NEWS

Press Release

TRISURA GROUP TO ANNOUNCE THIRD QUARTER 2021 RESULTS ON NOVEMBER 4th, 2021 AND HOLD EARNINGS CONFERENCE CALL THE FOLLOWING DAY

TORONTO, October 4, 2021 — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance provider, will release its third quarter 2021 results after the market closes on Thursday, November 4th, 2021.

The company will hold its third quarter 2021 earnings conference call for analysts and investors on Friday, November 5th, 2021 at 9:00 a.m. ET.

Conference call participants will be David Clare, President and Chief Executive Officer and David Scotland, Chief Financial Officer.

To listen to the call via live audio webcast, please follow the link below:
https://edge.media-server.com/mmc/p/kexmtwwd

A replay of the call will be available through the link above.

About Trisura Group

Trisura Group Ltd. is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance, fronting 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 Ltd. 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 Ltd. 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 REPORTS SECOND QUARTER 2021 RESULTS

TORONTO, Aug 4, 2021 — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance provider, today announced financial results for the second quarter of 2021.

David Clare, President and CEO of Trisura, stated, “Trisura maintained its momentum through the second quarter of 2021 with net income of $16.9 million, an increase of 156.4% over the prior year. Net income YTD of $36.2 million has surpassed net income for the full year in 2020. Strong underwriting performance and premium growth, supported by investment gains, contributed to an 18.3% return on equity, exceeding our mid-teens target ahead of plan.

Premium growth was significant, increasing 79.4% over the prior year, while disciplined underwriting contributed to a strong 83.3% combined ratio in the Canadian operations. There was a sustained expansion of our US business, which bound $220.6 million of gross premiums, and drove $6.9 million in net income.

We successfully completed our inaugural investment grade debt issuance, with proceeds used to repay short term debt and support growth in the US. Our balance sheet remains well-funded to support future growth with a debt-to-capital ratio of 18.4%.”

Highlights

  • EPS of $0.40 in Q2 2021 compared to $0.17 in Q2 2020. Q2 2021 Adjusted EPS of $0.35 compared to $0.22 in Q2 2020. EPS figures reflect the four-for-one stock split effective July 9, 2021.
  • Book value per share of $8.03, an increase of 22.4% from June 30, 2020, driven by strong earnings and unrealized gains in the investment portfolio.
  • Gross and net written premiums growth of 79.4% and 113.7% in Q2 2021 was supported by growth in Canada and continued momentum in US fronting.
  • Quarterly net income of $16.9 million grew 156.4% compared to prior year, driven by strong growth and underwriting in Canada, growing profitability in the US, improved asset liability matching in our Reinsurance business and investment gains.
  • ROE of 18.3% compared to 11.8% in Q2 2020, meeting our mid-teens target despite dilution from our equity raise in May 2020, and achieved in the context of significant growth.
  • GPW in Canada increased by 147.3% in Q2 2021. Strong underwriting performance across all lines contributed to an 83.3% combined ratio and a 27.0% ROE.
  • New fronted premiums in Canada contributed $55.5 million YTD and $3 million in the quarter, an encouraging start for the business.
  • US premium and fee income growth of 52.3% and 101.0% respectively, reached $220.6 million and $11.1 million in the quarter. This contributed to improved net income of $6.9 million and a 14.0% ROE despite an increase in the capital base. Premium growth mitigated from Q1 to Q2 2021 as we did not renew two programs, and the USD weakened. On a constant currency basis, quarterly premiums increased in Q2 over Q1 2021.
Amounts in C$ millions Q2 2021 Q2 2020 Variance Q2 2021 YTD Q2 2020 YTD Variance
Gross premiums written       363.5     202.7 79.4%        673.8       372.6 80.8%
Net income         16.9         6.6 156.4%          36.2        15.0 142.1%
EPS – diluted, $(1)         0.40          0.17 135.3%          0.86           0.40 115.0%
Adjusted EPS – diluted, $(1)         0.35          0.22 59.1%          0.75           0.44 70.5%
Book value per share, $(1)         8.03 6.56 22.4%          8.03 6.56 22.4%
Debt-to-Capital ratio 18.4% 9.9% 8.5pts 18.4% 9.9% 8.5pts
LTM ROE 18.3% 11.8% 6.5pts 18.3% 11.8% 6.5pts
Adjusted LTM ROE 16.1% 13.8% 2.3pts 16.1% 13.8% 2.3pts
Combined ratio – Canada 83.3% 78.9% 4.4pts 75.4% 80.3% (4.9pts)
Fronting Operational Ratio – US 69.8% 69.9% (0.1pts) 68.6% 69.6% (1.0pts)

COVID-19

  • Trisura staff continue to work effectively from home. We have introduced safety measures in physical offices and began a gradual return to work in jurisdictions where it is safe.
  • Despite resilience in the quarter, uncertainty regarding the COVID-19 Delta variant and the potential for a weaker than anticipated economic recovery may threaten momentum.
  • 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 and vaccines in driving a sustained re-opening. Depending on these factors, premium growth could slow and claims activity could increase.

Insurance Operations

  • Disciplined underwriting in Canada contributed to a loss ratio of 24.5% for the quarter. A lower expense ratio in the quarter resulted in a combined ratio of 83.3%, in the context of 147.3% growth in premiums.
  • GPW in the US of $220.6 million in Q2 2021 compared to $144.8 million in Q2 2020, and fee income of $11.1 million in Q2 2021 compared to $5.5 million in Q2 2020.
  • Improved asset-liability matching in our Reinsurance business limited volatility through the quarter.

Capital

  • The minimum capital test (“MCT”) ratio of our Canadian operations was 223% as at June 30, 2021 (249% as at December 31, 2020), which comfortably exceeded regulatory requirements of 150%.
  • Capital in our US operations of $159.1 million USD at June 30, 2021 ($122.6 million USD at December 31, 2020) was in excess of the various Company Action Levels of the states in which Trisura Specialty is licensed.
  • Consolidated debt-to-capital ratio of 18.4% as at June 30, 2021 is below our long-term target of 20.0%.

Investments

  • Investment income was $2.8 million in Q2 2021, driven by interest and dividend income and partially offset by the impact of movements in European interest rates on the long duration assets supporting certain reserves in our Reinsurance business. Importantly, Reinsurance investment losses are offset by reductions in reserves in the Reinsurance business.
  • Interest and dividend income rose 24.4% versus the prior year. The Canadian and US portfolios benefited from improved diversification and increased capital following strong operational performance.
  • Net gains in the quarter were driven by favourable foreign exchange movements and realized gains.

Corporate Development

  • Trisura continues to grow its admitted licenses, with 48 state admitted licenses today and the intention of securing admitted licenses in all 50 states.
  • In the quarter Trisura bound $11.3 million in admitted premiums; we expect the admitted business to be a more significant opportunity for growth in the second half of 2021.
  • In June 2021, Trisura completed its inaugural investment grade debt issuance, raising $75 million of senior unsecured notes with a 5-year term and a coupon of 2.641%. Proceeds were used to repay the outstanding loans through the revolving credit facility and to support growth in the US.
  • We completed a four-for-one stock split in July 2021, which resulted in a greater number of shares outstanding, intended to support trading liquidity.

Financial Statement Presentation – Update

  • In Q4 2020 we adjusted the presentation of our consolidated income statement to reflect a more representative view of our business, removing net underwriting income, which in the context of a business with life reserves on the Balance sheet, diluted the utility of the measure.
  • Adjusted EPS and Adjusted ROE were also introduced in Q4 2020, to adjust for non-recurring items and better reflect earnings for our core operations, providing a more representative depiction of the run-rate operations of the business.

Earnings Conference Call

Trisura will host its Second Quarter Earnings Conference Call to review financial results at 9:00 a.m. ET on Thursday August 5th, 2021.

To listen to the call via live audio webcast, please follow the link below:

https://edge.media-server.com/mmc/p/jhhdm9rq

A replay of the call will be available through the link above.

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.
Condensed Interim Consolidated Statements of Financial Position
As at June 30, 2021 and December 31, 2020
(in thousands of Canadian dollars, except as otherwise noted)

As at June 30, 2021 December 31, 2020
Cash and cash equivalents 172,817 136,519
Investments 611,279 503,684
Premiums and accounts receivable, and other assets 249,315 178,883
Recoverable from reinsurers 903,086 676,972
Deferred acquisition costs 241,507 188,190
Capital assets and intangible assets 17,766 13,907
Deferred tax assets 7,690 8,577
Total assets 2,203,460 1,706,732
Accounts payable, accrued and other liabilities 73,171 57,343
Reinsurance premiums payable 232,347 151,707
Unearned premiums 744,767 592,711
Unearned reinsurance commissions 116,715 100,281
Unpaid claims and loss adjustment expenses 631,406 487,271
Debt outstanding 74,429 27,555
Total liabilities 1,872,835 1,416,868
Shareholders’ equity 330,625 289,864
Total liabilities and shareholders’ equity 2,203,460 1,706,732

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

  Q2 2021 Q2 2020 Q2 2021 YTD Q2 2020 YTD
Gross premiums written  363,514  202,683  673,788  372,635
Net premiums written  100,200  46,881  177,565  88,381
Net premiums earned  67,028  36,776  119,652  67,343
Fee income  12,112  5,867  25,896  13,408
Net investment income (loss)  2,780  6,308  (2,537)  14,842
Net gains  4,801  3,504  8,635  1,450
Total revenues  86,721  52,455  151,646  97,043
Net claims and loss adjustment expenses  (21,390)  (15,961)  (25,497)  (30,147)
Net commissions  (26,330)  (12,138)  (44,889)  (23,371)
Operating expenses  (19,737)  (14,753)  (36,751)  (26,838)
Interest expense  (281)  (267)  (468)  (667)
Total claims and expenses  (67,738)  (43,119)  (107,605)  (81,023)
Income before income taxes  18,983  9,336  44,041  16,020
Income tax expense  (2,094)  (2,749)  (7,834)  (1,062)
Net income  16,889  6,587  36,207  14,958
Other comprehensive income (loss)  3,835  8,828  4,597  (2,542)
Comprehensive income  20,724  15,415  40,804  12,416

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

  Q2 2021 Q2 2020 Q2 2021 YTD Q2 2020 YTD
Net income from operating activities       16,889         6,587        36,207           14,958
Non-cash items        (1,494)         9,184          9,187             7,371
Stock options granted            344            228            605                380
Change in working capital       69,950       14,485        72,403           13,946
Realized gains on investments           (611)      (14,377)         (1,481)          (17,198)
Income taxes paid        (5,996)              (8)         (7,187)            (3,287)
Interest paid           (107)           (259)           (357)               (695)
Net cash from operating activities       78,975       15,840      109,377           15,475
Proceeds on disposal of investments       23,436     113,202        60,280         140,264
Purchases of investments     (104,742)    (175,157)     (174,677)        (208,926)
Net purchases of capital and intangible assets        (1,669)           (135)         (2,525)               (506)
Net cash used in investing activities      (82,975)      (62,090)     (116,922)          (69,168)
Shares issued            602       65,143            859           65,143
Shares purchased under RSU plan           (116)                –         (1,930)                    –
Issuance of note payable       74,700                –        74,700                    –
Loans received                –                –        26,970           32,700
Loans repaid      (26,970)        (3,000)       (54,525)          (32,700)
Lease payments           (354)           (398)           (688)               (878)
Net cash from financing activities       47,862       61,745        45,386           64,265
Net increase in cash       43,862       15,495        37,841           10,572
Cash at beginning of the period      129,649       84,352      136,519           85,905
Currency translation           (694)           (682)         (1,543)             2,688
Cash at the end of the period      172,817       99,165      172,817           99,165

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, the Company 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 FOUR FOR ONE SPLIT OF ITS COMMON SHARES

Toronto, June 23, 2021 – Trisura Group Ltd. (“Trisura”, or the “Company”) (TSX:TSU), a leading international specialty insurance company, announced today that its Board of Directors approved a four-for-one split of Trisura’s outstanding common shares (the “shares”). The share split will be implemented by way of a subdivision whereby shareholders receive an additional three shares for each share held. The Company’s shareholders approved the share split at the annual and special meeting of shareholders held on May 26, 2021.

On July 9, 2021, the additional shares required to give effect to the share split will be issued to holders of record at the close of business on June 30, 2021. The share split will not change the rights of holders of shares and will not change a shareholder’s proportionate ownership in Trisura.

Trisura’s shares will begin trading with “due bills” on the Toronto Stock Exchange (“TSX”) at the opening of business on Monday, June 29, 2021 (one trading day before the record date) until Friday July 9, 2021 (the payment date), inclusively. During such period, anyone who purchases shares on the TSX will receive the entitlement to be issued additional shares pursuant to the share split. The shares will commence trading on an “ex-dividend” (post-split) basis on the TSX at the opening of business on Monday, July 12, 2021.

Shareholders do not need to take any action. Currently outstanding share certificates representing the shares will continue to be effective. They should be retained by shareholders and should not be forwarded to Trisura or AST Trust Company (Canada) (“AST”). Trisura will use the direct registration system (“DRS”) to electronically register the shares issued pursuant to the share split, rather than issuing physical share certificates. On or about July 9, 2021, AST will mail DRS advice statements to registered shareholders indicating the number of additional shares that they are receiving as a result of the share split. Non-registered (beneficial) shareholders who hold their shares in an account with their investment dealer or other intermediary will have their accounts automatically updated to reflect the share split in accordance with the applicable brokerage account providers’ usual procedures.

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$75 MILLION SENIOR UNSECURED NOTES OFFERING

Not for distribution to U.S. news wire services or dissemination in the United States.

Toronto, June 8, 2021 – Trisura Group Ltd. (“Trisura”, or the “Company”) (TSX:TSU), a leading international specialty insurance company, announced today that it intends to issue $75 million principal amount of senior unsecured notes (the “Notes”). The Notes will be direct unsecured obligations of Trisura and will rank equally with all other unsecured and unsubordinated indebtedness of Trisura. The Notes will bear interest at a fixed annual rate of 2.641% until maturity on June 11, 2026.

The Company intends to use the net proceeds from this offering of notes for general corporate purposes and short-term debt reduction.

The Notes will be offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation and are rated BBB, with a stable trend by DBRS Morningstar. The Notes will be sold on an agency basis by a syndicate of dealers led by BMO Capital Markets as sole-bookrunner, together with CIBC Capital Markets, National Bank Financial Markets, RBC Capital Markets, Scotia Capital, and TD Securities as co-managers. Closing of the offering of the Notes is expected to occur on June 11, 2021, subject to customary closing conditions.

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 ANNOUNCES RESULTS OF ANNUAL MEETING OF SHAREHOLDERS

TORONTO, May 27, 2021 – Trisura Group Ltd. (“Trisura Group” or the “Company”) (TSX: TSU) today announced the results of the Company’s annual meeting of shareholders held on May 26, 2021 in Toronto (the “Meeting”).

At the Meeting, all six nominees proposed for election to the Board by Shareholders were elected. Management received the following proxies from Shareholders in regard to the election of directors:

Director Nominee

Votes For

      %

Votes Withheld

  %

David Clare

7,041,798

99.65%

24,394

0.35%

Paul Gallagher

6,735,192

95.32%

331,000

4.68%

Barton Hedges

7,050,789

99.78%

15,403

0.22%

Greg Morrison

7,041,333

99.65%

24,859

0.35%

George E. Myhal

4,321,823

61.16%

2,744,369

38.84%

Robert Taylor

6,220,100

88.03%

846,092

11.97%

* * * * *

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 REPORTS FIRST QUARTER 2021 RESULTS

TORONTO, May 5, 2021 — Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance provider, today announced financial results for the first quarter of 2021.

David Clare, President and CEO of Trisura, stated, “Trisura’s momentum continued in the first quarter of 2021, with net income of $19.3 million, an increase of 130.8% over the prior year. Strong underwriting performance and premium growth, supported by investment gains, contributed to a 16.1% return on equity, meeting our mid-teens target ahead of plan.

Premium growth was significant, increasing 82.6% over the prior year, while disciplined underwriting in Canada contributed to an industry-leading 65.3% combined ratio. Our US business sustained its trajectory of growth, binding a new record $224.7 million of gross premiums, and generating $6.4 million in net income. Reinsurance contributed to earnings through appropriate asset liability matching.

Our balance sheet is well-funded to support future growth, with flexibility afforded by our 8.0% debt-to-capital ratio and a newly achieved investment grade rating.”

Highlights

  • EPS of $1.84 in Q1 2021 compared to $0.94 in Q1 2020.
  • Book value per share of $30.04, an increase of 6.4% from December 31, 2020, driven by strong earnings.
  • Gross and net written premiums growth of 82.6% and 86.4% in Q1 2021 was supported by continued momentum in US fronting and growth in Canada.
  • Quarterly net income of $19.3 million grew 130.8% compared to prior year, driven by strong growth and underwriting in Canada, growing profitability in the US, improved asset liability matching in our Reinsurance business and investment gains.
  • ROE of 16.1% compared to 6.8% in Q1 2020, meeting our mid-teens target despite dilution from our equity raise in May 2020, and achieved in the context of significant growth.
  • GPW in Canada increased by 73.7% in Q1 2021. Strong underwriting performance across all lines contributing to a 65.3% combined ratio and a 27.4% ROE.
  • US premium and fee income growth, which reached $224.7 million and $9.5 million in the quarter, contributed to improved net income of $6.4 million and a 13.2% ROE despite an increase in the capital base.

Amounts in C$ millions

Q1 2021

Q1 2020

Variance

Gross premiums written

      310.3

170.0

82.6%

Net income

19.3

8.4

130.8%

EPS – diluted, $

1.84

0.94

95.7%

Adjusted EPS – diluted, $

1.62

0.86

88.4%

Book value per share, $

30.04

21.23

41.5%

Debt-to-Capital ratio

8.0%

15.3%

  (7.3pts)

ROE

16.1%

6.8%

9.3pts

Adjusted ROE

15.8%

11.9%

3.9pts

Combined ratio – Canada

65.3%

82.0%

(16.7pts)

Fronting operational ratio – US

67.2%

69.3%

(2.1pts)

COVID-19

  • Trisura staff continue to work effectively from home. We have introduced safety measures in physical offices and began a gradual return to work in jurisdictions where it is safe.
  • Despite resilience in the quarter, a recent third wave globally and the potential for a weaker than anticipated economic recovery may threaten momentum.
  • 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 and vaccines in driving a sustained re-opening. Depending on these factors, premium growth could slow and claims activity could increase.

Insurance Operations

  • Disciplined underwriting in Canada contributed to a loss ratio of 13.3% for the quarter. The lower loss ratio as well as a lower expense ratio in the quarter resulted in a combined ratio of 65.3%, in the context of 73.7% growth in premiums.
  • GPW in the US of $224.7 million in Q1 2021 compared to $120.7 million in Q1 2020, and fee income of $9.5 million in Q1 2021 compared to $4.1 million in Q1 2020.
  • Improved asset-liability matching in our Reinsurance business limited volatility through the quarter.

Capital

  • The minimum capital test (“MCT”) ratio of our Canadian operations was 254% as at March 31, 2021 (249% as at December 31, 2020), which comfortably exceeded regulatory requirements of 150%.
  • Capital in our US operations of $126.6 million USD at March 31, 2021 ($122.6 million USD at December 31, 2020) was in excess of the various Company Action Levels of the states in which Trisura Specialty is licensed.
  • Consolidated debt-to-capital ratio of 8.0% as at March 31, 2021 is below our long-term target of 20.0%.

Investments

  • Investment loss was $5.3 million in Q1 2021, driven by the impact of movements in European interest rates on the long duration assets supporting certain reserves in our Reinsurance business. Importantly, these investment losses are offset by reductions in reserves in the Reinsurance business.
  • In Canada and the US, interest and dividend income rose 2.3% versus the prior year. The US portfolio benefited from improved diversification after rebalancing through COVID-related volatility, and increased capital following the equity raise in May 2020.
  • Net gains were greater in Q1 2021 as a result of gains in our share-based compensation hedging program and favourable foreign exchange movements.

Corporate Development

  • Trisura continues to grow its admitted licenses, with 48 state admitted licenses today and the intention of securing admitted licenses in all 50 states.
  • In the quarter Trisura bound $7.6 million in admitted premiums; we expect the admitted business to be a more significant opportunity for growth in the second half of 2021.
  • In March 2021, DBRS Morningstar assigned Trisura Canada and Trisura US a Financial Strength Rating of A (low), and Trisura Group Ltd. an Issuer Rating of BBB.

Financial Statement Presentation – Update

  • In Q4 2020 we adjusted the presentation of our consolidated income statement to reflect a more representative view of our business, removing net underwriting income, which in the context of a business with life reserves on the Balance sheet, diluted the utility of the measure.
  • Adjusted EPS and adjusted ROE were also introduced in Q4 2020, to adjust for non-recurring items and better reflect earnings for our core operations, providing a more representative depiction of the run-rate operations of the business.

Earnings Conference Call

 Trisura will host its inaugural Earnings Conference Call to review financial results at 9:00 a.m. ET on Thursday May 6th, 2021.

To listen to the call via live audio webcast, please follow the link below:

https://edge.media-server.com/mmc/p/bshtsh2a

A replay of the call will be available through the link above.

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.
Condensed Interim Consolidated Statements of Financial Position
As at March 31, 2021 and December 31, 2020
(in thousands of Canadian dollars, except as otherwise noted)

As at

March 31, 2021

December 31, 2020

Cash and cash equivalents

 129,649

 136,519

Investments

 524,393

 503,684

Premiums and accounts receivable, and other assets

211,078

178,883

Recoverable from reinsurers

784,381

676,972

Deferred acquisition costs

 215,880

 188,190

Capital assets and intangible assets

 14,356

 13,907

Deferred tax assets

 6,769

 8,577

Total assets

 1,886,686

 1,706,732

Accounts payable, accrued and other liabilities

 49,697

 57,343

Reinsurance premiums payable

 180,858

 151,707

Unearned premiums

 668,417

 592,711

Unearned reinsurance commissions

 106,675

 100,281

Unpaid claims and loss adjustment expenses

 545,307

 487,271

Loan payable

 26,970

 27,555

Total liabilities

 1,577,924

 1,416,868

Shareholders’ equity

 308,762

 289,864

Total liabilities and shareholders’ equity

1,886,686

1,706,732

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

 

Q1 2021

Q1 2020

Gross premiums written

 310,274

 169,952

Net premiums written

 77,365

 41,500

Net premiums earned

 52,624

 30,567

Fee income

 13,784

 7,541

Net investment (loss) income

 (5,317)

8,534

Net gains (losses)

 3,834

(2,054)

Total revenues

 64,925

44,588

Net claims and loss adjustment expenses

 (4,107)

 (14,186)

Net commissions

 (18,559)

 (11,233)

Operating expenses

 (17,014)

 (12,085)

Interest expense

 (187)

 (400)

Total claims and expenses

 (39,867)

 (37,904)

Income before income taxes

 25,058

 6,684

Income tax (expense) benefit

 (5,740)

 1,687

Net income

 19,318

 8,371

Other comprehensive income (loss)

 762

 (11,370)

Comprehensive income (loss)

 20,080

 (2,999)

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

 

Q1 2021

Q1 2020

Net income from operating activities

       19,318

        8,371

Non-cash items

       10,681

       (1,813)

Stock options granted

           261

           152

Change in working capital

2,453

          (539)

Realized gains on investments

          (870)

       (2,821)

Income taxes paid

       (1,191)

       (3,279)

Interest paid

          (250)

          (436)

Net cash from (used in) operating activities

       30,402

          (365)

Proceeds on disposal of investments

       36,844

      27,062

Purchases of investments

     (69,935)

     (33,769)

Net purchases of capital and intangible assets

          (856)

          (371)

Net cash used in investing activities

     (33,947)

       (7,078)

Shares issued

           257

               –

Shares purchased under the restricted share units plan

(1,814)

Loans received

       26,970

      32,700

Repayment of loan payable

     (27,555)

     (29,700)

Lease payments

          (334)

          (480)

Net cash (used in) from financing activities

          (2,476)

        2,520

Net decrease in cash and cash equivalents

       (6,021)

       (4,923)

Cash and cash equivalents, beginning of period

     136,519

      85,905

Currency translation

          (849)

        3,370

Cash and cash equivalents, end of period

     129,649

      84,352

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, the Company 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.

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