TSU will be reporting its Q2 2023 results on August 10th, but the company pre-released strong operating earnings per share of $0.53 to $0.56, and operating ROE greater than 19%. Its ~7% operating EPS beat and ~18% year-over-year growth demonstrates underlying growth, which is quite positive, however, these positives are more than offset by a larger than expected one-time cost tied to the US program run-off. So far, the market's reaction is slightly negative to this development, and it reflects the overhanging negative sentiment that this run-off has brought. The pre-release was likely to signal the one-time costs would be larger than initially expected for US program in run-off. We continue to like the company, as its fundamentals are strong, however, there is a lot of negative sentiment hanging over the name due to this US program run-off, and for the time being we consider it to be a hold.
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