Enstar Group Limited · OTC:ESGOF
Enstar — H1 2022 Earnings Presentation
19 slides from Enstar's earnings presentation, Aug 9, 2022
Slide 1: Mid-Year Review August 2022: Enstar Group Overview
Enstargroup.com Mid-Year Review August 2022 Enstar Group Overview Realising Value
Slide 2: Information Regarding Forward-Looking Statements
Property of Enstar Group – Not for Distribution 2enstargroup.com INFORMATION REGARDING FORWARD-LOOKING STATEMENTS This presentation, and oral statements made with respect to information contained in this presentation, may include certain forward-looking statements regarding our views with respect to
Slide 3: Leading Global Provider of Run-off Solutions
Property of Enstar Group – Not for Distribution 3enstargroup.com Full suite of capital release solutions designed to create shareholder value LEADING GLOBAL PROVIDER OF RUN-OFF SOLUTIONS Deliver Capital Release and Risk Management Solutions Industry founder and largest standalone provider Generate P
Slide 4: Key Highlights
Property of Enstar Group – Not for Distribution 4enstargroup.com KEY HIGHLIGHTS Leading global insurance group with a proven record of consistently acquiring and sourcing run-off business during 29+ year history Well-positioned for long-term profitability across insurance cycles Competitive advantag
Slide 5: Run-off Focused Diversified Business: Best-in-Class
Property of Enstar Group – Not for Distribution 5enstargroup.com Run-off Focused Diversified Business Catalina Riverstone Marco Premia Swiss Re NICO Longevity (>20yrs in Operation) Presence in Global Run- off Markets Experience in All Types of Run-off Transactions Publicly Traded Deals Announced Sin
Slide 6: Financial Highlights
Property of Enstar Group – Not for Distribution 6enstargroup.com FINANCIAL HIGHLIGHTS Total Cash & Investments Capital Redundancy at S&P2 Total Insurance Liabilities1 Net Loss Total Assets Total Shareholders’ Equity $22.1bn $11.4bn $284.72 1$22.1bn 2.1bn 6.8% Core Fixed Income3 1. Includes losses an
Slide 7: Consistent Economic Model
Property of Enstar Group – Not for Distribution 7enstargroup.com CONSISTENT ECONOMIC MODEL Redeploy Capital Enstar Run-off Business Model Leverage our industry relations and position to source new business opportunities Acquire New Business Redeploy Capital Apply our claims management strategies to
Slide 8: Return on Equity Components
Property of Enstar Group – Not for Distribution 8enstargroup.com RETURN ON EQUITY COMPONENTS Generating attractive returns 1. TIR and RLE leverage factors are calculated as average investable assets and average net loss reserves, respectively, for the six months ended June 30, 2022, divided by openi
Slide 9: A Growing Balance Sheet
enstargroup.com A GROWING BALANCE SHEET Investable Assets ($bn) Net Loss Reserves ($bn) $5.4 $7.3 $7.7 $8.5 $11.6 2017 2018 2019 2020 2021 $10.1 $12.5 $14.1 $17.3 $21.7 2017 2018 2019 2020 2021 A platform for delivering balanced and sustainable growth through investable assets and reserves
Slide 10: Experts in Run-off Management
Property of Enstar Group – Not for Distribution 10enstargroup.com 1 Excludes unallocated loss and loss adjustment expenses (“ULAE”) of $508 million as of June 30, 2022. EXPERTS IN RUN-OFF MANAGEMENT Utilize effective claims management & commutation capabilities and strategies to settle liabilities a
Slide 11: Robust Transaction Pipeline
Property of Enstar Group – Not for Distribution 11enstargroup.com ROBUST TRANSACTION PIPELINE Each opportunity diligently analyzed to drive value for shareholders Data from January 2020 – June 30, 2022 1. Excludes Enhanzed Re. 161opportunities reviewed $52.8bn of reserves 13 1 deals completed $7.3bn
Slide 12: Large and Growing Run-off Market
Property of Enstar Group – Not for Distribution 12enstargroup.com LARGE AND GROWING RUN-OFF MARKET P&C Rates Continue to Strengthen for Primary Insurers Major Loss Events Including Recent CATs and COVID-19 Increased Consolidation Business Transfer Legislation Solvency II & Capital Efficiency Reserve
Slide 13: Capacity for Growth: Significant Liquidity to Support Growth
Property of Enstar Group – Not for Distribution 13enstargroup.com Significant Liquidity to Support Growth • $1.1bn of cash and cash equivalents • $600m of unused revolving credit facility capacity Well-Capitalized with Moderate Leverage • 28.9% financial leverage; within 25% - 30% target • FY21 Solv
Slide 14: History of Enhancing Book Value
Property of Enstar Group – Not for Distribution 14enstargroup.com HISTORY OF ENHANCING BOOK VALUE 29+ year history operating in run-off space 113 total acquisitive transactions completed to date 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CUMULATIVE BOOK VALUE SINCE 2010 8% NASDAQ In
Slide 15: Management Well-Aligned with Shareholders
Property of Enstar Group – Not for Distribution 15enstargroup.com 25 yearsAverage Industry Experience: 270+ yearsCollective Industry Experience: MANAGEMENT WELL-ALIGNED WITH SHAREHOLDERS Paul O’Shea President, Co-founder Years at Enstar: 27 Industry Experience: 35+ years Age: 64 Dominic Silvester CE
Slide 16: Key Highlights
Property of Enstar Group – Not for Distribution 16enstargroup.com KEY HIGHLIGHTS Leading global insurance group with a proven record of consistently acquiring and sourcing run-off business during 29+ year history Well-positioned for long-term profitability across insurance cycles Competitive advanta
Slide 17: Appendix
APPENDIX Property of Enstar Group – Not for Distribution 17enstargroup.com
Slide 18: Financial Data: Summary Income Statement
enstargroup.com Property of Enstar Group – Not for Distribution 18 $ millions Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Net premiums earned $ 48 $ 152 Net investment income and net realized and unrealized (losses) gains (861) 523 Other income 37 16 Net gain on sales of subsidiari
Slide 19: Financial Data: Summary Balance Sheet
enstargroup.com Property of Enstar Group – Not for Distribution 19 FINANCIAL DATA Summary Balance Sheet $ millions June 30, 2022 December 31, 2021 Assets Investable assets $20,869 $21,708 Reinsurance balances recoverable 1,275 1,517 Deferred charge assets 286 371 Other 839 833 Total Assets 23,269 24