Specialty insurance provider Trisura Group has revealed its financial results for the fourth quarter and year ended December 31, 2020 – and the company has some good news to share.
Trisura reported earnings per share of $1.05 in Q4 2020 and $3.28 for the full year, versus $0.47 and $0.69 respectively in 2019, while its gross and net written premiums grew 119.4% and 122.9% in Q4 2020, and 106.7% and 69.2% for the full year, thanks to momentum in US fronting and continued growth in Canada.
Additionally, Trisura revealed net income of $10.9 million in the quarter and $32.4 million for the full year, a boost of 162.4% and 536.9% compared to prior year, which the firm attributed to “strong growth and underwriting in Canada, a growing contribution to profitability in the US, improved asset liability matching in our reinsurance business, and investment gains.”
Meanwhile, investment income saw a turnaround, coming in at $5.9 million in Q4 2020 and $27.8 million for the year, reflecting an increase from a loss of $3.9 million in Q4 2019 and $16.2 million in 2019. Movements in European interest rates on the longer duration assets supporting Trisura’s reinsurance business liabilities, as well as additional interest and dividend income in North America helped the company out on this front.
“We are pleased with Trisura’s progress, generating net income of $10.9 million in the fourth quarter and $32.4 million for the year – both significant increases over the prior periods,” commented David Clare, president and CEO of Trisura. “In the context of significant top-line growth in Canada, disciplined underwriting generated a strong 85.5% combined ratio for the year. Our US business maintained its trajectory of growth, binding a new record of $210.7 million of gross premiums and generating $5.7 million in net income in the quarter, almost matching our Canadian quarterly profit.”
Nonetheless, Trisura also noted that the second wave of COVID-19, alongside a weaker than anticipated economic recovery, could threaten the momentum it gained in the past quarter. Accordingly, the company pointed out that premium generation and claims activity could be impacted, depending on how long the pandemic-related economic slowdown lasts, and how effective government support programs and vaccines end up being.
