Enstar Group has posted net earnings of $119 million in the first quarter of 2024, compared to net earnings of $424 million in Q1 2023.
Return on equity (ROE) was 2.4% for the quarter, compared to 9.5% from the previous year, while adjusted ROE was 2.6% for the quarter compared to last year’s 6.8%.
Additionally, run-off liability earnings (RLE) were $24 million for the quarter, compared to RLE of $10 million in the prior-year period. According to the firm, this figure was driven by favorable development on the company’s professional indemnity/directors and officers and asbestos lines of business, partially offset by adverse development within their general casualty and environmental lines of business.
Net loss from Enstar’s Run-off segment was $11 million compared to net loss of $5 million in the comparative quarter, primarily due to a $10 million decrease in favorable PPD in the current quarter, mainly driven by a $9 million increase in the reduction in estimates of net ultimate losses in the comparative quarter.
Net income from the company’s Investments segment was $224 million for Q124, compared to net income of $344 million for Q123.
Dominic Silvester, Enstar CEO, commented: “Our momentum continues with a growth in book value of 1.7% in the first quarter, driven by solid performance in our investment portfolio and another quarter of positive Run-Off Liability Earnings.
“We were pleased to execute a $400 million Loss Portfolio Transfer with SiriusPoint earlier this week. The transaction expands our Workers’ Compensation portfolio, which is a line of business where we have a wealth of experience and have had significant success. We look forward to taking advantage of opportunities across our business throughout the year, as we stay focused on meeting the growing risk management needs of the (re)insurance sector while creating long-term value for our shareholders.”
