Enstar Group Limited (NASDAQ:ESGR) Q1 2024 Earnings Call Transcript

Enstar Group Limited (NASDAQ:ESGR) Q1 2024 Earnings Call Transcript May 2, 2024

Enstar Group Limited isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Note: Transcript and audio provided by the company to Seeking Alpha:

Peter Kalaev: Hello everyone, I’m Peter Kalaev, Group Treasurer. Thank you for listening to Enstar’s First Quarter 2024 Earnings Audio Review with CEO Dominic Silvester and CFO Matt Kirk. Before we begin, I’d like to remind everyone that this presentation contains forward- looking statements and non-GAAP financial measures. Forward-looking statements in this presentation include, but are not limited to, statements about Enstar’s expectations for future and pending transactions, run-off liability earnings, the performance of its investment portfolio and the impact of changing interest rates on Enstar’s business. These statements are inherently subject to risks, uncertainties and assumptions that may cause actual results to differ materially from the statements being made as of the date of this update or in the future.

Additional information regarding these statements and our non-GAAP financial measures is outlined in the text that appears below the link to this recording. With that, I will turn it over to Dominic.

Dominic Silvester: Thank you, Peter. After a strong end to 2023, we maintained our momentum into the first quarter. We delivered solid results from our investment portfolio and generated positive performance from our run-off liability earnings. This led to a Return on Equity of 2.4% and growth in book value per share of 1.7%. Matt will cover our financial performance in more detail shortly, but in summary the results reflect continued progress against our strategy as we stay focused on meeting the growing risk management needs of the re/insurance sector and creating long-term value for our shareholders. Turning to some strategic highlights: Following the end of the quarter, we announced a loss portfolio transfer agreement with SiriusPoint to reinsure $400 million of workers’ compensation business for the underwriting years 2018 through 2023.

SiriusPoint will cede net reserves of approximately $400 million and Enstar will provide $200 million of cover in excess of the ceded reserves. This transaction expands our industry leading workers’ compensation line of business – one of our largest, and one where we have deep experience and proven success in managing. Further, it is another example of Enstar’s versatility in providing bespoke legacy and strategic solutions for our partners. Our strong capital position was endorsed by S&P during the quarter, as our primary reinsurer, Cavello Bay, was assigned an Insurer Financial Strength Rating of ‘A’ with stable outlook. S&P recognized our status as a leader in the legacy market, while citing our world- class claims management capabilities.

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To continue reading the Q&A session, please click here.