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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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