dominic-silvester-enstar-ceo-_-resized
Dominic Silvester, Enstar CEO
5 May 2023Re/insurance

Enstar swings to profit, CEO hails ‘solid start’ to year

Bermuda-based Enstar Group swung to a healthy profit in the first quarter of the year, as its CEO flagged the positive performance of its investment portfolio and its ability to build on some of the M&A deals it had done in the prior year.

The company posted net earnings of $424 million, compared with a net loss of $267 million, for the same period a year earlier. Its return on equity was 9.5%, a big improvement compared to the (4.6)% in the first quarter of 2022. ROE performance was driven by investment returns of $355 million and a one-time net gain recognized on the completion of the novation of the Enhanzed Re reinsurance closed block of life annuity policies of $194 million.

Its run-off liability earnings of $10 million were driven by favourable development on its workers' compensation line of business and partially offset by increases in the value of certain portfolios that are held at fair value.

The company entered into $1.9 billion Loss Portfolio Transfer (LPT) agreement with certain subsidiaries of QBE Insurance Group in April as well as a A$360 million LPT with RACQ Insurance.

Dominic Silvester, Enstar CEO, said: “We had a solid start to 2023, delivering strong net earnings largely driven by positive performance in our investment portfolio. We continued to build on our M&A successes from the prior year, entering into a $1.9 billion ground-up LPT with QBE, which we completed at the beginning of April, and a second $245 million transaction with RACQ, which we expect to close later this month. We are well-equipped to take advantage of the many opportunities we continue to see in an ever-growing sector of the market.

“We also took the opportunity to simplify our capital structure through an accretive repurchase of all outstanding non-voting convertible ordinary shares. Looking ahead, strengthened by our scale, differentiated expertise, claims management function, and strong balance sheet, we remain well-positioned to provide long-term value to our shareholders.”




More on this story

News
24 March 2023   CPP Investments remains one of Enstar’s largest shareholders.
News
7 March 2023   Changes follow Paul O’Shea’s retirement.

More on this story

News
24 March 2023   CPP Investments remains one of Enstar’s largest shareholders.
News
7 March 2023   Changes follow Paul O’Shea’s retirement.