Trisura Group Reports Third Quarter 2023 Results

TORONTO, Nov. 02, 2023 (GLOBE NEWSWIRE) -- Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU), a leading specialty insurance provider, today announced financial results for the third quarter of 2023.

David Clare, President and CEO of Trisura, stated, “Trisura reported strong performance in the quarter with Operating net income of $31.7 million, or $0.67 per share, achieved through measured growth, underwriting profitability and enhanced investment income. Quarterly Net income of $14.8 million, or $0.31 per share, was impacted by the run-off of a US program and unrealized losses in the investment portfolio, partially offset by one-time benefits in the primary lines business.

Maturation of our business and continued expansion with distribution partners drove increased market share and resulted in insurance revenue growth of 32.7%. In Canada, disciplined underwriting yielded a Combined ratio of 75.0%. US fronting demonstrated strong fundamentals, with an improvement in Operating net income.

Net investment income grew 105.0% in the quarter, reaching $13.5 million through higher risk-adjusted yields and an increased size of the investment portfolio.

Strong earnings and an equity raise in the quarter lifted book value to almost $600 million. Our business remains well-capitalized, supported by surplus capital, a $50 million revolving credit facility, an 11.1% debt-to-capital ratio and a conservatively positioned investment portfolio.”

Financial Highlights

  • Insurance revenue growth of 32.7% in Q3 2023 reflected sustained momentum across North America.
  • Net income of $14.8 million in the quarter decreased compared to prior period, primarily as a result of costs related to the run-off of a US fronting program. Operating net income(1) of $31.7 million in the quarter grew 50.2% compared to prior period, driven by profitable growth in Canada and growth in core operations(2) in the US, as well as growth in Net investment income.
  • EPS of $0.31 in Q3 2023 compared to $0.53 in Q3 2022. Operating EPS(3) of $0.67 for the quarter compared to $0.46 in the prior year.
  • Book value per share(4) of $12.58 increased 7.4% from September 30, 2022, driven by our August 2023 equity raise, strong Canadian earnings, but diluted by the write down on reinsurance recoverables, the associated run-off and unrealized losses on investments.
  • ROE(4) of 2.8% compared to 19.9% in Q3 2022, below our mid-teens target as a result of the write down on reinsurance recoverables and losses associated with the run-off program. Operating ROE(5) of 20.2% exceeded our target, demonstrating the strength of our core operations despite significant growth and a larger capital base.

Amounts in C$ millionsQ3 2023Q3 2022VarianceQ3 2023
Q3 2022
Insurance revenue730.7 550.9 32.7% 2,034.2 1,419.2 43.3% 
Net income14.8 24.2 (38.7%) 55.6 68.5 (18.8%) 
Operating net income(1)31.7 21.1 50.2% 84.3 59.7 41.2% 
EPS – diluted, $0.31 0.53 (41.5%) 1.18 1.58 (25.3%) 
Operating EPS – diluted, $(3)0.67 0.46 45.7% 1.80 1.38 30.4% 
Book value per share, $(4)12.58 11.71 7.4% 12.58 11.71 7.4% 
Debt-to-Capital ratio(4)(11)11.1% 12.5% (1.4pts) 11.1% 12.5% (1.4pts) 
ROE(4)2.8% 19.9% (17.1pts) 2.8% 19.9% (17.1pts) 
Operating ROE(5)20.2% 19.2% 1.0pts 20.2% 19.2% 1.0pts 
Combined ratio – Canada75.0% 81.8% (6.8pts) 79.3% 79.8% (0.5pts) 
Fronting operational ratio – US(4)117.2% 83.9% 33.3pts 101.0% 79.3% 21.7pts 
Fronting operational ratio excluding run-off – US(6)85.5% 83.9% 1.6pts 83.9% 79.3% 4.6pts 

Insurance Operations

  • Insurance revenue in Canada of $221.1 million in the quarter increased by 30.2% compared to Q3 2022, reflecting increased market share, expansion of distribution relationships, new fronting arrangements and the benefit of stable market pricing conditions in certain lines of business. Strong underwriting performance across all lines contributed to a Combined ratio of 75.0%, a ROE of 28.8% and Operating ROE of 29.7% in Q3 2023.
  • Insurance revenue in the US of $509.6 million in the quarter increased by 33.7%, compared to Q3 2022, reflecting favourable market conditions and maturation of existing programs. Fee income(7) of $20.8 million in the quarter increased by 14.1% compared to Q3 2022. Net loss of $6.5 million was the result of costs related to the run-off. Operating net income of $11.4 million in the quarter grew 51.9% compared to Q3 2022 and supported a 15.2% Operating ROE.


  • In August 2023, the Company raised $51.2 million in equity capital to support growth across the platform.
  • The Minimum Capital Test ratio(8) of our regulated Canadian subsidiary was 246% as at September 30, 2023 (233% as at December 31, 2022), which comfortably exceeded regulatory requirements(9) of 150%.
  • As at December 31, 2022, the Risk-Based Capital of the regulated insurance companies of Trisura US were in excess of the various company action levels of the states in which they are licensed.
  • Consolidated debt-to-capital ratio of 11.1% as at September 30, 2023 is below our long-term target of 20.0%.
  • The company holds surplus capital and has a $50 million revolving credit facility. In July 2023, $10 million USD was utilized from the revolving credit facility for purposes of issuing a letter of credit, in relation to our US Surety operations.


  • Net investment income rose 105.0% in the quarter compared to Q3 2022. The portfolio benefited from higher risk-adjusted yields, increased capital generated from strong operational performance and the July 2022 and August 2023 equity raises.

Earnings Conference Call

Trisura will host its Third Quarter Earnings Conference Call to review financial results at 9:00 a.m. ET on Friday, November 3rd, 2023.

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, and Fronting business lines 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 September 30, 2023 and December 31, 2022
(in thousands of Canadian dollars, except as otherwise noted)
As atSeptember 30, 2023December 31, 2022
Cash and cash equivalents531,484 406,368 
Investments842,260 765,375 
Other assets34,865 61,852 
Reinsurance contract assets1,948,477 1,527,799 
Capital assets and intangible assets17,154 19,529 
Deferred tax assets30,669 17,942 
Total assets3,404,909 2,798,865 
Insurance contract liabilities2,617,452 2,165,103 
Other liabilities113,771 65,111 
Loan payable75,000 75,000 
Total liabilities2,806,223 2,305,214 
Shareholders' equity598,686 493,651 
Total liabilities and shareholders' equity3,404,909 2,798,865 

Trisura Group Ltd.
Condensed Interim Consolidated Statements of Comprehensive Income
For the three and nine months ended September 30
(in thousands of Canadian dollars, except as otherwise noted)
 Q3 2023Q3 2022Q3 2023 YTDQ3 2022 YTD
Insurance revenue730,714 550,861 2,034,234 1,419,173 
Insurance service expenses(562,419) (547,859) (1,630,079) (1,268,481) 
Net (expense) income from reinsurance contracts assets(143,546) 25,588 (322,979) (67,744) 
Insurance service result24,749 28,590 81,176 82,948 
Net investment income13,493 6,583 35,463 15,683 
Net (losses) gains(8,708) 3,723 (17,790) 4,690 
Net credit impairment losses(258) - (31) - 
Total investment income4,527 10,306 17,642 20,373 
Finance (expenses) income from insurance contracts(11,521) (622) (48,159) 11,982 
Finance income (expenses) from reinsurance contracts10,623 903 42,248 (9,765) 
Net insurance finance (expenses) income(898) 281 (5,911) 2,217 
Net financial result3,629 10,587 11,731 22,590 
Net insurance and financial result28,378 39,177 92,907 105,538 
Other income847 663 6,927 5,860 
Other operating expenses(7,094) (8,097) (22,601) (19,429) 
Other finance costs(643) (823) (1,844) (2,056) 
Income before income taxes21,488 30,920 75,389 89,913 
Income tax expense(6,650) (6,696) (19,768) (21,408) 
Net income14,838 24,224 55,621 68,505 
Operating net income31,725 21,116 84,327 59,730 
Other comprehensive income (loss)1,826 (297) (2,124) (43,754) 
Comprehensive income16,664 23,927 53,497 24,751 

Trisura Group Ltd.
Condensed Interim Consolidated Statements of Cash Flows
For the three and nine months ended September 30
(in thousands of Canadian dollars, except as otherwise noted)
 Q3 2023Q3 2022Q3 2023 YTDQ3 2022 YTD
Net income14,838 24,224 55,621 68,505 
Non-cash items8,758 (5,035) 16,991 1,232 
Change in working capital130,075 17,995 93,736 69,569 
Realized losses (gains)1,740 (1,625) 2,181 (6,979) 
Income taxes paid(432) (7,305) (8,105) (28,829) 
Interest paid(85) (110) (1,324) (1,606) 
Net cash from operating activities154,894 28,144 159,100 101,892 
Proceeds on disposal of investments36,619 22,227 89,598 120,083 
Purchases of investments(52,352) (156,651) (178,120) (333,318) 
Net purchases of capital and intangible assets(339) (1,327) (746) (1,734) 
Net cash used in investing activities(16,072) (135,751) (89,268) (214,969) 
Shares issued50,859 143,494 51,570 145,160 
Shares purchased under Restricted Share Units plan(175) (61) (1,845) (2,167) 
Loans received- - - 30,000 
Loans repaid- (30,000) - (30,000) 
Lease payments(502) (477) (1,524) (1,424) 
Net cash from financing activities50,182 112,956 48,201 141,569 
Net increase in cash and cash equivalents,
and short-term securities, during the period
189,004 5,349 118,033 28,492 
Cash and cash equivalents, beginning of period340,825 367,966 406,368 341,319 
Currency translation1,655 11,238 7,083 14,742 
Cash and cash equivalents, and short-term securities, end of period531,484 384,553 531,484 384,553 

Non-IFRS Financial Measures

Table 1 – Reconciliation of reported Net income to Operating net income(4): reflect Net income, adjusted for certain items to normalize earnings to core operations in order to reflect our North American specialty operations.

 Q3 2023Q3 20222023 2022 
Net income 14,838 24,224 55,621 68,505 
Non-recurring items15,375 - 23,437 - 
Impact of share based compensation(1,948) 441 (3,503) (2,507) 
Impact of movement in yield curve within Finance income from insurance and reinsurance contracts(1,204) (421) (1,348) (3,986) 
Net losses (gains)8,708 (3,723) 17,790 (4,690) 
Net credit impairment losses258 - 31 - 
Tax impact of above items(4,302) 595 (7,701) 2,408 
Operating net income 31,725 21,116 84,327 59,730 

Table 2 – ROE
(4) and Operating ROE(5): a measure of the Company’s use of equity.

 Q3 2023Q3 2022
LTM net income14,911 75,286 
LTM average equity526,049 377,778 
ROE2.8% 19.9% 
Operating LTM net income(5)106,253 72,489 
LTM average equity526,049 377,778 
Operating LTM ROE20.2% 19.2% 

Table 3 – Reconciliation of Average equity
(10) to LTM average equity: LTM average equity is used in calculating Operating ROE.

  Q3 2023Q3 2022
Average equity567,857 438,032 
Adjustments: days in quarter proration(41,808) (60,254) 
LTM average equity 526,049  377,778 


(1) See section on Non-IFRS financial measures table 10.2.1 in Q3 2023 MD&A for details on composition. Operating 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 table 1.

(2) See Section 10, Operating Metrics in Q3 2023 MD&A for the definition of Operating Net Income, and for further explanation of “core operations”.

(3) This is a non-IFRS ratio, see table 10.2 in Q3 2023 MD&A for details on composition, as well as each non-IFRS financial measure used as a component of the 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. To access MD&A, see Trisura’s website or SEDAR at

(4) This is a supplementary financial measure. Refer to Q3 2023 MD&A, Section 10, Operating Metrics table for its composition.

(5) This is a non-IFRS ratio. See table 10.4 in Q3 2023 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.

(6) This is a non-IFRS financial measure. Adjusted figures exclude the impacts from write down of reinsurance recoverables, and the run-off program.

(7) This is a non-IFRS financial measure. See table 10.5.5 in Q3 2023 MDA for details on composition.

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

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

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

(11) The Q3 2022 and Q3 2022 YTD metric has not been restated to reflect the adoption of IFRS 9 and IFRS 17.

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 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: 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; insurance risks including pricing risk, concentration risk and exposure to large losses, and risks associated with estimates of loss reserves; 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 and availability and cost of reinsurance; ability to collect amounts owed; catastrophic events, such as earthquakes, hurricanes or pandemics; developments related to COVID-19, including the impact of COVID-19 on the economy and global financial markets; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; risks associated with reliance on distribution partners, capacity providers and program administrators; third party risks; risk that models used to manage the business do not function as expected; climate change risk; risk of economic downturn; risk of inflation 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 operating net income, are utilized to assess the Company’s overall performance. To arrive at operating results, the Company adjusts for certain items to normalize earnings to core operations, in order to 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 operating diluted earnings per share and operating 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 and nine months ended September 30, 2023. 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.