Siriuspoint Ltd. · NYSE:SPNT
Siriuspoint — Third Point Reinsurance — KBW Insurance Conference 2015
29 slides from Siriuspoint's conference presentation, Sep 10, 2015
Slide 1: Investor Presentation
Investor Presentation SEPTEMBER 2015 For Information Purposes Only
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements and information in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “plan,” “intend,” “foresee,” “gui
Slide 3: Our Company
OUR COMPANY • Specialty property & casualty reinsurer based in Bermuda • A- (Excellent) financial strength rating from A.M. Best Company • Began operations in January 2012 and completed IPO in August 2013 • Investment portfolio managed by Third Point LLC • Total return focused – Flexible and opportu
Slide 4: Key Metrics
KEY METRICS 6 Months Ended Year Ended Year Ended Year Ended June 30, 2015 December 31, 2014 December 31, 2013 December 31, 2012 Diluted Book Value Per Share* $ 14.12 $ 13.55 $ 13.12 $ 10.89 Shareholders’ Equity $ 1.53 billion $ 1.45 billion $ 1.39 billion $ 0.87 billion Return on Beginning Sharehold
Slide 5: Total Return Business Model Designed to Deliver Superior Returns
TOTAL RETURN BUSINESS MODEL DESIGNED TO DELIVER SUPERIOR RETURNS Exceptional Resources + Optimal Deployment = Outstanding Results Experienced Underwriting Underwriting Profit Team Opportunity for Superior Attractive Equity Investment Investment Returns to Return on Float Management Shareholders Over
Slide 6: Experienced Senior Management Team
EXPERIENCED SENIOR MANAGEMENT TEAM CEO Experience • CEO, Reinsurance, Vice Chairman of the Board, Alterra Capital Holdings Limited John Berger Chairman & CEO • CEO & President, Harbor Point Re Limited • CEO & President, Chubb Re, Inc. • Strong business relationships • President, F&G Re • Expertise
Slide 7: Organizational Structure – Key Entities
ORGANIZATIONAL STRUCTURE – KEY ENTITIES1 Third Point Reinsurance Ltd. (Holding Company) 100% 100% 100% Third Point Reinsurance Third Point Re (UK) Third Point Re Company Ltd. Holdings Ltd. Marketing (UK) Ltd. (Class 4 Insurer) (Intermediate Holding Company) (Marketing Company ) 100% Third Point Re (
Slide 8: Flexible & Opportunistic Underwriting Strategy
FLEXIBLE & OPPORTUNISTIC UNDERWRITING STRATEGY • Our total return model provides crucial flexibility in today’s market environment • We leverage strong relationships Target Best to access attractive opportunities Opportunities • We are the lead underwriter on many of our transactions • Limited prope
Slide 9: Traditional Quota Shares
TRADITIONAL QUOTA SHARES • Non-standard auto • Ex-wind homeowners • We focus on lines of business • General liability with lower volatility • We provide reinsurance support to small and medium size insurers seeking surplus Target Best relief Opportunities • These transactions are typically relations
Slide 10: Opportunistic Deals
OPPORTUNISTIC DEALS • Regional workers’ compensation • Our relationships allow us to • Financial lines often be the first call for • Distressed situations many special situations • We look for dislocated markets and distressed Target Best situations where higher risk- Opportunities adjusted returns
Slide 11: Reserve Covers
RESERVE COVERS • Reserve covers provide clients with reinsurance protection, capital relief and potentially enhanced investment returns Target Best • Relationships are key – Opportunities decision-maker is typically the client’s CEO or CFO • Our team has a reputation for sophisticated structuring to
Slide 12: Diversified Premium Base
DIVERSIFIED PREMIUM BASE Gross Premium Written Since Gross Premium Written Since Inception1 by Type of Transaction Inception1 by Line of Business 1As of 6/30/2015 Note: All figures are for P&C Segment only 12 For Information Purposes Only
Slide 13: Reinsurance Risk Management
REINSURANCE RISK MANAGEMENT • Reinsurance business plan complements our investment management Risk strategy: no property catastrophe excess treaties on rated balance sheet and Management premium and reserve leverage lower than peer group Culture • Company-wide focus on risk management • Robust under
Slide 14: Reinsurance Risk Management (Cont'd): Leverage Metrics
REINSURANCE RISK MANAGEMENT (CONT’D) Bermuda Reinsurer Leverage Metrics (Percent) 350 • Low premium leverage and Invested Assets to Equity 300 asset leverage compared to peer group 250 • Limited legacy reserves 200 • Limited catastrophe risk TPRE 150 100 20 40 60 80 100 Premium to Equity Source: Dow
Slide 15: New U.S. Platform
NEW U.S. PLATFORM New Hires to Help Establish & Manage U.S. Operations • U.S. onshore presence a key component of overall growth strategy – Strengthen relationships with U.S. cedents and brokers Thomas Wafer – Develop first-hand knowledge of cedent underwriting and claims capabilities • Chairman Rei
Slide 16: Market-Leading Investment Management
MARKET-LEADING INVESTMENT MANAGEMENT Illustrative Net Return Since Inception ($ Thousands) 45 Third Point Partners LP • Third Point LLC owned and 40 HFRI Event-Driven (Total) Index led by Daniel S. Loeb DJ CS HFI Event Driven Index 35 S&P 500 (TR) • 20.4% net annualized 30 returns since inception in
Slide 17: Relationship with Third Point LLC
RELATIONSHIP WITH THIRD POINT LLC Investment • Exclusive relationship through 2016, followed by successive 3-year terms on Management renewal Agreement • Investments are managed on substantially the same basis as the main Third Point LLC hedge funds • We pay the standard 2% management fee and 20% pe
Slide 18: Third Point LLC Portfolio Risk Management
THIRD POINT LLC PORTFOLIO RISK MANAGEMENT • Portfolio diversification across industries, geographies, asset classes and strategies • Highly liquid portfolio – investment manager can dynamically shift exposures depending on macro/market developments • Security selection with extensive diligence proce
Slide 19: Strong Capital Base
STRONG CAPTIAL BASE 2015 Q2 Capital Requirements1 Available Capital Required Capital ($ Millions) A.M. Best • Publicly-traded BCAR capital base • Significant capacity to support growth BMA Solvency Requirement 1As of 06/30/2015; Amounts for A.M. Best and BMA estimated by TPRE based on the most recen
Slide 20: Strong Premium Growth
STRONG PREMIUM GROWTH Total Gross Written Premium ($ Millions) • Robust growth since inception • Broad range of lines of business and distribution sources (brokers) • Management views the company’s pipeline of opportunities as strong • Strong contribution from new US platform 20 For Information Purp
Slide 21: We Expect Our Combined Ratio to Remain Above 100% in This Market Environment
WE EXPECT OUR COMBINED RATIO TO REMAIN ABOVE 100% IN THIS MARKET ENVIRONMENT P&C Segment Combined Ratio (Percent) • Combined ratio improved from 2012-13 levels as reinsurance operation gained scale • Our focus on low volatility reinsurance business limits our potential to produce sub-100% combined r
Slide 22: Significant Float Generation
SIGNIFICANT FLOAT GENERATION Float as a Percentage of Total Shareholders’ Equity (Percent) • Float = holding premium until claims must be paid • If the underlying reinsurance risk is attractive, generating float allows a reinsurer to access investment “leverage” at low or no cost • Certain lines of
Slide 23: Attractive Returns Since Inception
ATTRACTIVE RETURNS SINCE INCEPTION Return on Beginning Shareholders’ Equity1 (Percent) • Returns have been attractive, even through the start-up phase • We are reaching scale in Average the underwriting operation = 13.3% • We believe that we are well-positioned to out- perform in a challenging marke
Slide 24: Total Return Business Model Designed to Deliver Superior Returns
TOTAL RETURN BUSINESS MODEL DESIGNED TO DELIVER SUPERIOR RETURNS Exceptional Resources + Optimal Deployment = Outstanding Results Experienced Underwriting Underwriting Profit Team Opportunity for Superior Attractive Equity Investment Investment Returns to Return on Float Management Shareholders Over
Slide 25: Appendix
APPENDIX 25 For Information Purposes Only
Slide 26: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Consolidated Income Statement ($000s) Highlights Six months ended Year ended Year ended Year ended 6/30/2015 12/31/2014 12/31/2013 12/31/2012 Gross premiums written $ 397,676 $ 613,300 $ 401,937 $ 190,374 • Generated $1.603 billion of Gross premiums ceded (1,477) (150) (9,97
Slide 27: Key Financial Highlights (con't)
KEY FINANCIAL HIGHLIGHTS (con't) Selected Balance Sheet Data ($000s) Highlights As of As of As of As of 6/30/2015 12/31/2014 12/31/2013 12/31/2012 • $286.0 million of capital Total assets $ 3,636,861 $ 2,582,580 $ 2,159,890 $ 1,402,017 Total liabilities 2,081,257 1,300,532 649,494 473,696 raised wit
Slide 28: Non-GAAP Measures
NON-GAAP MEASURES Book value per share Book value per share as used by our management is a non-GAAP financial measure, as it is calculated after deducting the impact of non-controlling interests. Book value per share is calculated by dividing shareholders’ equity attributable to shareholders, adjust
Slide 29: Non-GAAP Measures (con't)
NON-GAAP MEASURES (con't) Growth in diluted book value per share Calculated by taking the change in diluted book value per share divided by the beginning of period diluted book value per share. We believe that long- term growth in the diluted book value per share is the most important measure of our
Third Point Reinsurance — KBW Insurance Conference 2015 on 6ix