TSU - Trisura

[snowball82]

Yes and David Clare was the former CFO of Partners Value Investments.

What’s the compensation structure for management?

The gold standard is Markel. Their bonus is based on a rolling 5 year average book value per share.

I'm also interested to see the details. I guess the largest shareholder should look it too. Partners Value Investment LP owns 18,2 %.

https://globenewswire.com/news-release/2018/10/30/1639139/0/en/Partners-Value-Investments-LP-Acquires-Common-Shares-of-Trisura-Group-Ltd.html

His letter to shareholders is very interesting. He wrote they have the capacity to write over $ 200 million annual premiums with the current capital. If I understand well it is only for US.

[investmd]

My position is based on three reasons. A) the insurance business if done right is a compounding machine  B) it's a microcap so the runway for growth is significant  C) management has experience, expectations, and backing of a firm 100x larger.

I have a simple question.   I have the hardest time finding the investor relations page for Trisura.   It seems that they change it. If anyone has it, please post.  Thank you!

Agree with the rationale. Thank you.
However, TSU has been trading between $25 &  $27 for past 18 months. What is the driver that will unlock the value so that rest of market sees it? Time frame?

[snowball82]

My position is based on three reasons. A) the insurance business if done right is a compounding machine  B) it's a microcap so the runway for growth is significant  C) management has experience, expectations, and backing of a firm 100x larger.

I have a simple question.   I have the hardest time finding the investor relations page for Trisura.   It seems that they change it. If anyone has it, please post.  Thank you!

Agree with the rationale. Thank you.
However, TSU has been trading between $25 &  $27 for past 18 months. What is the driver that will unlock the value so that rest of market sees it? Time frame?

The execution in US should be the key. IMO

I heard BMO and Cormark EPS estimates for the current quarter (dec. 2018) were $ 0.20. The company reports $ 0.24.

The last time I saw the estimates, the analysts were guessing 68 % earnings growth for next year. I didn't see the last analysts reports. Maybe those numbers are now differents. Is there someone here having the new estimates ?

[Broeb22]

The business TSU is building in US is like SNC which MKL acquired at 2.7x book. So there is a lot of opportunity for multiple to reflect this business model as well as fundamentals continuing to grow.

[chrispy]

What is the fronting market they describe developing/growing in the US? I'm not familiar

[petec]

I'm intrigued that BAM spun this. One thing missing from the BAM universe seems to me to be an equivalent of TPRE and GLRE - a big insurer that invests float in the various BAM credit and equity funds. Could add billions to fee-paying AUM for the mother ship. I wonder why they haven't gone this route - they must have considered it, and Trisura could have been the seed.

[snowball82]

The business TSU is building in US is like SNC which MKL acquired at 2.7x book. So there is a lot of opportunity for multiple to reflect this business model as well as fundamentals continuing to grow.

Broeb22 I like your reference to State National. At the time Markel bought them, they were -likely- the largest pure-play insurance fronting business in US. If my reference is right, they got up to $ 1.3 billion in gross written premium in 2017 and offered 60 programs.

Trisura has only 14 programs in US.

[snowball82]

What is the fronting market they describe developing/growing in the US? I'm not familiar

chrispy I'm also interested to learn more about that market. Management also said they are interested to look for acquisitions in this fragmented sector.

I'm looking some players in that fields to learn more about the economics. James River (JRVR) and Kinsale (KNSL) seems to be good potential comparables. That said TSU is a small microcap company. JRVR and KNSL are much bigger and well establish than TSU. The execution risk is higher with TSU. Trisura doesn't have a long track record in US.

Please let us know if you get more info.

[MarioP]

I'm intrigued that BAM spun this. One thing missing from the BAM universe seems to me to be an equivalent of TPRE and GLRE - a big insurer that invests float in the various BAM credit and equity funds. Could add billions to fee-paying AUM for the mother ship. I wonder why they haven't gone this route - they must have considered it, and Trisura could have been the seed.

Yesterday i checked in the investor relation looking to see which percentage of the float was invested in in BAM funds and I was surprised to find nothing.

Look at page 15 of the AGM presentation

http://www.trisura.com/wp-content/uploads/2018/05/Trisura-2018-AGM-1.pdf

Did I missed something?

[snowball82]

I'm intrigued that BAM spun this. One thing missing from the BAM universe seems to me to be an equivalent of TPRE and GLRE - a big insurer that invests float in the various BAM credit and equity funds. Could add billions to fee-paying AUM for the mother ship. I wonder why they haven't gone this route - they must have considered it, and Trisura could have been the seed.

Yesterday i checked in the investor relation looking to see which percentage of the float was invested in in BAM funds and I was surprised to find nothing.

Look at page 15 of the AGM presentation

http://www.trisura.com/wp-content/uploads/2018/05/Trisura-2018-AGM-1.pdf

Did I missed something?

Bonjour Mario, why is this a surprise to you ?