TGL – Press Release Q1 2022
TRISURA GROUP REPORTS FIRST QUARTER 2022 RESULTS
Expansion of market share, and maturation of our platform drove premium growth of 55.2% in the quarter. In
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% fromMarch 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 inCanada 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, $ 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 atDecember 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 atMarch 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 toTrisura 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
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
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
For more information, please contact:
Tel: 416 607 2135
Email:[email protected]
Condensed Interim Consolidated Statements of Financial Position
As at
(in thousands of Canadian dollars, except as otherwise noted)
As at |
|
|
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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