Shareholder equity takes a $600-million hit
Bermuda-based insurer Enstar Group Limited has reported a consolidated net loss of $196 million for the third quarter of 2021 and consolidated net earnings of $364.6 million for the first nine months of the year.
Those figures compare to consolidated net earnings of $615 million and $896.7 million for the three and nine months ended September 30, 2020, respectively.
Enstar said the key driver of the net loss for the third quarter was net realised and unrealised losses of $273.3 million, including $285.2 million relating to its consolidated variable interest entity, the InRe Fund, from which it redeemed $1.5 billion.
Following its decision to redeem, Enstar said, the InRe Fund's investments were impacted by significant volatility in Chinese and other global equity markets.
Enstar said it is continuing the orderly wind down of the InRe Fund's remaining investment portfolio, which was $447.7 million as of September 30.
One key driver of net earnings for the nine months ended September 30, Enstar said, was net investment income of $231 million and net realised and unrealised gains of $111.2 million including $299.8 million relating to Enstar’s consolidated variable interest entity, other investments and equities, partially offset by $188.6 million in net realised and unrealised losses relating to fixed income securities.
Enstar said a second key driver was earnings from equity method investments of $100.8 million.
The company reported fully diluted book value per share of $307.09 as of September 30, an increase of 26.7 per cent year-over-year.
It said Enstar's ordinary shareholders' equity at September 30 amounted to $5.6 billion, compared to $6.2 billion at December 31, 2020.
Enstar is a NASDAQ-listed global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations.