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Jun 30, 2022

Enstar Q2 2022 Earnings Report

Enstar experienced a net loss due to unrealized losses on fixed income securities, but solvency improved.

Key Takeaways

Enstar Group Limited reported a net loss of $493 million for the second quarter of 2022, primarily driven by unrealized losses on fixed income securities. However, the company's solvency or economic balance sheet became stronger during the quarter. Enstar completed a significant loss portfolio transaction with Aspen and announced a reinsurance agreement with Argo.

Net Loss of $493 million driven by unrealized losses on fixed income securities.

Book Value per Ordinary Share of $245.93 as of June 30, 2022.

Returned $163 million to shareholders through share repurchases during the six months ended June 30, 2022.

Agreed a Loss Portfolio Transfer with Argo Group International Holdings, Ltd. covering a number of Argo’s U.S. casualty insurance portfolios, with a policy limit of $1.1 billion.

Total Revenue
-$486M
Previous year: $546M
-189.0%
EPS
-$28.6
Previous year: $13.3
-315.0%
Return on Equity
-9.8%
Book Value Per Ordinary Share
$246
Adjusted Book Value Per Ordinary Share
$241
Gross Profit
$10M
Previous year: $554M
-98.2%
Cash and Equivalents
$785M
Previous year: $769M
+2.1%
Total Assets
$23.3B
Previous year: $24.6B
-5.5%

Enstar

Enstar

Enstar Revenue by Segment

Forward Guidance

Enstar remains confident in its investment strategy and expects losses to unwind over time. The company maintains a strong balance sheet and is focused on delivering long-term value to partners and shareholders. Enstar anticipates a robust market demand for its solutions and will maintain discipline in acquiring new business.

Positive Outlook

  • Expects investment losses to unwind over time.
  • Maintains a strong balance sheet.
  • Focused on delivering long-term value to partners and shareholders.
  • Anticipates a robust market demand for its solutions.
  • Will maintain discipline in acquiring new business.

Challenges Ahead

  • Financial results continued to be impacted by unrealized investment losses.
  • Fixed income portfolio has incurred a significant amount of the unrealized losses.
  • Economic uncertainty.
  • Rising interest rates.
  • Market dislocation has resulted in material unrealized losses in our investment portfolio.

Revenue & Expenses

Visualization of income flow from segment revenue to net income