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Mar 31, 2022
Enstar Q1 2022 Earnings Report
Reported a net loss due to unrealized losses on fixed income securities, but signed a significant loss portfolio transaction and completed a debt raise.
Key Takeaways
Enstar Group Limited reported a net loss of $282 million for the three months ended March 31, 2022, primarily driven by unrealized losses on fixed income securities due to rising interest rates. The company returned $42 million to shareholders through share repurchases and signed a $3.1 billion loss portfolio transfer transaction with Aspen Insurance Holdings Limited.
Net loss of $282 million, compared to net earnings of $183 million for first quarter 2021.
Book Value per Ordinary Share and Adjusted Book Value per Ordinary Share declined by 9.4% and 9.2%, respectively, from December 31, 2021.
Entered into a transaction with Aspen to assume $3.1 billion of net loss reserves in a loss portfolio transfer transaction.
Returned $42 million to shareholders through share repurchases.
Forward Guidance
Enstar remains focused on delivering long-term value and are well positioned to maintain our momentum during these volatile times.
Positive Outlook
- Transaction with Aspen Insurance Holdings Limited is expected to close in the second quarter of 2022.
- Raised $500 million of junior subordinated debt at 5.5%.
- ESG strategy remains focused on addressing climate change, sustainable investing, and developing our human capital.
- Published inaugural Corporate Sustainability Report, a Sustainability Accounting Standards Board (“SASB”) Report and a Task Force on Climate-Related Financial Disclosures (“TCFD”) Report.
- Announced a partnership with two U.K.-based women’s sports teams as part of our commitment to championing diversity and equality for women.
Challenges Ahead
- Financial results in the first quarter reflect rising interest rates and economic uncertainty.
- The Russian invasion of Ukraine has led to volatility in global commodity markets.
- No significant direct impacts from the Russian invasion of Ukraine at this time.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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