About Trisura Group

Trisura Group Ltd. is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated subsidiaries: Trisura Guarantee Insurance Company in Canada, Trisura Specialty Insurance Company in the US and Trisura International Insurance Ltd. in Barbados. Trisura Group is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at http://www.trisura.com/group. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at www.sedar.com.

For more information, please contact:
Name: Bryan Sinclair
Tel: 416 607 2135
Email: bryan.sinclair@trisura.com

TRISURA GROUP LTD. ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED BOUGHT DEAL PUBLIC OFFERING TO C$52.5 MILLION AND CONCURRENT PRIVATE PLACEMENT OF C$7.5 MILLION

TORONTO, May 11, 2020 — Trisura Group Ltd. (“Trisura”, or the “Company”) (TSX:TSU), a leading international specialty insurance company, announced today that, due to strong demand, the Company has increased the size of the previously announced bought deal public offering to 1,121,000 common shares (the “Common Shares”) of the Company, at a price of $46.85 per Common Share (the “Offering Price”) for gross proceeds of $52.5 million (the “Offering”). The Offering is led by BMO Capital Markets and Cormark Securities Inc. (collectively, the “Underwriters”). The Company has granted the Underwriters an option (the “Over-Allotment Option”), exercisable in whole or in part at any time up to 30 days following the closing of the Offering, to purchase up to an additional 15% of the Common Shares at the Offering Price to cover over-allotments, if any. Concurrently with the closing of the Offering, the Company will issue and sell 160,100 common shares of the Company in a private placement at the Offering Price, for additional gross proceeds of $7.5 million (the “Private Placement”), with Trisura’s principal shareholder, Partners Value Investments LP. Closing of the Offering and the Private Placement will be conditional on each other.

The Company intends to use the net proceeds of the Offering and the Private Placement for general corporate purposes including, but not limited to, supporting the growth of its U.S. fronting platform.

The Common Shares to be issued under the Offering will be offered by way of a prospectus supplement to be filed in each of the provinces and territories of Canada, and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws, and certain other jurisdictions outside of Canada and the United States. 

Closing of the Offering and the Private Placement is expected to occur on or about May 15, 2020, subject to Trisura receiving all necessary regulatory approvals.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

About Trisura Group

Trisura Group Ltd. is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated subsidiaries: Trisura Guarantee Insurance Company in Canada, Trisura Specialty Insurance Company in the US and Trisura International Insurance Ltd. in Barbados. Trisura Group is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at http://www.trisura.com/group. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at www.sedar.com.

For more information, please contact:
Name: Bryan Sinclair
Tel: 416 607 2135
Email: bryan.sinclair@trisura.com

Cautionary Statement Regarding Forward-Looking Statements and Information

Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “likely,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could”.

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of our Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: developments related to COVID-19, including the impact of COVID-19 on the economy and global financial markets; the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behaviour of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; changes in capital requirements; changes in reinsurance arrangements; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes or pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; and other risks and factors detailed from time to time in our documents filed with securities regulators in Canada.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Trisura Group Ltd. undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

TRISURA GROUP LTD. ANNOUNCES C$42.5 MILLION BOUGHT DEAL PUBLIC OFFERING AND CONCURRENT PRIVATE PLACEMENT OF C$7.5 MILLION

TORONTO, May 11, 2020 — Trisura Group Ltd. (“Trisura”, or the “Company”) (TSX:TSU), a leading international specialty insurance company, announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Cormark Securities Inc. (collectively, the “Underwriters”), pursuant to which the underwriters have agreed to buy, on bought deal public offering basis, 907,500 common shares (the “Common Shares”) of the Company, at a price of $46.85 per Common Share (the “Offering Price”) for gross proceeds of $42.5 million (the “Offering”). The Company has granted the Underwriters an option (the “Over-Allotment Option”), exercisable in whole or in part at any time up to 30 days following the closing of the Offering, to purchase up to an additional 15% of the Common Shares at the Offering Price to cover over-allotments, if any. Concurrently with the closing of the Offering, the Company will issue and sell 160,100 common shares of the Company in a private placement at the Offering Price, for additional gross proceeds of $7.5 million (the “Private Placement”), with Trisura’s principal shareholder, Partners Value Investments LP. Closing of the Offering and the Private Placement will be conditional on each other.

The Company intends to use the net proceeds of the Offering and the Private Placement for general corporate purposes including, but not limited to, supporting the growth of its U.S. fronting platform.

The Common Shares to be issued under the Offering will be offered by way of a prospectus supplement to be filed in each of the provinces and territories of Canada, and may be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws, and certain other jurisdictions outside of Canada and the United States.

Closing of the Offering and the Private Placement is expected to occur on or about May 15, 2020, subject to Trisura receiving all necessary regulatory approvals.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

About Trisura Group

Trisura Group Ltd. is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated subsidiaries: Trisura Guarantee Insurance Company in Canada, Trisura Specialty Insurance Company in the US and Trisura International Insurance Ltd. in Barbados. Trisura Group is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at http://www.trisura.com/group. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at www.sedar.com.

For more information, please contact:
Name: Bryan Sinclair
Tel: 416 607 2135
Email: bryan.sinclair@trisura.com

Cautionary Statement Regarding Forward-Looking Statements and Information  

Note: Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Trisura Group, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

 Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Trisura Group to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

 Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada.

 We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Trisura Group undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

TRISURA GROUP REPORTS FIRST QUARTER 2020 RESULTS

TORONTO, May 6, 2020 — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance provider, today announced financial results for the first quarter of 2020.

David Clare, President and CEO of Trisura, stated, “We are pleased with Trisura’s first quarter results, generating net income of $8.4 million, vs. $2.5 million in Q1 2019 driven by increasing  profitability from our US platform and continued strength in Canada.

Our US operations bound $120.7 million of gross premiums written and generated $2.6 million in net income. In Canada, disciplined underwriting and enhanced investment returns sustained our industry-leading 19.3% return on equity.

Importantly, improved asset-liability matching in our international reinsurance operations limited volatility in a challenging environment.

Notwithstanding our improved net income, book value per share decreased as a result of mark-to-market losses in the investment portfolio. However, our balance sheet remains healthy. Regulatory capital levels are strong despite market volatility while liquidity has been enhanced through an increase in available capacity from our revolving credit facility.”

Highlights

  • Gross and net written premiums growth of 108.8% and 46.1% in Q1, supported by continued momentum in our US operations and continued growth in Canada.
  • Net income of $8.4 million vs. $2.5 million in Q1 2019, driven by strong underwriting performance and investment income in Canada, and growing profitability in the US. We also recognized a gain related to the recognition of previously generated tax losses.
  • EPS of $0.94 in Q1 2020, compared to $0.37 in Q1 2019.
  • Book value per share of $21.23, a 1.6% decrease from $21.58 at December 31, 2019 as a result of unrealized losses in the investment portfolio.
  • Industry-leading results from our Canadian business, achieving a combined ratio of 82.0% in the current quarter vs. 83.5% in Q1 2019, and producing a 19.3% LTM ROE.
  • Continued acceleration in our US. operations, producing $120.7 million in GPW in the quarter vs. $41.9 million in Q1 2019; $2.6 million in net income, and a 9.3% LQA ROE demonstrate the potential of our maturing platform.
  • Increased our revolving credit facility capacity to $50.0 million, at consistent pricing, with the ability to draw proceeds in Canadian or US dollars.  Debt-to-capital ratio was 15.3% at March 31, 2020, below our long-term target of 20.0%.

COVID-19

  • Preliminary results for the month of April have demonstrated resilience, however Q2 2020 premium generation and claims activity may be impacted by the length and depth of the pandemic-related economic slowdown, as well as the effectiveness of government support programs. Depending on these factors, premium growth could slow and claims activity could increase.
  • The most direct financial impact observed during the quarter related to COVID-19 was the mark-to-market volatility in our investment portfolio.
  • In April, we did not observe a significant impact on underwriting results; our policies generally do not provide pandemic coverage and many surety bonds are focused on infrastructure projects deemed essential.
  • Trisura employees are working effectively from home.

Underwriting

  • Disciplined underwriting from our Canadian operations, achieving a loss ratio of 24.3% in the quarter, supported by strong underwriting across all lines. Improvements in expense ratio driven by operational efficiency resulted in a combined ratio of 82.0%
  • Accelerating growth in our US platform, with GPW of $120.7 million in Q1 2020 compared to $95.4 million in Q4 2019, and fee income of $4.1 million in Q1 2020 compared to $3.1 million in Q4 2019.
  • Improved asset-liability matching in our international reinsurance operations limited volatility in the quarter.

Capital

  • The minimum capital test (“MCT”) ratio of our Canadian operations was 233% (258% as at December 31, 2019), which comfortably exceeded regulatory requirements of 150%.
  • Trisura US’s capital of $81.3 million USD as at March 31, 2020 ($83.3 million USD as at December 31, 2019) was in excess of the minimum requirement of the Oklahoma Insurance Department.
  • Trisura International’s capital of $13.0 million USD as at March 31, 2020 ($14.2 million USD as at December 31, 2019) was greater than the FSC’s regulatory capital requirement.
  • Consolidated debt-to-capital ratio of 15.3% as at March 31, 2020 is below our long-term target of 20.0%.

Investments

  • In Q1 2020, net investment income of $8.5 million compared to $4.3 million in Q1 2019. The improvement was driven by an increase in interest and dividend income in North America, as well as longer duration reinsurance assets, which generated strong results in a declining interest rate environment.
  • In Canada, interest and dividend income increased 28.1% in Q1 2020, over Q1 2019, as we continued to benefit from an improved asset mix.
  • In the US, interest and dividend income increased 41.2% in Q1 2020, over Q1 2019, as we benefited both from diversification of the portfolio and increased capital following our equity raise in September 2019.
    European rates fell in Q1 2020, which resulted in net investment gain of $5.5 million in Trisura International, offset by reserve increases.
  • Other comprehensive (loss) income was negatively impacted by unrealized losses in the preferred share and equity portfolios in both Canada and the US, stemming from the sell-off related to the COVID-19 pandemic.
  • Foreign exchange differences, arising from the translation of financial statements of our US and International operations, provided a benefit in the quarter. We have initiated a hedging program to mitigate future currency-related volatility.

Corporate Development

  • Following the close of the acquisition of Trisura Insurance Company (formerly known as 21st Century Preferred Insurance Company) on November 1, 2019, Trisura continues to grow its capabilities with the intention of securing admitted licenses in all 50 states.

About Trisura Group

Trisura Group Ltd. is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated subsidiaries: Trisura Guarantee Insurance Company in Canada, Trisura Specialty Insurance Company in the US and Trisura International Insurance Ltd. in Barbados. Trisura Group is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at http://www.trisura.com/group. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at www.sedar.com.

For more information, please contact:
Name: Bryan Sinclair
Tel: 416 607 2135
Email: bryan.sinclair@trisura.com

Trisura Group Ltd.
Consolidated Statements of Financial Position
As at March 31, 2020 and December 31, 2019
(in thousands of Canadian dollars, except as otherwise noted)

Trisura Group Ltd.
Consolidated Statements of Comprehensive (Loss) Income
For the three months ended March 31
(in thousands of Canadian dollars, except as otherwise noted)

Trisura Group Ltd.
Consolidated Statements of Cash Flows
For the three months ended March 31
(in thousands of Canadian dollars, except as otherwise noted)

Cautionary Statement Regarding Forward-Looking Statements and Information  

Note: Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Trisura Group, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

 Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Trisura Group to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

 Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada.

 We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Trisura Group undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

TRISURA GROUP REPORTS FOURTH QUARTER AND 2019 ANNUAL RESULTS

TORONTO, February 12, 2020 — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance provider, today announced financial results for the fourth quarter and year ended December 31, 2019.

David Clare, President and CEO of Trisura, stated, “We are pleased with Trisura’s fourth quarter results, generating net income of $4.2 million driven by strong performance from our specialty platforms in North America.

In Canada, substantial top-line growth, disciplined underwriting and enhanced investment returns sustained our industry leading return on equity. Our U.S. platform continued to build momentum, binding almost $100 million of quarterly gross premiums, and generating net income of $1.5 million to add to its first year of profitability.

Importantly, improved asset-liability matching in our international reinsurance operations limited volatility in Q4.”

Highlights

  • Gross and net premiums growth of 109.8% and 27.5% in Q4, and 104.7% and 23.5% for the full year supported by strong momentum in our U.S. business and continued growth in Canada.
  • Net income of $4.2 million in the quarter, and $5.1 million in 2019, driven by strong underwriting performance and investment income in Canada and a growing contribution from the U.S.
  • EPS of $0.47 in Q4 2019 and $0.69 in 2019, compared to $0.24 in Q4 2018 and 1.29 in 2018.
  • Book value per share of $21.58, a 9.9% increase over December 31, 2018.
  • Industry-leading results from our Canadian business, achieving a combined ratio of 9% in Q4 2019 and 87.8% in 2019, producing a 19.1% ROE for the year.
  • Continued acceleration in our U.S. business, producing $95.4 million in GPW in the quarter and $1.5 million in net income. For the year, GPW of $263.9 million drove fee income of $8.0 million and net income of $3.8 million representing our first year of profitability. This is an outstanding result considering the business commenced last year.
  • In February 2020, A.M. Best assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Trisura Insurance Company (“TIC”). The ratings of TIC also reflect an intercompany pooling agreement with its immediate parent, Trisura Specialty. TIC will commence writing admitted business in 2020 complementing Trisura Specialty’s non admitted business platform.

Underwriting

  • Disciplined underwriting from our Canadian operations, achieving NPE growth of 19.2% and a combined ratio of 82.9% in the quarter, 14.4% and 87.8% respectively for the full year 2019, supported by strong underwriting across all lines.
  • Accelerating growth in our U.S. platform, with GPW of $95.4 million in Q4 2019 compared to $71.2 million in Q3 2019. Annual GPW of $263.9 million increased from $53.7 million in 2018. Earned fee income in Q4 2019 of $3.1 million helped support annual earned fee income of $8.0 million, compared to $2.4 million in Q3 2019 and $0.9 million in 2018.
  • Weakening interest rates in Europe drove reserve strengthening in our reinsurance subsidiary in the first nine months of 2019; however, the impact to net income in Q4 2019 was muted following an improvement in the asset-liability matching.

Capital

  • The minimum capital test (“MCT”) ratio of our Canadian subsidiary was 258% (239% as at December 31, 2018), which comfortably exceeds regulatory requirements of 150%.
  • Trisura Specialty’s capital of $83.3 million USD as at December 31, 2019 ($48.8 million USD as at December 31, 2018) was in excess of the minimum requirement of the Oklahoma Insurance Department.
  • Trisura International’s capital of $14.2 million USD as at December 31, 2019 ($21.1 million USD as at December 31, 2018) was sufficient to meet the FSC’s regulatory capital requirement.
  • Consolidated debt-to-capital ratio of 13.5% as at December 31, 2019 is below our long- term target of 20%.
  • A.M. Best reaffirmed the Financial Strength Rating A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Trisura Guarantee and Trisura Specialty. The outlook of these Credit Ratings remains stable.

Investments

  • In 2019, net investment income of $16.2 million compared to $9.0 million in 2018, driven by an increase in duration of reinsurance assets, which generated strong results in a declining interest rate environment through the first nine months of 2019.
  • In Canada, interest and dividend income increased 8.9% in Q4 2019 and 42.8% for the full year, over the prior period, as we continued to benefit from an improved asset mix in the Canadian portfolio.
  • In the U.S., interest and dividend income increased 43.0% in Q4 2019 and 28.2% for the full year, over the prior period, as we benefited both from diversification of the portfolio and increased capital following our equity raise in September.
  • We continued to deploy capital into long-dated European government bonds, which has further improved our asset liability matching, as well as increasing our expected interest income. European rates rose in Q4 2019, which resulted in net investment loss of ($6.6) million in Trisura International, importantly offset by reserve reductions.

Corporate Development

  • Following the close of the acquisition of TIC (formerly known as 21st Century Preferred Insurance Company) on November 1, 2019, Trisura continues to grow its capabilities with the intention of securing admitted licenses in all 50 states.

About Trisura Group

Trisura Group Ltd. is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated subsidiaries: Trisura Guarantee Insurance Company in Canada, Trisura Specialty Insurance Company in the U.S. and Trisura International Insurance Ltd. in Barbados. Trisura Group is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at http://www.trisura.com/group.Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at www.sedar.com.

For more information, please contact:
Name: Bryan Sinclair
Tel: 416 607 2135
Email: bryan.sinclair@trisura.com

Trisura Group Ltd.
Consolidated Statements of Financial Position
As at December 31, 2019 and December 31, 2018
(in thousands of Canadian dollars, except as otherwise noted)

Trisura Group Ltd.
Consolidated Statements of Comprehensive Income
For the three and twelve months ended December 31
(in thousands of Canadian dollars, except as otherwise noted)

Trisura Group Ltd.
Consolidated Statements of Cash Flows
For the three and twelve months ended December 31
(in thousands of Canadian dollars, except as otherwise noted)

Cautionary Statement Regarding Forward-Looking Statements and Information  

Note: Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Trisura Group, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

 Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Trisura Group to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

 Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada.

 We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Trisura Group undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Archive