Enstar Group Limited · OTC:ESGOF
Enstar — FY2023 Earnings Presentation
31 slides from Enstar's earnings presentation, Feb 20, 2024
Slide 1: Investor Financial Supplement December 31, 2023
Enstargroup.com Enstargroup.com Realising Value Investor Financial Supplement December 31, 2023 ENSTAR GROUP LIMITED
Slide 2: Table of Contents
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 5 Book Value Per Share & Return On Equity 7 Consolidated Results by Segment 8 Prior Period Development (“PPD”) by Acquisition Year 12 Ultimate Losses % Acquired Losses by Acquisition Year 13 Adjusted PPD by Acquisiti
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
| enstargroup.com 5 Three Months Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Key Income Metrics ROE 13.7 % 5.5 % 24.2 % (15.6) % Adjusted ROE (1) 9.0 % 4.0 % 18.8 % (1.1) % Basic net earnings (loss) per share $ 40.14 $ 13.34 $ 69.22 $ (52.65) Diluted net
Slide 6: Financial Highlights - Five Years
| enstargroup.com 6 Year Ended December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 (2) Key Income Metrics Return on equity 24.2 % (15.6) % 7.9 % 38.4 % 25.5 % Adjusted return on equity (1) 18.8 % (1.1) % 10.1 % 41.9 % 18.8 % Key Run-off Metrics Average net loss
Slide 7: Book Value Per Share & Return on Equity - Five Years
| enstargroup.com 7 Book Value Per Share & Return on Equity - Five Years Growth in Book Value Per Ordinary Share and Fully Diluted Book Value Per Ordinary Share* Annual % Change $208.73 $293.97 $329.20 $262.24 $343.45 $205.11 $288.56 $323.43 $258.92 $336.72 Book Value Per Ordinary Share Fully Dilute
Slide 8: Consolidated Results by Segment - Q4 2023
| enstargroup.com 8 Consolidated Results by Segment - Q4 2023 Three Months Ended December 31, 2023 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total REVENUES Net premiums earned $ 14 $ — $ — $ — $ — $ 14 Net investment income — — 176 — — 176 Net realized losses — — (
Slide 9: Consolidated Results by Segment - Q4 2022
| enstargroup.com 9 Consolidated Results by Segment - Q4 2022 Three Months Ended December 31, 2022 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total REVENUES Net premiums earned $ 13 $ — $ — $ 1 $ — $ 14 Net investment income — — 151 2 — 153 Net realized losses — — (
Slide 10: Consolidated Results by Segment - 2023
| enstargroup.com 10 Consolidated Results by Segment - 2023 Year Ended December 31, 2023 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total REVENUES Net premiums earned $ 43 $ — $ — $ — $ — $ 43 Net investment income — — 647 — — 647 Net realized losses — — (65) — — (6
Slide 11: Consolidated Results by Segment - 2022
| enstargroup.com 11 Consolidated Results by Segment - 2022 Year Ended December 31, 2022 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total REVENUES Net premiums earned $ 40 $ 17 $ — $ 9 $ — $ 66 Net investment income — — 445 10 — 455 Net realized losses — — (111) — —
Slide 12: Prior Period Development by Acquisition Year
| enstargroup.com 12 Prior Period Development (“PPD”) by Acquisition year PPD in Year Ended December 31, Acquisition Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (in millions of U.S. dollars) (unaudited) 2013 and prior $ 289 $ 282 $ 160 $ 133 $ 107 $ 86 $ 60 $ 43 $ 14 $ 11 2014(1) 30 18 18
Slide 13: Ultimate Losses % Acquired Losses by Acquisition Year
| enstargroup.com 13 Ultimate Losses % Acquired Losses by Acquisition Year Ultimate Losses for the Years Ended December 31, Assumed and Acquired net losses and LAE Acquisition Year Third Party Related Party and Transfers Between Acquisition Years Total 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 14: Adjusted PPD by Acquisition Year
| enstargroup.com 14 Adjusted PPD by Acquisition Year* Adjusted PPD* in Year Ended December 31, Acquisition Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (in millions of U.S. dollars) (Unaudited) 2013 and prior $ 291 $ 275 $ 171 $ 126 $ 108 $ 92 $ 60 $ 42 $ 29 $ 13 2014 2 (37) 1 1 8 5 3 30
Slide 15: Adjusted Ultimate Losses % Acquired Losses
| enstargroup.com 15 Adjusted Ultimate Losses % Acquired Losses* Adjusted Assumed and Acquired net losses and LAE* Adjusted Ultimate Losses* for the Years Ended December 31, (1) Acquisition Year Third Party Related Party and Transfers Between Acquisition Years Total 2014 2015 2016 2017 2018 2019 202
Slide 16: Capital Position & Credit Ratings
| enstargroup.com 16 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 17: Non-GAAP Measures
17 Non-GAAP Measures Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Fully diluted 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
Slide 18: Non-GAAP Measures (continued)
| enstargroup.com 18 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 19: Reconciliation to Fully Diluted Book Value Per Share
| enstargroup.com 19 Reconciliation to Fully Diluted Book Value Per Share For the Year Ended December 31, 2023 2022 2021 Equity (1) Ordinary Shares Per Share Amount Equity (1) (2) Ordinary Shares Per Share Amount Equity (1) Ordinary Shares Per Share Amount (in millions of U.S. dollars, except share
Slide 20: Reconciliation to Adjusted Return on Equity - QTD Q4 2023 and 2022
| enstargroup.com 20 Reconciliation to Adjusted Return on Equity - QTD Q4 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 21: Reconciliation to Adjusted Return on Equity - 2023, 2022 and 2021
| enstargroup.com 21 Reconciliation to Adjusted Return on Equity - 2023, 2022 and 2021 1) Net income (loss) comprises net income (loss) attributable to Enstar ordinary shareholders, prior to any non-GAAP adjustments. Opening equity comprises Enstar ordinary shareholders' equity, which is calculated
Slide 22: Reconciliation to Adjusted Return on Equity - 2020 and 2019
| enstargroup.com 22 Reconciliation to Adjusted Return on Equity - 2020 and 2019 Year Ended December 31, 2020 December 31, 2019 Net income (loss) (1) Opening Equity (1) (Adj) ROE Net income (loss) (1) Opening Equity (1) (7) (Adj) ROE (in millions of U.S. dollars) Net income (loss)/Opening equity/ROE
Slide 23: Reconciliation to Adjusted Run-off Liability Earnings - 2023 and 2022
| enstargroup.com 23 Reconciliation to Adjusted Run-off Liability Earnings - 2023 and 2022 Year Ended As of Year Ended December 31, 2022 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2022 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves RLE % PPD/net loss
Slide 24: Reconciliation to Adjusted Run-off Liability Earnings - 2021 and 2020
| enstargroup.com 24 Reconciliation to Adjusted Run-off Liability Earnings - 2021 and 2020 Year Ended As of Year Ended December 31, 2021 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2021 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves Annualized RLE % (i
Slide 25: Reconciliation to Adjusted Run-off Liability Earnings - 2019
| enstargroup.com 25 Reconciliation to Adjusted Run-off Liability Earnings - 2019 Year Ended As of Year Ended December 31, 2019 December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2019 RLE / PPD Net loss reserves Net loss reserves (2) Average net loss reserves (2) RLE % (in millions o
Slide 26: Reconciliation to Adjusted Total Investment Return
| enstargroup.com 26 Reconciliation to Adjusted Total Investment Return Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 2021 2020 2019 Net investment income $ 176 $ 153 $ 647 $ 455 $ 312 $ 303 $ 308 Net realized (losses) gains (10) (23) (65) (111) (61) 19 5 Net unrealized
Slide 27: Reconciliation of PPD by Acquisition Year
| enstargroup.com 27 Reconciliation of PPD by Acquisition Year PPD in year ended December 31, Acquisition year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (in millions of U.S. dollars) 2013 and prior PPD 289 282 160 133 107 86 60 43 14 11 Legacy (19) (22) (13) (21) (14) (8) (7) (6) 3 — FVA 21
Slide 28: Reconciliation of PPD by Acquisition Year (continued)
| enstargroup.com 28 Reconciliation of PPD by Acquisition Year (continued) * Non-GAAP financial measure. Cumulative Adjusted PPD on page 14 is merely the sum of the relevant numbers in the table above. PPD in year ended December 31 Acquisition year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (
Slide 29: Reconciliation of Assumed and Acquired Reserves
| enstargroup.com 29 Reconciliation of Assumed and Acquired Reserves Non-GAAP Adjustments (2): Adjusted Assumed and Acquired net losses and LAE* Acquisition year Assumed and Acquired net losses and LAE Enhanzed Re Legacy Underwriting Fair value adjustments - acquired companies Fair value adjustments
Slide 30: Investment Composition - December 31, 2023
| enstargroup.com 30 Investment Composition - December 31, 2023 Other Investments Equities Cash (2) Funds Held Short-term and fixed maturities, trading and AFS December 31, 2023 Hedge Funds Fixed income funds Equity funds Private equity funds CLO equities CLO equity funds Private credit funds Real e
Slide 31: Investment Composition - December 31, 2022
| enstargroup.com 31 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