Bermuda based run-off specialist Enstar has reported a major turnaround in year pro forma net earnings of $4.3 million, compared with a net loss of $74 million in 2013 for Torus, its active underwriting operation.
Enstar reported net earnings from Torus of $2.6 million for the nine months since it was acquired by Enstar and the Trident V funds. Enstar also disclosed pro forma net earnings of $1.7 million for Torus’ first quarter of 2014, resulting in 2014 full year pro forma net earnings of $4.3 million for Torus. Torus’ net loss ratio for the nine months ending December 31, 2014 was 58 percent.
A statement from Torus said that since the change in ownership on April 1, 2014, its new management team has focused on repositioning the business, specifically refocusing its strategy on Torus’ historically well performing core business lines, exiting underperforming lines and improving operational effectiveness and efficiency.
During the reporting period, considerable progress was made on reducing Torus’ operating expense ratio, with further improvement remaining a priority.
Nick Packer, Torus Group Chairman and CEO, said: “2014 has been a transformational year for Torus and I am pleased by our progress. We have combined Enstar’s operational expertise and Stone Point’s insurance sector experience with the successful underwriting capabilities of Torus. In a short time we have significantly reduced operating expenses, and consequently have improved results in line with our expectations.
“Despite the challenging market environment, we believe that good fundamentals and opportunities for profitable growth exist in many lines whilst we continue to drive further improvement in our expense base and maintain a strong focus on risk management. In addition, as a subsidiary of Enstar, Torus has a unique opportunity to acquire attractive portfolios of business as demonstrated with the renewal opportunities from Companion and the Arena and Vander Haeghen transactions.”
Torus, Enstar, Bermuda, Reinsurance, Nick Packer