Enstar Group Limited · OTC:ESGOF
Enstar — Q3 2023 Earnings Presentation
21 slides from Enstar's earnings presentation, Nov 7, 2023
Slide 1: Investor Financial Supplement September 30, 2023
Enstargroup.com Enstargroup.com Realising Value Investor Financial Supplement September 30, 2023 ENSTAR GROUP LIMITED
Slide 2: Table of Contents
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 5 Consolidated Results by Segment 6 Capital Position & Credit Ratings 10 Non-GAAP Measures 11 Reconciliation to Adjusted Book Value per Share 13 Reconciliation to Adjusted Return on Equity 14 Reconciliation to Adjust
Slide 3: Explanatory Notes
| enstargroup.com 3 Explanatory Notes About Enstar Enstar is a NASDAQ-listed leading global (re)insurance group that offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe and Australia. A market leader in complet
Slide 4: Explanatory Notes (continued)
4 Explanatory Notes (continued) Investment Composition In certain instances, U.S. GAAP requires, in part, that invested assets be classified based upon the legal form of the investment which may not correspond to management’s view of the underlying economic exposure. For example: 1. Enstar has certa
Slide 5: Financial Highlights: Key Earnings Metrics
| enstargroup.com 5 Three Months Ended Nine Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Key Earnings Metrics ROE 0.9 % (9.4) % 10.8 % (19.5) % Annualized ROE 14.4 % (26.0) % Adjusted ROE (1) 2.5 % (2.5) % 10.8 % (5.2) % Annualized adjusted ROE (1) 14.4 %
Slide 6: Consolidated Results by Segment - QTD Q3 2023
| enstargroup.com 6 Consolidated Results by Segment - QTD Q3 2023 Three Months Ended September 30, 2023 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 14 $ — $ — $ — $ — $ 14 Net investment income — — 143 — — 143 Net realized losses —
Slide 7: Consolidated Results by Segment - QTD Q3 2022
| enstargroup.com 7 Consolidated Results by Segment - QTD Q3 2022 Three Months Ended September 30, 2022 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 1 $ 2 $ — $ 1 $ — $ 4 Net investment income — — 114 2 — 116 Net realized losses — —
Slide 8: Consolidated Results by Segment - YTD Q3 2023
| enstargroup.com 8 Consolidated Results by Segment - YTD Q3 2023 Nine Months Ended September 30, 2023 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 29 $ — $ — $ — $ — $ 29 Net investment income — — 471 — — 471 Net realized losses — —
Slide 9: Consolidated Results by Segment - YTD Q3 2022
| enstargroup.com 9 Consolidated Results by Segment - YTD Q3 2022 Nine Months Ended September 30, 2022 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 27 $ 17 $ — $ 8 $ — $ 52 Net investment income — — 294 8 — 302 Net realized losses —
Slide 10: Capital Position & Credit Ratings
| enstargroup.com 10 Capital Position & Credit Ratings Credit ratings (1) Standard and Poor’s Fitch Ratings Long-term issuer BBB+ (Outlook: Stable) BBB+ (Outlook: Stable) 2029 Senior Notes BBB+ BBB 2031 Senior Notes BBB BBB 2040 and 2042 Junior Subordinated Notes BBB- BBB- Series D and E Preferred S
Slide 11: Non-GAAP Measures
11 Non-GAAP Measures Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Adjusted book value per ordinary share Total Enstar ordinary shareholders' equity Divided by Number of ordinary shares outstanding, adjusted for: -the ultimate effect of any dilutive securities on the numb
Slide 12: Non-GAAP Measures (continued)
| enstargroup.com 12 Non-GAAP Measures (continued) Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Adjusted run-off liability earnings (%) Adjusted PPD divided by average adjusted net loss reserves. Calculating the RLE as a percentage of our adjusted average net loss reserv
Slide 13: Book Value Per Share
| enstargroup.com 13 Reconciliation to Adjusted Book Value Per Share As of September 30, 2023 December 31, 2022 Equity (1) Ordinary Shares Per Share Amount Equity (1) (2) Ordinary Shares Per Share Amount Book value per ordinary share $ 4,367 15,465,573 $ 282.37 $ 4,464 17,022,420 $ 262.24 Non-GAAP a
Slide 14: Return on Equity - QTD Q3 2023 and 2022
| enstargroup.com 14 Reconciliation to Adjusted Return on Equity - QTD Q3 2023 and 2022 (1) Net (loss) earnings comprises net (loss) earnings attributable to Enstar ordinary shareholders, prior to any non-GAAP adjustments. Opening equity comprises Enstar ordinary shareholders' equity, which is calcu
Slide 15: Return on Equity - YTD Q3 2023 and 2022
| enstargroup.com 15 Reconciliation to Adjusted Return on Equity - YTD Q3 2023 and 2022 1) Net earnings (loss) comprises net earnings (loss) attributable to Enstar ordinary shareholders, prior to any non-GAAP adjustments. Opening equity comprises Enstar ordinary shareholders' equity, which is calcul
Slide 16: Run-off Liability Earnings - QTD Q3 2023 and 2022
| enstargroup.com 16 Reconciliation to Adjusted Run-off Liability Earnings - QTD Q3 2023 and 2022 Three Months Ended As of Three Months Ended September 30, 2023 September 30, 2023 June 30, 2023 September 30, 2023 September 30, 2023 RLE / PPD Net loss reserves Net loss reserves Average net loss reser
Slide 17: Run-off Liability Earnings - YTD Q3 2023 and 2022
| enstargroup.com 17 Reconciliation to Adjusted Run-off Liability Earnings - YTD Q3 2023 and 2022 Nine Months Ended As of Nine Months Ended September 30, 2022 September 30, 2022 December 31, 2021 September 30, 2022 September 30, 2022 RLE / PPD Net loss reserves Net loss reserves Average net loss res
Slide 18: Total Investment Return
| enstargroup.com 18 Reconciliation to Adjusted Total Investment Return Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net investment income $ 143 $ 116 $ 471 $ 302 Net realized (losses) gains (1) (14) (36) (33) (111) Net unrealized gains (losses) (1) 20 (546) 2
Slide 19: Total Investment Return: Realized and Unrealized
| enstargroup.com 19 Reconciliation to Adjusted Total Investment Return Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net realized (losses) gains Fixed maturities, AFS $ (12) $ (23) $ (55) $ (88) Funds held - directly managed — — (7) — Net (losses) recognized o
Slide 20: Investment Composition - Other Investments
| enstargroup.com 20 Investment Composition - September 30, 2023 Other Investments Equities Cash (2) Funds Held September 30, 2023 Hedge Funds Fixed income funds Equity funds Private equity funds CLO equities CLO equity funds Private credit funds Real estate debt fund Other (1) Publicly traded equit
Slide 21: Investment Composition - December 31, 2022
| enstargroup.com 21 Investment Composition - December 31, 2022 Other Investments Equities December 31, 2022 Hedge Funds Fixed income funds Equity funds Private equity funds CLO equities CLO equity funds Private credit funds Real estate debt fund Other(1) Publicly traded equities Exchange- traded fu