DBRS Morningstar Finalizes Provisional Rating of BBB, Stable, on Trisura Group Ltd.’s Senior Unsecured Notes

DBRS Limited (DBRS Morningstar) finalized its provisional rating of BBB with a Stable trend on Trisura Group Ltd.’s (Trisura or the Company) Senior Unsecured Notes due 2026 (the Senior Unsecured Notes). The rating is consistent with DBRS Morningstar’s notching approach for debt instruments issued by insurance companies.

Trisura expects to issue $75 million of Senior Unsecured Notes on June 11, 2021, with a maturity date of June 11, 2026. The Senior Unsecured Notes will bear interest at the rate of 2.641% per annum.

RATING DRIVERS
The rating of the Senior Unsecured Notes is aligned with the Issuer Rating of the Company. DBRS Morningstar would upgrade the ratings if there is a sustained material improvement in market positioning and overall profitability while maintaining strong regulatory capital ratios. An improvement in the risk profile of the investment portfolio would also be viewed positively for the ratings.

Conversely, the ratings would be downgraded if there is a sustained deterioration in overall profitability, capitalization, or market positioning.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

The Grid Summary Grades for Trisura are as follows: Franchise Strength – Moderate; Risk Profile – Good/Moderate; Earnings Ability – Good; Liquidity – Good/Moderate; Capitalization – Strong/Good.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The principal methodology is the Global Methodology for Rating Life and P&C Insurance Companies and Insurance Organizations (July 21, 2020; https://www.dbrsmorningstar.com/research/364260). Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021, https://www.dbrsmorningstar.com/research/373262).

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found on the issuer page at www.dbrsmorningstar.com.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar’s outlooks and ratings are under regular surveillance.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com.

DBRS Limited
DBRS Tower, 181 University Avenue, Suite 700
Toronto, ON M5H 3M7 Canada
Tel. +1 416 593-5577