Trisura Group Ltd. · TSX:TSU
Trisura — Investor Day (May 2024)
18 slides from Trisura's investor day presentation, May 2024
Slide 1: A Growing and Profitable Specialty Insurer
A Growing and Profitable Specialty Insurer May 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 hybrid fronting platform participating in the admitted and non-admitted (‘E&S’) markets for 6 years Specialty Platform • Earnings supported by an attractive mix
Slide 3: Company Overview
Company Overview • Trisura Group Ltd. (TSX: TSU) is a specialty insurer operating in the surety, risk solutions - warranty, corporate insurance and fronting market segments • Trisura operates in niche markets, relying on specialized underwriting knowledge and structuring expertise to offer commercia
Slide 4: Key Achievements
Key Achievements Share Price Performance1 and GPW Growth ($ millions) 680% Trisura TSX Financials S&P/TSX Consolidated LTM GPW $3,500 $3,034 / +1,883% 580% $3,000 536% 480% $2,500 380% $2,000 280% $1,500 180% $1,000 80% $500 38% $153 30% -20% $0 Key Achievements ✓ 2017: Completed spin-off from Brook
Slide 5: Strategic Priorities
Strategic Priorities • Diversify earnings and demonstrate stable returns (underwriting with recurring fee and investment income) • Demonstrate the value of specialty focus in primary lines through loss ratio outperformance • Drive stable fronting fees through diversified program book and prudent cou
Slide 6: North American Specialty Insurance Market
North American Specialty Insurance Market US – Admitted vs. E&S • Commercial products/services not provided by most insurers Admitted E&S (Non-Admitted) • Focused underwriting knowledge, financial and structuring expertise Pricing Rates and form need Freedom of rate and • Claims are less frequent bu
Slide 7: Overview – Trisura Canada
Overview – Trisura Canada Business Description Total GPW & Fee Income1 ($ millions) Surety Risk Solutions 2 Warranty 2 • 18-year history in surety, risk solutions - warranty and corporate Fronting 2 Corporate Insurance Combined Ratio (%) insurance segments, with strong track record of profitable 91.
Slide 8: Overview – Trisura US
Overview – Trisura US Business Description Q1 2024 GPW Breakdown by Line1 • Fee-based hybrid fronting model originates premium and cedes majority of underwriting risk to partners for a fee Primary and • Distribution through program administrators and MGAs Homeowners Other, 20.7% Excess Casualty, Mul
Slide 9: Balance Sheet
Balance Sheet Balance Sheet ($ millions) Assets Cash and Cash Equivalents 636.2 Investments 1,056.6 Other Assets 33.7 Reinsurance Contract Assets 1,947.3 Capital Assets and Intangible Assets 28.1 Deferred Tax Assets 34.9 Total Assets 3,736.8 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, Preferred Shares, 2% > 10 Years, 5% 7% Alternatives, 4% High Yield Bonds, 3% < 1 Year, 19% Cash & Short 5-10 Years, Term Securities, 24% 38% 1-3 Years, Investment Grade 25% Bonds, 39% 3-5 Years, 27% Go
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 hybrid fronting platform participating in the admitted and non-admitted (‘E&S’) markets for 6 years Specialty Platform • Earnings supported by an attractive mix
Slide 13: Appendix
\ \ 1} Ny Lf ' 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 an 18-year history of industry leading profitability • Includes NUI1 from Surety, Risk Solutions - Warranty and Corporate Insurance 2. Fee-Based Income &
Slide 16: Capital Position
Capital Position • As at Q1 2024, Trisura maintains a significant equity base ($662 million) and revolving credit facility ($50 million)1 • Q1 2024 Debt to capital ratio of 10.2% is below target of 20.0% and provides room for $91 million in capacity • Q1 2024 MCT in Canada is 259%, comfortably in ex
Slide 17: Reinsurance Contract Assets (as at March 31, 2024)
Reinsurance Contract Assets (as at March 31, 2024) • Reinsurance contract assets are supported by rated Reinsurance Contract Assets by Rating reinsurance companies or appropriate collateral A++, 8% Unrated, 12% • 82% from A- or better rated reinsurers Below B++, 2% • 6% from below A- rated reinsurer
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