Pelagos Insurance Capital Limited · NYSE:PLGO
Pelagos Insurance Capital — Fidelis Insurance Holdings — Q1 2024 Earnings Presentation
25 slides from Pelagos Insurance Capital's earnings presentation, May 9, 2024
Slide 1: Investor Presentation
May 9, 2024 Investor Presentation Fidelis Insurance Group
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This document (including the documents incorporated herein) contains, and our officers and representatives may from time to time make (including on our related conference call), "forward-looking statements" which include all statements that do not
Slide 3: Highlights: Fidelis Insurance Group at a Glance
Highlights A leading global specialty insurer, leveraging strategic partnerships to offer innovative and tailored insurance solutions 3 Note: (1) Results for the quarter ended March 31, 2024, and market data per S&P Capital IQ as of 05/01/2024. (2) Full year 2023 Operating ROAE is a non-US GAAP fina
Slide 4: Fidelis Insurance Group: Strategic Objectives
Fidelis Insurance Group: Strategic Objectives 4 Expanding our premium volume and capital base to capitalize on attractive opportunities in a favorable market environment Be recognized as a thought leader and global leader in specialty insurance Serve as lead underwriter across business lines C
Slide 5: Fidelis Insurance Group: Vision & Values
Fidelis Insurance Group: Vision & Values Employee Values We foster an inclusive and community orientated culture which recognizes that strength lies in unity and a shared sense of purpose among all stakeholders. We recognize that our purpose is to create tangible benefit for customers, shareholders
Slide 6: Strategic & Financial Overview
Strategic & Financial Overview
Slide 7: Why Invest in Fidelis Insurance Group
Why Invest in Fidelis Insurance Group 7 High quality book of specialty insurance business that creates value through the cycle by delivering consistent returns to shareholders High quality, mature, and well positioned specialty insurance portfolio with historical best-in-class performance Strong pre
Slide 8: Long-Term Shareholder Value Creation Framework
Long-Term Shareholder Value Creation Framework 8 Capital Management 13-15%(1) targeted through the cycle Underwriting Profitability Investment Returns Mid to High 80s%(1) Combined Ratio 4-5%(1) Embedded portfolio yield + new money rate ■ Allocating capital into attractive underwriting opportunities
Slide 9: A High Quality, Mature, and Well-Positioned Portfolio
Property Reinsurance 17% Other Bespoke 7% Credit & Political Risk 12% Specialty Other 2% Property 3%Energy 4% Aviation & Aerospace 10% Marine 19% Property D&F 25% $3.8 Billion A High Quality, Mature, and Well-Positioned Portfolio Gross Premiums Written (for the 12 months ended March 31, 2024) SPECIA
Slide 10: Driving Strong Premium and BVPS Growth
Driving Strong Premium and BVPS Growth $16.24 $21.22 YE 2022 Q1 2024 GPW ($bn) $3.0 $3.8 FY 2022 TTM Q1 2024 +27% +31% 10 Note: 1) Gross Premiums Written trailing twelve months (“TTM”) as of March 31, 2024. 2) As of the Separation Transactions on January 3, 2023. (2) GPW ($bn) Book Value Per Diluted
Slide 11: Delivering Market-leading Combined Ratios
Delivering Market-leading Combined Ratios 11 Combined Ratio (2021-2023) Note: 1) Peer average for 2021 and 2022 is calculated from peer group including Axis, Everest, Conduit, Markel, W.R. Berkley, Beazley, Lancashire and Hamilton. 2) Peer average for 2023 is calculated from peer group including Axi
Slide 12: Diversified Investment Portfolio
1% Other Investments 44% Corporates(1) 18% US Treasuries 5% Agency MBS Diversified Investment Portfolio <1% BB 11% BBB 39% A 38% AA 12% AAA 12 $3.3bn Fixed Income Portfolio 2.2yrs Duration AA- Average Credit Quality ~89% Rated A- or Better $4.2bn Total Cash and Investments 39% Cash and US Government
Slide 13: A Robust Capital Position and Disciplined Approach to Capital Allocation
A Robust Capital Position and Disciplined Approach to Capital Allocation 13 Capital Strength and Balance Sheet Scale ■ Committed to proactively managing and allocating capital to maintain financial strength and drive profitable underwriting ■ Total long-term debt and preference securities of $507 mi
Slide 14: Allan Decleir Group CFO & Director 35+ Years of Experience Hannah Greenwood Chief of
Allan Decleir Group CFO & Director 35+ Years of Experience Hannah Greenwood Chief of Staff 10+ Years of Experience • Platinum Underwriters • EY • Ardonagh Group • Ed • Lloyd’s Dan Burrows Group CEO & Director 35+ Years of Experience Denise Brown-Branch Group COO 25+ Years of Experience Warrick Beave
Slide 15: Underwriting Platform Facilitates Reliable Access to Attractive Risk
Underwriting Platform Facilitates Reliable Access to Attractive Risk 15 Rolling 10-year agreement ensures long-term continuity and access to The Fidelis Partnership underwriting Long-term strategic partnership with The Fidelis Partnership creates significant benefits FIHL’s Chief Underwriting Office
Slide 16: Well-Positioned to Deliver Sustainable Profitable Growth
Well-Positioned to Deliver Sustainable Profitable Growth 16Note: 1) This slide contains forward looking statements covered by the PSLRA. See Safe Harbor Statement on Slide 2. Targeting delivery of Operating ROAE of 14-16%(1) in 2024 Attractive Pipeline Underwriting Profitability at Scale Capital Man
Slide 17: Q1 2024 Financial Results & Segment Overviews
Q1 2024 Financial Results & Segment Overviews
Slide 18: Key Takeaways: 2024 First Quarter Highlights
Key Takeaways 2024 First Quarter Highlights 18 Note: 1) $15.64 Diluted EPS for Q1 2023 due to the separation transaction that occurred on January 3, 2023, when a number of separation and reorganization transactions occurred to create two distinct holding companies and businesses: FIHL and MGU HoldCo
Slide 19: Specialty Overview
Specialty Overview 19 ■ Portfolio of tailored risks across traditional specialty business lines including Aviation and Aerospace, Energy, Marine, Property and Property Direct & Facultative (“D&F”). ■ ‘Hard’ market conditions following years of compound rate increases across multiple business lines w
Slide 20: Bespoke Overview
Bespoke Overview 20 ■ Focused on highly tailored, innovative and specialized products, where the buying motivation is often driven by regulatory capital relief, capital efficiency or transaction facilitation versus more traditional drivers of insurance needs. ■ Portfolio includes policies covering C
Slide 21: Reinsurance Overview
Reinsurance Overview 21 ■ Focused on a strategically selected property catastrophe book, optimized to reflect our view of risk allowing Fidelis Insurance Group to manage exposures and minimize volatility. ■ RPI (2) of 118% at Q1 2024, driven by 1/1 renewals ■ Capacity deployed opportunistically on c
Slide 22: Appendix
_ Appendix
Slide 23: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 23
Slide 24: Non-GAAP Financial Measures Definitions
This Presentation includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including operating net income, operating EPS, operating return on average common equity, and therefore are non-U.S. GAAP financial measures.
Slide 25: Investor Inquiries
Investor Inquiries: Miranda Hunter (441) 279 2561 miranda.hunter@fidelisinsurance.com
Fidelis Insurance Holdings — Q1 2024 Earnings Presentation on 6ix