Investment gains drive $798m Enstar profit
Bermudian run-off specialist Enstar Group reported net earnings of $798.6 million for the second quarter, driven by gains in its investment portfolio as stock and bond markets rebounded.
The profit broke down to $36.65 per share and compared to net income of $231.8 million, or $10.70 per share, for the same period of 2019.
For the first six months of the year, Enstar posted net income of $281.7 million, or $12.93 per share, compared to $590.6 million, or $27.26 per share in the first half of 2019.
Enstar said the key driver of its second-quarter results were net realised and unrealised gains of $967.6 million for the three months ended June 30, 2020, including $550.2 million relating to other investments and equities and $417.4 million relating to fixed-income securities.
The main business of Enstar, which is headquartered in offices in Windsor Place on Queen Street, Hamilton, is to acquire and manage insurers and books of business in run-off: that is, they have stopped writing new business but their assets are managed to meet future claims.
Enstar's ordinary shareholders' equity at June 30, 2020 amounted to $4.68 billion, or $213.06 per share, up from $4.33 billion, or $197.93 per share, at the end of last year.
Enstar's shares gained $6.79, or 3.88 per cent, to close at $181.58 on the Nasdaq Stock Exchange yesterday.