Legacy acquirer Enstar Group has reported a more than threefold increase in net earnings for the second quarter of the year, primarily driven by strong investments performance.
Enstar reported net earnings of $798.6 million in Q2 2020, compared to $231.8 million for the same period last year.
The increase was mainly due to net realized and unrealized gains of $967.6 million during the quarter, including $550.2 million relating to other investments and equities and $417.4 million relating to fixed income securities.
Looking at the first six months of the year, Enstar reported earnings of $281.7 million, compared with $590.6 million in H1 2019.
Over this period, it recorded net realized and unrealized gains of $338.5 million, including $198.7 million relating to other investments and equities and $139.8 million relating to fixed income securities.
This followed a net loss of almost $517 million for the opening quarter of 2020, driven by $612.6 million of unrealised investment losses owing to COVID-19 related financial market turmoil.
Enstar’s non-GAAP operating income was $567.6 million and $229.8 million for Q2 and H1 of 2020, respectively, compared to $109.7 million and $308.4 million for the same periods in the previous year.
The company also recorded an increase in fully diluted book value per share of 23.3% and 7.6% for the three-month and six-month periods, respectively.
