Investment gains boost Enstar’s Q2 profits; agrees new business with Allianz

Profits soared at Enstar, a Bermuda-based re/insurer, in the second quarter of 2016, partly thanks to big improvements in its investment portfolio.

Enstar reported net premiums earned of $226.9 million in the second quarter of this year ending June 30, a 7 percent rise from $212 million for the same period in 2015.

Enstar made pre-tax profits of $58 million for this period compared with $24 million for the same period last year.

Its profits soared by healthy gains in its investment income which increased to $54 million in the quarter compared with $34 million in the same period a year earlier.

In its results, the company also emphasised some notable new business it has secured recently.

In March, Enstar completed its transaction with Allianz to reinsure portfolios of Allianz’s run-off business.

Through a subsidiary, it has reinsured 50 percent of certain portfolios of workers’ compensation, construction defect, and asbestos, pollution, and toxic tort business originally held by Fireman’s Fund Insurance Company, and assured net reinsurance reserves of approximately $1.1 billion.

As well as this, it has entered into a claims consulting agreement with San Francisco Reinsurance Company, an affiliate of Allianz, with respect to the entire $2.2 billion portfolio, including the 50 percent share retained by affiliates of Allianz.

In August, it also entered into a reinsurance acquisition with The Coca-Cola Company under which it reinsured certain of Coca-Cola’s retention and deductable risks under its subsidiaries’ US workers’ compensation, auto liability, general liability, and product liability insurance coverage.

It assumed total gross reserves of $109.1 million, received total assets of $102.7 million and recorded a deferred charge of $6.4 million, included in other assets.