Enstar Group Limited · OTC:ESGOF
Enstar — FY2020 Earnings Presentation
19 slides from Enstar's earnings presentation, Mar 1, 2021
Slide 1: Investor Financial Supplement December 31, 2020
enstargroup.com ENSTAR GROUP LIMITED Investor Financial Supplement December 31, 2020
Slide 2: Table of Contents
| enstargroup.com 2 Page Explanatory Notes 3 Financial Highlights 5 Book Value Per Share 6 Book Value & Share Price Performance 7 Summary Balance Sheets 8 Summary Earnings Statements 9 Earnings Per Share 10 Non-GAAP Operating Income 11 Non-life Run-off Reserve / Claims Savings 12 Investment Composit
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) Investment Composition - Non-GAAP In certain instances, U.S. GAAP requirements result in classifications of our investment assets that may not correspond to management’s view of the underlying economic exposure of a particular investment. As such, we
Slide 5: Financial Highlights
| enstargroup.com 5 Three Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Key Earnings Metrics Net earnings attributable to Enstar ordinary shareholders $ 822,599 $ 193,839 $ 1,719,344 $ 902,175 Non-GAAP operating income attributable to Enstar
Slide 6: Book Value Per Share
| enstargroup.com 6 Book Value Per Share December 31, 2020 December 31, 2019 Numerator: Total Enstar shareholder's equity $ 6,674,395 $ 4,842,183 Less: Series D and E preferred shares 510,000 510,000 Total Enstar ordinary shareholders' equity (A) 6,164,395 4,332,183 Proceeds from assumed conversion
Slide 7: Book Value & Share Price Performance
| enstargroup.com 7 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 (5
Slide 8: Summary Balance Sheets
| enstargroup.com 8 Summary Balance Sheets December 31, 2020 September 30, 2020 December 31, 2019 ASSETS Short-term and fixed maturity investments, trading $ 4,600,021 $ 5,006,775 $ 6,194,825 Short-term and fixed maturity investments, AFS 3,658,895 3,161,647 1,666,387 Funds held - directly managed 1
Slide 9: Summary Earnings Statements
| enstargroup.com 9 Summary Earnings Statements Three Months Ended Twelve Months Ended December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 INCOME Net premiums earned $ 108,146 $ 185,336 $ 572,092 $ 804,047 Fees and commission income 14,121 9,522 42,446 28,453 Net investment incom
Slide 10: Earnings Per Share
| enstargroup.com 10 Earnings Per Share Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Numerator: Earnings attributable to Enstar ordinary shareholders: Net earnings from continuing operations (1) $ 815,543 $ 196,591 $ 1,711,810 $ 897,825 Net earnings (loss) fro
Slide 11: Non-GAAP Operating Income
| enstargroup.com 11 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 12: Non-life Run-off Reserve / Claims Savings
| enstargroup.com 12 Non-life Run-off Reserve / Claims Savings (1) Refer to the corresponding note to our consolidated financial statements included within Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020 for further details. (2) Non-GAAP financial measure, refer to the
Slide 13: Investment Composition - GAAP
| enstargroup.com 13 December 31, 2020 December 31, 2019 Short-term and fixed maturity investments, trading and AFS and funds held - directly managed U.S. government & agency $ 951,048 5.5 % $ 696,077 4.9 % U.K. government 51,082 0.3 % 161,772 1.2 % Other government 502,153 2.9 % 702,856 5.0 % Corpo
Slide 14: Investment Performance - GAAP
| enstargroup.com 14 Investment Performance - GAAP Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Net investment income: Fixed income securities (1) $ 54,613 $ 69,967 $ 268,743 $ 280,245 Cash and restricted cash 25 1,962 3,571 14,003 Other investments, including
Slide 15: Investment Composition - Non-GAAP
| enstargroup.com 15 Composition of investable assets December 31, 2020 December 31, 2019 Fixed maturities $ 9,319,179 54.0 % $ 9,034,557 64.2 % Equities 830,600 4.8 % 936,876 6.7 % Bond/loan funds 763,140 4.4 % 684,691 4.9 % Hedge funds 2,638,339 15.3 % 1,121,904 8.0 % Private equities 225,921 1.3
Slide 16: Investment Composition - Non-GAAP Reconciliation
| enstargroup.com 16 December 31, 2020 December 31, 2019 Equities - GAAP $ 846,795 $ 726,721 Less: Exchange traded funds backed by fixed income securities (156,362) (133,047) Less: Bond fund held in equity format (54,248) (70,605) Plus: Equities held in fund format 190,767 410,149 Plus: Privately he
Slide 17: Capital Position & Credit Ratings
| enstargroup.com 17 Capital position December 31, 2020 December 31, 2019 Change Ordinary shareholders' equity $ 6,164,395 $ 4,332,183 $ 1,832,212 Series D and E preferred shares 510,000 510,000 — Total Enstar shareholders' equity (A) 6,674,395 4,842,183 1,832,212 Noncontrolling interest 13,609 14,1
Slide 18: Results by Segment - Quarter to Date
| enstargroup.com 18 Results by Segment - Quarter to Date Three Months Ended December 31, 2020 Three Months Ended December 31, 2019 Non-life Run-off Atrium StarStone Other Total Non-life Run-off Atrium StarStone Other Total Gross premiums written $ 3,484 $ 51,105 $ 26,560 $ 10,204 $ 91,353 $ (284) $
Slide 19: Results by Segment - Year to Date
| enstargroup.com 19 Results by Segment - Year to Date Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Non-life Run-Off Atrium StarStone Other Total Non-life Run-Off Atrium StarStone Other Total Gross premiums written $ 5,191 $ 206,656 $ 326,695 $ 13,441 $ 551,983 $ (25,0