Trisura Group Ltd. · TSX:TSU
Trisura — Q2 2024 Earnings Presentation
18 slides from Trisura's earnings presentation, August 2024
Slide 1: A Growing and Profitable Specialty Insurer
A Growing and Profitable Specialty Insurer August 2024
Slide 2: A Growing and Profitable Specialty Insurer
A Growing and Profitable Specialty Insurer • Canadian specialty lines franchise operating on a primary basis for 18 years Diversified • US Programs1 platform participating in the admitted and non-admitted (‘E&S’) markets for 6 years Specialty Platform • Earnings supported by an attractive mix of und
Slide 3: Company Overview
Company Overview • Trisura Group Ltd. (TSX: TSU) is a specialty insurer operating in the surety, warranty, corporate insurance and fronting market segments • Trisura operates in niche markets, relying on specialized underwriting knowledge and structuring expertise to offer commercial products and se
Slide 4: Key Achievements
Key Achievements Share Price Performance1 and GPW Growth ($ millions) Trisura TSX Financials S&P/TSX Consolidated LTM GPW $3,188 / +1,984% 551% 36% $153 29% Key Achievements ✓ 2017: Completed spin-off from Brookfield; US Programs platform secured licenses and rating ✓ 2018: Internalized investment f
Slide 5: Strategic Priorities
Strategic Priorities • Diversify earnings and demonstrate stable returns (underwriting with recurring fee and investment income) • Demonstrate the value of specialty focus in primary lines through loss ratio outperformance • Drive stable fronting fees through diversified program book and prudent cou
Slide 6: North American Specialty Insurance Market
North American Specialty Insurance Market US – Admitted vs. E&S • Commercial products/services not provided by most insurers Admitted E&S (Non-Admitted) • Focused underwriting knowledge, financial and structuring expertise Pricing Rates and form need Freedom of rate and • Claims are less frequent bu
Slide 7: Overview – Trisura Specialty
Overview – Trisura Specialty Business Description Total GPW & Fee Income1 ($ millions) Surety Risk Solutions 2 Warranty 2 • 18-year history in surety, warranty and corporate insurance Fronting 2 Corporate Insurance Combined Ratio (%) segments, with strong track record of profitable underwriting 91.7
Slide 8: Overview – Trisura US Programs
Overview – Trisura US Programs Business Description Q2 2024 YTD GPW Breakdown by Line1 • Fee-based hybrid fronting model originates premium and cedes majority of underwriting risk to partners for a fee Other, 18.4% Primary and • Distribution through program administrators and MGAs Homeowners Multipl
Slide 9: Balance Sheet
Balance Sheet Balance Sheet ($ millions) Assets Cash and Cash Equivalents 405.6 Investments 1,087.8 Other Assets 32.5 Reinsurance Contract Assets 2,329.4 Capital Assets and Intangible Assets 29.5 Deferred Tax Assets 34.6 Total Assets 3,919.4 Liabilities & Shareholders' Equity Insurance Contract Liab
Slide 10: Investments
Investments Portfolio by Asset Class1 Fixed Income Portfolio by Term1,2,3 Common Shares and Other, > 10 Years, 5% Preferred Shares, 2% 8% Alternatives, 4% High Yield Bonds, < 1 Year, 3% Cash & Short 17% Term Securities, 28% 5-10 Years, 30% 1-3 Years, 21% Investment Grade Government Bonds, Bonds, 6%
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 • Canadian specialty lines franchise operating on a primary basis for 18 years Diversified • US Programs platform participating in the admitted and non-admitted (‘E&S’) markets for 6 years Specialty Platform • Earnings supported by an attractive mix of unde
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 an 18-year history of industry leading profitability • Includes NUI1 from Surety, Warranty and Corporate Insurance 2. Fee-Based Income & Investment Income
Slide 16: Capital Position
Capital Position • As at Q2 2024, Trisura maintains a significant equity base ($695 million) and revolving credit facility ($75 million)1 • Q2 2024 Debt to capital ratio of 12.4% is below target of 20.0% and provides room for $76 million in capacity • Q2 2024 MCT in Canada is 267%, comfortably in ex
Slide 17: Reinsurance Contract Assets (as at June 30, 2024)
Reinsurance Contract Assets (as at June 30, 2024) • Reinsurance contract assets are supported by rated Reinsurance Contract Assets by Rating reinsurance companies or appropriate collateral A++, 6% • 74% from A- or better rated reinsurers Unrated, 22% • 4% from below A- rated reinsurers with appropri
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