Three Months Ended | |||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | $ Change | % / pp / bp Change | ||||||||||||||||||||
(in millions of U.S. dollars, except per share data) | |||||||||||||||||||||||
Key Earnings Metrics | |||||||||||||||||||||||
Net (loss) earnings attributable to Enstar ordinary shareholders | $ | (282) | $ | 183 | $ | (465) | (254) | % | |||||||||||||||
Adjusted operating (loss) income attributable to Enstar ordinary shareholders* | $ | (75) | $ | 295 | (370) | (125) | % | ||||||||||||||||
ROE | (5.0) | % | 3.0 | % | (8.0) | pp | |||||||||||||||||
Annualized ROE | (20.2) | % | 11.9 | % | (32.1) | pp | |||||||||||||||||
Adjusted ROE* | (1.4) | % | 5.4 | % | (6.8) | pp | |||||||||||||||||
Annualized Adjusted ROE* | (5.7) | % | 21.7 | % | (27.4) | pp | |||||||||||||||||
Key Run-off Metrics | |||||||||||||||||||||||
Prior period development | $ | 143 | $ | 110 | 33 | 30 | % | ||||||||||||||||
Adjusted prior period development* | $ | (1) | $ | 26 | (27) | (104) | % | ||||||||||||||||
Annualized RLE | 5.1 | % | 5.0 | % | 0.1 | pp | |||||||||||||||||
Annualized Adjusted RLE* | 0.0 | % | 1.2 | % | (1.2) | pp | |||||||||||||||||
Key Investment Return Metrics | |||||||||||||||||||||||
TIR | $ | (307) | $ | 159 | (466) | (293) | % | ||||||||||||||||
Adjusted TIR* | $ | 27 | $ | 365 | (338) | (93) | % | ||||||||||||||||
Total investable assets | $ | 20,618 | $ | 18,212 | 2,406 | 13 | % | ||||||||||||||||
Adjusted total investable assets* | $ | 21,139 | $ | 17,983 | 3,156 | 18 | % | ||||||||||||||||
Annualized investment book yield | 1.91 | % | 1.86 | % | 5 | bp | |||||||||||||||||
Annualized TIR | (6.1) | % | 3.6 | % | (9.7) | pp | |||||||||||||||||
Annualized Adjusted TIR* | 0.5 | % | 8.4 | % | (7.9) | pp | |||||||||||||||||
As of | |||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Key Shareholder Metrics | |||||||||||||||||||||||
Book value per ordinary share | $ | 286.51 | $ | 316.34 | (29.83) | (9.4) | % | ||||||||||||||||
Adjusted book value per ordinary share* | $ | 282.10 | $ | 310.80 | (28.70) | (9.2) | % | ||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | $ Change | % Change | ||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
INCOME | |||||||||||||||||||||||
Net premiums earned | $ | 17 | $ | 73 | $ | (56) | (77) | % | |||||||||||||||
Other income: | |||||||||||||||||||||||
Reduction in estimates of net ultimate defendant A&E liabilities - prior periods | 3 | 9 | (6) | (67) | % | ||||||||||||||||||
Reduction in estimated future defendant A&E expenses | — | 3 | (3) | (100) | % | ||||||||||||||||||
All other income | 7 | 10 | (3) | (30) | % | ||||||||||||||||||
Total other income | 10 | 22 | (12) | (55) | % | ||||||||||||||||||
Total income | 27 | 95 | (68) | (72) | % | ||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | 11 | 44 | (33) | (75) | % | ||||||||||||||||||
Prior periods: | |||||||||||||||||||||||
Reduction in estimates of net ultimate losses | (29) | (25) | (4) | 16 | % | ||||||||||||||||||
Reduction in provisions for ULAE | (21) | (14) | (7) | 50 | % | ||||||||||||||||||
Total prior periods | (50) | (39) | (11) | 28 | % | ||||||||||||||||||
Total net incurred losses and LAE | (39) | 5 | (44) | NM | |||||||||||||||||||
Acquisition costs | 8 | 29 | (21) | (72) | % | ||||||||||||||||||
General and administrative expenses | 39 | 28 | 11 | 39 | % | ||||||||||||||||||
Total expenses | 8 | 62 | (54) | (87) | % | ||||||||||||||||||
SEGMENT NET EARNINGS | $ | 19 | $ | 33 | $ | (14) | (42) | % | |||||||||||||||
Three Months Ended | |||||||||||||||||||||||
March 31, | |||||||||||||||||||||||
2022 | 2021 | $ Change | % Change | ||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
INCOME | |||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||
Fixed income securities | $ | 68 | $ | 51 | $ | 17 | 33 | % | |||||||||||||||
Other investments, including equities | 19 | 14 | 5 | 36 | % | ||||||||||||||||||
Less: Investment expenses | (11) | (4) | (7) | 175 | % | ||||||||||||||||||
Total net investment income | 76 | 61 | 15 | 25 | % | ||||||||||||||||||
Net realized losses: | |||||||||||||||||||||||
Fixed income securities | (35) | (11) | (24) | 218 | % | ||||||||||||||||||
Other investments, including equities | (2) | 1 | (3) | NM | |||||||||||||||||||
Net realized losses | (37) | (10) | (27) | 270 | % | ||||||||||||||||||
Net unrealized losses: | |||||||||||||||||||||||
Fixed income securities | (293) | (194) | (99) | 51 | % | ||||||||||||||||||
Other investments, including equities | (82) | 184 | (266) | (145) | % | ||||||||||||||||||
Total net unrealized losses | (375) | (10) | (365) | NM | |||||||||||||||||||
Total income | (336) | 41 | (377) | NM | |||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
General and administrative expenses | 9 | 3 | 6 | 200 | % | ||||||||||||||||||
Total expenses | 9 | 3 | 6 | 200 | % | ||||||||||||||||||
Earnings from equity method investments | 31 | 118 | (87) | (74) | % | ||||||||||||||||||
SEGMENT NET (LOSS) EARNINGS | $ | (314) | $ | 156 | $ | (470) | NM |
Three Months Ended | |||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | $ Change | % Change | ||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
INCOME | |||||||||||||||||||||||
Run-off | $ | 27 | $ | 95 | $ | (68) | (72) | % | |||||||||||||||
Enhanzed Re | 14 | — | 14 | NM | |||||||||||||||||||
Investments | (336) | 41 | (377) | NM | |||||||||||||||||||
Legacy Underwriting | 2 | 13 | (11) | (85) | % | ||||||||||||||||||
Subtotal | (293) | 149 | (442) | (297) | % | ||||||||||||||||||
Corporate and other | 3 | 10 | (7) | (70) | % | ||||||||||||||||||
Total income | $ | (290) | $ | 159 | $ | (449) | (282) | % | |||||||||||||||
SEGMENT NET (LOSS) EARNINGS | |||||||||||||||||||||||
Run-off | $ | 19 | $ | 33 | $ | (14) | (42) | % | |||||||||||||||
Enhanzed Re | 29 | — | 29 | NM | |||||||||||||||||||
Investments | (314) | 156 | (470) | NM | |||||||||||||||||||
Legacy Underwriting | — | 2 | (2) | (100) | % | ||||||||||||||||||
Total segment net (loss) earnings | (266) | 191 | (457) | (239) | % | ||||||||||||||||||
Corporate and other (1)(2) | (16) | (8) | (8) | 100 | % | ||||||||||||||||||
NET (LOSS) EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (282) | $ | 183 | $ | (465) | (254) | % | |||||||||||||||
Three Months Ended | |||||||||||
March 31, 2022 | March 31, 2021 | ||||||||||
(in millions of U.S. dollars, except share and per share data) | |||||||||||
INCOME | |||||||||||
Net premiums earned | $ | 34 | $ | 93 | |||||||
Net investment income | 80 | 62 | |||||||||
Net realized losses | (37) | (11) | |||||||||
Net unrealized losses | (381) | (10) | |||||||||
Other income | 14 | 10 | |||||||||
Net gain on sales of subsidiaries | — | 15 | |||||||||
Total income | (290) | 159 | |||||||||
EXPENSES | |||||||||||
Net incurred losses and loss adjustment expenses | |||||||||||
Current period | 13 | 54 | |||||||||
Prior periods | (143) | (110) | |||||||||
Total net incurred losses and loss adjustment expenses | (130) | (56) | |||||||||
Policyholder benefit expenses | 12 | — | |||||||||
Acquisition costs | 8 | 34 | |||||||||
General and administrative expenses | 85 | 83 | |||||||||
Interest expense | 25 | 16 | |||||||||
Net foreign exchange losses | 3 | 3 | |||||||||
Total expenses | 3 | 80 | |||||||||
(LOSS) EARNINGS BEFORE INCOME TAXES | (293) | 79 | |||||||||
Income tax benefit | — | 6 | |||||||||
Earnings from equity method investments | 31 | 118 | |||||||||
NET (LOSS) EARNINGS | (262) | 203 | |||||||||
Net earnings attributable to noncontrolling interest | (11) | (11) | |||||||||
NET (LOSS) EARNINGS ATTRIBUTABLE TO ENSTAR | (273) | 192 | |||||||||
Dividends on preferred shares | (9) | (9) | |||||||||
NET (LOSS) EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (282) | $ | 183 | |||||||
(Loss) earnings per ordinary share attributable to Enstar: | |||||||||||
Basic | $ | (16.04) | $ | 8.50 | |||||||
Diluted | $ | (16.04) | $ | 8.38 | |||||||
Weighted average ordinary shares outstanding: | |||||||||||
Basic | 17,578,019 | 21,562,341 | |||||||||
Diluted | 17,785,121 | 21,852,324 |
March 31, 2022 | December 31, 2021 | ||||||||||
(in millions of U.S. dollars, except share data) | |||||||||||
ASSETS | |||||||||||
Short-term investments, trading, at fair value | $ | 7 | $ | 6 | |||||||
Short-term investments, available-for-sale, at fair value (amortized cost: 2022 — $59; 2021 — $34; net of allowance: 2022 and 2021 — $0) | 59 | 34 | |||||||||
Fixed maturities, trading, at fair value | 3,247 | 3,756 | |||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2022 — $5,575; 2021 — $5,689; net of allowance: 2022 — $29; 2021 — $10) | 5,268 | 5,652 | |||||||||
Funds held - directly managed | 2,835 | 3,007 | |||||||||
Equities, at fair value (cost: 2022 — $2,325; 2021 — $1,831) | 2,444 | 1,995 | |||||||||
Other investments, at fair value | 2,863 | 2,333 | |||||||||
Equity method investments | 519 | 493 | |||||||||
Total investments | 17,242 | 17,276 | |||||||||
Cash and cash equivalents | 763 | 1,646 | |||||||||
Restricted cash and cash equivalents | 372 | 446 | |||||||||
Reinsurance balances recoverable on paid and unpaid losses (net of allowance: 2022 — $135; 2021 — $136) | 983 | 1,085 | |||||||||
Reinsurance balances recoverable on paid and unpaid losses, at fair value | 388 | 432 | |||||||||
Insurance balances recoverable (net of allowance: 2022 and 2021 — $5) | 192 | 213 | |||||||||
Funds held by reinsured companies | 2,241 | 2,340 | |||||||||
Deferred charge assets | 338 | 371 | |||||||||
Other assets | 721 | 620 | |||||||||
TOTAL ASSETS | $ | 23,240 | $ | 24,429 | |||||||
LIABILITIES | |||||||||||
Losses and loss adjustment expenses | $ | 10,744 | $ | 11,269 | |||||||
Losses and loss adjustment expenses, at fair value | 1,764 | 1,989 | |||||||||
Future policyholder benefits | 1,436 | 1,502 | |||||||||
Defendant asbestos and environmental liabilities | 631 | 638 | |||||||||
Insurance and reinsurance balances payable | 267 | 254 | |||||||||
Debt obligations | 1,904 | 1,691 | |||||||||
Other liabilities | 546 | 581 | |||||||||
TOTAL LIABILITIES | 17,292 | 17,924 | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||
REDEEMABLE NONCONTROLLING INTEREST | 181 | 179 | |||||||||
SHAREHOLDERS’ EQUITY | |||||||||||
Ordinary Shares (par value $1 each, issued and outstanding 2022: 18,101,037; 2021: 18,223,574): | |||||||||||
Voting Ordinary Shares (issued and outstanding 2022: 16,503,325; 2021: 16,625,862) | 17 | 17 | |||||||||
Non-voting convertible ordinary Series C Shares (issued and outstanding 2022 and 2021: 1,192,941) | 1 | 1 | |||||||||
Non-voting convertible ordinary Series E Shares (issued and outstanding 2022 and 2021: 404,771) | — | — | |||||||||
Preferred Shares: | |||||||||||
Series C Preferred Shares (issued and held in treasury 2022 and 2021: 388,571) | — | — | |||||||||
Series D Preferred Shares (issued and outstanding 2022 and 2021: 16,000; liquidation preference $400) | 400 | 400 | |||||||||
Series E Preferred Shares (issued and outstanding 2022 and 2021: 4,400; liquidation preference $110) | 110 | 110 | |||||||||
Treasury shares, at cost (Series C Preferred Shares 2022 and 2021: 388,571) | (422) | (422) | |||||||||
Joint Share Ownership Plan (voting ordinary shares, held in trust 2022 and 2021: 565,630) | (1) | (1) | |||||||||
Additional paid-in capital | 883 | 922 | |||||||||
Accumulated other comprehensive loss | (257) | (16) | |||||||||
Retained earnings | 4,803 | 5,085 | |||||||||
Total Enstar Shareholders’ Equity | 5,534 | 6,096 | |||||||||
Noncontrolling interest | 233 | 230 | |||||||||
TOTAL SHAREHOLDERS’ EQUITY | 5,767 | 6,326 | |||||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | $ | 23,240 | $ | 24,429 |
Non-GAAP Measure | Definition | Purpose of Non-GAAP Measure over GAAP Measure | ||||||||||||
Adjusted 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 on the number of ordinary shares outstanding | Increases the number of ordinary shares to reflect equity awards granted but not yet vested as, over the long term, this presents a prudent view of our book value per share. We use this non-GAAP measure in our annual 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 valuable and consistent measure of the performance of our business, and enhances comparisons to prior periods: •by adjusting investment returns for the temporary impact of the change in fair value of fixed maturity securities (both credit spreads and interest rates) which we hold until the earlier of maturity or used to fund any settlement of related liabilities which are generally recorded at cost; •by removing the impact of non-cash charges that obscure our trends on a consistent basis; and •by removing items that are not indicative of our ongoing operations; We use this non-GAAP measure in our annual incentive compensation program. We include the amortization of fair value adjustments as a non-GAAP adjustment to the adjusted operating income (loss) attributable to Enstar ordinary shareholders as it is considered to be a non-cash charge and not indicative of our operating results. | ||||||||||||
Adjusted operating income (loss) attributable to Enstar ordinary shareholders (numerator) | Net earnings (loss) attributable to Enstar ordinary shareholders, adjusted for: -net realized and unrealized (gains) losses on fixed maturity investments and funds held-directly managed -change in fair value of insurance contracts for which we have elected the fair value option (1) -amortization of fair value adjustments -net gain/loss on purchase and sales of subsidiaries (if any) -net earnings from discontinued operations (if any) -tax effects of adjustments -adjustments attributable to noncontrolling interest | |||||||||||||
Adjusted opening Enstar ordinary shareholders' equity (denominator) | Opening Enstar ordinary shareholders' equity, less: -net unrealized gains (losses) on fixed maturity investments and funds held-directly managed, -fair value of insurance contracts for which we have elected the fair value option (1), -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 earnings 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. Adjusts investment returns for the temporary impact of the change in fair value of fixed maturity securities (both credit spreads and interest rates) which we hold 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: -net realized and unrealized (gains) losses on fixed maturity investments and funds held-directly managed | |||||||||||||
Adjusted average aggregate total investable assets (denominator) | Total average investable assets, adjusted for: -net unrealized (gains) losses on fixed maturities, AFS investments included within AOCI -net unrealized (gains) losses on fixed maturities, trading instruments | |||||||||||||
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 measurement of our claims management performance. We use this measure to evaluate our ability to settle our obligations for amounts less than our initial estimate at the point of acquiring the obligations. In order to provide a complete and consistent picture of our claims performance, we combine the reduction (increase) in estimates of prior period net ultimate losses relating to our Run-off segment with the amortization of deferred charge assets, both of which are included in net incurred losses and LAE and have an inverse effect on our results. We also include our performance in managing our defendant A&E liabilities, that do not form part of loss reserves. The remaining components of net incurred losses and LAE and net loss reserves are not considered key components of our claims performance as they are either not non-life run-off in nature, or are considered to be non-cash charges that obscure our trends on a consistent basis. 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 and Enhanzed Re operations -the reduction/(increase) in provisions for unallocated LAE (ULAE) -amortization of fair value adjustments, -change in fair value of insurance contracts for which we have elected the fair value option (1), and Add: -the reduction/(increase) in estimates of our defendant A&E ultimate net liabilities. | |||||||||||||
Adjusted net loss reserves (denominator) | Net losses and LAE, adjusted to: Remove: -Legacy Underwriting and Enhanzed Re net loss reserves -current period net loss reserves -the net ULAE provision -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 (1) and Add: -net nominal defendant asbestos and environmental exposures. |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
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 | $ | 5,024 | 17,535,407 | $ | 286.51 | $ | 5,586 | 17,657,944 | $ | 316.34 | ||||||||||||||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||||||||
Share-based compensation plans | 274,080 | 315,205 | ||||||||||||||||||||||||||||||||||||
Adjusted book value per ordinary share* | $ | 5,024 | 17,809,487 | $ | 282.10 | $ | 5,586 | 17,973,149 | $ | 310.80 | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) earnings (1) | Opening equity (1) | (Adj) ROE | Annualized (Adj) ROE | Net (loss) earnings (1) | Opening equity (1) | (Adj) ROE | Annualized (Adj) ROE | ||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) earnings/Opening equity/ROE/Annualized ROE (1) | $ | (282) | $ | 5,586 | (5.0) | % | (20.2) | % | $ | 183 | $ | 6,164 | 3.0 | % | 11.9 | % | |||||||||||||||||||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized losses on fixed maturity investments and funds held - directly managed / Net unrealized gains on fixed maturity investments and funds held - directly managed (2) | 334 | (89) | 206 | (560) | |||||||||||||||||||||||||||||||||||||||||||
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 (3) | (98) | (107) | (75) | (33) | |||||||||||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments / Fair value adjustments | 2 | (106) | 2 | (128) | |||||||||||||||||||||||||||||||||||||||||||
Net gain on purchase and sales of subsidiaries | — | (15) | |||||||||||||||||||||||||||||||||||||||||||||
Tax effects of adjustments (4) | (26) | (17) | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments attributable to noncontrolling interest (5) | (5) | 11 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating (loss) income/Adjusted opening equity/Adjusted ROE/Annualized adjusted ROE* | $ | (75) | $ | 5,284 | (1.4) | % | (5.7) | % | $ | 295 | $ | 5,443 | 5.4 | % | 21.7 | % |
Three Months Ended | As of | Three Months Ended | ||||||||||||||||||||||||||||||
March 31, 2022 | March 31, 2022 | December 31, 2021 | March 31, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||
PPD | Net loss reserves | Net loss reserves | Average net loss reserves | Annualized RLE % | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||
PPD/net loss reserves/Annualized RLE | $ | 143 | $ | 10,962 | $ | 11,555 | $ | 11,259 | 5.1 | % | ||||||||||||||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||||||||||||
Enhanzed Re | (28) | (150) | (181) | (166) | ||||||||||||||||||||||||||||
Legacy Underwriting | (1) | (142) | (153) | (147) | ||||||||||||||||||||||||||||
Net loss reserves - current period | — | (13) | — | (7) | ||||||||||||||||||||||||||||
Reduction in provisions for ULAE / Net ULAE provisions | (22) | (394) | (416) | (405) | ||||||||||||||||||||||||||||
Amortization of fair value adjustments / Net fair value adjustments associated with the acquisition of companies | 2 | 104 | 106 | 105 | ||||||||||||||||||||||||||||
Changes in fair value - fair value option / Net fair value adjustments for contracts for which we have elected the fair value option (1) | (98) | 201 | 107 | 154 | ||||||||||||||||||||||||||||
Change in estimate of net ultimate liabilities - defendant A&E / Net nominal defendant A&E liabilities | 3 | 586 | 574 | 580 | ||||||||||||||||||||||||||||
Adjusted PPD/Adjusted net loss reserves/Annualized Adjusted RLE* | $ | (1) | $ | 11,154 | $ | 11,592 | $ | 11,373 | 0.0 | % |
Three Months Ended | As of | Three Months Ended | ||||||||||||||||||||||||||||||
March 31, 2021 | March 31, 2021 | December 31, 2020 | March 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||
PPD | Net loss reserves | Net loss reserves | Average net loss reserves | Annualized RLE % | ||||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||
PPD/net loss reserves/Annualized RLE | $ | 110 | $ | 9,215 | $ | 8,544 | $ | 8,880 | 5.0 | % | ||||||||||||||||||||||
Non-GAAP Adjustments: | ||||||||||||||||||||||||||||||||
Legacy Underwriting | (6) | (153) | (955) | (555) | ||||||||||||||||||||||||||||
Net loss reserves - current period | — | (48) | — | (24) | ||||||||||||||||||||||||||||
Reduction in provisions for ULAE / Net ULAE provisions | (14) | (396) | (334) | (365) | ||||||||||||||||||||||||||||
Amortization of fair value adjustments / Net fair value adjustments associated with the acquisition of companies | 2 | 125 | 128 | 127 | ||||||||||||||||||||||||||||
Changes in fair value - fair value option / Net fair value adjustments for contracts for which we have elected the fair value option (1) | (75) | 109 | 33 | 71 | ||||||||||||||||||||||||||||
Change in estimate of net ultimate liabilities - defendant A&E / Net nominal defendant A&E liabilities | 9 | 599 | 615 | 607 | ||||||||||||||||||||||||||||
Adjusted PPD/Adjusted net loss reserves/Annualized Adjusted RLE* | $ | 26 | $ | 9,451 | $ | 8,031 | $ | 8,741 | 1.2 | % |
Three Months Ended | |||||||||||
March 31, 2022 | March 31, 2021 | ||||||||||
(in millions of U.S. dollars) | |||||||||||
Net investment income | $ | 80 | $ | 62 | |||||||
Net realized losses | (37) | (11) | |||||||||
Net unrealized losses | (381) | (10) | |||||||||
Earnings from equity method investments | 31 | 118 | |||||||||
TIR ($) | $ | (307) | $ | 159 | |||||||
Non-GAAP adjustment: | |||||||||||
Net realized and unrealized losses on fixed maturity investments and funds held-directly managed | 334 | 206 | |||||||||
Adjusted TIR ($)* | $ | 27 | $ | 365 | |||||||
Total investments | $ | 17,242 | $ | 16,553 | |||||||
Cash and cash equivalents, including restricted cash and cash equivalents | 1,135 | 996 | |||||||||
Funds held by reinsured companies | 2,241 | 663 | |||||||||
Total investable assets | $ | 20,618 | $ | 18,212 | |||||||
Average aggregate invested assets, at fair value (1) | 20,243 | 17,863 | |||||||||
Annualized TIR % (2) | (6.1) | % | 3.6 | % | |||||||
Non-GAAP adjustment: | |||||||||||
Net unrealized losses (gains) on fixed maturities, AFS investments included within AOCI and net unrealized losses (gains) on fixed maturities, trading instruments | 521 | (229) | |||||||||
Adjusted investable assets* | $ | 21,139 | $ | 17,983 | |||||||
Adjusted average aggregate invested assets, at fair value* (3) | 20,459 | 17,468 | |||||||||
Annualized adjusted TIR %* (4) | 0.5 | % | 8.4 | % |