International specialty insurance holding company Trisura Group has seen its net income soar by 156.4% to $16.9 million during the second quarter of 2021.
The performance was driven by strong growth and underwriting in Canada, growing profitability in the US, improved asset liability matching in the company’s reinsurance business, and investment gains.
Combined with net income of $19.3 million from Q1, this puts Trisura’s income for the year-to-date at a significantly higher level than the $32.4 million that it posted over the entirety of 2020.
Within its insurance operations, Trisura attributed its growth to disciplined underwriting in Canada that contributed to a loss ratio of 24.5% for the quarter.
A lower expense ratio in the quarter resulted in a combined ratio of 83.3%, in the context of 147.3% growth in premiums.
Gross written premiums (GPW) in the US totalled $220.6 million during Q2 2021, compared to $144.8 million in Q2 2020, and fee income came to $11.1 million versus $5.5 million previously
The company also noted that improved asset-liability matching in its reinsurance business limited volatility through the quarter.
Investment income was $2.8 million in Q2 2021, driven by interest and dividend income and partially offset by the impact of movements in European interest rates on the long duration assets supporting certain reserves in James River’s Reinsurance business.
Importantly, reinsurance investment losses were offset by reductions in reserves in the reinsurance business.
“Trisura maintained its momentum through the second quarter of 2021 with net income of $16.9 million, an increase of 156.4% over the prior year,” said David Clare, President and CEO of Trisura.
“Strong underwriting performance and premium growth, supported by investment gains, contributed to an 18.3% return on equity, exceeding our mid-teens target ahead of plan,” Clare continued.
“Premium growth was significant, increasing 79.4% over the prior year, while disciplined underwriting contributed to a strong 83.3% combined ratio in the Canadian operations. There was a sustained expansion of our US business, which bound $220.6 million of gross premiums, and drove $6.9 million in net income.”
