Enstar(US:ESGR)2025-02-27 21:16Financial Performance - Enstar's return on equity (ROE) for Q4 2024 was 2.7%, a decrease from 13.7% in Q4 2023[16] - Adjusted ROE for Q4 2024 was 4.5%, down from 9.0% in the same quarter last year[16] - Basic net earnings per share for Q4 2024 were $10.02, compared to $40.14 in Q4 2023[16] - Diluted net earnings per share for Q4 2024 were $9.76, down from $39.71 in Q4 2023[16] - Annualized total investment return (TIR) for Q4 2024 was 3.8%, significantly lower than 14.8% in Q4 2023[16] - Total revenues for Q4 2024 were $211 million, a decrease from $1 million in Q4 2023[23] - Net investment income for Q4 2024 was $17 million, compared to $0 million in Q4 2023[23] - The segment income for Q4 2024 was $18 million, while the segment income for Q4 2023 was $104 million, indicating a decline of 82.69%[25] - For the year-to-date Q4 2024, total revenues were $1.09 billion, compared to $1.11 billion in the same period of 2023, showing a slight decrease of 1.80%[28] - Net income attributable to Enstar ordinary shareholders for Q4 2024 is $147 million, with adjusted net income rising to $256 million[48] - Net income for 2024 was $540 million, resulting in a Return on Equity (ROE) of 10.7%, compared to a net income of $1,082 million and an ROE of 24.2% in 2023[50] - Adjusted net income for 2024 was $1,515 million, with an adjusted ROE of 12.7%, while in 2023, adjusted net income was $1,102 million with an adjusted ROE of 18.8%[50] Assets and Capitalization - Total assets as of December 31, 2024, were $20.407 billion, a decrease from $20.913 billion in 2023[17] - Ordinary shareholders' equity increased to $5.581 billion in 2024 from $5.025 billion in 2023[17] - Total capitalization attributable to Enstar was $7.9 billion as of December 31, 2024, compared to $7.4 billion as of December 31, 2023[40] - Debt to total capitalization attributable to Enstar was 23.1% as of December 31, 2023, down from 24.9% in the previous year[40] - Total investable assets as of December 31, 2024, were $18.007 billion, a decrease from $18.243 billion in 2023[64] Investment Performance - The average price per share for repurchased shares in 2023 was $227.18, with 841,735 shares repurchased[16] - Net investment income for the year ended December 31, 2024, was $651 million, compared to $647 million in 2023, reflecting a slight increase[64] - The annualized Total Investment Return (TIR) for 2024 was 3.8%, down from 14.8% in 2023[64] - Adjusted TIR for the year ended December 31, 2024, was $1.128 billion, compared to $1.057 billion in 2023[64] - The annualized adjusted TIR for 2024 was 7.1%, compared to 5.5% in 2023[64] Expenses and Losses - Total expenses in Q4 2024 were $26 million, a significant decrease from $88 million in Q4 2023, representing a 70.45% reduction[25] - General and administrative expenses in Q4 2024 were $39 million, down from $47 million in Q4 2023, a decrease of 17.02%[25] - The company reported a goodwill impairment of $63 million in Q4 2024, which was not present in Q4 2023[28] - The company reported a net realized loss of $11 million on fixed maturities for Q4 2024, impacting overall financial performance[48] - The company incurred net current period losses and LAE, excluding paid losses, of $21 million in 2024, while in 2023, it was a loss of $30 million[56] Acquisitions and Mergers - The company entered into a definitive merger agreement with Sixth Street for $5.1 billion, approved by shareholders[9] - The adjusted ultimate losses for the acquisition year 2021 amounted to $5.320 billion, which includes $1.611 billion related to the acquisition of Enhanced Re[37] - The ultimate losses for the acquisition year 2023 were reported at $2.215 billion[34] Ratings and Outlook - Credit ratings for Enstar include a long-term issuer rating of BBB+ with a stable outlook from Standard and Poor's[41] - Enstar's subsidiary, Cavello Bay Reinsurance Limited, received an S&P Insurer Final rating with a stable outlook in March 2024[43] Shareholder Information - Fully diluted book value per ordinary share for the year ended December 31, 2024, is $368.47, compared to $336.72 for 2023, reflecting an increase of approximately 9.5%[46] - Total ordinary shareholders' equity as of December 31, 2024, is $5,581 million, an increase from $5,025 million in 2023[46] Adjustments and Non-GAAP Measures - The company reported non-GAAP adjustments including net realized losses on fixed maturities of $9 million in 2024 and $65 million in 2023[50] - Fair value changes on fixed maturities, trading, resulted in a gain of $25 million in 2024, compared to a loss of $84 million in 2023[50] - Adjusted operating income attributable to Enstar ordinary shareholders is calculated by excluding fair value changes and net realized gains/losses, providing a clearer view of operational performance[45] - The company aims to enhance comparability of core operating performance by excluding non-cash impacts and expenses related to mergers and acquisitions[45]