CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 11, 2023 09:08 AM (EST)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of the operating entities of Trisura Group Ltd. (Trisura) [TSX:TSU] (Toronto, Ontario, Canada), which include Trisura Specialty Insurance Company (TSIC), Trisura Insurance Company (TIC), Bricktown Specialty Insurance Company (BSIC) and Trisura Guarantee Insurance Company (TGIC) . TSIC, TIC, and BSIC are domiciled in Oklahoma City, OK while TGIC is domiciled in Toronto, Ontario, Canada. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Trisura’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s adequate operating performance, neutral business profile and appropriate enterprise risk management.
The ratings reflect AM Best’s expectation that Trisura will maintain risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), at a level that is supportive of strong premium growth as the group executes on its business strategy in the Canadian and U.S. markets as a diversified provider of corporate insurance, surety and other risk solutions.
Operating results reflect strong business growth with high double-digit return on equity. Operating results benefit from the diversification in the U.S. and Canadian marketplaces along with fee income from the U.S. fronting business. Additionally, the ratings acknowledge the synergies between the operating subsidiaries of Trisura, including operational integration, shared management and systems, and significance to the overall organization’s earnings and strategy.
Financial leverage at the holding company is expected to remain within AM Best tolerances with additional financial flexibility to raise capital to support future business growth, while maintaining strong interest coverage ratios.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.