Enstar Group Limited (NASDAQ:ESGR) Q4 2023 Earnings Call Transcript
Enstar Group Limited (NASDAQ:ESGR) Q4 2023 Earnings Call Transcript February 22, 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.:
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, run-off liability earnings, the performance of its investment portfolio and the impact of rising 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. 2023 was a year of solid delivery for Enstar - we built on our 30-year history as the dominant legacy player through our partnerships with QBE and AIG and achieved profitable growth while maintaining balance sheet strength. As a result, we entered 2024 ideally placed to continue our significant contributions to the market and drive long-term shareholder value. Before Matt takes you through our 2023 performance in detail, I want to call out a few notable achievements: We finished 2023 with an excellent quarter driven largely by the positive performance of our investment portfolio, in addition to recording strong technical savings and a tax benefit related to the enactment of Bermuda's new corporate income tax.
This led to a Return on Equity for the full year of 24.2% and growth in book value per share of 31.0%. Our ability to drive better outcomes through our excellent claims management known as the “Enstar Effect” – continues to pay dividends, and we completed our sixteenth straight year of generating favorable run-off liability earnings since going public in 2007 - which reflects outstanding efforts from the entire team. As I noted, the fourth quarter was a favourable period for investments as our portfolio continued to benefit from high interest rates, resulting in total investment return, or TIR, in the fourth quarter of $683 million, and over $1.3 billion for the full year. We remain disciplined towards asset allocation to maximise returns over the long-term whilst managing asset specific short-term volatility.
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