Enstar profits fall $3m
Expanding Bermuda-based run-off specialist Enstar Group Ltd reported net income of $9.4 million for the second quarter.
The company, which acquires companies and portfolios of business in run-off, reported the earnings, which break down to 66 cents per share, in a regulatory filing on Friday.
This compared to $12.4 million, or 89 cents per share, in the second quarter of 2010. Earnings for the first six months of this year were $12.9 million, or 94 cents per share, compared to $28.4 million, or $2.04 per share, for the six months ended June 30, 2010.
Shareholders’ equity at June 30, 2011 amounted to $1,084.7 million, excluding non-controlling interest of $261.6 million, or $74.32 per share. This was up from $948.4 million, excluding non-controlling interest of $267.4 million, or $71.68 per share at the end of 2010.
Shareholders’ equity was boosted by the $290 million purchase of a 20 percent stake in Enstar in April by funds controlled by US bank Goldman Sachs.
The company’s 10-Q filing shows total assets of $5.2 billion at June 30. Last month the company has completed its acquisition of Clarendon National Insurance Company, which boosted total assets to more than $7 billion.
Run-off occurs when an insurer stops writing new business, but still has to be managed to deal with continuing obligations, particularly claims from policyholders.