Enstar Group Limited · OTC:ESGOF
Enstar — Q3 2021 Earnings Presentation
22 slides from Enstar's earnings presentation, Nov 4, 2021
Slide 1: Investor Financial Supplement September 30, 2021
enstargroup.com ENSTAR GROUP LIMITED Investor Financial Supplement September 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) Non-GAAP Operating Income (Loss) Attributable to Enstar Ordinary Shareholders In addition to presenting net earnings (loss) attributable to Enstar ordinary shareholders and diluted earnings (loss) per ordinary share determined in accordance with U.S. GAAP, we believe
Slide 5: Financial Highlights
5 Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Key Earnings Metrics Net earnings (loss) attributable to Enstar ordinary shareholders $ (195,958) $ 615,013 $ 364,565 $ 896,745 Non-GAAP operating income (loss) attributable to Enstar o
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 Hannover Re August 6
Slide 7: Book Value Per Share
| enstargroup.com 7 Book Value Per Share September 30, 2021 December 31, 2020 Numerator: Total Enstar shareholder's equity $ 6,079,865 $ 6,674,395 Less: Series D and E preferred shares 510,000 510,000 Total Enstar ordinary shareholders' equity (A) 5,569,865 6,164,395 Proceeds from assumed conversion
Slide 8: Book Value & Share Price Performance
| enstargroup.com 8 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 YT
Slide 9: Summary Balance Sheets
| enstargroup.com 9 Summary Balance Sheets September 30, 2021 December 31, 2020 ASSETS Short-term and fixed maturity investments, trading $ 3,935,779 $ 4,600,021 Short-term and fixed maturity investments, AFS 5,460,737 3,658,895 Funds held - directly managed 3,056,392 1,074,890 Other investments, in
Slide 10: Summary Earnings Statements
| enstargroup.com 10 Summary Earnings Statements Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 INCOME Net premiums earned $ 51,594 $ 161,724 $ 204,114 $ 463,946 Fees and commission income 6,653 10,787 24,525 28,325 Net investment inc
Slide 11: Earnings Per Share
| enstargroup.com 11 Earnings Per Share Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Numerator: Earnings (loss) attributable to Enstar ordinary shareholders: Net earnings (loss) from continuing operations (1) $ (195,958) $ 612,636 $ 364,565 $ 896,267 Net earni
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 September 30, 2021 for further details. (2) Non-GAAP financial measure, refer to the explanatory n
Slide 14: Investment Composition - GAAP
| enstargroup.com 14 September 30, 2021 December 31, 2020 Short-term and fixed maturity investments, trading and AFS and funds held - directly managed U.S. government & agency $ 848,492 3.9 % $ 951,048 5.5 % U.K. government 35,988 0.2 % 51,082 0.3 % Other government 677,494 3.1 % 502,153 2.9 % Corpo
Slide 15: Investment Performance - GAAP
| enstargroup.com 15 Investment Performance - GAAP Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net investment income: Fixed income securities (1) $ 71,013 $ 63,472 $ 209,714 $ 214,130 Cash and restricted cash (546) 678 (1,013) 3,546 Other investments, includi
Slide 16: Investment Composition - Non-GAAP
| enstargroup.com 16 Composition of investable assets September 30, 2021 December 31, 2020 Fixed maturities $ 12,233,372 56.0 % $ 9,319,179 54.0 % Equities 865,853 4.0 % 830,600 4.8 % Bond/loan funds 1,650,426 7.6 % 763,140 4.4 % Hedge funds 663,105 3.0 % 2,638,339 15.3 % Private equities 464,728 2.
Slide 17: Investment Composition - Non-GAAP Reconciliation
17 September 30, 2021 December 31, 2020 Equities - GAAP $ 1,952,425 $ 846,795 Less: Exchange traded funds backed by fixed income securities (986,188) (156,362) Less: Bond fund held in equity format (66,257) (54,248) Less: CLO equity in equity format (31,147) — Less: Private debt in equity format (15
Slide 18: Capital Position & Credit Ratings
| enstargroup.com 18 Capital position September 30, 2021 December 31, 2020 Change Ordinary shareholders' equity $ 5,569,865 $ 6,164,395 $ (594,530) Series D and E preferred shares 510,000 510,000 — Total Enstar shareholders' equity (A) 6,079,865 6,674,395 (594,530) Noncontrolling interest 227,072 13
Slide 19: Consolidated Results by Segment - Quarter to Date
19 Consolidated Results by Segment - Quarter to Date Three Months Ended September 30, 2021 Run-off Enhanzed Re (1) Investments (1) Legacy Underwriting Corporate & Other (2) Total INCOME Net premiums earned $ 38,880 $ — $ — $ 12,714 $ — $ 51,594 Fees and commission income 6,653 — — — — 6,653 Net inve
Slide 20: Consolidated Results by Segment - Quarter to Date (2020)
20 Consolidated Results by Segment - Quarter to Date Three months ended September 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 17,476 $ — $ 144,248 $ — $ 161,724 Fees and commission income 3,637 — 7,150 — 10,787 Net investment income — 64,
Slide 21: Consolidated Results by Segment - Year to Date
21 Consolidated Results by Segment - Year to Date Nine Months Ended September 30, 2021 Run-off Enhanzed Re (1) Investments (1) Legacy Underwriting Corporate & Other (2) Total INCOME Net premiums earned $ 154,120 $ — $ — $ 49,994 $ — $ 204,114 Fees and commission income 24,525 — — — — 24,525 Net inve
Slide 22: Consolidated Results by Segment - Year to Date (2020)
22 Consolidated Results by Segment - Year to Date Nine Months Ended September 30, 2020 Run-off Investments Legacy Underwriting Corporate & Other (1) Total INCOME Net premiums earned $ 44,023 $ — $ 419,923 $ — $ 463,946 Fees and commission income 12,588 — 15,737 — 28,325 Net investment income — 215,2