Siriuspoint Ltd. · NYSE:SPNT
Siriuspoint — Third Point Reinsurance — Investor Presentation (November 2016)
27 slides from Siriuspoint's investor presentation, Nov 10, 2016
Slide 1: Investor Presentation November 2016
For Information Purposes Only Investor Presentation NOVEMBER 2016 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
For Information Purposes Only CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 2 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,” “
Slide 3: Our Company
For Information Purposes Only 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
Slide 4: Key Metrics
For Information Purposes Only Nine months ended Year ended Year ended Year ended Year ended September 30, 2016 December 31, 2015 December 31, 2014 December 31, 2013 December 31, 2012 Shareholders’ Equity $ 1.46 billion $ 1.38 billion $ 1.45 billion $ 1.39 billion $ 0.9 billion Diluted Book Value Per
Slide 5: Total Return Business Model Designed to Deliver Superior Returns
For Information Purposes Only TOTAL RETURN BUSINESS MODEL DESIGNED TO DELIVER SUPERIOR RETURNS 5 Opportunity for Attractive Equity Returns to Shareholders Over Time Experienced Underwriting Team Superior Investment Management Stable Capital Base Underwriting Profit Investment Return on Float1 Invest
Slide 6: Experienced Senior Management Team
For Information Purposes Only EXPERIENCED SENIOR MANAGEMENT TEAM 6 CEO Experience Robert Bredahl President & COO • CEO, Aon Benfield Securities • President, Aon Benfield Americas • CEO, Benfield U.S. Inc. & CEO, Benfield Advisory Dan Malloy EVP Underwriting • EVP, Co-Head of Specialty Lines, Aon
Slide 7: Organizational Structure – Key Entities
For Information Purposes Only ORGANIZATIONAL STRUCTURE – KEY ENTITIES 7 Third Point Reinsurance Ltd. (Holding Company) Third Point Reinsurance Company Ltd. (Class 4 Insurer) Third Point Re Marketing (UK) Ltd. (Marketing Company ) 100% 100% Third Point Re (UK) Holdings Ltd. (Intermediate Holding Comp
Slide 8: Flexible & Opportunistic Underwriting Strategy
For Information Purposes Only FLEXIBLE & OPPORTUNISTIC UNDERWRITING STRATEGY 8 • Our total return model provides crucial flexibility in today’s market environment • We leverage strong relationships to access attractive opportunities • We are the lead underwriter on many of our transactions • Limited
Slide 9: Traditional Quota Shares
For Information Purposes Only TRADITIONAL QUOTA SHARES 9 • Non-standard auto • Ex-wind homeowners • General liability Target Best Opportunities • We focus on lines of business with volatility we believe is typically lower than that of most other reinsurance companies • We provide reinsurance support
Slide 10: Opportunistic Deals
For Information Purposes Only OPPORTUNISTIC DEALS 10 • Our relationships allow us to often be the first call for many special situations • We look for dislocated markets and distressed situations where higher risk- adjusted returns may be available • We manage our downside exposure with structural f
Slide 11: Reserve Covers
For Information Purposes Only RESERVE COVERS 11 • Reserve covers provide clients with reinsurance protection, capital relief and potentially enhanced investment returns • Relationships are key – decision-maker is typically the client’s CEO or CFO • Our team has a reputation for sophisticated structu
Slide 12: Diversified Premium Base
For Information Purposes Only DIVERSIFIED PREMIUM BASE Gross Premium Written Since Inception1 by Type of Transaction Gross Premium Written Since Inception1 by Line of Business 1As of 9/30/2016 Note: All figures are for P&C Segment only 12
Slide 13: Reinsurance Risk Management
For Information Purposes Only REINSURANCE RISK MANAGEMENT 13 • Reinsurance business plan complements our investment management strategy: no property catastrophe excess treaties on rated balance sheet and premium and asset leverage, see slide14, lower than peer group • Company-wide focus on risk mana
Slide 14: Reinsurance Risk Management (Cont'd)
For Information Purposes Only 100 150 200 250 300 20 40 60 80 100 REINSURANCE RISK MANAGEMENT (CONT’D) 14 • Low premium leverage and asset leverage compared to peer group • Limited legacy reserves • Limited catastrophe risk Bermuda Reinsurer Leverage Metrics (Percent) Premium to Equity In v e st e d
Slide 15: Market-Leading Investment Management by Third Point LLC
For Information Purposes Only MARKET-LEADING INVESTMENT MANAGEMENT BY THIRD POINT LLC 15 • Third Point LLC owned and led by Daniel S. Loeb • 18.9% net annualized returns for Third Point Partners LP since inception in 19951 • 10.3% net annualized return on TPRe managed account since inception (Jan. 1
Slide 16: Relationship with Third Point LLC
For Information Purposes Only RELATIONSHIP WITH THIRD POINT LLC 16 • Exclusive relationship through 2021, followed by successive 3-year terms on renewal • Investments are managed on substantially the same basis as the main Third Point LLC hedge funds • We pay a standard 2% management fee (effective
Slide 17: Third Point LLC Portfolio Risk Management
For Information Purposes Only THIRD POINT LLC PORTFOLIO RISK MANAGEMENT 17 • Portfolio diversification across industries, geographies, asset classes and strategies • Highly liquid portfolio – investment manager can dynamically shift exposures depending on macro/market developments • Security selecti
Slide 18: Gross Premium Written
For Information Purposes Only GROSS PREMIUM WRITTEN Total Gross Written Premium • Robust growth since inception • Broad range of lines of business and distribution sources (brokers) • Management believes the company has a strong pipeline of opportunities 18
Slide 19: Difficult Reinsurance Market Conditions
For Information Purposes Only DIFFICULT REINSURANCE MARKET CONDITIONS P&C Segment Combined Ratio • Combined ratio improved from 2012 level as reinsurance operation gained scale • Our potential to produce sub-100% combined ratios will be limited until reinsurance market conditions improve *Inception
Slide 20: Asset Leverage
For Information Purposes Only ASSET LEVERAGE Asset leverage1 • If the underlying reinsurance risk is attractive, generating float allows a reinsurer to access investment “leverage” at low or no cost • Certain lines of business provide reinsurers with float for several years • We are currently operat
Slide 21: Attractive Returns Since Inception
For Information Purposes Only ATTRACTIVE RETURNS SINCE INCEPTION Return on Beginning Shareholders’ Equity1 • Returns have been attractive, even through the start-up phase • We believe we have reached scale in our underwriting operation • We believe that we are well-positioned to out- perform in a ch
Slide 22: Total Return Business Model Designed to Deliver Superior Returns
For Information Purposes Only TOTAL RETURN BUSINESS MODEL DESIGNED TO DELIVER SUPERIOR RETURNS 22 Opportunity for Attractive Equity Returns to Shareholders Over Time Experienced Underwriting Team Superior Investment Management Stable Capital Base Underwriting Profit Investment Return on Float Invest
Slide 23: Appendix
For Information Purposes Only 23 APPENDIX
Slide 24: Condensed Consolidated Income Statement
For Information Purposes Only Condensed Consolidated Income Statement ($000s) Nine months ended Years ended 9/30/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012 Net premiums earned $ 398,107 $ 602,824 $ 444,532 $ 220,667 $ 96,481 Net investment income (loss)(1) 134,592 (28,074 ) 85,582 258,125 136,
Slide 25: Selected Balance Sheet Data
For Information Purposes Only Selected Balance Sheet Data ($000s) As of 9/30/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012 Total assets $ 4,177,588 $ 3,545,108 $ 2,582,580 $ 2,159,890 $ 1,402,017 Total liabilities 2,701,819 2,149,225 1,300,532 649,494 473,696 Total shareholders’ equity 1,475,769
Slide 26: Non-GAAP Measures & Other Financial Metrics
For Information Purposes Only NON-GAAP MEASURES & OTHER FINANCIAL METRICS ($000s, Except Share and per Share Amounts) As of 9/30/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012 Basic and fully diluted book value per share numerator: Total shareholders' equity $ 1,475,769 $ 1,395,883 $ 1,552,048 $ 1
Slide 27: Non-GAAP Measures & Other Financial Metrics
For Information Purposes Only NON-GAAP MEASURES & OTHER FINANCIAL METRICS ($000s) Nine months ended Years ended 9/30/2016 12/31/2015 12/31/2014 12/31/2013 12/31/2012 Net income (loss) $ 74,328 $ (87,390 ) $ 50,395 $ 227,311 $ 99,401 Shareholders' equity attributable to shareholders -beginning of yea
Third Point Reinsurance — Investor Presentation (November 2016) on 6ix