Enstar Group Limited Stock Price, News & Analysis

Enstar Group reported a net loss of $282 million and a return on equity (ROE) of (5.0)% for Q1 2022, attributed to unrealized losses on fixed income securities amid rising interest rates. Book value per share decreased by 9.4% to $286.51 as of March 31, 2022. Despite the losses, the company executed a significant loss portfolio transfer of $3.1 billion and returned $42 million to shareholders through repurchases. The company remains optimistic about long-term value amidst economic uncertainty.

Enstar Group Limited (Nasdaq: ESGR) reported net earnings of $437 million for the year ended December 31, 2021, a sharp decline from $1.7 billion in 2020. Earnings per fully diluted share dropped from $78.80 to $21.71. The company saw a 7.1% return on equity, down from 39.7% in the previous year. Total shareholders' equity decreased to $5.6 billion, with book value per ordinary share rising to $316.34. Key factors for 2021 included $312 million in net investment income and favorable prior period developments totaling $283 million.

Enstar Group Limited (Nasdaq: ESGR) announced cash dividends on its Series D and Series E preference shares, each amounting to $0.43750 per depositary share. The dividends will be payable on March 1, 2022, to shareholders of record on February 15, 2022. Both series of shares have a 7.00% fixed-to-floating rate and are perpetual non-cumulative. Enstar, a global insurance leader, specializes in innovative capital release solutions and has completed over 110 acquisitions since its inception in 2001.

Enstar Group Limited (Nasdaq: ESGR) announced the pricing of $500 million in 5.500% Fixed-Rate Reset Junior Subordinated Notes due 2042. The offering, guaranteed on a junior subordinated basis by Enstar, is expected to close on January 14, 2022. Proceeds will be used to repay the $280.4 million in 4.500% Senior Notes due March 10, 2022, with remaining funds allocated for acquisitions, working capital, and general corporate purposes. The offering complies with SEC regulations and is managed by Barclays, BMO, HSBC, and Wells Fargo.

Enstar Group Limited (NASDAQ: ESGR) has announced a loss portfolio transfer (LPT) agreement with Aspen Insurance Holdings Limited, covering losses incurred before December 31, 2019, across various lines in multiple jurisdictions. Enstar's subsidiary will assume net loss reserves of $3.12 billion, subject to a limit of $3.57 billion. The transaction, expected to close in the first half of 2022, aims to enhance Enstar's growth opportunities and capital strength following a previous agreement in 2020. Completion is pending regulatory approval and other conditions.

Enstar Group Limited (Nasdaq: ESGR) announced cash dividends for its Series D and Series E preference shares, amounting to $0.43750 per depositary share. The dividends will be payable on December 1, 2021, to shareholders on record as of November 15, 2021. Both Series D and Series E preference shares have a fixed-to-floating rate of 7.00%. Enstar continues to be a leading global insurance provider, specializing in innovative capital release solutions through its extensive network.

Enstar Group Limited (Nasdaq: ESGR) reported a net loss of $196.0 million for Q3 2021, translating to $10.68 per share. In contrast, net earnings for the first nine months of 2021 were $364.6 million ($17.53 per share), down from $615.0 million in Q3 2020. The loss was mainly due to $273.3 million in net realized and unrealized losses, largely from the InRe Fund amidst market volatility. Non-GAAP operating loss stood at $176.0 million for Q3 while net investment income for nine months reached $231.0 million. Shareholder equity decreased to $5.6 billion.

Enstar Group Limited (NASDAQ: ESGR) has finalized an agreement with Royal & Sun Alliance Insurance Limited to provide £400 million in adverse development cover (ADC) for select business lines in the UK and Ireland. The agreement entails a £2.595 billion retention on losses occurring before December 31, 2020. Enstar will cover 50% of the ADC while RSA retains the other 50%. Regulatory approvals have been obtained, marking this as Enstar’s second significant deal with RSA, highlighting the importance of legacy solutions in facilitating mergers and acquisitions in the global insurance sector.

Ambac Financial Group, Inc. (NYSE: AMBC) has announced the acquisition of Providence Washington Insurance Company (PWIC) by its subsidiary, Everspan Insurance Company, effective October 1, 2021. This acquisition aims to enhance Everspan Group's capabilities in launching new programs and developing innovative insurance products. PWIC, the second oldest insurance company in the U.S., holds licenses in 47 states. CEO Claude LeBlanc stated that this acquisition aligns with Ambac's strategy to create long-term shareholder value.