Trisura Group Reports First Quarter 2022 Results

TORONTO, May 05, 2022 (GLOBE NEWSWIRE) -- Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading specialty insurance provider, today announced financial results for the first quarter of 2022.

David Clare, President and CEO of Trisura, stated, “Our business performed well in the quarter, recording our highest quarterly net income to date of $21.1 million. Sustained growth and strong underwriting, supported by investment income, generated an 18.7% return on equity(1), despite continued investment in infrastructure.

Expansion of market share, and maturation of our platform drove premium growth of 55.2% in the quarter. In Canada, focused underwriting resulted in a 79.5% combined ratio(1) for the quarter. Our US business bound a quarterly record $341.7 million of gross premiums, supporting $8.4 million of net underwriting income driven by increased fee income.”

Financial Highlights

  • EPS of $0.50 in Q1 2022 compared to $0.46 in Q1 2021. Adjusted EPS(2) of $0.45 for the quarter compared to $0.40 in the prior period.

  • Book value per share(1) of $8.66 increased 15.3% from March 31, 2021, driven by strong earnings but diluted by unrealized losses on fixed income positions in the quarter.

  • Gross written premiums growth of 55.2% in Q1 2022 was supported by continued growth in Canada and strong momentum in US fronting.

  • Net income of $21.1 million in the quarter grew 9.0% compared to Q1 2021, driven by growth and profitable underwriting in Canada and the US.

  • ROE of 18.7% compared to 16.1% in Q1 2021, exceeding our mid-teens target despite significant growth.

  • Consolidated combined ratio is 72.0%, and consolidated loss ratio(1) is 26.7% for Q1 2022.

  • GPW in Canada increased by 63.2% in Q1 2022. Strong underwriting performance across all lines contributed to a combined ratio of 79.5% and a 29.8% ROE.

  • New fronting arrangements in Canada contributed $55.6 million premiums in the quarter.

  • US premium grew by 52.1% and fee income grew by 46.4% in the quarter compared to Q1 2021, reaching $341.7 million and $13.9 million, respectively. This contributed to improved net income of $6.7 million in the quarter and a 13.9% ROE.

Amounts in C$ millionsQ1 2022Q1 2021Variance
Gross premiums written481.4 310.3 55.2% 
Net income21.1 19.3 9.0% 
EPS - diluted, $0.50 0.46 8.7% 
Adjusted EPS – diluted, $0.45 0.40 12.5% 
Book value per share, $8.66 7.51 15.3% 
Debt-to-Capital ratio(1)17.4% 17.3% 0.1pts 
LTM ROE18.7% 16.1% 2.6pts 
Adjusted LTM ROE(3)18.2% 15.8% 2.4pts 
Combined ratio – Canada79.5% 65.3% 14.2pts 
Fronting operational ratio – US(1)74.7% 67.2% 7.5pts 

Insurance Operations

  • Disciplined underwriting in Canada contributed to a loss ratio of 15.7% for the quarter.

  • Growth continued in the US, with GPW of $341.7 million in the quarter, compared to $224.7 million in Q1 2021, and fee income of $13.9 million in the quarter compared to $9.5 million in Q1 2021. Growth was the result of maturing and new programs.


  • The Minimum Capital Test ratio(4) of our regulated Canadian subsidiary was 231% as at March 31, 2022 (229% as at December 31, 2021), which comfortably exceeded regulatory requirements(5) of 150%.
  • The Risk-Based Capital of the regulated insurance companies of Trisura US was in excess of the various Company Action Levels of the states in which it is licensed at March 31, 2022.
  • Consolidated debt-to-capital ratio of 17.4% as at March 31, 2022 is below our long-term target of 20.0%, providing incremental capacity for growth.


  • Interest and dividend income rose 23.9% in the quarter compared to Q1 2021. The Canadian and US portfolios benefited from improved diversification and increased capital generated from strong operational performance.

Corporate Development

  • DBRS Morningstar reaffirmed the rating of A (low) to the principal operating subsidiaries of Trisura, reaffirmed the Issuer Rating of BBB to Trisura Group Ltd., and the Senior Unsecured Notes rating of BBB to the Company’s outstanding notes.

Environmental, Social, and Governance (“ESG”)

  • Appointed Janice Madon to the Company’s Board of Directors.
  • Entered into an Amended and Restated Credit Agreement which includes a sustainability-linked loan structure.
  • Implemented a Responsible Investing Policy, which mandates the inclusion of ESG factors into the Company’s investment decisions.
  • Enhanced ESG disclosure within our Management Information Circular and Management’s Discussion and Analysis.

Earnings Conference Call

Trisura will host its First Quarter Earnings Conference Call to review financial results at 9:00 a.m. ET on Friday May 6th, 2022.

To listen to the call via live audio webcast, please follow the link below:

A replay of the call will be available through the link above.

About Trisura Group

Trisura Group Ltd. is a specialty insurance provider operating in the surety, risk solutions, corporate insurance, fronting and reinsurance segments of the market. Trisura has investments in wholly owned subsidiaries through which it conducts insurance and reinsurance operations. Those operations are primarily in Canada (“Trisura Canada”) and the United States (“Trisura US”). Trisura Group Ltd. is listed on the Toronto Stock Exchange under the symbol “TSU”.

Further information is available at Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group Ltd. are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group’s SEDAR profile at

For more information, please contact:
Name: Bryan Sinclair
Tel: 416 607 2135

Trisura Group Ltd.
Condensed Interim Consolidated Statements of Financial Position
As at March 31, 2022 and December 31, 2021
(in thousands of Canadian dollars, except as otherwise noted)

As atMarch 31, 2022 December 31, 2021 
Cash and cash equivalents304,464 341,319 
Investments603,945 641,140 
Premiums and accounts receivable, and other assets308,148 311,629 
Recoverable from reinsurers1,441,065 1,375,354 
Deferred acquisition costs321,811 304,580 
Capital assets and intangible assets20,012 17,109 
Deferred tax assets12,088 9,223 
Total assets3,011,533 3,000,354 
Accounts payable, accrued and other liabilities91,528 216,633 
Reinsurance premiums payable365,733 335,673 
Unearned premiums1,032,979 965,245 
Unearned reinsurance commissions167,754 152,003 
Unpaid claims and loss adjustment expenses921,589 897,011 
Debt outstanding75,000 75,000 
Total liabilities2,654,583 2,641,565 
Shareholders' equity356,950 358,789 
Total liabilities and shareholders' equity3,011,533 3,000,354 

Trisura Group Ltd.
Condensed Interim Consolidated Statements of Comprehensive (Loss) Income
For the three months ended March 31
(in thousands of Canadian dollars, except as otherwise noted)

 Q1 2022Q1 2021
Gross premiums written481,380 310,274 
Net premiums written108,170 77,365 
Net premiums earned88,349 52,624 
Fee income18,227 13,784 
Net investment income (loss)4,023 (5,317) 
Net (losses) gains(474) 3,834 
Total revenues110,125 64,925 
Net claims and loss adjustment expenses(23,605) (4,107) 
Net commissions(37,108) (18,559) 
Operating expenses(21,124) (17,014) 
Interest expenses(591) (187) 
Total claims and expenses (82,428) (39,867) 
Income before income taxes27,697 25,058 
Income tax expense(6,647) (5,740) 
Net income21,050 19,318 
Other comprehensive (loss) income(21,054) 762 
Comprehensive (loss) income(4) 20,080 

Trisura Group Ltd.
Condensed Interim Consolidated Statements of Cash Flows
For the three months ended March 31
(in thousands of Canadian dollars, except as otherwise noted)

 Q1 2022Q1 2021
Net income21,050 19,318 
Non-cash items4,564 10,681 
Stock options granted371 261 
Change in working capital3,298 2,453 
Realized gains(1,892) (870) 
Income taxes paid(11,634) (1,191) 
Interest paid(499) (250) 
Net cash from operating activities15,258 30,402 
Proceeds on disposal of investments53,589 36,844 
Purchases of investments(100,983) (69,935) 
Net purchases of capital and intangible assets(290) (856) 
Net cash used in investing activities(47,684) (33,947) 
Shares issued551 257 
Shares purchased under Restricted Share Units plan(2,106) (1,814) 
Loans received- 26,970 
Loans repaid- (27,555) 
Lease payments(502) (334) 
Net cash used in financing activities(2,057) (2,476) 
Net decrease in cash and cash equivalents(34,483) (6,021) 
Cash and cash equivalents, beginning of period341,319 136,519 
Currency translation(2,372) (849) 
Cash and cash equivalents, end of period304,464 129,649 

Non-IFRS Financial Measures

Reconciliation of reported Net income to Adjusted net income(6): reflect Net income, adjusted for certain items to normalize earnings to core operations in order to better reflect our North American specialty operations.

  Q1 2022 Q1 2021
Net income 21,050 19,318 
Impact of share-based compensation(3,142) 2,753 
Net losses (gains)474 (3,834) 
Net losses (gains) from life annuity77 (1,455) 
Tax impact of above items544 210 
Adjusted net income19,003 16,992 

Reconciliation of Average equity(7) to LTM average equity: LTM average equity is used in calculating adjusted ROE.

   Q1 2022 Q1 2021
Average equity 332,856  247,991  
Adjustments: days in quarter proration, equity raise in Q2 202010,131  20,898  
LTM average equity 342,987  268,889  


(1) This is a supplementary financial measure. Refer to Q1 2022 MD&A, Section 10, Operating Metrics table for its composition. To access MD&A, see Trisura’s website or SEDAR at

(2) This is a non-IFRS ratio, see table 10.2 in Q1 2022 MD&A for details on composition, as well as each non-IFRS financial measure used as a component of ratio, and an explanation of how it provides useful information to an investor. Non-IFRS ratios are not standardized under the financial reporting framework used to prepare the financial statements of the Company to which the ratio relates and might not be comparable to similar ratios disclosed by other companies.

(3) This is a non-IFRS ratio. See table 10.4 in Q1 2022 MD&A for details on composition, as well as each non-IFRS financial measure used as a component of ratio, and an explanation of how it provides useful information to an investor.

(4) This measure is calculated in accordance with the Office of the Superintendent of Financial Institutions Canada’s (OSFI’s) Guideline A, Minimum Capital Test.

(5) This target is in accordance with OSFI’s Guideline A-4, Regulatory Capital and Internal Capital Targets.

(6) See section on Non-IFRS financial measures, Reconciliation of reported Net income to Adjusted net income. Adjusted net income is a non-IFRS financial measure. Non-IFRS financial measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Company to which the measure relates and might not be comparable to similar financial measures disclosed by other companies. Details and an explanation of how it provides useful information to an investor can be found in the reconciliation table.

(7) Average equity is calculated as the sum of opening equity and closing equity over the last twelve months, divided by two.

Cautionary Statement Regarding Forward-Looking Statements and Information

Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Company and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “likely,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could”.

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of our Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: developments related to COVID-19, including the impact of COVID-19 on the economy and global financial markets; the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behaviour of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; changes in capital requirements; changes in reinsurance arrangements; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes or pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; and other risks and factors detailed from time to time in our documents filed with securities regulators in Canada.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

Cautionary Non-IFRS and Other Financial Measures

Reported results conform to generally accepted accounting principles (GAAP), in accordance with IFRS. In addition to reported results, the Company also presents certain financial measures, including non-IFRS financial measures that are historical, non-IFRS ratios, and supplementary financial measures, to assess results. Non-IFRS financial measures, such as adjusted net income, are utilized to assess the Company’s overall performance. To arrive at adjusted results, the Company adjusts for certain items to normalize earnings to core operations, in order to better reflect our North American specialty operations. Non-IFRS ratios include a non-IFRS financial measure as one or more of its components. Examples of non-IFRS ratios include adjusted diluted earnings per share and adjusted ROE. The Company believes that non-IFRS financial measures and non-IFRS ratios provide the reader with an enhanced understanding of our results and related trends and increase transparency and clarity into the core results of the business. Non-IFRS financial measures and non-IFRS ratios are not standardized terms under IFRS and, therefore, may not be comparable to similar terms used by other companies. Supplementary financial measures depict the Company’s financial performance and position, and are explained in this document where they first appear, and incorporates information by reference to the Company’s current MD&A, for the three months ended March 31, 2022. To access MD&A, see Trisura’s website or SEDAR at These measures are pursuant to National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure.