Randall & Quilter Investment : Full Year results for the 12 months ended 31 December 2020

Full Year 2020 Results

Investor Presentation

PRIVATE & CONFIDENTIAL

STRATEGY I INNOVATION I EXPERTISE

A history of success

A future of opportunity

A leading non-life global specialty insurance company

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WE ARE A UNIQUE SPECIALTY INSURANCE COMPANY

Program Management and Legacy Insurance businesses are both well positioned to capitalise on favourable market conditions

STRATEGY I INNOVATION I EXPERTISE

	Strongbalance sheet and	8	1	Market leader in both
	Program Management
	financial track record
	and Legacy Insurance
Sizeable opportunity to
		2		Significant secular
	grow fee income by
managing third party capital 7				growth in each business

Conservative investment 6 strategy

Growing fee-based5 Program Management

business

3High barriers to entry in

both businesses

4Robust returns on tangible equity in Legacy Insurance

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STRATEGY I INNOVATION I EXPERTISE

FY 2020 RESULTS

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2020 YEAR IN REVIEW - STRONG PERFORMANCE

STRATEGY I INNOVATION I EXPERTISE

Accelerated Growth for Group		Breakthrough for Program Management		Record Year for Legacy Insurance
Pre-Tax Operating Profit of £16m		18 new programs (48 total Programs)		19 deals comprising £674m of assets and
(102% increase over 2019)				£500m of reserves
		Gross Written Premium of $539m
Operating EPS of 5.9p		(46% increase over 2019)		Pre-Tax Operating Profit of £38m
(38% increase over 2019)				(46% increase over 2019)
		Pre-Tax Operating Profit of $3.4m
Fee Income of £19m		(Profitable in just 4 years)		15% Operating Return on Tangible Equity
(89% increase over 2019)				(5-year average of 20%)
		On track for Gross Written Premium of
		$1.5b in 2023
Executed Key Strategic Initiatives		Strengthened Capital Position		New Progressive Dividend Policy
Strengthened leadership with key senior		£173m ($225m) of capital raised		Announced new progressive dividend
management appointments				policy with 25 - 50% payout ratio
		Group Solvency Ratio of ~202%
Acquired 35% stake in strategic program		(Target > 150%)		FY 2020 cash distribution of 4p per share
MGA, Tradesman
		Adjusted Debt/Cap of 28%		Intend to grow annual dividend from FY
Expanded footprint by launching US E&S		(Target < 30%)		2020 amount
Program Management carrier, and
opening of branches in Italy and the UK

Note: See End Notes in Financial Information section of the presentation for definitions

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GROUP RESULTS EXPERIENCED ACCELERATED GROWTH

STRATEGY I INNOVATION I EXPERTISE

Pre-Tax Operating Profit grew 102% and Operating EPS grew 38%; 4.0p per share distribution

(£m, except where noted)	FY 2020	FY 2019	% Change
Key Performance Indicators
Pre-Tax Operating Profit	16.0	8.0	102%
Operating EPS (p)3
5.9	4.3	38%
Tangible Net Asset Value	340.8	245.5	39%
Tangible Net Asset Value per Share (p)3			2%1
124.4	125.3
Fiscal Year DPS (p)	4.0	3.8 (cash)	5%2
	6.1 (non-cash)
		93%2
Distribution Payout Ratio	56%	NM
IFRS
Profit Before Tax	30.2	38.1	(21%)
Profit Before Tax EPS (p)3
11.1	20.3	(45%)
Net Asset Value per Share (p)3	142.4	147.2	(1%)1

Management Discussion & Analysis

• Pre-TaxOperating Profit of £16.0m, up 102%, driven by strong results in both Legacy Insurance and Program Management
• Profit Before Tax under IFRS of £30.2m, down 21%, driven by net intangibles associated with Legacy Insurance acquisitions in 2019
• Operating Earnings per Share of 5.9p, up 38%, which is partially impacted by the £81m equity capital raise in April 2020
• Cash distribution per share of 4.0p, implying a payout ratio of 56% of Pre-Tax Operating Profit; includes final distribution of 0.2p per share to be paid in June 2021 as a dividend

1. Includes 3.8p per share cash distribution paid in 2020
2. Excludes 2H 2019 distribution paid in bonus shares
3. On a fully diluted basis

Note: See End Notes in Financial Information section of the presentation for definitions

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