Trisura Group Ltd.

Good morning. Welcome to Trishura Group Limited's second 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'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 Treasurer's Filings with Securities Regulators. To ask a question during the Q&A session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one 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. In Q2, we extended the consistent execution and momentum of recent quarters. We achieved a significant milestone, surpassing $1 billion in book value, reaching our 2027 target ahead of schedule, underscored by disciplined, profitable underwriting and strong growth in investment returns. Underwriting performance was robust, with a combined ratio below 85%, driving double-digit growth in earnings, while book value per share grew more than 20%, reaching over $21 per share. Our evolution continues as we write proportionally more primary lines business with attractive, durable margins as we expand in both established and emerging platforms. Primary lines, surety, corporate insurance, and warranty remain our foundation, growing 7% in the quarter. Surety underwriting income rose 44%, supported by a strong loss ratio of 17%. Growth continued across key segments. In Canada, investments made in new capabilities are bearing fruit, demonstrated by increased submission activity and larger limit contract surety opportunities. While in the U.S., we injected further capital in our Treasury-listed balance sheet to support underwriting across a more widely licensed platform. We added licenses in California, Minnesota, and Hawaii, and look forward to building our presence. Corporate insurance delivered solid growth and higher underwriting income. with premium accelerating and underwriting income up 60%. Our U.S. team is gaining traction, supported by a depth navigation of a competitive market in Canada where we continue to grow. Progress in U.S. corporate insurance follows our surety playbook, expanding in areas we know and attracting experienced talent, supported by a centralized head office. While still early, this platform is expected to contribute meaningfully to profitability and scale over time. Warranty net insurance revenue increased 19%, reflecting the earned premium impact of stronger GPW in prior periods. Business mix is expected to drive a slightly higher than historic combined ratio for the remainder of the year, while elevated claims experienced on select programs are expected to normalize. A consistent approach in U.S. programs has resulted in a strong contribution to our results. We achieved an 80% combined ratio, benefiting from steady performance and continued investment in infrastructure. Our scale, permanent capital, and diversification differentiate Trishura as a preferred partner for strong, profitability-focused MGAs. We have seen several recent opportunities to expand relationships in the U.S. to our Canadian platform, a unique advantage of our North American posture. Canadian fronting underwriting income was steady at about $5 million, Modestly higher than Q2 2025 despite pressure from the softening market and increased competition. We expect decreased premium this year on Canadian fronting but remain committed to the line and its potential to grow profitably over the long term. We have continued to onboard new partners, building a pipeline that we expect will support premium over the coming quarters. Trishura has scaled meaningfully and we believe the opportunity ahead is significant. We remain committed to the pursuit of profitable growth We are celebrating our 20th year at Trishura, and it is striking to achieve our goal of a billion dollars in equity on that anniversary. Decades of underwriting experience underpin our continued expansion, in both Canada and the U.S. and as our US platforms mature, we expect them to equal or exceed the earnings contribution of their Canadian counterparts. We continue to invest in our future, attracting senior management talent to our organization. This includes our new North American leader of corporate insurance, Derek Spafford, who joined us to spearhead growth and expansion of Appetite across North America. The opportunity to build our US presence and expand our share in Canada is significant. We are looking forward to the years ahead. Our AI pilot programs have shown strong adoption and promising results in multiple areas of the organization. Proof-of-concept initiatives in underwriting, actuarial, and surety are demonstrating efficiency gains with human oversight maintained throughout. We continue to build on this momentum as we work towards broader rollout. Our goals are clear, scaling profitably in primary lines, expanding deliberately in the U.S., and maintaining the discipline that has underpinned our track record. The structural tailwinds supporting surety remain intact as our practice establishes a larger presence across North America. Our U.S. corporate insurance platform is gaining traction. Q2 exceeded Q1 premium with momentum building. Primary lines continue to grow at attractive margins, and investment income is adding meaningfully to the quality and predictability of earnings. We believe we are well equipped to navigate cycles. The backdrop for surety is constructive, and despite softening trends in corporate insurance, Our specialty approach continues to generate opportunities to grow profitably. We are significant consumers of reinsurance and increasingly supportive markets create opportunities to optimize reinsurance programs, build partnerships, and expand our impact. Trishare's increasingly diversified earnings base, strong capital position, collaborative culture, and investment in technology and talent position us well for the next phase of growth. With that, I'd like to turn it over to David Scotland for a detailed review of financial results.

Thanks, David. I'll now provide a walkthrough of financial results for the quarter, as well as provide some additional perspective on our evolving mix of business and our capital position. The second quarter represented another profitable quarter for Trishura and reflected continued progress in the evolution of our platform. Operating earnings per share was $0.76 for the quarter, up 10%, contributing to a solid operating return on equity of 16.7%, comfortably above our mid-teens target. Underwriting results were strong, net investment income continued to increase, and bulk value per share grew further in the quarter, up 20% year-over-year. While reported top-line growth was mixed, we believe the underlying momentum of the business remains healthy. Our primary lines businesses continue to generate attractive growth and underwriting profitability, while competitive conditions in Canadian fronting and timing-related factors and charity drove a modest decline in premium for the quarter. Net insurance revenue increased by 1%, reflecting the continued growth in primary lines of 6.6%, partially offset by contraction in Canadian fronting. In addition, year-over-year premium comparisons in surety were affected by an unusually strong prior year quarter that benefited from timing effects related to new distribution relationships. We are encouraged by the continued momentum in primary lines, which represent more than two-thirds of net premiums written over the last 12 months. Comprising surety, corporate insurance, and warranty, these businesses represent the historic foundation of Trashura and continue to be central to our long-term growth strategy and profitability. The mix of premiums continues to shift towards businesses that generate more profitability per dollar of premium and where we are investing the most for future growth. We expect our primary lines to achieve mid-teens growth in net insurance revenue for the full year. The unusually strong surety comparison that affected the second quarter is expected to normalize over the balance of the year, and we remain encouraged by opportunities in corporate insurance. Canadian fronting pressured premium growth in the quarter, however, we continue to believe fronting offers attractive long-term opportunities and maintain a healthy pipeline. Our surety business continues to benefit from momentum in both Canada and the U.S. Approximately 45% of our surety premium in 2026 is expected to be generated from our U.S. platform, and we continue to see strong partner engagement, with Tresura ranked among the top 30 U.S. surety writers. During the quarter, we contributed an additional $50 million USD in capital to our Treasury-listed balance sheet, building on the momentum of recent state licensing additions, including California, positioning the platform for further expansion. Given the size of the market opportunity, we expect to continue supporting the platform through disciplined and measured capital deployment over time. Importantly, the economics of our U.S. surety business are broadly consistent with those of our Canadian platform. While business mix differs modestly, returns remain attractive and we continue to see significant opportunity for profitable growth. Corporate insurance also continued to make progress in the quarter. While still relatively small, our US corporate insurance platform continues to build scale and we remain encouraged by its trajectory. We expect it to increasingly contribute to underwriting income and grow its relevance to our top line. Turning to profitability, our underwriting performance remains strong in the quarter, with a consolidated combined ratio of 84.9%. The loss ratio in the quarter remains solid and within our expectations, with modest decrease from prior year reflecting a lower loss ratio in surety and US programs. The expense ratio was consistent with the prior year and within expectations for the quarter. Underwriting income increased in the quarter, reflecting business growth and strong contributions from surety and corporate insurance. We are pleased with the quality of the business being written across the portfolio and our underwriting performance continues to support our mid-team's operating ROE objectives. Net investment income of $22 million increased by 18% in the quarter, driven by new cash deployment to the investment portfolio. Investment income is becoming an increasingly meaningful contributor to earnings as the business scales and provides additional diversification alongside our underwriting results. Our operating effective tax rate was 24.7% in the quarter, resulting from the composition of taxable income between Canada and the US. Overall, operating net income for the quarter grew 10.7% to $36.8 million, reflecting consistent profitable underwriting and growing net investment income. Non-operating results in the quarter primarily consisted of unrealized gains on the investment portfolio. Exited lines had an immaterial impact to net income in the quarter. Turning to capital, David highlighted earlier that our book value exceeded $1 billion during the quarter, achieving the objective we had previously established for the end of 2027, more than one year ahead of schedule. We are pleased with that achievement and view it as a reflection of the continued compounding of the business through profitable underwriting, disciplined capital allocation, and consistent execution over time. Book value has grown at an average rate of 26% for the last five years. As the organization scales, a larger capital base provides increasing flexibility to support organic growth initiatives, particularly across our U.S. primary lines, while creating additional opportunities to deploy capital in a disciplined manner. Our balance sheet remains conservatively positioned with debt to capital ratio of 16.5%, well below our long-term target of 25%, providing meaningful financial flexibility. The company remains well capitalized and with capacity to meet regulatory requirements and support growth. As we progress through 2026, we believe our diversified specialty platform, strong capital, and 20-year track record of disciplined underwriting position us well for the opportunities ahead. We remain focused on deploying capital thoughtfully, growing profitably, and compounding long-term shareholder value. David, I'll now turn things back over to you.