Fidelis: Investor Update April 2020 Private & Confidential - PowerPoint PPT Presentation

Fidelis: Investor Update April 2020 Private & Confidential

Fidelis: Business Snapshot Fidelis is a leading specialty, bespoke and (re)insurance business built on a 30 year track record of outperformance that continues to beat the market in terms of its underwriting and returns Business Mix Key Events 2014 GPW (outer circle) & NPW (inner circle) Underwriting Contribution Founded by Richard Brindle and incorporated in Bermuda 2015 Capital raised through 2 private placements for a total of $1.5bn via CVC, 31% 2016 42% Pinebrook, Crestview 46% Medium and GS HNW 2019 Fidelis generates an term 57% underwriting profit in its first full year of operation 2017 12% Fidelis implements its MGA strategy (Radius, Pine 12% 2018 Walk) Fidelis expands to Dublin, launches an ILS sidecar Reinsurance Bespoke Specialty Partnership / fee income 2019 Fidelis receives S&P rating of A- 2020 Diversified business mix across both line of business and geography, built on the four pillar strategy Fidelis raises $300m equity to take advantage of favourable market conditions This slide contains forward – looking information. See “Important Notice” slide at the end of this presentation . 1 Source: Company information

The Four Pillar Strategy Fidelis operates a diversified business model based on 4 pillars (bespoke, reinsurance, specialty and partnership / fee income), with high degrees of complementarity The Fidelis Business Model 2019 Bespoke Reinsurance Specialty Socium (Partnership / Fee Income) Transactional Liabilities Aviation Catastrophe Quota Shares Natural Catastrophe Cyber Reinsurance Energy Bespoke & Specialty Credit & political Risk Property Retrocession Marine Third Party Vehicle Capital Political Violence Composite/Multiclass Property and D&F MGA Platform Other Bespoke 2019 Gross Premiums Written: $811m  Little / no correlation to peak  Homogeneous book of cat  30+ years of trading relationships  Fidelis’s market leading position catastrophe perils so highly capital reinsurance with no volatile single and experience in all lines allows enables it to access business in efficient risk business Fidelis to upsize with market excess of its own risk appetite opportunities  Unique products driving better loss  Market-leading analytics capabilities  Partnership model enables Fidelis to  Prequel underwriting system data ratios and high barriers to entry share such risk with its Partners  Protected by QS, Aggregate & XOL capture customised to all Specialty  Fidelis is 98% lead on its Bespoke retro cover lines requirements business 2 Source: Company information

A Unique and Highly Profitable Underwriting Business Fidelis has developed a thoughtful and profitable business model through a combination of underwriting excellence, flexible capital allocation and efficiency, driven by an outstanding management team and is well positioned to take advantage of favourable conditions across its core markets Underwriting Based on a unique and Best-in-class systems and With an outstanding excellence rigorous risk selection technology 2019 result process All divisions accretive to Outperforming The best team in the With an attractive Group performance peers market growth outlook 3

1 Underwriting Excellence Throughout the Business Fidelis has a disciplined and creative underwriting culture with a focus on delivering superior solutions for clients Disciplined Underwriting Approach Superior Solutions for Clients  Real time peer review and management of  Ability to move quickly to deliver portfolios bespoke products without cumbersome Lloyd's restrictions  Active management of risk resulting in Underwriting  Long-term relationships with quality unique portfolios clients and brokers working together to & Marketing Risk & Return  Daily underwriting call attended by CEO and innovate Conference Committee senior executive team Calls Creativity in Bringing New Products Allocating Risk & Capital between to Market own & third party balance sheets for Four Pillars optimised risk/return  In-house expertise to innovate client-led solutions  Real time portfolio analysis  Rate Maker rather than Rate Taker  Active management of risk increases capital efficiency  Finding growth through first mover advantage 4 Source: Company information

1 Underwriting Excellence Throughout the Business (Cont’d) Fidelis generates the majority of its profit via underwriting income, with significantly less reliance on investment income than peers to support performance 2020E Underwriting Result Contribution to Profit 82% 32% 29% Dowling Peer Group Average Dowling Peer Group Median Fidelis Dowling Peer Group includes: Progressive, Heritage, Lancashire, Kinsale, Assurant, HCI Group, Universal, Arch, Amerisafe, Allsafe, Kemper, Intact, Sirius, RenRe, Chubb, Everest Re, American Financial, W.R Berkley, Selective, Hanover, Safety, RLI Corp, Horace Mann, Cincinnati Financials, Mercury General, Alleghany, Global Ind, Federated National, Travelers, Hartford, Fairfax Financial, ProSight, Berkshire Hathaway, Old Republic, CNA, Markel, AXIS Capital, AIG, Greenlight, Argo, White Mountains, Enstar, Third Point, Donegal, State Auto, United, James River, Employers, Protective This slide contains forward – looking information. See “Important Notice” slide at the end of this presentation . 5 Source: Fidelis 2020 Estimate, Dowling & Partners, Company Reports, D&P Analysis; Note: UFCS & PRA Excluded = Underwriting Loss > Investment Income in 2020E

2 Unique and Rigorous Risk Selection Process Fidelis employs a suite of robust underwriting controls, including a Daily Underwriting and Marketing Conference Call (UMCC) to ensure superior underwriting, provide live market insights and help the business to react quickly to emerging opportunities UMCC is Unique to Fidelis and Stringent Risk Selection Practices Central to Ensuring Rigorous Underwriting Key Process Features Daily Underwriting and Marketing Conference Call (UMCC) to approve all new risks and renewals Every underwriting opportunity is discussed and decided via a global daily 1 underwriting and marketing call attended by Fidelis ’s CEO and senior executive team Weekly four pillar meetings to drive & identify opportunities and deliver Other department heads from Actuarial, Risk, Compliance, Legal and Claims 2 follow through also attend ensuring multi-disciplinary review Key Benefits Monthly risk return committee meetings to review current underwriting ✓ Process ensures uniform and disciplined underwriting decisions market and developments, impact on risk tolerances and appetite, and and consistency of capital allocation across different business lines, any capital implications while avoiding siloed underwriting ✓ Provides executive team with direct visibility over the execution of the underwriting strategy Real time peer review and management of portfolios supported by state of the art analytics and aggregation tools ✓ Allows underwritersand management to see the market live and react to opportunities without cumbersome referral process ✓ Active management of risk resulting in unique portfolios Allows management to leverage Fidelis’s position on deals using portfolios and cross class perspectives 6 Source: Company information

3 Best-in-class Systems and Technology State-of-the-Art underwriting, aggregation and risk management platforms provide Fidelis with a strong competitive advantage in data manipulation and real-time processing Key Differentiators Prequel Full cont ntrol of data ta and d no legacy syste tems ms All submissions logged in a single custom-developed underwriting system No “black box” third party assumpti No tions given pro ropri prietary ry operation tional and d analyti tics te techn hnology Tyche Jarvis Model platform for Integrated group- capital analysis , wide data store with Fit for r purp rpose to tools ls developed by in in-house data ta industry leading data definition & data scientists ts performance quality checks Change in Reinsurance Portfolio Characteristics Supported by FireAnt 2016-2020 Growth 250% FireAnt 170% 100% Innovative insurance pricing, analytics, and portfolio optimisation PML Premium Expected profit tool FireAnt enabled premium growth of 170% since 2016 with an associated increase in PML of just 100% over the same period, supporting 250% growth in expected profit 7 Source: Company information