Trisura Specialty jumps to A- VIII financial size
US hybrid program fronting insurer Trisura Specialty has had its A- rating affirmed and its financial size category upped to VIII by AM Best after its Canadian parent injected additional capital following a recent fundraise.
A category VIII financial size is the bracket for carriers with adjusted policyholders surplus in the $100mn to $250mn range.
As previously revealed by The Insurer, Trisura Specialty has been looking to access potential business from the wholesale broking giants of AmWINS, RT Specialty and CRC after the capital boost earlier this year.
In May Trisura Group raised an additional $50mn in Canada, around half of which was put into the surplus of its US specialty platform in a move that was expected to result in the A- VIII designation from AM Best.
The classification is typically the minimum the larger wholesalers will accept when placing E&S business.
AM Best affirmed the A- financial strength and “a-” long-term issuer credit ratings of Trisura Specialty Insurance Company and Trisura Insurance Company (TIC) with a stable outlook.
Trisura Specialty and TIC – the non-admitted and admitted platforms for the fronting specialist – are both domiciled in Oklahoma City, Oklahoma.
Collectively referred to as Trisura US by AM Best, the carrier subsidiaries’ ratings reflect their balance sheet strength, adequate operating performance, limited business profile and appropriate ERM.
“Trisura US has continued to perform in line with management’s expectations, and AM Best expects greater diversification with the recent inclusion of TIC as the company continues to scale operations,” the ratings agency continued.
Added admitted capabilities
Trisura Specialty started out less than two years ago as an E&S-only platform and is licensed to write in all states on a surplus lines basis.
That gave it the ability to build momentum relatively quickly as it grew a portfolio that now stands at 30+ programs.
In February this year it secured an A- rating for its recently acquired admitted platform, which initially had 13 admitted state licenses but had already increased that to around 30 by the summer.
Over time Trisura Specialty expects to build a portfolio that is around 60 percent admitted and 40 percent E&S – although given the current E&S hard market conditions the carrier is set to continue to grow in that segment.
Typically, on programs where it takes a risk position Trisura Specialty will target between a 5 and 10 percent retention.
Its sweet spot is in the $5mn to $15mn premium program space, but with the increased capital, a hardening market, and the admitted platform the carrier will consider larger programs.