Insurance management and reinsurance consulting company Trean Insurance Group has posted its gross written premiums (GWP) at $156.6 million for the second quarter of 2021, compared to $109.6 million for the same prior year period.
This increase in GWP was due to the growth in Trean’s existing program partner business, along with the addition of new program partners, and the acquisition of 7710 Insurance Company in the fourth quarter of 2020.
The company also reported a combined ratio of 93.8%, a 200 basis point improvement versus 95.8% in the prior-year period.
The increase in the loss ratio during the second quarter of 2021 compared to the prior-year period was primarily attributable to a number of unusually large losses experienced in the first half of 2021.
Its net earned premiums more than doubled to $47.9 million, compared to $21.4 million in the second quarter of 2020.
Its net earned premiums were driven by the increase in gross written and gross earned premiums, partially offset by an increase in ceded earned premiums compared to the prior-year period.
Andrew O’Brien, Chief Executive Officer of Trean commented: “We have firmly established ourselves as a ‘growth company’. We have developed a unique business model within the multi-billion dollar specialty insurance market, bolstered by a strong management team, which has provided us with a clear runway to expand organically, as well as a strong pipeline of attractive new opportunities to add to our first-class roster of programs.
“Importantly, we are rapidly growing while still responsibly managing our risk profile. By remaining disciplined with respect to our underwriting, our premiums will ultimately flow to our bottom line, creating long-term sustainable and profitable bottom line expansion.
“We are positioned strongly to continue outperforming, and believe we are well on pace to achieve our long-term goal of $1 billion in gross written premiums within the next five years.”
“For the second quarter and first half of 2021, we performed superbly from a growth standpoint, including a high double-digit year-over-year increase in gross written premium, as we continue to strengthen the foundation to create additional long-term value for our shareholders.
“We also delivered another quarter of significant net earned and unearned premium growth – accumulating future potential earnings that should contribute to and drive substantial increases in our longer-term net income.
“In addition, we further expanded our non-workers’ compensation business and diversified our overall business to reduce our concentration risk, while maintaining disciplined underwriting standards.”
