Trisura Group Ltd.

Good morning. Welcome to Trishura Group Limited's third 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 and in discussing 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 treacherous 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. Q3 was another strong quarter for Trishura, underscoring our consistency and the growing opportunities across our platform. Our high teens operating ROE and mid-80s combined ratio reflects continued underwriting discipline. Book value per share rose to $18.90, up more than 20% year-over-year, supported by both profitability and strong investment returns. Primary lines are surety, warranty, and corporate insurance lines remain the foundation of our business, growing net insurance revenue 16% this quarter. Surety delivered another exceptional quarter, with net insurance revenue up 25% year-over-year. Although premium declined relative to Q3 2024 due to timing nuances of premium onboarding in the U.S., growth year-to-date is 22%, and we expect a return to Mateen's growth in Surety in Q4 of this year. Activity tied to infrastructure investment, manufacturing expansion, and data center construction across North America continues to accelerate. These sectors are expected to provide multi-year tailwinds for contract bonding demand. Our contractor business is strong and our U.S. platform continues to grow in scale and credibility with national brokers while expanding licensing with the recent addition of Texas in October. Warranty growth has been significant at 38% growth in written premium, driven by strong relationships with program partners and sustained demand in auto sales. We've been successful in expanding our share with our partners, driving a step up in our market presence. Although we expect growth to return to the mid-teens level in the future, our platform has scaled meaningfully. Corporate insurance was able to grow at a measured pace despite competitive pressure, with our selective underwriting and pricing discipline preserving margins. We continue to invest in our expansion into the U.S. which impacted net underwriting income in the quarter by almost $2 million. This phase of build-out is expected to yield a practice of comparable size to our Canadian business in time, a precedent established by our successful build-out in U.S. surety. Canadian frontings saw an expected decline in premium due to continued competition, though underwriting income improved through lower claims and enhanced efficiency. We expect the same in Q4 and are evaluating a strong pipeline of opportunities for 2026. U.S. programs returned to growth with gross written premiums up 18% in the quarter and admitted business reaching a record $179 million, a 22% increase. Increased capacity has improved reinsurance appetite and terms, setting up a constructive environment for growth. The quarter was particularly strong with several new programs contributing to growth, and we anticipate continued growth in Q4, albeit in the mid-single digits. Investment income continues to be a key driver of earnings growth. Our portfolio and investment income reached new records with $1.8 billion in assets and $20 million of investment income, up 24% year over year. That reflects portfolio expansion as well as prudent active management. Higher interest income combined with disciplined duration and credit positioning leaves us well-placed in today's environment. Investment contribution will continue to support earnings and book value growth into 2026. Conditions remain supportive for our strategy. Our focus on niche specialty lines experiences market trends differently than broad or commoditized lines. Reinsurance capacity has improved, and this is a tailwind for our program's business as partners seek access to stable and strategic capacity. The potential for large-scale investment in infrastructure, clean energy, and data center construction across North America continues to expand the addressable market for surety. These trends, combined with the depth of our underwriting talent and expanding broker relationships position Trishura to benefit from secular growth. At the same time, we remain focused on cost discipline and operating leverage. Our expense ratio reflects both a shift towards primary lines, which have higher commissions, and the investment phase we're in. We expect efficiencies to emerge as our platform continues to mature. This has been demonstrated through the build-out of our U.S. surety platform, which contributes meaningfully to top and bottom line. Year-to-date, U.S. surety is over 40% of our surety premiums. and operates at a combined ratio approach in our Canadian business. Q3 reinforces our ability to execute profitably while positioning for growth. Primary lines continue to drive our performance, and U.S. programs are benefiting from improved market conditions. Investment income remains a significant contributor to earnings quality and book value growth. As we look ahead, Tresure is well positioned to compound book value through underwriting discipline, balanced capital deployment, and continued expansion in markets where we have proven expertise. With that, I'll turn it over to David Scotland for a detailed review of our financials.

Thanks, David. I'll now provide a walkthrough of our financial results. Operating APS, which reflects our core performance from the business, was 71 cents per share for the quarter, reflecting growth of 4.4% over the prior year. This contributed to operating ROE on a rolling 12-month basis of 18% at Q3 2025, which exceeded our mid-teens target. Gross premiums written was $853 million for the quarter, an 11% increase year-over-year, reflecting continued growth across the portfolio. U.S. programs returned to growth in the quarter, posting an 18% increase in gross premiums written. Net insurance revenue, which approximates NESS premiums earned, was $197 million for the quarter, reflecting growth of 6.4% over the prior year. Growth was driven by continued expansion in our primary lines, which increased by 16%. The combined ratio for the group was 86% for the quarter, which was slightly higher than the prior year. The loss ratio for the quarter was slightly higher in tertiary specialty and slightly lower in U.S. programs than the prior year. Both remain within our range of expectations. On a consolidated basis, the expense ratio was slightly higher than the prior year, primarily as a result of the shift in the mix of business towards tertiary specialty, which has a higher expense ratio than our U.S. programs business, but a lower loss ratio. Underwriting income in the quarter was modestly lower than the prior year as a result of a slightly higher combined ratio offset by growth in the business. Net investment income of $20 million increased by 23.8% for the quarter as a result of an increase in the size of the investment portfolio, driven by new cash deployment, even as the broader interest rate environment continued to trend lower. Our operating effective tax rate was 24.3% for the quarter, reflecting the composition of taxable income between Canada and the US and consistent with previous quarters. Overall operating net income was $34.4 million for the quarter, which was greater than the prior year as a result of consistently profitable underwriting and growing net investment income. Non-operating results in the quarter and prior year consisted primarily of net gains associated with unrealized gains on the investment portfolio. Exit lines had an immaterial impact to net income in the quarter. Strong EPS contributed to a 15% increase in book value for the year-to-date period, resulting in a book value per share of $18.90 at September 30, 2025. Book value per share also increased as a result of unrealized gains through other comprehensive income due to favorable movement in our fixed income portfolio. This was partly offset for the year-to-date period by FX movement associated with a weakening US dollar against the Canadian currency. Book value has grown at an average rate of 26% over the past five years, ending the third quarter with over $900 million of equity. We are well on track to achieve our book value target of $1 billion by the end of 2027. Earlier this year, we drew down on our revolving credit facility to further capitalize our growing US surety balance sheet. This increased our debt to capital ratio to 13% at September 30th, 2025, which was higher than December 31st, 2024, but still well under our conservative leverage target of 20%. The company remains well capitalized and we expect to have sufficient capital to meet our regulatory capital requirements and continue to support a robust organic growth. David, I'll now turn things back over to you.