Aventus Capital Inc. · TSXV:AVTS
Aventus Capital — The Westaim — Q1 2021 Earnings Presentation
28 slides from Aventus Capital's earnings presentation, May 20, 2021
Slide 1: Q1 2021 Investor Presentation
Q1 2021 Investor Presentation May 20, 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, its funds and affiliates: Returns shown are unaudited. Past performance is not indicative or a reliable indicator of future performance. Actual results may vary. The information set forth her
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: Q1 2021 Quarterly Operating Highlights
Q1 2021 Quarterly Operating Highlights Westaim reports Q1 2021 earnings and growth across all businesses • Skyward Specialty’s Q1 Net Income was $13.6 million compared to Q1 2020 Net Loss of $48.1 million (Q1 2020 excluding unusual items – Net Loss of $13.8 million) • Continued improvement in underw
Slide 7: Westaim Summary Quarterly Operating Results
Westaim Summary Quarterly Operating Results • GAAP profit and comprehensive income in Q1 2021 was Operating result Q1 2021 Q4 2020 Q1 2020 $9.1 million ($0.06 per share) compared to a GAAP loss and comprehensive loss of $14.5 million (adjusted profit Income from investment in Arena FINCOs and ASOF $
Slide 8: Westaim Summary Statement of Financial Position
Westaim Summary Statement of Financial Position • Book value per share increased US$0.07 Q1 2021 or As at March 31, 2021 December 31, 2020 3.1% over Q4 2020 Assets Cash $8.6 $8.7 • In Q1 2021, the fair value of investments increased Income tax receivable 0.1 0.1 $10.1 million, which was $12.1 millio
Slide 9: Westaim Book Value per Share: Three months ended March 31, 2021
Westaim Book Value per Share: Three months ended March 31, 2021 $0.01 ($0.02) $0.05 $2.31 $0.03 $2.24 BVPS Income from Skyward Income from Arena FINCOs Income from Arena Westaim holding company BVPS December 31, 2020 Specialty and ASOF Investors net expenses March 31, 2021 Any terms not defined in t
Slide 10: Company Update: Skyward Specialty Insurance
SKYWARD SPECIALTY INSURANCE COMPANY UPDATE
Slide 11: Skyward Specialty at a Glance
SKYWARD SPECIALTY AT A GLANCE Business Overview Select Financial Metrics • A private, US-based specialty property and casualty insurer that (US$ millions) Q1 2021 FY 2020(1) writes on both an admitted and non-admitted basis Select Income Statement Metrics • Strategy focuses on building defensible po
Slide 12: Summary Statements of Operations
SUMMARY STATEMENTS OF OPERATIONS Quarter-to-date Q1 2021 Q1 2020 Written Premium Growth • Skyward Specialty is focused on being a disciplined gross line underwriter, Gross written premium (GWP) $237.8 $232.9 Net written premium (NWP) 109.8 99.9 earning an underwriting profit on a gross and net basis
Slide 13: Summary Balance Sheets
SUMMARY BALANCE SHEETS As at March 31, 2021 December 31, 2020 • Adjusted stockholders’ equity increased to $414.8 or 2.3% from Q4 2020 reflecting income of $13.6 million partially offset by $4.4 million of unrealized losses on our fixed Investments $822.5 $764.8 income portfolio recorded in OCI Cash
Slide 14: Adjusted Stockholders' Equity: For the Three Months Ended March 31, 2021
ADJUSTED STOCKHOLDERS' EQUITY: FOR THE THREE MONTHS ENDED MARCH 31, 2021 (1) $12.2 ($1.6) ($3.6) $0.1 ($4.4) $414.8 $6.6 $405.5 Adjusted stockholders' Underwriting Income Net Investment Interest and Income Tax Expense Employee Share Unrealized Loss on Adjusted stockholders' equity Income Amortizatio
Slide 15: Conservative Investment Portfolio
CONSERVATIVE INVESTMENT PORTFOLIO 1% • The total portfolio of approximately $814 million ($823 million net of a $9 million payable for securities sold) is comprised of core fixed income and short-term investments, cash and cash equivalents, 27% common and preferred equities, and alternative investme
Slide 16: Seeing What's Possible
March 31, 2021 Seeing What’s Possible
Slide 17: About Arena Investors
About Arena 17 • Global originator and underwriter of proprietary investments ABOU T ARENA INV ESTORS seeking to produce consistent and uncorrelated returns • Institutional scale and experience with transactions sizes typically $2.2B between $5 million – $50 million, which avoids competition with As
Slide 18: Arena Investors – Well Positioned to Accelerate Growth
Arena Investors – Well Positioned to Accelerate Growth 18 • 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 • ~$2.75 billion
Slide 19: Q1 2021 Quarterly Result Highlights
Q1 2021 Quarterly Result Highlights 19 (dollars in millions) Q1 2021 Q4 2020 Q1 2020 Q1 2021 Results: • Net profit was $2.1 million for Q1 2021, compared to Recurring Income $2.8 million profit in Q4 2020 and a $1.5 million loss Management / Servicing Fees $ 6.4 $ 5.9 $ 5.0 in Q1 2020. Other Income
Slide 20: Arena Fully Diversified Strategy
Investment vehicles(1) 20 $2.2 B UNDER MANAGEMENT, $1.6 B DEPLOYED (1) ARENA FULLY DIVERSIFIED STRATEGY Permanent Capital (Arena FINCOs) EXCESS CAPACITY OPPORTUNITIES • Ar en a F in an c e $0.5 B , $0.2 B DEPLOYED • Ar en a O r ig in atio n $1.6 B , $1.4 B DEPLOYED Arena New Zealand Open-ended Everg
Slide 21: Arena Investors – Performance
Arena Investors – Performance(1) 21 Arena’s core investment strategy seeks to build a highly diversified and uncorrelated portfolio of investments. Consistent performance including stable performance during COVID-19. Since inception, Arena has also outperformed the LSTA Leveraged Loan 100 index on a
Slide 22: Arena Investors – Assets Under Management Through 3/31/2021
Arena Investors – Assets Under Management Through 3/31/2021(1) 22 $ 2,500 mm $130 $57 $2,167 $2,041 Arena Group’s assets $ 2,000 mm ($55) ($6) under management (including undrawn $ 1,500 mm commitments) grew $1,251 modestly over the first $1,024 quarter. $ 1,000 mm $760 From December 31, 2015 to Dec
Slide 23: 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 24: Arena
fs ARENA
Slide 25: Arena FINCOs: Summary of Operating Results
Arena FINCOs: Summary of Operating Results Q1 2021 Q4 2020 Q1 2020 • Proceeds from the bond offering continue to be Investment income $1.0 $0.2 $2.4 invested, with Arena FINCOs total investments Net gain (losses) on investments 9.1 3.5 (4.4) increasing 12% in the quarter from $180.3 million at Q4 20
Slide 26: Arena FINCOs: Summary of Net Assets
Arena FINCOs: Summary of Net Assets Fair Value March 31, 2021 December 31, 2020 • The Arena FINCOs were able to deploy Cash and cash equivalents $26.5 $21.4 Due from brokers, net (20.3) (5.5) cash to investments in the quarter, but the Investments: cash balance remained high at March 31, Corporate P
Slide 27: Arena FINCOs: Portfolio breakdown as at March 31, 2021
Arena FINCOs: Portfolio breakdown as at March 31, 2021 Equity / Other Debt Corporate REO / Securities 59% Private Credit Hard 27% 26% Assets (1) 41% Consumer Assets 7% Structured Finance Real Estate and Real 3% Estate Private Credit Commercial and 18% Industrial Assets 19% Arena FINCOs held 221 posi
Slide 28: The Westaim Corporation Contact Details
The Westaim Corporation 70 York Street, Suite 1700 Toronto, Ontario Canada M5J 1S9 www.westaim.com [email protected]