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TSU - Trisura


snowball82

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The company add new strategics partners and growth. This is a new one with Jonas software than I found recently :

 

https://www.portaltaxi.net/jonas-construction-software-and-trisura-insurance-forge-bonding-partnership/

 

.. and now than the acquisition is closed we can expect new revenues from the admitted market segment soon.

 

 

 

Disclosure  : Jonas is a CSU company. I own CSU and TSU.

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"Highlights

 

Gross and net premiums growth of 109.8% and 27.5% in Q4, and 104.7% and 23.5% for the full year supported by strong momentum in our U.S. business and continued growth in Canada.

 

Net income of $4.2 million in the quarter, and $5.1 million in 2019, driven by strong underwriting performance and investment income in Canada and a growing contribution from the U.S.

 

EPS of $0.47 in Q4 2019 and $0.69 in 2019, compared to $0.24 in Q4 2018 and 1.29 in 2018.

 

Book value per share of $21.58, a 9.9% increase over December 31, 2018.

 

Industry-leading results from our Canadian business, achieving a combined ratio of 82.9% in Q4 2019 and 87.8% in 2019, producing a 19.1% ROE for the year.

 

Continued acceleration in our U.S. business, producing $95.4 million in GPW in the quarter and $1.5 million in net income. For the year, GPW of $263.9 million drove fee income of $8.0 million and net income of $3.8 million representing our first year of profitability. This is an outstanding result considering the business commenced last year.

 

 

https://www.globenewswire.com/news-release/2020/02/13/1984248/0/en/Trisura-Group-Reports-Fourth-Quarter-and-2019-Annual-Results.html

 

Corporate Development

 

Following the close of the acquisition of TIC (formerly known as 21st Century Preferred Insurance Company) on November 1, 2019, Trisura continues to grow its capabilities with the intention of securing admitted licenses in all 50 states.

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Can I ask a dumb question, Snowball?

 

How does it benefit you long-term to trumpet every quarter of Trisura’s performance?

 

If you plan to buy any shares of TSU in the future, it would seem not over emphasizing their performance would benefit you more than trying to pump the stock.

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How does it benefit you long-term to trumpet every quarter of Trisura’s performance?

 

If you plan to buy any shares of TSU in the future, it would seem not over emphasizing their performance would benefit you more than trying to pump the stock.

 

That kind of thinking would make this board useless, no?

 

I assume y'all are super smart and already super rich, so sharing ideas is without ulterior motives.

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How does it benefit you long-term to trumpet every quarter of Trisura’s performance?

 

If you plan to buy any shares of TSU in the future, it would seem not over emphasizing their performance would benefit you more than trying to pump the stock.

 

That kind of thinking would make these board useless, no?

 

I assume y'all are super smart and already super rich, so sharing ideas is without ulterior motives.

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Can I ask a dumb question, Snowball?

 

How does it benefit you long-term to trumpet every quarter of Trisura’s performance?

 

If you plan to buy any shares of TSU in the future, it would seem not over emphasizing their performance would benefit you more than trying to pump the stock.

 

We are some here on this forum to believe we can help each other.

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Can I ask a dumb question, Snowball?

 

How does it benefit you long-term to trumpet every quarter of Trisura’s performance?

 

If you plan to buy any shares of TSU in the future, it would seem not over emphasizing their performance would benefit you more than trying to pump the stock.

 

Do you believe that mentioning this stock here will boost TSU‘s share price. Based on my experience, that’s not the case, not even for small caps. Maybe for microcaps with very small float, trumpeting works in terms of temporarily increasing the shareprice, but even of that I am doubtful.

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Can I ask a dumb question, Snowball?

 

How does it benefit you long-term to trumpet every quarter of Trisura’s performance?

 

If you plan to buy any shares of TSU in the future, it would seem not over emphasizing their performance would benefit you more than trying to pump the stock.

 

Do you believe that mentioning this stock here will boost TSU‘s share price. Based on my experience, that’s not the case, not even for small caps. Maybe for microcaps with very small float, trumpeting works in terms of temporarily increasing the shareprice, but even of that I am doubtful.

 

For microcaps and illiquid special situations, CoBF posting effect is real. There's sometimes a bump up for couple days at least.

 

 

 

Posting quarterly results of companies IMO is a reasonable way to keep discussion alive and I appreciate it.

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The stock price is up 100 % vs a year ago. Likely some analysts and investors think the US fronting platform still has large room for growth.

 

From the letter to shareholders :

 

"... Our goal in 2019 was to demonstrate the scalability and profitability of our U.S. fronting platform.

Following a healthy ramp in 2018, we grew our team to 22 professionals, and bound an additional 15

programs generating $264 million in gross premium. We increased premium and net income in every

quarter and anticipate growth to continue. As programs mature, earned premium and fee income accrue

to our net income, driving profits from break even in the first quarter to $1.6 million in the fourth quarter,

despite continued investment in infrastructure and costs associated with our acquisition. As we look to

2020 our focus will be on maintaining our growth trajectory in the excess and surplus lines, while

introducing admitted capabilities through the acquisition and expansion of new licenses.

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Trisura results so far have been great. There is a risk that they might write crappy business because of fast growth. I guess we have to trust them for now and monitor how things go.

 

Disclosure: I have a position in Trisura.

 

Agreed. It's a very new area of insurance for them. My take is that Trisura had historically been a solid underwriter in Canada, so they organizational discipline to have solid underwriting is there, though they may "learn" along the way through some losses.

 

The other risk in my mind is that Canadian surety could get ugly. With the strength of real estate these days, I could see surety getting ugly if the Canadian economy hiccups. The data I found that went back to the CRE bust in the early 1990's showed peak combined ratios approaching 140% for two consecutive years, which obviously can dent capital ratios significantly if repeated.

 

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I have a limited understanding of surety insurance.  This type of event if it was to prolong could be brutal on the surety lines, correct?

 

If contractors went bankrupt, yes. I found data stating surety combined ratio went to 140% in Canada in the '90-92 CRE crisis.

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I have a limited understanding of surety insurance.  This type of event if it was to prolong could be brutal on the surety lines, correct?

 

If contractors went bankrupt, yes. I found data stating surety combined ratio went to 140% in Canada in the '90-92 CRE crisis.

 

30 years ago I was a young man. Maybe some things changed in this industry over time too.

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