AssessmentThoughts on Trisura’s quarter? Is there a chance this company makes its way onto your favourite small caps list at some point? Especially considering it’s Mawers top holding. EPS of $0.75 beat estimates of $0.625 and revenues of $744.3M beat estimates of $730.3M. Insurance revenue grew by 16.5% for the quarter, led by market share expansion and its Canadian segment reported a strong combined ratio of 81.8%. Net investment income grew significantly for the quarter. Operating ROE was 20.0% and its ROE returned to the mid-teens target, at 15.3%. It appears as though the costs associated with the run-off program that plagued it in 2023 will be in the rearview mirror now, and overall these are solid results. We think investors should be pleased with these results and the company's ability to return to operational strength in achieving a 15% ROE.
If we continue to see better-than-expected results, multiple expansion closer to the average of its peers, we could see this name potentially moving into a 'favorite' position at some point, but we will need to assess how it continues to trade and operate. (5iResearch)