Trisura : Investor Presentation – Trisura – A Growing and Profitable Specialty Insurer

A Growing and Profitable Specialty Insurer

July 2023

A Growing Specialty Insurer

• Canadian specialty lines franchise operating for 17 years

Diversified	• US hybrid fronting platform participating in the admitted and non-admitted ('E&S') markets for 5 years
Specialty Platform
• Earnings supported by an attractive mix of underwriting income and recurring fee-based and investment income
	• Conservative Debt-to-capital1 below our internal target (20%) and capital in excess of regulatory requirements in subsidiaries
Strong Balance Sheet	• Issuer rating of BBB (DBRS); Financial Strength ratings of A (low) (DBRS) and A- (AM Best) at operating subsidiaries
• 21% consolidated LTM Q1/23 Operating ROE2 (ROE: 4%); 5-year average 85% combined ratio2, 3 in Canada and 28% Q1/23
and Profitability
ROE; increasing profitability from US subsidiary reaching a 13% Q1/23 Adj. ROE4 (ROE: -16%)
	• Conservative approach to reserving; consistent history of favourable prior year claims development
	• 5-year GPW CAGR of 75%3 (38%3, 5 in Canada, 86%3, 5 in US)
Growth	• Growth supported by expanding distribution relationships in existing lines of business and growth of our hybrid fronting
Opportunities	model in Canada and US
	• Proven access to capital (raised $276 million in equity & $75 million in debt) and reinsurance relationships to support growth
	• High quality investment portfolio comprised primarily of cash (31%), government bonds (7%), and corporate fixed income
	(45%)
Conservative Risk	• Conservative underwriting culture; limited retention in US and 5-year average loss ratio of 22%2, 3 in Canada
Management	• Disciplined reinsurance strategy; deep relationships with high-quality counterparties - 83% of reinsurance recoverable6
	are with rated reinsurers, the remaining 17% from unrated reinsurers with appropriate collateral
	• Strong enterprise risk management infrastructure in place
Experienced	• Management team with a diversity of skills, and strong relationships with regulators and distribution partners; senior
Management	management directly owns ~6% of shares outstanding
& Board of Directors	• Board of Directors comprised of seasoned executives with strong experience across financial services

Pure-Play Specialty Insurer Targeting Mid-Teens ROEs and Growth in Book Value

Note: All figures in C$ million unless otherwise stated. 1 This is a supplementary financial measure. Refer to Q1 2023 MD&A, Section 10 for details. To access MD&A,
see Trisura's website or SEDAR at www.sedar.com. 2 This is a non-IFRS financial ratio. Refer to Q1 2023 MD&A, Section 10 for details. 3 As of December 31st, 2022.	1
4 Adjusted figures exclude impact of Write Down on Reinsurance Recoverable in Q4 2022 and the run-off program. 5 5-year CAGR in Canada, 3-year CAGR in US.

6 This is a non-IFRS financial measure, which reflect balances previously referred to as Recoverable from Reinsurers, prior to the adoption of IFRS 17, and are now part of the balance Reinsurance Contract Assets on the balance sheet.

Company Overview

• Trisura Group Ltd. (TSX: TSU) is a specialty insurer operating in the surety, risk solutions, corporate insurance and fronting market segments
• Trisura operates in niche markets, relying on specialized underwriting knowledge and structuring expertise to offer commercial products and services not provided by most insurers
• Components of Trisura were founded and incubated within Brookfield Asset Management; Canadian specialty insurance in 2006 and US fronting in 2017 prior to spin-out

Canada

• 17-yearoperating history in surety, risk solutions and corporate insurance segments; strong track record of profitable underwriting
• LTM Q1/23 GPW1: $769 million
• LTM Q1/23 Net Income: $57 million, 28% ROE
• DBRS Rating: A (Low)
• A.M. Best Rating: A- (Excellent) Size 9

Key Performance Metrics

US

• Hybrid fronting business that works with distribution partners and cedes majority of risk to reinsurance markets
• LTM Q1/23 GPW1: $1.8 billion
• LTM Q1/23 Adj. Net Income2: $38 million (Net Income: -38 million), 13%
  Adj. ROE2 (ROE: -16%)
• DBRS Rating: A (Low)
• A.M. Best Rating: A- (Excellent) Size 9

$93 million Operating

$1.7 billion3

Market Cap

$512 million

Q1/23

Book Value

$2.6 billion

LTM Q1/23 GPW1

Net Income1

(Net Income: $18 million)

21%

Operating ROE

(ROE: 4%)

12.8%

Q1/23

Debt-to-Capital

+89% Since

Year-end 2020

+44% Y/Y

+51% Y/Y

+44% Y/Y

+2pts Y/Y

-4pts Y/Y

Established Canadian Specialty Platform and Growing US Fronting Business

Note: All figures in C$ million unless otherwise stated.
1	This is a non-IFRS financial measure. Refer to Q1 2023 MD&A, Section 10 for details. To access MD&A, see Trisura's website or SEDAR at www.sedar.com.	2
2	Adjusted figures exclude impact of Write Down on Reinsurance Recoverable in Q4 2022. and run-off program.

3 As at June 30th, 2023.

Key Achievements

Share Price Performance1 and GPW Growth ($ millions)

Trisura		TSX Financials		S&P/TSX		Consolidated LTM GPW

$2,612 / +1,608%

483%

$153	24%
16%

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Key Achievements

2017: Completed spin-off from Brookfield; US platform secured licenses and rating

2018: Internalized investment function across subsidiaries; US began writing premium

• 2019: Completed inaugural equity raise and closed acquisition of admitted market capabilities
• 2020: Completed $68 million equity raise, increased capacity on revolving credit facility to $50 million and launched US surety
• 2021: Launched Canadian fronting, completed $75 million notes offering and executed a four-for-one common share split

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2022: Advanced various ESG initiatives, completed $150 million equity raise and closed acquisition of Sovereign's surety business

2023: Launched US corporate insurance

Note: All figures in C$ million unless otherwise stated.	3
1	Cumulative share price performance measured from close of business December 31st, 2017.
2	'Current' as at June 30th, 2023.

Strategic Priorities

	• Diversify earnings and demonstrate stable returns (underwriting with recurring fee and investment income)
	• Demonstrate the value of specialty focus in primary lines through loss ratio outperformance
Profitability	• Drive stable fronting fees through diversified program book and prudent counterparty credit risk management
	• Optimize risk-adjusted yield, improve diversification and maintain liquidity while enhancing investment income
	• Leverage fixed cost base and technology to gain scale, demonstrating sustainable mid-teens ROE
	• Expand North American insurance market share through enhanced distribution and capacity relationships
Growth	• Expand proven platforms and expertise to new geographies (US Surety and US Corporate Insurance) and supplement
established practices in local markets
	• Evaluate strategic partnerships and inorganic opportunities
	• Maintain appropriate regulatory capital; improve ratings and size category
Risk & Capital	• Uphold risk management best-practices across the platform
Management
	• Optimize retention and capital allocation
	• Develop track record of execution and expand shareholder base
Capital Markets
	• Enhance capital markets access through investor, banking, rating agency and other stakeholder communications

Centralized Corporate Function Providing Support for Operating Subsidiaries to Grow Profitably

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