Enstar Group Limited · OTC:ESGOF
Enstar — Q2 2022 Earnings Presentation
18 slides from Enstar's earnings presentation, Aug 9, 2022
Slide 1: Investor Financial Supplement June 30, 2022
enstargroup.com ENSTAR GROUP LIMITED Investor Financial Supplement June 30, 2022
Slide 2: Table of Contents
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 4 Consolidated Results by Segment 5 Capital Position & Credit Ratings 9 Non-GAAP Measures 10 Reconciliation to Adjusted Book Value per Share 12 Reconciliation to Adjusted Return on Equity 13 Reconciliation to Adjuste
Slide 3: Explanatory Notes
| enstargroup.com 3 Explanatory Notes About Enstar Enstar is a NASDAQ-listed leading global (re)insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other internat
Slide 4: Financial Highlights: Key Earnings Metrics
| enstargroup.com 4 Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Key Earnings Metrics Return on equity (“ROE”) (9.8) % 6.0 % (13.9) % 9.1 % Annualized ROE (27.7) % 18.2 % Adjusted ROE (1) (4.2) % 10.9 % Annualized adjusted ROE (1) (8.4) % 21.7 % Basic n
Slide 5: Consolidated Results by Segment - QTD 2022
| enstargroup.com 5 Consolidated Results by Segment - QTD 2022 Three Months Ended June 30, 2022 Run-off Enhanzed Re Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 9 $ 1 $ — $ 4 $ — $ 14 Net investment income — — 104 2 — 106 Net realized losses — — (38) — — (
Slide 6: Consolidated Results by Segment - QTD 2021
| enstargroup.com 6 Consolidated Results by Segment - QTD 2021 Three Months Ended June 30, 2021 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 42 $ — $ 17 $ — $ 59 Net investment income — 76 — — 76 Net realized gains — 6 — — 6 Net unrealized gains —
Slide 7: Consolidated Results by Segment - YTD 2022
| enstargroup.com 7 Consolidated Results by Segment - YTD 2022 Six Months Ended June 30, 2022 Run-off Enhanzed Re Investment s Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 26 $ 15 $ — $ 7 $ — $ 48 Net investment income — — 180 6 — 186 Net realized losses — — (75) — —
Slide 8: Consolidated Results by Segment - YTD 2021
| enstargroup.com 8 Consolidated Results by Segment - YTD 2021 Six Months Ended June 30, 2021 Run-off Investment s Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 115 $ — $ 37 $ — $ 152 Net investment income — 137 1 — 138 Net realized losses — (4) (1) — (5) Net unrealize
Slide 9: Capital Position & Credit Ratings
| enstargroup.com 9 Capital position June 30, 2022 December 31, 2021 $ / pp Change Ordinary shareholders' equity $ 4,183 $ 5,586 $ (1,403) Series D and E preferred shares 510 510 — Total Enstar shareholders' equity 4,693 6,096 (1,403) Noncontrolling interests 193 230 (37) Total shareholders' equity
Slide 10: Non-GAAP Measures
| enstargroup.com 10 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 secu
Slide 11: Non-GAAP Measures (continued)
| enstargroup.com 11 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 reserve
Slide 12: Reconciliation to Adjusted Book Value Per Share
| enstargroup.com 12 Reconciliation to Adjusted Book Value Per Share As of June 30, 2022 December 31, 2021 Equity (1) Ordinary Shares Per Share Amount Equity (1) Ordinary Shares Per Share Amount Book value per ordinary share $ 4,183 17,008,567 $ 245.93 $ 5,586 17,657,944 $ 316.34 Non-GAAP adjustment
Slide 13: Reconciliation to Adjusted Return on Equity
| enstargroup.com 13 Reconciliation to Adjusted Return on Equity Three Months Ended June 30, 2022 2021 Net (loss) earnings (1) Opening equity (1) (Adj) ROE Annualized (Adj) ROE Net (loss) earnings (1) Opening equity (1) (Adj) ROE Annualized (Adj) ROE Net (loss) earnings/Opening equity/ROE/Annualized
Slide 14: Reconciliation to Adjusted Run-off Liability Earnings - QTD
| enstargroup.com 14 Reconciliation to Adjusted Run-off Liability Earnings - QTD Three Months Ended As of Three Months Ended June 30, 2022 June 30, 2022 March 31, 2022 June 30, 2022 June 30, 2022 PPD Net loss reserves Net loss reserves Average net loss reserves Annualized RLE % PPD/net loss reserves
Slide 15: Reconciliation to Adjusted Run-off Liability Earnings - YTD
| enstargroup.com 15 Reconciliation to Adjusted Run-off Liability Earnings - YTD Six Months Ended As of Six Months Ended June 30, 2021 June 30, 2021 December 31, 2020 June 30, 2021 June 30, 2021 PPD Net loss reserves Net loss reserves Average net loss reserves Annualized RLE % (in millions of U.S. d
Slide 16: Reconciliation to Adjusted Total Investment Return
| enstargroup.com 16 Reconciliation to Adjusted Total Investment Return Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Investment results Net investment income $ 106 $ 76 $ 186 $ 138 Net realized (losses) gains (38) 6 (75) (5) Net unrealized (losses) gains (591) 400 (972)
Slide 17: Investable Assets - Management's View
| enstargroup.com 17 Investable Assets - Management’s View* - June 30, 2022 * Non-GAAP financial measure. Consolidated Balance Sheet View June 30, 2022 Exchange traded funds backed by fixed income securities Bonds, CLO equities and private credit held in equity format Equities, private equity, priva
Slide 18: Investable Assets - Management's View - December 31, 2021
| enstargroup.com 18 Investable Assets - Management’s View* - December 31, 2021 * Non-GAAP financial measure. Consolidated Balance Sheet View December 31, 2021 Exchange traded funds backed by fixed income securities Bonds, CLO equities and private debt held in equity format Equities, privately held