Enstar has reported a net loss of $282m and return on equity of -5.0% in Q1 2022, according to its latest results.
This contrasted with the firm saying that it had seen net earnings of $183m in Q1 2021, saying that it had seen a fall of 465%.
Dominic Silvester, CEO of Enstar, said in a statement: “We started the year by signing one of our largest ever loss portfolio transactions and completing another successful debt raise at competitive rates, while our financial results in the first quarter reflect rising interest rates and economic uncertainty. We remain focused on delivering long-term value and are well positioned to maintain our momentum during these volatile times.”
Among Enstar’s operational highlights was its transaction with Aspen to assume $3.1bn of net loss reserves in a loss portfolio transfer transaction, subject to a limit of $3.6 billion. It also cited that he redemption and subsequent liquidation of the InRe Fund in 2021 and its raising of $500m of junior subordinated debt at 5.5%, using a portion of the net proceeds to repay the remaining $280m aggregate principal amount of its 2022 senior notes at their March 2022 maturity.
The firm said that its exposures resulting from the Russian invasion of Ukraine had led to volatility in global commodity markets. This was most notable, Enstar said, in the energy market and the loss of insured property. However, it said there were no ‘significant direct impacts’ from the event at this time.
Back in February, the firm said it had seen net earnings of $437m in 2021.
