Specialty insurance provider, Trisura Group, has reported $14.8 million of net income in the third quarter of 2023, a decrease of 38.7% compared to $24.2 million from the prior year quarter, primarily due to costs related to the run-off of a US fronting program.
Gross premiums written is replaced by insurance revenue, it grew 32.7% to $730.7 million in Q3’23, compared with $550.9 million in Q2’22. This growth reflected sustained momentum across North America, the company noted.
Operating net income of $31.7 million in Q3’23 grew 50.2% compared to prior period, driven by profitable growth in Canada and growth in core operations in the US, as well as growth in Net investment income.
Insurance revenue in Canada of $221.1 million in the quarter increased by 30.2% compared to Q3’22, reflecting increased market share, expansion of distribution relationships, new fronting arrangements and the benefit of stable market pricing conditions in certain lines of business.
Insurance revenue in the US of $509.6 million in the quarter increased by 33.7%, compared to Q3’22, reflecting favourable market conditions and maturation of existing programs.
In August 2023, the insurance provider raised $51.2 million in equity capital to support growth across the platform.
The company holds surplus capital and has a $50 million revolving credit facility. In July 2023, $10 million USD was utilised from the revolving credit facility for purposes of issuing a letter of credit, in relation to our US Surety operations.
Net investment income rose 105.0% in the quarter compared to Q3 2022. The portfolio benefited from higher risk adjusted yields, increased capital generated from strong operational performance and the July 2022 and August 2023 equity raises.
