Enstar rides investment improvement to $21m profit

Bermuda-based runoff specialist Enstar Group rode improved investment returns to turn a $21 million profit, rebounding from a net loss of $434 million in the second quarter of 2023.

Earnings per share in the second quarter were $1.34 compared to a loss of $25.20 in the same period a year ago.

Enstar said it recorded a $149 million investment profit compared to a $532 million loss in 2022 as net unrealised losses improved to $44 million from $589 million.

The company recorded an underwriting loss of $34 million compared to a profit of $78 million in the same period of 2022, primarily due to a $113 million decrease in favourable prior period developments.

Chief executive officer Dominic Silvester (pictured) said: “Our momentum from the beginning of the year continued into the second quarter, as we delivered solid net earnings through improved year-over-year performance in our investment portfolio and positive RLE.

“Operationally, we completed both our $2 billion LPT transaction with QBE, and our $179 million LPT transaction with RACQ.

“The strength of our balance sheet and continued performance was recognized by S&P who recently upgraded our long-term credit rating to BBB+.

“We continue to maintain a robust pipeline of opportunities and will remain selective in adding only those that can offer compelling risk-adjusted returns. With our scale, differentiated expertise, claims management function and strong balance sheet, we remain well-positioned to provide long-term value to our shareholders.”