Trisura Group (TSU) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 operating net earnings, with operating net income rising 10.9% year-over-year to $37.9 million, or $0.78 per share, driven by robust underwriting and expansion in primary lines, Surety, Corporate Insurance, and Warranty, with primary lines growing 13% year-over-year.

• U.S. Surety and Corporate Insurance platforms showed strong momentum, with U.S. Surety now 45% of the segment and new state licenses supporting future growth.

• Warranty net insurance revenue rose 19%, and U.S. program premium growth was 11%, reflecting both new and existing program contributions.

• Investment income increased 16.5% to $21.2 million, and a $200 million senior unsecured notes offering was completed, strengthening the balance sheet.

• Continued focus on profitable growth, disciplined underwriting, and U.S. expansion, with optimism for future scale and profitability.

Financial highlights

• Operating EPS was $0.78, up 11.4% year-over-year, with operating ROE at 17%, above the mid-teens target.

• Gross premiums written reached $732.4 million, with net insurance revenue at $193.6 million, up 12.1% year-over-year.

• Combined ratio was 84.3%, and book value per share grew 16.4% to $19.98.

• Book value has grown at a 26% CAGR over five years, nearing $950 million.

• Debt-to-capital ratio stands at 17.3%, well below the 25% target.

Outlook and guidance

• Expect mid-teens growth in Surety premiums, with increasing confidence in outperforming this level as new state licenses are onboarded.

• U.S. Corporate Insurance growth expected in high single to low teens, with profitability drag diminishing as the platform matures.

• U.S. programs projected to grow mid to high single digits for the year, with strong combined ratios and positive reinsurance market dynamics.

• Canadian fronting premiums expected to decrease in 2026 due to increased competition and rate softening.

• Management expects to maintain sufficient capital above regulatory and internal targets to support ongoing operations and growth.