Trisura Group has published its latest financial results, showcasing strong performance for the first quarter of the year.
Unveiling its first quarter financials, the specialty insurance provider reported an operating net income of $28.6 million or $0.61 per share, up 38.5% from the prior period.
Insurance revenue also grew by 58.3%, which Trisura attributed to profitable growth in Canada and core operations in the US.
The Canadian segment of the business was revealed to have achieved a combined ratio of 80.7% and an ROE of 28.4%, driven by strong underwriting performance across all lines.
Meanwhile, Trisura’s US fronting business produced $459.3 million of insurance revenue, reporting a deferred fee income of $35.9 million.
Insurance revenue increased by 33.2% in Canada and 70.9% in the US, according to Trisura’s first quarter earnings release.
The growth in Canada is said to reflect increased market share, expansion of distribution relationships, new fronting arrangements and the benefit of stable market pricing conditions in certain lines of business, while the increase in the US is indicative of market conditions and the maturation of existing programs.
Commenting on these results, president and CEO David Clare said Trisura’s first quarter had been impacted by the implementation of new IFRS standards and the run-off of a US program, which resulted in a quarterly net income of $14.0 million or $0.30 per share.
Clare said the business remains “well-capitalized,” supported by surplus cash, as well as a $50 million undrawn revolver, a 12.8% debt to capital ratio, and a conservatively positioned investment portfolio.
Net investment income also grew 150.3% in the quarter, he said, reflecting higher yields and an increased size of the investment portfolio.
“Expansion of distribution relationships and maturation of our platform drove increased market share and resulted in insurance revenue growth of 58.3%,” Clare said.
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