TIG Trean Insurance Group Inc

Trean Insurance Group, Inc. (Nasdaq: TIG) (“Trean” or the “Company”), a leading provider of products and services to the specialty insurance market, today reported results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Highlights

• Gross written premiums increased 37.4% to $134.5 million, compared to $97.9 million in the fourth quarter of 2019
• Loss ratio of 27.4%, a 180 basis point improvement compared to 29.2% in the fourth quarter of 2019
• Expense ratio of 41.4%, compared to 23.8% in the fourth quarter of 2019; expense ratio for the fourth quarter of 2020 included $5.2 million of various accrual true-ups related to profit sharing, ceding commissions and deferred acquisition costs. Excluding the accrual true-ups, the expense ratio would have been 27.2%
• Combined ratio of 68.8%, versus 53.0% in the prior-year period
• Net income was $8.1 million and diluted earnings per share was $0.16
• Adjusted net income(1) was $11.2 million, and adjusted diluted earnings per share was $0.22
• Return on equity of 8.0%; Adjusted return on equity(1) of 11.0%; Adjusted return on tangible equity was 23.4%(1)(1)   Adjusted net income, adjusted return on equity, adjusted return on tangible equity and underwriting income are non-GAAP financial measures. See discussion of “Key Metrics” below.

“Our fourth quarter performance capped off a landmark year for Trean, as we generated record year-over-year quarterly gross written premiums growth and solid profitability,” stated Andrew M. O’Brien, President and Chief Executive Officer of Trean. “Along with excellent contributions from our new program partners, we continued to make very strong progress in growing our non-workers compensation liability business, providing us with further diversification of our premiums and mitigating overall concentration risk. Furthermore, our continued prudent underwriting approach and ability to quickly and fairly resolve claims led us to another solid quarter of loss ratio improvement. We entered 2021 very well positioned with a proven and resilient business model, a robust balance sheet and myriad opportunities to expand workers compensation and other insurance lines. We expect to capitalize on our advantages this year as we accelerate investments to ensure future growth. These efforts will provide our program partners with significant support and enable us to generate sustainable and profitable long-term growth.”

Full Year 2020 Highlights

• Gross written premiums increased 17.7% to $484.2 million, compared to $411.4 million in 2019
• Loss ratio of 46.8%, a 480 basis point improvement compared to 51.6% in 2019
• Expense ratio of 35.6%, compared to 24.2% in 2019
• Combined ratio of 82.4%, versus 75.8% in the prior-year period
• Net income was $90.8 million; adjusted net income(1) was $32.8 million
• Return on equity of 32.9%; Adjusted return on equity(1) of 11.9%; Adjusted return on tangible equity(1) was 19.7%(1) Adjusted net income, adjusted return on equity, adjusted return on tangible equity and underwriting income are non-GAAP financial measures. See discussion of “Key Metrics” below.

Underwriting Results

Gross written premiums increased 37.4% to $134.5 million for the fourth quarter of 2020, compared to $97.9 million for the fourth quarter of 2019, primarily attributable to the addition of new program partners brought on board throughout 2020, growth in Trean’s existing program partner business and the acquisition of 7710 Insurance Company in the fourth quarter of 2020. Net earned premiums of $36.8 million grew 72.5% compared to the prior year’s fourth quarter, driven by the increase in gross written and gross earned premiums, partially offset by an increase in ceded earned premiums compared to the prior-year period.

Underwriting income(1) was $11.4 million, resulting in a combined ratio of 68.8% for the fourth quarter of 2020, compared to underwriting income of $10.0 million and a combined ratio of 53.0% for the prior-year period. Losses and loss adjustment expenses for the fourth quarter of 2020 were $10.1 million, which resulted in a 27.4% loss ratio, a 180 basis point improvement compared to 29.2% in the prior-year period. The improvement in the loss ratio during the fourth quarter was primarily attributable to an increase in favorable loss reserve estimate true-ups made during the fourth quarter of 2020 versus the fourth quarter of 2019.

General and administrative expenses were $15.2 million for the fourth quarter of 2020, compared to $5.1 million for the prior-year period. The Company’s expense ratio was 41.4% for the fourth quarter of 2020, compared to 23.8% for the prior-year period, primarily attributable to $5.2 million of various accrual true-ups related to profit sharing, ceding commissions and deferred acquisition costs, as well as a rise in net agent commissions resulting from the Company’s increased retention, higher salaries and benefits resulting primarily from acquisitions made in 2020 and an expanded workforce, and an increase in insurance and professional service expenses.

The fourth quarters of 2020 and 2019 included certain non-recurring legal and other expenses, intangible asset amortization related to acquisitions and noncash stock compensation. Adjusted net income(1), which excludes those items and their related tax impact, for the fourth quarter of 2020 was $11.2 million, compared to adjusted net income of $11.4 million for the prior-year period. Adjusted diluted earnings per share for the fourth quarter of 2020 were $0.22.

Investment Results

Net investment income was $1.7 million for the fourth quarter of 2020, comparable with the prior-year period. Cash and invested assets consist primarily of fixed maturities, equity securities and cash equivalents. The majority of the Company’s investment portfolio at December 31, 2020 was comprised of fixed maturity securities that were classified as available-for-sale of $405.6 million. Also included in investments at December 31, 2020 were $3.8 million of equity securities and $153.1 million of cash and cash equivalents. The Company’s fixed maturities portfolio had an average rating of “AA” at both December 31, 2020 and December 31, 2019.

Other

Other revenue was $0.8 million for the fourth quarter of 2020, compared to $1.1 million for the prior-year period, largely driven by reduced brokerage fees earned due to the changes in estimated premiums on reinsurance contracts.

Stockholders’ Equity and Returns

Total stockholders’ equity was $410.1 million at December 31, 2020, compared to $141.6 million at December 31, 2019. Return on equity was 8.0% for the fourth quarter of 2020, compared to 31.2% for the prior-year period, and adjusted return on equity(1) was 11.0% for the fourth quarter of 2020, compared to 33.5% for the prior-year period. The change in return on equity reflected a significant increase in the Company’s stockholders’ equity, primarily resulting from the increases in additional paid-in capital related to the IPO and retained earnings since December 2019. Return on tangible equity was 16.9% for the fourth quarter of 2020, compared to 31.9% for the prior-year period and adjusted return on tangible equity was 23.4% for the fourth quarter of 2020, compared to 34.3% for the prior-year period.

Webcast and Conference Call

A webcast and conference call to discuss the Company’s results will be held today beginning at 5:00 p.m. (Eastern Time). The audio webcast is accessible through the investor relations section of the Company’s website at https://investors.trean.com.

The dial-in number for the conference call is (877) 407-3982 (toll-free) or (201) 493-6780 (international), conference ID# 13715046. Any person interested in listening to the call should dial in or access the website at least 10 minutes before the call.

A replay of the call will be available at https://investors.trean.com for one year following the call.

Key Metrics

The Company discusses certain key financial and operating metrics, described below, which provide useful information about its business and the operational factors underlying its financial performance.

Underwriting income is a non-GAAP financial measure defined as income before taxes excluding net investment income, investment revaluation gains, net realized capital gains or losses, IPO-related expenses, intangible asset amortization, noncash stock compensation, interest expense, other revenue and other income and expenses. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of underwriting income to income before taxes in accordance with GAAP.

Adjusted net income is a non-GAAP financial measure defined as net income excluding the impact of various unusual events, including the consummation of the reorganization transactions in connection with our IPO, noncash intangible asset amortization and stock compensation, other expenses and gains or losses that the Company does not believe reflect its core operating performance, which items may have a disproportionate effect in a given period, affecting comparability of the Company’s results. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of adjusted net income to net income in accordance with GAAP.

Loss ratio, expressed as a percentage, is the ratio of losses and loss adjustment expenses to net earned premiums.

Expense ratio, expressed as a percentage, is the ratio of general and administrative expenses to net earned premiums.

Combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Return on equity is net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period.

Adjusted return on equity is a non-GAAP financial measured defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of adjusted return on equity to return on equity in accordance with GAAP.

Tangible stockholders’ equity is defined as stockholders’ equity less goodwill and other intangible assets.

Return on tangible equity is a non-GAAP financial measure defined as net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period.

Adjusted return on tangible equity is a non-GAAP financial measure defined as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of adjusted return on tangible equity to return on equity in accordance with GAAP.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not historical or current facts. These statements may discuss the Company’s net income, cash flow, financial condition, impairments, expenditures, growth, strategies, plans, achievements, capital structure, organizational structure, market opportunities and general market and industry conditions. Such forward-looking statements can be identified by words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project,” “believe,” “seek,” “outlook,” “future,” “will,” “would,” “should,” “could,” “may,” “can have,” “likely” and similar terms. Forward-looking statements are based on management’s current expectations and assumptions about future events. These statements are only predictions and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements if the underlying assumptions prove to be incorrect or as a result of risks, uncertainties, and other factors, including the impact of the COVID-19 pandemic on the business and operations of the Company, our program partners and other business relations. Other factors that may cause such differences include the risks described in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. These forward-looking statements speak only as of the date on which they are made. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, changes in assumptions or otherwise. Investors are cautioned not to place undue reliance on the forward-looking statements contained in this press release or in other filings and public statements of the Company.

About Trean Insurance Group, Inc.

Trean Insurance Group, Inc. (Nasdaq: TIG) provides products and services to the specialty insurance market. Trean underwrites specialty casualty insurance products both through its program partners and its own managing general agencies. Trean also provides its program partners with a variety of services including issuing carrier services, claims administration and reinsurance brokerage. Trean is licensed to write business across 49 states and the District of Columbia. For more information, please visit www.trean.com.

Contacts

Investor Relationsinvestor.relations@trean.com(952) 974-2260

Trean Insurance Group, Inc. and SubsidiariesConsolidated and Combined Statements of Operations(in thousands, except for percentages)

	Three Months Ended December 31,											Percentage			Year Ended December 31,											Percentage
		2020				2019			Change			Change (1)				2020				2019			Change			Change (1)
Revenues
Gross written premiums	$	134,494			$	97,913			36,581			37.4	%		$	484,249			$	411,401			72,848			17.7	%
Increase in gross unearned premiums		(12,614	)			4,501			(17,115	)		NM				(52,215	)			(13,598	)		(38,617	)		NM
Gross earned premiums		121,880				102,414			19,466			19.0	%			432,034				397,803			34,231			8.6	%
Ceded earned premiums		(85,107	)			(81,098	)		(4,009	)		4.9	%			(323,567	)			(311,325	)		(12,242	)		3.9	%
Net earned premiums		36,773				21,316			15,457			72.5	%			108,467				86,478			21,989			25.4	%
Net investment income		1,671				1,667			4			0.2	%			8,324				6,245			2,079			33.3	%
Gain on revaluation of Compstar		-				-			-			NM				69,846				-			69,846			NM
Net realized capital gains (losses)		20				(22	)		42			(190.9	)%			3,365				667			2,698			NM
Other revenue		781				1,076			(295	)		(27.4	)%			12,104				9,125			2,979			32.6	%
Total revenue		39,245				24,037			15,208			63.3	%			202,106				102,515			99,591			97.1	%
Expenses
Losses and loss adjustment expenses		10,093				6,215			3,878			62.4	%			50,774				44,661			6,113			13.7	%
General and administrative expenses		15,231				5,065			10,166			NM				38,668				20,959			17,709			84.5	%
Other expenses		2,373				-			2,373			NM				13,427				-			13,427			NM
Intangible asset amortization		1,419				11			1,408			NM				2,573				46			2,527			NM
Noncash stock compensation		199				-			199			NM				506				-			506			NM
Interest expense		440				486			(46	)		(9.5	)%			1,922				2,169			(247	)		(11.4	)%
Total expenses		29,755				11,777			17,978			152.7	%			107,870				67,835			40,035			59.0	%
Other income		762				3			759			NM				1,025				121			904			NM
Income before taxes		10,252				12,263			(2,011	)		(16.4	)%			95,261				34,801			60,460			173.7	%
Provision for income taxes		2,146				2,670			(524	)		(19.6	)%			6,825				7,074			(249	)		(3.5	)%
Equity earnings in affiliates, net of tax		-				1,064			(1,064	)		(100.0	)%			2,333				3,558			(1,225	)		(34.4	)%
Net income	$	8,106			$	10,657			(2,551	)		(23.9	)%		$	90,769			$	31,285			59,484			190.1	%
Earnings per share:
Basic	$	0.16			$	0.29									$	2.08			$	0.84
Diluted	$	0.16			$	0.29									$	2.07			$	0.84
Weighted average
shares outstanding:
Basic		51,148,782				37,386,394										43,744,003				37,386,394
Diluted		51,150,187				37,386,394										43,744,744				37,386,394
(1) The Company defines increases or decreases greater than 200% as"NM" or not meaningful.

 

Key Metrics

	Three Months Ended December 31,								Year Ended December 31,
(in thousands, except percentages)		2020				2019				2020				2019
Key metrics:
Underwriting income (1)	$	11,449			$	10,036			$	19,025			$	20,858
Adjusted net income (1)	$	11,179			$	11,435			$	32,779			$	33,231
Loss ratio		27.4%				29.2%				46.8%				51.6%
Expense ratio		41.4%				23.8%				35.6%				24.2%
Combined ratio		68.8%				53.0%				82.4%				75.8%
Return on equity		8.0%				31.2%				32.9%				25.5%
Adjusted return on equity (1)		11.0%				33.5%				11.9%				27.0%
Return on tangible equity (1)		16.9%				31.9%				54.6%				26.1%
Adjusted return on tangible equity (1)		23.4%				34.3%				19.7%				27.7%
(1) Adjusted net income, adjusted return on equity, return on tangible equity, adjusted return on tangible equity and underwriting income are
non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation to the applicable GAAP measure.

 

Trean Insurance Group, Inc. and SubsidiariesConsolidated and Combined Balance Sheets(in thousands) 

	December 31, 2020			December 31, 2019
Assets
Fixed maturities, available for sale	$	405,604		$	337,865
Preferred stock, available for sale		240			343
Common stock, available for sale		3,534			492
Equity method investments		232			12,173
Total investments		409,610			350,873
Cash and cash equivalents		153,149			74,268
Restricted cash		4,085			1,800
Accrued investment income		2,458			2,468
Premiums and other receivables		109,217			62,460
Income taxes receivable		1,322		-
Related party receivables		-			22,221
Reinsurance recoverable		343,213			307,338
Prepaid reinsurance premiums		107,971			80,088
Deferred policy acquisition cost, net		1,332			2,115
Property and equipment, net		8,254			7,937
Right of use asset		6,338			-
Deferred tax asset		-			1,367
Goodwill		140,640			2,822
Intangible assets, net		75,316		-
Other assets		6,878			3,277
Total assets	$	1,369,783		$	919,034
Liabilities
Unpaid loss and loss adjustment expenses	$	457,817		$	406,716
Unearned premiums		157,987			103,789
Funds held under reinsurance agreements		174,704			163,445
Reinsurance premiums payable		57,069			53,620
Accounts payable and accrued expenses		61,240			14,995
Lease liability		6,893			-
Income taxes payable		-			714
Deferred tax liability		12,329			-
Long-term debt		31,637			29,040
Total liabilities		959,676			772,319
Redeemable preferred stock		-			5,100
Stockholders' Equity
Common stock		511			-
Members' equity		-			78,438
Additional paid-in capital		287,110			17,995
Retained earnings		112,959			40,361
Accumulated other comprehensive loss		9,527			4,821
Total stockholders' equity		410,107			141,615
Total liabilities and stockholders' equity	$	1,369,783		$	919,034

 

Reconciliation of Non-GAAP Financial Measures

Underwriting income

The Company defines underwriting income as income before taxes excluding net investment income, investment revaluation gains, net realized capital gains or losses, IPO-related expenses, intangible asset amortization, noncash stock compensation, interest expense, other revenue and other income and expenses. Underwriting income represents the pre-tax profitability of the Company’s underwriting operations and allows management to evaluate the Company’s underwriting performance without regard to investment income, IPO-related expenses, intangible asset amortization, noncash stock compensation, interest expense, other revenue and other income and expenses. The Company uses this metric because the Company believes it gives management and other users of the Company’s financial information useful insight into the Company’s underwriting business performance by adjusting for these expenses and sources of income. Underwriting income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define underwriting income differently. 

	Three Months Ended December 31,								Percentage		Year Ended December 31,								Percentage
(in thousands, except percentages)		2020				2019			Change (1)			2020				2019			Change (1)
Net income	$	8,106			$	10,657			(23.9)%		$	90,769			$	31,285			190.1%
Income tax expense		2,146				2,670			(19.6)%			6,825				7,074			(3.5)%
Equity earnings in affiliates, net of tax		-				(1,064	)		(100.0)%			(2,333	)			(3,558	)		(34.4)%
Income before taxes		10,252				12,263			(16.4)%			95,261				34,801			173.7%
Other revenue		(781	)			(1,076	)		(27.4)%			(12,104	)			(9,125	)		32.6%
Net investment income		(1,671	)			(1,667	)		0.2%			(8,324	)			(6,245	)		33.3%
Gain on revaluation of Compstar		-				-			NM			(69,846	)			-			NM
Net realized capital gains (losses)		(20	)			22			(190.9)%			(3,365	)			(667	)		NM
Interest expense		440				486			(9.5)%			1,922				2,169			(11.4)%
Other expenses		2,373				-			NM			13,427				-			NM
Intangible asset amortization		1,419				11			NM			2,573				46			NM
Noncash stock compensation		199				-			NM			506				-			NM
Other income		(762	)			(3	)		NM			(1,025	)			(121	)		NM
Underwriting income	$	11,449			$	10,036			14.1%		$	19,025			$	20,858			(8.8)%
(1) The Company defines increases or decreases greater than 200% as"NM" or not meaningful.

 

Adjusted net income

The Company defines adjusted net income as net income excluding the impact of certain items, including the consummation of the reorganization transactions in connection with the IPO, noncash intangible asset amortization and stock compensation, other expenses and gains or losses that the Company believes do not reflect its core operating performance, which items may have a disproportionate effect in a given period, affecting comparability the Company’s results across periods. The Company calculates the tax impact only on adjustments that would be included in calculating the Company’s income tax expense using the effective tax rate at the end of each period. The Company uses adjusted net income as an internal performance measure in the management of its operations because the Company believes it gives its management and other users of its financial information useful insight into the Company’s results of operations and underlying business performance by eliminating the effects of these items. Adjusted net income should not be viewed as a substitute for net income calculated in accordance with GAAP, and other companies may define adjusted net income differently.

	Three Months Ended December 31,								Percentage
(in thousands, except percentages)		2020				2019			Change (1)
Net income	$	8,106			$	10,657			(23.9)%
Intangible asset amortization		1,419				11			NM
Noncash stock compensation		199				-			NM
Expenses associated with Altaris management fee, including cash bonuses paid to unitholders		-				442			(100.0)%
Expenses associated with IPO and other one-time legal and consulting expenses		-				463			(100.0)%
Expenses related to debt issuance costs		-				26			(100.0)%
FMV adjustment of remaining investment in subsidiary		-				34			(100.0)%
Other expenses		2,373				-			NM
Total adjustments		3,991				976			NM
Tax impact of adjustments		(918	)			(198	)		NM
Adjusted net income	$	11,179			$	11,435			(2.2)%
	Year Ended December 31,								Percentage
(in thousands, except percentages)		2020				2019			Change (1)
Net income	$	90,769			$	31,285			190.1%
Intangible asset amortization		2,573				46			NM
Noncash stock compensation		506				-			NM
Expenses associated with Altaris management fee, including cash bonuses paid to unitholders		883				1,765			(50.0)%
Expenses associated with IPO and other one-time legal and consulting expenses		1,845				1,292			42.8%
Expenses related to debt issuance costs		135				101			33.7%
FMV adjustment of remaining investment in subsidiary		(71,846	)			-			NM
Net gain on purchase & disposal of subsidiaries		(3,115	)			(600	)		NM
Other expenses		13,427				-			NM
Total adjustments		(55,592	)			2,604			NM
Tax impact of adjustments		(2,398	)			(658	)		NM
Adjusted net income	$	32,779			$	33,231			(1.4)%
(1) The Company defines increases or decreases greater than 200% as"NM" or not meaningful.

 

Adjusted return on equity

The Company defines adjusted return on equity as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending stockholders’ equity during the period. The Company uses adjusted return on equity as an internal performance measure in the management of its operations because the Company believes it gives management and other users of the Company’s financial information useful insight into the Company’s results of operations and underlying business performance by adjusting for items that the Company believes do not reflect its core operating performance and that may diminish comparability across periods. Adjusted return on equity should not be viewed as a substitute for return on equity calculated in accordance with GAAP, and other companies may define adjusted return on equity differently.

	Three Months Ended December 31,								Year Ended December 31,
(in thousands, except percentages)		2020				2019				2020				2019
Adjusted return on equity calculation:
Numerator: adjusted net income	$	11,179			$	11,435			$	32,779			$	33,231
Denominator: average stockholders' equity		405,930				136,430				275,861				122,873
Adjusted return on equity		11.0%				33.5%				11.9%				27.0%
Return on equity		8.0%				31.2%				32.9%				25.5%

 

Return on tangible equity and adjusted return on tangible equity

The Company defines tangible stockholders’ equity as stockholders’ equity less goodwill and other intangible assets. The Company defines return on tangible equity as net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period. The Company defines adjusted return on tangible equity as adjusted net income expressed on an annualized basis as a percentage of average beginning and ending tangible stockholders’ equity during the period. The Company regularly evaluates acquisition opportunities and have historically made acquisitions that affect stockholders’ equity. The Company uses return on tangible equity and adjusted return on tangible equity as internal performance measures in the management of the Company’s operations because the Company believes they give management and other users of its financial information useful insight into the Company’s results of operations and underlying business performance by adjusting for the effects of acquisitions on the Company’s stockholders’ equity and, in the case of adjusted return on tangible equity, by adjusting for items that the Company believes do not reflect its core operating performance and that may diminish comparability across periods.   Return on tangible equity and adjusted return on tangible equity should not be viewed as substitutes for return on equity calculated in accordance with GAAP, and other companies may define return on tangible equity and adjusted return on tangible equity differently.

	Three Months Ended December 31,								Year Ended December 31,
(in thousands, except percentages)		2020				2019				2020				2019
Return on tangible equity calculation:
Numerator: net income	$	8,106			$	10,657			$	90,769			$	31,285
Denominator:
Average stockholders' equity		405,930				136,430				275,861				122,873
Less: Average goodwill and other intangible assets		214,484				2,982				109,466				2,999
Average tangible stockholders' equity		191,446				133,448				166,395				119,874
Return on tangible equity		16.9%				31.9%				54.6%				26.1%
Return on equity		8.0%				31.2%				32.9%				25.5%
	Three Months Ended December 31,								Year Ended December 31,
(in thousands, except percentages)		2020				2019				2020				2019
Adjusted return on tangible equity calculation:
Numerator: adjusted net income	$	11,179			$	11,435			$	32,779			$	33,231
Denominator: average tangible stockholders' equity		191,446				133,448				166,395				119,874
Adjusted return on tangible equity		23.4%				34.3%				19.7%				27.7%
Return on equity		8.0%				31.2%				32.9%				25.5%