Starstone Insurance, the Bermuda-based specialty insurer and subsidiary of Enstar Group, saw its 2015 net earnings soar to $20.8 million, compared with $4.3 million in 2014.
The firm also increased its gross written premiums to $825 million last year, compared with $702 million in the previous year. Startstone’s combined ratio also improved in 2015 to 98.6 percent, compared with 101.8 percent in 2014.
The insurer said that the strong results were due to strong underwriting performance in a challenging environment, particularly in property/casualty (P/C) lines, supported by advantageous reinsurance market conditions.
Startstone also said that selective top-line growth in property, marine, casualty and workers’ compensation lines was delivered through a combination of organic growth and new underwriters in core products and that the company continued to leverage opportunities from Enstar’s run-off operations to identify selected premium to write.
Strong expense control was also labelled as a contributing factor, however, Starstone said this was offset by restructuring costs attributable to continued execution of the operational strategy.
The insurer said it achieved meaningful growth in net earnings despite the impact of net realised and unrealised investment losses. The firm had a full year net loss ratio of 57.4 percent last year, compared with 60.2 percent in 2014.
StarStone has initiated a process to create a single insurance vehicle for its non-Lloyd’s European business to maximise operational flexibility in the future, as part of its ongoing business improvement.
Nick Packer, chairman and chief executive officer, StarStone, said: “StarStone again increased its net earnings in 2015, and I am very pleased with our improvement. Continuing our transformation, we are progressing with expense management and recorded strong underwriting results while delivering selective top-line growth.
“Our commitment to underwriting discipline is demonstrated by the improved combined ratio for the year, which in turn shows the value of a focused specialty portfolio and the expertise we have in the business.”
He added: “While the market remains challenging, we retain our belief that good opportunities exist for measured and profitable growth in our core lines over the long-term.”
Starstone Insurance, Enstar Group, Full Year 2015 Results, Nick Packer, Bermuda