Bermuda-based Enstar posted a strong set of results for 2014, despite losses stemming from the restructuring of its subsidiary Torus Insurance.
Its net earnings hit $213.7 million for the year ended December 31, 2014, compared with $208.6 million in 2013. Most of the earnings stemmed from Enstar’s non-life run-off segment, where earnings increased to $203.3 million, compared with $199.9 million in 2013.
However, Torus Insurance, the company that Enstar acquired in April 2014, posted net losses of $10.5 million for 2014, compared with a loss of $1.5 million for 2013. This was mainly driven by salaries and benefits and general and administrative expenses of $113.3 million.
Torus repositioned itself during 2014 to focus on its core specialty product and, according to Enstar, will look to continue the selective expansion of its US operations by using its Escape broker portal to increase access to business and focusing on workers compensation, healthcare and excess casualty lines.
Atrium, Enstar’s Lloyd’s insurer, reported net earnings of $10.4 million in 2014, compared with $5.2 million in 2013. Its combined ratio was 85.1 percent and its gross written premiums hit $154.2 million.
Acquisition costs were $132.6 million and $23.2 million for the years ended December 31, 2014 and 2013, respectively. The increase of $109.4 million was due primarily to the acquisitions of Torus ($65.7 million) and Atrium ($43.4 million).
In addition, Rick Becker has been appointed to Enstar’s board of directors. Becker is the chairman of Clarity Group, a US national healthcare professional liability and risk management organisation which he co-founded over 13 years ago.
Atrium, Enstar, Torus, Bermuda, Lloyd's, Rick Becker, Insurance, Reinsurance