Enstar Group Limited Reports $1.1 Billion Net Income in 2023

By Bobby Samwell • Tuesday, February 20 10:39 • Permanent Link

Enstar Group Limited (NASDAQ: ESGR) has reported its financial results for the fourth quarter and full year 2023. The company's net income attributable to Enstar ordinary shareholders for the full year 2023 was $1.1 billion, with a return on equity of 24.2% and a growth in book value per ordinary share of 31.0% to $343.45 (fully diluted* $336.72). In the fourth quarter of 2023, the net income attributable to Enstar ordinary shareholders was $599 million, with a return on equity of 13.7%.

Dominic Silvester, Enstar CEO, commented on the company's performance, stating, "We finished 2023 strong off the back of an excellent fourth quarter, as we received sizeable contributions from our investment portfolio and generated solid run-off liability earnings, which resulted in a return on equity for the full year of 24.2%. In addition, we repurchased $532 million of shares during the year, which contributed to our total growth in book value."

Enstar Group Limited also highlighted its strategic moves, including the completion of a transaction with American International Group, Inc. to provide protection on its retained exposure to adverse development on Validus Re carried loss reserves, the repurchase of 841,735 voting ordinary shares for $191 million, and the acquisition of the remaining 41.0% equity interest in StarStone Specialty Holdings Limited in exchange for total consideration of $182 million.

Looking ahead, Silvester expressed confidence in the company's strategy and robust business model, stating, "We continue to see demand for our innovative legacy solutions and are confident that our strategy and robust business model will ensure we continue to meet our clients’ evolving needs as the dominant legacy player, while driving long-term shareholder value."

Key financial metrics for the year ended December 31, 2023, include a total investable assets of $18,243 million, a net investment income of $647 million, and a total net unrealized gains of $528 million.

The company's shares have moved only 0.4% despite the solid financial results, and are now trading at a price of $284.48.

The company's full 8-K submission is available here.

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