Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q3 2021 Earnings Presentation
31 slides from Aventus Capital's earnings presentation, Nov 18, 2021
Slide 1: Q3 2021 Investor Presentation
Q3 2021 Investor Presentation November 18, 2021
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” or t
Slide 3: Important Disclosures
Important Disclosures Non-GAAP Measures Westaim Westaim uses both international financial reporting standards (as issued by the International Accounting Standards Board) (“IFRS”) and non-GAAP measures to assess performance. Westaim cautions readers about non-GAAP measures that do not have a standard
Slide 4: Important Disclosures
Important Disclosures Arena Investors The following is being provided solely in relation to Arena Investors, LP, its funds, subsidiaries and affiliates: Returns shown are unaudited. Past performance is not indicative or a reliable indicator of future performance. Actual results may vary. The informa
Slide 5: The Westaim Corporation
The Westaim Corporation The Westaim Corporation Westaim is a publicly listed (TSXV:WED) investment holding company specializing in providing long-term capital to businesses operating primarily within the global financial services industry. Our focus has been, and continues to be, to seek high qualit
Slide 6: Q3 2021 Quarterly Operating Highlights
Q3 2021 Quarterly Operating Highlights Westaim reports continued quarterly earnings driven by favourable results from Skyward Specialty and Arena Investors • Skyward Specialty’s Q3 2021 Net Income was $7.7 million compared to Q3 2020 Net Income of $6.4 million (Net Income excluding unusual items of
Slide 7: Westaim Summary Quarterly Operating Results
Westaim Summary Quarterly Operating Results Operating result Three months Nine months ended September 30 ended September 30 • GAAP profit and comprehensive income in Q3 2021 was $1.6 million ($0.01 per share) compared to a (Currency amounts in millions of US$ except per share data) 2021 2020 2021 20
Slide 8: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position As at September 30, 2021 June 30, 2021 December 31, 2020 (Currency amounts in millions of US$ except per share data) • Book value per share increased US$0.01 Assets (+0.4%) in Q3 2021 and US$0.15 (+6.7%) Cash $8.7 $9.7 $8.7 YTD Q3 2021 Other assets 0.7
Slide 9: Westaim Book Value per Share: Three months ended September 30, 2021
Westaim Book Value per Share (US$): Three months ended September 30, 2021 $0.02 $0.00 $0.00 ($0.01) $2.39 $2.38 BVPS Income from Skyward Income from Arena FINCOs Income from Arena Westaim holding company BVPS June 30, 2021 Specialty and ASOF Investors net expenses September 30, 2021 Any terms not de
Slide 10: Westaim Book Value per Share: Nine months ended September 30, 2021
Westaim Book Value per Share (US$): Nine months ended September 30, 2021 $0.03 ($0.02) $2.39 $0.06 $0.08 $2.24 BVPS Income from Skyward Income from Arena FINCOs Income from Arena Westaim holding company BVPS December 31, 2020 Specialty and ASOF Investors net expenses September 30, 2021 Any terms not
Slide 11: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 12: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A private, US-based specialty property and casualty insurer that (US$ millions) YTD FY Q3 2021(1) 2020(1) writes on both an admitted and non-admitted basis Select Income Statement Metrics • Strategy focuses on building defens
Slide 13: Summary Statements of Operations
SUMMARY STATEMENTS OF OPERATIONS Three months ended Nine months ended September 30 September 30 (Currency amounts in millions of US$) 2021 2020 2021 2020 Written Premium Growth Gross written premium (GWP) $215.1 $191.4 $715.7 $677.3 • Skyward Specialty is focused on being a disciplined gross line un
Slide 14: Summary Balance Sheets
SUMMARY BALANCE SHEETS As at (Currency amounts in millions of US$) September 30, 2021 June 30, 2021(1) December 31, 2020(1) • Adjusted stockholders’ equity increased to $435.7 million or 7.4% from Q4 2020 primarily reflecting income of $34.7 million partially offset by $5.4 Investments $925.0 $858.4
Slide 15: Adjusted Stockholders' Equity: Three Months Ended September 30, 2021
ADJUSTED STOCKHOLDERS' EQUITY: FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 (1) $7.7 ($1.4) $435.7 $0.3 $429.1 Adjusted stockholders' equity Employee shareholder activity Net income Other comprehensive Adjusted stockholders' equity June 30, 2021 income September 30, 2021 Currency amounts in million
Slide 16: Adjusted Stockholders' Equity: Nine Months Ended September 30, 2021
ADJUSTED STOCKHOLDERS' EQUITY: FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (1) $36.2 ($5.4) ($1.5) $435.7 $405.5 $0.9 Adjusted stockholders' equity Employee shareholder activity Net Income Other comprehensive Goodwill impairment Adjusted stockholders' equity December 31, 2020 income net of tax Sept
Slide 17: Combined Ratio Progression
COMBINED RATIO PROGRESSION (1) 141.9% 111.2% 96.4% 96.4% 95.5% 96.2% 95.9% 93.8% 97.5% 94.8% 94.1% 93.6% 92.6% 91.6% 90.6% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 CR (excluding CAT, LPT and unusual items) CR (excluding LPT and unusual items) CR (all in) (1) Does not include charges r
Slide 18: Conservative Investment Portfolio
CONSERVATIVE INVESTMENT PORTFOLIO • The total investment portfolio(1) of approximately $923 million BBB & Other Invested Lower • Duration of ~2.8 years 16% Assets • The tax equivalent annualized 13% yield ~2.7% AAA Equities Fixed Income A • Equity portfolio is primarily 16% 47% 12% 33% large-cap val
Slide 19: Seeing What's Possible
September March 31, 202130, 2021 Seeing What’s Possible
Slide 20: About Arena Investors
About Arena(1) 20 • Global originator and underwriter of proprietary investments ABOUT ARENA INVESTORS seeking to produce consistent and uncorrelated returns • Institutional scale and experience with transaction sizes between $2.65B $5 million – $50 million, which avoids competition with global Asse
Slide 21: Arena Investors – Well Positioned to Accelerate Growth
Arena Investors – Well Positioned to Accelerate Growth 21 • Global senior staff in place Platform Fully • Infrastructure and entities fully established and operational Constructed • Platform of product offerings complete • In process to secure appropriate financing for capital pools • ~$3.1B deploye
Slide 22: Q3 2021 Quarterly Result Highlights
Q3 2021 Quarterly Result Highlights 22 Q3 2021 Results: YTD YTD (US dollars in millions) Q3 2021 Q3 2020 Q3 2021 Q3 2020 • Net profit was $2.0 million for Q3 2021 and $8.3 million for YTD Q3 2021, compared to a ($0.7) million loss in Recurring Income Q3 2020 and a ($3.0) million loss for YTD Q3 2020
Slide 23: Deployed: Investment vehicles
Investment vehicles (1), (2) 23 $ 2 . 6 5 B U N D E R M A N A G E M E N T, $ 1 . 9 6 B D E P LOY E D * Permanent Capital (Arena F INCOs) EXCESS CAPACIT Y OPPO RT UN IT IES • Arena Finance $ 0 . 4 1 B , $ 0 . 2 4 B D E PLOY E D S T R AT E G Y $ 1 . 9 6 B , $ 1 . 6 4 B A R E N A F U L LY D I V E R S I
Slide 24: Arena Investors – Performance
Arena Investors – Performance (1) 24 Arena’s core investment strategy seeks to build a highly diversified and uncorrelated portfolio of investments. Consistent performance including stable performance during COVID-19. Our five-year track record has also outperformed the LSTA Leveraged Loan 100 index
Slide 25: Arena Investors – Assets Under Management Through 10/1/2021
25 Arena Investors – Assets Under Management Through 10/1/20212 Arena Group’s assets under management (including undrawn commitments) grew $329 million in Q3. From December 31, 2015 to October 1, 2021 AUM has grown at a CAGR of ~55%. Arena Investors – Assets Under Management Through 10/1/20212 $ 3,0
Slide 26: Arena Investors – Deal Structure Aligns Arena Management and Westaim
Arena Investors – Deal Structure Aligns Arena Management and Westaim • Arena Investors was founded by Dan Zwirn and Westaim in August 2015 under an arrangement designed to align Arena Investors’ senior management interests very tightly with those of Westaim and its shareholders. The principal elemen
Slide 27: Arena FINCOs
fs ARENA
Slide 28: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Three months ended Nine months ended • Q3 2021 Net Loss was $0.8 million (-0.4% September 30, 2021 September 30, 2021 net investment return) compared to Q3 (Currency amounts in millions of US$) 2021 2020 2021 2020 2020 Net Income of $0.4 million (+0.2% Inve
Slide 29: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets Fair Value September 30, 2021 June 30, 2021 December 31, 2020 (Currency amounts in millions of US$) • Proceeds from the bond offering Cash and cash equivalents $9.1 $22.3 $21.4 continue to be invested, with Due from brokers, net (25.6) (24.3) (5.5) Arena FINCOs to
Slide 30: Arena FINCOs: Portfolio breakdown as at September 30, 2021
Arena FINCOs: Portfolio breakdown as at September 30, 2021 Equity / Corporate REO / Hard Private Credit Assets(1) 25% 48% Other Debt Securities 52% 34% Consumer Assets 5% Real Estate and Real Structured Estate Private Credit Finance Commercial and 15% 2% Industrial Assets 19% Arena FINCOs held 226 p
Slide 31: Future Events
Future Events: Q4 2021 Investor Presentation Expected Release: March 24, 2022 The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]