Trisura Group Ltd. · TSX:TSU
Trisura — Investor Presentation (July 2023)
18 slides from Trisura's investor presentation, July 2023
Slide 1: A Growing and Profitable Specialty Insurer
A Growing and Profitable Specialty Insurer July 2023
Slide 2: A Growing Specialty Insurer
A Growing Specialty Insurer • Canadian specialty lines franchise operating for 17 years Diversified • US hybrid fronting platform participating in the admitted and non-admitted (‘E&S’) markets for 5 years Specialty Platform • Earnings supported by an attractive mix of underwriting income and recurri
Slide 3: Company Overview
Company Overview • Trisura Group Ltd. (TSX: TSU) is a specialty insurer operating in the surety, risk solutions, corporate insurance and fronting market segments • Trisura operates in niche markets, relying on specialized underwriting knowledge and structuring expertise to offer commercial products
Slide 4: Key Achievements
Key Achievements Share Price Performance1 and GPW Growth ($ millions) 680% Trisura TSX Financials S&P/TSX Consolidated LTM GPW (millions) $3,000 580% $2,612 / +1,608% $2,500 480% 483% $2,000 380% $1,500 280% $1,000 180% 80% $500 24% $153 16% -20% $0 Key Achievements ✓ 2017: Completed spin-off from B
Slide 5: Strategic Priorities
Strategic Priorities • Diversify earnings and demonstrate stable returns (underwriting with recurring fee and investment income) • Demonstrate the value of specialty focus in primary lines through loss ratio outperformance Profitability • Drive stable fronting fees through diversified program book a
Slide 6: North American Specialty Insurance Market
North American Specialty Insurance Market U.S. – Admitted vs. E&S • Commercial products/services not provided by most insurers Admitted E&S (Non-Admitted) • Focused underwriting knowledge, financial and structuring expertise Pricing Rates and form need Freedom of rate and • Claims are less frequent
Slide 7: Overview – Trisura Canada
Overview – Trisura Canada Business Description Total GPW & Fee Income1 ($ millions) Surety Risk Solutions 2 Warranty 2 • 17-year history in surety, risk solutions and corporate insurance Fronting2 Corporate Insurance Combined Ratio (%) segments, with strong track record of profitable underwriting 91
Slide 8: Overview – Trisura US
Overview – Trisura US Business Description Q1 2023 GPW Breakdown by Line1 • Fee-based hybrid fronting model originates premiums and Other, Homeowners cedes majority of underwriting risk to reinsurance partners for Multiple - Peril, 12.1% a fee 7.4% • Distribution through program administrators and M
Slide 9: Balance Sheet
Balance Sheet Balance Sheet ($ millions) Assets Cash and Cash Equivalents 368.2 Investments 824.4 Reinsurance Contract Assets 1,702.5 Other Assets 45.8 Capital Assets and Intangible Assets 18.7 Deferred Tax Assets 17.5 Total Assets 2,977.1 Liabilities & Shareholders' Equity Insurance Contract Liabil
Slide 10: Investments
Investments Portfolio by Asset Class1 Fixed Income Portfolio by Term1,2,3 > 10 Years, Common Shares & Other, 3% 3% < 1 Year, 8% Preferred Shares, 9% Alternatives, 5% High Yield Bonds, 4% 5-10 Years, Cash & Short-term Securities, 31% 23% 1-3 Years, 35% Investment Grade Bonds, 41% Government 3-5 Years
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 Specialty Insurer
A Growing Specialty Insurer • Canadian specialty lines franchise operating for 17 years Diversified • US hybrid fronting platform participating in the admitted and non-admitted (‘E&S’) markets for 5 years Specialty Platform • Earnings supported by an attractive mix of underwriting income and recurri
Slide 13: Appendix
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Slide 14: 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 15: Composition of Earnings
Composition of Earnings • Trisura’s earnings are supported by an attractive mix of: 1. Underwriting Income • Produced through business lines with a 16-year history of industry leading profitability • Includes NUI1 from Surety, Risk Solutions (excluding Canadian Fronting NUI1, 2) and Corporate Insura
Slide 16: Capital Position
Capital Position • As at Q1 2023, Trisura maintains a significant equity base ($512 million) and undrawn revolver capacity ($50 million) • Q1 2023 Debt to capital ratio of 12.8% is below target of 20.0% and provides $53 million in capacity • Q1 2023 MCT in Canada is 240%, comfortably in excess of re
Slide 17: Reinsurance Recoverable (as at March 31, 2023)
Reinsurance Recoverable1 (as at March 31, 2023) • Reinsurance recoverable is supported by rated Reinsurance Recoverable by Rating2 A++, 9% reinsurance companies or appropriate collateral Unrated, 17% • 80% from A- or better rated reinsurers Below B++, 0% • 3% from below A- rated reinsurers with B++,
Slide 18: 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