Trisura is reporting premium growth of 54.3% between Q4 2020 and Q4 2021, alongside a full-year result of 68.7%.
The firm said this growth was driven by an expansion of its market share, the maturation of its platform, and the advent of new products. It said that in Canada, focused underwriting resulted in an 81.1% combined ratio for the year, despite higher than trend claims activity in Q4.
It also reported that its US business bound a quarterly record $293.3m of gross premiums, supporting $6.8m in net income and significant deferred fee income.
David Clare, president and CEO of Trisura, said: “Our business performed very well through 2021, recording earnings of $62.6m, an increase of 92.8% compared to 2020. Persistent growth and strong underwriting, supported by investment gains, generated a 19.0% return on equity, despite continued investment in growth.”
However, the firm did report that its net income fell 6% between Q4 2020 and Q4 2021, and there was a corresponding dip in its diluted earnings per share of 7.7%. However, net income for 2021 was 92.8% higher than in 2020, with earnings per share up 81.7% over the same period.
It added in a note accompanying the release of the figures: “Net income of $10.3m in the quarter fell 6.0% compared to Q4 2020, negatively impacted by novation of our life annuity reinsurance contract and higher claims in the quarter. Adjusted net income of $13.2m in the quarter grew by 31.6% compared to Q4 2020. Net income for the full year grew by 92.8% to $62.6m, a result of both growth and strong underwriting in Canada, increasing fee income from the US, and appropriate asset liability matching in our Reinsurance business.”
The firm also acknowledged that there is still uncertainty despite its stellar results.
It said: “Despite demonstrated resilience, we acknowledge that, uncertainty regarding variants, economic reopening, normalization of government support and the potential for a weaker than anticipated economic recovery continue to threaten momentum. Premium generation and claims activity may be impacted depending on the length and depth of any future pandemic-related economic slowdown, as well as the effectiveness of government support programs and vaccines in driving a sustained re-opening. Depending on these factors, premium growth could slow and claims activity could increase.”
Trisura’s full-year results follow its announcement in November that net income in Q3 2021 rose 146%, a result that followed its august announcement that its H1 2021 income exceeded its results for the whole of 2020.
