Trisura Group (TSU) Investor Day 2024 summary

Strategic Direction and Growth Plans

• Focuses on specialty P&C insurance, expanding in Canada and the U.S., especially in surety and corporate insurance, leveraging underwriting expertise and a broker-centric approach.

• U.S. surety and corporate insurance are major growth areas, aiming to replicate Canadian success and targeting U.S. premium volumes comparable to Canada.

• Organic growth is prioritized, supported by selective small-scale M&A, with recent acquisitions expected to become significant contributors.

• Targets mid to high teens annual growth in revenue, operating ROE, and book value per share, aiming for CAD 1 billion in book value by 2027, up from CAD 662 million.

• Ongoing investment in people, technology, and operational infrastructure supports scalability and a flat, nimble structure.

Financial Performance and Guidance

• Gross premiums written grew from CAD 150 million in 2017 to nearly CAD 1 billion in 2023 in Canada, with U.S. programs contributing about $2 billion and $2.97B total in 2023.

• Net underwriting income reached nearly CAD 100 million in 2023, with operating net income at $110.2M and ROE rising from 3% to 20% from 2017 to 2023.

• Book value increased from $124M in Q1 2018 to $662M in Q1 2024, with book value per share up 20% CAGR.

• Over a third of earnings now come from investment income, benefiting from higher interest rates and a shift to investment-grade bonds.

• Maintains a strong capital base, low debt-to-capital ratio, and expects to fund near-term growth internally.

Market Positioning and Competitive Advantages

• Specialty focus and underwriting expertise enable outperformance through market cycles and economic shocks.

• One of the largest independent fronting carriers in the U.S., with scale and capital positioning for further growth and larger counterparties.

• Diversification across business lines and geographies, with a third of earnings each from underwriting, fee-based, and investment income, enhances predictability and resilience.

• Strong relationships with brokers and reinsurers, a collaborative culture, and a flat structure support agility and service quality.

• Well-positioned to benefit from industry consolidation, especially in the U.S. fronting market, and expects to double its U.S. business in five years.