Enstar results hit by bond valuation fall

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  • Unrealised losses: a fall in value of fixed-income securities drove Enstar to a $42.1 million net loss

    Unrealised losses: a fall in value of fixed-income securities drove Enstar to a $42.1 million net loss


Enstar reported a net loss of $41.2 million in the first quarter of the year as a fall in the market value of fixed-income securities impacted financial results.

The Bermudian-based run-off specialist loss compared to net earnings of $54.7 million in the corresponding period of 2017.

Enstar reported net unrealised losses of $100.3 million on fixed maturities investments, which are accounted for on a trading basis. Interest rates rose during the quarter, causing bond prices to fall.

“Unrealised amounts would only become realised in the event of a sale of the specific securities prior to maturity or a credit default,” Enstar stated.

Net premiums earned were $170.2 million in the first quarter, up from $148.9 million in the first three months of 2017. Net investment income climbed to $66.3 million from $48.7 million.

Enstar’s shareholders’ equity at March 31, 2018 was $3.1 billion, or $157.06 per fully diluted share, down from $3.14 billion, or $159.19 per share, as at December 31, 2017.

Its shares were trading 1.25 per cent down at $209.65 in morning trading in New York.

The group’s head office is in Queen Street, Hamilton. It specialises in acquiring and managing businesses and portfolios in run-off.

Enstar has about 1,300 employees based in 27 offices around the world.

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Published May 8, 2018 at 11:51 am (Updated May 8, 2018 at 11:51 am)

Enstar results hit by bond valuation fall

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