Trisura Group Ltd. · TSX:TSU
Trisura — Q3 2024 Earnings Presentation
19 slides from Trisura's earnings presentation, December 2024
Slide 1: A Growing and Profitable Specialty Insurer
A Growing and Profitable Specialty Insurer December 2024
Slide 2: A Growing and Profitable Specialty Insurer
A Growing and Profitable Specialty Insurer • Specialty1 insurance platform operating for 18 years Diversified • US Programs platform participating in the non-admitted (‘E&S’) markets for 6 years, with growing admitted capabilities Specialty Platform • Earnings supported by an attractive mix of under
Slide 3: Company Overview
Company Overview • Trisura Group Ltd. (TSX: TSU) is a specialty insurer operating in surety, warranty, corporate insurance, fronting and programs markets • Operating in niche markets, Trisura relies on specialized underwriting expertise and structuring knowledge to offer commercial products and serv
Slide 4: Key Achievements
Key Achievements Share Price Performance1, GPW and Operating Net Income Growth 2400% Trisura TSX Financials S&P/TSX Consolidated LTM Operating Net Income Consolidated LTM GPW 2,124% 1900% 1,983% 1400% 900% 400% 502% 55% -100% 52% Key Achievements ✓ 2017: Completed spin-off from Brookfield; US Progra
Slide 5: Strategic Priorities
Strategic Priorities • Diversify earnings and demonstrate stable returns (underwriting with recurring fee and investment income) • Demonstrate the value of specialty focus in primary lines through loss ratio outperformance Profitability • Drive stable fees through diversified programs book and prude
Slide 6: Specialty P&C
Specialty P&C • Specialty P&C includes Surety (Canada and the US), Warranty, Canadian Fronting and Corporate Insurance (Canada and the US) and represents 34% of Gross Premiums Written • US Programs includes program focused admitted and surplus lines premiums and represents 66% of GPW • Although the
Slide 7: Trisura Specialty
Trisura Specialty Business Description Total GPW & Fee Income1 ($ millions) • Track record of profitable underwriting and conservative reserving GPW & Fee Income Combined Ratio (%) with strong return on equity to support growth 91.7% 88.8% 87.8% 85.7% 85.3% 86.3% 85.5% 85.8% 81.1% • Primarily retain
Slide 8: Trisura US Programs
Trisura US Programs Business Description Q3 2024 YTD GPW Breakdown by Line1 • E&S focused programs business utilizes quota share and XOL reinsurance structures to manage risk Other, 18.5% Primary and • Distribution through program administrators and MGAs Homeowners Excess Multiple - Peril, Casualty,
Slide 9: Balance Sheet
Balance Sheet Balance Sheet ($ millions) Q3 2024 Assets Cash and Cash Equivalents 262.8 Investments 1,324.3 Other Assets 39.7 Reinsurance Contract Assets 2,418.3 Capital Assets and Intangible Assets 28.8 Deferred Tax Assets 37.2 Total Assets 4,111.1 Liabilities & Shareholders' Equity Insurance Contr
Slide 10: Investments
Investments Portfolio by Asset Class1 Fixed Income Portfolio by Term1,2,3 Common Shares and Other, Preferred Shares, 2% > 10 Years, 5% 9% Alternatives, 4% Cash & Short High Yield Bonds, Term Securities, < 1 Year, 3% 17% 18% Government Bonds, 9% 1-3 Years, 5-10 Years, 17% 38% Investment Grade Bonds,
Slide 11: Board of Directors & Management
Board of Directors & Management • Trisura has a robust management team and board of directors consisting of insurance executives with significant Canadian, US and International experience Board of Directors President and CEO, Windermere Investment Corporation; former CEO, Partners Value Investments
Slide 12: A Growing and Profitable Specialty Insurer
A Growing and Profitable Specialty Insurer • Specialty insurance platform operating for 18 years Diversified • US Programs platform participating in the non-admitted (‘E&S’) markets for 6 years, with growing admitted capabilities Specialty Platform • Earnings supported by an attractive mix of underw
Slide 13: Appendix
Appendix
Slide 14: North American Specialty Insurance Market
North American Specialty Insurance Market US – Admitted vs. E&S • Commercial products/services not provided by most insurers Admitted E&S (Non-Admitted) • Focused underwriting knowledge, financial and structuring expertise Pricing Rates and form need Freedom of rate and • Claims are less frequent bu
Slide 15: A Focus on Surety
A Focus on Surety Surety Overview Illustration of Surety Bond Structure • Surety bonds represent a tri-party, credit-like agreement Payment protecting an Obligee against losses incurred as a result of a Obligee Principal Principal’s failure to perform its contractual obligation(s) (ie. Gov’t) (ie. C
Slide 16: Composition of Earnings
Composition of Earnings • Trisura’s earnings are supported by an attractive mix of: 1. Underwriting Income • Produced through business lines with an 18-year history of industry leading profitability • Includes NUI1 from Surety, Warranty and Corporate Insurance 2. Fee-Based Income & Investment Income
Slide 17: Capital Position
Capital Position • As at Q3 2024, Trisura maintains a significant equity base ($747 million) and revolving credit facility ($75 million)1 • Q3 2024 Debt to capital ratio of 11.6% is below target of 20.0% and provides room for $89 million in capacity • Q3 2024 MCT in Canada is 263%, comfortably in ex
Slide 18: Reinsurance Contract Assets (as at September 30, 2024)
Reinsurance Contract Assets (as at September 30, 2024) • Reinsurance contract assets are supported by rated Reinsurance Contract Assets by Rating reinsurance companies or appropriate collateral A++, 6% • 70% from A- or better rated reinsurers Unrated, 24% • 6% from below A- rated reinsurers with app
Slide 19: Notice to Recipients
Notice to Recipients Trisura Group Ltd. (“Trisura”) is not making any offer or invitation of any kind by communication of this document to the recipient and under no circumstances is it to be construed as a prospectus or an advertisement. Except where otherwise indicated herein, the information prov