20:47:01 EDT Sun 25 Aug 2019
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Trisura Group Ltd
Symbol C : TSU
Shares Issued 6,621,680
Close 2019-02-14 C$ 26.75
Recent Sedar Documents

Trisura earns $8.63-million in 2018

2019-02-15 01:52 ET - News Release

Mr. Bryan Sinclair reports

TRISURA GROUP REPORTS FOURTH QUARTER AND 2018 ANNUAL RESULTS

Trisura Group Ltd. has released financial results for the fourth quarter and year ended Dec. 31, 2018.

David Clare, chief executive officer of Trisura, stated: "We are very pleased with our fourth quarter and full-year results for 2018. Strong underwriting and top-line growth continued for our Canadian subsidiary, yielding industry-leading returns. We continue to build momentum in our U.S. fronting platform, binding 14 programs and generating over $50-million in gross premiums written in 2018."

Highlights:

  • Gross premium written growth of 77 per cent in fourth quarter 2018 and 49 per cent in full-year 2018, driven by continued growth in the company's Canadian specialty P&C business and strong momentum in the company's U.S. specialty business;
  • Net income in fourth quarter 2018 of $1.6-million, an increase of $1.7-million over fourth quarter 2017, and full-year income of $8.6-million, an increase of $3.8-million (excluding minority interests) over 2017, driven by the company's Canadian specialty P&C business;
  • Consolidated return on equity (trailing 12 months) of 6.9 per cent at Dec. 31, 2018, compared with 5.6 per cent at Sept. 30, 2018, and 4.1 per cent at June 30, 2018;
  • Strong fourth quarter and full-year results from the company's Canadian specialty P&C business, achieving an 83.9-per-cent combined ratio in fourth quarter and an 86.3-per-cent combined ratio for the full year, driving a 19.1-per-cent ROE for the trailing 12 months;
  • Basic and diluted earnings per share of 24 cents in fourth quarter 2018 and $1.29 (basic) and $1.27 (diluted) in full-year 2018;
  • Book value per share of $19.63, a 7.0-per-cent increase over December, 2017.

                                       FINANCIAL HIGHLIGHTS
                                (amounts in millions of dollars)

                                                 Q4 2018       Q4 2017       Q4 2018 YTD       Q4 2017 YTD

Gross premiums written                             $68.3         $38.7            $219.0            $146.8
Net premiums written                                31.1          26.4             115.5              99.6
Net underwriting income (loss)                       1.0          (0.5)              4.3               3.6
Net investment income                                2.8           1.0              10.5               5.4
Net income (loss)                                    1.6          (0.1)              8.6              (0.3)
EPS -- basic, $                                     0.24         (0.01)             1.29              0.37*
EPS -- diluted, $                                   0.24         (0.01)             1.27              0.37*
Book value per share, $                            19.63         18.35             19.63             18.35
Debt to capital ratio                               18.6%         19.6%             18.6%             19.6%
ROE trailing 12 months (TTM)                         6.9%          3.9%              6.9%              3.9%
Combined ratio -- Canadian specialty P&C            83.9%         93.7%             86.3%             88.9%
Canadian specialty P&C ROE -- TTM                   19.1%         13.7%             19.1%             13.7%

* For period from June 22, 2017, to Dec. 31, 2017 -- that is, after spinoff from Brookfield Asset 
Management Inc.

Underwriting:

  • Excellent performance from the company's Canadian specialty P&C insurance operations, in particular surety, achieving a 2018 ROE (trailing 12 months) of 19.1 per cent and combined ratios of 83.9 per cent in fourth quarter 2018 and 86.3 per cent in full-year 2018;
  • Continued strong premium growth in the company's Canadian specialty P&C business, increasing GPW by 6.3 per cent in fourth quarter and 12.7 per cent for the full year driven by risk solutions and corporate insurance;
  • Strong and accelerating premium growth in the company's U.S. specialty platform, with GPW of $27.2-million in fourth quarter 2018 and $53.7-million since commencing business in early 2018; the U.S. platform accounting for 74 per cent of premium growth in 2018.

Capital:

  • The minimum capital test (MCT) ratio of the company's Canadian subsidiary was 239 per cent as at Dec. 31, 2018 (255 per cent as at Dec. 31, 2017), which comfortably exceeds regulatory requirements of 150 per cent.
  • Trisura Specialty's capital and surplus of $66.5-million as at Dec. 31, 2018 ($56.5-million as at Dec. 31, 2017), were in excess of the minimum risk-based capital ratio requirement of the Oklahoma Insurance Department;
  • Trisura International's capital of $28.7-million as at Dec. 31, 2018 ($26.6-million as at Dec. 31, 2017), was sufficient to meet the FSC's regulatory capital requirement.
  • Consolidated debt to capital ratio of 18.6 per cent as at Dec. 31, 2018, is below the company's long-term target of 20 per cent.

Investments:

  • Net investment income of $2.8-million in fourth quarter 2018 compared with $1.0-million in fourth quarter 2017, and $10.5-million in full-year 2018 compared with $5.4-million in full-year 2017. Interest and dividend income increased for the year as the company continued to benefit from the deployed U.S. portfolio. In Canada, investment income reflected higher interest income and realized gains from rebalancing of the portfolio.

Ratings:

  • A.M. Best reaffirmed the financial strength rating of "A- (excellent)" of both the Canadian subsidiary, Trisura Guarantee, and the U.S. subsidiary, Trisura Specialty, with stable outlook.

About Trisura Group Ltd.

Trisura Group is an international specialty insurance holding company 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 United States and Trisura International Insurance Ltd. in Barbados.

                                                    
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)                 
                       FOR THE THREE AND 12 MONTHS ENDED DEC. 31                      
                  (in thousands of dollars, except as otherwise noted)          
                                                                       
                                        Q4 2018      Q4 2017      Q4 2018 YTD      Q4 2017 YTD

Gross premiums written                  $68,274      $38,689         $219,041         $146,763
Net premiums written                     31,114       26,439          115,475           99,615
Net premiums earned                      22,983       19,866           88,809           79,433
Fee income                                  675          127            4,724            3,400
Total underwriting revenue               23,658       19,993           93,533           82,833
Net claims                               (5,920)      (5,187)         (19,402)         (17,653)
Net commissions                          (6,545)      (5,195)         (29,903)         (24,882)
Premium taxes                            (1,278)      (1,227)          (4,758)          (4,463)
Operating expenses                       (8,934)      (8,913)         (35,184)         (32,279)
Net claims and expenses                 (22,677)     (20,522)         (89,247)         (79,277)
Net underwriting income (loss)              981         (529)           4,286            3,556
Net investment income                     2,829        1,007           10,457            5,411
Foreign exchange (losses) gains            (559)         103             (712)             (35)
Interest expense                           (261)        (197)            (970)          (1,009)
Change in minority interests                  -            -                -           (5,156)
Income before income taxes                2,990          384           13,061            2,767
Income tax expense                       (1,359)        (461)          (4,423)          (3,109)
Net income (loss)                         1,631          (77)           8,638             (342)
Other comprehensive income (loss)           152        1,141             (316)          (4,495)
Comprehensive income (loss)               1,783        1,064            8,322           (4,837)

We seek Safe Harbor.

© 2019 Canjex Publishing Ltd. All rights reserved.