A Growing International Specialty Insurer Annual Meeting of Shareholders May 10, 2018
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A Growing International Specialty InsurerAnnual Meeting of Shareholders
May 10, 2018
Page 1Agenda
1. Company Overview and Director Nominees Greg Morrison, CEO, Trisura Group Ltd.
2. Specialty Insurance Market and Canadian Business Lines Mike George, CEO, Trisura Guarantee
3. US and International Business Lines, Operating Metrics, Investments and Strategic PrioritiesDavid Clare, Senior Vice President, Trisura Group Ltd.
Page 2Business Overview
• International specialty insurance provider operating in surety, risk solutions, corporate insurance and reinsurance
• Three 100% owned operating companies:
− Trisura Guarantee - Successful 12 year operating history in the Canadian specialty insurance market
− Trisura Specialty - Newly formed hybrid fronting insurer in the U.S. non-admitted insurance market
− Trisura International - Off-shore reinsurer that can act as an internal reinsurer for Trisura Group
• Dedicated and specialized in-house investment management function
• Traded on the TSX under the symbol TSU and supported by a diverse group of shareholders including Partners Value Investments, a ~$3 billion market capitalization publicly listed investment holding company, which holds a 9% interest in Brookfield Asset Management Inc. and a 15% interest in Trisura
TrisuraGroup Ltd.
Trisura Guarantee
Trisura Guarantee
Holdco
Trisura International
TrisuraSpecialty
100%
100% 100%
100%
OSFI Oklahoma DOI FSC (Barbados)Regulator
Corporate Structure
Page 3
• Anchored by Canadian specialty lines franchise operating for 12 years with track-record of growth and profitability
• Newly capitalized U.S. platform is actively binding business
• Strong distribution partnerships and expanding network
• Existing offshore reinsurance subsidiary provides risk management, capital support and internal reinsurance
• $122 million of book value ($18.35 in BVPS as at December 31, 2018)
• Debt-to-capital ratio of 20%
• Strong capital position in Canada, with 255% MCT ratio, excess capital in U.S. and International subsidiaries
• 5-year average 88.0% combined ratio in Canada
• U.S. platform launched in 2017 is actively writing business in excess and surplus lines
• Opportunity to redeploy capital from reinsurance run-off into active platforms
• Continued expectation of strong top line growth in Canada
• Access to capital and international reinsurance relationships to fund growth
• Experienced senior management team with a diverse set of backgrounds, strong relationships and reputation with rating agencies, insurance regulators and business partners
• Led by Greg Morrison, with more than 35 years of experience in the insurance and reinsurance industries; previously served as CEO of Platinum Underwriters Holdings and London Reinsurance Group
• Board of Directors comprised of seasoned financial services executives with diverse experience
• Lead shareholder Partners Value Investments LP has significant ownership and a strong balance sheet
• Senior management group directly owns 14% of shares outstanding
• Strong access to capital, supportive institutional shareholders, and financial strength to pursue growth opportunities
Diversified Specialty Insurance Platform
Who We Are
Developing platform targeting mid-teen ROEs and significant growth in book value
Strong FinancialProfile
Growth Opportunities Across the Platform
Globally Experienced Management Team &
Board of Directors
Strong Shareholders & Significant Management
Ownership
Page 4
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
20.00
21.00
22.00
23.00
24.00
25.00
26.00
27.00
28.00
29.00
30.00
May-30 Jun-30 Jul-31 Aug-31 Sep-30 Oct-31 Nov-30 Dec-31 Jan-31 Feb-28 Mar-31
Daily
Vo
lum
e
Sh
are
Price
TSU Share Price & Volume
2017: A Transformational Year
Trisura Group Ltd. Share Price and Volume
Key Achievements
June 2017: Completed Spin-off from Brookfield
June - December 2017: Developed Public Company Infrastructure
June - December 2017: Established Trisura Specialty’s Capabilities
October 2017: Executed Small Trisura Group Acquisition in Canada
December 2017: Completed Trisura Guarantee Management Buyout
December 2017: Approved Consolidation / Split and Option Plan
Volume (RHS) Share Price (LHS)
Page 5
Represents senior management across Trisura
Group Ltd., Trisura Guarantee, Trisura Specialty
and Trisura International
Ownership Summary
Trisura Management
Top 5 Institutions
8%
Other Institutional & Retail
63%
Partners Value Investments
15%
Trisura Management
14%
Partnership listed on the TSX Venture Exchange
whose principal investment is a 9% equity ownership
interest in Brookfield Asset Management Inc.
Partners Value Investments
Page 6Board, Management & Board Nominees
• Trisura has a robust management team and board of directors consisting of insurance executives with significant Canadian, U.S. and international experience
Board of Directors
Management
David Nowak Outgoing Brookfield sponsored board member
A.J. Silber Outgoing Brookfield sponsored board member
Barton Hedges Actuary; formerly CEO, Greenlight Re (NYSE: GLRE)
Paul Gallagher Accountant
Greg Morrison CEO, Trisura Group Ltd.
Greg Morrison CEO, Trisura Group Ltd.
Jimmy Doyle CFO, CRO, Trisura Group Ltd.
Mike George CEO, Trisura Guarantee
Eileen Sweeney President, Trisura Specialty
New Directors
Robert “Bob” Taylor
George Myhal
Page 7Specialty Insurance Industry
• Commercial products and services not written by most companies, requiring focused underwriting knowledge and financial and structuring expertise
• Trisura focuses on Surety, Risk Solutions (Warranty and Fronting), and Corporate Insurance
• Specialized knowledge required for underwriting allows for pricing power compared to standard insurance, supporting strong underwriting performance and operational ROEs
• Trisura has a history of strong underwriting in Canada, and participates in excess and surplus (E&S) lines in the U.S.
1 Source: MSA Research. Analysis excludes Lloyd’s, for the year ended December 31, 2017. 2 Includes cyber, directors and officers, excess, professional, umbrella and pollution liability.3 Excludes commercial property, accident and sickness and general liability lines. Total 2017 premiums for Trisura in 2017 were $150 million.
Trisura is a Leading Specialty Insurer in Canada1,2,3 ($ millions)
$3
32
$3
09
$2
64
$2
50
$2
43
$2
19
$2
03
$1
87
$1
59
$1
52
$1
41
$1
37
$1
29
$1
23
$1
10
$1
09
$1
02
$1
00
$1
00
$6
3
$5
0
$48
$4
7
$4
3
$4
2
$4
2
$4
1
$4
1
$3
4
$3
3
Pe
er
Pe
er
Pe
er
Pe
er
Pe
er
Pe
er
Pe
er
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er
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er
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er
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er
Pe
er
Pe
er
Trisu
ra
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er
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er
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er
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er
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er
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er
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er
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er
Canadian Specialty Market1
Specialty Liability, 53.8%
Surety, 14.3%
Boiler, 9.5%
Marine, 6.7%
Credit Protection, 4.3%
Equipment Warranty, 2.9%
Credit, 2.9%
Fidelity, 2.4%
Hail, 1.7%
Legal Expense, 1.5%
2017 DWP:$5.1 billion
2
3
Page 8
Contract Surety
Commercial Surety
Developer
84.2% 81.6% 78.7% 82.8% 71.8%
Gross Premiums Written and Fees Combined Ratio
2012 to 2017 CAGR: 11.2%
31,19437,226 40,696 42,994 47,088 53,075
2012 2013 2014 2015 2016 2017
80.8%
Canadian Specialty P&C: Surety
Operating Results ($000s)
History of Strong Underwriting and
Growth
Leading and Proprietary
E-Commerce Platform(Trisura OnLine)
Strong Brand and Market Expertise with In-House Execution
Capabilities
#6 in Canadian Surety Market (~$650 million
industry1)
Note: From 2012 to 2017, substantially all premiums were written by Trisura Guarantee in the Canadian specialty insurance market.1 Management estimates based on Surety Association of Canada data.
Operating Lines
Surety Represented 34% of 2017 Gross Premiums Written
Longstanding Relationships with Broker Community
Page 9
22,144 22,720 25,224 28,456 31,760 32,719
2012 2013 2014 2015 2016 2017
Directors’ & Officers’ (D&O) Liability
Professional Liability
Technology & Cyber Liability
Multimedia Liability
Fidelity
Comprehensive General Liability and Property
95.4% 94.6% 78.9% 87.7% 78.1%
2012 to 2017 CAGR: 8.1%
96.0%
Canadian Specialty P&C: Corporate Insurance
Longstanding Relationships with Broker Community
Leading Professional Liability Underwriter in
Canada
Market Leading Claims Management Capabilities
Top 13 D&O and E&O and Top 10 Fidelity Insurer in
Canada
Gross Premiums Written and Fees Combined Ratio
Operating Results ($000s)
Note: From 2012 to 2017, substantially all premiums were written by Trisura Guarantee in the Canadian specialty insurance market.
Operating Lines
Corporate Insurance Represented 22% of 2017 Gross Premiums Written
Page 10
14,21721,448
27,57635,840
49,305
64,204
2012 2013 2014 2015 2016 2017
81.0% 90.3% 110.8% 86.6% 139.3%
Warranty Programs
Fronting Solutions
Creditor Protection
Associations and Groups
Note: From 2012 to 2017, substantially all premiums were written by Trisura Guarantee in the Canadian specialty insurance market.
92.8%
Canadian Specialty P&C: Risk Solutions
2012 to 2017 CAGR: 36.8%
Innovative & CustomizedInsurance Structures
Caters to a DiverseSet of Clients
Top 10 in Canadian Warranty & Risk Solutions
Gross Premiums Written and Fees Combined Ratio
Operating Results ($000s)
Focus Area
Risk Solutions Represented 44% of 2017 Gross Premiums Written
Page 11
46% 46% 44% 40% 37% 35%
21%26%
29%33%
38%
43%
33%
28%
27%
27%
25%
22%
88.8%87.9%
85.8%
85.4%
92.2%
88.9%
60.0%
65.0%
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2012 2013 2014 2015 2016 2017
Surety Risk Solutions Corporate Insurance Combined Ratio
$68
$81
(Unaudited)
$94
$107
$128
$150
Note: From 2012 to 2017, substantially all premiums were written by Trisura Guarantee in the Canadian specialty insurance market.
Canadian Specialty P&C: Operating Metrics
Segmented Gross Premiums Written, Fees & Combined Ratio (millions)
Page 12
• Focused on Excess and Surplus (non-admitted) insurance premiums
• Low-risk business benefits from reinsurance partners, taking 0-10% risk positions, and ceding the remainder to well-capitalized, highly rated reinsurance participants
• Substantial reinsurance capacity allows Trisura to cede risk on its policies to reinsurers on commercially favourable terms
• Positioned to aggregate business from program administrators and other partners and provide access to that business to the international reinsurance market
• Trisura Specialty will address the lack of supply of effective capital arrangements thereby providing for program administrators focused on specialty insurance in the U.S
• Regulatory approval received for Excess and Surplus lines U.S. specialty insurance business in 2017
− US$50 million of capital
− A- (Excellent) rating from AM Best in September 2017
− Based in Oklahoma City, our team has 11 members and wrote their first policy in February 2018
− Continue to evaluate a robust pipeline of transactions with a high quality partners
Fee-based Business Model
Initial Focus on Providing Program
Services
Fee-Based Platform with Significant Growth Potential in E&S Segment of the Specialty Market
U.S. Specialty P&C
Page 13
34
21
1513
$150,263
$122,077
$99,255$91,230
0
5
10
15
20
25
30
35
40
0
20
40
60
80
100
120
140
160
2014 2015 2016 2017
# of In-force Reinsurance Contracts Total Reserves
Life$72,880
73%
P&C$26,375
27%
As at Q4/2016
Life$68,896
76%
P&C$22,334
24%
As at Q4/2017
1 USDCAD exchange rate of 1.2571 at 12/31/2017 used to convert USD reserves to CAD..
Reinsurance
• Founded in 2001, Trisura International wrote structured reinsurance contracts through quota share (prospective), loss portfolio transfer (retrospective) and unique opportunities on multi-line basis
• At the end of 2008, due to a declining reinsurance market, the financial crisis and Brookfield Asset Management’s alternative uses for capital, Trisura International ceased writing new business
− Trisura International has $91 million1 in reserves across 13 in-force reinsurance contracts
− The run-off has been managed conservatively and profitably since they stopped writing business
• Trisura International can provide capital and reinsurance support to Trisura Guarantee and Trisura Specialty
Reserves & # of In-force Reinsurance Contracts ($000s) Net Claim Reserves ($000s)
Page 14
Assets
Cash and Cash Equivalents 165,675Investments 190,641
Other Assets 132,044
Total Assets 488,360
Liabilities & Shareholder's Equity
Unearned Premiums 115,357
Unpaid Claims & Loss Adjustment Provisions 178,885
Other Liabilities 72,616
Total Liabilities 366,858
Shareholder's Equity 121,502
Total Liabilities & Shareholder's Equity 488,360
Shares Outstanding (000's) 6,622
Book Value Per Share 18.35
Note: The financial data listed above is unaudited summary pro forma financial data for Trisura Group for the periods indicated. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods, and actual results may differ materially from those listed above.
Balance Sheet (As at December 31, 2017)
(000s)
Trisura
Guarantee
Trisura
International
Trisura
Specialty Corporate Total
Assets 317,124 119,208 56,888 (4,860) 488,360
Liabilities 243,979 92,658 426 29,795 366,858Book Value 73,145 26,550 56,462 (34,655) 121,502Book Value Per Share 11.05 4.01 8.53 (5.23) 18.35
Conservative balance sheet and investment portfolio
Balance Sheet ($000s)
Segmented Book Value
Page 15
FInancial,30%
Government,18%
Consumer, Cyclical,
12%
Energy,9%
Money Market,8%
Real Estate,6%
Communications,4%
Utilities, 4%
Consumer, Non-cyclical, 4%
Industrial, 2%Technology, 2%
Basic Materials, 1%Cash &
Equivalents, 8%
Government Bonds,18%
Investment Grade,53%
Preferred Shares, 7%
Equity,14%
Investments
Portfolio by Asset Class Portfolio by Industry
Note: US portfolio projected as at current prices, converted to C$ at spot FX.
Fixed Income Portfolio by Rating Fixed Income Portfolio by Term
AAA,21%
AA,11%
A,41%
BBB,27%
2018,18%
2019,14%
2020,16%2021,
23%
2022,25%
Thereafter, 4%
Page 16Strategic Priorities 2018
• Refine capital allocation and risk management model across investments, reinsurance and underwriting
• Target lower MCT in Canada and higher risk retention on profitable business
• Enhance investment yield and improve diversification by taking global investment posture and accessing new investment structures through existing relationships
• Integrating best practices and administrative functions across geographies
• Maintain and support cultural edge developed by Trisura Guarantee
• Growth in the U.S. fee base and business
• Continue to develop relationship with institutional investors and brokers
• Capture embedded growth opportunities in existing business
• Market share increases in Canada - continue to build existing partner network
• Leverage existing strong / profitable relationships with program administrators, insurance organizations, reinsurance companies and intermediaries to generate business
• Pursue acquisition opportunities in a fragmented global specialty P&C market
• Expand product offering
• Hire of additional talent to launch new niche offerings
• Leverage global reinsurance capabilities
Risk and Capital
Management
Growth
Page 17
• Anchored by Canadian specialty lines franchise operating for 12 years with track-record of growth and profitability
• Newly capitalized U.S. platform is actively binding business
• Strong distribution partnerships and expanding network
• Existing offshore reinsurance subsidiary provides risk management, capital support and internal reinsurance
• $122 million of book value ($18.35 in BVPS as at December 31, 2018)
• Debt-to-capital ratio of 20%
• Strong capital position in Canada, with 255% MCT ratio, excess capital in U.S. and International subsidiaries
• 5-year average 88.0% combined ratio in Canada
• U.S. platform launched in 2017 is actively writing business in excess and surplus lines
• Opportunity to redeploy capital from reinsurance run-off into active platforms
• Continued expectation of strong top line growth in Canada
• Access to capital and international reinsurance relationships to fund growth
• Experienced senior management team with a diverse set of backgrounds, strong relationships and reputation with rating agencies, insurance regulators and business partners
• Led by Greg Morrison, with more than 35 years of experience in the insurance and reinsurance industries; previously served as CEO of Platinum Underwriters Holdings and London Reinsurance Group
• Board of Directors comprised of seasoned financial services executives with diverse experience
• Lead shareholder Partners Value Investments LP has significant ownership and a strong balance sheet
• Senior management group directly owns 14% of shares outstanding
• Strong access to capital, supportive institutional shareholders, and financial strength to pursue growth opportunities
Diversified Specialty Insurance Platform
Who We Are
Developing platform targeting mid-teen ROEs and significant growth in book value
Strong FinancialProfile
Growth Opportunities Across the Platform
Globally Experienced Management Team &
Board of Directors
Strong Shareholders & Significant Management
Ownership
Page 18
Questions?
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