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Investor Presentation
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This presentation contains forward-looking statements about
Forward-looking statements generally relate to future events or the future financial or operating performance of the Company. In some cases, you can identify forward-looking statements because they contain words such as ”may”, ”should”, ”should”, ”expects”, ”plans”, ” ‘anticipates’, ”could”, ”intends”, ”targets”, ”plans”, ”considers”, ”believes”, ”estimates” ‘, ”predicted”, ”could”, ”potential” or ”continue” or the negative form of these words or other similar terms or expressions which include expectations, strategy, plans or intentions of the Company. These forward-looking statements include, among other things, statements relating to our future financial performance, our business prospects and strategy, our anticipated financial condition, our liquidity and capital requirements and other similar matters. These forward-looking statements are based on management’s current data.
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expectations and assumptions regarding future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. These risks and uncertainties include, among others, future results of operations; financial situation; the impact of the current and global COVID-19 pandemic; general economic, political and other risks, including currency and stock market fluctuations and the uncertain economic environment; the volatility of our common stock price; and our expectations regarding market trends.
The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company’s forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements made by the Company. Although the Company may elect to update these forward-looking statements at some time in the future, the Company currently has no intention of doing so, except as required by applicable law. You should therefore not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this presentation. Other risks and uncertainties relating to the Company and its activities can be consulted in the “Risk Factors” section of the
Company profile
HISTORY OF STRONG GROWTH AND CONTINUOUS PROFITABILITY
Specialist insurer using data analytics and underwriting acumen to capitalize on market disruptions and deliver disruptive products that resonate with producers, other insurers and reinsurers
First earthquake insurer in
Multi-channel distribution serving residential and commercial customers
Admitted offers and E&S with national scope
Risk transfer strategy limits exposure to major events and reduces earnings volatility
Committed to the environment, social issues, governance, diversity
and inclusion initiatives
NASDAQ: HIGHLIGHTS OF THE YEAR PLMR AND Q4 2021
- PRG 2021 from
$535.2 million up 51% compared to 2020 -
- T4 PRG of
$149.9 million up 56% compared to Q4 2020
- T4 PRG of
- 2021 adjusted net income of
$53.4 million -
- Adjusted net income for the fourth quarter of
$19.2 million
- Adjusted net income for the fourth quarter of
- 2021 adjusted ROE of 14.1%
-
- Q4 adjusted return equity of 19.9%
- 2021 adjusted combined ratio of 76.1%
-
- Fourth quarter adjusted combined ratio of 70.7%
- New authorized two years
$100 million share buyback programJanuary 2022 - Publication of the second annual report on sustainability and citizenship in
February 2022 - Full-year 2022 adjusted net income target of
$80 for$85 million -
- Adjusted ROE of 19% at midrange
- Adjusted floor ROE of 14% with renewal of the global program
31. This slide contains non-GAAP measures. See GAAP reconciliation in appendix.
Selected Achievements 2021
HIGH INCREASE
PREDICTABILITY OF BENEFITS
STRATEGIC INITIATIVES
Driven exceptional revenue growth of 51% year-over-year
- Commercial earthquakes and residential earthquakes increased by 54% and 21% respectively
- Further product growth: Inland Marine 270%, Hawaii Hurricane 119% and Residential Flood 42%
• E&S company delivered
- New business lines (real estate errors and omissions and excess liability) and builder risk partnerships (TRU and PURE) scaled throughout the year
Concerted efforts to mitigate earnings volatility
- completed runoff from owners admitted All Risks and Specialties in
Louisiana
|
• |
Reduced probable maximum continental hurricane loss by approximately 40% |
|
• |
Implementation of global reinsurance to protect against multiple serious events and establish a floor ROE |
- Adjusted net income generated from
$53.4 million and an adjusted ROE of 14.1% for shareholders
Execution of several noteworthy initiatives
• Traction within PLMR-FRONT; targeting
- launched new
General losses professional liability and excess assets led by experienced and talented underwriters - New authorized two years
$100 million share buyback program - Launch of the ESG portal and publication of the second annual report on sustainability and citizenship
41. This slide contains non-GAAP measures. See GAAP reconciliation in appendix
2022 strategic initiatives
SUPPORT STRONG
GROWTH
- Keep up the momentum in the earthquake book
- Capitalize on the dislocation of
California insurance market and the earthquake in California
Authority (“AEC”) - Pursue additional rate increases and distribution expansion
- Further expansion of the Inland Marine division
- Seizing the Residential Flooding Market Opportunity Arising from
FEMA Initiative “Risk Rating 2.0”
MONETIZE RECENT
INVESTMENTS
- Nurture partnerships with carriers
- Expand existing programs
- Climb PLMR-FRONT at
$80 million for$100 million premiums managed - To construct
General losses Professional Liability and Surplus Property Divisions - Use the inside sales team to amplify agency distribution
IMPROVE GAINS
PREDICTABILITY
- Reduce continental exposure to hurricanes
- Generate additional subscription revenue from sectors of activity not exposed to disasters
- To improve paid revenue stream via PLMR-FRONT
- Renew global reinsurance protection
- Use quota share reinsurance to mitigate attrition losses
SCALE LE
ORGANIZATION
- Use technology to optimize costs and increase margins
- Invest in actuarial, analytics, underwriting and technology departments
- Improve expense efficiency in claims organization
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