Specialty insurer Trisura Group has announced its financial results for the first quarter of 2023, reporting a net income of $14.0 million and insurance revenue growth of 53%, which reflects sustained momentum across North America.
According to the insurer, its net income in the quarter was impacted by the implementation of new IFRS standards and fell compared to the prior period as a result of losses on the run-off of a US program.
Operating net income of $28.6 million in the quarter grew by 38.5% compared to the same period last year, driven by profitable growth in Canada and core operations in the US.
President and CEO David Clare stated: “Expansion of distribution relationships and maturation of our platform drove increased market share and resulted in insurance revenue growth of 58.3%.
“In Canada, disciplined underwriting yielded a combined ratio of 80.7%. Our US fronting business produced $459.3 million of insurance revenue and reported deferred fee income of $35.9 million.
“Net investment income grew 150.3% in the quarter, reflecting higher yields and an increased size of the investment portfolio.
“Our business remains well-capitalised, supported by surplus cash, a $50 million undrawn revolver, a 12.8% debt to capital ratio and a conservatively positioned investment portfolio.”
Insurance revenue in Canada increased by 33.2% in the quarter, reflecting increased market share, expansion of distribution relationships, new fronting arrangements and the benefit of stable market pricing conditions in certain lines of business.
In the US insurance revenue increased by 70.9%, which according to the insurer, reflects favourable market conditions and maturation of existing programs.
For its US fronting business, the insurer also reported a net loss of $1.7 million in the quarter, which according to Tricura was driven by losses on the run-off of a US program.