Q1 2024 Financial Statements

Trisura Group Ltd.

Condensed Interim Consolidated Financial Statements (unaudited)

For the three months ended March 31, 2024

TRISURA GROUP LTD.
Condensed Interim Consolidated Financial Statements (unaudited)
Table of contents for the Condensed Interim Consolidated Financial Statements of Trisura Group Ltd, as at and for the three
months ended March 31, 2024
Condensed Interim Consolidated Statements of Financial Position	2
Condensed Interim Consolidated Statements ofIncome	3
Condensed Interim Consolidated Statements ofComprehensive Income	4
Condensed Interim Consolidated Statements of Changes in Equity	5
Condensed Interim Consolidated Statements of Cash Flows	6
Notes to the Condensed Interim Consolidated Financial Statements	7

TRISURA GROUP LTD.

Condensed Interim Consolidated Statements of Financial Position (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

As at	Note	March 31, 2024	December 31, 2023
Assets
Cash and cash equivalents		636,186	604,016
Investments	4,6	1,056,639	890,157
Other assets	8	33,678	53,712
Reinsurance contract assets	7.2	1,947,341	2,003,589
Capital assets and intangible assets		28,053	16,657
Deferred tax assets		34,890	16,314
Total assets		3,736,787	3,584,445
Liabilities
Insurance contract liabilities	7.1	2,871,676	2,769,951
Other liabilities	9	127,897	120,065
Loan payable	11	75,000	75,000
		3,074,573	2,965,016
Shareholders' equity
Common shares	12	479,282	481,023
Contributed surplus		6,645	7,491
Retained earnings		180,007	143,574
Accumulated other comprehensive loss		(3,720)	(12,659)
		662,214	619,429
Total liabilities and shareholders' equity		3,736,787	3,584,445

See accompanying notes to the Condensed Interim Consolidated Financial Statements

TRISURA GROUP LTD.

Condensed Interim Consolidated Statements of Income (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

For the three months ended March 31,	Note	2024	2023
Insurance revenue	7.1	744,266	639,100
Insurance service expenses		(580,940)	(500,443)
Net expense from reinsurance contracts assets	7.2	(127,878)	(121,942)
Insurance service result		35,448	16,715
Net investment income	14	16,753	10,071
Net gains (losses)	15	12,276	(2,215)
Net credit impairment losses	4.2	(1,830)	(149)
Total investment income		27,199	7,707
Finance expenses from insurance contracts		(36,658)	(36,628)
Finance income from reinsurance contracts		32,800	31,902
Net insurance finance expenses		(3,858)	(4,726)
Net financial result		23,341	2,981
Net insurance and financial result		58,789	19,696
Other income		5,345	5,178
Other operating expenses		(15,012)	(5,432)
Other finance costs	11.2	(614)	(600)
Income before income taxes		48,508	18,842
Income tax expense	17	(12,075)	(4,866)
Net income attributable to shareholders		36,433	13,976
Weighted average number of common shares outstanding		47,596	45,887
during the period (in thousands) - basic
Earnings per common share (in dollars) - basic	13	0.77	0.30
Earnings per common share (in dollars) - diluted	13	0.75	0.30

See accompanying notes to the Condensed Interim Consolidated Financial Statements

TRISURA GROUP LTD.

Condensed Interim Consolidated Statements of Comprehensive Income (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

For the three months ended March 31,	Note	2024	2023
Net income attributable to shareholders		36,433	13,976
Items that may be or are reclassified subsequently to Net income
Net unrealized (gains) losses on FVOCI investments		(1,694)	6,730
Income tax expense (benefit)		360	(1,757)
FVOCI amounts		(1,334)	4,973
Net realized (gains) losses		(89)	715
Net credit impairment losses	4.2	1,830	149
Income tax expense		(432)	(51)
Items reclassified to Net income		1,309	813
Net unrealized losses on FVOCI investments		2,966	659
Net realized gains on FVOCI investments		-	(96)
Income tax benefit on FVOCI investments		(734)	(215)
Items that will not be reclassified to Net income		2,232	348
Items other than Cumulative translation gain (loss)		2,207	6,134
Cumulative translation gain (loss)		6,732	(213)
Other comprehensive income		8,939	5,921
Total comprehensive income		45,372	19,897

See accompanying notes to the Condensed Interim Consolidated Financial Statements

TRISURA GROUP LTD.

Condensed Interim Consolidated Statements of Changes in Equity (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

					Accumulated other
					comprehensive
		Common	Contributed	Retained	loss (net of
	Note	shares	surplus	earnings	income taxes)	Total
Balance as at January 1, 2024		481,023	7,491	143,574	(12,659)	619,429
Net income		-	-	36,433	-	36,433
Other comprehensive income		-	-	-	8,939	8,939
Total comprehensive income		-	-	36,433	8,939	45,372
Share issuance	12	1,335	-	-	-	1,335
Shares purchased under Restricted	12	(3,076)	-	-	-	(3,076)
Share Units ("RSUs") plan

Share based payments		-	(846)	-	-	(846)
Balance as at March 31, 2024		479,282	6,645	180,007	(3,720)	662,214
					Accumulated other
					comprehensive loss
		Common	Contributed	Retained	(net of income
		shares	surplus	earnings	taxes)	Total
Balance at January 1, 2023,		430,262	5,743	76,633	(18,987)	493,651
as restated
Net income		-	-	13,976	-	13,976
Other comprehensive income		-	-	-	5,921	5,921
Total Comprehensive income		-	-	13,976	5,921	19,897
Share issuance		711	-	-	-	711
Shares purchased under Restricted		(869)	-	-	-	(869)
Share Units ("RSUs") plan

Share based payments		-	(932)	-	-	(932)
Balance as at March 31, 2023		430,104	4,811	90,609	(13,066)	512,458

See accompanying notes to the Condensed Interim Consolidated Financial Statements

TRISURA GROUP LTD.

Condensed Interim Consolidated Statements of Cash Flows (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

For the three months ended March 31,	Note	2024	2023
Operating activities
Net income		36,433	13,976
Items not involving cash:
Depreciation and amortization		274	460
Unrealized (gains) losses		(8,875)	4,334
Net credit impairment losses	4.2	1,830	149
Stock options granted		387	289
Change in working capital	18	160,070	(1,046)
Realized losses on investments		330	245
Income taxes paid		(4,056)	(3,837)
Interest paid		(115)	(127)
Net cash flows from operating activities		186,278	14,443
Investing activities		38,368
Proceeds on disposal of investments		31,601
Purchases of investments		(179,636)	(79,987)
Purchases of capital assets		(474)	(79)
Acquisition of subsidiary	19	(15,015)	-
Purchases of intangible assets		(58)	(98)
Net cash flows used in investing activities		(156,815)	(48,563)
Financing activities		1,335
Shares issued	12	711
Shares purchased under RSU plan	12	(3,076)	(869)
Principal portion of lease payments		(586)	(512)
Net cash flows used in financing activities		(2,327)	(670)
Net increase (decrease) in cash and cash equivalents during the period		27,136	(34,790)
Cash, beginning of period		559,741	381,485
Cash equivalents, beginning of period		44,275	24,883
Cash and cash equivalents, beginning of period		604,016	406,368
Impact of foreign exchange on cash and cash equivalents		5,034	(3,368)
Cash, end of period		562,216	357,896
Cash equivalents, end of period		73,970	10,314
Cash and cash equivalents, end of period		636,186	368,210

See accompanying notes to the Condensed Interim Consolidated Financial Statements

TRISURA GROUP LTD.

Notes to the Condensed Interim Consolidated Financial Statements (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

Note 1 - The Company

Trisura Group Ltd. (the "Company") was incorporated under the Business Corporations Act (Ontario) (the "Act") on January 27, 2017. The Company's head office is located at 333 Bay Street, Suite 1610, Box 22, Toronto Ontario, M5H 2R2.

The Company has investments in wholly owned subsidiaries through which it conducts insurance and reinsurance operations. Those operations are primarily in Canada and the United States.

The Company's Canadian business operates as a Canadian property and casualty insurance company, licensed in all provinces and territories. Certain lines of the Canadian business operate as a fronting carrier with a large portion of gross premiums written ceded to reinsurers. The Company's US business is a domestic surplus lines insurer that can write business as a non-admitted surplus line insurer in all states and admitted business in most states. The US business primarily operates as a hybrid fronting carrier where a large portion of its gross premiums written are ceded to reinsurers.

The common shares of the Company are publicly traded on the Toronto Stock Exchange under the symbol "TSU".

Note 2 - Basis of presentation

These Condensed Interim Consolidated Financial Statements have been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). The Condensed Interim Consolidated Financial Statements should be read in conjunction with the annual financial statements for the year ended December 31, 2023. These statements have been prepared in accordance with International Financial Reporting Standards ("IFRS").

The Condensed Interim Consolidated Financial Statements comprise the financial results of the Company and all entities controlled by the Company, on a consolidated basis of presentation. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. In accordance with IFRS, presentation of assets and liabilities on the Condensed Interim Consolidated Statements of Financial Position is in order of liquidity. The Company's functional and presentation currency is Canadian dollars.

These Condensed Interim Consolidated Financial Statements were authorized for issuance by the Company's Board of Directors on May 2, 2024.

Note 3 - Summary of material accounting policies

The accounting policies applied during the three months ended March 31, 2024 are the same as those described and disclosed in Note 2 - Summary of material accounting policies of the December 31, 2023 Consolidated Financial Statements. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

3.1 IFRS 18 - Presentation and Disclosures in Financial Statements

In April 2024, the IASB issued IFRS 18 Presentation and Disclosures in Financial Statements, which will replace IAS 1 Presentation of Financial Statements. IFRS 18 enhances disclosure requirements in the following areas: the statement of profit and loss, aggregation and disaggregation of financial information, and management-defined performance measures. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and will be applied retrospectively. The Company is currently assessing potential impacts.

TRISURA GROUP LTD.

Notes to the Condensed Interim Consolidated Financial Statements (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

Note 4 - Investments

4.1 Classification of cash and investments

The following table presents the classification of cash and cash equivalents, short-term securities and investments:

As at March 31, 2024	FVOCI	FVTPL	Amortized Cost	Total
Cash and cash equivalents	-	-	636,186	636,186
Investments
Short-term securities	-	-	7,500	7,500
Fixed income (1)	669,587	149,631	4,500	823,718
Common shares	-	38,677	-	38,677
Preferred shares	54,008	70,771	-	124,779
Alternatives	-	61,965	-	61,965
Total investments	723,595	321,044	12,000	1,056,639
Total cash, cash equivalents and investments	723,595	321,044	648,186	1,692,825
As at December 31, 2023	FVOCI	FVTPL	Amortized Cost	Total
Cash and cash equivalents	-	-	604,016	604,016
Investments
Short-term securities			7,500	7,500
Fixed income (1)	527,880	144,815	2,500	675,195
Common shares	-	35,412	-	35,412
Preferred shares	50,068	65,204	-	115,272
Alternatives	-	56,778	-	56,778
Total investments	577,948	302,209	10,000	890,157
Total cash, cash equivalents and investments	577,948	302,209	614,016	1,494,173

As at March 31, 2024, included in Fixed income are exchange-traded debt funds amounting to $140,058 (December 31, 2023 - $138,754).

4.2 Unrealized gains and losses and carrying value of investments

The amortized cost and carrying value of investments as at March 31, 2024 and December 31, 2023 were as follows:

	FVTPL					Total
As at March 31, 2024	investments	FVOCI and amortized cost investments	investments
	At carrying	Amortized	Unrealized	Unrealized	Carrying	At carrying
	value	cost	gains	losses	value	value
Short-term securities	-	7,500	-	-	7,500	7,500
Fixed income	149,631	689,477	-	(15,390)	674,087	823,718
Common shares	38,677	-	-	-	-	38,677
Preferred shares	70,771	57,333	-	(3,325)	54,008	124,779
Alternatives	61,965	-	-	-	-	61,965
	321,044	754,310	-	(18,715)	735,595	1,056,639

TRISURA GROUP LTD.

Notes to the Condensed Interim Consolidated Financial Statements (unaudited)

(in thousands of Canadian dollars, except as otherwise noted)

Note 4 - Investments (Continued)

	FVTPL					Total
As at December 31, 2023	investments	FVOCI and amortized cost investments	investments
	At carrying	Amortized	Unrealized	Unrealized	Carrying	At carrying
	value	cost	gains	losses	value	value
Short-term securities	-	7,500	-	-	7,500	7,500
Fixed income	144,815	543,868	-	(13,488)	530,380	675,195
Common shares	35,412	-	-	-	-	35,412
Preferred shares	65,204	56,303	-	(6,235)	50,068	115,272
Alternatives	56,778	-	-	-	-	56,778
	302,209	607,671	-	(19,723)	587,948	890,157

The ECL of $5,122 (2023: $4,336) is recognized in Other comprehensive income, and does not reduce the carrying amount of these investments in the Condensed Interim Consolidated Statements of Financial Position.

Impairment losses on financial investments subject to impairment assessment

For the three months ended March 31, 2024 and 2023, an analysis of changes in the fair value and the corresponding ECL is as follows:

	For the period ended March 31, 2024	For the period ended March 31, 2023
	12mECL	LTECL	Total	12mECL	LTECL	Total
Beginning fair value	527,130	750	527,880	441,932	656	442,588
New assets purchased	173,995	-	173,995	56,368	-	56,368
Assets derecognized or matured	(37,730)	-	(37,730)	(25,756)	-	(25,756)
Change in fair value	200	(507)	(307)	6,634	(135)	6,499
Net foreign exchange income	5,749	-	5,749	-	-	-
Movement between 12mECL and LTECL	(2,175)	2,175	-	-	-	-
Ending fair value	667,169	2,418	669,587	479,178	521	479,699
	For the period ended March 31, 2024	For the period ended March 31, 2023
	12mECL	LTECL	Total	12mECL	LTECL	Total
Beginning ECL	3,193	99	3,292	3,935	252	4,187
New assets purchased	748	-	748	120	-	120
Assets derecognized or matured	(104)	-	(104)	(110)	-	(110)
(excl. writeoffs)

Movement in ECL	382	804	1,186	195	(56)	139
Movement between 12mECL and LTECL	(934)	934	-	(167)	167	-
Ending ECL	3,285	1,837	5,122	3,973	363	4,336

4.3 Pledged assets

In the normal course of insurance and reinsurance operations, the Company must secure its obligations under certain insurance and reinsurance contracts by collateralizing them with letters of credit or trust arrangements. As at March 31, 2024, the Company has pledged cash amounting to $499 (December 31, 2023 - $479), under insurance and reinsurance trust arrangements and are therefore not readily available for general use by the Company.

As at March 31, 2024, the Company pledged $7,939 (December 31, 2023 - $7,212) of fixed income investments, including $557 of cash and cash equivalents, as security deposits to various US state insurance departments to be held in trust for various states and are therefore not readily available for general use by the Company.

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Trisura Group Ltd. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 20:49:41 UTC.

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