Enstar Group Limited · OTC:ESGOF
Enstar — Q1 2021 Earnings Presentation
19 slides from Enstar's earnings presentation, May 7, 2021
Slide 1: Investor Financial Supplement March 31, 2021
enstargroup.com ENSTAR GROUP LIMITED Investor Financial Supplement March 31, 2021
Slide 2: Table of Contents
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 5 Recent Transactions 6 Book Value Per Share 7 Book Value & Share Price Performance 8 Summary Balance Sheets 9 Summary Earnings Statements 10 Earnings Per Share 11 Non-GAAP Operating Income 12 Reserve/Claims Savings
Slide 3: Explanatory Notes
| enstargroup.com 3 Explanatory Notes About Enstar Enstar is a NASDAQ-listed leading global 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 internationa
Slide 4: Explanatory Notes (continued)
| enstargroup.com 4 Explanatory Notes (continued) We eliminate the impact of (gain) loss on sale of subsidiaries and net earnings (loss) from discontinued operations because these are also not reflective of the performance of our core operations. Diluted Non-GAAP operating income (loss) per ordinary
Slide 5: Financial Highlights
| enstargroup.com 5 Three Months Ended March 31, 2021 March 31, 2020 Key Earnings Metrics Net earnings (loss) attributable to Enstar ordinary shareholders $ 183,197 $ (516,821) Non-GAAP operating income (loss) attributable to Enstar ordinary shareholders (1) $ 283,730 $ (337,804) Basic net earnings
Slide 6: Recent Transactions
| enstargroup.com 6 Recent Transactions 2020 Completed Transactions Date Completed Total Assets Assumed Deferred Charge Asset (2) Total Liabilities Assumed Net Fair Value Adjustment (3) Primary Nature of Business (in thousands of U.S. dollars) Hannover Re August 6, 2020 $ 182,498 N/A $ 209,713 $ (27
Slide 7: Book Value Per Share
| enstargroup.com 7 Book Value Per Share March 31, 2021 December 31, 2020 Numerator: Total Enstar shareholder's equity $ 6,760,776 $ 6,674,395 Less: Series D and E preferred shares 510,000 510,000 Total Enstar ordinary shareholders' equity (A) 6,250,776 6,164,395 Proceeds from assumed conversion of
Slide 8: Book Value & Share Price Performance
| enstargroup.com 8 Book Value & Share Price Performance (1) Source: S&P Market Intelligence Comparison of 10 Year Cumulative Total Return & Fully Diluted BVPS Enstar Fully Diluted BVPS ESGR Share Price (1) S&P 500 (1) S&P Insurance Index (1) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YT
Slide 9: Summary Balance Sheets
| enstargroup.com 9 Summary Balance Sheets March 31, 2021 December 31, 2020 ASSETS Short-term and fixed maturity investments, trading $ 4,322,902 $ 4,600,021 Short-term and fixed maturity investments, AFS 4,657,127 3,658,895 Funds held - directly managed 1,016,531 1,074,890 Other investments, includ
Slide 10: Summary Earnings Statements
| enstargroup.com 10 Summary Earnings Statements Three Months Ended March 31, 2021 March 31, 2020 INCOME Net premiums earned $ 92,876 $ 159,351 Fees and commission income 9,598 7,528 Net investment income 62,089 74,714 Net realized and unrealized losses (20,788) (629,061) Other income 551 20,444 Net
Slide 11: Earnings Per Share
| enstargroup.com 11 Earnings Per Share Three Months Ended March 31, 2021 2020 Numerator: Earnings (loss) attributable to Enstar ordinary shareholders: Net earnings (loss) from continuing operations (1) $ 183,197 $ (515,600) Net earnings (loss) from discontinued operations (2) — (1,221) Net earnings
Slide 12: Non-GAAP Operating Income
| enstargroup.com 12 Non-GAAP Operating Income (1) Represents the net realized and unrealized gains and losses related to fixed maturity securities included in net earnings (loss). Our fixed maturity securities are held directly on our balance sheet and also within the "Funds held - directly managed
Slide 13: Reserve/Claims Savings
| enstargroup.com 13 Reserve/Claims Savings (1) Refer to the corresponding note to our consolidated financial statements included within Item 1 of our Quarterly Report on Form 10-Q for the three months ended March 31, 2021 for further details. (2) Non-GAAP financial measure, refer to the explanatory
Slide 14: Investment Composition - GAAP
| enstargroup.com 14 March 31, 2021 December 31, 2020 Short-term and fixed maturity investments, trading and AFS and funds held - directly managed U.S. government & agency $ 784,545 4.3 % $ 951,048 5.5 % U.K. government 42,797 0.2 % 51,082 0.3 % Other government 536,447 2.9 % 502,153 2.9 % Corporate
Slide 15: Investment Performance - GAAP
| enstargroup.com 15 Investment Performance - GAAP Three Months Ended March 31, 2021 2020 Net investment income: Fixed income securities (1) $ 52,200 $ 63,003 Cash and restricted cash (88) 2,150 Other investments, including equities 13,592 14,056 Less: Investment expenses (3,615) (4,495) Total net i
Slide 16: Investment Composition - Non-GAAP
| enstargroup.com 16 Composition of investable assets March 31, 2021 December 31, 2020 Fixed maturities $ 9,990,553 54.9 % $ 9,319,179 54.0 % Equities 839,143 4.6 % 830,600 4.8 % Bond/loan funds 850,051 4.7 % 763,140 4.4 % Hedge funds 2,915,114 16.0 % 2,638,339 15.3 % Private equities 299,413 1.6 %
Slide 17: Investment Composition - Non-GAAP Reconciliation
| enstargroup.com 17 March 31, 2021 December 31, 2020 Equities - GAAP $ 1,098,568 $ 846,795 Less: Exchange traded funds backed by fixed income securities (211,103) (156,362) Less: Bond fund held in equity format (57,252) (54,248) Plus: Equities held in fund format 5,305 190,767 Plus: Privately held
Slide 18: Capital Position & Credit Ratings
| enstargroup.com 18 Capital position March 31, 2021 December 31, 2020 Change Ordinary shareholders' equity $ 6,250,776 $ 6,164,395 $ 86,381 Series D and E preferred shares 510,000 510,000 — Total Enstar shareholders' equity (A) 6,760,776 6,674,395 86,381 Noncontrolling interest 12,655 13,609 (954)
Slide 19: Consolidated Results by Segment - Quarter to Date
| enstargroup.com 19 Consolidated Results by Segment - Quarter to Date Three Months Ended March 31, 2021 March 31, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 72,836 $ — $ 20