Investment improvement drives Enstar to increased Q3 profit

Legacy re/insurer Enstar soared to a $148 million profit in the third quarter, largely driven by an improvement in mark to market investments. 

The Bermuda-based company posted a $229 million gain in fair value changes in securities compared to a $12 million loss in the same period in 2023. In 2023, the company had net income of $38 million.

Enstar, which is in the process of being taken private by Sixth Street and other investors, had net premiums earned from its run off business of $11 million, while investment income  rose to $163 million from $143  million. 

The company, led by chief executive officer Dominic Silvester, also benefited from a $36 million positive development from prior periods in its run-off segment. However, general and administrative expenses rose to $110 million from $91 million in the same period in 2023. 

 The company recorded a $23 million foreign exchange gain compared to a $15 million loss. 

For the first nine months of 2024, the company recorded a profit of $393 million compared to $483 million in 2023, despite fair value changes in investments rising to $400 million from $222 million. 

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