Trisura Group (TSU) Scotiabank Financials Summit summary

Growth strategy and platform evolution

• Recent investments target expansion, especially in US Surety and Corporate Insurance, with organic growth remaining strong.

• Operating segments were renamed to reflect a more integrated North American specialty platform, spanning both US and Canada.

• Earnings mix is expected to shift toward a 50-50 split between Canada and the US over the next three to five years, driven by faster US growth.

• US Surety expansion is underway, with a major inflection point expected in three to five years as licensing broadens.

• The platform is absorbing build-out costs now, with profitability expected to improve as scale is achieved.

Profitability and capital allocation

• US Programs focus on profitable growth, with mid- to high-teens ROE targeted as the platform scales.

• Risk retention in US fronting business has increased to 10-15%, reflecting greater maturity and confidence.

• Fronting operational ratio may rise with higher retention, but overall profitability and ROE remain the key focus.

• Canadian platform has delivered near 30% ROE, expected to normalize to low- to mid-20s as the business grows.

• Capital levels are strong, supporting internal funding for growth and maintaining attractive ROEs.

Market conditions and segment outlook

• Surety business is mainly contract-focused, with developer surety a small, currently stressed segment.

• Infrastructure spending and contractor solvency are key indicators for surety outlook.

• US Corporate Insurance operates in a balanced market, with competitive advantage from underwriting expertise and strong relationships.

• Canadian fronting business expects 15-20% growth this year, moderating to mid-teens, driven by foreign reinsurer appetite.

• Investment income has benefited from rising rates and portfolio growth, with future growth tied to premium expansion rather than further yield increases.