Investor Presentaiton
RUN-OFF RESERVE / CLAIMS
SAVINGS
Reconciliation of reserve / claims savings to GAAP line items in the Run-
off segment:
FS Reference (1)
Three Months Ended
June 30,
2021
2020
Six Months Ended
June 30,
2021
2020
Net incurred losses and LAE:
Reduction (increase) in estimates of net ultimate losses - prior periods (A)
Reduction (increase) in estimates of net ultimate losses - current period
Reduction in provisions for unallocated LAE
Note 8
$41,696
$55,910
$67,063
$83,473
Note 8
(40,445)
(8,086)
(83,135)
(15,935)
Note 8
15,746
12,425
28,444
19,904
Net incurred losses and LAE - Run-off
Note 8
$16,997
$60,249
$12,372
$87,442
Other income (expense):
Reduction in estimates of ultimate net defendant A&E liabilities - prior periods (B)
Reduction (increase) in estimated future defendant A&E expenses
Note 9
$4,450 $
Note 9
745
1,978
975
$14,002
$26,893
3,508
3,003
All other income (expense) - Run-off
Other income (expense) - Run-off
1
(2,054)
1
(1,234)
Note 22
$5,196
$899
$17,511
$28,662
Run-off reserve / claims savings:
Reduction (increase) in estimates of net ultimate losses - prior periods = (A)
Reduction in estimates of ultimate net defendant A&E liabilities - prior periods = (B)
Reserve / claims savings: total reduction in net ultimate losses (2) = (A) + (B)
Note 8
Note 9
$41,696
4,450
$55,910
$67,063
$83,473
$46,146
1,978
$57,888
14,002
26,893
$81,065
$110,366
(1) Refer to the corresponding note to our consolidated financial statements included within Item 1 of our Quarterly Report on Form 10-Q for the interim period ended June 30, 2021 for further details.
(2) Reserve / Claims Savings is a non-GAAP measure calculated using components of amounts determined in accordance with U.S. GAAP and disclosed in our quarterly and annual U.S. GAAP consolidated financial
statements. Reserve / Claims Savings is calculated by adding (i) the reduction (increase) in estimates of net ultimate losses relating to prior periods, included in net incurred losses and LAE, and (ii) the reduction
(increase) in estimates of ultimate net defendant asbestos and environmental ("Defendant A&E") liabilities relating to prior periods, included in other income (expense). Because the reduction (increase) in estimates of
ultimate Defendant A&E liabilities for prior periods is presented as a component of other income (expense) in our consolidated statement of earnings, there is not a U.S. GAAP measure that is directly comparable to
Reserve/Claims Savings presented on a non-GAAP basis. However, we believe Reserve / Claims Savings provides investors with a meaningful measure of claims management performance within our Claims
Management segment that is consistent with management's view of the business because it combines the reduction (increase) in estimates of net ultimate losses related to our direct exposure to certain acquired
asbestos and environmental liabilities with the reduction (increase) in estimates of net ultimate losses related to liabilities that we have insured.
ENSTAR
Property of Enstar Group Limited - Not for Distribution 19View entire presentation