indirect Posted February 21, 2021 Share Posted February 21, 2021 I am a shareholder of Tripura, which i initially bought because of spin-off dynamics, one share of TSU for every 72 shares of BAM. As I started to own and study the company, part of the book value was european runoff from reinsurance in 08-09 era, part of the book was surety business in Canada and they were planning to spawn fronting business in USA. Now three yrs later fronting business in USA has taken off with good execution and runway. In the meantime they are planning to spawn surety business in USA. Their underwriting is excellent in Canada and should be similar in USA. I am sure there is some synergy with BAM business and BAM management owns 10% of TSU. So now the market has realized the situation and stock is selling at 4X BV. With the wisdom of spawning from Mohnish, I do not plan to sell and see how surety does which is even bigger market than fronting. Furthermore who knows 3 yrs later they may be spawning another new business. Thank you for the lesson, Mohnish Link to comment Share on other sites More sharing options...
snowball82 Posted February 22, 2021 Author Share Posted February 22, 2021 Now a 5 baggers and we see a successful launch into the admitted space with $ 11 M GPW in Q4 up from $ 2 M in Q3. Link to comment Share on other sites More sharing options...
Xerxes Posted February 22, 2021 Share Posted February 22, 2021 Congrat Snowball. I did not keep my BAM spinoffs. Sold them right away. Should have at least paid attention to this over the years. Link to comment Share on other sites More sharing options...
ourkid8 Posted February 22, 2021 Share Posted February 22, 2021 I am sitting on a 360 percent gain and it is a VERY large core position in my portfolio. TSU is a gift that keeps on giving and it is only starting... Congrats snowball. Now a 5 baggers and we see a successful launch into the admitted space with $ 11 M GPW in Q4 up from $ 2 M in Q3. Link to comment Share on other sites More sharing options...
snowball82 Posted February 23, 2021 Author Share Posted February 23, 2021 I am sitting on a 360 percent gain and it is a VERY large core position in my portfolio. TSU is a gift that keeps on giving and it is only starting... Congrats snowball. Now a 5 baggers and we see a successful launch into the admitted space with $ 11 M GPW in Q4 up from $ 2 M in Q3. Thank you Xerxes Link to comment Share on other sites More sharing options...
snowball82 Posted February 23, 2021 Author Share Posted February 23, 2021 I am sitting on a 360 percent gain and it is a VERY large core position in my portfolio. TSU is a gift that keeps on giving and it is only starting... Congrats snowball. Thank you ourkid8 and congrats to you. ROE going up significantly and now 48 fronting programs from 40 in Q3. They also said they want to consolidated the specialty insurance industry so ..we will see. Link to comment Share on other sites More sharing options...
snowball82 Posted February 27, 2021 Author Share Posted February 27, 2021 Last investor presentation http://www.trisura.com/wp-content/uploads/2021/02/TSU-Investor-Presentation_vF-1.pdf Link to comment Share on other sites More sharing options...
snowball82 Posted March 13, 2021 Author Share Posted March 13, 2021 DBRS Limited (DBRS Morningstar) assigned an Issuer Rating of BBB to Trisura Group Ltd. (Trisura or the Company). Concurrently, DBRS Morningstar assigned Financial Strength Ratings of A (low) to Trisura Guarantee Insurance Company and Trisura Specialty Insurance Company, the operating subsidiaries of Trisura. All trends are Stable. https://www.dbrsmorningstar.com/research/375156 Link to comment Share on other sites More sharing options...
jfan Posted March 24, 2021 Share Posted March 24, 2021 Came across this article that might be helpful in understanding the hybrid fronting appeal... https://medium.com/pillar-companies/the-insurance-stack-a-battle-for-margin-24aef01620a8#:~:text=The%20insurance%20stack%20is%20most,significant%20portion%20of%20the%20risk Link to comment Share on other sites More sharing options...
jfan Posted April 13, 2021 Share Posted April 13, 2021 Wrote a summary for trisura. Welcome the feedback https://thequestionableinvestor.substack.com/p/trisura?r=981jm&utm_campaign=post&utm_medium=web&utm_source=copy Link to comment Share on other sites More sharing options...
snowball82 Posted May 5, 2021 Author Share Posted May 5, 2021 (edited) Best quarter ever for them. EPS of $1.84 compared to $0.94 in Q1 2020 Quarterly net income of $19.3 million grew 131 % Gross premiums growth : 82.6% ROE : 16.1% https://www.globenewswire.com/news-release/2021/05/05/2223970/0/en/Trisura-Group-Reports-First-Quarter-2021-Results.html Edited May 5, 2021 by snowball82 Link to comment Share on other sites More sharing options...
Broeb22 Posted May 6, 2021 Share Posted May 6, 2021 Looks like their Canadian biz had a ton of prior year favorable development. Great they were reserved for a worse outcome but this is also probably a one-time pandemic related benefit that I estimate at $5million pre-tax. Link to comment Share on other sites More sharing options...
indirect Posted May 6, 2021 Share Posted May 6, 2021 2 hours ago, Broeb22 said: Looks like their Canadian biz had a ton of prior year favorable development. Great they were reserved for a worse outcome but this is also probably a one-time pandemic related benefit that I estimate at $5million pre-tax. I agree, still removing 5M leaves 60M annualized profit for a company that started in 2017 with a Mcap of 100M at spinoff. Kudos to management for executing fronting business and hopefully now US surety business. I hope management sheds some light on how much traction they are getting in US surety on tomorrow's conference call. Link to comment Share on other sites More sharing options...
Broeb22 Posted May 6, 2021 Share Posted May 6, 2021 Trisura just proves (to me) how hard it is to statically value quickly growing businesses. I mean I knew the profitability would inflect at some point but wow this quarter was just explosive profitability improvement. Just another good lesson for me in the value of patience, especially when a business (and its leadership) is doing what it said it would do. Link to comment Share on other sites More sharing options...
snowball82 Posted May 12, 2021 Author Share Posted May 12, 2021 https://www.theglobeandmail.com/investing/markets/inside-the-market/article-this-insurance-stock-has-tripled-during-the-pandemic-whats-next/ Link to comment Share on other sites More sharing options...
ourkid8 Posted May 27, 2021 Share Posted May 27, 2021 Hi all, what are current holders of TSU thinking of valuation and returns going forward? It's currently trading at 5.2x book value with a growing ROE. Trisura Canada is performing exceptionally well, along with their US fronting. I know the next area of growth is US Surety, which will require capital to grow and it's very different than the US fronting business which is majority fee based. Is everyone still ? I have a very low cost basis so its a hard decision on next steps. Link to comment Share on other sites More sharing options...
indirect Posted May 27, 2021 Share Posted May 27, 2021 If you estimate no growth, still their earnings may be about 8 CAD, so about 20 PE which for a growing company from a smaller base is not unreasonable. I believe in the future we won't do as well as in the past, but with them starting Surety business, which they are knowledgeable in Canada, I foresee a good future and will be hesitant to sell and incur huge tax liability now. However my crystal ball is always little murky. Link to comment Share on other sites More sharing options...
ourkid8 Posted May 27, 2021 Share Posted May 27, 2021 Nuvei, Capstone, Trisura, Stelco, MTY Foods and Lundin Gold Could Be Added to S&P/TSX Composite Index, ATB Says 10:24AM ET on Tuesday May 25, 2021 by MT Newswires Companies Mentioned: LUG, MTY, TSU, STLC, NVEI, CS 10:24 AM EDT, 05/25/2021 (MT Newswires) -- ATB Capital Markets said six companies could potentially be added to the S&P/TSX Composite Index at its next quarterly review. ATB said Nuvei Corp (NVEI.TO), Capstone Mining Corp. (CS.TO), Trisura Group Ltd. (TSU.TO), Stelco Holdings Inc. (STLC.TO), MTY Food Group Inc. (MTY.TO), and Lundin Gold Inc. (LUG.TO) could be added to the index. The firm said Organigram Holdings Inc (OGI.TO), Dream Office REIT (D-UN.TO), Westshore Terminals Investment Corp. (WTE.TO), Village Farms International Inc. (VFF.TO) and AcuityAds Holdings Inc. (AT.TO) could potentially be deleted from the index. "Index inclusions and removals remain an important attribution factor for share price returns both for direct index-linked reasons like ETFs, mutual funds and derivatives, and index changes impact many institutional investor's addressable universes and benchmarks," ATB said in a note to clients. The index adjustments are expected to be announced on Friday, June 11, with the changes anticipated a week later on June 18. ATB said it does not expect any changes to the S&P/TSX 60 Index. Price: 90.20, Change: +3.30, Percent Change: +3.80 Link to comment Share on other sites More sharing options...
snowball82 Posted May 29, 2021 Author Share Posted May 29, 2021 On 5/27/2021 at 5:08 PM, indirect said: If you estimate no growth, still their earnings may be about 8 CAD, so about 20 PE which for a growing company from a smaller base is not unreasonable. I believe in the future we won't do as well as in the past, but with them starting Surety business, which they are knowledgeable in Canada, I foresee a good future and will be hesitant to sell and incur huge tax liability now. However my crystal ball is always little murky. Good point @indirect I sometime made the mistake to sell a company executing well for valuations reasons but not with this one. This new presentation is well done to get an overview. Again, they still have huge room to growth in the admitted market. Of course not a recommendation. https://www.trisura.com/wp-content/uploads/2021/05/Marketing-Deck-May-2021_vF-1.pdf Link to comment Share on other sites More sharing options...
Broeb22 Posted June 9, 2021 Share Posted June 9, 2021 Trisura raising debt to get back to 20% debt to capital. Not sure exactly where they plan to use this, because I think they are maxed out on premiums to capital, but when you can borrow at 2.6%, it doesn't hurt to have it. https://www.globenewswire.com/news-release/2021/06/08/2244039/0/en/Trisura-Group-Ltd-Announces-C-75-Million-Senior-Unsecured-Notes-Offering.html Link to comment Share on other sites More sharing options...
snowball82 Posted June 15, 2021 Author Share Posted June 15, 2021 https://www.newswire.ca/news-releases/s-amp-p-dow-jones-indices-announces-changes-to-the-s-amp-p-tsx-composite-index-814863880.html Link to comment Share on other sites More sharing options...
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