Enstar Group Limited · OTC:ESGOF
Enstar — Q3 2022 Earnings Presentation
16 slides from Enstar's earnings presentation, Nov 3, 2022
Slide 1: Investor Financial Supplement September 30, 2022
enstargroup.com ENSTAR GROUP LIMITED Investor Financial Supplement September 30, 2022
Slide 2: Table of Contents
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 4 Consolidated Results by Segment 5 Capital Position & Credit Ratings 9 Non-GAAP Measures 10 Reconciliation to Adjusted Book Value per Share 12 Reconciliation to Adjusted Return on Equity 13 Reconciliation to Adjuste
Slide 3: Explanatory Notes
| enstargroup.com 3 Explanatory Notes About Enstar Enstar is a NASDAQ-listed leading global (re)insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other internat
Slide 4: Financial Highlights
| enstargroup.com 4 Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Key Earnings Metrics Return on equity (“ROE”) (10.6) % (2.9) % (21.8) % 5.9 % Annualized ROE (29.1) % 7.9 % Adjusted ROE (1) (7.0) % 7.7 % Annualized adjusted ROE (1)
Slide 5: Consolidated Results by Segment - QTD 2022
| enstargroup.com 5 Consolidated Results by Segment - QTD 2022 Three Months Ended September 30, 2022 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 1 $ 2 $ — $ 1 $ — $ 4 Net investment income — — 114 2 — 116 Net realized losses — — (36
Slide 6: Consolidated Results by Segment - QTD 2021
| enstargroup.com 6 Consolidated Results by Segment - QTD 2021 Three Months Ended September 30, 2021 Run-off Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 39 $ — $ 13 $ — $ 52 Net investment income — 92 1 — 93 Net realized gains — 5 1 — 6 Net unrealized l
Slide 7: Consolidated Results by Segment - YTD 2022
| enstargroup.com 7 Consolidated Results by Segment - YTD 2022 Nine Months Ended September 30, 2022 Run-off Assumed Life Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 27 $ 17 $ — $ 8 $ — $ 52 Net investment income — — 294 8 — 302 Net realized losses — — (
Slide 8: Consolidated Results by Segment - YTD 2021
| enstargroup.com 8 Consolidated Results by Segment - YTD 2021 Nine Months Ended September 30, 2021 Run-off Investments Legacy Underwriting Corporate and other (1) Total INCOME Net premiums earned $ 154 $ — $ 50 $ — $ 204 Net investment income — 229 2 — 231 Net realized gains — 1 — — 1 Net unrealize
Slide 9: Capital Position
| enstargroup.com 9 Capital position September 30, 2022 December 31, 2021 $ / pp Change Ordinary shareholders' equity $ 3,550 $ 5,586 $ (2,036) Series D and E preferred shares 510 510 — Total Enstar shareholders' equity 4,060 6,096 (2,036) Noncontrolling interests 98 230 (132) Total shareholders' eq
Slide 10: Non-GAAP Measures
10 Non-GAAP Measures Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Adjusted book value per ordinary share Total Enstar ordinary shareholders' equity Divided by Number of ordinary shares outstanding, adjusted for: -the ultimate effect of any dilutive securities on the numb
Slide 11: Non-GAAP Measures (continued)
| enstargroup.com 11 Non-GAAP Measures (continued) Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Adjusted run-off liability earnings (%) Adjusted PPD divided by average adjusted net loss reserves Calculating the RLE as a percentage of our adjusted average net loss reserve
Slide 12: Book Value Per Share
| enstargroup.com 12 Reconciliation to Adjusted Book Value Per Share As of September 30, 2022 December 31, 2021 Equity (1) Ordinary Shares Per Share Amount Equity (1) Ordinary Shares Per Share Amount Book value per ordinary share $ 3,550 17,018,571 $ 208.60 $ 5,586 17,657,944 $ 316.34 Non-GAAP adjus
Slide 13: Return on Equity
| enstargroup.com 13 Reconciliation to Adjusted Return on Equity Three Months Ended September 30, 2022 2021 Net (loss) earnings (1) Opening equity (1) (Adj) ROE Annualized (Adj) ROE Net (loss) earnings (1) Opening equity (1) (Adj) ROE Annualized (Adj) ROE Net (loss) earnings/Opening equity/ROE/Annua
Slide 14: Run-off Liability Earnings - QTD
| enstargroup.com 14 Reconciliation to Adjusted Run-off Liability Earnings - QTD Three Months Ended As of Three Months Ended September 30, 2022 September 30, 2022 June 30, 2022 September 30, 2022 September 30, 2022 PPD Net loss reserves Net loss reserves Average net loss reserves Annualized RLE % PP
Slide 15: Run-off Liability Earnings - YTD
| enstargroup.com 15 Reconciliation to Adjusted Run-off Liability Earnings - YTD Nine Months Ended As of Nine Months Ended September 30, 2021 September 30, 2021 December 31, 2020 September 30, 2021 September 30, 2021 PPD Net loss reserves Net loss reserves Average net loss reserves Annualized RLE %
Slide 16: Total Investment Return
| enstargroup.com 16 Reconciliation to Adjusted Total Investment Return Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Investment results Net investment income $ 116 $ 93 $ 302 $ 231 Net realized (losses) gains (36) 6 (111) 1 Net unrealized (losses) gains (546)