Enstar Group (ESGR) Q4 2023 earnings summary

Executive summary

• FY 2023 net income attributable to ordinary shareholders was $1.1bn, ROE was 24.2%, and book value per ordinary share rose 31.0% to $343.45.

• Q4 net income was $599m with ROE of 13.7%; investment returns and a $205m Bermuda corporate income tax benefit were major contributors.

• Completed legacy transactions with QBE and RACQ and an agreement with AIG, acquiring $2.2bn of liabilities in aggregate; repurchased $532m of shares during 2023.

Financial highlights

• FY revenue was $1.429bn versus a loss of $1.058bn in 2022; net income attributable to ordinary shareholders was $1.082bn versus a $906m loss.

• FY diluted EPS was $68.47 versus a loss of $52.65; Q4 diluted EPS was $39.71 versus a loss of $13.26 in Q4 2022.

• FY Adjusted ROE was 18.8% versus (1.1)% in 2022; Q4 Adjusted ROE was 9.0% versus 4.0%.

• FY total investment return was 7.2% and Adjusted TIR was 5.3%, versus (9.0)% and (0.2)% in 2022.

• FY investment results included $647m net investment income, $397m net unrealized gains on other investments, and $288m net realized and unrealized fixed-maturity gains including OCI.

Outlook and guidance

• Management cited continued demand for legacy solutions and confidence in the strategy and business model to meet clients’ evolving needs and drive long-term shareholder value.