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Jun 30, 2023

Enstar Q2 2023 Earnings Report

Enstar reported solid net earnings driven by improved investment portfolio performance and positive run-off liability earnings.

Key Takeaways

Enstar Group Limited reported net earnings of $21 million for the second quarter of 2023, a significant improvement compared to a net loss of $434 million in the same period last year. The positive results were primarily driven by investment returns of $159 million and favorable development in the workers' compensation line of business.

Net earnings of $21 million, or $1.34 per diluted ordinary share, compared to net loss of $434 million, or $25.20 per diluted ordinary share, for the three months ended June 30, 2022.

Return on equity ("ROE") of 0.5% and Adjusted ROE* of 2.1% for the quarter compared to (8.2)% and (1.6)%, respectively, in the second quarter of 2022. ROE performance was driven by investment returns of $159 million.

Completed $1.9 billion LPT agreement with certain subsidiaries of QBE Insurance Group Limited (“QBE”) and AUD $360 million (USD $245 million) LPT with RACQ Insurance Limited (“RACQ”).

Amended and restated our existing revolving credit agreement, increasing commitments from $600 million to $800 million and increasing the term by five years.

Total Revenue
$154M
Previous year: -$486M
-131.7%
EPS
$1.34
Previous year: -$28.6
-104.7%
Book Value Per Ordinary Share
$285
Previous year: $246
+15.8%
Adjusted Book Value Per Ordinary Share
$279
Previous year: $241
+15.9%
Gross Profit
$144M
Previous year: $10M
+1340.0%
Cash and Equivalents
$768M
Previous year: $785M
-2.2%
Total Assets
$21.9B
Previous year: $23.3B
-6.1%

Enstar

Enstar

Enstar Revenue by Segment

Forward Guidance

Enstar continues to maintain a robust pipeline of opportunities and will remain selective in adding only those that can offer compelling risk-adjusted returns. The company believes it is well-positioned to provide long-term value to its shareholders.

Positive Outlook

  • Company maintains a robust pipeline of opportunities.
  • Company will remain selective in adding only those opportunities that can offer compelling risk-adjusted returns.
  • Company has scale.
  • Company has differentiated expertise.
  • Company has claims management function and strong balance sheet.