Specialty insurer Trisura has reported a third quarter net income of C$16.1 million, an increase of 145.7% against the prior year quarter thanks to strong underwriting in Canada, increasing fee income from the US, and appropriate asset liability matching in its reinsurance business.
Gross and net written premiums grew by 68.9% and 62.1% respectively, supported by continued growth in Canada and strong momentum in US fronting.
20.4% Return On Equity compares to 11.7% in 2020, exceeding the company’s mid-teens target despite significant growth.
Gross Premium Written in Canada increased by 110.3% while strong underwriting performance across all lines contributed to a 79.3% combined ratio for the quarter and a 31.2% ROE.
New fronting arrangements in Canada contributed $46.4 million in the quarter and $101.9 million Year-To-Date.
US premium and fee income grew by 52.3% and 66.9% respectively over Q3 2020, reaching $260.5 million and $10.5 million in the quarter.
This contributed to improved net income of $7 million and a 14.5% ROE despite an increase in the capital base.
“Our business performed very well in the quarter, recording earnings of $16.1 million, an increase of 145.7% over last year,” said David Clare, President and CEO of Trisura.
“Continued growth and strong underwriting, supported by investment gains, generated a 20.4% return on equity, despite the early stage of several new initiatives.
“Our balance sheet remains well-funded to support future growth with a debt-to-capital ratio of 17.7%.”