PART OF THE ENSTAR GROUP COMPANY OVERVIEW 2015 1 TORUS OVERVIEW 2015
OUR STORY Torus was launched in June 2008 with 20 employees at offices in London and Bermuda. Initially writing energy and large commercial business, our vision was to become a leading global specialty insurer. Today, we have a well-established, diversified global portfolio across specialty, property and casualty lines and serve clients from 12 underwriting hubs worldwide. On 1 April 2014, Torus was acquired by Enstar Group Limited, together with Trident Funds managed by Stone Point Capital. It was a significant point in the evolution of our business. As part of the Enstar Group in partnership with Stone Point, Torus benefits from additional strategic and operational expertise and we are able to offer our clients access to a wider group of professionals in our specialty markets. Our six operating companies benefit from strong risk-adjusted capitalisation, with well-respected underwriting teams, local capabilities, global reach and a claims service that our clients can rely on. We are committed to delivering our original vision, and are selected by clients worldwide as their trusted insurance partner. 2 TORUS OVERVIEW 2015
A GLOBAL SPECIALTY INSURER OPERATING IN THE LLOYD S AND COMPANY MARKETS IN LONDON, CONTINENTAL EUROPE AND THE US. FINANCIALLY SECURE Torus Group holds a rating of A- (Excellent) by A.M. Best, a rating held since launch and most recently affirmed in May 2015. For business written through Torus Syndicate 1301, Lloyd s is rated A+ by Standard & Poor s, AA- by Fitch Ratings and A (Excellent) by A.M. Best. FOR MORE INFORMATION VISIT TORUS.COM 3
AT A GLANCE SPECIALTY INSURANCE 10 evergreen lines Through 10 evergreen business lines, Torus offers a diversified range of insurance products across specialty, property and casualty to large multinational and small middle-market clients. GLOBAL REACH 12 underwriting hubs Through 12 dedicated underwriting hubs located throughout the US, Europe and Bermuda, Torus brings global expertise to local markets. MULTI-PLATFORM 6 regulated insurance entities INDUSTRY SPECIALISTS 140+ underwriters 25+ industries served Whether insuring a billion dollar oil rig or the owner of a local family-run nursing home, Torus underwriters are experienced specialists in every industry they serve. TORUS AT LLOYD S 1301 Lloyd s managing agency syndicate number Managed by Torus wholly-owned Lloyd s managing agency, Torus Underwriting Management Limited, we offer a variety of specialty products at Lloyd s through Syndicate 1301. Through six wholly-owned insurance vehicles, including one Lloyd s syndicate, Torus is licenced to serve a global client base. 4 TORUS OVERVIEW 2015
DIVERSIFIED AND BALANCED PORTFOLIO 2014 GROSS WRITTEN PREMIUM BY PRODUCT LINE 2014 GROSS WRITTEN PREMIUM BY GEOGRAPHY (DOMICILE OF INSURED) USD$ 702.2m USD$ 702.2m Aviation & Space 14% Casualty 34% Marine 17% Property 12% Energy 13% Workers Compensation 8% Other 2% Australia/Asia 5% Europe 22% Rest of World 13% UK 12% US/Canada 48% FOR MORE INFORMATION VISIT TORUS.COM 5
THE TORUS GROUP BENEFITS FROM STRONG RISK-ADJUSTED CAPITALISATION ON A CONSOLIDATED BASIS AND FOR EACH RATED OPERATING COMPANY. A.M. BEST 6 TORUS OVERVIEW 2015
OUR PERFORMANCE TORUS STRIVES TO BE THE LEADING SPECIALTY INSURER IN EACH MARKET WE SERVE. IN OUR EIGHTH YEAR, OUR STRATEGY HAS TAKEN SHAPE AND IS DELIVERING IMPROVED PROFITABILITY AND ENHANCED SERVICES FOR OUR CLIENTS. Torus is a specialty insurer with global reach and the strong financial backing needed to provide outstanding service to our clients in each market we serve. The company has been transformed in the past 12 months and the impact is significant. Our new management team set its sights on the areas that we do best the core lines of business that offer a competitive advantage in terms of people, data or systems, the underwriting skills that we have built our reputation upon, and the claims service on which our clients rely. Torus success this year has been a result of our determination and focus on what we need to do, what serves our clients best and where we can compete successfully. A.M. BEST RATING A.M. Best s review in April concluded with a revision of our outlook to stable, and affirmation of our A.M. Best ratings. This positive outcome endorses the success of the new strategy and our commitment to transform Torus into a sustainable and efficient underwriting platform that delivers encouraging performance despite challenging market conditions. NEW OPPORTUNITIES Torus position within the Enstar Group has provided many opportunities to draw new products and expertise into the business. A partnership with London Aviation Underwriters enables us to write general aviation insurance throughout the United States. The acquisitions of Vander Haeghen & C and Arena extend our European network and bring in expertise in the luxury car and specialist insurance area. A joint venture to form a managing general agent, Objective, to write Chinese business initially focused on the marine, P&I, specie and fine art classes, allows us to provide specialty solutions through Syndicate 1301 for new clients across China. OUTLOOK Torus is upbeat about this year. Despite the market challenges, we are operating with greater efficiency and effectiveness and we continue to attract and retain marketleading underwriters and industry experts to the business. Their deep expertise, local capabilities and global reach bring us closer to our clients and ensure that we are seen as a trusted partner. However, the effort doesn t stop. Our focus remains on ensuring that we drive continuous improvement across the Torus Group and that our clients, as well as our employees and shareholders, continue to benefit from the foundations that have been put in place. As we move forward to the next phase of Torus evolution, our vision holds firm - to be the best insurer in each of our speciality lines. FOR MORE INFORMATION VISIT TORUS.COM 7
OUR UNDERWRITING HUBS Seattle London Paris Rotterdam Hong Kong Torus has entered into a joint venture, 'Objective', to underwrite business in China through Hong Kong. Initially this will be focused on marine, P&I, and specie and fine art. Chicago Orange County Jersey City Bermuda Zürich Milan Cologne St Petersburg OUR INSURANCE PLATFORMS Torus Insurance Holdings Limited is the holding company of six wholly-owned insurance vehicles, including one Lloyd s syndicate. Torus Insurance (UK) Limited UK insurer regulated by the PRA and FCA. Torus Insurance (Europe) AG Liechtenstein-based European specialty insurer, FMA regulated. Torus Syndicate 1301 Lloyd s Syndicate managed by Torus Underwriting Management Limited ( TUML ). TUML is a Lloyd s managing agency, authorised and regulated by the PRA and FCA. Torus Specialty Insurance Company US excess & surplus lines insurer. Torus National Insurance Company US admitted markets insurer. Torus Insurance (Bermuda) Limited Domiciled in Bermuda and regulated by the BMA as a Class IV insurer. 8 TORUS OVERVIEW 2015
HOW WE MANAGE YOUR CLAIMS A client-centric claims approach and a willingness to pay covered claims quickly makes all the difference; our track record demonstrates our philosophy. DECISION MAKING All members of Torus claims team are empowered to make decisions. This means rapid and equitable settlements and each claim handled with consistency. We match skills so that claims reach the right claims handler at first notice of loss. Claims segmentation also ensures that each member of our team is technically excellent and provides economical, fast-track claims handling. TRANSPARENCY AND SPEED OF RESPONSE Large claims are defining moments for our clients and Torus communicates all relevant facts and decision points effectively and promptly. Managers and underwriters receive claims-paid activity and potential exposure updates in real-time. CUTTING-EDGE CLAIMS MANAGEMENT Torus uses Guidewire ClaimCenter, a global claims management system that supports Torus entire product suite. A key differentiator, Guidewire ClaimCenter standardises claims handling to enhance claims efficiency and improve the speed and accuracy of payments for our customers worldwide. CLAIMS CONTACTS Guy Lether International Claims Manager e: glether@torus.com Dawn Ballin VP Claims, US Claims Manager e: dballin@torus.com WE KNOW OUR CLIENTS INDUSTRIES LIKE SECOND NATURE. THIS UNDERSTANDING ENSURES SWIFT CLAIMS SETTLEMENTS. FOR MORE INFORMATION VISIT TORUS.COM 9
OUR BUSINESS ADVANTAGES CLIENTS FIRST We are passionate about delivering exceptional customer service; we shape our strategy and design products with our clients in mind. A diversified and balanced portfolio, together with a transparent approach to risk, gives us the stability and flexibility we need to deliver the best results for our clients and their brokers in each of our specialty lines. PRODUCTS Our underwriting practice leaders are also recognised market leaders valued for their technical capabilities and extensive industry knowledge. Specialist sector experience across all divisions supports continued innovation and bespoke product development. OUR PEOPLE Torus has an enviable talent pool and we continue to hire some of the best in the industry. Senior underwriting, claims and service team appointments across the US and Europe continually enhance our local specialty offering. With empowered industry experts in every department, Torus wins and retains business attracted to our skill and entrepreneurial drive. TEAMWORK Across our underwriting network we have no internal channel conflict which means we succeed as a team, not as a group of individuals. In fast changing markets, adopting a teamwork approach enables us to compete effectively and work even harder for our customers. ecommerce Torus online broker portal, ESCAPE, offers a fast and costeffective quote-to-bind-to-issue solution for brokers serving small and middle-market business. ESCAPE has grown successfully in excess casualty and other core lines, offering immediate wholesale distribution to all 50 US states and across European markets. ESCAPE GROSS WRITTEN PREMIUM (USD MILLION) YE2013 $56.8m YE2014 $79.9m DISTRIBUTION YE2012 $28.5m The most successful insurance companies have the capability to operate in all major insurance markets worldwide with the geographic presence and local know-how to respond to opportunities around the globe as they arise. Through the ongoing development of an international network of local underwriting hubs, joint ventures and acquisition opportunities, we continue to expand our broker and customer distribution base, building strong, long-term partnerships across both traditional and key growth markets. YE2010 $0.9m YE2011 $10.8m ESCAPE has received market recognition for its development as a Celent Model Insurer and as a 2012 Finalist for MarketScout s Entrepreneurial Insurance Award. 10 TORUS OVERVIEW 2015
TORUS AT LLOYD S LLOYD S IS A KEY PLATFORM FOR TORUS. OUR PARTICIPATION IN THE LLOYD S BROKER NETWORK GIVES US IMMEDIATE ACCESS TO DECISION-MAKERS, ENABLING OUR UNDERWRITERS TO PROVIDE QUICK, INNOVATIVE SOLUTIONS TAILOR-MADE TO THE NEEDS OF OUR CLIENTS AND THEIR BROKERS. Through Syndicate 1301, Torus offers a variety of specialty products for small and middlemarket to multinational risks. In addition to underwriting business directly at Lloyd s in London, we provide local access to Lloyd s security in France, Germany, Italy, The Netherlands, Switzerland and the US. Syndicate 1301 is licenced to underwrite in more than 75 territories worldwide. FOR MORE INFORMATION VISIT TORUS.COM 11
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OUR BUSINESS SEGMENTS MARINE Marine is one of the core offerings of Torus global specialty portfolio. Our market-leading underwriting expertise, both via our London and regional platforms, ensures Torus is able to effectively and efficiently service our marine clients needs. At Torus marine we provide worldwide solutions for the maritime industry, including ship owners, charterers, ports and terminals, shipyards, multimodal operators and cargo interests who operate in the complex environment of global trade. Our dedicated marine & energy liability team is a cornerstone of our marine practice. In addition to pure marine exposures, we are recognised industry experts for risks emanating from oil, gas and sulphur exploration as well as drilling and production in the field, both onshore and offshore. Specie and fine art also forms an important part of our marine book. We insure a variety of bespoke short-tail specie policies that fall outside standard commercial and industrial portfolios. Business is written on a facultative, line slip, binder or reinsurance basis through Lloyd s and company markets in London and Continental Europe. With our cargo, hull & machinery and specie teams being significant market participants in their own right, Torus has the ability to offer the full spectrum of marine coverages either on a standalone basis or through tailor-made multi-line package solutions based around our clients specific needs. UNDERWRITING CONTACTS Simon Schnorr Head of Marine e: sschnorr@torus.com Simon Urry Head of Marine & Energy Liability e: surry@torus.com Richard J Morris Cargo & Specie Manager e: rimorris@torus.com PRODUCTS: HULL & MACHINERY WAR CARGO MARINE & ENERGY LIABILITY TRANSPORT SPECIE & FINE ART Robert Scott-Mackie Senior Marine Underwriter e: rscott-mackie@torus.com FOR MORE INFORMATION VISIT TORUS.COM 13
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THE ENERGY SECTOR NEEDS SPECIALIST AND EXPERIENCED INSURERS WHO UNDERSTAND FULLY THE COMPLEX RISKS AND REGULATORY SCRUTINY THAT CLIENTS FACE. AT TORUS, THE IN-DEPTH DATA ANALYSIS WE CARRY OUT ON EVERY RISK ENSURES OUR DECISIONS ARE WELL-INFORMED AND MADE WITH CONFIDENCE. Ben Wilson, Head of Power & Utilities and Onshore Energy ENERGY Energy was one of the first lines of business written by Torus. Today, our global expertise serves some of the world s leading oil, gas and energy companies and we write business in most countries worldwide through our Lloyd s and London insurance platforms. Our clients are engaged in every type of upstream & offshore and midstream & downstream activity, from extraction of hydrocarbons, storage and distribution to refining and petrochemical operations. In the power & utilities class we cover all aspects of the generation, transmission and distribution of electric power, protecting property and machinery breakdown and consequential time element. Flexible programme structures allow participation on a full value/quota share, primary or excess of loss basis. PRODUCTS: ONSHORE ENERGY UPSTREAM & OFFSHORE ENERGY POWER & UTILITIES UNDERWRITING CONTACTS Ben Wilson Head of Power & Utilities and Onshore Energy e: bwilson@torus.com Marina Moore Head of Upstream & Offshore e: mmoore@torus.com FOR MORE INFORMATION VISIT TORUS.COM 15
UNDERWRITING CONTACTS Linc Trimble Head of ecommerce and US Excess Casualty e: ltrimble@torus.com Mark Sioma Head of MPL e: msioma@torus.com Robert Herald Head of Healthcare e: rherald@torus.com CASUALTY Casualty is Torus largest segment, accounting for 34% of our gross written premium. Across our diverse global portfolio, multi-risk programmes and bespoke polices are available through retail or wholesale and Lloyd s brokers. Our casualty experts can be found on the ground in London, Europe and the US. PRODUCTS: EXCESS CASUALTY ESCAPE MANAGEMENT & PROFESSIONAL LIABILITY HEALTHCARE ACCIDENT & HEALTH David Whyman Head of International Excess Casualty e: dwhyman@torus.com Francesco Dal Piaz Practice Leader MPL Europe e: fdalpiaz@torus.com 16 TORUS OVERVIEW 2015
US Excess Casualty and ESCAPE In the US, our underwriters cover a range of umbrella, excess and retained limit coverages across multiple market segments and small and mid-market businesses. In addition to traditional platforms, business is transacted through our award-winning broker portal, ESCAPE. We operate with minimal clearance issues or volume commitment as we know that s what our wholesale partners want. Healthcare Torus is a trusted healthcare insurance specialist - our team has built a reputation for rational decision-making, underwriting discipline and insight. We can tailor healthcare products on a direct, reinsurance, admitted and non-admitted basis for clients worldwide from acute care centres and nursing homes to small hospitals and physician groups. Through US Intermediaries, we can also access Syndicate 1301 for our hospital clients. Management & Professional Liability Our established management & professional liability practices in Continental Europe and the US specialise in director s and officer s and professional liability protection for traditional as well as emerging professions including business consultants, IT and media professionals. Our products are available on a modular basis with one, simplified, common policy architecture for all customer types, designed for flexibility in today s fast changing business environment. International Excess Casualty With more than 100 years combined experience, our international excess casualty team is one of the most experienced in the London casualty market and the single access point for casualty risks which emanate from Fortune 500 businesses. We provide multi-type coverages either on a standalone basis or participating as a coinsurer with other carriers within the London insurance community. Accident & Health Through Syndicate 1301, we write a focused book of international accident & health insurance, acting both as a lead and coinsurer. Be it for people on land, at sea or in the air, we specialise in protection for groups and individuals from air crew personal accident and loss of licence, accidental death and permanent and temporary disability to sports and high net worth business. FOR MORE INFORMATION VISIT TORUS.COM 17
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OUR CONSTRUCTION BROKERS AND CLIENTS CONSTANTLY FACE NEW CHALLENGES. DESIGN, ENGINEERING, METHODS AND MATERIALS ARE CONTINUOUSLY EVOLVING AND THE ASSOCIATED RISKS NEED TO BE CAREFULLY MANAGED. WE ARE EMPOWERED AND READY TO HELP. Tom Wylie, Head of Construction PROPERTY The complexity and volatility of the property sector requires specialist and experienced underwriters who understand your business. Located in London and Continental Europe, Torus leading property underwriters are drawn from a wide range of industries and write a diverse book of property insurance for clients worldwide through lineslip facilities and our Lloyd s and European platforms. With an increasing international focus, our general property team handles small, medium and large commercial and industrial property portfolios across all industry segments. We cover risks from low-hazard to severe-hazard occupancies, including residential property owners, single territory real estate and Fortune 500 businesses. In construction, we are one of a select group of insurers who can be accessed solely in London. We lead a significant amount of the business we write. Our in-depth understanding of the complex hazards and risks inherent in construction and erection projects ensures we bring substantial added value. Our property coverage also includes protection against terrorism and political violence attacks on property and insured assets. We insure against physical damage and business interruption losses, assisting our clients and their brokers to operate within an evolving political landscape. PRODUCTS: CONSTRUCTION GENERAL PROPERTY PROPERTY BINDERS TERRORISM UNDERWRITING CONTACTS Tom Wylie Head of Construction e: twylie@torus.com Kevin Clarke Head of Property e: kclarke@torus.com Tim Woodhouse Head of Terrorism e: twoodhouse@torus.com FOR MORE INFORMATION VISIT TORUS.COM 19
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AVIATION AND SPACE In an increasingly commoditised market, Torus aviation and space team differentiates itself through service provision, flexibility of coverage and understanding of the client s needs. With access to worldwide licencing, we operate across Continental Europe as well as through Lloyd s and the London market. We have a well-balanced and diversified offering and provide insurance solutions for businesses operating in the aviation industry, including airlines, aircraft manufacturers and airport service providers. We are dedicated to serving the space industry as the global interest in satellite technology and insurance continues to grow. We offer a comprehensive range of cover for satellites from launch to orbit, through to the end of commercial life. Our underwriters have extensive knowledge of the underlying technical risks associated with all types of aviation operations and spacecraft, as well as extensive experience with sophisticated risk modelling techniques. UNDERWRITING CONTACTS Richard Etridge COO, Continental Europe; Head of Aerospace e: retridge@torus.com Greg Dawson Senior Underwriter - Aviation e: gdawson@torus.com PRODUCTS: AIRLINES GENERAL AVIATION SPACE PRODUCTS Marc Weber Senior Underwriter - Airlines & Products e: mweber@torus.com FOR MORE INFORMATION VISIT TORUS.COM 21
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WORKERS COMPENSATION 2014 was the first full year of Torus writing workers compensation business in the US. With greater flexibility, especially on larger accounts, our team has more than 100 years combined experience and has strong relationships with brokers specialising in target industries and markets. Our workers compensation products cover US policies written for employers on a multiple state, federal acts, applicable common law and/or traditional state act coverage basis. We transact business directly with our clients and partner with independent agents, managing general underwriters, and select wholesale brokers throughout the US. PRODUCTS: ENERGY MARITIME AUTOMOTIVE DEALERS CONSTRUCTION HEALTHCARE OIL & GAS MANUFACTURING UNDERWRITING CONTACTS Jeff Wanamaker Head of Workers Compensation e: jwanamaker@torus.com Scott Tramel VP-Business Development e: stramel@torus.com Bill Lemoine VP Underwriting e: wlemoine@torus.com Cliff Bogh VP Underwriting e: cbogh@torus.com Tracey Hughes VP Underwriting e: thughes@torus.com John Searles VP Underwriting e: jsearles@torus.com FOR MORE INFORMATION VISIT TORUS.COM 23
PRODUCT LIST INTERNATIONAL / TORUS AT LLOYD S Products written via London, Continental Europe and Torus Syndicate 1301 ACCIDENT & HEALTH AVIATION & SPACE CONSTRUCTION EXCESS CASUALTY MANAGEMENT AND PROFESSIONAL LINES, EUROPE MARINE: CARGO, HULL, LIABILITY, WAR ONSHORE ENERGY PROPERTY, DIRECT & FACULTATIVE PROPERTY BINDERS SPECIE & FINE ART TERRORISM UPSTREAM & OFFSHORE US HEALTHCARE* *Lloyd s only US Products written locally through Torus admitted and excess & surplus lines carriers HEALTHCARE US UMBRELLA & EXCESS ESCAPE ESCAPE COMMERCIAL E&O ESCAPE EQUIPMENT FLOATER ESCAPE EXCESS CASUALTY MANAGEMENT & PROFESSIONAL LIABILITY COMMERCIAL ERRORS & OMISSIONS LIABILITY LAWYERS PROFESSIONAL LIABILITY MANAGEMENT LIABILITY WORKERS COMPENSATION AUTOMOBILE DEALERS CONSTRUCTION ENERGY HEALTHCARE MANUFACTURING OIL & GAS USL&H AND JONES ACT / MARITIME 24 TORUS OVERVIEW 2015
FOR MORE INFORMATION VISIT TORUS.COM 25
OUR HISTORIC MILESTONES 2008 23 JUNE Torus opens for business with operations in London and Bermuda 2009 02 JUN Torus US property and excess casualty platform opens 07 SEP Global specialty division launched 09 DEC Merger with Sideris Re Holdings Limited (Lloyd s Syndicate 2243) 2010 04 MAY Torus acquiers Glacier Insurance AG, now Torus Insurance (Europe) AG 11 OCT Launch of ESCAPE, Torus online broker portal 2011 20 SEP Torus acquires Lloyd s Syndicate 1301 05 DEC C.V. Starr s Continental Europe renewal rights acquired 2012 31 JUL Lloyd s managing agency approved in principle: Torus Underwriting Management Limited 2013 28 MAR Torus Underwriting Management Limited launches 31 DEC Torus acquires renewal rights to Enstar Group s former platform, SeaBright, and enters the US workers compensation market 2014 01 APR Torus is acquired by Enstar Group, together with the Trident Funds managed by Stone Point Capital 08 MAY Dowling Capital Partners invests USD$8m in Torus becoming minority investor 2015 27 JAN Enstar completes acquisition of Companion Property and Casualty Insurance Company; Torus to offer renewal rights on certain HO6 and Wellington business 06 FEB Torus announces it is to acquire two specialty insurance agencies in Belgium: Vander Haeghen & C and Arena 04 MAY Torus announces its partnership with London Aviation Underwriters to offer general aviation throughout the US 01 JUN Torus enters into a joint venture, Objective, to underwrite business in China through Hong Kong 26 TORUS OVERVIEW 2015
GET IN TOUCH INTERNATIONAL OPERATIONS AND LLOYD S LONDON 88 Leadenhall Street, London, EC3A 3BP, UK t: +44 (0)20 3206 8000 US OPERATIONS JERSEY CITY Harborside Financial Center, Plaza 5, Suite 2600, Jersey City, NJ 07311, USA t: +1 (201) 743 7700
For more information visit torus.com 28 TORUS OVERVIEW 2015