Trisura Group Ltd T.TSU

Alternate Symbol(s): TRRSF

Financial Services Insurance - Property & Casualty

Trisura Group Ltd. is a specialty insurance provider. The Company is engaged in operating in surety, risk solutions, corporate insurance, and fronting business lines of the market. It has investments in subsidiaries through which it conducts insurance and reinsurance operations. Those operations are primarily in Canada (Trisura Canada) and the United States (Trisura US). Its segments include the operations of Trisura Canada, comprising surety business underwritten in both Canada and the United States, and risk solutions, fronting and corporate insurance products primarily underwritten in Canada and Trisura US, which provides specialty fronting insurance solutions underwritten in the United States. The main products offered by its surety business line are contract surety bonds, commercial surety bonds, developer surety bonds, and new home warranty insurance. Its contract surety bonds, such as performance and labor and material payment bonds, are primarily for the construction industry.

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Trisura Group Ltd

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Post by retiredcfon Nov 04, 2022 8:27am

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Post# 35072343

TD

This is a flash report so there's potential for them to raise their current target of $53.00. GLTA

Trisura Group Ltd.

(TSU-T) C$40.78

Q3/22 First Look Event

Trisura reported Q3/22 results. The company is hosting a conference call this morning at 9:00 a.m. (webcast).

Impact: POSITIVE

Trisura reported EPS of $0.51 (up 36% y/y) vs. our estimate of $0.37 and consensus of $0.36. Adjusted EPS and ROE (TTM) came in at $0.45 (up 11% y/ y) and 19.2%, respectively. BVPS was up 33% sequentially, reflecting the $144mm equity raise. The company continues to deliver strong results across nearly all metrics (GPW, loss ratios, underwriting income) and prove out the scalability of its platform. Despite the stock rallying in recent weeks, we would expect it to trade higher on these results.

Gross premiums written (GPW) of $645mm were flat q/q and up 59% y/y and were well above our forecast of $623mm, driven by higher-than-expected premiums in the U.S. and strong growth in Canada.

U.S.: The U.S. business continued its momentum with GPW of $466mm (our estimate $443mm), up 4% q/q and 79% y/y. The strong y/y growth reflects the maturation of existing programs and new program additions. Included in GPW was $52mm of admitted premiums, up from $44mm LQ and $19mm LY. While the outlook for E&S is generally more positive than admitted over the near-term, the launch of the admitted platform will provide another meaningful avenue for growth when the cycle eventually does turn. The loss ratio increased to 71.1% (our estimate 75.0%) from 69.4% in Q3/21. Expenses were elevated and higher- than-expected as the company makes investments in staff and infrastructure to support the growth. The fronting operational ratio remains elevated at 83.4% (in- line-with-our-estimate) but is expected to improve over time.
Canada: Top-line growth remained strong, with premiums up 24% y/y (in-line with our estimate). The nascent Canadian fronting platform wrote $72mm of GPW, down from $87mm LQ but up from $46mm LY providing more stable fee income. Additionally, the company continues to develop its Surety program in the U.S., and announced a tuck-in Surety acquisition in Canada at the end of the quarter. The loss ratio remained low at 16.7% vs. 14.2% LQ and 18.4% LY, while expenses slightly higher-than-expected. ROE remains very strong at 30.6%.