Pelagos Insurance Capital Limited · NYSE:PLGO
Pelagos Insurance Capital — Fidelis Insurance Holdings — Q3 2024 Earnings Presentation
29 slides from Pelagos Insurance Capital's earnings presentation, Nov 12, 2024
Slide 1: Investor Presentation Fidelis Insurance Group
September 30, 2024 Investor Presentation Fidelis Insurance Group
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation, the related press release, posts on our website and LinkedIn and the related discussion and analysis relating to our financial results for the three and nine months ended September 30, 2024 contain, and our officers and represen
Slide 3: Safe Harbor Statement (Continued)
Safe Harbor Statement 3 Cautionary Note Regarding Forward-Looking Statements (Continued) • the suspension or revocation of our subsidiaries’ insurance licenses; • our potentially being subject to certain adverse tax or regulatory consequences in the U.S., U.K. or Bermuda; • risks associated with our
Slide 4: Highlights
Highlights A leading global specialty insurer, leveraging strategic partnerships to offer innovative and tailored insurance solutions 4 Note: 1) Results as at September 30, 2024, and market data per S&P Capital IQ as of November 8, 2024. Annual yield is the annualized Q3 2024 dividend divided by $18
Slide 5: Building on a Strong Foundation for Scale and Profitable Growth
Building on a Strong Foundation for Scale and Profitable Growth 5 Note: Peer set includes Beazley (“BEZ”), Lancashire (“LRE”), Conduit (“CRE”), Hamilton (“HG”), Everest (“EG”), Axis (“AXS”), Berkley (“WRB”), and Markel (“MKL”). 1) Calculated as the sum of losses and loss adjustment expenses, policy
Slide 6: Long-Term Shareholder Value Creation Framework
Long-Term Shareholder Value Creation Framework 6 Capital Management 13-15%(1) Long-Term Target Underwriting Profitability Investment Returns Mid to High 80s%(1) Long-Term Target Combined Ratio ■ Allocating capital into attractive underwriting opportunities ■ Constantly reassessing our outwards reins
Slide 7: Why Invest in Fidelis Insurance Group
Why Invest in Fidelis Insurance Group 7 High quality book of specialty insurance business that creates long-term value by delivering returns to shareholders Note: 1) This slide contains forward looking statements covered by the PSLRA. See Safe Harbor Statement on Slides 2-3. High quality, mature, an
Slide 8: A Mature and Well-Positioned Portfolio
Property Reinsurance 19% Other Bespoke 8% Credit & Political Risk 11% Specialty Other 2% Energy 4%Property 5% Aviation & Aerospace 8% Marine 18% Property D&F 24% $4.2 Billion A Mature and Well-Positioned Portfolio Gross Premiums Written (for the 12 months ended September 30, 2024) SPECIALTY $2,612m
Slide 9: Driving Strong Premium and BVPS Growth
GPW ($bn) Book Value Per Diluted Common Share $16.24 $23.43 YE 2022 YE 2023 Q3 2024 $20.69 $3.0 FY 2022 FY 2023 TTM Q3 2024 $3.6 9 Note: 1) Gross Premiums Written trailing twelve months (“TTM”) as September 30, 2024. 2) As of the Separation Transactions on January 3, 2023. (2)(1) Driving Strong Prem
Slide 10: Key metrics versus peers
44.5% 31.9% FIHL Peer Average 38.9% 22.1% FIHL Peer Average 85.8% 100.2% Fidelis Peer Average 10 Source: Company financials. Note: 1) Key metrics include GPW CAGR, NPE CAGR, and Average Combined Ratio for 2018 through 2023; Peer set includes Beazley (“BEZ”), Lancashire (“LRE”), Conduit (“CRE”), Hami
Slide 11: Delivering Market-leading Combined Ratios vs. Peers
60.1% 64.7% 55.3% 62.7% 38.1% 61.8% 32.9% 35.4% 36.6% 33.4% 44.0% 32.0% 93.0% 100.1% 91.9% 96.1% 82.1% 93.8% Combined Ratio (2021-2023) 11 Note: 1) Peer average for 2021 and 2022 is calculated from peer group including Beazley (“BEZ”), Lancashire (“LRE”), Conduit (“CRE”), Hamilton (“HG”), Everest (“
Slide 12: 2024 Third Quarter Highlights
Key Q3 YTD Takeaways 2024 Third Quarter Highlights 12 Note: 1) Operating RoAE is a non-US GAAP financial measure and is calculated as operating net income divided by adjusted average common shareholders’ equity. See Appendix for reconciliation. 2) Operating EPS is a non-US GAAP financial measure and
Slide 13: 2024 Third Quarter Highlights by Segment
2024 Third Quarter Highlights by Segment 13 Specialty 53.6% $326.9 $398.4 Q3 2023 Q3 2024 Bespoke 25.1% Reinsurance 21.3% Note: 1) The Fidelis Partnership fees are not allocated to the segment level and policy acquisition costs as presented in the underwriting ratio are third party acquisition costs
Slide 14: Fixed Income Portfolio
Fixed Income Portfolio Credit QualityAsset Allocation 1% Other Investments 43% Corporates(1) 18% US Treasuries 6% Agency MBS(2) <1% BB 11% BBB 39% A 38% AA 12% AAA 14 $3.7bn Fixed Income Portfolio 2.7yrs Duration AA- Weighted-Average Credit Quality ~89% Rated A- or Better $4.7bn Total Cash and Inves
Slide 15: Strong Liquidity and Disciplined Capital Allocation
Strong Liquidity and Disciplined Capital Allocation $2,632.3 $58.4 $448.8 $3,139.5 Common Equity Preferred Equity Long-Term Debt Total Capital Capital Strength and Balance Sheet Scale 15 ■ Committed to proactively managing and allocating capital to maintain financial strength and drive profitable un
Slide 16: Favorable Prior Year Development and reserving framework
Reserve release Favorable Prior Year Development ($m) We employ a robust reserving methodology and set our reserves on a consistent basis over time Reserving Framework • Employ a robust reserve methodology and take a consistent approach to reserving over time • Avoid systematic and excessive over or
Slide 17: Underwriting Platform Facilitates Reliable Access to Attractive Risk
Underwriting Platform Facilitates Reliable Access to Attractive Risk 17 Rolling 10-year agreement ensures long-term continuity and access to underwriting by The Fidelis Partnership Long-term strategic partnership with The Fidelis Partnership creates significant benefits FIHL’s Chief Underwriting Off
Slide 18: Highly Experienced Management Team
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 CEO, UK 25+ Years of Experience Warrick Beaver
Slide 19: Strong Foundation for Profitable Growth
Strong Foundation for Profitable Growth 19 Note: 1) This slide contains forward looking statements covered by the PSLRA. See Safe Harbor Statement on Slides 2-3. Leading combined ratio compared to peers and efficient capital deployment Diversified book of business driving consistent, long-term profi
Slide 20: Appendix
FIDELIS | INSURANCE GROUP Appendix L
Slide 21: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights
Slide 22: Specialty Overview
Underwriting RatioGross Premiums Written Specialty Overview ■ The Specialty segment comprises a portfolio of tailored risks across specialty business lines including Aviation and Aerospace, Energy, Marine, Property, Property Direct & Facultative (“D&F”) and Other Specialty ■ Strong rating environmen
Slide 23: Bespoke Overview
Segment Highlights Underwriting RatioGross Premiums Written Bespoke Overview ■ The Bespoke segment business focuses primarily on highly tailored, innovative and specialized products, where the buying motivation is often driven by regulatory capital relief, capital efficiency or transaction facilitat
Slide 24: Reinsurance Overview
Reinsurance Overview ■ The Reinsurance segment consists of an actively managed, homogenous residential property catastrophe reinsurance book. The Reinsurance segment also includes a limited amount of property retrocession and multi-class asset reinsurance ■ We continue to actively shape our portfoli
Slide 25: Additional Partnership Details
Additional Partnership Details
Slide 26: Framework Agreement with The Fidelis Partnership
Framework Agreement with The Fidelis Partnership FIHL agrees Annual Plan with TFP Sets out terms of new business , risk appetites , outwards reinsurance requirements, capital and solvency requirements Mutual first access via Fidelis IG Right of First Refusal (ROFR) and TFP Right of First Offer (ROFO
Slide 27: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 27
Slide 28: Non-GAAP Financial Measures Reconciliation
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 29: FIDELI s |
FIDELI s | [nsvnanes GROUP
Fidelis Insurance Holdings — Q3 2024 Earnings Presentation on 6ix