Trisura Group Ltd.

Good morning. Welcome to Trishura Group Limited First Quarter 2026 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 are 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 Trishara's filings with the securities regulators. To ask a question, please press star 11 on your telephone. Thank you. I'll now turn the call over to David Clare.

Thank you, Daniel. Good morning, everyone, and welcome.

We had a strong start to the year, extending consistent execution and momentum for 2025, underpinned by quality underwriting and a customer-focused approach. This was our best Q1 operating net earnings in our history, demonstrative of our ability to grow profitably through expansion. Underwriting performance was robust, with an 84% combined ratio and book value per share growth over 16%, approaching $20 per share. Our evolution continues, writing proportionally more primary lines business with attractive durable margins as we expanded both established and de novo segments. Primary lines, surety, corporate insurance, and warranty remain our foundation, growing 13% in the quarter. Surety grew 14% on a constant currency basis with success in Canadian contract surety and continued momentum in our U.S. expansion. We made meaningful progress in our U.S. licensing, receiving approvals in five states, including Florida most recently, one of the most active construction and infrastructure markets in the U.S. We continue to pursue five remaining state licenses and expect our expanding footprint to support growth. Corporate insurance demonstrated consistent growth and improved profitability despite a softer market. with GPW increasing over 5% and underwriting income nearly doubling, supported by a strong loss ratio and improved operational leverage in our U.S. practice. Progress in U.S. corporate insurance follows the approach proven in surety, expanding in areas we know well and attracting experienced talent supported by a centralized head office. We are seeing signs of momentum, with Q1 premiums in U.S. corporate insurance exceeding full year 2025. While still early stage, this platform is expected to contribute meaningfully to profitability and scale over time. Warranty net insurance revenue increased 19%, reflecting the maturation and expansion of existing programs after a strong 2025. U.S. program premium growth of 11% and net insurance revenues growth of 37% were strong, reflecting contributions from existing and new programs, as well as the backdrop of a more supportive reinsurance market. We achieved an 80% combined ratio, benefiting from consistent performance and continued investment in infrastructure. Our scale, permanent capital, and diversification increasingly positioned Trishura as a preferred long-term partner for strong, profitability-focused MGAs. Canadian fronting underwriting income was steady at about $5 million, despite pressure from a softening market. We expect decreased premium this year in Canadian fronting, but remain committed to the line and its potential to contribute to growth and profitability over the long term. We continue to onboard new partners selectively, building a pipeline that we expect will increasingly support GPW over the coming quarters. Investment income grew 16.5% to $21.2 million in the quarter, driven by ongoing contributions to the portfolio and mitigated by some seasonality and FX impacts. Defending yield and positioning the portfolio constructively through a period of elevated volatility was a key focus in the quarter. The portfolio remains conservatively positioned, ready to take advantage of market dislocation as attractive opportunities arise. The completion of our $200 million senior unsecured notes offering in March was a meaningful milestone. It represents our largest capital raise to date and refinanced existing indebtedness, extending our maturity profile. and strengthen the balance sheet in preparation for future investment. This was executed well by the team, despite geopolitical volatility. Treasurer has scaled meaningfully, and we believe the opportunity ahead is significant. We remain committed to the pursuit of profitable growth through expansion of our primary lines and curation of a diverse, high-quality portfolio of programs in front of business. Above-average underwriting profitability, combined with enhanced investment income, is expected to drive consistent increases in shareholders' equity. Expansion into the U.S. builds on two decades of disciplined underwriting. As the platform matures, we expect them to equal or exceed the earnings contribution of their Canadian counterparts. The significance and profitability of our U.S. surety platform and early momentum realized in U.S. corporate insurance this quarter lends credibility to the attractiveness of our geographic expansion. As we navigate the balance of 2025, our operating priorities remain consistent, scaling profitably in primary lines expanding deliberately in the US, and maintaining the discipline that has underpinned our track record. The structural tailwinds supporting surety remain intact, and we are confident in our ability to replicate our success in corporate insurance. Primary lines continue to grow at attractive margins, and investment income is adding meaningfully to earnings quality and predictability. Volatility creates opportunities to demonstrate consistent insurance appetite, invest opportunistically, and strengthen our reputation. With the strongest capital base in our history and a platform that continues to scale, we are optimistic about the years ahead.