Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Corporate Update (May 2018)
15 slides from Aventus Capital's corporate update, May 2018
Slide 1: Corporate Update
A.WESTAINM | Corporate Update May 2018
Slide 2: Disclaimer
Disclaimer Safe Harbour Statement This document and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part either directly or indirectly without the prior written consent of each of The Westaim Corporation (“Westaim” or the “Corporation”), Ho
Slide 3: The Westaim Corporation
The Westaim Corporation The Westaim Corporation Structure Alternative Investment Management Specialty Property and Casualty Insurance and Specialty Finance Market Statistics Ticker TSXV:WED Share price (May 14, 2018) C$ 3.10 Shares outstanding (millions) 143.2 Market capitalization (millions) C$ 443
Slide 4: Westaim Q1 2018 Results - Highlights
The Westaim Corporation Westaim Q1 2018 Results - Highlights HIIG Delivered improved underwriting Three Months Ended March 31, 2018 results and higher investment income Gross Written Premium $160.0 including net realized gains Net Premiums Earned $63.4 Combined Ratio 94.7% Net Income $6.9 Net Resu
Slide 5: Breakdown of BVPS at March 31, 2018 – Significant Embedded Value
The Westaim Corporation Breakdown of BVPS at March 31, 2018 – Significant Embedded Value BVPS BVPS Entity (US$) (C$) Arena Arena Investors HIIG $1.08 $1.39 Origination 2.8% (44.0% owned by Westaim)(1) 10.0% Arena Group Arena Finance 1.06 1.37 (100% owned by Westaim)(2) Arena Origination 0.24 0.31 (1
Slide 6: Houston International Insurance Group, Ltd.
Houston International Insurance Group, Ltd. Business Description Executive management with Diversified specialty 4 subsidiary P&C significant industry experience Insurance Holding insurance companies (Chairman and CEO: Company and an underwriting agency Stephen L. Way) Investments, Cash and Trailing
Slide 7: Houston International Insurance Group, Ltd.
Houston International Insurance Group, Ltd. Gross Written Premium(1)(2) Net Premiums Written(1)(2) For the Trailing Twelve Month Period Ended For the Trailing Twelve Month Period Ended March 31, 2018 March 31, 2018 A&H Commercial A&H 12.9% Commercial 27.9% 11.1% Excess & Excess & 33.4% Surplus Surpl
Slide 8: Arena Group Overview
Arena Group Overview Founded in 2015 and capitalized with $180 million of permanent capital Arena Group Focus on private credit / specialty finance Headquartered in New York; 40+ employees Loan Origination, collateral-focused investment discipline Strategy Highly diversified, global market
Slide 9: The Arena Advantage
Arena Group The Arena Advantage Asset class, industry, and Mandate Diversified Portfolio geography agnostic Flexibility Maximized Returns Direct relationships yield exclusive Proprietary Increased Deal Flow origination arrangements Sourcing Selective Funding Internally developed platform manages all
Slide 10: Market Opportunity
Arena Group Market Opportunity Niche Market Focus Multi-Capabilities Arena Investors originates (vs. syndicates) collateral- backed credits with a highly diversified, global multi-strategy mandate Single Strategy Relative to our largest peers, Arena attempts to capture the vacuum of opportunitie
Slide 11: Deal Sourcing
Arena Group Deal Sourcing Deals Terms Terms Deals Accepted Issued Signed Funded For Appraisal Selective Sourcing and Origination Arena’s team of seasoned investment professionals possess unique sourcing, underwriting, and servicing capabilities, enriched by 1056 264 80 80 7.6% leveraging 50+ joint v
Slide 12: Actual Underwritten Characteristics of Private Loans and Credit Investments
Arena Group Actual Underwritten Characteristics of Private Loans and Credit Investments (March 31, 2018)(1) Corporate Real Estate Commercial & Structured Consumer Overall Private Credit Credit(2) Industrial Finance Assets Total Coupon 12.3% 11.9% 14.5% 17.0% 14.6% 13.0% (incl. PIK) Underwritten 16.0
Slide 13: Net Unlevered Returns to Investors (Unaudited)
Arena Group Net Unlevered Returns to Investors (Unaudited) Arena Special Opportunities Fund, LP Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2018 0.35% 0.65% 1.13% 2.53% 2017 0.35% 0.69% 0.78% 0.81% 0.66% 0.59% 1.32% 1.34% 2.85% 4.43% 0.37% 0.57% 15.70% 2016 0.12% 0.09% 0.29% 0.21% 0.12%
Slide 14: Share Price Performance
The Westaim Corporation Share Price Performance(1) 800.0% CAGR(2) 700.0% Westaim ––– 22.8% 686.0% S&P Total Return Index ––– 14.6% 600.0% TSX Total Return Index ––– 9.3% 500.0% % Gain 400.0% 357.5% 300.0% 229.2% 200.0% 100.0% 0.0% Jan-09 Dec-09 Nov-10 Oct-11 Oct-12 Sep-13 Aug-14 Jul-15 Jul-16 Jun-17
Slide 15: The Westaim Corporation, 70 York Street, Toronto
The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]