Montpelier Re — Merger or Acquisition (March 2015)
11 slides from Montpelier Re's merger presentation, Mar 31, 2015
Slide 1: Endurance: Acquisition of Montpelier Re
Endurance: Acquisition of Montpelier Re Investor Presentation March 31, 2015
Slide 2: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements Some of the statements in this presentation may include, and Endurance may make related oral, forward-looking statements which reflect our current views with respect to future events and financial performance. Such statements may include forward-l
Slide 3: Participants in the Solicitation; Additional Information; Regulation G Disclaimer
Participants in the Solicitation Endurance and Montpelier and their directors and executive officers are deemed to be participants in any solicitation of Endurance and Montpelier shareholders in connection with the proposed merger. Information about Endurance’s directors and executive officers is av
Slide 4: Key Transaction Terms
Key Transaction Terms 4 Notes 1. Figures based on Endurance closing share price of $64.30 as of 3/30/2015 and 45.5MM fully-diluted Montpelier common shares Transaction • Endurance to acquire all of the common shares of Montpelier in a cash and stock acquisition Value • $1.8 billion transaction equit
Slide 5: Transaction Highlights
Transaction Highlights 5 Increased Scale and Market Presence • Transaction creates an enterprise with over $3.6 billion (1) of annual gross premiums written • Increased size allows organization to better capitalize on distribution relationships and more effectively compete across all market conditio
Slide 6: Transaction Provides Increased Scale and Stronger Balance Sheet
Transaction Provides Increased Scale and Stronger Balance Sheet 6 2014 Gross Premiums Written of Peer Companies 14.1 10.6 5.7 5.1 4.8 3.6 2.9 2.9 2.9 2.4 2.1 1.9 0.7 0 4 8 12 16 XL + CGL PRE + AXS RE Y ACGL ENH + MRH AWH AHL ENH VR RNR AGII MRH $Bn Notes 1. Pro forma for Platinum acquisition 2. As o
Slide 7: Combined business mix by gross premiums written
7 Endurance (1) Montpelier (1) (2) Combined Insurance 59% Property Catastrophe Reinsurance 30% Other Reinsurance 18% Other Insurance 4% + = Collateralized Re 11% Lloyd’s Insurance 23% GPW: $2.9Bn GPW: $0.7Bn GPW: $3.6Bn Property Catastrophe Reinsurance 16% Other Reinsurance 27% Insurance 48% Lloyd’s
Slide 8: Transaction Adds Important New Strategic Capabilities to Endurance
Transaction Adds Important New Strategic Capabilities to Endurance 8 Lloyd’s • Profitable, diversified syndicate focused on specialty insurance opportunities • Focus on non-cat exposed products complementary to other Endurance businesses Blue Capital Montpelier Overview Benefits to Endurance • Accel
Slide 9: Financially Compelling Transaction
9 Notes 1. Excluding non-recurring integration and transaction costs • More than $60MM of annual run-rate cost savings • Modest premium reduction from re-underwriting • Enhanced financial flexibility from generation of excess capital EPS (1) • Immediately accretive to EPS ROE (1) • Accretive vs. sta
Slide 10: Enhanced Balance Sheet Strength
Enhanced Balance Sheet Strength 10 Endurance Montpelier Pro Forma (1) Cash and Invested Assets $6.7Bn $3.2Bn $9.3Bn Total Assets $9.6Bn $3.6Bn $13.0Bn Common Equity $2.8Bn $1.5Bn $4.1Bn Total Capital $3.7Bn $2.1Bn $5.5Bn Debt / Total Capital 14.2% 19.8% 17.0% (Debt + Preferred) / Total Capital 25.8%
Slide 11: Conclusion
• Transaction is financially attractive to Endurance shareholders and provides compelling value to Montpelier’s shareholders • Transaction provides important new strategic capabilities to Endurance with increased scale and market presence • Combined balance sheet and capital position is significantl
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