Trisura reports net income and insurance revenue increase in Q4’24

Trisura Group Ltd., a specialty insurance provider, has released its financial results for the fourth quarter of 2024, reporting increased net income and insurance revenue, to $19.3 million and $794.2 million, respectively.

Net income for the quarter increased 70.1%, compared to Q4 2023’s $11.3 million, as a result of growth in the business, higher net investment income, as well as a lower loss ratio.

The 5.2% increase in insurance revenue was fuelled by strong performance in its high-margin Primary lines: Surety, Corporate Insurance, and Warranty. These lines experienced a growth of 17.7% during the quarter.

Operating net income jumped 47.6% to $38.2 million, up from $25.9 million in Q4 2023, mirroring the drivers of overall net income growth.

The company’s consolidated operating combined ratio improved to 81.5%, reflecting the lower loss ratio achieved through strong underwriting in Surety and Corporate Insurance, partially offset by investments in US expansion.

Notably, Trisura Specialty boasted a low 12.8% loss ratio, a 27.4% return on equity (ROE), and a 24.9% operating ROE for the quarter

The Group’s ROE increased 16.9% compared to 12.2% in Q4 2023, while operating ROE was slightly lower than Q4 2023, as strong profitability from core operations continued, but Shareholders’ equity increased disproportionately from unrealised gains and foreign exchange.

Net investment income increased 5.8% year-over-year, benefiting from increased capital generated by strong operational performance.

David Clare, President and CEO of Trisura, stated: “Trisura achieved strong Operating net income of $38.2 million in the quarter, or $0.79 per share, supporting our highest ever annual Operating net income of $135.8 million, driven by growth, strong underwriting, and higher Net investment income. Operating combined ratio of 81.5% for the quarter and 82.9% for the year shows the strength and potential of the combined platform.

“Growth, strong earnings, unrealised gains and the impact of foreign exchange lifted book value by 27% to $785 million, an all-time high. Profitability from core operations continued, resulting in a 19.4% Operating ROE.”

He continued: “We made significant progress expanding in 2024. Premiums from our US Surety platform grew by 197% in the year, broadening our footprint and developing relationships with important distribution partners. In US Corporate Insurance we bound our first premium, continued to establish our brand and grow our network while we build out licenses.

“We observed weaker performance from a group of US programs we had previously non-renewed. These programs have been included in Exited lines, to clearly demonstrate their impact. Premium growth and profitability continued in our ongoing portfolio of US Programs.”

Despite the impact of Exited lines, Trisura achieved an 88.8% combined ratio for the full year and a 96.7% combined ratio for the fourth quarter.

Full-year net income reached a record $118.9 million, with Q4 net income contributing $19.3 million, a 70.1% increase.

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