Bermudian-based insurer Enstar Group Ltd has reported third quarter net earnings attributable to ordinary shareholders of $38 million.

That compares with a net loss attributable to ordinary shareholders of $432 million in the prior year quarter.

Return on equity for the quarter was 0.9 per cent and adjusted ROE was 2.5 per cent, which compares with negative 9.4 per cent and negative 2.5 per cent, respectively, in the third quarter of 2022.

The company said ROE performance was driven by investment returns of $146 million.

Adjusted ROE excludes $80 million of net realised and unrealised losses on the company’s fixed maturities.

Also during the quarter, Enstar signed an agreement with American International Group Inc to provide protection to AIG on its retained exposure to adverse development on Validus Re carried loss reserves, up to a limit of $400 million.

The agreement became effective as of November 1, corresponding to the closing of AIG’s sale of Validus Re to RenaissanceRe.

Subsequent to the end of the third quarter, in two separate transactions, Enstar said it agreed to repurchase 791,735 ordinary shares from Canada Pension Plan Investment Board and its affiliate, and 50,000 ordinary shares from the Trident V funds managed by Stone Point Capital LLC at a price of $227.18 per share, totalling approximately $191 million in aggregate.

The price represents a five per cent discount to the trailing 10-day volume weighted average price of Enstar’s ordinary shares as of the close of business on November 3.

Additionally, the company said, Enstar’s chief executive officer, Dominic Silvester, will acquire 45,000 ordinary shares for approximately $10 million from the Trident V Funds.

These transactions are scheduled to close on November 14.

Mr Silvester said: “We maintained strong operational momentum in the third quarter with our agreement with AIG and ongoing execution of our strategic priorities, while delivering year-to-date growth in book value per share.

“As we look to the end of 2023, we will rely on our core strengths of scale, claims management experience and our strong balance sheet to continue providing long-term value.”