Trisura Group Ltd. · TSX:TSU
Trisura — Investor Presentation (March 2023)
18 slides from Trisura's investor presentation, March 2023
Slide 1: A Growing Specialty Insurer
A Growing Specialty Insurer March 2023
Slide 2: A Growing Specialty Insurer
A Growing Specialty Insurer • Canadian specialty lines franchise operating for 16 years Diversified • US hybrid fronting platform participating in the admitted and non-admitted (‘E&S’) markets Specialty Platform • Earnings supported by an attractive mix of underwriting income and recurring fee-based
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% $2,433 /$2,500 +1,491% 480% $2,000 380% 388% $1,500 280% $1,000 180% 80% $500 22% $153 17% -20% $0 Key Achievements June - December 2017: Completed
Slide 5: Strategic Priorities
Strategic Priorities • Expand North American insurance market share through enhanced distribution and capacity relationships • Build fronting model of scale in US and Canadian markets Growth • Grow Admitted business and obtain US Treasury listing • Evaluate strategic partnerships and inorganic growt
Slide 6: North American Specialty Insurance Market
North American Specialty Insurance Market U.S. – Admitted vs. E&S • Commercial products/services not provided by most insurers Admitted E&S (Non-Admitted) • Focused underwriting knowledge, financial and structuring expertise Pricing Rates and form need Freedom of rate and • Claims are less frequent
Slide 7: Overview – Trisura Canada
Overview – Trisura Canada Business Description Total GPW & Fee Income ($ millions) Surety Risk Solutions Corporate Insurance Combined Ratio (%) • 16-year history in surety, risk solutions and corporate 91.7% insurance segments, with strong track record of profitable 88.8% 86.3% 87.8% $738 85.7% 85.3
Slide 8: Overview – Trisura US
Overview – Trisura US Business Description 2022 GPW Breakdown by Line1 • Fee-based hybrid fronting model originates premiums and cedes majority of underwriting risk to reinsurance partners for Homeowners Other, 14.6% a fee Multiple – Peril, 5.7% Primary and Excess Casualty, • Distribution through pr
Slide 9: Balance Sheet
Balance Sheet Balance Sheet ($ millions) Assets Cash and Cash Equivalents 406.4 Investments 765.4 Recoverable from Reinsurers 2,148.6 Other Assets 963.0 Total Assets 4,283.4 Liabilities & Shareholders' Equity Unearned Premiums 1,432.1 Unpaid Claims & Loss Adjustment Expenses 1,478.2 Other Liabilitie
Slide 10: Investments
Investments Portfolio by Asset Class1 Fixed Income Portfolio by Term1,2,3 > 10 Years, Common Shares & Other, 3% 3% < 1 Year, 7% Preferred Shares, 9% Alternatives, 4% High Yield Bonds, 4% Cash & Short-term 5-10 Years, Securities, 34% 28% 1-3 Years, 34% Investment Grade Bonds, 39% 3-5 Years, 28% Gover
Slide 11: Board of Directors & Management
Board of Directors & Management • Trisura Group 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 Invest
Slide 12: A Growing Specialty Insurer
A Growing Specialty Insurer • Canadian specialty lines franchise operating for 16 years Diversified • US hybrid fronting platform participating in the admitted and non-admitted (‘E&S’) markets Specialty Platform • Earnings supported by an attractive mix of underwriting income and recurring fee-based
Slide 13: Appendix
Appendix
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 • Trisura maintains a significant equity base ($483 million) and undrawn revolver capacity ($50 million) • Debt to capital ratio of 13.4% is below target of 20.0% and provides $46 million in capacity • MCT in Canada is 233%, comfortably in excess of regulatory minimums • RBC ratio i
Slide 17: Reinsurance Recoverable
Reinsurance Recoverable • Reinsurance recoverable is supported by rated Reinsurance Recoverable by Rating A++, 8% reinsurance companies or appropriate collateral Unrated, 17% • 78% from A- or better rated reinsurers Below B++, 0% • 5% from below A- rated reinsurers with B++, 5% appropriate collatera
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