Specialty insurance provider, Trisura Group, has posted $25.9 million operating net income in the fourth quarter of 2023, which the company said was achieved through measured growth, profitable underwriting and enhanced investment income – supporting annual operating net income of over $110 million.
At the same time, the company reported $11.3 million net income, which was considerably higher than Q422’s -$40.7 million.
Net income for the full-year 2023 sat at $66.9 million.
Insurance revenue in Canada of $227.4 million in the quarter increased by 31.9% compared to Q422. Trisura explained that this reflected increased market share, expansion of distribution relationships, expanding fronting and growth of US Surety.
Moreover, insurance revenue in the US of $527.5 million in the quarter increased by 24.6%, compared to the prior year quarter, reflecting favourable market conditions and maturation of existing programs.
David Clare, President and CEO of Trisura, commented: “Trisura ended the year with strong operational performance. Operating net income of $25.9 million in the quarter, or $0.54 per share, was achieved through measured growth, profitable underwriting and enhanced investment income – supporting annual operating net income of over $110 million. Quarterly Net income of $11.3 million, or $0.23 per share, was impacted by the run-off of a US program, partially offset by unrealized gains in the investment portfolio.
“Maturation of our business and continued expansion with distribution partners drove insurance revenue growth of 26.7% in the quarter and 38.4% for the full year. In Canada, Q4 combined ratio of 85.8% was strong and contributed to an 81.1% full year combined ratio. Our US fronting platform has substantially navigated the run-off associated with the Q4 2022 write down. We have further rationalized our US program portfolio, which impacted fourth quarter results, though sets a firm foundation for profitability ahead.”
Adding: “Net investment income grew 71.0% in the quarter, reaching $16.2 million through higher yields and an increased size of the investment portfolio.
“Growth, strong earnings, and gains on the investment portfolio lifted book value to over $619 million. Our business remains well-capitalized, supported by surplus capital, a $50 million revolving credit facility, a 10.8% debt-to-capital ratio and a conservatively positioned investment portfolio.”
