February 2022 Investor Presentation
Investor Presentation
Disclaimer
This presentation contains forward-looking statements about
Forward-looking statements generally relate to future events or the Company's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as ''may'', ''will'', ''should'', ''expects'', ''plans'', ''anticipates'', ''could'', ''intends'', ''target'', ''projects'', ''contemplates'', ''believes'', ''estimates'', ''predicts'', ''would'', ''potential'' or ''continue'' or the negative of these words or other similar terms or expressions that concethe Company's expectations, strategy, plans or intentions. These forward-looking statements include, among others, statements relating to our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs and other similar matters. These forward-looking statements are based on management's current
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expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others, future results of operations; financial position; the impact of the ongoing and global COVID-19 pandemic; general economic, political and other risks, including currency and stock market fluctuations and uncertain economic environment; the volatility of the trading price of our common stock; and our expectations about market trends.
The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements the Company makes. While the Company may elect to update these forward-looking statements at some point in the future, the Company has no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the Company's views as of any date subsequent to the date of this presentation. Additional risks and uncertainties relating to the Company and its business can be found in the "Risk Factors" section of
Company Profile
TRACK RECORD OF DELIVERING STRONG GROWTH AND CONTINUED PROFITABILITY
Specialty insurer using data analytics and underwriting acumen to capitalize on market dislocations and provide disruptive products that resonate with producers, other insurers and reinsurers
Leading Earthquake insurer in
Multi-channel distribution serving residential and commercial clients
Admitted and E&S offerings with nationwide scope
Risk transfer strategy limits exposure to major events and reduces earnings volatility
Committed to environmental, social, governance, diversity
and inclusion initiatives
NASDAQ: PLMR Full Year & Q4 2021 HIGHLIGHTS
- 2021 GWP of
$535.2 million , up 51% versus 2020 -
- Q4 GWP of
$149.9 million , up 56% versus Q4 2020
- Q4 GWP of
- 2021 adjusted net income of
$53.4 million -
- Q4 adjusted net income of
$19.2 million
- Q4 adjusted net income of
- 2021 adjusted ROE of 14.1%
-
- Q4 adjusted retuon equity of 19.9%
- 2021 adjusted combined ratio of 76.1%
-
- Q4 adjusted combined ratio of 70.7%
- Authorized new two-year
$100 million share repurchase program inJanuary 2022 - Released second annual Sustainability & Citizenship report in
February 2022 - Full year 2022 adjusted net income guidance of
$80 to$85 million -
- Adjusted ROE of 19% at the mid-point of the range
- Adjusted ROE floor of 14% with renewing aggregate program
31. This slide contains non-GAAP metrics. See GAAP reconciliation in the Appendix.
2021 Selected Accomplishments
STRONG GROWTH
EARNINGS PREDICTABILITY
STRATEGIC INITIATIVES
Generated exceptional top line growth of 51% year-over-year
- Commercial Earthquake and Residential Earthquake increased 54% and 21% respectively
- Additional product growth: Inland Marine 270%, Hawaii Hurricane 119% and Residential Flood 42%
• E&S company delivered
- Newer li nes of business (Real Estate Errors & Omissions and Excess Liability) and Builders' Risk partnerships (TRU and PURE) scaled throughout the year
Concerted efforts to mitigate earnings volatility
- Completed run-off of admitted All Risk and Specialty Homeowners in
Louisiana
|
• |
Reduced continental hurricane probable maximum loss by approximately 40% |
|
• |
Placed aggregate reinsurance to protect from multiple severe events and establish an ROE floor |
- Generated adjusted net income of
$53.4 million and adjusted ROE of 14.1% for shareholders
Executed several noteworthy initiatives
• Traction within PLMR-FRONT; targeting
- Launched new
General Casualty , Professional Liability and Excess Property divisions led by seasoned and talented underwriters - Authorized new two-year
$100 million share repurchase program - Launched ESG portal and released second annual Sustainability and Citizenship report
41. This slide contains non-GAAP metrics. See GAAP reconciliation in the Appendix
2022 Strategic Initiatives
SUSTAIN STRONG
GROWTH
- Continue momentum in the earthquake book
- Capitalize on dislocation of
California insurance market and the California Earthquake
Authority ("CEA") - Pursue additional rate increases and distribution expansion
- Ongoing expansion of the Inland Marine division
- Address residential flood market opportunity arising from
FEMA's 'Risk Rating 2.0' initiative
MONETIZE RECENT
INVESTMENTS
- Nurture carrier partnerships
- Expand existing programs
- Scale PLMR-FRONT to
$80 million to$100 million of managed premiums - Build
General Casualty , Professional Liability and Excess Property divisions - Utilize Inside Sales team to amplify agency distribution
ENHANCE EARNINGS
PREDICTABILITY
- Reduce continental hurricane exposure
- Generate additional underwriting income from non-catastrophe exposed lines of business
- Enhance fee-based income stream via PLMR-FRONT
- Renew aggregate reinsurance protection
- Utilize quota share reinsurance to mitigate attritional losses
SCALE THE
ORGANIZATION
- Utilize technology to optimize costs and expand margins
- Invest in actuarial, analytics, underwriting and technology departments
- Drive expense efficiency in the claims organization
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