Enstar Group Limited · OTC:ESGOF
Enstar — Q3 2020 Earnings Presentation
19 slides from Enstar's earnings presentation, Nov 6, 2020
Slide 1: Realising Value: Investor Financial Supplement September 30, 2020
Realising Value Enstar Group Limited Investor Financial Supplement September 30, 2020 ENSTARGROUP.COM
Slide 2: Table of Contents
Table of Contents Page Explanatory Notes 3 Financial Highlights 5 Book Value Per Share 6 Book Value and Share Price Performance 7 Summary Balance Sheets 8 Summary Earnings Statements 9 Earnings Per Share 10 Non-GAAP Operating Income 11 Non-life Run-off Reserve / Claims Savings 12 Investment Composit
Slide 3: Explanatory Notes
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 marke
Slide 4: Explanatory Notes (continued)
Explanatory Notes (continued) Investment Composition - Non-GAAP In certain instances, U.S. GAAP requirements result in classifications of our investment assets that may not correspond to management’s view of the underlying economic exposure of a particular investment. As such, we have prepared a non
Slide 5: Financial Highlights
Financial Highlights Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Key Earnings Metrics Net earnings attributable to Enstar ordinary shareholders $ 615,013 $ 117,743 $ 896,745 $ 708,336 Non-GAAP operating income attributable to Ensta
Slide 6: Book Value Per Share
Book Value Per Share September 30, 2020 December 31, 2019 Numerator: Total Enstar shareholder's equity $ 5,820,885 $ 4,842,183 Less: Series D and E preferred shares 510,000 510,000 Total Enstar ordinary shareholders' equity (A) 5,310,885 4,332,183 Proceeds from assumed conversion of warrants(1) 20,2
Slide 7: Book Value and Share Price Performance
Book Value and Share Price Performance Comparison of 10 Year Cumulative Total Return & Fully Diluted BVPS 400% 350% 300% 250% 200% 150% 100% 50% —% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD 2020 Enstar Fully Diluted BVPS ESGR Share Price (1) S&P 500 (1) S&P Insurance Index (1) (1) Source
Slide 8: Summary Balance Sheets
Summary Balance Sheets September 30, 2020 June 30, 2020 December 31, 2019 ASSETS Short-term and fixed maturity investments, trading $ 5,006,775 $ 5,375,373 $ 6,194,825 Short-term and fixed maturity investments, AFS 3,161,647 2,302,981 1,666,387 Funds held - directly managed 1,066,639 1,168,856 1,187
Slide 9: Summary Earnings Statements
Summary Earnings Statements Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 INCOME Net premiums earned $ 161,724 $ 175,802 $ 463,946 $ 618,711 Fees and commission income 10,787 6,437 28,325 18,931 Net investment income 72,130 81,502 24
Slide 10: Earnings Per Share
Earnings Per Share Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator: Earnings attributable to Enstar ordinary shareholders: Net earnings from continuing operations (1) $ 612,636 $ 113,074 $ 896,267 $ 701,234 Net earnings from discontinued operations (2)
Slide 11: Non-GAAP Operating Income
Non-GAAP Operating Income Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net earnings attributable to Enstar ordinary shareholders (A) $ 615,013 $ 117,743 $ 896,745 $ 708,336 Adjustments: Net realized and unrealized (gains) on fixed maturity investments and fund
Slide 12: Non-life Run-off Reserve / Claims Savings
Non-life Run-off Reserve / Claims Savings Three Months Ended Nine Months Ended September 30, September 30, FS Reference (1) 2020 2019 2020 2019 Reconciliation of reserve / claims savings to GAAP line items in the Non-life Run-off segment: Net incurred losses and LAE: Reduction (increase) in estimate
Slide 13: Investment Composition - GAAP
Investment Composition - GAAP September 30, 2020 December 31, 2019 Short-term and fixed maturity investments, trading and AFS and funds held - directly managed U.S. government & agency $ 789,630 4.9 % $ 696,077 4.9 % U.K. government 114,777 0.7 % 161,772 1.2 % Other government 490,447 3.1 % 702,856
Slide 14: Investment Performance - GAAP
Investment Performance - GAAP Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net investment income: Fixed income securities (1) $ 63,472 $ 67,045 $ 214,130 $ 210,278 Cash and restricted cash 678 10,038 3,546 12,041 Other investments, including equities 10,771 7,
Slide 15: Investment Composition - Non-GAAP
Investment Composition - Non-GAAP (1) Composition of investable assets September 30, 2020 December 31, 2019 Fixed maturities $ 9,222,623 57.8 % $ 9,034,557 64.2 % Equities 819,300 5.1 % 936,876 6.7 % Bond/loan funds 811,644 5.1 % 684,691 4.9 % Hedge funds 2,087,091 13.1 % 1,121,904 8.0 % Private equ
Slide 16: Investment Composition - Non-GAAP Reconciliation
Investment Composition - Non-GAAP Reconciliation (1) September 30, 2020 December 31, 2019 Equities - GAAP $ 653,159 $ 726,721 Less: Exchange traded funds backed by fixed income securities (78,182) (133,047) Less: Bond fund in equity format (49,431) (70,605) Plus: Equities held in fund format 290,129
Slide 17: Capital Position & Credit Ratings
Capital Position & Credit Ratings Capital position September 30, 2020 December 31, 2019 Change Ordinary shareholders' equity $ 5,310,885 $ 4,332,183 $ 978,702 Series D and E preferred shares 510,000 510,000 — Total Enstar shareholders' equity (A) 5,820,885 4,842,183 978,702 Noncontrolling interest 1
Slide 18: Results by Segment - Quarter to Date
Results by Segment - Quarter to Date Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Non-life Non-life Run-off Atrium StarStone Other Total Run-off Atrium StarStone Other Total Gross premiums written $ 3,535 $ 49,083 $ 58,566 $ 293 $ 111,477 $ 301 $ 48,746 $ 110,586 $ (2,
Slide 19: Results by Segment - Year to Date
Results by Segment - Year to Date Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Non-life Non-life Run-Off Atrium StarStone Other Total Run-Off Atrium StarStone Other Total Gross premiums written $ 1,707 $ 155,551 $ 300,135 $ 3,237 $ 460,630 $ (24,785) $ 146,519 $ 363,352