Enstar posts Q1 net loss of $282m

Bermudian-based insurer Enstar Group has reported a net loss attributable to common shareholders of $282 million for the first quarter of this year, which is a 254% change from a net profit of $183 million a year earlier. Enstar said this was the result of unrealised losses on fixed income securities in the rising interest rate environment.

On 10 January, Enstar entered into a transaction with Aspen Insurance Holdings to assume $3.1 billion of net loss reserves in a loss portfolio transfer transaction, subject to a limit of $3.6 billion. As a result of an existing adverse development cover with Aspen that will be absorbed by this transaction, Enstar will assume an incremental $2.4 billion net loss reserves with a diverse mix of property, liability and specialty lines of business, in exchange for incremental premium of $2.4 billion, and assume claims control. This transaction is expected to close in the second quarter of 2022.

On Russia’s invasion of Ukraine and the volatility this has caused in global commodity markets, as well as the loss of insured property in Ukraine and Russia, Enstar said it has performed a review of potential exposures in its investment portfolio, its underwriting risks, and its acquisition pipeline, and considered operational disruption. It has concluded that there are “no significant direct impacts from this event at this time”, adding that it continues to monitor for changes to sanctioned individuals and organisations and will update its procedures accordingly.