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Trisura Group Ltd
Symbol C : TSU
Shares Issued 6,621,680
Close 2018-11-08 C$ 25.75
Recent Sedar Documents

Trisura earns $4.16-million in Q3

2018-11-08 20:51 ET - News Release

Mr. David Clare reports

TRISURA GROUP REPORTS THIRD QUARTER 2018 RESULTS

Trisura Group Ltd. has released financial results for the third quarter of 2018.

David Clare, chief executive officer of Trisura, stated: "Strong underwriting and top-line growth continued in Q3 for our Canadian subsidiary, with correspondingly strong returns. We are also very pleased with the development of our U.S. business, which continues to bind programs, producing gross premiums written of $17.7-million in the third quarter of 2018."

Highlights:

  • Net income of $4.2-million compared with $2.0-million in third quarter 2017; net income was driven by strong Canadian results, favourable reserve development in the company's reinsurance segment and lower operating expenses;
  • Profitable underwriting in the company's Canadian business, producing an 85.5-per-cent third quarter combined ratio versus 90.2 per cent in third quarter 2017 (and 87.2 per cent compared with 87.2 per cent on a year-to-date comparison) driving a 15.8-per-cent trailing 12-month ROE (return on equity) in Canada;
  • Continued premium growth in the company's Canadian specialty P&C business, increasing gross premiums written by 10 per cent in third quarter and 15 per cent YTD;
  • Significant progress in the company's U.S. operations, with $17.7-million of gross written premium in third quarter and bound 12 bound programs YTD;
  • Basic and diluted EPS (earnings per share) of 62 cents for the quarter and $1.05 (basic) and $1.03 (diluted) on a YTD basis;
  • Book value per share of $19.35, a 7.4-per-cent increase over past 12 months.

                                         FINANCIAL HIGHLIGHTS
                                   (amounts in millions of dollars)

                                              Q3 2018         Q3 2017        Q3 2018 YTD        Q3 2017 YTD

Gross premiums written                          $57.3           $36.1             $150.8             $108.1
Net premiums written                             30.1            26.7               84.4               73.2
Net underwriting income                           2.1             1.2                3.3                4.1
Net investment income                             3.6             2.1                7.6                4.4
Net income (loss)                                 4.2             2.0                7.0               (0.3)
EPS -- basic, $                                  0.62            0.35               1.05               0.39
EPS -- diluted, $                                0.62            0.35               1.03               0.39
Book value per share, $                         19.35           18.02              19.35              18.02
Debt to capital ratio                            18.8%           22.2%              18.8%              22.2%
ROE trailing 12 months (TTM)                      5.6%             n/a               5.6%                n/a
Combined ratio -- Canadian specialty
P&C                                              85.5%           90.2%              87.2%              87.2%
Canadian specialty P&C ROE -- TTM                15.8%            8.6%              15.8%               8.6%

Underwriting:

  • $17.7-million of gross premiums written by the company's new U.S. specialty P&C business;
  • The company's Canadian specialty P&C business generated strong underwriting income with a combined ratio of 85.5 per cent compared with 90.2 per cent in third quarter 2017 driven by strong performance in Surety.

Capital:

  • The minimum capital test (MCT) ratio of the company's Canadian subsidiary was 247 per cent as at Sept. 30, 2018 (255 per cent as at Dec. 31, 2017), which comfortably exceeds regulatory requirements of 150 per cent.
  • The capital and surplus in the company's U.S. subsidiary of $63.4-million as at Sept. 30, 2018, are well in excess of the $19.4-million minimum capital requirements of the Oklahoma Insurance Department.
  • The company's international subsidiary had capital of $28.4-million as at Sept. 30, 2018, which was well in excess of its regulatory capital requirement of $200,000.
  • Consolidated debt to capital ratio of 18.8 per cent as at Sept. 30, 2018, is below the company's long-term target of 20 per cent.

Investments:

  • Net investment income was $3.6-million compared with $2.1-million in third quarter 2017. Interest and dividend income was slightly higher in third quarter 2018, 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 company's Canadian subsidiary, Trisura Guarantee Insurance, and the company's U.S. subsidiary, Trisura Specialty, with a stable outlook.

Management appointment:

  • On Oct. 16, 2018, Trisura announced that Mr. Clare would be succeeding Greg Morrison as president and chief executive officer of Trisura Group.
  • Mr. Morrison will continue to act as a director of Trisura Group.

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 NINE MONTHS ENDED SEPT. 30  
                (in thousands of dollars, except as otherwise noted)
  
                                       Q3 2018      Q3 2017     Q3 2018 YTD     Q3 2017 YTD

Gross premiums written                 $57,282      $36,123        $150,767        $108,074
Net premiums written                    30,072       26,742          84,361          73,176
Net premiums earned                     25,281       21,990          65,826          59,567
Fee income                                 370          216           4,049           3,273
Total underwriting revenue              25,651       22,206          69,875          62,840
Net claims                              (4,583)      (5,129)        (13,482)        (12,466)
Net commissions                         (8,313)      (6,799)        (23,358)        (19,687)
Premium taxes                           (1,418)      (1,246)         (3,480)         (3,236)
Operating expenses                      (9,245)      (7,804)        (26,250)        (23,366)
Net claims and expenses                (23,559)     (20,978)        (66,570)        (58,755)
Net underwriting income                  2,092        1,228           3,305           4,085
Net investment income                    3,639        2,067           7,628           4,404
Foreign exchange (losses) gains            171         (253)           (153)           (138)
Interest expense                          (243)        (273)           (709)           (812)
Change in minority interests                 -            2               -          (5,156)
Income before income taxes               5,659        2,771          10,071           2,383
Income tax expense                      (1,499)        (761)         (3,064)         (2,648)
Net income (loss)                        4,160        2,010           7,007            (265)
Other comprehensive loss                (2,712)      (2,965)           (468)         (5,636)
Comprehensive income (loss)              1,448          (95)          6,539          (5,901)

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