Enstar reports $183.2m net earnings
Bermudian-based Enstar Group Ltd has reported consolidated net earnings of $183.2 million, or $8.38 per ordinary share, for the first quarter.
That compares to a net loss of $516.8 million, or $23.98 per share, a year ago.
The company highlighted the key drivers of its earnings included a reduction in net incurred losses and loss adjustment expenses of $55.5 million, which comprised favourable development on prior periods of $109.6 million, partially offset by current period losses of $54.1 million, primarily in respect of the StarStone International business that was placed into run-off in June 2020, for which there is current period earned premium.
Enstar said the favourable development on prior periods was primarily driven by a decrease of $75.5 million in the fair value of insurance contracts for which the company has elected the fair value option. The decrease in the fair value was driven by an increase in corporate bond yields.
Enstar said non-GAAP operating income was $283.7 million. That compared to a non-GAAP operating loss of $337.8 million for the same period last year.