Reinsurance News

Trisura reports annual net income of $32.4mn

11th February 2021 - Author: Luke Gallin

Trisura Group Ltd. has reported net income of $10.9 million for the fourth-quarter and income of $32.4 million for the full-year, representing growth of 162.4% and 536.9%, respectively, from the same periods in 2019.

Trisura Group logoThe company attributes the higher figures to strong growth and underwriting in Canada, a growing contribution to profitability in the U.S, and improved asset liability matching in its reinsurance business and investment gains.

The firm’s ROE reached 13.4% in 2020 against 3.5% in 2019, which occurred despite dilution from its equity raise back in May and in the context of significant growth.

Turning to its insurance operations, and Trisura notes that disciplined underwriting in Canada resulted in a loss ratio 25.3% for the year, which, combined with strong expense management led to a combined ratio of 85.5%.

In its U.S. operations, GPW increased $210.7 million in Q4 2020 against $171 million in Q3 2020, while fee income in this part of the business increased to $8.5 million in Q4 2020 from $6.4 million in Q3 2019.

Looking at investments, and Trisura has reported investment income of $5.9 million for Q4 2020 and $27.8 million for the year.

The company notes that these increases were primarily a result of the impact of movements in European interest rates on the longer duration assets supporting its reinsurance business liabilities, supported by additional interest and dividend income in the North America region.

David Clare, President and Chief Executive Officer (CEO) of Trisura, commented: “We are pleased with Trisura’s progress, generating net income of $10.9 million in the fourth quarter and $32.4 million for the year – both significant increases over the prior periods. Strong results in Canada, accelerating profitability in the US, improved asset liability matching in our Reinsurance business and investment gains produced a 13.4% return on equity, approaching our mid-teens target ahead of plan.

“In the context of significant top-line growth in Canada, disciplined underwriting generated a strong 85.5% combined ratio for the year. Our US business maintained its trajectory of growth, binding a new record of $210.7 million of gross premiums and generating $5.7 million in net income in the quarter, almost matching our Canadian quarterly profit.

“Our balance sheet is well-funded to support future growth, with flexibility afforded by our 8.7% debt-to-capital ratio.”

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