Trisura Group (TSU) Q4 2024 earnings summary

Executive summary

• Specialty insurance focus and disciplined underwriting drove record operating net income of CAD 135.9 million and reported net income of CAD 119 million, with ROE of 19% and 17% respectively.

• Book value per share increased 26.3% year-over-year to CAD 16.44, with total book value reaching CAD 785 million.

• U.S. surety premiums grew 197% in 2024, with the first premium bound in U.S. Corporate Insurance and a top-35 U.S. ranking by Q3.

• Strategic exits from underperforming lines and focus on ongoing programs led to 27% growth and an 81% operating combined ratio.

• Growth initiatives remain well-funded, supported by a conservative 11% debt-to-capital ratio.

Financial highlights

• Insurance revenue reached $794 million for Q4 and $3.12 billion for the year, up 5.2% and 11.8% year-over-year.

• Group combined ratio was 96.7% for Q4 and 88.8% for the year, reflecting improved profitability.

• Net investment income grew 5.8% in Q4 and 29.8% for the year, driven by portfolio growth and higher yields.

• Net income was CAD 19.3 million for Q4 and CAD 119 million for the year; operating net income was CAD 38.2 million for Q4 and CAD 135.9 million for the year.

• EPS was CAD 0.40 for Q4 and CAD 2.45 for the year; operating EPS was CAD 0.79 for Q4 and CAD 2.80 for the year, up 46% and 20% year-over-year.

Outlook and guidance

• Expectation for premium growth, operating ROE, and book value per share growth in excess of 15% annually.

• Targeting CAD 1 billion in book value by end of 2027.

• Focus remains on expanding U.S. operations, particularly in Surety and Corporate Insurance.

• U.S. surety combined ratio expected to match Canadian practice in 2025, with ongoing expansion in both markets.

• Canadian fronting growth outlook is high single to low double digits, reflecting market dynamics.