Pelagos Insurance Capital Limited · NYSE:PLGO
Pelagos Insurance Capital — Fidelis Insurance Holdings — FY2023 Earnings Presentation
26 slides from Pelagos Insurance Capital's earnings presentation, Feb 29, 2024
Slide 1: Investor Presentation
February 29, 2024 Investor Presentation Fidelis Insurance Group
Slide 2: Forward-looking statements
This press release (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 relate solely to historical or current facts an
Slide 3: Fidelis Insurance Group: At a Glance
A leading global specialty insurer, leveraging strategic partnerships to offer innovative and tailored insurance solutions Fidelis Insurance Group: At a Glance 18% Reinsurance 20% Bespoke 62% Specialty Financial Highlights ■ Diverse portfolio serving 11 classes of business across our three segments
Slide 4: Fidelis Insurance Group: Strategic Objectives
Fidelis Insurance Group: Strategic Objectives 4 $9.9bn Total Assets Expanding our premium volume and capital base to capitalize on attractive opportunities in a favorable market environment Profitable Underwriting • Be recognized as a thought leader and global leader in specialty insurance • Serve a
Slide 5: Fidelis Insurance Group: Vision & Values
Fidelis Insurance Group: Vision & Values 5 Diversity RespectCuriosity We cultivate a culture of empowerment, accountability, and self-direction within our organization We foster an inclusive and community-orientated culture which recognizes that strength lies in unity and a shared sense of purpose a
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, mature, and well positioned specialty insurance portfolio with historical best-in-class performance Strong premium growth in attractive lines capitalizing on hard market conditions Proven track record of delivering market-leading combined ratios
Slide 8: Long-Term Shareholder Value Creation Framework
Long-Term Shareholder Value Creation Framework 8 Capital Management Maximizing value for shareholders by growing book value, generating consistent returns, and optimizing capital management 13-15%(1) targeted through the cycle Underwriting Profitability Investment Returns Mid to High 80s% Combined R
Slide 9: A High Quality, Mature, and Well-Positioned Portfolio
Property Reinsurance 17% Other Bespoke 6% Credit & Political Risk 14% Specialty Other 1% Property 2%Energy 5% Aviation & Aerospace 10% Marine 19% Property D&F 25% $3.6B A High Quality, Mature, and Well-Positioned Portfolio 2023 Gross Premiums Written SPECIALTY $2,241m (62%) REINSURANCE $617m (18%) B
Slide 10: Driving Strong Premium and BVPS Growth
Driving Strong Premium and BVPS Growth $16.24 $20.69 YE 2022 YE 2023 GPW ($bn) $3.0 $3.6 FY 2022 FY 2023 +19% YoY Book Value Per Diluted Common Share +27% YoY 10 Continued Compounding Rate Increases Specialty Bespoke(3) Reinsurance Investments(4) +130.4% RPI(2) in 2023 +106.5% RPI(2) in 2023 +172.5%
Slide 11: Delivering Market-leading Combined Ratios
Delivering Market-leading Combined Ratios 11 Combined Ratio (2021-2023) Note: (1) Average calculated from peer group including Axis, Everest, Conduit, Markel, W.R. Berkley, Beazley, Lancashire and Hamilton. For Conduit, figures are on a IFRS 4 basis for 2021 and IFRS 17 basis for 2022 and 2023; (2)
Slide 12: Diversified Investment Portfolio
1% Other Investments 44% Corporates(1) 17% US Treasuries 4% Agency MBS Diversified Investment Portfolio <1% BB 17% BBB 35% A 36% AA 12% AAA 12 2.0yrs Duration $3.3bn Fixed Income Portfolio ~82% Rated A- or Better A+ Average Credit Quality $4.3bn Total Cash and Investments 40% 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: Deep and Highly Experienced Management Team
Deep and Highly Experienced Management Team Dan Burrows Group CEO & Director 35+ Years of Experience Allan Decleir Group CFO & Director 35+ Years of Experience Mike Pearson Group CRO 35+ Years of Experience Denise Brown-Branch Group COO 25+ Years of Experience Ian Houston Group CUO 35+ Years of Expe
Slide 15: Underwriting Platform Facilitates Reliable Access to Attractive Risk
Underwriting Platform Facilitates Reliable Access to Attractive Risk 15 Long-term strategic partnership with Fidelis MGU creates significant benefits: Access to Premier Underwriting Talent Standalone MGU with strong distribution partners and relationships Dynamic Portfolio Construction Unmatched agi
Slide 16: Well-Positioned to Deliver Sustainable Profitable Growth
Well-Positioned to Deliver Sustainable Profitable Growth 16 Attractive Pipeline Underwriting Profitability at Scale Strong continued organic growth driven by differentiated positions and attractive market conditions Earnout of existing profitable unearned premium reserve (Bespoke/Specialty) In
Slide 17: Financial Results & Segment Overviews
Financial Results & Segment Overviews
Slide 18: 2023 Fourth Quarter Highlights
2023 Fourth Quarter Highlights 18 Q4 2022Q4 2023 $595M$784MGross Premiums Written $408M$508MNet Premiums Earned 66.2%81.4%Combined Ratio 27.2%23.6%Annualized Operating ROAE (1) $17M$39MNet Investment Income $0.60$1.93Diluted EPS $0.65$1.15Operating EPS (1) $16.24 (3)$20.69 (2)Diluted Book Value Per
Slide 19: 2023 Full Year Highlights
2023 Full Year Highlights 19 20222023 $3,018M$3,579MGross Premiums Written $1,501M$1,833MNet Premiums Earned 91.9%82.1%Combined Ratio 4.5%18.8%Operating ROAE (1) $41M$120MNet Investment Income $0.26$18.65Diluted EPS $0.45$3.49Operating EPS (1) $16.24 (3)$20.69 (2)Diluted Book Value Per Share Key Tak
Slide 20: Specialty Overview
Specialty Overview 20 ■ Focused on traditional specialty business where we take significant positions in the major lines, including Property Direct & Facultative, Marine, and Aviation and Aerospace ■ Industry leading results including expected mid-40%’s loss ratio ■ Attractive pricing we saw in 2023
Slide 21: Bespoke Overview
Bespoke Overview 21 ■ Focused on highly tailored, specialized products that facilitate underlying transactions and offer enhanced capital efficiencies ■ The risks we underwrite yield strong returns, including highly attractive loss ratios expected to be mid- 30%’s ■ Premiums written do not follow a
Slide 22: Reinsurance Overview
Reinsurance Overview 22 ■ Focused on a strategically selected property catastrophe book, optimized to reflect our view of risk allowing Fidelis Insurance to manage exposures and minimize volatility ■ Positioned to take advantage of increased demand for coverage without increasing portfolio exposures
Slide 23: Appendix
_ Appendix
Slide 24: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 24
Slide 25: 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 26: Investor Inquiries
Investor Inquiries: Miranda Hunter (441) 279 2561 miranda.hunter@fidelisinsurance.com
Fidelis Insurance Holdings — FY2023 Earnings Presentation on 6ix