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Trisura Group Ltd
Symbol TSU
Shares Issued 6,621,680
Close 2019-05-09 C$ 28.60
Recent Sedar Documents

Trisura earns $2.51-million in Q1

2019-05-09 17:01 ET - News Release

Mr. David Clare reports

TRISURA GROUP REPORTS FIRST QUARTER 2019 RESULTS

Trisura Group Ltd. has released financial results for the first quarter of 2019.

David Clare, chief executive officer of Trisura, stated: "Strong performance from both our Canadian and U.S. subsidiaries demonstrated continued progress on our strategic priorities in the first quarter. In Canada, robust top-line growth and underwriting profitability generated industry-leading returns on equity. Our U.S. platform produced over $41-million in gross premiums written, $1-million in fee income, generating its first profitable quarter."

Highlights:

  • Gross premiums written growth of 133.7 per cent in first quarter 2019, 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 first quarter 2019 of $2.5-million, an increase of $700,000 over first quarter 2018, driven by the company's Canadian specialty P&C business and supported by profitability from the company's U.S. specialty business;
  • Consolidated ROE (return on equity) (trailing 12 months) of 7.2 per cent at March 31, 2019, compared with 6.9 per cent at Dec. 31, 2018, and 5.6 per cent at Sept. 30, 2018;
  • Strong first quarter 2019 results from the company's Canadian specialty P&C business, achieving an 83.5-per-cent combined ratio, driving a 21.3-per-cent ROE for the trailing 12 months;
  • Basic and diluted EPS (earnings per share) of 38 cents and 37 cents in first quarter 2019, respectively, compared with 28 cents and 27 cents in first quarter 2018;
  • Book value per share of $20.41, a 9.3-per-cent increase over March 31, 2018.

                         FINANCIAL HIGHLIGHTS
                  (amounts in millions of dollars)
                                                   Q1 2019          Q1 2018

Gross premiums written                               $81.4            $34.8
Net premiums written                                  28.4             23.9
Net underwriting (loss) income                        (8.3)             1.2
Net investment income                                  4.6              1.9
Net income                                             2.5              1.9
EPS -- basic, $                                       0.38             0.28
EPS -- diluted, $                                     0.37             0.27
Book value per share, $                              20.41            18.68
Debt to capital ratio                                 18.0%            19.4%
ROE trailing 12 months (TTM)                           7.2%             4.6%*
Combined ratio -- Canadian specialty P&C              83.5%            83.6%
Canadian specialty P&C ROE -- TTM                     21.3%            14.5%

* For period after spinoff from Brookfield Asset Management Inc. on 
June 22, 2017 (annualized).

Underwriting:

  • Excellent performance from the company's Canadian specialty insurance operations, achieving GPW growth of 17.8 per cent driven by risk solutions and surety and an 83.5-per-cent combined ratio driven by strong results in surety and improved claims experience in corporate insurance;
  • Strong and accelerating premium growth in the company's U.S. specialty platform, with GPW of $41.9-million in first quarter 2019 compared with $53.7-million in fiscal 2018; earned fee income of $1-million helped support the company's first profitable quarter in the United States;
  • Weakening interest rates in Europe drove reserve strengthening in the company's reinsurance subsidiary, largely offset by investment income and gains from a legal settlement.

Capital:

  • The minimum capital test (MCT) ratio of the company's Canadian subsidiary was 242 per cent as at March 31, 2019 (239 per cent as at Dec. 31, 2018), which comfortably exceeds regulatory requirements of 150 per cent.
  • Trisura specialty's capital of $66.8-million as at March 31, 2019 ($66.5-million as at Dec. 31, 2018), was in excess of the minimum risk-based capital ratio requirement of the Oklahoma Insurance Department.
  • Trisura international's capital of $27.6-million as at March 31, 2019 ($28.7-million as at Dec. 31, 2018), was sufficient to meet the FSC's regulatory capital requirement.
  • Consolidated debt to capital ratio of 18.0 per cent as at March 31, 2019, is below the company's long-term target of 20 per cent.

Investments:

  • Net investment income of $4.6-million in first quarter 2019 compared with $1.9-million in first quarter 2018.
  • In Canada, interest and dividend income increased 61.1 per cent over the prior period as the company continued to benefit from the reallocation of the Canadian portfolio.
  • Investment income related to the reinsurance portfolio increased due to gains from declining interest rates in the company's sovereign bond portfolio.
  • A legal settlement related to the company's structured insurance asset generated a significant windfall in the quarter.

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       
                FOR THE THREE MONTHS ENDED MARCH 31             
         (in thousands of dollars, except as otherwise noted)
                                                             
                                                     Q1 2019        Q1 2018

Gross premiums written                               $81,383        $34,824
Net premiums written                                  28,410         23,911
Net premiums earned                                   22,093         19,254
Fee income                                             4,349          3,276
                                                   ---------      ---------
Total underwriting revenue                            26,442         22,530
                                                   ---------      ---------
Net claims                                           (14,894)        (4,703)
Net commissions                                       (8,518)        (7,597)
Premium taxes                                         (1,010)          (936)
Operating expenses                                   (10,280)        (8,121)
                                                   ---------      ---------
Net claims and expenses                              (34,702)       (21,357)
                                                   ---------      ---------
Net underwriting (loss) income                        (8,260)         1,173
                                                   ---------      ---------
Net investment income                                  4,596          1,910
Settlement from structured insurance assets            8,077              -
Foreign exchange gains (losses)                          372           (117)
Interest expense                                        (345)          (231)
                                                   ---------      ---------
Income before income taxes                             4,440          2,735
Income tax expense                                    (1,923)          (872)
                                                   ---------      ---------
Net income                                             2,517          1,863
                                                   ---------      ---------
Other comprehensive income                             2,658            302
                                                   ---------      ---------
Comprehensive income                                   5,175          2,165
                                                   ---------      ---------

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