Enstar ( (ESGR) ) has released its Q4 earnings. Here is a breakdown of the information Enstar presented to its investors.
Enstar Group Limited is a NASDAQ-listed global insurance group specializing in providing capital release solutions through legacy acquisitions, operating across several countries including Bermuda, the United States, and the United Kingdom. In its latest earnings report, Enstar announced a merger agreement with Sixth Street valued at $5.1 billion, which has been approved by a majority of its shareholders. The company reported a decrease in its return on equity and net earnings per share compared to the previous year, reflecting a challenging financial period.
Key financial metrics for Enstar showed a decline in return on equity from 24.2% in 2023 to 10.7% in 2024, and a decrease in basic net earnings per share from $69.22 in 2023 to $36.83 in 2024. The company also reported a total investment return of 6.3% for 2024, down from 7.2% in 2023. Despite these declines, Enstar’s book value per ordinary share increased by 9.4% to $380.29, indicating a growth in shareholder equity.
The company’s strategic focus remains on managing its run-off liabilities and optimizing its investment portfolio. Enstar’s average net loss reserves decreased from $11,798 million in 2023 to $11,181 million in 2024, while its adjusted run-off liability earnings improved slightly to 1.3%. The company continues to maintain a strong capital position, with total assets amounting to $20,407 million and a stable credit rating from agencies.
Looking ahead, Enstar’s management remains cautiously optimistic about the future, focusing on enhancing operational efficiencies and capitalizing on strategic opportunities through its merger with Sixth Street. The company aims to continue delivering value to its shareholders by leveraging its expertise in legacy acquisitions and capital management.