Trisura Group Ltd T.TSU

Stockchase Insights

[retiredcf]

HOLD

Trisura Group (TSU-T)

06/11/2023

 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $0.31 missed expectations of $0.4229 and revenues of $769.94M beat estimates of $758.69M. Insurance revenue grew by 32.7% in the quarter, reflecting sustained momentum across North America. Its operating net income was up 50.2%, driven by profitable growth in Canada and core operations in the US. Its net income 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. Its net investment income grew substantially, due to higher risk-adjusted yields and an increased size of the investment portfolio. Its operating ROE of 20.2% exceeded its target, demonstrating the strength of its core operations. Its EPS estimates jump from FY2023 to FY2024 on a GAAP basis, however, non-GAAP, this EPS estimate goes from $2.40 to $2.64. Its balance sheet expanded, it has been issuing less shares than in previous quarters, and shares increased following results, indicating that investors are largely pleased with the results. 
 

Its write-downs are still looming, but its core operations have shown strength and we think it begins to demonstrate its ability to execute and grow in future quarters.

 

$33.215