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1. Company Snapshot

1.a. Company Description

Trisura Group Ltd., a specialty insurance company, operates in the surety, risk solutions, corporate insurance, and reinsurance businesses in Canada, the United States, and internationally.The company offers contract surety bonds, such as performance, and labor and material payment bonds primarily for the construction industry; commercial surety bonds, including license and permit, tax and excise, and fiduciary bonds to governments, regulatory bodies, or courts to guarantee compliance with legal or fiduciary obligations; and developer surety bonds comprising bonds to secure real estate developers' legislated deposit and warranty obligations on residential projects.It provides risk solutions, including warranty programs to program administrators, managing general agents, captive insurance companies, affinity groups, and reinsurers.


The company also offers corporate insurance products that comprise directors' and officers' insurance for public, private, and non-profit enterprises; errors and omissions liability insurance for enterprises and professionals; business office package insurance for enterprises and professionals; and fidelity insurance for commercial and financial institutions.Trisura Group Ltd.was incorporated in 2017 and is headquartered in Toronto, Canada.

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1.b. Last Insights on TSU

Trisura Group's recent performance was driven by strong operating results, with an operating return on equity (ROE) of 18.4% in Q1 2025, up from 14.5% in Q1 2024. The company's operating net income of $34.2 million, or $0.70 per share, demonstrates consistent execution of its strategy. Additionally, Trisura's revenue grew 3.2% year-over-year to CA$788.2 million in Q1 2025, driven by profitable underwriting and higher net investment income. The company's strong financials and growth prospects are expected to be discussed in its upcoming Investor Day on June 3rd, 2025.

1.c. Company Highlights

2. Trisura Group's Q3 2025 Earnings: A Strong Performance

Trisura Group Limited reported a robust Q3 2025, with operating EPS of $0.71 per share, slightly below estimates of $0.713. Gross premiums written reached $853 million, an 11% increase year-over-year. The company's investment income continues to drive earnings growth, with $20 million of investment income, up 24% year-over-year. The portfolio reached new records with $1.8 billion in assets, contributing to an operating ROE on a rolling 12-month basis of 18%. The combined ratio for the group was 86% for the quarter, indicating a profitable underwriting performance.

Publication Date: Nov -30

📋 Highlights
  • Book Value Growth:: Book value per share rose to $18.90, up over 20% year-over-year.
  • Investment Income Surge:: Investment income reached $20 million, a 24% year-over-year increase.
  • Operating EPS Growth:: Operating EPS grew 4.4% to $0.71 per share, driven by a 18% rolling 12-month ROE.
  • Surety Revenue Expansion:: Surety net insurance revenue jumped 25% year-over-year, with 22% year-to-date growth.
  • Combined Ratio Performance:: Group combined ratio held at 86%, with gross premiums written up 11% to $853 million.

Segment Performance

The primary lines, including surety, warranty, and corporate insurance lines, remain the foundation of the business, growing net insurance revenue 16% this quarter. Surety delivered another exceptional quarter with net insurance revenue up 25% year-over-year, although premiums declined relative to Q3 2024 due to timing nuances of premium onboarding in the U.S. The warranty business has seen significant growth, with a combined ratio of 90%, and the team expects growth to slow down from high 30s levels to mid-teens levels in the near term.

Growth Prospects and Investments

The company sees opportunities in the primary lines, particularly in the U.S., and expects growth in both specialty and programs. The U.S. business has contributed just over 40% of the premiums for the surety platform across North America, with the Canadian business still being larger. On a percentage basis, the U.S. business is growing faster. The company expects a return to growth in the surety platform in Q4 with mid-teens level of growth and a 20% or low 20s percent loss ratio.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 2.31, the market is pricing in a certain level of growth and profitability. Given the company's strong performance and growth prospects, the valuation appears reasonable. Analysts estimate next year's revenue growth at 8.7%, which suggests that the company is well-positioned for continued success. The company's book value per share has risen to $18.90, up more than 20% year-over-year, and is on track to achieve its book value target of $1 billion by the end of 2027.

3. NewsRoom

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Trisura Group Renewing Normal Course Issuer Bid

Dec -04

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Trisura Group Ltd. Announces Renewal of Normal Course Issuer Bid

Dec -04

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Revenue Beat: Trisura Group Ltd. Exceeded Revenue Forecasts By 5.6% And Analysts Are Updating Their Estimates

Nov -11

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How Investors May Respond To Trisura Group (TSX:TSU) Q3 Profit Jump and Investment Income Growth

Nov -10

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Examining Trisura Group (TSX:TSU) Valuation as Shares Outperform Insurance Peers This Month

Nov -09

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Trisura Group Ltd (TRRSF) Q3 2025 Earnings Call Highlights: Strong Growth in Premiums and ...

Nov -08

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Trisura Group Reports Third Quarter 2025 Results: Strong Growth in BVPS Demonstrates Consistent, Profitable Underwriting and Increasing Investment Income

Nov -06

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Trisura Announces Timing of Third Quarter Results Release and Earnings Conference Call

Oct -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.86%)

6. Segments

Trisura United States

Expected Growth: 12%

Trisura United States' 12% growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved underwriting capabilities, and a strong capital position have contributed to its growth momentum.

Trisura Canada

Expected Growth: 10%

Trisura Canada's 10% growth is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic partnerships. The company's expertise in niche areas such as surety and risk solutions, combined with its strong underwriting discipline and efficient operations, have enabled it to capitalize on market opportunities and deliver sustainable growth.

Corporate and Other - Trisura International

Expected Growth: 8%

Trisura International's 8% growth in Corporate and Other segment is driven by increasing demand for specialty insurance products, expansion into new geographic markets, and strategic partnerships. Additionally, the company's focus on digital transformation and operational efficiency has led to improved underwriting capabilities and reduced costs, contributing to the segment's growth.

7. Detailed Products

Specialty Insurance

Trisura Group Ltd. offers specialty insurance products that cater to unique and niche markets, providing coverage for unusual or hard-to-place risks.

Contract Surety

Trisura Group Ltd. provides contract surety bonds that guarantee the performance of contractors and ensure project completion.

Commercial Insurance

Trisura Group Ltd. offers commercial insurance products that provide liability, property, and casualty coverage for businesses.

Risk Management

Trisura Group Ltd. provides risk management services that help businesses identify and mitigate potential risks.

Reinsurance

Trisura Group Ltd. offers reinsurance products that provide additional coverage for insurers and reinsurers.

8. Trisura Group Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Trisura Group Ltd. operates in the insurance industry, which has a moderate threat of substitutes. While there are alternative insurance providers, the company's specialized products and services mitigate the threat.

Bargaining Power Of Customers

Trisura Group Ltd.'s customers have limited bargaining power due to the company's strong brand reputation and specialized products, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Trisura Group Ltd. relies on a network of suppliers for its operations, but the company's size and reputation give it some bargaining power, making the threat of supplier power moderate.

Threat Of New Entrants

The insurance industry has a high threat of new entrants, as new companies can easily enter the market, posing a significant threat to Trisura Group Ltd.'s market share.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players, making the intensity of rivalry high. Trisura Group Ltd. must differentiate itself through its products and services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.80%
Debt Cost 3.95%
Equity Weight 89.20%
Equity Cost 7.98%
WACC 7.54%
Leverage 12.11%

11. Quality Control: Trisura Group Ltd. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Investors Title

A-Score: 6.9/10

Value: 5.0

Growth: 4.7

Quality: 7.9

Yield: 10.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Employers Holdings

A-Score: 6.0/10

Value: 6.9

Growth: 4.9

Quality: 6.2

Yield: 7.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Tiptree

A-Score: 5.9/10

Value: 8.1

Growth: 7.7

Quality: 6.9

Yield: 4.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
AMERISAFE

A-Score: 5.6/10

Value: 3.5

Growth: 2.2

Quality: 7.0

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Trisura

A-Score: 5.4/10

Value: 6.7

Growth: 7.8

Quality: 6.8

Yield: 0.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
ICC Holdings

A-Score: 4.8/10

Value: 4.9

Growth: 7.3

Quality: 5.1

Yield: 0.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.75$

Current Price

39.75$

Potential

-0.00%

Expected Cash-Flows