Specialty insurance provider Trisura Group has reported net income of CA$19.3 million in the first quarter (Q1) of 2021, an increase of 130.8% over the prior year quarter.
Trisura attributed the jump in net income to strong growth and underwriting in Canada, growing profitability in the US, and improved asset liability matching in its reinsurance business and investment gains. The firm generated return on equity (ROE) of 16.1% compared to 6.8% in Q1 2020.
The group saw gross written premium (GWP) growth of 82.6% in the quarter, which was supported by continued momentum in its US fronting business, as well as significant growth in Canada, where the GWP increased by 73.7% in the three months ending March 31.
In Canada, Trisura reported strong underwriting performance across all lines, with a loss ratio of 13.3% for the quarter, contributing to a 65.3% combined ratio and a 27.4% return on equity (ROE).
“Trisura’ s momentum continued in the first quarter of 2021, with net income of CA$19.3 million, an increase of 130.8% over the prior year,” said David Clare, president and CEO of Trisura. “Strong underwriting performance and premium growth, supported by investment gains, contributed to a 16.1% return on equity, meeting our mid-teens target ahead of plan.
“Premium growth was significant, increasing 82.6% over the prior year, while disciplined underwriting in Canada contributed to an industry-leading 65.3% combined ratio. Our US business sustained its trajectory of growth, binding a new record CA$224.7 million of gross premiums, and generating CA$6.4 million in net income. Reinsurance contributed to earnings through appropriate asset liability matching.
“Our balance sheet is well-funded to support future growth, with flexibility afforded by our 8.0% debt-to-capital ratio and a newly achieved investment grade rating.”