Enstar Group Limited · OTC:ESGOF
Enstar — Q2 2021 Earnings Presentation
20 slides from Enstar's earnings presentation, Aug 5, 2021
Slide 1: Investor Financial Supplement June 30, 2021
enstargroup.com ENSTAR GROUP LIMITED Investor Financial Supplement June 30, 2021
Slide 2: Table of Contents
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 5 Recent Transactions 6 Book Value Per Share 7 Book Value & Share Price Performance 8 Summary Balance Sheets 9 Summary Earnings Statements 10 Earnings Per Share 11 Non-GAAP Operating Income 12 Reserve/Claims Savings
Slide 3: Explanatory Notes
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 international locations. A mar
Slide 4: Explanatory Notes (continued)
4 Explanatory Notes (continued) Reserve/Claims Savings - Non-GAAP Reserve/Claims Savings is a non-GAAP measure calculated using components of amounts determined in accordance with U.S. GAAP for our Run-off segment. Reserve/Claims Savings is calculated by adding (i) the reduction (increase) in estima
Slide 5: Financial Highlights
5 Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Key Earnings Metrics Net earnings attributable to Enstar ordinary shareholders $ 377,326 $ 798,553 $ 560,523 $ 281,732 Non-GAAP operating income attributable to Enstar ordinary shareholders (1) $ 290,540 $
Slide 6: Recent Transactions
| enstargroup.com 6 Recent Transactions 2020 Completed Transactions Date Completed Total Assets Assumed Deferred Charge Asset (1) Total Assets from Transactions Total Liabilities Assumed Net Fair Value Adjustment (2) Total Liabilities from Transactions Primary Nature of Business (in thousands of U.S
Slide 7: Book Value Per Share
| enstargroup.com 7 Book Value Per Share June 30, 2021 December 31, 2020 Numerator: Total Enstar shareholder's equity $ 7,187,308 $ 6,674,395 Less: Series D and E preferred shares 510,000 510,000 Total Enstar ordinary shareholders' equity (A) 6,677,308 6,164,395 Proceeds from assumed conversion of w
Slide 8: Book Value & Share Price Performance
| enstargroup.com 8 Book Value & Share Price Performance (1) Source: S&P Market Intelligence (2) Refer to the explanatory notes on page 4 for further details. See also page 7 for a reconciliation of fully diluted book value per share to pro forma fully diluted book value per share. Comparison of 10
Slide 9: Summary Balance Sheets
| enstargroup.com 9 Summary Balance Sheets June 30, 2021 December 31, 2020 ASSETS Short-term and fixed maturity investments, trading $ 4,108,190 $ 4,600,021 Short-term and fixed maturity investments, AFS 5,576,511 3,658,895 Funds held - directly managed 1,028,503 1,074,890 Other investments, includi
Slide 10: Summary Earnings Statements
| enstargroup.com 10 Summary Earnings Statements Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 INCOME Net premiums earned $ 59,644 $ 142,871 $ 152,520 $ 302,222 Fees and commission income 8,274 10,010 17,872 17,538 Net investment income (1) 76,147 94,443
Slide 11: Earnings Per Share
| enstargroup.com 11 Earnings Per Share Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Earnings attributable to Enstar ordinary shareholders: Net earnings from continuing operations (1) $ 377,326 $ 799,232 $ 560,523 $ 283,632 Net loss from discontinued operation
Slide 12: Non-GAAP Operating Income
| enstargroup.com 12 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 13: Reserve/Claims Savings
| enstargroup.com 13 Reserve/Claims Savings (1) Refer to the corresponding note to our consolidated financial statements included within Item 1 of our Quarterly Report on Form 10-Q for the period ended June 30, 2021 for further details. (2) Non-GAAP financial measure, refer to the explanatory notes
Slide 14: Investment Composition - GAAP
| enstargroup.com 14 June 30, 2021 December 31, 2020 Short-term and fixed maturity investments, trading and AFS and funds held - directly managed U.S. government & agency $ 789,439 3.9 % $ 951,048 5.5 % U.K. government 41,696 0.2 % 51,082 0.3 % Other government 480,279 2.4 % 502,153 2.9 % Corporate
Slide 15: Investment Performance - GAAP
| enstargroup.com 15 Investment Performance - GAAP Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net investment income: Fixed income securities (1) $ 86,501 $ 87,656 $ 138,701 $ 150,659 Cash and restricted cash (379) 717 (467) 2,867 Other investments, including equities 1
Slide 16: Investment Composition - Non-GAAP
| enstargroup.com 16 Composition of investable assets June 30, 2021 December 31, 2020 Fixed maturities $ 10,703,957 53.1 % $ 9,319,179 54.0 % Equities 885,478 4.4 % 830,600 4.8 % Bond/loan funds 846,442 4.2 % 763,140 4.4 % Hedge funds 2,292,842 11.4 % 2,638,339 15.3 % Private equities 387,284 1.9 %
Slide 17: Investment Composition - Non-GAAP Reconciliation
17 June 30, 2021 December 31, 2020 Equities - GAAP $ 1,158,219 $ 846,795 Less: Exchange traded funds backed by fixed income securities (181,642) (156,362) Less: Bond fund held in equity format (60,911) (54,248) Less: CLO equity in equity format (31,929) — Less: Private debt in equity format (11,975)
Slide 18: Capital Position & Credit Ratings
| enstargroup.com 18 Capital position June 30, 2021 December 31, 2020 Change Ordinary shareholders' equity $ 6,677,308 $ 6,164,395 $ 512,913 Series D and E preferred shares 510,000 510,000 — Total Enstar shareholders' equity (A) 7,187,308 6,674,395 512,913 Noncontrolling interest 12,635 13,609 (974)
Slide 19: Consolidated Results by Segment - Quarter to Date
19 Consolidated Results by Segment - Quarter to Date Three Months Ended June 30, 2021 June 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 42,404 $ — $ 17,240 $ — $ 59,644 $
Slide 20: Consolidated Results by Segment - Year to Date
20 Consolidated Results by Segment - Year to Date Six Months Ended June 30, 2021 June 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 115,240 $ — $ 37,280 $ — $ 152,520 $ 26,