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Enstar falls to $196mn Q3 loss on investment swing

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Enstar fell to a $196mn loss in the third quarter following a dramatic swing in the company’s investment income.

Net realized and unrealized losses in investments during the reporting period came in at $273mn compared with a gain of $500mn in the prior-year quarter.

The legacy carrier is pursuing a strategy of re-alignment to reduce its exposure to hedge fund investments and redeemed $1.5bn from the InRe Fund during Q3.

Following the decision to redeem, the InRe Fund’s investments were impacted by significant volatility in Chinese and other global equity markets, which led to net realized and unrealized losses of $285.2mn.

Following the sale of StarStone US, the sale of its majority interest in Atrium and the placing of StarStone’s non-US into run-off, Enstar has largely exited its previously controlled active underwriting platforms.

Enstar said its corporate objective was growing its book value per share through growth in net earnings from both organic and accretive sources.

Net profit: The legacy carrier swung to a net loss of $196mn, following profits of $615mn in the prior-year quarter.

EPS: There was also a significant decline in net earnings per ordinary share, which came in at a $10.68 loss, following a positive figure of $28.24 in Q3 2020.

Book value: During the nine months to 30 September 2021, the fully diluted book value per share increased by 9.2% to $307.09. Enstar said its book value per share was the most appropriate measure of its financial performance.

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