Trisura Group Reports Third Quarter 2017 Results

TORONTO, Nov. 10, 2017 (GLOBE NEWSWIRE) -- Trisura Group Ltd. (“Trisura” or “Trisura Group”) (TSX: TSU ) today announced financial results for the quarter ended September 30, 2017.

"Trisura had an excellent quarter with strong premium growth in our existing business. We achieved a major operational objective when our US entity, Trisura Specialty Insurance Company, received an A- (Excellent) rating from A.M. Best.  Trisura Specialty Insurance Company is now actively pursuing new business opportunities and we believe the business is being well-received in the market.” said Greg Morrison, CEO of Trisura. 

Third Quarter 2017 Financial Results

Q3 2017 Highlights

• Strong growth in Q3 in both gross and net premiums written, increasing 14.2% and 16.5% respectively compared to same period in 2016 driven by increased activity in our Risk Solutions and Surety business lines at Trisura Guarantee Insurance Company (“Trisura Guarantee”).
• Consistently strong underwriting results at Trisura Guarantee with net underwriting income of C$2.1 million in Q3 compared to C$1.5 million in the prior year period. 
• Combined ratio of 91.2% at Trisura Guarantee.
• Net income of C$2.0 million compared to a net loss of C$1.5 million in the prior year period, as a result of growth in net income of Trisura Guarantee. 
• Foreign exchange losses related to strengthening of the Canadian dollar against the US dollar led to negative variance in comprehensive (loss) income in Q3 compared to the same quarter of 2016.
• Began marketing our fronting company services in the U.S. after Trisura Specialty Insurance Company received its A- (Excellent) rating from A.M. Best.
• Strong capital position consistent with planned business development particularly in the US which will enable us to reduce our debt-to-capital ratio to 20% before year-end 2017.

   Note: P&C Business reflects Trisura Guarantee operations only.

Capital

• The minimum capital test (“MCT”) ratio of Trisura Guarantee was 265% as at September 30, 2017 (272% as at December 31, 2016), which comfortably exceeds regulatory requirements of 150%.  
• Trisura Specialty Insurance Company’s capital and surplus of C$56.2 million as at September 30, 2017 was well in excess of the C$18.7 million minimum capital requirements of the Oklahoma Insurance Department.  
• Trisura International Insurance Company had capital of C$25.2 million as at September 30, 2017 which was well in excess of its regulatory capital requirement of C$0.2 million.  
• Trisura Group had a debt-to-capital ratio of 22.2% as at September 30, 2017 (32.5% as at December 31, 2016). We anticipate reducing the debt-to-capital ratio to 20% by year-end 2017.

Investments

• Trisura’s net investment income in Q3 2017 was C$2.1 million compared to C$1.8 million in Q3 2016.  Investment income is driven primarily from interest and dividend income on a highly-rated portfolio.

Corporate Development

• Trisura Specialty Insurance Company received an A- (Excellent) rating from A.M. Best.
• The Company recently announced the transition of RSA’s $6 million block of contract and commercial surety business in Canada to Trisura’s Canadian subsidiary, Trisura Guarantee. This business allows us to further strengthen our position in the Canadian marketplace as a market leader in the small to mid-size contractor space.

About Trisura Group

Trisura Group Ltd. is a leading international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance segments of the market. Trisura has three principal regulated insurance subsidiaries: Trisura Guarantee Insurance Company, Trisura International Insurance Company and Trisura Specialty Insurance Company. Trisura Group is listed on the Toronto Stock Exchange under the symbol "TSU".

Further information is available at http://www.trisura.com/group . Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura’s SEDAR profile at www.sedar.com .

For more information, please contact: Name: David Clare Tel: 647-503-6516 Email: dclare@pvii.ca  

Cautionary Statement Regarding Forward-Looking Statements and Information

Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Trisura Group, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.”

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Trisura Group to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Trisura Group undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.