TORONTO, May 02, 2024 (GLOBE NEWSWIRE) -- Trisura Group Ltd. ("Trisura" or "Trisura Group") (TSX:TSU), a leading specialty insurance provider, today announced financial results for the first quarter of 2024. David Clare, President and CEO of Trisura, stated, "Trisura demonstrated strong performance in the quarter with Operating net income of $33.2 million, or $0.68 per share, driven by continued growth, profitable underwriting and higher investment income. Continued expansion of market share and distribution partners drove insurance revenue growth of 16.5%. In Canada, disciplined underwriting resulted in a Combined ratio of 81.8%, while in US Fronting continued growth and an improved loss ratio resulted in a strong insurance service result and improved fronting operational ratio. Net investment income grew 66.3% in the quarter, reaching $16.8 million through higher yields and an increased size of the investment portfolio.   Growth, strong earnings, and gains on the investment portfolio lifted book value to over $662 million. In the quarter, we closed the acquisition of our Treasury-listed surety company and look forward to expanding our US surety presence in the coming years. With a larger capital base, increased financial flexibility and ample opportunities to grow, we are optimistic for the years ahead." Financial Highlights Insurance revenue growth of 16.5% compared to Q1 2023 demonstrated continued momentum across the organization. Net income of $36.4 million in the quarter was higher than Q1 2023 as a result of growth in the business, improved profitability in US Fronting, unrealized gains in the investment portfolio and higher net investment income. Operating net income(1) of $33.2 million in the quarter increased 16.0% compared to Q1 2023, driven by growth in the business, profitable underwriting and higher net investment income. EPS of $0.75 in Q1 2024 was greater than Q1 2023. Operating EPS(2) of $0.68 for the quarter increased by 11.5%. Book value per share(3) of $13.89 increased 24.6% from March 31, 2023, primarily the result of earnings in the Canadian operations, higher Net investment income and the equity raise in Q3 2023. ROE(3) was 15.3% for the period ended Q1 2024 demonstrating an increase compared to recent quarters and a return to our mid-teens target despite the impact of the run-off program in 2023. Operating ROE(4) of 20.0% was comparable to Q1 2023 and benefitted from growth, as well as higher Net investment income. Amounts in C$ millions Q1 2024 Q1 2023 Variance Insurance revenue 744.3   639.1   16.5 % Net income 36.4   14.0   160.7 % Operating net income(1) 33.2   28.6   16.0 % EPS – diluted, $ 0.75   0.30   150.0 % Operating EPS – diluted, $(2) 0.68   0.61   11.5 % Book value per share, $(3) 13.89   11.15   24.6 % Debt-to-Capital ratio(3) 10.2 % 12.8 % (2.6pts ) ROE(3) 15.3 % 4.1 % 11.2pts   Operating ROE(4) 20.0 % 20.6 % (0.6pts ) Combined ratio – Canada 81.8 % 80.7 % 1.1pts   Fronting operational ratio excluding certain non-recurring items – US(5) 84.8 % 86.0 % (1.2pts ) Insurance Operations Insurance revenue in Canada of $221.9 million in the quarter increased by 23.4% compared to Q1 2023, reflecting increased market share, expansion of distribution relationships, expanding fronting and growth of US Surety. Strong underwriting contributed to a Combined ratio of 81.8%, a ROE of 28.8% and Operating ROE of 28.1% in Q1 2024. Insurance revenue in the US of $522.4 million in the quarter increased by 13.7%, compared to Q1 2023, reflecting favourable market conditions and maturation of existing programs. Fee income(6) of $22.1 million in the quarter increased by 23.0% compared to Q1 2023. Net income of $12.5 million and operating net income of $13.4 million in the quarter was driven by strong underwriting performance and increased investment income, which supported a 14.3% Operating ROE. Capital The Minimum Capital Test ratio(7) of our regulated Canadian subsidiary was 259% as at March 31, 2024 (251% as at December 31, 2023), which comfortably exceeded regulatory requirements(8) of 150%. As at December 31, 2023, the Risk-Based Capital of the regulated insurance companies of Trisura US were in excess of the various company action levels of the states in which they are licensed. Consolidated debt-to-capital ratio of 10.2% as at March 31, 2024 is below our long-term target of 20.0%. Investments Net investment income rose 66.3% in the quarter compared to Q1 2023. The portfolio benefited from higher risk-adjusted yields, increased capital generated from strong operational performance and recent equity raises. Corporate Development Closed the acquisition of First Founders Assurance Company, a US Treasury listed surety company. Governance Appointed Lilia Sham to the Company's Board of Directors. Earnings Conference Call Trisura will host its First Quarter Earnings Conference Call to review financial results at 9:00a.m. ET on Friday, May 3rd, 2024. To listen to the call via live audio webcast, please follow the link below: https://edge.media-server.com/mmc/p/w5mnnx7z A replay of the call will be available through the link above. Investor Day Immediately following the Company's Annual General Meeting, which will be held on Monday, June 3rd, 2024 at 10:00am (Eastern Time) at the North Tower, 200 Bay Street, Suite 1600 in Toronto, Trisura will host an investor presentation to discuss long-term strategy and market conditions. To register for the Investor Day, or to access the live audio webcast, please follow the link below: https://reg.lumiengage.com/trisura-2024 About Trisura Group Trisura Group Ltd. is a specialty insurance provider operating in the Surety, Risk Solutions, Corporate Insurance, and Fronting business lines of the market. Trisura has investments in wholly owned subsidiaries through which it conducts insurance and reinsurance operations. Those operations are primarily in Canada and the United States. Trisura Group Ltd. Is listed on the Toronto Stock Exchange under the symbol "TSU". Further information is available at https://www.trisura.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information. Details regarding the operations of Trisura Group Ltd. are also set forth in regulatory filings. A copy of the filings may be obtained on Trisura Group's SEDAR+ profile at www.sedarplus.com. For more information, please contact:Name: Bryan SinclairTel: 416-607-2135Email: Trisura Group Ltd.Condensed Interim Consolidated Statements of Financial PositionAs at March 31, 2024 and December 31, 2023(in thousands of Canadian dollars, except as otherwise noted) As at March 31, 2024 December 31, 2023 Cash and cash equivalents 636,186 604,016 Investments 1,056,639 890,157 Other assets 33,678 53,712 Reinsurance contract assets 1,947,341 2,003,589 Capital assets and intangible assets 28,053 16,657 Deferred tax assets 34,890 16,314 Total assets 3,736,787 3,584,445 Insurance contract liabilities 2,871,676 2,769,951 Other liabilities 127,897 120,065 Loan payable 75,000 75,000 Total liabilities 3,074,573 2,965,016 Shareholders' equity 662,214 619,429 Total liabilities and shareholders' equity 3,736,787 3,584,445 Trisura Group Ltd.Condensed Interim Consolidated Statements of Comprehensive IncomeFor the three months ended March 31(in thousands of Canadian dollars, except as otherwise noted)   Q1 2024