TGL - Press Release Q1 2022 - Insurance News

TRISURA GROUP REPORTS FIRST QUARTER 2022 RESULTS

TORONTO, May 5, 2022 -Trisura Group Ltd. ("Trisura" or "Trisura Group") (TSX: TSU), a leading specialty insurance provider, today announced financial results for the first quarter of 2022.

David Clare, President and CEO of Trisura, stated, "Our business performed well in the quarter, recording our highest quarterly net income to date of $21.1 million. Sustained growth and strong underwriting, supported by investment income, generated an 18.7% retuon equity(1), despite continued investment in infrastructure.

Expansion of market share, and maturation of our platform drove premium growth of 55.2% in the quarter. In Canada, focused underwriting resulted in a 79.5% combined ratio(1)for the quarter. Our US business bound a quarterly record $341.7 million of gross premiums, supporting $8.4 million of net underwriting income driven by increased fee income."

Financial Highlights

EPS of $0.50 in Q1 2022 compared to $0.46 in Q1 2021. Adjusted EPS(2)of $0.45 for the quarter compared to $0.40 in the prior period.
Book value per share(1)of $8.66 increased 15.3% from March 31, 2021, driven by strong earnings but diluted by unrealized losses on fixed income positions in the quarter.
Gross written premiums growth of 55.2% in Q1 2022 was supported by continued growth in Canada and strong momentum in US fronting.
Net income of $21.1 million in the quarter grew 9.0% compared to Q1 2021, driven by growth and profitable underwriting in Canada and the US.
ROE of 18.7% compared to 16.1% in Q1 2021, exceeding our mid-teens target despite significant growth.
Consolidated combined ratio is 72.0%, and consolidated loss ratio(1)is 26.7% for Q1 2022.
GPW in Canada increased by 63.2% in Q1 2022. Strong underwriting performance across all lines contributed to a combined ratio of 79.5% and a 29.8% ROE.
New fronting arrangements in Canada contributed $55.6 million premiums in the quarter.
US premium grew by 52.1% and fee income grew by 46.4% in the quarter compared to Q1 2021, reaching $341.7 million and $13.9 million, respectively. This contributed to improved net income of $6.7 million in the quarter and a 13.9% ROE.

Amounts in C$ millions	Q1 2022	Q1 2021	Variance
Gross premiums written Net income EPS - diluted, $ Adjusted EPS - diluted, $ Book value per share, $ Debt-to-Capital ratio(1)LTM ROE Adjusted LTM ROE(3)Combined ratio - Canada Fronting operational ratio - US(1)	481.4 21.1 0.50 0.45 8.66 17.4% 18.7% 18.2% 79.5% 74.7%	310.3 19.3 0.46 0.40 7.51	55.2% 9.0% 8.7% 12.5% 15.3% 0.1pts 2.6pts 2.4pts 14.2pts 7.5pts
17.3%
16.1% 15.8% 65.3%
67.2%

Insurance Operations

Disciplined underwriting in Canada contributed to a loss ratio of 15.7% for the quarter.
Growth continued in the US, with GPW of $341.7 million in the quarter, compared to $224.7 million in Q1 2021, and fee income of $13.9 million in the quarter compared to $9.5 million in Q1 2021. Growth was the result of maturing and new programs.

Capital

The Minimum Capital Test ratio(4)of our regulated Canadian subsidiary was 231% as at March 31, 2022 (229% as at December 31, 2021), which comfortably exceeded regulatory requirements(5)of 150%.

The Risk-Based Capital of the regulated insurance companies of Trisura US was in excess of the various Company Action Levels of the states in which it is licensed at March 31, 2022.

Consolidated debt-to-capital ratio of 17.4% as at March 31, 2022 is below our long-term target of 20.0%, providing incremental capacity for growth.

Investments

Interest and dividend income rose 23.9% in the quarter compared to Q1 2021. The Canadian and US portfolios benefited from improved diversification and increased capital generated from strong operational performance.

Corporate Development

DBRS Morningstar reaffirmed the rating of A (low) to the principal operating subsidiaries of Trisura, reaffirmed the Issuer Rating of BBB to Trisura Group Ltd., and the Senior Unsecured Notes rating of BBB to the Company's outstanding notes.

Environmental, Social, and Governance ("ESG")

Appointed Janice Madon to the Company's Board of Directors.
Entered into an Amended and Restated Credit Agreement which includes a sustainability-linked loan structure.
Implemented a Responsible Investing Policy, which mandates the inclusion of ESG factors into the Company's investment decisions.
Enhanced ESG disclosure within our Management Information Circular and Management's Discussion and Analysis.

Earnings Conference Call

Trisura will host its First Quarter Earnings Conference Call to review financial results at 9:00 a.m. ET on Friday May 6th, 2022.

To listen to the call via live audio webcast, please follow the link below:https://edge.media-server.com/mmc/p/xa324v9y

A replay of the call will be available through the link above.

About Trisura Group

Trisura Group Ltd. is a specialty insurance provider operating in the surety, risk solutions, corporate insurance, fronting and reinsurance segments of the market. Trisura has investments in wholly owned subsidiaries through which it conducts insurance and reinsurance operations. Those operations are primarily in Canada ("Trisura Canada") and the United States ("Trisura US"). Trisura Group Ltd. is listed on the Toronto Stock Exchange under the symbol "TSU".

Further information is available athttp://www.trisura.com/group. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group Ltd. are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group's SEDAR profile atwww.sedar.com.

For more information, please contact: Name: Bryan Sinclair

Tel: 416 607 2135

Email:[email protected]

Trisura Group Ltd.

Condensed Interim Consolidated Statements of Financial Position

As at March 31, 2022 and December 31, 2021

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

As at	March 31, 2022	December 31, 2021
Cash and cash equivalents Investments Premiums and accounts receivable, and other assetsRecoverable from reinsurers Deferred acquisition costs Capital assets and intangible assets Deferred tax assets	304,464 603,945 308,148 1,441,065 321,811 20,012 12,088	341,319 641,140 311,629 1,375,354 304,580 17,109 9,223
Total assets	3,011,533	3,000,354
Accounts payable, accrued and other liabilities Reinsurance premiums payable Unearned premiums Unearned reinsurance commissions Unpaid claims and loss adjustment expenses Debt outstanding	91,528 365,733 1,032,979 167,754 921,589 75,000	216,633 335,673 965,245 152,003 897,011 75,000
Total liabilities Shareholders' equity	2,654,583 356,950	2,641,565 358,789
Total liabilities and shareholders' equity	3,011,533	3,000,354

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Trisura Group Ltd. published this content on 06 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2022 02:16:30 UTC.