Trisura Group Ltd.

Good morning. Welcome to Treshearer Group Limited's second quarter 2025 earnings conference call. On the call today are David Clare, Chief Executive Officer, and David Scotland, Chief Financial Officer. David Clare will begin by providing a business and strategic update, followed by David Scotland, who will discuss financial results for the period. Following formal comments, lines will be open for analyst questions. I'd like to remind participants that in today's comments, including in responding to questions new initiatives related to financial and operating performance, forward-looking statements may be made, including forward-looking statements within the meaning of applicable Canadian and U.S. securities law. These statements reflect predictions of future events and trends and do not relate to historic events. They're subject to known and unknown risks, and future events and results may differ materially from such statements. For further information on these risks and their potential impacts, please see Treshearer's filings with securities regulators. To ask a question during the Q&A session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. Thank you. I'll now turn the call over to David Clare.

Thank you, operator. Good morning, everyone, and welcome. We delivered another strong quarter in Q2 with exciting momentum across primary lines and continued expansion of the infrastructure we have been building over the last several years. Operating ROE was 18%, book value grew 21% to a new record $843 million, and operating net income was $33.3 million, up 6% from last year. Surety was particularly strong. Gross premiums written grew 61% as both the Canadian and U.S. platforms continue to scale. Importantly, surety underwriting income grew over 150%, demonstrating the potential of a growing North American footprint. We continue to demonstrate strength and warranty, which grew premiums 39% as we expand relationships with our partners and auto purchasing activity was sustained. Our primary lines, surety, warranty, and corporate insurance grew by more than 35%. This is striking growth in some of our most established and profitable lines positioned for continued momentum as we expand our reach. Our progress and surety continued with small yet promising contributions from new larger limit Canadian bonding, growth in core portfolio, and continued momentum in our U.S. distribution relationships. In the U.S., our program's business was stable. While gross premiums written declined due to previously discussed nonrenewals, our ongoing portfolio grew 12%, and admitted business now contributes more than $160 million of premium, a record quarter. Momentum in program additions year to date has been promising as we see strong submissions and reinsurance support. We continue to observe softness in Canadian fronting where competition is elevated, though we are encouraged by the continued build of our pipeline. Investment portfolio increased to $1.6 billion, generating $18.9 million in interest and dividend income, up 12% over last year. Lower interest rates and tightening credit spreads in the quarter supported gains on fixed income, and equity and preferred shares performed well. Our posture remains conservative. We have yet to deploy significantly into equities, and don't expect to change that in the near term. Yields in the U.S. remain attractive, which when combined with uncertain macroeconomic conditions and healthy equity valuations inform our posture. We injected U.S. $40 million into our U.S. Shared Evaluancy to support growth and infrastructure, which increases the size of bonds that we can issue and should signal our confidence and excitement in this platform. This reflects an efficient funding of growth initiatives through a combination of internal capital and revolver drawing, compared to historically financing growth with equity. Our business continues to evolve. We have achieved outsized growth, insured and warranty, and improved quality in our program's portfolio. The relative contribution of primary lines is increasing. That evolution is important and consistent with the historic long-term drivers of Tricera's success. Market conditions vary by line and by geography. In Canada, we see softening conditions in corporate insurance and certain fronted lines, while in the U.S., reinsurance capacity is returning, particularly in the property space. Casualty remains firm, and we encourage and expect discipline from our partners and our underwriters. We are pleased with our performance this quarter and encouraged by both the momentum in primary lines, particularly surety and warranty. Our focus remains on growing our specialty platform profitably, and we are well armed through a strong capital base, experienced underwriting talent, and increasingly sophisticated infrastructure. We continue to believe we are building a unique platform and attractive niche markets with experienced and proven operators. This will allow us to replicate our success as we scale. Before I hand it off, I'd like to thank those who joined us on our recent Investor Day. The engagement and feedback has been strong, and we appreciate the opportunity to share our strategy in greater depth. I'll turn it over to David Scotland for a detailed walkthrough of our financials.

Thanks, David. I'll now provide a walkthrough of financial results for the quarter. Operating EPS, which reflects core performance from the business, was 69 cents for the quarter, reflecting growth of .2% over the prior year. This contributed to operating our RUE on a rolling 12-month basis of .8% at Q2 2025, which exceeded our mid-teens target. GPW was $900 million for the quarter, reflecting a reduction over the prior year, primarily as a result of non-renewed U.S. programs in 2024, which was offset by growth in primary lines. Gross premiums written grew by 9%, excluding premiums from our exited lines, and Treshear's primary lines grew by 35% in the quarter, which are the lines with the highest profit margin on GPW. Net insurance revenue, which approximates net premium earned, was $195 million for the quarter, reflecting growth of 18% over the prior year. The combined ratio for the group was .6% in the quarter, which was slightly higher than the prior year. The loss ratio in the quarter was slightly higher in both Treshear's specialty and U.S. programs in the prior year, but within our range of expectations. The expense ratio for the quarter was lower than the prior year for Treshear's specialty as a result of improved operational leverage and was slightly higher for U.S. programs. On a consolidated basis, the expense ratio was slightly higher than the prior year as a result of a shift in business mix towards Treshear's specialty, which has a higher expense ratio than our U.S. programs business, but a lower loss ratio. Underwriting income for the quarter was greater than the prior year, primarily as a result of growth in the business. Net investment income of $18.9 million increased by 11% in the quarter as a result of an increase in the size of the investment portfolio driven by new cash deployment. Our operating effective tax rate was .3% for the quarter reflecting the composition of taxable income between Canada and the U.S.