Endurance Specialty Holdings Ltd
Endurance Specialty — Merger or Acquisition (October 2016)
17 slides from Endurance Specialty's merger presentation, Oct 12, 2016
Slide 1: Acquisition of Endurance Specialty Holdings
October 7, 2016 Acquisition of Endurance Specialty Holdings
Slide 2: Agenda
1. Transaction Highlights 2. Strategic Rationale 3. About Endurance 4. Summary
Slide 3: Transaction Highlights
1. Transaction Highlights Transaction Highlights n Entered into a definitive agreement to acquire 100% of the outstanding ordinary shares of Endurance Specialty Holdings Ltd n Unanimously recommended by the Board of Endurance n Total consideration: $6,304mn, US$93 per share - 1.36x book value per sh
Slide 4: 2. Strategic Rationale
SS 1. Transaction Highlights 2. Strategic Rationale 3. About Endurance 4. Summary HOLDINGS
Slide 5: Establishing a truly integrated global insurance business platform
2. Strategic rationale Establishing a truly integrated global insurance business platform u By incorporating Endurance with our existing global operations, as well as considering to establish an International Holding Company to realize further growth together as group members Governance Structure fo
Slide 6: Net Premiums and Net Income (Pro-forma)
2. Strategic rationale ＜ Net Premiums and Net Income (Pro-forma, simple sum of SOMPO HD and Endurance for FY2015 actual) ＞ SOMPO + Endurance SOMPO Endurance Net Premiums JPY 2,749.4 bn JPY 2,552.2 bn JPY 197.2 bn （ Overseas Business ） JPY 489.8 bn (18%) JPY 292.6 bn (11%) - Adjusted consolidated pro
Slide 7: Combination of our strengths
2. Strategic rationale Combination of our strengths u Mutually utilize strengths in underwriting, and pursue streamlining of resources Leveraging underwriting knowhow Utilize global network • Offer Endurance’s products to customers of SOMPO Holdings globally, including Japan Optimize resources
Slide 8: 3. About Endurance
SS 1. Transaction Highlights 2. Strategic Rationale 3. About Endurance 4. Summary HOLDINGS
Slide 9: Endurance Specialty Holdings Overview
Gross Premium $3,321mn Consolidated Net Income $344mn Market Cap $4,263mn S&P A Moody’s A2 A.M. Best A 3. About Endurance Endurance Specialty Holdings Overview p Founded: 2001 p Headquarters: Bermuda (listed on the NYSE) p Representative (Chairman and CEO): John Charman p Number of Employees *1 : 1,
Slide 10: Endurance Specialty Holdings Strengths
3. About Endurance Endurance Specialty Holdings u Specialty insurance group with experienced management and underwriting excellence n High growth profile and strong underwriting capabilities • Proven high growth driven by experienced underwriters • Strong expertise in areas such as D&O and Agricultu
Slide 11: Business Portfolio
US 64% Bermuda 24% Others 12% 3. About Endurance Business Portfolio u Business portfolio balanced in both insurance and reinsurance u Recently focusing on specialty business in the US and primary underwriting in the UK Breakdown of gross premiums (FY2015) Insurance $2.1bn (63%) Reinsurance $1.2bn (3
Slide 12: Gross Premiums and Combined Ratio
Loss Ratio Insurance 3. About Endurance Gross Premiums and Combined Ratio u Achieved strong growth of gross premiums of 7.1%. *1 mainly in primary insurance, and kept improving trend of combined ratio of 90.2% *1 Historical Combined Ratio Historical Gross Premiums ($mn) CAGR：＋7.1％ Expense Ratio Rein
Slide 13: 4. Summary
SS 1. Transaction Highlights 2. Strategic Rationale 3. About Endurance 4. Summary HOLDINGS
Slide 14: Summary: Key objectives
4. Summary Key objectives • To establish a truly integrated global insurance business platform with Endurance and significantly accelerate the growth of our international business by leveraging their risk management expertise and underwriting capabilities • To acquire a business platform in the US i
Slide 15: Acquisition of Endurance Specialty Holdings
October 7, 2016 Acquisition of Endurance Specialty Holdings
Slide 16: Sompo Holdings, Inc. Overview
Gross Premium JPY 2,489bil ( c.a. $24.1bn) Consolidated Net Income JPY 164bil (c.a. $1,592m) Market Cap JPY 1,231bil (c.a. $11.9bn) S&P A+ Moody’s A1 A.M. Best A+ Sompo Holdings, Inc. Overview p Founded: 1888 p Headquarters: Tokyo, Japan (listed on the TSE) p Representative (President and Chief Exec
Slide 17: Note Regarding Forward-looking Statements
Note Regarding Forward-looking Statements The forecasts included in this document are based on currently available information and certain assumptions that we believe reasonable. Accordingly, the actual results may differ materially from those projected herein depending on various factors. Sompo Hol
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