Endurance Specialty Holdings Ltd
Endurance Specialty — Investor Presentation (May 2016)
28 slides from Endurance Specialty's investor presentation, May 10, 2016
Slide 1: Endurance Specialty Holdings Investor Presentation March 31, 2016
Endurance Specialty Holdings Investor Presentation March 31, 2016 Exhibit 99.1
Slide 2: Forward-Looking Statements and Regulation G Disclaimer
Forward-Looking Statements and Regulation G Disclaimer Safe Harbor for Forward-Looking Statements Some of the statements in this presentation may include, and Endurance may make related oral forward-looking statements which reflect our current views with respect to future events and financial perfor
Slide 3: Endurance Has Strong Foundation to Build on
“A” ratings from A.M. Best and S&P $5.7 billion of total capital and shareholders’ equity available to the Company of $5.0 billion as of March 31, 2016. Conservative, short-duration, AA- rated investment portfolio Prudent reserves that have historically developed favorably since our inception Divers
Slide 4: We Have Transformed Our Specialty Insurance and Reinsurance Businesses
2015 Gross premiums written of $3.3 billion have grown 30% from year end 2012 while accident year net loss ratios (ex catastrophes) have improved We Have Transformed Our Specialty Insurance and Reinsurance Businesses Starting in 2013 we rebalanced our insurance and reinsurance portfolios while expan
Slide 5: We Completed the Acquisition of Montpelier in the Third Quarter of 2015
We Completed the Acquisition of Montpelier in the Third Quarter of 2015 Swift integration already generating results The integration of Montpelier was immediate and completed within weeks of closing the transaction. All employees are externally focused and able to take advantage of our enhanced and
Slide 6: Insurance Strategic Direction – Scale, Balance and Diversification
Insurance Strategic Direction – Scale, Balance and Diversification Expanded underwriting talent, refocused underwriting, rebalanced portfolio and improved positioning and relevance in the global market Insurance Gross Premiums Written Improved market presence over the last 3 years through hiring of
Slide 7: Reinsurance Strategic Direction – Portfolio Enhancement
Reinsurance Strategic Direction – Portfolio Enhancement Enhanced profitability by leveraging top flight underwriting talent, strategic partnerships with key clients and brokers, and improved underwriting and risk selection Reinsurance Gross Premiums Written Expanded specialty focus through hiring of
Slide 8: Portfolio Diversified by Product, Distribution Source and Geography
Portfolio Diversified by Product, Distribution Source and Geography The transformation of Endurance has improved portfolio balance and diversification 1Q16* Gross Premiums Written: $3.6 Billion Reinsurance (39%) Insurance (61%) Casualty Professional Liability Property Per Risk Small Business Surety
Slide 9: Endurance's Financial Results: Diluted Book Value Per Share Growth
Endurance’s Financial Results Diluted book value per common share has grown strongly Growth in Diluted Book Value Per Common Share ($) From March 31, 2006 – March 31, 2016
Slide 10: Excellent Financial Strength and Risk Based Capital Position
Excellent Financial Strength and Risk Based Capital Position Strong flexibility to pursue value enhancing growth initiatives Endurance has significantly expanded its risk based capital position through strong results, prudent catastrophe risk management, judicious use of reinsurance and the acquisit
Slide 11: Conservative Investment Portfolio Duration and Quality
Fixed maturity portfolio duration is 2.65 years in order to balance investment yield and interest rate risk Investment quality (AA- average) has remained high as the portfolio is conservatively managed in a challenging economy 41.9% of investments are cash/short term or US backed Minimal exposure to
Slide 12: Endurance has undergone a fundamental transformation
Endurance has undergone a fundamental transformation to improve profitability and enhance market relevance Since John Charman joined Endurance in 2nd Quarter 2013 as Chairman and CEO, Endurance has meaningfully expanded its global specialty insurance and reinsurance capabilities Endurance has rebala
Slide 13: Endurance
Oe Endurance a,
Slide 14: Overview of ARMtech
—_S— Endurance Overview of ARMtech
Slide 15: Multi Peril Crop Insurance (MPCI) Overview and ARMtech Position
Multi Peril Crop Insurance (MPCI) is an insurance product regulated by the USDA that provides farmers with yield or revenue protection Offered by 18 licensed companies Pricing is set by the government and agent compensation limits are also imposed - no pricing cycle exists Reduced downside risks due
Slide 16: ARMtech is a Leader in Crop Insurance
ARMtech is a Leader in Crop Insurance ARMtech’s focus on technology and service has allowed it to steadily grow its well diversified business Written Premiums and Policy Counts by Crop Year ARMtech has demonstrated its ability to grow market share and premiums over time through its leading edge tech
Slide 17: Stable Results in Volatile Times
While individual states can produce large loss ratios, the U.S. Federal reinsurance program has historically reduced loss ratio volatility. ARMtech’s business has historically produced stable profits over time after reflecting the reinsurance terms set out in the current standard crop reinsurance ag
Slide 18: Seasonality of MPCI Business
Overview of ARMtech ARMtech’s recognition of premiums and earnings are influenced by growing seasons Seasonality of MPCI Business First Quarter Third Quarter Second Quarter Recognition of annual written premiums 60% - 65% Spring crops 20% - 25% Spring crop acreage report adjustments Winter crops 10%
Slide 19: Geographic Diversification of Crop Insurance Business
1.5% 0.2% 0.4% 0.9% 0.5% 0.4% 6.4% 4.6% 4.6% 2.0% 3.1% 23.6% 1.0% 1.3% 0.7% 3.4% 7.5% 6.1% 0.6% 1.5% 1.0% 4.0% 4.0% 1.2% 2.7% 3.6% 1.4% 4.6% 3.3% 1.8% 0.6% Geographic Diversification of Crop Insurance Business ARMtech maintains a geographically diversified portfolio of risk ARMtech’s 2016 Estimated
Slide 20: Diversification of Crops Within ARMtech's Portfolio
Diversification of Crops Within ARMtech’s Portfolio Underwritten risks diversified by geography and commodity type ARMtech’s 2016 Estimated Crop Year MPCI Net Written Premiums Iowa – 5.0% Nebraska – 3.1% Indiana – 2.5% South Dakota – 2.5% Minnesota – 2.3% Texas – 2.4% Missouri – 1.9% North Dakota –
Slide 21: Agriculture Insurance Contains Four Layers of Risk Mitigation
Agriculture Insurance Contains Four Layers of Risk Mitigation Farmers retention, ceding premiums to the U.S. Federal Government, limitations on losses and gains and purchase of stop loss protection 43.9% of MPCI Premiums Ceded to U.S. Federal Government Assigned Risk Fund “Higher Risk Policies” Comm
Slide 22: ARMtech Has Grown Market Share Over Time
ARMtech Has Grown Market Share Over Time Superior service and technology have driven growth in stable market
Slide 23: Other Miscellaneous Information
Other Miscellaneous Information
Slide 24: Probable Maximum Loss by Zone and Peril
Probable Maximum Loss by Zone and Peril Largest 1 in 100 year PML as of January 1, 2016 is equal to 11.1% of Shareholders’ Equity available to the Company as of March 31, 2016 The net loss estimates by zone above represent estimated losses related to our property, catastrophe and specialty lines of
Slide 25: First Quarter 2016 Highlights
Diluted book value per common share, adjusted for dividends, grew 2.9% during first quarter 2016 Net income attributable to common shareholders of $106.4 million Improved underwriting results which included a combined ratio of 77.9% Light catastrophe activity Continued favorable reserve development
Slide 26: Financial Results for First Quarter 2016 and 2015
Financial Results for First Quarter 2016 and 2015 $MM (except per share data and %) Mar. 31, 2016 Mar. 31, 2015 $ Change % Change Net premiums written 938.8 765.0 173.9 22.7% Net premiums earned 553.2 389.9 163.3 41.9% Net investment income 11.2 41.9 (30.7) -73.3% Net underwriting income 131.4 83.3
Slide 27: Gross Written Premiums for First Quarter 2016 and 2015
Gross Written Premiums for First Quarter 2016 and 2015 In $MM 1st Qtr. 2016 1st Qtr. 2015 $ Change % Change Casualty and other specialty 138.3 100.7 37.6 37.3% Agriculture 496.2 516.9 -20.7 -4.0% Professional lines 77.4 54.8 22.6 41.2% Property, marine/energy and aviation 123.2 63.9 59.4 93.0% Total
Slide 28: Financial Overview: Inception to Date Financial Performance
Financial Overview: Inception to Date Financial Performance In $MM 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16 Inception to date Gross prems written 799 1,602 1,711 1,669 1,790 1,781 2,246 2,021 2,053 2,467 2,549 2,665 2,894 3,321 1,612 31,180 Net prems written 765 1,5
Endurance Specialty Holdings — Investor Presentation (May 2016) on 6ix