Siriuspoint Ltd. · NYSE:SPNT
Siriuspoint — Third Point Reinsurance — Investor Presentation (June 2020)
24 slides from Siriuspoint's investor presentation, Jun 8, 2020
Slide 1: Investor Presentation June 2020
Investor Presentation JUNE 2020 For Information Purposes Only
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,” “gui
Slide 3: Company Overview
COMPANY OVERVIEW Specialty property & casualty reinsurer based in TPRE Full Year 2019 Highlights Bermuda • 16.7% return on equity (1) • 15.9% increase in diluted book value per share to $15.04 (1) • Combined ratio of 103.2%, of which 4.1 points was attributable A- (Excellent) financial strength rati
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Transitioning to a Specialty Reinsurer 2 Attracting Experienced Talent 3 Expanding into Higher Margin Business Lines 4 Capital Markets Expertise to Drive Value 5 Improving Underwriting Profitability 6 Differentiated Investment Strategy 7 Deliver Attractive Risk Adjusted Retur
Slide 5: Transitioning to a Specialty Reinsurer
1 TRANSITIONING TO A SPECIALTY REINSURER 2012 - 2018 2019 - Going Forward • Expand into more profitable lines of • Total return business model reinsurance • Generated float by writing low • Utilize combined reinsurance and volatility, long dated reinsurance capital markets expertise to create distri
Slide 6: Accomplished Senior Management Team
2 ACCOMPLISHED SENIOR MANAGEMENT TEAM ◦ EVP, Co-Head of Specialty Lines, Aon Benfield Dan Malloy ◦ President & CEO, Stockton Reinsurance Ltd. Chief Executive Officer ◦ President, Center Re Bermuda David Govrin ◦ VP, Berkshire Hathaway Reinsurance Group President, Third Point ◦ VP, Goldman Sachs Insu
Slide 7: Attracting Experienced Talent
2 ATTRACTING EXPERIENCED TALENT David Drury ◦ Chief Underwriting Officer, Chubb Tempest Re Group EVP, Underwriting – Global ◦ Chief Risk Officer, ACE Tempest Re Head of Property CAT ◦ Chief Underwriter, ACE Financial Solutions ◦ SVP, Specialty Reinsurance, Allied World Assurance Tracey Gibbons ◦ SVP
Slide 8: Expanding into Higher Margin Business Lines: Property Catastrophe
3 EXPANDING INTO HIGHER MARGIN BUSINESS LINES 2019 Property Catastrophe Gross Written Premium by Property Catastrophe Portfolio Geography (1) • Managed by David Govrin and David Drury 33% 13% United States Bermuda • Began writing property catastrophe reinsurance United Kingdom 7% in Q1-19 Other • Ac
Slide 9: Expanding into Higher Margin Business Lines: Specialty Reinsurance
3 EXPANDING INTO HIGHER MARGIN BUSINESS LINES 2019 Specialty Gross Written Premium by Geography (1) Specialty Reinsurance Portfolio 14% 18% 2% • Managed by Tracey Gibbons United States United Kingdom • Team includes Rachael Afford and Mel Lopes Bermuda Other • The team has an appetite for many lines
Slide 10: Enterprise Risk Management
3 ENTERPRISE RISK MANAGEMENT Bermuda Reinsurer Leverage Metrics (Percent) • Low premium leverage and 400 asset leverage compared to peer group 300 • Lower catastrophe risk compared to most peers TPRE • Invested assets include 64% 200 invested in U.S. Treasuries/ Sovereign debt, cash and 100 money ma
Slide 11: Reinsurance Risk Management
3 REINSURANCE RISK MANAGEMENT • Reinsurance business plan complements our investment management strategy: premium, reserve and asset leverage lower than peer group Risk Management • Company-wide focus on risk management Culture • Robust underwriting and operational controls • Close interaction betwe
Slide 12: Favorable Accident Year Loss Development
3 FAVORABLE ACCIDENT YEAR LOSS DEVELOPMENT Reported 15 straight quarters with no prior year adverse development 106.0% 104.8% 103.8% 104.0% 104.0% 102.7% Q1 2020 combined ratio includes 6.5 102.0% 101.1% 101.2% points attributable to the impact of COVID-19 100.0% 98.4% 98.5% 98.0% 97.2% 97.0% 96.0%
Slide 13: Current Business Mix
3 CURRENT BUSINESS MIX 2019 Total Gross Written Premium by Geography (1) Full Year 2019 Performance ▪ 9% increase in gross written premiums to $632 million 24% 23% United States ▪ Top-line growth continues to be driven by accelerating United Kingdom rate increases in commercial lines Bermuda 1% Othe
Slide 14: Capital Markets Expertise to Drive Value
4 CAPITAL MARKETS EXPERTISE TO DRIVE VALUE • One area we focus on in solutions-driven business is the creation of long-term partnerships and optionality on high margin reinsurance premium with expense efficient distribution models and lower intermediation costs (closer linking of capital to risk) •
Slide 15: Improving Underwriting Profitability
5 IMPROVING UNDERWRITING PROFITABILITY Improving underwriting …Expected to generate more profitability… consistent returns over time Combined Ratio Return on Beginning Shareholders' Equity 106.0% 15.0% Goal: Mid 90's 11.0% Combined Ratio 104.8% 10.0% 103.8%104.0% 104.0% 102.7% 5.0% 4.0% 2.1% 102.0%
Slide 16: Differentiated Investment Strategy
6 DIFFERENTIATED INVESTMENT STRATEGY Investment Portfolio Mix Investment Update 8% ▪ $2.4 Billion of total net investments managed by Third Point LLC (1) ▪ 12.8% net investment return in 2019 from investments managed by Third Point LLC 64% ▪ Year-to-date net investment return of negative 2.8% 28% th
Slide 17: Poised to Deliver Improved Results
POISED TO DELIVER IMPROVED RESULTS • Transitioning to a Specialty Reinsurer • Attracting experienced talent • Expanding into higher margin business lines • Capital markets expertise to drive value • Improving underwriting profitability • Differentiated investment manager • Designed to deliver attrac
Slide 18: Key Financial Highlights
Key Financial Highlights For Information Purposes Only 18
Slide 19: Key Financial Highlights: Condensed Consolidated Income Statement
KEY FINANCIAL HIGHLIGHTS Condensed Consolidated Income Statement ($000s) Highlights Three months ended Years Ended • Generated $4.6 billion of 3/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016 gross premiums written Net premiums earned $ 146,315 $ 700,142 $ 621,442 $ 547,058 $ 590,190 from incep
Slide 20: Key Financial Highlights: Selected Balance Sheet Data
KEY FINANCIAL HIGHLIGHTS Selected Balance Sheet Data ($000s) Highlights As of 3/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016 • $286.0 million of capital Total assets $ 3,342,534 $ 3,439,694 $ 3,086,234 $ 4,671,794 $ 3,895,644 raised with 2013 IPO. Total liabilities 2,110,833 2,025,620 1,881,6
Slide 21: Non-GAAP Measures & Other Financial Metrics: Book Value per Share
NON-GAAP MEASURES & OTHER FINANCIAL METRICS Basic Book Value per Share and Diluted Book Value per Share Basic book value per share and diluted book value per share are non-GAAP financial measures and there are no comparable GAAP measures. Basic book value per share, as presented, is a non-GAAP finan
Slide 22: Non-GAAP Measures: Return on Beginning Shareholders' Equity
NON-GAAP MEASURES & OTHER FINANCIAL METRICS Return on Beginning Shareholders’ Equity Attributable to Third Point Re Common Shareholders Return on beginning shareholders’ equity attributable to Third Point Re common shareholders, as presented, is a non-GAAP financial measure. Return on beginning shar
Slide 23: Appendix
Appendix 23 For Information Purposes Only
Slide 24: Organizational Structure – Key Entities
ORGANIZATIONAL STRUCTURE – KEY ENTITIES Third Point Reinsurance Ltd. (Holding Company) 100% 100% 100% Third Point Reinsurance Third Point Re (UK) Third Point Re Company Ltd. Holdings Ltd. Marketing (UK) Limited (Class 4 Insurer) (Intermediate Holding Company) (Marketing Company ) 100% Third Point Re
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