Enstar Group Limited (NASDAQ:ESGR) Q3 2023 Earnings Call Transcript
Enstar Group Limited (NASDAQ:ESGR) Q3 2023 Earnings Call Transcript November 7, 2023
Peter Kalaev: Hello everyone, I’m Peter Kalaev, Group Treasurer. Thank you for listening to Enstar’s Third Quarter 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. In the third quarter we continued to execute on value accretive transactions for our shareholders while delivering year-to-date growth in book value per share. A few notable highlights. We announced a new agreement with AIG, which completed recently, to provide up to $400 million of protection against adverse development on the carried loss reserves underwritten by Validus Re. This transaction is further validation of our leading ability to structure and execute innovative, bespoke capital release solutions for our partners worldwide. We generated strong net investment income of $143 million, largely driven by improved year-over-year performance in our investment portfolio, supported by higher interest rates on our floating rate assets and the investment of new assets from our second quarter transactions with QBE and RACQ at over 5% yields.
Finally, subsequent to the end of the quarter, we agreed to repurchase ordinary shares from CPP Investments and its affiliates. We are pleased to execute this accretive buy back of shares while retaining ample capital resources to seamlessly continue our long-term operational strategy. Matt will cover these transactions in more detail later. As we look to the end of 2023, we continue to diligently watch the ongoing uncertain macro and geopolitical environments, taking them into account as we consider how best to grow our business. With that said, given our proven business model, operational excellence, and strong capital position, Enstar is well placed to continue to lead the run- off market, while creating significant value for our shareholders in the years ahead.
Over to you Matt.
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