ESGR - Earnings call 4 2023 | Enstar Group Limited

Due to licensing restrictions, you must log in to view earnings call transcripts.

Peter Kalaev

Hello, everyone. I'm Peter Kalaev, Group Treasurer. Thank you for listening to Enstar's Fourth Quarter and Full Year 2023 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, runoff liability earnings, the performance of its investment portfolio and the impact of rising interest rates on Enstar's business.

date subject results uncertainties the to made of inherently may assumptions statements are or as actual update cause differ the statements to future. and risks, that being in These the this of materially from

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

Dominic Silvester

XX-year achieved We history was XXXX year solid built a player on Enstar. our sheet and our while the Thank with you, Peter. balance through as delivery of legacy profitable dominant QBE for maintaining strength. partnerships AIG growth and

As placed market to a to ideally shareholder the XXXX and contributions we result, continue drive our value. entered significant long-term

I of We out few to and in savings on by investment the technical Before strong XX.X% Matt takes to full of a book addition XXXX you finished per XX%. year the This our recording and through equity quarter, share detail, to notable enactment a corporate return for value positive a want of benefit our driven achievements. related portfolio, an income to in XXXX tax. in led growth excellent the with of largely performance call Bermuda's tax new performance

drive team. public since the from efforts XXth to straight earnings of which outcomes Enstar ability year entire dividends, liability better claims we XXXX, as excellent going our completed Our favorable reflects Effect, through the pay management known our and continues to in generating outstanding runoff

return, $X.X year. to for to whilst was maximize and allocation resulting the interest benefit term of the volatility. as the for portfolio disciplined short-term asset noted, in or continued We billion managing investments over fourth in rates, quarter towards million fourth quarter period high over full asset-specific favorable TIR, returns $XXX I long the remain As total investment a from our

closely which of life aligns and longer-term underlying One profitability. performance our is the our over transactions years, of the X span best of ways more horizon their with of to measure patterns the

average per X in of recent average XX%, most value adjusted growth annual and years, book the was Over XX.X%. the we achieved ROE an share

Along play our insurance. that part we strategic successful well results, major long-standing transactions in proving as can planning portfolio operational completed QBE, we approximate million $XXX our portfolio loss completed insurance RACQ during the partner, a again for a the year, transfer We with strong transfer $X billion with businesses. an as with loss many high-quality

speaks to expertise particularly QBE solutions. The well our transaction creating in innovative

QBE's seasoned time covering tailored was unique we active consider opportunity. solution first emerging a business, lines which a discontinued it In business, the we addition and delivered for to liabilities within of

retained sale We business came also Validus agreement versatility creating with completed the solutions to in to adverse protection quickly together reserves on on of exposure transaction loss AIG, The our providing a goals. following bespoke AIG's their partners' strategic again, RenRe. to and Re's development our support demonstrates

Active that in capital repurchased $XXX accretive a priority. a price shares of top million of value to shareholders. We remains XXXX total was management a at

performance, our our strong on to credit S&P long-term validates Finally, BBB+, from we received issuer which leadership an further outstanding upgrade rating capitalization. and

evolves demand strategic short-term As from a and long-term needs, history opportunities, pipeline are our companies partners. that very high. insurance isn't Further, game We provide the to look XX-year legacy know to market deal as the we XXXX, entry and barriers client the see the as primary from they is more as size us continues progress there through we legacy market growing. response to in to

by market risk our staying robust strong world the the potential and will the we Given remain business focused of management us succeed faces, and position how transactions. Despite in challenges model, and liquidity macroeconomic the base our capital and liabilities and our management well. and disciplined strength we position assess existing business track of unrivaled highly model on in record, the our confident sustainable

many so talented for years we whilst are shareholders ahead. of in our dedicated choice, colleagues, significant With the legacy confident and creating value remaining partner of the

Matt, Hoffman to Officer. Chief Chief us Officer. from turning Brent Enstar over wanted role January, his Paul who Claims to Before as I welcome new Brockman, in to continues taking in joined our Operating Brent as

work experience for been Paul transition someone has position and leader serving his to this that be will AXA support distinguished their superior we're will closely a at ability coming pleased XL. our Brent's together, Matt. function, us prior Paul Global have decade able and to to outcomes. Claims doubt from Over claims a I for Everest to tremendous and leadership to continued management Head our and Brent to caliber, no that and you, claims claims as of strengths of and to collective nearly deliver

Matthew Kirk

with cap had XXXX, Enstar We income XX.X% a ROE of equity Dominic. on strong million Thanks, ROE X%. recording net solid of a off and a shareholders attributable to quarter fourth return adjusted to of or ordinary $XXX

As that adjustments and fixed a well investments losses funds as detailed in as adjusted our is reminder, a measure maturity net gains directly and held realized performance and on other unrealized Form ROE as XX-K. excludes managed

ROE year, XX.X% ROE of the full income For ordinary Enstar attributable shareholders net and recorded of billion, XX.X%. to of we $X.X adjusted

registered value respectively. we of XX% and per book fully XX%, value book addition, share diluted and In growth

gain completion from of a and business. the the Bermuda Re of novation unwind full million $X.X a our the million I total basis; Income investment Enhanzed Our tax Tax, $XXX of on an favorable enactment was ROE benefit million, over its will later; driven $XXX on Corporate of earnings were of touch which returns $XXX nonrecurring $XXX million which results by adjusted runoff and or year of billion; liability from

SOFR we and received NII from total as term with $XXX return, existing which the generated our of above floating rate portfolio, investable fixed net investment consideration approximately our into of assets. X%, well rates investment or QBE, income transactions which Diving to investment comprised our return as XX% RACQ AIG includes the assets income from million due

returns of loan leveraged of favorable by unrealized noncore and credit net global equity million of driven recorded through rate to market investments spreads. primarily driven We in experienced strong and and $XXX also the income and on equity after high-yield OCI, gains million, for XXXX. million our net $XX performance U.S. bond Federal cuts to realized market gain by equity November $XXX We the the primarily began reversal indicate December of and of the to Reserve tightening unrealized

Our has stands cumulative book loss approximately value $XXX position million, per which of XXXX, $XX adversely December unrealized XX, at share. impacted by as

view reverse approach as settlement losses unrealized them maturity. the naturally the hold we As liabilities, of claim these to will liquidity assets securities for generally our the with provide a maturity that

favorable of ULAE. Consistent prior our reviews across result workers' fourth fair well quarter. majority as decision decreases the yields. general as in in increase corporate trends the The to we held practices, the strengthen with portfolios reserves certain business performed was of our in years are RLA to driven portfolio response value by for positive was reductions the that in our our in bond a compensation charge acquisition development multiple property favorable provision business Partially development of as our and lines our own and in in offsetting global the of industry due the part line on in to book at value casualty to as well

on amount overall why by a horizon. longer-term focus from that year-to-year, to note can important is fluctuate which is we results material time our our It

our instance, in see For gains given our could of investment losses, volume shifts marked and unrealized holdings. portfolio investment

value. of of if book clear growth history a of view trajectory the However, profitable and you long-term Enstar, expansion is there

agreement Our $XXX liquidity unutilized through May revolving available from million to refinanced capital as and position December and million We our strong $XXX remains to and us support to XXXX. of facility term extended X its credit future remains transactions. The by XX. and upsized fully years

a repurchase. and most solvency to solid ratio after maintain also recent allocating We share group recent our transactions

an recently of which X, beginning required January From laws fair transition enacted tax government we change effective tax regime. will Corporate Under Bermuda XX% to years apply The businesses, to standpoint, tax Income Bermuda the GAAP, period the recognize intended in a Tax to of the enacted, regardless or equitable the is including support the the into includes effective transition which changes Act Tax effects Income regulatory selections, for Corporate are economic XXXX. income is a on Act XXXX, after of Bermuda date. U.S. tax and corporate various a in certain the adjustment, of

core our As a solutions to advantage benefit. profitable tax legacy strategy completing we legacy our tax additional million our maintain long-term and recognized deferred take providing We for high-quality placed We value world. disciplined healthy ideally approach throughout pipeline and create to transactions of produced $XXX to shareholders. XXXX, and income of a remain in result, the a innovative a to asset deliver consistently corresponding performance we continue strong with partners

make I our Finally, their and behalf the executive global employees and on work. Dominic thank the myself, team, They legacy to Enstar for leader. of expertise want hard

for you time Thank in Enstar. interest your your continued and

Enstar Group Limited (ESGR) 22 Feb 242023 Q4 Earnings call transcript