Trisura Investor Presentation - February 2022 - Insurance News

A Growing International Specialty Insurer

February 2022

A Growing International Specialty Insurer

• Anchored by Canadian specialty lines franchise operating for 15 years

Diversified Specialty	• Fee-based U.S. hybrid fronting platform with strong premium growth and profitability
Insurance Platform
• Reinsurance subsidiary provides flexibility, capital support and internal reinsurance


	• Conservative debt-to-capital1 of 17.3% and capital in excess of regulatory requirements in subsidiaries
Strong Balance Sheet	• Issuer rating of BBB (DBRS); Financial Strength ratings of A (low) (DBRS) and A- (AM Best) at operating subsidiaries
• Consistent profitability: 19% consolidated LTM Q4/21 ROE1; 5-year average 86% combined ratio1,2 in Canada and 30% LTM
and Credit Profile
Q4/21 ROE; increasing profitability from U.S. subsidiary reaching a 14% LTM Q4/21 ROE

	• Conservative approach to reserving; consistent history of favourable prior year claims development

Well-Funded Growth	• 5-year average 39%2 growth in GPW & Fee Income in Canada
• U.S. platform launched in 2018, is the largest contributor to premiums and demonstrating increased profitability
Opportunities
• Proven access to capital (raised $126 million in equity and $75 million in debt) and reinsurance relationships to support
Across the Platform
	growth

	• High quality investment portfolio comprised primarily of cash (35%), government bonds (11%), and corporate fixed income
Conservative and	(34%); and conservative allocation to alternatives
• Conservative underwriting culture; limited retention in U.S. and 5-year average loss ratio of 23%1,2 in Canada
Disciplined Approach
to Risk Management	• Disciplined reinsurance strategy; deep relationships with high-quality counterparties
	• Strong enterprise risk management infrastructure in place

Globally Experienced	• Management team with a diversity of skills, and strong relationships with regulators and distribution partners; senior
Management Team &	management directly owns ~6% of shares outstanding
Board of Directors	• Board of Directors comprised of seasoned executives with strong experience across financial services

International Specialty Insurer Targeting Mid-teens ROEs and Growth in Book Value

Note: All figures in C$ million unless otherwise stated.	1
1	This is a supplementary financial measure. Refer to Q4 2021 MD&A, Section 10, Operating Metrics table for its composition. To access MD&A, see Trisura's
	website or SEDAR at www.sedar.com.
2	As of December 31st, 2021.

Company Overview

Trisura Group Ltd. (TSX: TSU) is a publicly traded international specialty insurer operating in the surety, risk solutions, corporate insurance, fronting and reinsurance market segments
Trisura operates in niche segments, relying on focused underwriting knowledge and structuring expertise to offer commercial products and services not provided by most insurers
Components of Trisura were founded and incubated within Brookfield Asset Management; reinsurance subsidiary capitalized in 2001, Canadian specialty insurance in 2006 and U.S. fronting in 2017 prior to spin-out

Canada			U.S.
• 15-year operating history in surety, risk		• Hybrid fronting business that works with
solutions and corporate insurance segments;		distribution partners and cedes majority of risk
strong track record of profitable underwriting		to reinsurance markets
• FY 2021 GPW: $564 million		• FY 2021 GPW: $1 billion
• FY 2021 Net Income: $41 million, 30% ROE		• FY 2021 Net Income: $27 million, 14% ROE
• DBRS Rating: A (Low)			• DBRS Rating: A (Low)
• A.M. Best Rating: A- (Excellent) Size 9		• A.M. Best Rating: A- (Excellent) Size 9
Key Performance Metrics

$2.0 billion		$359 million		$1.6 billion	$63 million
Q4/21		Q4/21		FY 2021	FY 2021
Market Cap		Book Value		GPW	Net Income

+115% Y/Y	+24% Y/Y		+69% Y/Y	+93% Y/Y

International

P&C reinsurance platform; legacy policies have been in run-off since 2008
Provides flexibility, capital support and internal captive reinsurance
Q4/21 reserves: $13 million

19%		17.3%
Return		Q4/21
on Equity		Debt-to-Capital

+6pts Y/Y	+9pts Y/Y

Established Canadian Specialty Platform and Growing U.S. Fronting Business

Note: All figures in C$ million unless otherwise stated.

Track Record of Growth

Cumulative Share Price Performance1 and GPW Growth ($ millions)

Trisura

TSX Financials

S&P/TSX

Consolidated LTM GPW

524%

$1,563 / +922%

$153	40%
33%

Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Current2

Key Achievements

June - December 2017: Completed spin-off from Brookfield, developed public company infrastructure and U.S. capabilities
May - December 2018: Enhanced corporate governance and risk management functions through dedicated board committees and personnel
December 2018: Completed internalization of investment function across all three subsidiaries
September 2019: Completed inaugural equity raise of $58 million
November 2019: Completed the acquisition of 21st Century Preferred Insurance Company, providing access to admitted markets in the U.S.
May 2020: Completed $68 million equity raise and increased capacity on revolving credit facility to $50 million
January - December 2021: Grew consolidated gross premiums written by 69%, net income by 93%, with a 19% ROE

Canada: Grew gross premiums written by 102%, with an 81% combined ratio and 30% ROE

U.S.: Grew gross premiums written by 54%, fee income by 77%, with a 14% ROE

June - July 2021: Completed $75 million senior unsecured notes offering and executed a four-for-one common share split

Note: All figures in C$ million unless otherwise stated.	3
1	Cumulative share price performance measured from close of business December 31st, 2017.
2	'Current' as at February 11th, 2022.

Strategic Priorities

		Near Term		Long Term
	• Gain Admitted state licenses and scale Admitted business	• Build fronting model of scale in U.S. Admitted markets
Growth	•	Support trajectory of growth and profitability in Canada	•	Expand North American insurance market share
	•	Evaluate strategic partnerships and inorganic growth	•	Expand distribution and capacity relationships

Maintain underwriting focus and product expertise to continue track record of strong loss ratio performance

Profitability

Leverage technology infrastructure to drive scalability and enhance partnerships with capacity providers

Demonstrate value of specialty focus through underwriting margin outperformance
Diversify earnings to reduce volatility
Gain scale, demonstrating sustainable mid-teens ROE

Risk & Capital	• Synchronize risk management through regional platforms

Management	• Integrate captive reinsurance, optimize retention

Maintain and improve ratings and appropriate regulatory capital
Optimize capital allocation, reflecting appropriate capitalization for investment, reinsurance and underwriting risks

Investments /

Capital Markets

Increase allocation to alternatives, including commercial real estate, private loans and infrastructure debt
Develop track record of execution, expand shareholder base and distribution partners

Enhance yield while maintaining stable risk profile and improving diversification
Strengthen access to capital

Centralized Corporate Function Providing Support for Operating Subsidiaries to Grow

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Disclaimer

Trisura Group Ltd. published this content on 15 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2022 16:53:23 UTC.