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Enstar Group Limited (ESGR)
NASDAQ:ESGR
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Enstar Group
(NASDAQ:ESGR)77Outperform
Enstar Group (ESGR) vs. S&P 500 (SPY)
Market Cap
$4.92B
Dividend YieldN/A
Average Volume (3M)117.30K
Price to Earnings (P/E)9.2
Beta (1Y)0.65
Revenue Growth-15.68%
EPS Growth-47.11%
CountryUS
Employees805
SectorFinancial
Sector Strength93
IndustryInsurance
Share Statistics
EPS (TTM)35.99
Shares Outstanding14,885,357
10 Day Avg. Volume176,836
30 Day Avg. Volume117,301
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)5.33
Price to Cash Flow (P/CF)10.10
P/FCF Ratio9.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Enstar Group Business Overview & Revenue Model
Company DescriptionEnstar Group Limited (ESGR) is a global insurance group that specializes in acquiring and managing insurance and reinsurance companies in run-off. Established in Bermuda, Enstar focuses on providing innovative capital release solutions to insurers and reinsurers. The company operates across various sectors, including property and casualty insurance, life insurance, and other specialty insurance sectors, offering tailored solutions to optimize financial performance and risk management.
How the Company Makes MoneyEnstar Group makes money primarily through the acquisition and management of insurance and reinsurance portfolios in run-off, which involves assuming the liabilities of these portfolios and managing them to achieve profitable run-off. The company generates revenue from the investment income earned on the reserves and surplus associated with the acquired portfolios. Additionally, Enstar may enhance its earnings through strategic claims management, expense reduction, and capital optimization techniques. The company also enters into reinsurance agreements and other risk-transfer solutions to optimize its risk profile and profitability. Significant partnerships with insurers and reinsurers can contribute to its revenue streams by providing opportunities for portfolio acquisitions and collaborative risk management solutions.
Enstar Group Financial Statement Overview
Summary
Enstar Group demonstrates strong profitability and cash flow generation, important for stability in the insurance industry. The lack of debt is a significant advantage, reducing financial risk. However, revenue volatility and fluctuations in equity require monitoring. Overall, the company is financially solid with a positive growth trajectory.Income Statement
Enstar Group shows strong profitability with a Net Profit Margin of 44.8% and a Gross Profit Margin of 100% for 2024. The Revenue Growth Rate is 4.51%, indicating a positive growth trend. However, the company has faced volatility in revenues as seen in previous years, which could be a risk factor. The EBIT margin for 2024 stands at 67.6%, reflecting efficient cost management.78
Positive
Balance Sheet
The company has a solid equity base with an Equity Ratio of 29.8% for 2024. The Debt-to-Equity Ratio is 0, indicating no leverage risk, which is a positive aspect in terms of financial stability. Return on Equity is a robust 8.86%, showcasing efficient use of equity. However, fluctuations in equity levels over the years suggest some volatility.72
Positive
Cash Flow
The Free Cash Flow to Net Income Ratio is a healthy 0.9 for 2024, indicating strong cash generation relative to profits. The Operating Cash Flow to Net Income Ratio is 0.9, showcasing effective cash flow management. Though there was a decrease in Operating Cash Flow compared to the previous year, Free Cash Flow remains strong, highlighting resilience.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.21B | 1.15B | -1.08B | 864.00M | 2.54B | Gross Profit |
| 1.21B | 1.43B | -1.08B | 864.00M | 2.54B | EBIT |
| 814.00M | 770.00M | -789.00M | 500.00M | 1.78B | EBITDA |
| 1.55B | 1.16B | -665.00M | 685.00M | 1.61B | Net Income Common Stockholders |
| 540.00M | 1.12B | -871.00M | 538.00M | 1.76B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.00B | 832.00M | 6.10B | 7.34B | 4.57B | Total Assets |
| 20.41B | 20.91B | 22.15B | 24.43B | 21.65B | Total Debt |
| 1.83B | 1.83B | 2.32B | 1.69B | 1.37B | Net Debt |
| 735.00M | 1.00B | 1.50B | 45.00M | 472.11M | Total Liabilities |
| 14.31B | 15.27B | 17.19B | 17.92B | 14.59B | Stockholders Equity |
| 6.09B | 5.54B | 4.70B | 6.10B | 6.67B |
| Cash Flow | Free Cash Flow | |||
| 483.00M | 523.00M | 257.00M | 3.80B | 2.79B | Operating Cash Flow |
| 483.00M | 523.00M | 257.00M | 3.80B | 2.79B | Investing Cash Flow |
| 286.00M | -148.00M | -919.00M | -2.57B | -2.34B | Financing Cash Flow |
| -42.00M | -861.00M | -116.00M | -737.00M | 117.41M |
Enstar Group Technical Analysis
Positive
330.55
Price Trends
327.44
Positive
325.79
Positive
322.11
Positive
Market Momentum
1.40
Positive
52.83
Neutral
68.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESGR, the sentiment is Positive. The current price of 330.55 is below the 20-day moving average (MA) of 330.58, above the 50-day MA of 327.44, and above the 200-day MA of 322.11, indicating a neutral trend. The MACD of 1.40 indicates Positive momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 68.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESGR.
Enstar Group Risk Analysis
Enstar Group disclosed 57 risk factors in its most recent earnings report. Enstar Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Enstar Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $34.48B | 8.21 | 22.02% | ― | 26.24% | -3.87% | |
78 Outperform | $113.78B | 12.52 | 14.48% | 1.24% | 11.78% | 4.39% | |
77 Outperform | $4.92B | 9.18 | 8.87% | ― | -15.68% | -47.11% | |
77 Outperform | $23.60B | 14.29 | 20.92% | 0.49% | 12.32% | 29.21% | |
73 Outperform | $12.05B | 6.95 | 17.69% | 0.65% | 28.22% | -31.48% | |
72 Outperform | $53.55B | 11.89 | 21.77% | 1.82% | 12.28% | ― | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% |
* Financial Sector Average
Performance Comparison
ESGR
Enstar Group
331.01
44.40
15.49%
CB
Chubb
287.01
39.76
16.08%
ALL
Allstate
199.03
44.32
28.65%
ACGL
Arch Capital Group
91.87
7.41
8.77%
RNR
Renaissancere Holdings
244.00
17.30
7.63%
WRB
W. R. Berkley Corporation
62.53
7.40
13.42%
Enstar Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -0.65% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a generally positive sentiment, highlighting strong financial metrics, strategic expansions, and robust capital positions, despite some adverse developments and unrealized losses.Highlights
Strong Return on Equity
Enstar achieved a return on equity (ROE) of 2.4% and an adjusted ROE of 2.6% in Q1 2024.
Growth in Book Value
Book value grew by 1.7%, with fully diluted book value per share increasing by 1.4% to $349.41 and $341.53, respectively.
Positive Total Investment Returns
Total investment returns amounted to $222 million, driven by $160 million of net investment income and favorable returns on noncore equity of $104 million.
Strategic Expansion with SiriusPoint
Enstar announced a loss portfolio transfer agreement with SiriusPoint, reinsuring $400 million of workers' compensation business.
Strong Capital Position
Enstar's capital and liquidity position remains strong with a group capital solvency ratio of 195% and a fully unutilized $800 million revolving credit agreement.
S&P Rating Endorsement
Cavello Bay, Enstar's primary reinsurer, received an A rating with a stable outlook from S&P, recognizing Enstar's leadership in the legacy market.
Lowlights
Adverse Development in Environmental and Casualty Lines
The company experienced adverse development in environmental and casualty lines due to larger losses on excess policies.
Unrealized Losses Impact Book Value
Cumulative unrealized loss and fair value changes in the maturity portfolio and funds held stand at $789 million, adversely impacting book value by approximately $54 per share.
Company Guidance
During the Q1 2024 earnings call for Enstar (ESGR), the executives provided guidance highlighting several key metrics. The company achieved a return on equity (ROE) of 2.4% and an adjusted ROE of 2.6%, with a notable 1.7% growth in book value and a 1.4% increase in fully diluted book value per share, bringing them to $349.41 and $341.53, respectively. Enstar reported $119 million in net income attributable to ordinary shareholders, driven by $222 million in total investment returns and $160 million in net investment income. The company also recorded $24 million in runoff liability earnings, demonstrating their robust claims management capabilities. Despite a cumulative unrealized loss of $789 million impacting book value by approximately $54 per share, Enstar's capital position remains strong with an estimated group capital solvency ratio of 195% and an $800 million revolving credit facility fully available. These metrics reflect Enstar's strategic focus on delivering value through disciplined legacy solutions and managing macroeconomic challenges effectively.Enstar Group Corporate Events
Executive/Board Changes
Enstar Group Launches 2025 Incentive Compensation Program
Neutral
Mar 3, 2025
On February 27, 2025, Enstar Group Limited’s Board of Directors approved a new Annual Incentive Compensation Program for 2025, following the expiration of the previous program at the end of 2024. This program, managed by the Compensation Committee, will offer cash bonuses to senior executives and other participants based on various performance and management factors, with awards determined within 60 days after the year-end.
Executive/Board ChangesM&A Transactions
Enstar Group Announces Merger and Compensation Adjustments
Neutral
Dec 18, 2024
Enstar Group Limited announced a merger involving several entities, including Deer Ltd. and Elk Bidco Limited, backed by Sixth Street Partners, LLC. As part of this merger, actions were taken to address potential tax implications related to compensation for the company’s Chief Strategy Officer, David Ni. The Human Resource and Compensation Committee approved the acceleration of restricted stock units and portion of the annual bonus for Mr. Ni to manage potential excise tax liabilities and preserve corporate income tax deductions. These compensatory arrangements are contingent on Mr. Ni’s continued employment until the specified merger completion or vesting dates.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.