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Enstar suffers $282m Q1 loss due to unrealised losses

Bermudian-based insurer Enstar Group Limited has reported a net loss of $282 million for the first quarter of the year.

That compares with net earnings of $183 million for first quarter 2021.

The company said return on equity was minus five per cent and adjusted ROE was minus 1.4 per cent, compared to three per cent and 5.4 per cent, respectively, in the first quarter 2021.

It added that its ROE was impacted by unrealised losses from the impact of interest rate increases on fixed maturity portfolios that it classifies as trading combined with unrealised losses in its noncore portfolios.

Enstar reported annualised run-off liability earnings of 5.1 per cent and annualised adjusted RLE of 0.0 per cent, compared to five per cent and 1.2 per cent, respectively, in the first quarter 2021.

An annualised total investment return of minus 6.1 per cent and annualised adjusted TIR of 0.5 per cent compared to 3.6 per cent and 8.4 per cent, respectively, in the first quarter 2021.

Enstar said its recognised investment results were impacted by the combination of interest rate increases and equity market declines.

Book value per ordinary share and adjusted book value per ordinary share were $286.51 and $282.10, respectively, as of March 31, a decline of 9.4 per cent and 9.2 per cent, respectively, from December 31.

Enstar returned $42 million to shareholders through share repurchases at a weighted average discount to book value of 18.6 per cent.

Dominic Silvester, Enstar CEO, said: "We started the year by signing one of our largest ever loss portfolio transactions and completing another successful debt raise at competitive rates, while our financial results in the first quarter reflect rising interest rates and economic uncertainty.

“We remain focused on delivering long-term value and are well positioned to maintain our momentum during these volatile times."

Dominic Silvester, CEO of Enstar Group (File photograph)

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Published May 09, 2022 at 8:12 am (Updated May 09, 2022 at 8:12 am)

Enstar suffers $282m Q1 loss due to unrealised losses

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