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AM Best Revises Outlooks to Negative for Trisura Group Ltd. Members
[March 17, 2023]

AM Best Revises Outlooks to Negative for Trisura Group Ltd. Members

AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings 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 Credit Ratings (ratings) reflect Trisura's overall balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The negative outlooks reflect required improvements in Trisura's operational risk management processes around management of captives within its U.S. operations. While Trisura is actively addressing these issues from a policy, organizational and corporate governance perspective, AM Best notes that the effectiveness of these actions will require time to evaluate.

The revision of the outlooks to negative from stable follows a CAD 81.5 million one-time write-down of reinsurance recoverables in the fourth quarter of 2022, which substantially offset consolidated net income, though the company maintained a profitable year. This write-down originated from a reinsurance recoverable related to a fronting program for a captive reinsurance program on U.S. property/casualty risks. The write-down was necessitated by lack of sufficient collateral to support the recoverableas higher catastrophe reinsurance costs required by Trisura to manage catastrophe risk had the effect of depleting the program's collateral. Subsequent to the write-down, the program has been put into accelerated runoff and the company is continuing the implementation of enhanced policies, procedures and organizational changes to the group's corporate governance practices.

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. For more information, visit

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