Enstargroup.com Enstargroup.com Realising Value Investor Financial Supplement December 31, 2024 ENSTAR GROUP LIMITED
| enstargroup.com 2 Table of Contents Page Explanatory Notes 3 Financial Highlights 5 Book Value Per Share & Return On Equity 7 Consolidated Results by Segment 8 Ultimate Losses % Acquired Losses by Acquisition Year 12 Adjusted Ultimate Losses % Acquired Losses 13 Capital Position & Credit Ratings 14 Non-GAAP Measures 15 Reconciliation to Fully Diluted Book Value per Share 17 Reconciliation to Adjusted Return on Equity 18 Reconciliation to Adjusted Run-off Liability Earnings 21 Reconciliation to Adjusted Total Investment Return 24 Investment Composition 25
| enstargroup.com 3 Explanatory Notes About Enstar Enstar is a NASDAQ-listed leading global (re)insurance group that offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Australia, Liechtenstein and Belgium. A market leader in completing legacy acquisitions, Enstar has acquired over 120 companies and portfolios since its formation. For further information about Enstar, see www.enstargroup.com. Basis of Presentation In this Investor Financial Supplement, the terms "we," "us," "our," "Enstar," or "the Company" refer to Enstar Group Limited and its consolidated subsidiaries. All information contained herein is unaudited. Unless otherwise noted, amounts are in millions of U.S. Dollars, except for share and per share amounts. This Investor Financial Supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by Enstar with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Sixth Street Merger Agreement As announced in July 2024, Enstar has entered into a definitive merger agreement to be acquired by Sixth Street for $5.1 billion or $338 per ordinary share. A copy of the press release can be found by visiting the Investor Relations section of the Enstar corporate website at www.enstargroup.com. On November 6, 2024, a majority of the Company's shareholders voted to approve the Merger. Non-GAAP Financial Measures In addition to our key financial measures presented in accordance with GAAP, we present other non-GAAP financial measures that we use to manage our business, compare our performance against prior periods and against our peers, and as performance measures in our incentive compensation program. These non-GAAP financial measures provide an additional view of our operational performance over the long-term and provide the opportunity to analyze our results in a way that is more aligned with the way our management measures our underlying performance. The presentation of these non-GAAP financial measures, which may be defined and calculated differently by other companies, is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Some of the adjustments reflected in our non-GAAP measures are recurring items, such as the exclusion of adjustments to fair value changes and net realized (gains)/ losses on fixed maturities recognized in our statements of operations, the fair value of certain of our loss reserve liabilities for which we have elected the fair value option, and the amortization of fair value adjustments. Management makes these adjustments in assessing our performance so that the changes in fair value due to interest rate movements, which are applied to some but not all our assets and liabilities because of preexisting accounting elections, do not impair comparability across reporting periods. It is important for the readers of our periodic filings to understand that these items will recur from period to period. However, we exclude these items for the purpose of presenting a comparable view across reporting periods of the impact of our underlying claims management and investments without the effect of interest rate fluctuations on assets that we anticipate holding to maturity and non-cash changes to the fair value of our reserves. Similarly, our non-GAAP measures reflect the exclusion of certain items that we deem to be nonrecurring, unusual or infrequent when the nature of the charge or gain is such that it is not reasonably likely that such item may recur within two years, nor was there a similar charge or gain in the preceding two years. This includes adjustments related to bargain purchase gains on acquisitions of businesses, net gains or losses on sales of subsidiaries, net assets of held for sale or disposed subsidiaries classified as discontinued operations, and other items that we separately disclose. Refer to pages 15 to 24 for further details.
4 Explanatory Notes (continued) Investment Composition In certain instances, U.S. GAAP requires, in part, that invested assets be classified based upon the legal form of the investment which may not correspond to management’s view of the underlying economic exposure. For example: 1. Enstar has certain investments in public shares of exchange traded funds (“ETFs”) where the underlying exposure of the ETF is investment grade fixed maturities, and Enstar also has certain privately held equities which management evaluates based on the underlying economic exposures. U.S. GAAP requires that these investments be classified as “Equities”. 2. Enstar has certain private equity funds that are collectively held in a limited partnership, which management evaluates based on the nature of the underlying investments within these funds. U.S. GAAP requires that the investment be classified as “Private equity funds” within “Other Investments”. Where relevant, we have disclosed the underlying economic exposure of our investments in order to be consistent with the manner in which management views the underlying portfolio composition. Refer to pages 25 and 26 for further details. Cautionary Statement This Investor Financial Supplement contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Investors are cautioned that any such forward- looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Important risk factors regarding Enstar can be found under the heading "Risk Factors" in our filings with the Securities and Exchange Commission, including our Annual Reports on Form 10-K and our Quarterly Reports on Form 10- Q. Furthermore, Enstar undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law.
| enstargroup.com 5 Three Months Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Key Income Metrics Return on Equity (“ROE”) 2.7 % 13.7 % 10.7 % 24.2 % Adjusted ROE (1) 4.5 % 9.0 % 12.7 % 18.8 % Basic net earnings per share $ 10.02 $ 40.14 $ 36.83 $ 69.22 Diluted net earnings per share $ 9.76 $ 39.71 $ 35.90 $ 68.47 Key Run-off Metrics Average net loss reserves $ 11,181 $ 11,798 Run-off liability earnings (“RLE”) 1.3 % 1.1 % Average adjusted net loss reserves (1) $ 12,047 $ 12,684 Adjusted RLE (1) 1.2 % 1.8 % Key Investment Return Metrics Average aggregate invested assets $ 18,041 $ 18,472 $ 17,911 $ 18,607 Annualized total investment return (“TIR”) 3.8 % 14.8 % 6.3 % 7.2 % Annualized investment book yield 4.39 % 4.00 % 4.35 % 3.86 % (Loss) income from equity method investments $ 11 $ (9) $ (18) $ 13 Adjusted average aggregate invested assets (1) $ 18,661 $ 19,445 $ 18,621 $ 19,769 Annualized adjusted TIR (1) 7.1 % 5.5 % 6.1 % 5.3 % Share Repurchases Ordinary shares repurchased: Shares — 841,735 — 2,439,447 Cost $ — $ 191 $ — $ 532 Average price per share $ — $ 227.18 $ — $ 233.92 As of December 31, 2024 December 31, 2023 Key Shareholder Metrics Ordinary shareholder’s equity $ 5,581 $ 5,025 Total Enstar shareholders’ equity $ 6,091 $ 5,535 Book value per ordinary share (“BVPS”) $ 380.29 $ 343.45 Fully diluted BVPS (“FDBVPS”) (1) $ 368.47 $ 336.72 Change in FDBVPS 9.4 % 30.0 % Total ordinary shares outstanding 14,675,686 14,631,055 Fully diluted ordinary shares outstanding 15,146,341 14,923,245 Key Balance Sheet Metrics Total assets $ 20,407 $ 20,913 Debt obligations $ 1,833 $ 1,831 Total liabilities $ 14,310 $ 15,265 Total investable assets to ordinary shareholders’ equity 3.23x 3.63x Total net loss reserves to ordinary shareholders’ equity 1.93x 2.31x Debt to total capitalization attributable to Enstar 23.1 % 24.9 % Financial Highlights (1) Non-GAAP financial measure, refer to pages 15 to 24 for explanatory notes and a reconciliation to the most directly comparable GAAP measure.
| enstargroup.com 6 Year ended December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31,2020 Key Income Metrics Return on equity 10.7 % 24.2 % (15.6) % 7.9 % 38.4 % Adjusted return on equity (1) 12.7 % 18.8 % (1.1) % 10.1 % 41.9 % Key Run-off Metrics Average net loss reserves $ 11,181 $ 11,798 $ 11,969 $ 10,344 $ 8,352 Run-off liability earnings 1.3 % 1.1 % 6.3 % 3.9 % 0.4 % Average adjusted net loss reserves (1) $ 12,047 $ 12,684 $ 12,637 $ 10,455 $ 8,129 Adjusted run-off liability earnings (1) 1.2 % 1.8 % 3.9 % 3.6 % 3.5 % Key Investment Return Metrics Average investable assets $ 17,911 $ 18,607 $ 20,079 $ 20,840 $ 15,443 Total investment return 6.3 % 7.2 % (9.0) % 2.0 % 14.6 % Investment book yield 4.35 % 3.86 % 2.47 % 1.84 % 2.53 % Income (losses) from equity method investments $ (18) $ 13 $ (74) $ 93 $ 239 Average adjusted investable assets (1) $ 18,621 $ 19,769 $ 21,165 $ 20,561 $ 15,153 Adjusted total investment return (1) 6.1 % 5.3 % (0.2) % 3.6 % 12.4 % Key Shareholder Metrics Ordinary shareholders’ equity $ 5,581 $ 5,025 $ 4,464 $ 5,813 $ 6,326 Total Enstar shareholders’ equity $ 6,091 $ 5,535 $ 4,974 $ 6,323 $ 6,836 Basic book value per ordinary share $ 380.29 $ 343.45 $ 262.24 $ 329.20 $ 293.97 Fully diluted book value per ordinary share (1) $ 368.47 $ 336.72 $ 258.92 $ 323.43 $ 288.56 Change in fully diluted book value per ordinary share 9.4 % 30.0 % (19.9) % 12.1 % 40.7 % Ordinary shares repurchased: Shares — 2,439,447 697,580 4,010,695 178,280 Cost $ — $ 532 $ 163 $ 942 $ 26 Average price per share $ — $ 233.92 $ 233.92 $ 234.82 $ 145.87 Total ordinary shares outstanding 14,675,686 14,631,055 17,022,420 17,657,944 21,519,602 Fully diluted ordinary shares outstanding 15,146,341 14,923,245 17,240,591 17,973,149 21,993,598 Key Balance Sheet Metrics Total assets $ 20,407 $ 20,913 $ 22,154 $ 24,656 $ 21,789 Debt obligations $ 1,833 $ 1,831 $ 1,829 $ 1,691 $ 1,373 Total liabilities $ 14,310 $ 15,265 $ 16,826 $ 17,924 $ 14,574 Total investable assets to ordinary shareholders’ equity 3.23x 3.63x 4.38x 3.73x 2.73x Total net loss reserves to ordinary shareholders’ equity 1.93x 2.31x 2.69x 2.05x 1.39x Debt to total capitalization attributable to Enstar 23.1 % 24.9 % 26.9 % 21.1 % 16.7 % Financial Highlights - Five Years (1) Non-GAAP financial measure, refer to pages 15 to 24 for explanatory notes and a reconciliation to the most directly comparable GAAP measure.
| enstargroup.com 7 Book Value Per Share & Return on Equity - Five Years Growth in Book Value Per Ordinary Share and Fully Diluted Book Value Per Ordinary Share* Annual % Change $293.97 $329.20 $262.24 $343.45 $380.29 $288.56 $323.43 $258.92 $336.72 $368.47 Book Value Per Ordinary Share Fully Diluted Book Value Per Ordinary Share* 2020 2021 2022 2023 2024 0 50 100 150 200 250 300 350 400 Return on Equity and Adjusted Return on Equity* 38.4% 7.9% (15.6)% 24.2% 10.7% 41.9% 10.1% (1.1)% 18.8% 12.7% Return on Equity Adjusted Return on Equity* 2020 2021 2022 2023 2024 12.0% 12.1% (20.3)% (19.9)% 31.0% 30.0% 10.7% 9.4% 40.8% 40.7% * Non-GAAP financial measure, refer to page 15 for further details. See also pages 17, 19 and 20 for a reconciliation to the most directly comparable GAAP measure.
| enstargroup.com 8 Consolidated Results by Segment - Q4 2024 Three Months Ended December 31, 2024 Run-off Investments Corporate and Other (1) Total REVENUES Net premiums earned $ 13 $ — $ — $ 13 Net investment income — 173 — 173 Net realized losses — (11) — (11) Fair value changes in trading securities, funds held and other investments — 56 — 56 Other income 31 — 23 54 Total revenues 44 218 23 285 EXPENSES Net incurred losses and loss adjustment expenses Current period 8 — — 8 Prior period (59) — 5 (54) Total net incurred losses and loss adjustment expenses (51) — 5 (46) Defendant asbestos and environmental expenses (income) (2) 35 — (6) 29 Amortization of net deferred charge assets — — 31 31 Acquisition costs 3 — — 3 General and administrative expenses 39 11 46 96 Total expenses 26 11 76 113 INCOME (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 18 207 (53) 172 Loss from equity method investments — 11 — 11 SEGMENT INCOME (LOSS) $ 18 $ 218 (53) 183 Interest expense (22) (22) Net foreign exchange gains 54 54 Income tax expense (59) (59) NET (LOSS) INCOME ATTRIBUTABLE TO ENSTAR (80) 156 Dividends on preferred shares (9) (9) NET (LOSS) INCOME ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (89) $ 147 (1) Effective January 1, 2024, Assumed Life and Legacy Underwriting were determined to no longer meet the definition of reportable segments and their residual income and loss activities were prospectively included in Corporate and Other activities. Activities prior to January 1, 2024 are recorded in their respective segments. (2) Includes the amortization of fair value adjustments associated with the acquisition of DCo, LLC (“DCo”) and Morse TEC LLC (“Morse TEC”) for Corporate and Other activities.
| enstargroup.com 9 Consolidated Results by Segment - Q4 2023 Three Months Ended December 31, 2023 Run-off Former Assumed Life Investments Corporate and Other (1) Total REVENUES Net premiums earned $ 14 $ — $ — $ — $ 14 Net investment income — — 176 — 176 Net realized losses — — (10) — (10) Fair value changes in trading securities, funds held and other investments — — 306 — 306 Other income (expense)(2) 2 1 — (2) 1 Total revenues 16 1 472 (2) 487 EXPENSES Net incurred losses and loss adjustment expenses Current period 12 — — — 12 Prior period (154) — — 58 (96) Total net incurred losses and loss adjustment expenses (142) — — 58 (84) Defendant asbestos and environmental expenses (2) (3) 3 — — 2 5 Amortization of net deferred charge assets — — — 31 31 Acquisition costs 4 — — — 4 General and administrative expenses 47 — 10 47 104 Total expenses (88) — 10 138 60 INCOME (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 104 1 462 (140) 427 Loss from equity method investments — — (9) — (9) SEGMENT INCOME (LOSS) $ 104 $ 1 $ 453 (140) 418 Interest expense (23) (23) Net foreign exchange losses (24) (24) Income tax benefit 238 238 NET INCOME 51 609 Less: Net income attributable to noncontrolling interests (1) (1) NET INCOME ATTRIBUTABLE TO ENSTAR 50 608 Dividends on preferred shares (9) (9) NET INCOME ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ 41 $ 599 (1) Legacy Underwriting had no revenue or income activity for the three months ended December 31, 2023 and therefore are excluded from the table above. (2) Defendent Asbestos and Environment expenses were reclassified from Other income (expenses) to Defendant asbestos and environment expenses. (3) Includes the amortization of fair value adjustments associated with the acquisition of DCo, LLC (“DCo”) and Morse TEC LLC (“Morse TEC”) for Corporate and Other activities.
| enstargroup.com 10 Consolidated Results by Segment - YTD Q4 2024 Year Ended December 31, 2024 Run-off Investments Corporate and Other (1) Total REVENUES Net premiums earned $ 40 $ — $ — $ 40 Net investment income — 651 — 651 Net realized losses — (9) — (9) Fair value changes in trading securities, funds held and other investments — 456 — 456 Other income 39 — 28 67 Total revenues 79 1,098 28 1,205 EXPENSES Net incurred losses and loss adjustment expenses Current period 23 — — 23 Prior period (182) — 33 (149) Total net incurred losses and loss adjustment expenses (159) — 33 (126) Defendant asbestos and environmental expenses (2) 32 — 8 40 Amortization of net deferred charge assets — — — 117 117 Acquisition costs 9 — — 9 Goodwill impairment 63 — — 63 General and administrative expenses 178 40 173 391 Total expenses 123 40 331 494 INCOME (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES (44) 1,058 (303) 711 Loss from equity method investments — (18) — (18) SEGMENT INCOME (LOSS) $ (44) $ 1,040 (303) 693 Interest expense (89) (89) Net foreign exchange gains 39 39 Income tax expense (62) (62) NET (LOSS) INCOME (415) 581 Less: Net income attributable to noncontrolling interests (5) (5) NET (LOSS) INCOME ATTRIBUTABLE TO ENSTAR (420) 576 Dividends on preferred shares (36) (36) NET (LOSS) INCOME ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (456) $ 540 (1) Effective January 1, 2024, Assumed Life and Legacy Underwriting were determined to no longer meet the definition of reportable segments and their residual income and loss activities were prospectively included in Corporate and other activities. Activities prior to January 1, 2024 are recorded in their respective segments. (2) Includes the amortization of fair value adjustments associated with the acquisition of DCo, LLC (“DCo”) and Morse TEC LLC (“Morse TEC”) for Corporate and Other activities.
| enstargroup.com 11 Consolidated Results by Segment - YTD Q4 2023 Year Ended December 31, 2023 Run-off Former Assumed Life (1) Investments Corporate and Other (1) Total REVENUES Net premiums earned $ 43 $ — $ — $ — $ 43 Net investment income — — 647 — 647 Net realized losses — — (65) — (65) Fair value changes in trading securities, funds held and other investments — — 528 — 528 Other income (2) 9 277 — 2 288 Total revenues 52 277 1,110 2 1,441 EXPENSES Net incurred losses and loss adjustment expenses Current period 30 — — — 30 Prior period (226) — — 95 (131) Total net incurred losses and loss adjustment expenses (196) — — 95 (101) Defendant asbestos and environmental (income) expenses (2)(3) (1) — — 13 12 Amortization of net deferred charge assets — — — 106 106 Acquisition costs 10 — — — 10 General and administrative expenses 177 — 43 149 369 Total expenses (10) — 43 363 396 INCOME (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES 62 277 1,067 (361) 1,045 Income from equity method investments — — 13 — 13 SEGMENT INCOME (LOSS) $ 62 $ 277 $ 1,080 (361) 1,058 Interest expense (90) (90) Income tax benefit 250 250 NET (LOSS) INCOME (201) 1,218 Less: Net income attributable to noncontrolling interests (100) (100) NET (LOSS) INCOME ATTRIBUTABLE TO ENSTAR (301) 1,118 Dividends on preferred shares (36) (36) NET (LOSS) INCOME ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS $ (337) $ 1,082 (1) Legacy Underwriting had no revenue or income activity for the year ended December 31, 2023 and therefore are excluded from the table above. (2) Defendant Asbestos and Environment expenses were reclassified from Other income (expenses) to Defendant asbestos and environment expenses. (3) Includes the amortization of fair value adjustments associated with the acquisition of DCo, LLC (“DCo”) and Morse TEC LLC (“Morse TEC”) for Corporate and Other activities.
| enstargroup.com 12 Ultimate Losses % Acquired Losses by Acquisition Year Ultimate Losses for the Years Ended December 31, Assumed and Acquired net losses and LAE Acquisition Year Third Party Related Party and Transfers Between Acquisition Years Total 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (in millions of U.S. dollars) (Unaudited) 2014 and prior(1) $ 4,649 $ — $ 4,649 $ 4,349 $ 4,171 $ 4,004 $ 4,009 $ 4,033 $ 3,972 $ 3,904 $ 3,860 $ 3,828 $ 3,840 2015 1,756 — 1,756 1,669 1,368 1,326 1,247 1,219 1,199 1,178 1,166 1,151 1,144 2016 1,357 — 1,357 1,348 1,382 1,364 1,355 1,334 1,324 1,310 1,291 1,295 2017 1,536 — 1,536 1,452 1,354 1,438 1,488 1,399 1,216 1,305 1,338 2018 2,757 — 2,757 2,724 2,682 2,664 2,619 2,561 2,573 2,569 2019 1,817 — 1,817 1,784 1,751 1,704 1,645 1,682 1,734 2020(2) 2,191 (782) 1,409 1,480 1,507 1,627 1,648 1,678 2021(3) 3,710 840 4,550 4,400 3,965 3,786 3,524 2022(2) 2,649 782 3,431 3,360 3,282 3,226 2023 2,215 — 2,215 2,248 2,323 2024 1,723 — 1,723 1,697 Ultimate Losses as a Percentage of Assumed and Acquired Net Loss Reserves Acquisition Year At End of Year of Acquisition Years thereafter: One Two Three Four Five Six Seven Eight Nine Ten (Unaudited) 2014 and prior (4) 100 % 94 % 90 % 86 % 86 % 87 % 85 % 84 % 83 % 82 % 83 % 2015 95 % 78 % 76 % 71 % 69 % 68 % 67 % 66 % 66 % 65 % 2016 99 % 102 % 101 % 100 % 98 % 98 % 97 % 95 % 95 % 2017 95 % 88 % 94 % 97 % 91 % 79 % 85 % 87 % 2018 99 % 97 % 97 % 95 % 93 % 93 % 93 % 2019 98 % 96 % 94 % 91 % 93 % 95 % 2020 105 % 107 % 115 % 117 % 119 % 2021 97 % 87 % 83 % 77 % 2022 98 % 96 % 94 % 2023 101 % 105 % 2024 98 % (1) For the 2014 and prior acquisition years, the net reserves shown are as at December 31, 2014, and are not the net reserves assumed and acquired. (2) $782 million of Assumed and Acquired net losses and LAE relating to the Aspen ADC have been transferred from the 2020 to the 2022 acquisition year. Any PPD on this portfolio that occurred in the years ended December 31 2021 and 2020 has not been reclassified between periods. (3) 2021 Assumed and Acquired net losses and LAE - Related Party of $840 million relates to the acquisition of Enhanzed Re. (4) The 2014 acquisition year includes losses relating to our StarStone business when this business was actively managed within our Legacy Underwriting segment.
| enstargroup.com 13 Adjusted Ultimate Losses % Acquired Losses* Adjusted Assumed and Acquired net losses and LAE* Adjusted Ultimate Losses* for the Years Ended December 31, (1) Acquisition Year Third Party Related Party and Transfers Between Acquisition Years Total 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (in millions of U.S. dollars) (Unaudited) 2014 and prior(1) $ 3,987 $ — $ 3,987 $ 3,749 $ 3,577 $ 3,450 $ 3,334 $ 3,237 $ 3,174 $ 3,102 $ 3,058 $ 3,052 $ 3,058 2015 1,782 — 1,782 1,690 1,384 1,339 1,258 1,228 1,207 1,185 1,172 1,156 1,149 2016 1,495 — 1,495 1,486 1,523 1,482 1,466 1,430 1,422 1,400 1,378 1,388 2017 1,719 — 1,719 1,605 1,518 1,518 1,479 1,445 1,415 1,452 1,474 2018 2,921 — 2,921 2,871 2,762 2,693 2,655 2,636 2,611 2,594 2019 2,340 — 2,340 2,307 2,177 2,085 2,031 2,070 2,148 2020(2) 2,205 (782) 1,423 1,494 1,521 1,641 1,662 1,692 2021(3) 3,709 1,611 5,320 5,178 4,822 4,612 4,347 2022(2) 2,649 782 3,431 3,360 3,282 3,226 2023 2,215 — 2,215 2,248 2,323 2024 1,723 — 1,723 1,697 Adjusted Ultimate Losses* as a Percentage of Adjusted Assumed and Acquired Net Loss Reserves* At End of Year of Acquisition Years thereafter: Acquisition Year One Two Three Four Five Six Seven Eight Nine Ten (Unaudited) 2014 and prior 100 % 94 % 90 % 87 % 84 % 81 % 80 % 78 % 77 % 77 % 77 % 2015 95 % 78 % 75 % 71 % 69 % 68 % 66 % 66 % 65 % 64 % 2016 99 % 102 % 99 % 98 % 96 % 95 % 94 % 92 % 93 % 2017 93 % 88 % 88 % 86 % 84 % 82 % 84 % 86 % 2018 98 % 95 % 92 % 91 % 90 % 89 % 89 % 2019 99 % 93 % 89 % 87 % 88 % 92 % 2020 105 % 107 % 115 % 117 % 119 % 2021 97 % 91 % 87 % 82 % 2022 98 % 96 % 94 % 2023 101 % 105 % 2024 98 % (1) For the 2014 and prior acquisition year, the adjusted net reserves shown are as at December 31, 2013 and are not the adjusted net reserves assumed and acquired. (2) $782 million of Assumed and Acquired net losses and LAE relating to the Aspen ADC have been transferred from the 2020 to the 2022 acquisition year. Any PPD on this portfolio that occurred in the years ended December 31 2021 and 2020 has not been reclassified between periods. (3) 2021 Adjusted Assumed and Acquired net losses and LAE - Related Party of $1,611 million relates to the acquisition of Enhanzed Re and the transfer of StarStone International into the Run-Off segment. * Non-GAAP financial measure. Adjusted ultimate losses presented in the table represent the cumulative impact on adjusted acquired & assumed net loss reserves of adjusted PPD. Reconciliations of adjusted acquired and assumed net loss reserves and adjusted PPD are included on pages ## to ## in the Non-GAAP measures section.
| enstargroup.com 14 Capital Position & Credit Ratings Credit ratings (1) Standard and Poor’s Fitch Ratings Long-term issuer BBB+ (Outlook: Stable) BBB+ (Outlook: Stable) 2029 Senior Notes BBB+ BBB 2031 Senior Notes BBB BBB 2040 and 2042 Junior Subordinated Notes BBB- BBB- Series D and E Preferred Shares BBB- BBB- (1) Credit ratings are provided by third parties, Standard & Poor’s and Fitch Ratings, and are subject to certain limitations and disclaimers. For information on these ratings, refer to the rating agencies’ websites and other publications. Total Capitalization $7,930 $7,479 $5,581 $5,025 $510 $510 $6 $113 $1,833 $1,831 23.1% 24.5% 29.5% 31.3% Debt and Series D and E Preferred Shares to total capitalization Debt to total capitalization Debt obligations NCI Series D and E Preferred Shares Ordinary shareholders' equity December 31, 2024 December 31, 2023 Agency ratings are not a recommendation to buy, sell or hold any of our securities and may be revised or withdrawn at any time by the issuing organization. Each agency's rating should be evaluated independently of any other agency's rating. For information on risks related to our credit ratings, refer to "Item 1A. Risk Factors - Risks Relating to Liquidity and Capital Resources" and "Item 1A. Risk Factors - Risks Relating to Ownership of our Shares" in our Annual Report on Form 10-K for the year ended December 31, 2024. In March 2024, Cavello Bay Reinsurance Limited (“Cavello”), a wholly-owned subsidiary of Enstar, was assigned an S&P Insurer Financial Strength Rating of ‘A’ with stable outlook. Cavello is Enstar’s primary non-life run-off consolidator, and a Class 3B reinsurer. Total capitalization attributable to Enstar excluding NCI of $7.9 billion as of December 31, 2024 and $7.4 billion as of December 31, 2023. Debt and Series D and E preferred shares to total capitalization attributable to Enstar excluding NCI was 29.6% and 31.8% as of December 31, 2024 and December 31, 2023, respectively. Debt to total capitalization attributable to Enstar was 23.1% and 24.9% as of December 31, 2024 and December 31, 2023, respectively.
15 Non-GAAP Measures Non-GAAP Measure Definition Purpose of Non-GAAP Measure over GAAP Measure Fully diluted 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 (which include restricted shares, restricted share units, directors’ restricted share units, performance share units and JSOP shares(1)) on the number of ordinary shares outstanding Increases the number of ordinary shares to reflect the exercise of equity awards granted but not yet vested as, over the long term, this presents both management and investors with a more economically accurate measure of the realizable value of shareholder returns by factoring in the impact of share dilution. We use this non-GAAP measure in our incentive compensation program. Adjusted return on equity (%) Adjusted operating income (loss) attributable to Enstar ordinary shareholders divided by adjusted opening Enstar ordinary shareholder's equity Calculating the operating income (loss) as a percentage of our adjusted opening Enstar ordinary shareholders' equity provides a more consistent measure of the performance of our business by enabling comparison between the financial periods presented. We eliminate the impact of fair value changes and net realized (gains) losses on fixed maturities and funds held-directly managed and the change in fair value of insurance contracts for which we have elected the fair value option, as: • we typically hold most of our fixed maturities until the earlier of maturity or the time that they are used to fund any settlement of related liabilities which are generally recorded at cost; and • removing the fair value option improves comparability since there are limited acquisition years for which we elected the fair value option. Therefore, we believe that excluding their impact on our net income improves comparability of our core operational performance across periods. We include fair value adjustments as non-GAAP adjustments to the adjusted operating income (loss) attributable to Enstar ordinary shareholders as they are non-cash charges that are not reflective of the impact of our claims management strategies on our loss portfolios. We eliminate the impact of any goodwill impairment charges as they occur infrequently and their elimination improves comparability between periods. We eliminate the impact of expenses related to the Merger Agreement as we deem these to be out of the ordinary course of business and to help provide a more accurate measure of performance across periods. Adjusted operating income (loss) attributable to Enstar ordinary shareholders (numerator) Net income (loss) attributable to Enstar ordinary shareholders, adjusted for: -fair value changes and net realized (gains) losses on fixed maturities and funds held- directly managed, -change in fair value of insurance contracts for which we have elected the fair value option (2), -amortization of fair value adjustments, -net gain/loss on purchase and sales of subsidiaries (if any) -net income from discontinued operations (if any), -goodwill impairment charges -expenses related to the Merger Agreement -tax effects of adjustments, and -adjustments attributable to noncontrolling interests Adjusted opening Enstar ordinary shareholders' equity (denominator) Opening Enstar ordinary shareholders' equity, less: -fair value changes on fixed maturities and funds held-directly managed, -fair value of insurance contracts for which we have elected the fair value option (2), -fair value adjustments, and -net assets of held for sale or disposed subsidiaries classified as discontinued operations (if any) Adjusted total investment return (%) Adjusted total investment return (dollars) recognized in net income for the applicable period divided by period average adjusted total investable assets. Provides a key measure of the return generated on the capital held in the business and is reflective of our investment strategy. Provides a consistent measure of investment returns as a percentage of all assets generating investment returns. We adjust our investment returns to eliminate the impact of the change in fair value of fixed maturities (both credit spreads and interest rates), as we typically hold most of these investments until the earlier of maturity or used to fund any settlement of related liabilities which are generally recorded at cost. Adjusted total investment return ($) (numerator) Total investment return (dollars), adjusted for: -fair value changes in fixed maturities, trading and funds held-directly managed; and -unrealized (gains) losses on fixed maturities, AFS included within OCI, net of reclassification adjustments and excluding foreign exchange. Adjusted average aggregate total investable assets (denominator) Total average investable assets, adjusted for: -net unrealized (gains) losses on fixed maturities, AFS included within AOCI -fair value changes on fixed maturities, trading and funds held - directly managed
| enstargroup.com 16 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 reserves provides a more meaningful and comparable measurement of the impact of our claims management strategies on our loss portfolios across acquisition years and also to our overall financial periods. We use this measure to evaluate the impact of our claims management strategies because it provides visibility into our ability to settle our claims obligations for amounts less than our initial estimate at the point of acquiring the obligations. The following components of periodic recurring net incurred losses and LAE and net loss reserves are not considered key components of our claims management performance for the following reasons: • Prior to the settlement of the contractual arrangements, the results of our Legacy Underwriting segment were economically transferred to a third party primarily through use of reinsurance and a Capacity Lease Agreement(4); as such, the results were not a relevant contribution to Adjusted RLE, which is designed to analyze the impact of our claims management strategies(3); • The change in fair value of insurance contracts for which we have elected the fair value option(2) has been removed to support comparability between the two acquisition years for which we elected the fair value option in reserves assumed and the acquisition years for which we did not make this election (specifically, this election was only made in the 2017 and 2018 acquisition years and the election of such option is irrevocable); and • The amortization of fair value adjustments are non-cash charges that obscure our trends on a consistent basis. We include our performance in managing claims and estimated future expenses on our defendant A&E liabilities because such performance is relevant to assessing our claims management strategies even though such liabilities are not included within the loss reserves. We use this measure to assess the performance of our claim strategies and part of the performance assessment of our past acquisitions. Adjusted prior period development (numerator) Prior period net incurred losses and LAE, adjusted to: Remove: -Legacy Underwriting(3) operations -amortization of fair value adjustments, -change in fair value of insurance contracts for which we have elected the fair value option (2), and Add: -the reduction/(increase) in estimates of net ultimate liabilities and reduction in estimated future expenses of our defendant A&E liabilities. Adjusted net loss reserves (denominator) Net losses and LAE, adjusted to: Remove: -Legacy Underwriting(3) net loss reserves -current period net loss reserves -net fair value adjustments associated with the acquisition of companies, -the fair value adjustments for contracts for which we have elected the fair value option (2) and Add: -net nominal defendant A&E liability exposures and estimated future expenses. (1) The JSOP award became dilutive for the first time for the year ended December 31, 2024 and therefore had not been previously identified as a component of this non-GAAP measure. However, its inclusion is consistent with the effect of all other potentially dilutive securities. Refer to Note 21 - "Earnings per Share" of our Annual Report on Form 10-K for the year ended December 31, 2024 for more detail. (2) Comprises the discount rate and risk margin components. (3) As of January 1, 2024, not applicable. Refer to Note 5 - "Segment Information" of our Annual Report on Form 10-K for the period ended December 31, 2024 for more detail. (4) The reinsurance contractual arrangements (including the Capacity Lease Agreement) described in Note 6 to our consolidated financial statements included within in our Annual Report on Form 10-K for the year ended December 31, 2023 were settled during the second quarter of 2023, and we did not record any transactions in the Legacy Underwriting segment in 2023.
| enstargroup.com 17 Reconciliation to Fully Diluted Book Value Per Share For the Year Ended December 31, 2024 2023 2022 Equity (1) Ordinary Shares Per Share Amount Equity (1) Ordinary Shares Per Share Amount Equity (1) Ordinary Shares Per Share Amount (in millions of U.S. dollars, except share and per share data) Book value per ordinary share $ 5,581 14,675,686 $ 380.29 $ 5,025 14,631,055 $ 343.45 $ 4,464 17,022,420 $ 262.24 Non-GAAP adjustment: Share-based compensation plans 266,335 292,190 218,171 JSOP (2) 204,320 — — Fully diluted book value per ordinary share* $ 5,581 15,146,341 $ 368.47 $ 5,025 14,923,245 $ 336.72 $ 4,464 17,240,591 $ 258.92 For the Year Ended December 31, 2021 2020 Equity (1) Ordinary Shares Per Share Amount Equity (1) Ordinary Shares Per Share Amount (in millions of U.S. dollars, except share and per share data) Book value per ordinary share $ 5,813 17,657,944 $ 329.20 $ 6,326 21,519,602 $ 293.97 Non-GAAP adjustments: Share-based compensation plans 315,205 — 298,095 Warrants — — 20 175,901 Fully diluted book value per ordinary share* $ 5,813 17,973,149 $ 323.43 $ 6,346 21,993,598 $ 288.56 (1) Equity comprises Enstar ordinary shareholders' equity, which is calculated as Enstar shareholders' equity less preferred shares ($510 million as of December 31, 2024, 2023, 2022, 2021, and 2020, respectively), prior to any non-GAAP adjustments. (2) )The JSOP award made to our CEO included a condition that specified a hurdle price $315.53 as of January 20, 2025) compared to our market observable ordinary share price for the award to vest, which is the greater of the closing share price and the 10-day Volume Weighted Average Price. As of December 31, 2024, the closing share price of our ordinary shares was $322.05 and the 10-day Volume Weighted Average Price was $322.22. The shares are calculated as the market price less $205.89, multiplied by the 565,630 shares comprising the award, divided by the market price. As a result, the JSOP award was dilutive for the year ended December 31, 2024. Additionally, 20% of the award was dependent on a 10% compounded annual growth rate in Fully Diluted Book Value Per Share from January 1, 2020, which was also met through the year ended December 31, 2024. Refer to Note 22 to the Consolidated Financial Statements included within the 2024 Form 10-K for additional information on the JSOP.
| enstargroup.com 18 Reconciliation to Adjusted Return on Equity - QTD Q4 2024 and 2023 (1) Net (loss) earnings comprises net (loss) earnings attributable to Enstar ordinary shareholders, prior to any non-GAAP adjustments. Opening equity comprises Enstar ordinary shareholders' equity, which is calculated as opening Enstar shareholders' equity less preferred shares ($510 million), prior to any non-GAAP adjustments. (2) Represents the net realized and unrealized losses (gains) related to fixed maturity securities. Our fixed maturity securities are held directly on our balance sheet and also within the "Funds held - directly managed" balance. (3) Comprises the discount rate and risk margin components. (4) Represents an aggregation of the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates, calculated at the applicable jurisdictional tax rate. (5) Represents the impact of the adjustments on the net earnings (loss) attributable to noncontrolling interests associated with the specific subsidiaries to which the adjustments relate. * Non-GAAP financial measure. (1) Net income comprises net income attributable to Enstar ordinary shareholders, prior to any non-GAAP adjustments. Opening equity comprises Enstar ordinary shareholders' equity, which is calculated as opening Enstar shareholders' equity less preferred shares ($510 million), prior to any non-GAAP adjustments. (2) Net realized gains (losses) on fixed maturities, AFS are included in net realized gains (losses) in our consolidated statements of operations. Fair value changes on fixed maturities, trading and funds held - directly managed are included in fair value changes in trading securities, funds held and other investments in in our consolidated statements of operations. (3) Our fixed maturities are held directly on our balance sheet and also within the "Funds held" balance. (4) Comprises the discount rate and risk margin components, net of reinsurance recoverables. (5) Represents an aggregation of the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates, calculated at the applicable jurisdictional tax rate. * Non-GAAP financial measure. Three Months Ended December 31, 2024 December 31, 2023 Net income (loss) (1) Opening equity (1) (Adj) ROE Net income (loss) (1) Opening equity (1) (Adj) ROE (in millions of U.S. dollars) Net income/Opening equity/ROE/Annualized ROE (1) $ 147 $ 5,547 2.7 % $ 599 $ 4,367 13.7 % Non-GAAP adjustments: Remove: Net realized (gains) losses on fixed maturities, AFS (2) / Cumulative fair value changes to fixed maturities, AFS (3) 11 239 10 634 Fair value changes on fixed maturities, trading (2) / Fair value changes on fixed maturities, trading (3) 33 190 (108) 366 Fair value changes on funds held - directly managed (2) / Fair value changes on funds held - directly managed (3) 60 61 (96) 222 Change in fair value of insurance contracts for which we have elected the fair value option / Fair value of insurance contracts for which we have elected the fair value option (4) 3 (232) 54 (292) Amortization of fair value adjustments / Fair value adjustments 2 (96) 4 (112) Gain on sale of subsidiary (4) — — — Goodwill impairment charges — — — — Expenses related to the Merger Agreement 2 — — — Tax effects of adjustments (5) 2 — 5 — Adjusted net income /Adjusted opening equity/Adjusted ROE/Annualized adjusted ROE* $ 256 $ 5,709 4.5 % $ 468 $ 5,185 9.0 %
| enstargroup.com 19 Reconciliation to Adjusted Return on Equity - 2024, 2023 and 2022 1) Net income (loss) comprises net income (loss) attributable to Enstar ordinary shareholders, prior to any non-GAAP adjustments. Opening equity comprises Enstar ordinary shareholders' equity, which is calculated as opening Enstar shareholders' equity less preferred shares ($510 million), prior to any non-GAAP adjustments. (2) Net realized gains (losses) on fixed maturities, AFS are included in net realized gains (losses) in our consolidated statements of operations. Fair value changes on fixed maturities, trading and funds held - directly managed are included in fair value changes in trading securities, funds held and other investments in in our consolidated statements of operations. (3) Our fixed maturities are held directly on our balance sheet and also within the "Funds held" balance. (4) Comprises the discount rate and risk margin components, net of reinsurance recoverables. (5) Represents an aggregation of the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates, calculated at the applicable jurisdictional tax rate. (6) Represents the impact of the adjustments on the net income (loss) attributable to noncontrolling interests associated with the specific subsidiaries to which the adjustments relate. *Non-GAAP measure. Year Ended December 31, 2024 December 31, 2023 December 31, 2022 Net income (loss) (1) Opening equity (1) ROE Net income (loss) (1) Opening equity (1) ROE Net earnings (loss) (1) Opening equity (1) (Adj) ROE Net income (loss)/Opening equity/ROE (1) $ 540 $ 5,025 10.7 % $ 1,082 $ 4,464 24.2 % $ (906) $ 5,813 (15.6) % Non-GAAP adjustments: Net realized (gains) losses on fixed maturities, AFS (2) / Cumulative fair value changes to fixed maturities, AFS (3) 9 380 65 647 111 36 Fair value changes on fixed maturities, trading (2) / Fair value changes on fixed maturities, trading (3) 25 234 (84) 400 503 (134) Fair value changes on funds held - directly managed (2) / Fair value changes on funds held - directly managed (3) 14 111 (47) 780 567 9 Change in fair value of insurance contracts for which we have elected the fair value option / Fair value of insurance contracts for which we have elected the fair value option (4) 20 (246) 78 (294) (200) (107) Amortization of fair value adjustments / Fair value adjustments 13 (107) 17 (124) (18) (106) Gain on sale of subsidiary (4) — — — Goodwill impairment charges 63 — — — — — Expenses related to the Merger Agreement 6 — — — — — Tax effects of adjustments (5) (1) — (7) — (7) — Adjustments attributable to noncontrolling interests (6) — — (2) — (111) — Adjusted net income (loss) /Adjusted opening equity/Adjusted ROE* $ 685 $ 5,397 12.7 % $ 1,102 $ 5,873 18.8 % $ (61) $ 5,511 (1.1) %
| enstargroup.com 20 Reconciliation to Adjusted Return on Equity - 2021 and 2020 Year Ended December 31, 2021 December 31, 2020 Net income (loss) (1) Opening Equity (1) (Adj) ROE Net income (loss) (1) Opening Equity (1) (Adj) ROE (in millions of U.S. dollars) Net income/Opening equity/ROE (1) $ 502 $ 6,326 7.9 % $ 1,723 $ 4,490 38.4 % Non-GAAP adjustments: Net realized losses (gains) on fixed maturities, AFS (2) / Net unrealized losses (gains) on fixed maturities, AFS (3) 4 (82) (18) — Fair value changes on fixed maturities, trading (2) / Fair value changes on fixed maturities, trading (3) 144 (384) (228) (229) Fair value changes on funds held - directly managed (2) / Fair value changes on funds held - directly managed (3) 62 (94) (60) (48) Change in fair value of insurance contracts for which we have elected the fair value option / Fair value of insurance contracts for which we have elected the fair value option (4) (75) (33) 119 (130) Amortization of fair value adjustments / Fair value adjustments 16 (128) 27 (152) Net gain on purchase and sales of subsidiaries (73) — (3) — Net earnings from discontinued operations / Net assets of entities classified as held for sale and discontinued operations — — (16) (266) Tax effects of adjustments (5) (21) — 23 — Adjustments attributable to noncontrolling interests (6) 6 — 13 109 Adjusted net income/Adjusted opening equity/Adjusted ROE* $ 565 $ 5,605 10.1 % $ 1,580 $ 3,774 41.9 % (1) Net income comprises net income attributable to Enstar ordinary shareholders, prior to any non-GAAP adjustments. Opening equity comprises Enstar ordinary shareholders' equity, which is calculated as opening Enstar shareholders' equity less preferred shares ($510 million), prior to any non-GAAP adjustments. (2) Net realized gains (losses) on fixed maturities, AFS are included in net realized gains (losses) in our consolidated statements of operations. Net unrealized gains (losses) on fixed maturities, trading and funds held - directly managed are included in net unrealized gains (losses) in our consolidated statements of operations. (3) Our fixed maturities are held directly on our balance sheet and also within the "Funds held" balance. (4) Comprises the discount rate and risk margin components. (5) Represents an aggregation of the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates, calculated at the applicable jurisdictional tax rate. (6) Represents the impact of the adjustments on the net income (loss) attributable to noncontrolling interest associated with the specific subsidiaries to which the adjustments relate. * Non-GAAP financial measure.
| enstargroup.com 21 Reconciliation to Adjusted Run-off Liability Earnings - 2024 and 2023 Year Ended As of Year Ended December 31, 2023 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2023 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves RLE % PPD/net loss reserves/RLE % $ 131 $ 11,585 $ 12,011 $ 11,798 1.1 % Non-GAAP adjustments: Net current period incurred losses and LAE, excluding paid losses — (30) — (15) Legacy Underwriting — — (139) (69) Amortization of fair value adjustments / Net fair value adjustments associated with the acquisition of companies 17 107 124 116 Changes in fair value - fair value option / Net fair value adjustments for contracts for which we have elected the fair value option (1) 78 246 294 270 Change in estimate of net ultimate liabilities - defendant A&E / Net nominal defendant A&E liabilities (1) 527 572 550 Reduction in estimated future expenses - defendant A&E / Estimated future expenses - defendant A&E 2 33 35 34 Adjusted PPD/Adjusted net loss reserves/Adjusted RLE %* $ 227 $ 12,468 $ 12,897 $ 12,684 1.8 % (1) Comprises the discount rate and risk margin components. * Non-GAAP financial measure. Year Ended As of Year Ended December 31, 2024 December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2024 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves RLE % PPD/net loss reserves/RLE % $ 149 $ 10,776 $ 11,585 $ 11,181 1.3 % Non-GAAP adjustments: Net current period incurred losses and LAE, excluding paid losses — (21) — (11) Amortization of fair value adjustments / Net fair value adjustments associated with the acquisition of companies 13 94 107 101 Changes in fair value - fair value option / Net fair value adjustments for contracts for which we have elected the fair value option (1) 20 214 246 230 Change in estimate of net ultimate liabilities - defendant A&E / Net nominal defendant A&E liabilities (33) 499 527 513 Reduction in estimated future expenses - defendant A&E / Estimated future expenses - defendant A&E 1 32 33 33 Adjusted PPD/Adjusted net loss reserves/Adjusted RLE %* $ 150 $ 11,594 $ 12,498 $ 12,047 1.2 %
| enstargroup.com 22 Reconciliation to Adjusted Run-off Liability Earnings - 2022 and 2021 Year Ended As of Year Ended December 31, 2022 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2022 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves Annualized RLE % (in millions of U.S. dollars) PPD/net loss reserves/RLE % $ 756 $ 12,011 $ 11,926 $ 11,969 6.3 % Non-GAAP adjustments for expenses (income): Net current period incurred losses and LAE, excluding paid losses — (45) — (23) Assumed Life (55) — (181) (91) Legacy Underwriting 3 (135) (153) (144) Amortization of fair value adjustments / Net fair value adjustments associated with the acquisition of companies (18) 124 106 115 Changes in fair value - fair value option / Net fair value adjustments for contracts for which we have elected the fair value option (1) (200) 294 107 201 Change in estimate of net ultimate liabilities - defendant A&E / Net nominal defendant A&E liabilities 2 572 573 573 Reduction in estimated future expenses - defendant A&E / Estimated future expenses - defendant A&E 1 35 37 37 Adjusted PPD/Adjusted net loss reserves/Adjusted RLE %* $ 489 $ 12,856 $ 12,415 $ 12,637 3.9 % Year Ended As of Year Ended December 31, 2021 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2021 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves RLE % (in millions of U.S. dollars) PPD/net loss reserves/RLE % $ 403 $ 11,926 $ 8,763 $ 10,344 3.9 % Non-GAAP adjustments for expenses (income): Net current period incurred losses and LAE, excluding paid losses — (143) — (72) Assumed Life — (179) — (90) Legacy Underwriting (6) (140) (955) (548) Amortization of fair value adjustments / Net fair value adjustments associated with the acquisition of companies 16 106 128 117 Changes in fair value - fair value option / Net fair value adjustments for contracts for which we have elected the fair value option (1) (75) 107 33 70 Change in estimate of net ultimate liabilities - defendant A&E / Net nominal defendant A&E liabilities 38 573 615 594 Reduction in estimated future expenses - defendant A&E / Estimated future expenses - defendant A&E 5 37 43 40 Adjusted PPD/Adjusted net loss reserves/Adjusted RLE %* $ 381 $ 12,287 $ 8,627 $ 10,455 3.6 % (1) Comprises the discount rate and risk margin components. * Non-GAAP financial measure.
| enstargroup.com 23 Reconciliation to Adjusted Run-off Liability Earnings - 2020 Year Ended As of Year Ended December 31, 2020 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2020 RLE / PPD Net loss reserves Net loss reserves Average net loss reserves RLE % (in millions of U.S. dollars) PPD/net loss reserves/RLE % $ 32 $ 8,763 $ 7,941 $ 8,352 0.4 % Non-GAAP adjustments for expenses (income): Net current period incurred losses and LAE, excluding paid losses — (273) — (137) Legacy Underwriting (4) (702) (1,184) (943) Amortization of fair value adjustments / Net fair value adjustments associated with the acquisition of companies 28 128 152 140 Changes in fair value - fair value option / Net fair value adjustments for contracts for which we have elected the fair value option (1) 119 33 130 82 Change in estimate of net ultimate liabilities - defendant A&E / Net nominal defendant A&E liabilities 103 615 561 588 Reduction in estimated future expenses - defendant A&E / Estimated future expenses - defendant A&E 9 43 52 48 Adjusted PPD/Adjusted net loss reserves/Adjusted RLE %* $ 287 $ 8,607 $ 7,652 $ 8,129 3.5 % (1) Comprises the discount rate and risk margin components. * Non-GAAP financial measure.
| enstargroup.com 24 Reconciliation to Adjusted Total Investment Return Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 2022 2021 2020 Net investment income $ 173 $ 176 $ 651 $ 647 $ 455 $ 312 $ 303 Net realized gains (losses) (11) (10) (9) (65) (111) (61) 19 Fair value changes in trading securities, funds held and other investments 56 306 456 528 (1,503) 178 1,623 (Loss) income from equity method investments 11 (9) (18) 13 (74) 93 239 Other comprehensive income: Unrealized gains (losses) on fixed maturities, AFS, net of reclassification adjustments excluding foreign exchange (57) 220 50 222 (570) (100) 70 TIR ($) $ 172 $ 683 $ 1,130 $ 1,345 $ (1,803) $ 422 $ 2,254 Non-GAAP adjustments: Net realized (gains) losses on fixed maturities, AFS and fair value changes in trading and funds held - directly managed 104 (194) 48 (66) 1,181 210 (306) Unrealized (gains) losses on fixed maturities, AFS, net of reclassification adjustments excluding foreign exchange 57 (220) (50) (222) 570 100 (70) Adjusted TIR ($)* $ 333 $ 269 $ 1,128 $ 1,057 $ (52) $ 732 $ 1,878 Total investments 16,453 17,413 16,453 17,413 18,210 19,616 15,893 Cash and cash equivalents, including restricted cash and cash equivalents 1,554 830 1,554 830 1,330 2,092 1,373 Total investable assets $ 18,007 $ 18,243 $ 18,007 $ 18,243 $ 19,540 $ 21,708 $ 17,266 Average aggregate invested assets, at fair value (1) $ 18,041 $ 18,472 $ 17,911 $ 18,607 $ 20,079 $ 20,840 $ 15,443 Annualized TIR % (2) 3.8 % 14.8 % 6.3 % 7.2 % (9.0) % 2.0 % 14.6 % Non-GAAP adjustment: Net unrealized losses on fixed maturities, AFS included within AOCI and fair value changes on fixed maturities, trading and funds held - directly managed 752 725 752 725 1,827 (89) (560) Adjusted investable assets* $ 18,759 $ 18,968 $ 18,759 $ 18,968 $ 21,367 $ 21,619 $ 16,706 — Adjusted average aggregate invested assets, at fair value* (3) $ 18,661 $ 19,445 $ 18,621 $ 19,769 $ 21,165 $ 20,561 $ 15,153 Annualized adjusted TIR %* (4) 7.1 % 5.5 % 6.1 % 5.3 % (0.2) % 3.6 % 12.4 % (1) This amount is a two period average of the total investable assets for the three months ended December 31, 2024 and 2023, respectively, and a five period average for the years ended December 31, 2024, 2023, 2022, 2021 and 2020, respectively, as presented above, and is comprised of amounts disclosed in our quarterly and annual U.S. GAAP consolidated financial statements. (2) Annualized TIR % is calculated by dividing the annualized TIR ($) by average aggregate invested assets, at fair value. (3) This amount is a two period average of the adjusted investable assets* for the three months ended December 31, 2024 and 2023, respectively, and a five period average for the years ended December 31, 2024, 2023, 2022, 2021 and 2020, respectively, as presented above. (4) Annualized adjusted TIR %* is calculated by dividing the annualized adjusted TIR* ($) by adjusted average aggregate invested assets, at fair value*. *Non-GAAP measure.
| enstargroup.com 25 Investment Composition - December 31, 2024 Other Investments Equities Cash (2) Funds Held Short-term and fixed maturities, trading and AFS December 31, 2024 Hedge Funds Fixed income funds Equity funds Private equity funds CLO equities CLO equity funds Private credit funds Real estate fund Other (1) Publicly traded equities Exchange- traded funds Privately held equities Short-term and fixed maturities, trading and AFS $ 6,170 34.3 % 6,170 Funds held 4,979 27.7 % 71 20 5 50 4,833 — % 1.4 % — % — % — % — % 0.4 % — % — % 0.1 % 1.0 % — % — % 97.1 % — % Equities Privately held equities 460 2.6 % 18 52 390 Publicly traded equities 176 1.0 % 59 117 Exchange-traded funds 151 0.8 % 40 111 Warrants and other 16 0.1 % 16 Total 803 4.5 % — % 7.3 % — % — % 2.2 % — % 6.5 % — % 2.0 % 14.6 % 5.0 % 48.6 % — % — % 13.8 % Other investments Private equity funds 1,926 10.7 % 1,591 79 73 158 10 9 6 Private credit funds 864 4.8 % 864 Hedge funds 410 2.3 % 336 74 Fixed income funds 369 2.0 % 369 Real estate fund 401 2.2 % 401 CLO equity funds 162 0.9 % 162 CLO equities 52 0.3 % 52 Equity funds 4 — % 4 Total 4,188 23.3 % 8.0 % 10.6 % — % 38.1 % 5.1 % — % 22.5 % 11.3 % 3.8 % 0.3 % 0.2 % 0.1 % — % — % — % Equity method investments 313 1.7 % Total investments 16,453 91.4 % Cash and cash equivalents (including restricted cash) 1,554 8.6 % 1,554 Total investable assets $ 18,007 100.0 % (1) Includes infrastructure in fund format and warrants. (2) Cash and cash equivalents.
| enstargroup.com 26 Investment Composition - December 31, 2023 Other Investments Equities December 31, 2023 Hedge Funds Fixed income funds Private equity funds CLO equities CLO equity funds Private credit funds Real estate fund Other(1) Publicly traded equities Exchange- traded funds Privately held equities Cash(2) Funds Held Short-term and fixed maturity investments, trading and AFS Short-term and fixed maturity investments, trading and AFS $ 7,274 39.9 % 7,274 Funds held 5,251 28.8 % 102 68 5,081 — % 1.9 % — % — % — % — % — % — % — % 1.3 % — % — % 96.8 % — % Equities Privately held equities 344 1.9 % 45 299 Publicly traded equities 275 1.5 % 55 220 Exchange-traded funds 82 0.4 % 18 20 44 Total 701 3.8 % — % 7.8 % — % 2.6 % — % 6.4 % — % — % 31.4 % 2.9 % 42.6 % — % — % 6.3 % Other investments Private equity funds 1,617 8.9 % 3 1,186 108 67 92 16 30 6 109 Private credit funds 625 3.4 % 625 Fixed income funds 605 3.3 % 605 Hedge funds 491 2.7 % 407 84 Real estate fund 269 1.5 % 269 CLO equity funds 182 1.0 % 182 CLO equities 60 0.3 % 60 Equity funds 4 — % 4 Total 3,853 21.1 % 10.5 % 18.0 % 30.8 % 6.3 % — % 19.0 % 8.7 % 2.4 % 0.5 % 0.8 % 0.2 % 2.8 % — % — % Equity method investments 334 1.8 % Total investments 17,413 95.5 % Cash and cash equivalents (including restricted cash) 830 4.6 % 830 Total investable assets $ 18,243 100.0 % (1) Infrastructure in fund format. (2) Cash and cash equivalents.
