AM Best has affirmed the financial strength rating of Trisura Group Ltd as A- (Excellent) long-term issuer credit rated as “a-” (Excellent). Trisura entities include Trisura Specialty Insurance Company, Trisura Insurance Company, Bricktown Specialty Insurance Company and Trisura Guarantee Insurance Company. TSIC, TIC and BSIC are domiciled in Oklahoma, while TGIC is domiciled in Toronto, Canada. The 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 and management of captives within its US operations. While Trisura is actively addressing these issues from a policy, organisational and corporate governance perspective, AM Best notes that the effectiveness of these actions will require time to evaluate. The revision of the outlook 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 programme for a captive reinsurance programme on US property and casualty risks.
