Slides
Page 1
1 Fortitude Re 2024 December 17, 2024
Page 2
2 Forward Looking Statement CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains statements that do not directly or exclusively relate to historical facts. These statements are forward-looking statements that can typically be identified by the use of forward-looking words, such as “will,” “may,” “could,” “project,” “believe,” “anticipate,” “expect,” “estimate,” “continue,” “intend,” “potential,” “plan,” “forecast” and similar terms. These statements are based on FGH Parent, L.P. and its subsidiaries (“Fortitude Re”), as applicable, current intentions, assumptions, expectations and beliefs and are subject to risks, uncertainties and other important factors. Many of these factors are outside the control of Fortitude Re and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, among others: • deterioration of general conditions in the global capital markets and the economy; • adverse capital and credit market conditions, including volatility in interest rates and credit spreads, prolonged periods of low interest rates, volatile equity markets and decreased liquidity and credit capacity; • our inability to receive dividends or other distributions from our operating subsidiaries for liquidity and to fund our debt obligations; • our inability to grow new business volumes or continue new business volumes at historic levels; • risks arising from acquisitions or other strategic transactions; • the cyclical nature of the reinsurance business; • risks related to natural and man-made disasters and catastrophes, diseases, epidemics, pandemics (including COVID-19), malicious acts, cyberattacks, terrorist acts, civil unrest and climate change; • the effects of climate change on our business as well as our policyholders and third parties on whom we rely; • inaccuracies in our policyholders’ evaluations or disclosures of the exposures associated with their insurance underwriting; • risks related to our international operations; • changes in accounting standards; • changes in our estimates of appropriate reserve levels, or the failure to maintain adequate reserves; • the risk of inflation; • errors or other failures in models that rely on a number of estimates, assumptions, sensitivities and projections that are inherently uncertain and which may contain misjudgments and errors; • a downgrade in our financial strength, credit or other ratings applicable to our business; • our exposure to credit risk; • competition and consolidation in the reinsurance industry; • failure to attract and retain our key executives and qualified personnel; • failure to collect premiums owed to us by our cedants’ policyholders or intermediaries; • illiquidity of portions of our investment portfolio during times of market volatility or disruption; • failure of our risk management policies and procedures to adequately identify, monitor and manage risks, which could leave us exposed to unidentified or unanticipated risks; • changes in U.S. federal income or other tax laws or the interpretation of tax laws; • changes in U.S. federal, state and other securities and state insurance laws and regulations; • adverse outcomes of legal or regulatory actions; • possible future legal proceedings and regulatory investigations; • reductions in the value of our investment portfolio; • failure to source investment opportunities; • failure to obtain additional debt or equity financing; • changes in consumer preferences; • our reliance on third-party IT systems; and • a breach of information security or other failure to protect confidential information. You should read this presentation completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this presentation are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this presentation, and we do not undertake any obl igation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating resu lts over time or otherwise.
Page 3
3 Section 03 Evolving Role of Private Capital Section 01 Fortitude Re Updates Section 02 Marketplace and Transactions Agenda
Page 4
4 Fortitude Re Updates Section 01
Page 5
5 World-Class Talent Robust CapitalizationDiversified Liability Portfolio Long-dated, diversified portfolio that provides earnings stability and supports underwriting discipline Key Metrics 2020 3Q24 Total Transactions 1 14 Client Settlements 12 126 # of Asset Managers 2 10 ▪ Engaged culture focused on cultivating industry leading talent – Voluntary attrition c. 5%, well below industry average ▪ c. 150 Actuaries drive industry-leading underwriting capabilities across lines of business ▪ Earned prestigious “Great Place to Work” certification Bermuda 12 Jersey City 34 Bermuda 40 Remote 151 Nashville 70 Jersey City 157 Nashville 163 + Other pensions / sovereign wealth funds Balance Sheet Strength 3Q24 Group Capital Ratio2 >170% NAIC RBC2 >800% $32B 2020 c.$76B 3Q24 116 2020 $7B 3Q241 New Rating Agency Ratings Moody’s A3 Sponsors 511 3Q24 $3.5B 20201 [1] Management Adjusted Book Value (MABV) basis. [2] “Group Capital Ratio”: Capitalization ratio for Fortitude Re Group, calc ulated using the Deduction and Aggregation method as filed with the Bermuda Monetary Authority (“BMA”), the Bermuda regulator an d Group Supervisor, and defined as Total Available Capital as a % of an equivalent of the Enhanced Capital Requirement (“ECR”); “NAIC RBC”: Capital ization ratio for FLIAC, Fortitude Re's core U.S. regulated entity, calculated as Total Adjusted Capital as a % of Risk -Based Capital Requirement (“RBC”) prescribed by the National Association of Insurance Commissioners (“NAIC”). Fortitude Re: A Growing Reinsurance Leader with a Diversified Liability Portfolio, World-Class Talent, and Robust Capitalization Supported by Sophisticated Investors World-Class Talent
Page 6
6 Alon Neches Chief Executive Officer Industry Experience: 20+ Years Prior Experience: Carlyle, AIG, Federal Reserve Jinney Kim Head of Strategic Projects Industry Experience: 30+ Years Prior Experience: AIG, JP Morgan, Metlife Sean Coyle Chief Operating Officer Industry Experience: ~20 Years Prior Experience: AIG, ACE Jeff Burman General Counsel Industry Experience: 20+ Years Prior Experience: AIG, Cadwalader James West Chief Actuary Industry Experience: 20 Years Prior Experience: AIG, CNO Kai Talarek Chief Growth Officer Industry Experience: 20+ Years Prior Experience: Oliver Wyman, American Express Ming Zhang Chief Risk Officer Industry Experience: 15+ Years Prior Experience: AIG, MetLife, Sirius Point, Oliver Wyman Jeff Mauro Chief Investment Officer Industry Experience: 10+ Years Prior Experience: AIG, Macquarie Greta Hager Chief Financial Officer Industry Experience: ~20 Years Prior Experience: Mass Mutual, AIG Denise Nichols Chief People & Culture Officer Industry Experience: 30+ Years Prior Experience: Voya, Marsh McLennan Fortitude Re’s Executive Leadership Team
Page 7
7 STRONG TRACK RECORD OF CASH FLOW GENERATIONREGULATORY CAPITAL LEVELS (3Q24) Fortitude Group Capital Ratio1 >170% Fortitude Group Holdings Parent paid inaugural external dividend of $200M Fortitude Re Operating Companies’ Dividends to Fortitude Group Holdings: $1B $750M $300M Paid in 20213 Paid in 20223 Paid in 2024 Fortitude Reinsurance Company Ltd ECR Ratio1>185% Fortitude International Reinsurance Ltd. ECR Ratio1>295% >800% Fortitude Life Insurance & Annuity Company RBC Ratio2 Capital Remains Resilient and Cash Flow Generation is Strong Across Fortitude Re’s Operating Companies [1] Regulatory Minimum Requirement for Bermuda Companies:120% [2] Regulatory Minimum Requirement for US Companies: 300% [3] D ividends paid in cash and other public and private assets
Page 8
8 Fixed and Payout Annuities 55% Life Insurance 40% Accident & Health 1% P&C 4% Public Credit 57% Private Credit 12% Structured 17% Mortgage Loans 8% Alternatives 5% Cash & Other 1% Our Diversified Liability Portfolio Is Backed by a High-Quality Investment Strategy, Including a Fixed Income Portfolio That Is 95% Investment Grade ▪ Fortitude Re is one of the largest Bermuda composite reinsurers with annuities, life and P&C ▪ Balanced mix of annuities and protection; diversifying mortality and longevity risks ▪ Highly illiquid and long-dated liabilities (~75% of current reserves projected to remain in force 10 years from now) $77B2 (General Account) ASSET ALLOCATION ($MV)LIABILITY PORTFOLIO ($MV) $74B1 (General Account) ▪ 94% of the portfolio is in fixed income assets, of which 95% is investment grade ▪ CML at 4% of the portfolio (below industry average) is diversified and high quality, with limited impairments to date ▪ Structured asset exposure is significantly lower than peers Note: Data as of September 30, 2024. [1] General Account GAAP reserves net of ceded insurance liabilities; does not include Separate Account liabilities. Fixed An nuities include the General Account portion of Variable Annuities. [2] Market value of general account invested assets net of reinsurance and excluding cumulative change in fair value of funds withheld.
Page 9
9 Marketplace and Transactions Section 02
Page 10
10 Carlyle acquires 19.9% of Fortitude Re 2020 & Prior 2021 2022 2023 2024 Fortitude Re raises $2.1B in primary capital Carlyle investor group acquires 96.5% of Fortitude Re Completed AIG Carve-out $3B Fixed Annuity reinsurance transaction with USAA $4B reinsurance transaction with Taiyo Life (Japan) Two significant reinsurance transactions: Flow with leading Japanese Life Co +$1B U.S. closed-block Opened Japan Representative Office + Two closed-block transactions in Japan Flow reinsurance transaction with leading Japanese insurer Closed $28B reinsurance transaction with Lincoln Financial Signed agreement to acquired $31B1 of variable annuity liability from Prudential 14 Transactions Over $6B Raised2 Covering $100B+ in total reserves To support insurance clients seeking tailored risk solutions Fortitude Re receives Final Determination that the BMA will serve as its Group Wide Supervisor We Have Executed an Ambitious Growth Program and Built the Infrastructure to Responsibly Manage That Growth [1] Includes Separate Accounts. [2] Total Capital.
Page 11
11 • New transactions adding scale and diversification by business line and customer • Japan growth adds market diversification and favorable product characteristics • Lincoln deal added significant scale and favorable to line of business diversification 35 35 37 38 70 100 2018 2019 2020 2021 2022 2023 2027E Protection Payout Annuities (life contingent) Payout Annuities (non-life contingent) Deferred Annuities Casualty GAAP RESERVES ($B)1 • Global P&C (Re)insurer: Casualty LPT • James River: Casualty LPT • Prudential: Variable Annuity and Life (legal entity M&A) • Taiyo Life: Annuity • Leading Japanese Life Company: Flow Whole Life • Leading Japanese life reinsurer: Protection • Leading Japanese Life Insurer: Deferred Annuity • Lincoln: Accumulation and Guaranteed UL, fixed annuities • USAA: Fixed Annuities 140 [1] Includes Separate Accounts and Contract Deposit Successful Strategy Execution Is Manifesting in Our Book’s Scale & Diversification
Page 12
12 SIGNIFICANT GENERAL ACCOUNT GROWTH ($B) 38 77 YE 2021 3Q 2024 HIGH PERSISTENCY OF SCALE of 3Q 2024 reserves projected to remain on balance sheet by 2033 GREATER LIABILITYDIVERSIFICATION2 FIRST FLOW TRANSACTIONS 21% 70% 9% VA Protection Annuities P&C CONTINUED LOW EXPOSURE TO LAPSE RISK • Improved balance of Annuity and Protection on top of P&C vs. Life diversification • First flow transaction in Japan in Oct. 2022; 2nd transaction closed in March 2024 > 80% > 65% GAAP Reserves non-callable or non-economic to call1 YE 2021 3Q24 YE 2021 3Q 2024 75% 41% 52% 3% 4% c.+30% P.A. Landmark Lincoln and Japan Transactions Continue to Build on Our Strengths [1] Callable products are protected by surrender charges or ITM guarantees. Percentage of Liabilities including P&C. [2] Gene ral account reserves.
Page 13
13 Total Addressable Market1 Specialist / Asset-Intensive Reinsurers % Addressable Market Market Opportunity Japan $2T+ > $1T U.S. $7T c. $1.5T MARKET OVERVIEW MARKET POSITION COMPETITIVE LANDSCAPE Transaction Types Representative OfficeBlock Flow ✓ ✓ ✓ Competitor 1 ✓ ✓ ✓ Competitor 2 ✓ ✓ Competitor 3 ✓ ✓ Competitor 4 ✓ ✓ Block Flow Japan Transactions Both Competitor Competitor Competitor Competitor Competitor Competitor Competitor Competitor Competitor Competitor Competitor Competitor LIFE and A&H P&C ANNUITY Fortitude Re’s Competitive Edge in Japan Remains Significant [1] Japan TAM estimated based on insurance reserves and reserves for price fluctuations data from The Life Insurance Associat ion of Japan as of 3/31/2024; US TAM estimated based on reserves and separate account liabilities from S&P Capital IQ as of 6/30/ 2023. T&D Strategic Partnership • Market Expertise: Benefit from long history and knowledge of Japan market • Diversifying Business: several executed transactions to date, including block and flow • Japan Network: Connecting Fortitude with key market contacts, support establishing rep office
Page 14
14 Evolving Role of Private Capital Section 03
Page 15
TRADE SECRET AND STRICTLY CONFIDENTIAL 15 Carlyle Is a Global Investment Firm with Deep Industry Expertise That Manages $447B in Assets, Spanning Three Business Segments and 612 Investment Vehicles Office Location OVERVIEW OF CARLYLE CARLYLE JAPAN PARTNERS (“CJP”) 29 Offices ~2,300 Full-Time Employees 17 Countries Corporate Private Equity Global Credit Global Investment Solutions ~$169B AUM ~$194B AUM1 ~$84B AUM ~430 Investment Professionals ~210 Investment Professionals2 ~100 Investment Professionals ~$447B Assets Under Management (“AUM”) 24 Years Investing in Japan Kazuhiro Yamada Co-Head of Carlyle Japan 30 years experience 22 years with Carlyle Takaomi Tomioka Co-Head of Carlyle Japan 40 years experience 19 years with Carlyle >72% Proprietary Deals Originated ~25 Team Members Dedicated to Japan Buyout ~14 Years MD’s Avg. Tenure with Carlyle Senior Leadership CJP I 2001 CJP II 2006 CJP III 2013 ¥50B ¥166B ¥120B CJP IV 2021 ¥258B CJP V 2024 ¥430B Note: Firm data as of 9/30/2024. AUM numbers may not sum to total due to rounding. Past performance is not indicative of futu re results and there can be no assurance that any trends will continue. [1] Carlyle Global Credit AUM includes $83.2B of insurance related assets. [2] Includes 11 professionals in the Carlyle Globa l Capital Markets group. Capital Raised by Fund Vintage
Page 16
TRADE SECRET AND STRICTLY CONFIDENTIAL 16 Carlyle’s Global Credit Platform Manages $194B Across the Risk Return Spectrum and Benefits from Carlyle’s Global Scale and Long-Standing Sourcing Relationships LIQUID CREDIT AUM: $49.9B PRIVATE CREDIT AUM: $28.3B REAL ASSETS CREDIT AUM: $18.6B ASSET-BACKED FINANCE AUM: $7.4B CLO MANAGEMENT Carlyle managed CLOs (broadly syndicated senior secured bank loans) CLO INVESTMENT Equity and debt CLO tranches REVOLVING CREDIT Senior secured revolving credit facilities of non-IG issuers DIRECT LENDING Directly originated loans, primarily first lien and financial sponsor-backed OPPORTUNISTIC CREDIT Directly originated private capital solutions primarily for non-sponsored companies HYBRID CAPITAL Flexible mandate across credit- oriented solutions, structured equity, and stressed / dislocated investments AVIATION FINANCE Commercial aircraft leasing / servicing and securitization of aircraft portfolios INFRASTRUCTURE CREDIT Credit investments in U.S. and international infrastructure assets REAL ESTATE CREDIT Lending to global real estate projects IG DEBT Directly originated, privately structured asset- backed solutions, focused on acquiring or lending against diversified pools of collateral with contractual cash flows NON-IG DEBT RESIDUAL / EQUITY PLATFORM INITIATIVES AUM: $90.2B 1 CARLYLE TACTICAL CREDIT FUND CROSS-PLATFORM SMAs ADVISORY CAPITAL Closed-end Interval fund investing dynamically across Carlyle’s entire credit platform Tailored separate accounts investing across the credit platform Credit assets sub-advised for insurance platform Note: Firm data as of 9/30/2024 unless otherwise stated. [1] Carlyle Global Credit AUM includes $83.2B of insurance related a ssets. Past performance is not indicative of future results and there can be no assurance that any trends will continue.
Page 17
TRADE SECRET AND STRICTLY CONFIDENTIAL 17 The Expansion of Private Credit Has Been Driven by Market Appetite for Alternative Financing and the Direct Origination Capabilities of Alternative Asset Managers Potential Benefits to Financial Markets ▪ Alternative Financing: Provides critical access to capital for borrowers during economic downturns – Filled the gap created by stricter capital and lending standards imposed after the 2008 financial crisis1 – Continued to provide an alternative to traditional banks during the 2020 COVID pandemic1 ▪ Large and Growing Market: The global private credit market is estimated to be ~$1.7T in size2 – AUM expected to grow to over $3.5T by 20283 ▪ Stable Funding: Well-matched duration with long-term private capital mitigates liquidity risk associated with traditional bank deposit funding – The Federal Reserve’s May 2023 Financial Stability Report described financial stability risks from private credit funds as low4 ▪ Excess Risk-Adjusted Returns: Present the opportunity to harvest Illiquidity and complexity premia without increasing portfolio credit risk5 – Over the last decade, direct lending had an average yield ~430bps higher than that of the leveraged loan market6 ▪ Diversification: Bespoke underwriting and broader asset sourcing provides access to diversifying investment content ▪ Lower Expected Losses: Differentiated origination capabilities, greater structural protections, and enhanced monitoring can result in favorable expected loss outcomes during periods of stress – Private credit defaults less than 2% during 2020 COVID pandemic, lower than that of high-yield bonds and leveraged loans7 Potential Benefits to Private Credit Investors Note: These statements reflect the subjective views of Fortitude and Carlyle. For illustrative purposes only. There is no ass urance any trends will continue. [1] International Monetary Fund “Global Financial Stability Report”, April 2024. [2] Preqin data as of December 2023. [3] BlackRock “Private Debt: The multi-faceted growth drivers”, September 6, 2024. [4] The Federal Reserve System, “Financial Stabil ity Report”, May 2023. [5] Aviva Investors, “ Illiquidity premia in private debt”, March 12, 2024. [6] Reflects spread between the Cliffwater Direct Lending Index and LSTA US Leveraged Loan 100 Index calculated on a quarterly basis. [7] Proskauer “Q3 2023 Private Credit Default Ind ex Highlights the Resilience of Private Credit in a Turbulent Economy”, October 24, 2023. 1 1 2 3 2 3
Page 18
TRADE SECRET AND STRICTLY CONFIDENTIAL 18 Private Capital Asset Managers Have Built a Meaningful Presence in the Insurance Industry over the Last Decade >$30B New Capital Injected >$800B L&A Transaction Volume +60bps Additional Net Yield New Capital Injected into Insurers by Private Capital Globally since 20141 Transaction Volume by Private Capital Backed Insurers Globally since 20121 Net Yield for Private Capital Backed Insurers versus Traditional Insurers2 ~13% Investment Assets ~35% Sales Volumes U.S. Investment Assets Managed by Private-Capital Backed Insurers1 U.S. Fixed and Fixed Indexed Annuity Sales by Private-Capital Backed Insurers1 [1] McKinsey Report “Global Insurance Report 2025: Growth and relevance in life and beyond“, November 2024. Data sources incl uding Ibid, A.M. Best, and LIMRA. “New Capital” is calculated not including capital generated organically through earnings. [2] A.M. Best Report “Insurance companies remain prime targets for private equity”, July 2021.
Page 19
19 TRADE SECRET AND STRICTLY CONFIDENTIAL Appendix
Page 20
20 ASSET-LIABILITY CASH FLOW MATCHING ($B) • Start with liability analysis: asset portfolio must achieve adequate cashflow matching to reliably support cedants’ policyholder obligations • Set constraints on the level of illiquid and risk assets to ensure asset portfolio is sufficient to defease liabilities due to changes in expectations caused by policy holder behavior or credit stress • Incorporate historical credit origination and performance data in setting expected return • Optimize return per unit of risk and manage various regulatory capital requirements • Construct portfolio with asset cash flows that defease liabilities • Interest rate derivatives used to reduce reinvestment risk further Optimize expected net yield per unit of risk, incorporating economic and regulatory capital SAA Porfolio, 5.5%, 6.51 Minimum Risk Portfolio, 3.2%, 6.15 Maximum Y ield Portfolio, 6.8%, 6.70 5.50 5.70 5.90 6.10 6.30 6.50 6.70 6.90 3.2% 3.7% 4.2% 4.7% 5.2% 5.7% 6.2% 6.7% Net Yield (%) BSCR Capital Factor Net Yield SAA Porfolio Minimum Risk Portfolio Maximum Yield Portfolio Optimization Subject to Key Constraints • Cash flow / key rate duration matching • Cedant investment guidelines • Internal risk appetite and diversification limits • Investable universe/ asset supply Liability CF Asset CF Fortitude Re hedges 100% of interest rate risk and utilizes the incremental spread from shorter-duration assets to defease liability cash flows and fund shareholder returns Illustrative Cash Flows After Matching Robust Analytic Framework Focused On Matching Liability and Asset Cash Flows Enables Efficient Capital Management and Investment Allocation Decisions
Page 21
21 • Investment Grade Liquid fixed income is decreasing as a proportion of the total portfolio due to increased origination and rotation into private assets • Increased yield and spread while maintaining appropriate risk levels and portfolio diversification, relative to our liabilities with industry-leading illiquidity • Maintained average credit rating at A- 1 56% 53% 42% 63% 58% 22% 24% 31% 16% 21% 11% 8% 10% 8% 10% 5% 5% 3% 1% 2% 4% 5% 7% 6% 6% 1% 4% 5% 4% 2%3% 1% 1% YE20 YE21 YE22 YE23 3Q24 Investment Grade Liquid Fixed Income Illiquid Fixed Income Structured Products Emerging Markets & High Yield Alternatives Other JGB 4.3% 4.3% 4.5% 4.7% 4.8% YE20 YE21 YE22 YE23 3Q24 Investment Strengths HISTORICAL ASSET ALLOCATION ($M) HISTORICAL BOOK YIELD [1] Includes Cash & Derivatives, Other
Page 22
TRADE SECRET AND STRICTLY CONFIDENTIAL 22 34% 2% 18% 29% 17% Apartments Hotel Industrial Office Retail • Current Commercial mortgage portfolio of $3.4B, representing 4% of total assets, which is below industry standard • Portfolio LTV remains low at 61%, based on recent appraisals, providing protection against further deterioration • Watchlist exposure has remained relatively consistent over the past year; restructuring being executed on a select few loans to minimize losses Stable credit quality; declining exposure to Office and RetailMV% BY PROPERTY TYPE (AS OF 3Q24) c. $3.4B Commercial Mortgage Loans
Page 23
23 Kai Talarek, Chief Growth and Optimization Officer ▪ Mr. Talarek is the Chief Growth and Optimization Officer, and previously spent 4 years as Chief Financial Officer of Fortitude Re. ▪ Prior to joining Fortitude Re, Mr. Talarek spent more than 20 years in the financial services sector in the United States. ▪ He most recently was a partner in the insurance practice of management consultant Oliver Wyman in New York where he spent 14 years focusing on complex risk, finance and strategy issues for insurers. ▪ Before joining Oliver Wyman, Mr. Talarek was a Vice President in the Treasury department of American Express, Vice President of Strategy at Zurich Re, and an engagement manager at Mitchell Madison Group in New York and San Francisco, CA. ▪ Mr. Talarek holds an MS in Mechanical Engineering from RWTH Aachen, Germany, and an MBA from UC Berkeley in California. Brian Schreiber, Chairman of Fortitude Re ▪ Mr. Schreiber is a Managing Director and Head of Carlyle Insurance Solutions where he also serves as Chairman of Fortitude Re. He is also a member of Carlyle’s Leadership Committee. ▪ Mr. Schreiber joined Carlyle in 2016 as Co-head of Carlyle Global Financial Services Partners after spending 20 years at AIG in a variety of senior executive roles, including Chief Strategy Officer, Deputy Chief Investment Officer, and Global Treasurer. ▪ Mr. Schreiber was a key member of AIG’s executive leadership team that engineered and executed AIG’s successful restructuring and recapitalization. ▪ He led AIG’s divestiture, hedging and capital markets activities coming out of the financial crisis, executing 120+ transactions and raising over $200B. ▪ Prior to the crisis, Mr. Schreiber was responsible for leading approximately $60B of acquisitions and strategic investments for AIG including SunAmerica, American General, and Edison Insurance Japan. ▪ He earned a BS from New York University, an MBA from Columbia Business School, and is a member of the Council on Foreign Relations. Alon Neches, Chief Executive Officer ▪ Mr. Neches is the Chief Executive Officer of Fortitude Re. ▪ He is an insurance industry veteran with over 20 years of experience as an operator, investor and advisor in regulated industries. ▪ Prior to joining Fortitude Re, Mr. Neches was a Managing Director and Partner in the Insurance Solutions business of global investment firm Carlyle. ▪ Previously, Mr. Neches held various senior executive roles at AIG, including Global Treasurer and Head of Corporate Development, Chief Investment Officer of the North American Property Casualty Portfolio and Senior Managing Director in Global Capital Markets. ▪ He was also a Senior Restructuring Specialist Officer at the Federal Reserve Bank of New York and focused on managing the Fed's investment in AIG. ▪ Mr. Neches began his career as an investment banker at Merrill Lynch & Co. he earned a J.D. from Harvard Law School and a B.S. from Duke University. Fortitude Re Key Management Presenting Today