Newly-floated workers compensation specialist Trean Insurance Group has reported that its gross written premiums were up 5 percent in the second quarter despite the impact of Covid-19.
Program carrier, MGA and reinsurance intermediary platform Trean raised around $160mn in an initial public offering on the Nasdaq in mid-July.
In its first reported results as a public company, Trean said its increase in gross written premiums to $109.6mn in the second quarter, compared with $104.4mn in the prior period, was primarily attributable to the addition of new program partners brought on board during the quarter.
However, Trean’s combined ratio was affected by the IPO.
An increased expense ratio led to a deterioration in the combined ratio to 95.9 percent from 82.2 percent in the second quarter of 2019.
The Q2 2019 expense ratio was 38.9 percent, compared with 26.5 percent in the prior year period, primarily driven by $1.8mn of additional professional service expenses related to legal, consulting and other IPO and public company readiness efforts, as well as expenses associated with an increased workforce.
Trean’s underwriting income was $0.9mn in the second quarter, down from $4.2mn in the prior period.
“Having recently completed a successful initial public offering in July, our focus remains on executing on our proven 24-year business model to drive future growth,” said Andrew O’Brien, Trean president and CEO.
“The Covid-19 pandemic continues to provide significant uncertainty to many businesses throughout the country, including the insurance industry, but we believe Trean’s operating strategy will continue to demonstrate the stability and effectiveness of our approach.”
Upon completion of reorganisation transactions in connection with the IPO, Trean acquired the remaining 55 percent interest in Compstar Holding Company and now owns 100 percent of Compstar, the parent of a general agent underwriting workers comp coverage for California contractors.
Following the end of the second quarter, Trean also entered into an agreement to acquire 7710 Insurance Company and its associated program manager and agency. The specialist 7710 underwrites workers comp for the fire and emergency services industry.
O’Brian added: “We are confident about the growth opportunities in our largest product line – workers compensation – and in deriving the benefits from our newly added program partners and acquisitions we completed earlier in 2020.”