Trisura Group Ltd. Financial Supplement As at September 30, 2019 - PowerPoint PPT Presentation

Trisura Group Ltd. Financial Supplement As at September 30, 2019 (Unaudited)

Index Page 1 (Unaudited) 6 - Segmented Underwriting Performance 8 1 - Notes to the Financial Supplement 2-3 – Trisura Guarantee & Trisura Specialty 1.1 Important Notes Specialty P&C – Canada - Corporate Insurance 1.2 Important Definitions 6.1 Specialty P&C – United States 6.2 2 - Financial Highlights 4 7 - Segmented Underwriting Performance 9 2.1 Financial Results - Trisura International & Corporate 2.2 Underwriting Results 2.3 ROE and Book Value 7.1 Reinsurance 7.2 Corporate 2.4 Capitalization 8 - Segmented Highlights 10 3 - Shareholder Information 5 8.1 Gross Premium Written 3.1 Shares Outstanding/Traded 3.2 Common Share Performance 8.2 Book Value 3.3 Ratings 9 - Financial Position 11 9.1 Balance Sheet 4 - Comprehensive Income 6 9.2 Capital Ratios 4.1 Comprehensive Income/(Loss) 10 - Investment Portfolio 12 5 - Segmented Underwriting Performance 7 – Trisura Guarantee 10.1 Total Portfolio Specialty P&C – Canada 10.2 Fixed Income Credit Quality 5.1 Specialty P&C – Canada - Surety 10.3 Fixed Income Maturity Schedule 5.2 Specialty P&C – Canada - Risk Solutions 5.3 11 – Historical Prior Year Claims Development 13 11.1 Historical Prior Year Claims Development

1.1 - Important Notes Page 2 (Unaudited) Important Notes Please note these statements are unaudited. For additional information, please refer to our MD&A and consolidated financial statements. Financial reports are reported under International Financial Reporting Standards (IFRS). We use both IFRS and non-IFRS measures to assess performance. Non-IFRS measures do not have any standardized meanings prescribed by IFRS and are unlikely to be comparable to any similar measures presented by other companies. This Supplement contains “forward - looking information” within the meaning of Canadian provincial securities laws and “forward -lo oking statements” within the meaning of applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Trisura Group Ltd. and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “seeks,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could”. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Trisura Group Ltd. to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; and other risks and factors detailed from time to time in our documents filed with securities regulators in Canada. We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Trisura Group Ltd. undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

1.2 - Important Definitions Page 3 (Unaudited) Term Definition Acquisition Ratio (Specialty - Underwriting expenses including commissions and reinsurance commissions incurred in connection with underwriting activities, during a P&C – United States) specific period and expressed as a percentage of net premiums earned for the same period. Combined Ratio - The sum of the loss ratio and the expense ratio. A combined ratio below 100% indicates a profitable underwriting result. A combined ratio above 100% indicates an unprofitable underwriting result. Cumulative Deferred Fronting - A balance sheet item, grouped with Unearned Reinsurance Commission on the Consolidated Statement of Financial Position. Fees Expense Ratio (Specialty P&C - Underwriting expenses including commissions, reinsurance commissions, premium taxes and operating expenses incurred in connection – Canada) with underwriting activities, net of fee income, during a specific period and expressed as a percentage of net premiums earned for the same period. Expense Ratio (Specialty P&C - Underwriting expenses including commissions, reinsurance commissions and operating expenses incurred in connection with underwriting – United States) activities, during a specific period and expressed as a percentage of net premiums earned for the same period. Fronting Fees Written - Fees charged by Trisura Specialty in a given period, a portion of which may not be recognized as income in a given period. Fronting Fees Earned - Fees charged by Trisura Specialty are recognized as income over the same period as the related insurance contract. Fronting Fees Earned is the component of Fronting Fees Written, which is recognized as income in a given period. Referred to as ‘Fee income’ in t he Management Discussion and Analysis and Financial Statements. Fronting Fees Deferred - The difference between Fronting Fees Written and Fronting Fees Earned. Fronting Operational Ratio - The sum of net claims and net expenses during a specific period and expressed as a percentage of the sum of net premiums earned and (Specialty P&C – United fee income for the same period. States) Claims and loss adjustment expenses, net of reinsurer’s share of claims and loss adjustment expenses, during a specific perio d and Loss Ratio - expressed as a percentage of net premiums earned for the same period Operating Ratio (Specialty - Operating expenses incurred during a specific period and expressed as a percentage of net premiums earned for the same period. P&C – United States) Gross premiums written generated during a specific period, annualized, and divided by Trisura Specialty’s end of period shareholder’s Premiums to Capital (Specialty - P&C – United States) equity. Net income for the 12 month period preceding the reporting date, divided by the average common shareholder’s equity over the same Return on Equity - (Trailing 12 Months) period, adjusted for significant capital transactions, if appropriate. Net income for the quarter or period defined, divided by the average common shareholder’s equity over the same period, adjust ed for Return on Equity - (Last Quarter or Period significant capital transactions, if appropriate. The measure is annualized by multiplying by the appropriate factor. Annualized)