Siriuspoint Ltd. · NYSE:SPNT
Siriuspoint — Third Point Reinsurance — Investor Presentation (March 2015)
30 slides from Siriuspoint's investor presentation, Mar 2, 2015
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation MARCH 2015
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,” “gu
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 12 Months Ended 12 Months Ended 12 Months Ended December 31, 2014 December 31, 2013 December 31, 2012 Diluted Book Value Per Share $13.55 $13.12 $10.89 Shareholders’ Equity $1.45 billion $1.39 billion $869 million Return on Beginning 3.6% 23.4% 13.0% Shareholders’ Equity* Growth in Dilut
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 • CEO & President, Harbor Point Re Limited Chairman & CEO • CEO & President, Chubb Re, Inc. • Strong business relationships • President, F&G Re • Expertise i
Slide 7: Organizational Structure
ORGANIZATIONAL STRUCTURE Third Point Reinsurance Ltd. (Holding Company) 100% 100% 100% 100% Third Point Re (UK) Third Point Reinsurance Third Point Re Third Point Reinsurance Holdings Ltd. Company Ltd. Marketing (UK) Ltd. Investment Management Ltd. (Intermediate Holding Company) (Class 4 Insurer) (M
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 most 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 Opportunities • Relationships are key – 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 1 1 Gross Premium Written Since Inception by Gross Premium Written Since Inception by Type of Transaction Line of Business (Percent) (Percent) General Reserve Financial Liability (5) Covers (7) Lines (4) Opportunistic Property QS Deals (44) Agriculture (6) (23) Traditional M
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)
REINSURANCE RISK MANAGEMENT (CONT’D) Bermuda Reinsurer Leverage Metrics (Percent) • Low premium leverage and 350 asset leverage compared to peer group 300 • Limited legacy reserves mitigate the risk of adverse 250 reserve development 200 • Catastrophe risk is largely limited to our $59.5 million 150
Slide 15: Reinsurance Operations
REINSURANCE OPERATIONS • Strong pipeline • Combined ratio trending lower as we gain scale • Continue to expand our underwriting platform U.K. marketing office Physical presence in the U.S. Opportunistically hire experienced underwriters 15 For Information Purposes Only
Slide 16: New U.S. Platform
NEW U.S. PLATFORM New Hires to Help Establish & Manage U.S. Operations • U.S. onshore presence a key component of overall growth strategy – Strengthen relationships with U.S. cedents and brokers Thomas Wafer – Develop first-hand knowledge of cedent underwriting and claims capabilities • Chairman Rei
Slide 17: Market-Leading Investment Management
MARKET-LEADING INVESTMENT MANAGEMENT 1 Illustrative Net Return Since Inception 2,3,4 ($ Thousands) Third Point Partners LP • Third Point LLC owned and HFRI Event-Driven (Total) Index led by Daniel S. Loeb DJ CS HFI Event Driven Index S&P 500 (TR) • 20.6% net annualized returns since inception in 199
Slide 18: 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 19: 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 20: Strong Capital Base
STRONG CAPITAL BASE 1 2014 Capital Requirements Available Capital ($ Millions) Required Capital A.M.Best • Publicly-traded capital base BCAR • Significant capacity to support BMA Solvency growth Requirement • Unlike many other reinsurers, our excess underwriting TPRE Internal capital is not a drag o
Slide 21: Strong Premium Growth
STRONG PREMIUM GROWTH Total Gross Written Premium ($ Millions) • Robust growth since 750 inception 613 • Broad range of lines of 500 business and distribution 402 sources (brokers) 250 190 • Management views the company’s pipeline of opportunities as strong 0 2012 2013 2014 21 For Information Purpos
Slide 22: Steady Progress Towards Combined Ratio < 100%
STEADY PROGRESS TOWARDS COMBINED RATIO < 100% P&C Segment Combined Ratio (Percent) • Combined ratio is improving 140 in-line with projections as 129.7 reinsurance operation gains scale 120 • We anticipate further 107.5 102.2 improvement in our 100 combined ratio as additional premium is earned over
Slide 23: Significant Float Generation
SIGNIFICANT FLOAT GENERATION Float As A Percentage of Total Shareholders’ Equity (Percent) • Float = premium held until claims must be paid 30 • If the underlying reinsurance 25.1 25 risk is attractive, generating float allows a reinsurer to 20 access investment “leverage” 14.2 at low or no cost 15
Slide 24: Attractive Returns Since Inception
ATTRACTIVE RETURNS SINCE INCEPTION 1 Return on Beginning Shareholders’ Equity (Percent) 23.4 • Returns have been 25 attractive, even through the 20 start-up phase Average • We are reaching scale in 15 13.0 = 13.3% the underwriting operation 10 • We believe that we are 5 3.6 well-positioned to out- p
Slide 25: 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 26: Appendix
APPENDIX 26 For Information Purposes Only
Slide 27: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Consolidated Income Statement ($000s) Highlights Year ended Year ended Year ended 12/31/14 12/31/13 12/31/12 Generated $1.206 billion of Gross premiums written $613,300 $401,937 $190,374 gross premiums written from Gross premiums ceded (150) (9,975) - inception to date. Net
Slide 28: Key Financial Highlights (Cont'd)
KEY FINANCIAL HIGHLIGHTS (CONT’D) Selected Balance Sheet Data ($000s) As of 12/31/14 As of 12/31/13 As of 12/31/12 Total assets $2,582,580 $2,159,890 $1,402,017 Total liabilities 1,300,532 649,494 473,696 Total shareholders’ equity $1,552,048 $1,510,396 $928,321 Non-controlling interests (100,135) (
Slide 29: Non-GAAP Measures
NON-GAAP MEASURES Book value per share Book value per share as used by our management is a non-GAAP 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, adjusted for sub
Slide 30: Non-GAAP Measures (Cont'd)
NON-GAAP MEASURES (CONT’D) 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
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