Very strong results for Q1 2019.
Trisura Group Reports First Quarter 2019 Results Book Value Per Share Increased to $20.41
TORONTO, May 09, 2019 -- Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading international specialty insurance holding company, today announced financial results for the first quarter of 2019.
David Clare, CEO of Trisura, stated, “Strong performance from both our Canadian and U.S. subsidiaries demonstrated continued progress on our strategic priorities in the first quarter. In Canada, robust top line growth and underwriting profitability, generated industry-leading returns on equity. Our U.S. platform produced over $41 million in gross premiums written, $1 million in fee income, generating its first profitable quarter.”
Highlights
• Gross premiums written growth of 133.7% in Q1 2019, driven by continued growth in our Canadian Specialty P&C business and strong momentum in our US Specialty business.
• Net income in Q1 2019 of $2.5 million, an increase of $0.7 million over Q1 2018, driven by our Canadian Specialty P&C business and supported by profitability from our US Specialty business.
• Consolidated ROE (trailing 12 months) of 7.2% at March 31, 2019, compared to 6.9% at December 31, 2018 and 5.6% at September 30, 2018.
• Strong Q1 2019 results from our Canadian Specialty P&C business, achieving an 83.5% combined ratio, driving a 21.3% ROE for the trailing 12 months.
• Basic and diluted EPS of $0.38 and $0.37 in Q1 2019 respectively, compared to $0.28 and $0.27 in Q1 2018.
• Book value per share of $20.41, a 9.3% increase over March 31, 2018.
Amounts in millions of Canadian dollars
Q1 2019
Q1 2018
Variance
Gross Premiums Written
Net Premiums Written
Net Underwriting (Loss) Income
Net Investment Income
Net Income
EPS – Basic, $
EPS – Diluted, $
Book Value Per Share, $
Debt-to-Capital Ratio
ROE Trailing Twelve Months (“TTM”) Combined Ratio - Canadian Specialty P&C Canadian Specialty P&C ROE - TTM
81.4 28.4 (8.3)
4.6
2.5 0.38 0.37 20.41 18.0% 7.2% 83.5% 21.3%
34.8 23.9 1.2 1.9 1.9 0.28 0.27 18.68 19.4% 4.6%* 83.6% 14.5%
133.7% 18.8% nm 140.6% 35.1% 34.5% 36.3% 9.3% (1.4pts) 2.6pts (0.1pts) 6.8pts
*For period after spin-off from Brookfield Asset Management Inc. on June 22, 2017 (annualized)
Underwriting
• Excellent performance from our Canadian Specialty insurance operations, achieving GPW growth of 17.8% driven by Risk Solutions and Surety and an 83.5% combined ratio driven by strong results in Surety and improved claims experience in Corporate Insurance.
• Strong and accelerating premium growth in our US Specialty platform, with GPW of $41.9 million in Q1 2019 compared to $53.7 million in fiscal 2018. Earned fee income of $1 million helped support our first profitable quarter in the U.S.
• Weakening interest rates in Europe drove reserve strengthening in our Reinsurance subsidiary, largely offset by investment income and gains from a legal settlement.
Capital
• The minimum capital test (“MCT”) ratio of our Canadian subsidiary was 242% as at March 31, 2019 (239% as at December 31, 2018), which comfortably exceeds regulatory requirements of 150%.
• Trisura Specialty’s capital of $66.8 million as at March 31, 2019 ($66.5 million as at December 31, 2018) was in excess of the minimum Risk Based Capital Ratio requirement of the Oklahoma Insurance Department.
• Trisura International’s capital of $27.6 million as at March 31, 2019 ($28.7 million as at December 31, 2018) was sufficient to meet the FSC’s regulatory capital requirement.
• Consolidated debt-to-capital ratio of 18.0% as at March 31, 2019 is below our long-term target of 20%.
Investments
• Net investment income of $4.6 million in Q1 2019 compared to $1.9 million in Q1 2018.
• In Canada, interest and dividend income increased 61.1% over the prior period as we continued to benefit from the reallocation of the Canadian portfolio.
• Investment income related to the Reinsurance portfolio increased due to gains from declining interest rates in our sovereign bond portfolio.
• A legal settlement related to our structured insurance asset generated a significant windfall in the quarter.
About Trisura Group
