Enstar posts Q3 net loss of $444mn
Enstar Group has reported a third-quarter net loss of $444 million, compared with a net loss of $196 million for the three months ended September 30, 2021.
It recorded a net loss of $1.2 billion for the first nine months of the year, compared with net earnings of $365 million for the same period of last year.
“The significant rise in interest rates to combat high inflation continues to drive unrealised bond losses in our investment portfolio. However, we expect our bond portfolio to recover these unrealised losses over time as these bonds will amortise back to par or full principal value as they reach maturity,” said Dominic Silvester, Enstar’s chief executive officer.
He added: “Our balance sheet remains strong, and we have the capacity to meet market demand. We will continue to provide tailored solutions to our clients, drive positive claims outcomes and invest for the long term. We are confident that this focus will provide exceptional returns for our stakeholders.”
Enstar said ROE was impacted by $395 million of net unrealised losses arising primarily from interest-rate increases on fixed-maturity portfolios that are classified as trading, combined with $151 million of net unrealised losses in Enstar's non-core portfolios.
