Enstar Group Limited · OTC:ESGOF
Enstar — Q1 2023 Earnings Presentation
16 slides from Enstar's earnings presentation, May 4, 2023
Slide 1: Investor Financial Supplement March 31, 2023
enstargroup.com ENSTAR GROUP LIMITED Investor Financial Supplement March 31, 2023
Slide 2: Table of Contents
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 5 Consolidated Results by Segment 6 Capital Position & Credit Ratings 8 Non-GAAP Measures 9 Reconciliation to Adjusted Book Value per Share 11 Reconciliation to Adjusted Return on Equity 12 Reconciliation to Adjusted
Slide 3: Explanatory Notes
| enstargroup.com 3 Explanatory Notes About Enstar Enstar is a NASDAQ-listed leading global (re)insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe and Australia. A market leader
Slide 4: Explanatory Notes (continued)
4 Explanatory Notes (continued) Investment Composition In certain instances, U.S. GAAP requires, in part, that invested assets be classified based upon the legal form of the investment which may not correspond to management’s view of the underlying economic exposure. For example: 1. Enstar has certa
Slide 5: Financial Highlights: Key Earnings Metrics
| enstargroup.com 5 Three Months Ended March 31, 2023 March 31, 2022 Key Earnings Metrics ROE 9.5 % (4.6) % Annualized ROE 38.0 % (18.4) % Adjusted ROE (1) 6.8 % (1.1) % Annualized adjusted ROE (1) 27.3 % (4.4) % Basic net earnings (loss) per share $ 24.97 $ (15.19) Diluted net earnings (loss) per s
Slide 6: Consolidated Results by Segment - Q1 2023
| enstargroup.com 6 Consolidated Results by Segment - Q1 2023 Three Months Ended March 31, 2023 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 8 $ — $ — $ — $ — $ 8 Net investment income — — 156 — — 156 Net realized losses — — (36) — —
Slide 7: Consolidated Results by Segment - Q1 2022
| enstargroup.com 7 Consolidated Results by Segment - Q1 2022 Three Months Ended March 31, 2022 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 17 $ 14 $ — $ 3 $ — $ 34 Net investment income — — 76 4 — 80 Net realized losses — — (37) —
Slide 8: Capital Position & Credit Ratings
| enstargroup.com 8 Capital Position & Credit Ratings Credit ratings (1) Standard and Poor’s Fitch Ratings Long-term issuer BBB (Outlook: Positive) BBB+ (Outlook: Stable) 2029 Senior Notes BBB BBB 2031 Senior Notes BBB- BBB 2040 and 2042 Junior Subordinated Notes BB+ BBB- Series D and E Preferred Sh
Slide 9: Non-GAAP Measures
9 Non-GAAP Measures Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Adjusted book value per ordinary share Total Enstar ordinary shareholders' equity Divided by Number of ordinary shares outstanding, adjusted for: -the ultimate effect of any dilutive securities on the numbe
Slide 10: Non-GAAP Measures (continued)
| enstargroup.com 10 Non-GAAP Measures (continued) Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Adjusted run-off liability earnings (%) Adjusted PPD divided by average adjusted net loss reserves Calculating the RLE as a percentage of our adjusted average net loss reserve
Slide 11: Reconciliation to Adjusted Book Value Per Share
| enstargroup.com 11 Reconciliation to Adjusted Book Value Per Share As of March 31, 2023 December 31, 2022 Equity (1) Ordinary Shares Per Share Amount Equity (1) (2) Ordinary Shares Per Share Amount Book value per ordinary share $ 4,367 15,445,128 $ 282.74 $ 4,464 17,022,420 $ 262.24 Non-GAAP adjus
Slide 12: Reconciliation to Adjusted Return on Equity - Q1 2023 and 2022
| enstargroup.com 12 Reconciliation to Adjusted Return on Equity - Q1 2023 and 2022 Three Months Ended March 31, 2023 2022 Net (loss) earnings (1) Opening equity (1) (2) (Adj) ROE Annualized (Adj) ROE Net (loss) earnings (1) Opening equity (1) (Adj) ROE Annualized (Adj) ROE Net earnings (loss)/Openi
Slide 13: Reconciliation to Adjusted Run-off Liability Earnings
| enstargroup.com 13 Reconciliation to Adjusted Run-off Liability Earnings - QTD 2023 and 2022 Three Months Ended As of Three Months Ended March 31, 2023 March 31, 2023 December 31, 2022 March 31, 2023 March 31, 2023 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves RLE % Annua
Slide 14: Reconciliation to Adjusted Total Investment Return
| enstargroup.com 14 Reconciliation to Adjusted Total Investment Return Three Months Ended March 31, 2023 2022 Investment results Net investment income $ 156 $ 80 Net realized losses (36) (37) Net unrealized gains (losses) 224 (381) Earnings from equity method investments 11 31 Other comprehensive i
Slide 15: Investment Composition - Other Investments
| enstargroup.com 15 Investment Composition - March 31, 2023 Other Investments Equities Cash(2) March 31, 2023 Hedge Funds Fixed income funds Equity funds Private equity funds CLO equities CLO equity funds Private credit funds Real estate debt fund Other(1) Publicly traded equities Exchange- traded
Slide 16: Investment Composition - December 31, 2022
| enstargroup.com 16 Investment Composition - December 31, 2022 Other Investments Equities December 31, 2022 Hedge Funds Fixed income funds Equity funds Private equity funds CLO equities CLO equity funds Private credit funds Real estate debt fund Other(1) Publicly traded equities Exchange- traded fu