Enstar Group Limited - ESGR STOCK NEWS

Enstar Group Limited (NASDAQ: ESGR) has successfully executed a Loss Portfolio Transfer transaction with subsidiaries of QBE Insurance Group Limited. This transaction involves net loss reserves of $1.9 billion from QBE, with Enstar providing approximately $900 million of cover exceeding ceded reserves. The business covered includes various International and North American financial lines, European reinsurance portfolios, and certain discontinued US programs. The terms of the agreement stipulate adjustments based on claims made between January 1, 2023, and the closing date. The completion of the transaction followed necessary regulatory approvals and other closing conditions being met.

Enstar Group Limited (NASDAQ: ESGR) has announced a $341 million buyback of 1,597,712 non-voting convertible ordinary shares from Canada Pension Plan Investment Board (CPP Investments) at a price of $213.13 per share, reflecting a 5% discount to the recent trading price and a 13% discount to book value. This transaction aims to simplify Enstar's share capital structure by eliminating all outstanding non-voting shares. Post-transaction, CPP Investments will hold 9.4% of Enstar’s voting shares, maintaining its board representation. CEO Dominic Silvester highlighted the deal as a strategic use of Enstar's strong capital position to enhance shareholder value.

Enstar Group Limited (NASDAQ: ESGR) announced executive promotions following Paul O’Shea's retirement as President on March 1, 2023, after 28 years. Orla Gregory has been appointed as President, previously serving as CFO since August 2021. Paul Brockman is now Chief Operating Officer while retaining his role as Chief Claims Officer. Matthew Kirk, previously Group Treasurer, takes on the role of CFO. CEO Dominic Silvester expressed confidence in the new leadership and emphasized the company's readiness for growth opportunities, aiming to create long-term value for shareholders.

Enstar Group Limited (Nasdaq: ESGR) reported fourth quarter net earnings of $227 million, or $13.26 per diluted share, a significant increase from $120 million, or $6.66 per share in Q4 2021. The company achieved a Return on Equity (ROE) of 5.9% and a strong book value per share increase of 8.4% to $246.20. Notable developments included a $1.9 billion Loss Portfolio Transfer agreement with QBE. However, Enstar faced challenges with a net loss of $906 million for the year, primarily due to market conditions that affected investment performance. The company remains optimistic about its future position in the legacy market.

Enstar Group Limited (NASDAQ: ESGR) has announced a significant Loss Portfolio Transfer agreement with RACQ Insurance Limited, reinsuring 80% of RACQ’s Compulsory Third Party liabilities for accident years 2021 and prior. Effective from July 1, 2022, this agreement involves net reserves of approximately AUD$360 million, with Enstar covering around AUD$200 million of excess. The transaction will finalize upon meeting regulatory approvals and closing conditions. CEO Dominic Silvester highlighted the alignment with Enstar’s competencies and the importance of the Australian market for long-term value delivery to clients.

Enstar Group Limited (NASDAQ: ESGR) announced a ground-up Loss Portfolio Transfer (LPT) agreement with QBE Insurance Group Limited, affecting a diversified portfolio including financial lines and reinsurance in North America and Europe. Effective January 1, 2023, Enstar's subsidiaries will assume $1.9 billion in net loss reserves from QBE while providing $900 million in excess cover. The transaction awaits regulatory approval and involves transferring portions of QBE's portfolio to Enstar syndicate 2008. CEO Dominic Silvester noted that this collaboration highlights an emerging opportunity for Enstar to leverage its expertise in seasoned liabilities.

Enstar Group Limited (Nasdaq: ESGR) has declared cash dividends for its Series D and Series E preference shares. The dividends are set at $0.43750 per depositary share for both Series D and E, representing a 7.00% fixed-to-floating rate and a 7.00% perpetual non-cumulative rate, respectively. These payments will be made on March 1, 2023, to shareholders of record as of February 15, 2023. Enstar continues to be a leader in the insurance sector, focusing on innovative capital release solutions and having acquired over 110 companies and portfolios since its inception in 2001.

White Mountains Insurance Group (NYSE: WTM) has announced the creation of Outrigger Re Ltd., a reinsurance sidecar designed to provide collateralized reinsurance for its property catastrophe portfolio. The new Bermuda-based company is backed by $250 million in investor capital, with $205 million contributed by White Mountains, alongside investments from Aquiline Capital Partners and Enstar Group Limited (NASDAQ: ESGR). This initiative aims to enhance underwriting capacity in the current property catastrophe insurance market, reflecting strategic growth in response to evolving industry dynamics.

Enstar Group Limited (NASDAQ: ESGR) announced the completion of a Loss Portfolio Transfer with Argo Group, reinsuring U.S. casualty insurance portfolios from 2011 to 2019. The subsidiary covers reserves totaling $746 million, with an additional $275 million excess coverage, leading to a total policy limit of $1.1 billion. Argo retains a $75 million loss corridor up to $821 million. CEO Dominic Silvester highlighted the transaction as accretive, reinforcing the company's capacity to deliver capital relief solutions to partners, enhancing long-term stakeholder value.