Q: Hello,
Is it just me or is Trisura starting to have better price momentum? If the economy turns down in the second half, how much of an impact would it have on TSU’s incredible growth rate that they’ve had or are they largely immune?
Is it just me or is Trisura starting to have better price momentum? If the economy turns down in the second half, how much of an impact would it have on TSU’s incredible growth rate that they’ve had or are they largely immune?
5i Research Answer:
A few uncertainties were resolved in TSU's recent earnings results, and this has created a level of support for the name.
TSU operates in the specialty insurance business, and the insurance industry in general is known to be fairly recession-resistant. Specialty insurance is more niche than the more standard property & casualty insurance industry, and TSU provides specialized insurance to commercial businesses. While a recession may slowdown the rate of new businesses opening up, largely these businesses will continue to need insurance products. A recession could bring slower growth for the name, but as a long-term position, we would be comfortable with TSU today given its strong fundamentals.