Q: I would appreciate your insight concerning the recent drop in Trisura’s share price. Thank you!
5i Research Answer:
A company named Vesttoo that did business with a few reinsurers, including TSU, has gotten into some problems where they found allegedly fraudulent transactions on their system is what appears to be weighing on the shares. TSU has already written down some of this exposure ($81.5 mln) in a recent quarter, so the news is not totally new and it looks like TSU has taken steps to deal with the issue already and has been known for some time. Regardless, it may act as a bit of a weight on the shares until more clarity/confidence is provided in the upcoming earnings report (Aug. 2).