Enstar Group Limited (Nasdaq: ESGR) filed its quarterly report on
Form 10-Q with the SEC earlier today. The third quarter 2023
results with expanded commentary is available on Enstar's investor
relations website at investor.enstargroup.com.
Third Quarter 2023 Highlights: |
-
Net earnings attributable to Enstar ordinary shareholders of $38
million, or $2.43 per diluted ordinary share, compared to net loss
attributable to Enstar ordinary shareholders of $432 million, or
$25.39 per diluted ordinary share, for the three months ended
September 30, 2022.
-
Return on equity ("ROE") of 0.9% and Adjusted ROE* of 2.5% for the
quarter compared to (9.4)% and (2.5)%, respectively, in the third
quarter of 2022. ROE performance was driven by investment returns
of $146 million. Adjusted ROE* excludes $80 million of net realized
and unrealized losses on our fixed maturities.
-
Run-off liability earnings ("RLE") of $15 million was driven by
favorable development on our workers' compensation and property
lines of business and a reduction in the provisions for ULAE,
partially offset by a charge to increase the value of certain
portfolios that are held at fair value due to decreases in U.K.
corporate bond yields and adverse development on our general
casualty and all other line of business. In comparison, RLE of $141
million in the comparative quarter was positively impacted by
favorable development in our workers’ compensation and marine,
aviation and transit lines of business, as well as income resulting
from reductions in the value of certain portfolio liabilities that
are held at fair value due to increases in global corporate bond
yields. The comparative quarter results were partially offset by
adverse development on our general casualty and motor lines of
business.
-
Annualized total investment return (“TIR”) of 1.8% and Annualized
Adjusted TIR* of 4.5%, compared to (13.1)% and (1.3)%,
respectively, for the three months ended September 30, 2022.
Recognized investment results benefited from net realized and
unrealized gains on our other investments, including equities, of
$86 million and net investment income of $143 million, partially
offset by net realized and unrealized losses on our fixed
maturities, including other comprehensive income (“OCI”) of $143
million.
-
Signed agreement with American International Group, Inc. (“AIG”) to
provide protection to AIG on its retained exposure to adverse
development on Validus Re carried loss reserves, up to a limit of
$400 million. The agreement became effective as of November 1,
2023, corresponding to the closing of AIG’s sale of Validus Re to
RenaissanceRe.
* Non-GAAP measure; refer to "Non-GAAP Financial
Measures" further below for explanatory notes and a reconciliation
to the most directly comparable GAAP measure.
Announces Repurchase of $191 Million of Ordinary Shares in
Accretive Transaction: |
Subsequent to the end of the third quarter, in
two separate transactions, Enstar agreed to repurchase 791,735
ordinary shares from Canada Pension Plan Investment Board (“CPP
Investments”) and its affiliate, and 50,000 ordinary shares from
the Trident V funds managed by Stone Point Capital LLC (“the
Trident V Funds”) at a price of $227.18 per share, totaling
approximately $191 million in aggregate. The price represents a 5%
discount to the trailing 10-day volume weighted average price of
Enstar’s ordinary shares as of the close of business on November 3,
2023. Additionally, Enstar’s Chief Executive Officer, Dominic
Silvester, will acquire 45,000 ordinary shares for approximately
$10 million from the Trident V Funds.
These transactions are scheduled to close on
November 14, 2023.
Dominic Silvester, Enstar CEO, said: |
“We maintained strong operational momentum in
the third quarter with our agreement with AIG and ongoing execution
of our strategic priorities, while delivering year-to-date growth
in book value per share. As we look to the end of 2023, we will
rely on our core strengths of scale, claims management experience
and our strong balance sheet to continue providing long-term
value.”
Nine Months Ended September 30, 2023
Highlights: |
-
Net earnings attributable to Enstar ordinary shareholders of $483
million, or $30.05 per diluted ordinary share, compared to net loss
attributable to Enstar ordinary shareholders of $1.1 billion, or
$65.61 per diluted ordinary share, for the nine months ended
September 30, 2022.
-
ROE of 10.8% and Adjusted ROE* of 10.8%, compared to (19.5)% and
(5.2)%, respectively, for the nine months ended September 30, 2022.
ROE performance was driven by investment returns of $660 million
and a year-to-date net gain recognized on the completion of the
novation of the Enhanzed Re reinsurance of a closed block of life
annuity policies of $195 million.
-
RLE of $35 million was driven by favorable development on our
workers' compensation and property lines of business and a
reduction in the provisions for ULAE, partially offset by a charge
to increase the value of certain portfolios that are held at fair
value and adverse development on our general casualty and all other
line of business. In comparison, RLE of $476 million for the nine
months ended September 30, 2022 was positively impacted by
favorable development in our workers’ compensation, professional
indemnity/directors and officers and marine, aviation and transit
lines of business, as well as income resulting from reductions in
the value of certain portfolio liabilities that are held at fair
value due to increases in global corporate bond yields. The
comparative period results were partially offset by adverse
development in our general casualty and motor lines of
business.
-
Annualized TIR of 4.7% and Annualized Adjusted TIR* of 5.3%,
compared to (13.0)% and (1.0)%, respectively, for the nine months
ended September 30, 2022. Recognized investment results benefited
from net realized and unrealized gains on our other investments,
including equities, of $295 million and net investment income of
$471 million, partially offset by net realized and unrealized
losses on our fixed maturities, including other comprehensive
income (“OCI”) of $126 million.
-
Completed $1.9 billion LPT agreement with certain subsidiaries of
QBE Insurance Group Limited (“QBE”) and AUD $360 million (USD $245
million) LPT with RACQ Insurance Limited (“RACQ”). At closing, we
assumed net loss reserves of $2.0 billion from QBE and $179 million
from RACQ, respectively.
-
Amended and restated our existing revolving credit agreement,
increasing commitments from $600 million to $800 million and
increasing the term by five years.
-
Repurchased remaining $341 million of non-voting convertible
ordinary shares, at a price that represented a 13% discount to
year-end book value at the time the repurchase was negotiated as
reported in our Annual Report on Form 10-K for the year ended
December 31, 2022, simplifying Enstar’s capital structure.
Following the adoption of the long-duration targeted improvements
accounting standard which required adjustments to our financial
statements (including equity) on a retrospective basis, the price
paid in the repurchase transaction represented a 23% discount to
year-end book value as reported in and further described in our
Quarterly Report on Form 10-Q for the period ended September 30,
2023.
* Non-GAAP measure; refer to "Non-GAAP Financial
Measures" further below for explanatory notes and a reconciliation
to the most directly comparable GAAP measure.
Key Financial and Operating Metrics |
We use the following GAAP and Non-GAAP measures to monitor the
performance of and manage the company:
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
$ / pp / bp Change |
|
|
2023 |
|
|
|
2022 |
|
|
$ / pp / bp Change |
|
(in millions of U.S. dollars, except per share
data) |
Key Earnings
Metrics |
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to Enstar ordinary
shareholders |
$ |
38 |
|
|
$ |
(432 |
) |
|
$ |
470 |
|
|
$ |
483 |
|
|
$ |
(1,133 |
) |
|
$ |
1,616 |
|
Adjusted operating income (loss) attributable to Enstar ordinary
shareholders* |
$ |
128 |
|
|
$ |
(136 |
) |
|
$ |
264 |
|
|
$ |
634 |
|
|
$ |
(285 |
) |
|
$ |
919 |
|
ROE |
|
0.9 |
% |
|
(9.4 |
)% |
|
|
10.3 |
pp |
|
|
10.8 |
% |
|
(19.5 |
)% |
|
|
30.3 |
pp |
Annualized ROE |
|
|
|
|
|
|
|
|
|
14.4 |
% |
|
(26.0 |
)% |
|
|
40.4 |
pp |
Adjusted ROE* |
|
2.5 |
% |
|
(2.5 |
)% |
|
|
5.0 |
pp |
|
|
10.8 |
% |
|
(5.2 |
)% |
|
|
16.0 |
pp |
Annualized Adjusted ROE* |
|
|
|
|
|
|
|
14.4 |
% |
|
(6.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Run-off
Metrics |
|
|
|
|
|
|
|
|
|
|
|
Prior period development |
$ |
15 |
|
|
$ |
141 |
|
|
$ |
(126 |
) |
|
$ |
35 |
|
|
$ |
476 |
|
|
$ |
(441 |
) |
Adjusted prior period development* |
$ |
32 |
|
|
$ |
61 |
|
|
$ |
(29 |
) |
|
$ |
76 |
|
|
$ |
237 |
|
|
$ |
(161 |
) |
RLE |
|
0.1 |
% |
|
|
1.2 |
% |
|
|
(1.1 |
)pp |
|
|
0.3 |
% |
|
|
4.0 |
% |
|
|
(3.7 |
)pp |
Adjusted RLE* |
|
0.2 |
% |
|
|
0.5 |
% |
|
|
(0.3 |
)pp |
|
|
0.6 |
% |
|
|
1.9 |
% |
|
|
(1.3 |
)pp |
|
|
|
|
|
|
|
|
|
|
|
|
Key Investment Return
Metrics |
|
|
|
|
|
|
|
|
|
|
|
Total investable assets |
$ |
18,594 |
|
|
$ |
19,310 |
|
|
$ |
(716 |
) |
|
$ |
18,594 |
|
|
$ |
19,310 |
|
|
$ |
(716 |
) |
Adjusted total investable assets* |
$ |
19,816 |
|
|
$ |
21,236 |
|
|
$ |
(1,420 |
) |
|
$ |
19,816 |
|
|
$ |
21,236 |
|
|
$ |
(1,420 |
) |
Annualized investment book yield |
|
3.53 |
% |
|
|
2.32 |
% |
|
|
121 |
bp |
|
|
3.73 |
% |
|
|
2.15 |
% |
|
|
158 |
bp |
Annualized TIR |
|
1.8 |
% |
|
(13.1 |
)% |
|
|
14.9 |
pp |
|
|
4.7 |
% |
|
(13.0 |
)% |
|
|
17.7 |
pp |
Annualized Adjusted TIR* |
|
4.5 |
% |
|
(1.3 |
)% |
|
|
5.8 |
pp |
|
|
5.3 |
% |
|
(1.0 |
)% |
|
|
6.3 |
pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
Key Shareholder
Metrics |
|
|
|
|
|
|
September 30, 2023 |
|
December 31, 2022 |
|
|
Book value per ordinary share |
|
|
|
|
|
|
$ |
282.37 |
|
|
$ |
262.24 |
|
|
$ |
20.13 |
|
Adjusted book value per ordinary share* |
|
|
|
|
|
|
$ |
277.01 |
|
|
$ |
258.92 |
|
|
$ |
18.09 |
|
pp - Percentage point(s)bp - Basis point(s)*Non-GAAP measure;
refer to "Non-GAAP Financial Measures" further below for
explanatory notes and a reconciliation to the most directly
comparable GAAP measure.
Results of Operations By Segment - For the Three and Nine
Months Ended September 30, 2023 and 2022 |
Run-off Segment
The following is a discussion and analysis of
the results of operations for our Run-off segment.
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
$Change |
|
|
September 30, |
|
$Change |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
INCOME |
(in millions of U.S. dollars) |
|
|
|
|
|
|
Net premiums earned |
$ |
14 |
|
|
$ |
1 |
|
|
$ |
13 |
|
|
$ |
29 |
|
|
$ |
27 |
|
|
$ |
2 |
|
Other income: |
|
|
|
|
|
|
|
|
|
|
|
Reduction in estimates of net ultimate defendant A&E
liabilities - prior periods |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
4 |
|
|
|
(2 |
) |
Reduction in estimated future defendant A&E expenses |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
1 |
|
All other income |
|
— |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
7 |
|
|
|
14 |
|
|
|
(7 |
) |
Total other income |
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
11 |
|
|
|
19 |
|
|
|
(8 |
) |
Total income |
|
15 |
|
|
|
3 |
|
|
|
12 |
|
|
|
40 |
|
|
|
46 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Net incurred losses and
LAE: |
|
|
|
|
|
|
|
|
|
|
|
Current period |
|
5 |
|
|
|
10 |
|
|
|
(5 |
) |
|
|
18 |
|
|
|
35 |
|
|
|
(17 |
) |
Prior periods: |
|
|
|
|
|
|
|
|
|
|
|
Reduction in estimates of net ultimate losses |
|
(12 |
) |
|
|
(46 |
) |
|
|
34 |
|
|
|
(35 |
) |
|
|
(183 |
) |
|
|
148 |
|
Reduction in provisions for ULAE |
|
(19 |
) |
|
|
(15 |
) |
|
|
(4 |
) |
|
|
(37 |
) |
|
|
(49 |
) |
|
|
12 |
|
Total prior periods |
|
(31 |
) |
|
|
(61 |
) |
|
|
30 |
|
|
|
(72 |
) |
|
|
(232 |
) |
|
|
160 |
|
Total net incurred losses and
LAE |
|
(26 |
) |
|
|
(51 |
) |
|
|
25 |
|
|
|
(54 |
) |
|
|
(197 |
) |
|
|
143 |
|
Acquisition costs |
|
— |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
18 |
|
|
|
(12 |
) |
General and administrative
expenses (1) |
|
44 |
|
|
|
38 |
|
|
|
6 |
|
|
|
130 |
|
|
|
123 |
|
|
|
7 |
|
Total expenses |
|
18 |
|
|
|
(12 |
) |
|
|
30 |
|
|
|
82 |
|
|
|
(56 |
) |
|
|
138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT NET (LOSS)
EARNINGS |
$ |
(3 |
) |
|
$ |
15 |
|
|
$ |
(18 |
) |
|
$ |
(42 |
) |
|
$ |
102 |
|
|
$ |
(144 |
) |
(1) Includes an adjustment made to correct
immaterial errors related to the allocation of third quarter 2022
expenses, which increased general and administrative expenses by
$4 million and $14 million for the three and nine months
ended September 30, 2022, respectively.
Overall Results
Three Months Ended September 30, 2023
versus 2022: Net loss from our Run-off segment was $3
million compared to net earnings of $15 million in the comparative
quarter, primarily due to:
-
A $30 million decrease in favorable PPD in the current quarter,
mainly driven by a $34 million decrease in the reduction in
estimates of net ultimate losses in comparison to the comparative
quarter.
-
During the third quarter of 2023, we recognized favorable
development on our workers’ compensation and property lines of
business of $24 million and $17 million, respectively, as
a result of favorable claims experience. The results were partially
offset by adverse development on our general casualty line of
business of $41 million, primarily due to a small number of
large losses across several portfolios, particularly on excess
business, and adverse development on our all other line of business
of $17 million, driven by identified deterioration on abuse
claims.
-
In comparison, during the third quarter of 2022 we recognized
favorable development of $54 million on our workers’ compensation
line of business as a result of favorable claim settlements, and
favorable development of $28 million on our marine, aviation and
transit line of business as a result of lower claim activity. This
was partially offset by adverse development on our general casualty
and motor lines of business of $21 million and $19 million,
respectively, primarily due to worse than expected claims
experience and adverse development on claims; partially offset
by
- A net favorable
change in net premiums earned, current period net incurred losses
and LAE and acquisition costs of $19 million, following our exit of
our StarStone International business beginning in 2020.
Nine Months Ended September 30, 2023
versus 2022: Net loss from our Run-off segment was $42
million compared to net earnings of $102 million in the comparative
period, primarily due to:
-
A $160 million decrease in favorable PPD, mainly driven by a $148
million decrease in the reduction in estimates of net ultimate
losses in comparison to the comparative period.
-
The prior period reduction in estimates of net ultimate losses of
$35 million was driven by net favorable development across
multiple Run-off segment lines of business. We recognized
$44 million of favorable development on our workers’
compensation line of business as a result of continued favorable
claims experience and $16 million of favorable development on
our property line of business as a result of favorable claims
experience. The results were partially offset by $37 million
of adverse development in our general casualty line of business,
primarily due to a small number of large losses across several
portfolios, particularly on excess business, and $18 million
of adverse development on our all other line of business, driven by
identified deterioration on abuse claims.
-
We also increased our ULAE provision by $21 million as a result of
assuming active claims control on our 2022 LPT agreement with Argo,
which offset other ULAE reserve adjustments from our run-off
operations.
-
In comparison, during the nine months ended September 30, 2022, we
recognized favorable development of $104 million on our workers’
compensation line of business as a result of favorable claim
settlements. We also recognized favorable development of $85
million on our professional indemnity/directors and officers line
of business and favorable development of $38 million on our marine,
aviation and transit line of business as a result of lower claims
activity. This was partially offset by adverse development on our
general casualty and motor lines of business of $31 million and $20
million, respectively, as a result of worse than expected claims
experience and adverse development on claims; partially offset
by
-
A net favorable change in net premiums earned, current period net
incurred losses and LAE and acquisition costs of $31 million,
following our exit of our StarStone International business
beginning in 2020.
Investments Segment
The following is a discussion and analysis of
the results of operations for our Investments segment.
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
$Change |
|
September 30, |
|
$Change |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(in millions of U.S. dollars) |
|
|
|
|
|
|
INCOME |
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities |
$ |
120 |
|
|
$ |
94 |
|
|
$ |
26 |
|
|
$ |
396 |
|
|
$ |
247 |
|
|
$ |
149 |
|
Cash and restricted cash |
|
14 |
|
|
|
2 |
|
|
|
12 |
|
|
|
27 |
|
|
|
3 |
|
|
|
24 |
|
Other investments, including equities |
|
15 |
|
|
|
22 |
|
|
|
(7 |
) |
|
|
62 |
|
|
|
63 |
|
|
|
(1 |
) |
Less: Investment expenses |
|
(6 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(14 |
) |
|
|
(19 |
) |
|
|
5 |
|
Total net investment
income |
|
143 |
|
|
|
114 |
|
|
|
29 |
|
|
|
471 |
|
|
|
294 |
|
|
|
177 |
|
Net realized (losses)
gains: |
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities |
|
(12 |
) |
|
|
(23 |
) |
|
|
11 |
|
|
|
(62 |
) |
|
|
(88 |
) |
|
|
26 |
|
Other investments, including equities |
|
(2 |
) |
|
|
(13 |
) |
|
|
11 |
|
|
|
29 |
|
|
|
(23 |
) |
|
|
52 |
|
Net realized (losses)
gains: |
|
(14 |
) |
|
|
(36 |
) |
|
|
22 |
|
|
|
(33 |
) |
|
|
(111 |
) |
|
|
78 |
|
Net unrealized gains
(losses): |
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities, trading |
|
(68 |
) |
|
|
(391 |
) |
|
|
323 |
|
|
|
(66 |
) |
|
|
(1,061 |
) |
|
|
995 |
|
Other investments, including equities |
|
88 |
|
|
|
(151 |
) |
|
|
239 |
|
|
|
266 |
|
|
|
(445 |
) |
|
|
711 |
|
Total net unrealized gains
(losses): |
|
20 |
|
|
|
(542 |
) |
|
|
562 |
|
|
|
200 |
|
|
|
(1,506 |
) |
|
|
1,706 |
|
Total income (loss) |
|
149 |
|
|
|
(464 |
) |
|
|
613 |
|
|
|
638 |
|
|
|
(1,323 |
) |
|
|
1,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
General and administrative
expenses (1) |
|
12 |
|
|
|
9 |
|
|
|
3 |
|
|
|
33 |
|
|
|
26 |
|
|
|
7 |
|
Total expenses |
|
12 |
|
|
|
9 |
|
|
|
3 |
|
|
|
33 |
|
|
|
26 |
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses) earnings from equity
method investments |
|
(3 |
) |
|
|
(20 |
) |
|
|
17 |
|
|
|
22 |
|
|
|
12 |
|
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT NET EARNINGS
(LOSS) |
$ |
134 |
|
|
$ |
(493 |
) |
|
$ |
627 |
|
|
$ |
627 |
|
|
$ |
(1,337 |
) |
|
$ |
1,964 |
|
(1) Includes an adjustment made to correct
immaterial errors related to the allocation of third quarter 2022
expenses, which decreased general and administrative expenses by $0
and $2 million for the three and nine months ended September
30, 2022, respectively.
Overall Results
Three Months Ended September 30, 2023
versus 2022: Net earnings from our Investments segment
were $134 million for the three months ended September 30,
2023 compared to net losses of $493 million for the three months
ended September 30, 2022. The favorable movement of $627 million
was primarily due to:
-
a decrease in net realized and unrealized losses on fixed
maturities of $334 million, primarily as a result of a less
significant increase in interest rates across U.S., U.K. and
European markets relative to the comparable quarter;
-
net realized and unrealized gains on other investments, including
equities, of $86 million, compared to net realized and unrealized
losses of $164 million in the comparative period. The favorable
variance of $250 million was primarily driven by:
-
Net gains for the three months ended September 30, 2023, primarily
driven by our private equity funds, private credit funds, CLO
equities and fixed income funds, which are typically recorded on a
one quarter lag, largely as a result of second quarter 2023 global
equity market performance and tightening high yield credit spreads;
in comparison to
-
Net losses for the three months ended September 30, 2022, primarily
driven by our public equities, fixed income funds, private equity
funds and hedge funds, largely as a result of global equity market
declines and widening of high yield credit spreads; and
- an increase in our net investment
income of $29 million, which is primarily due to the reinvestment
of fixed maturities at higher yields, deployment of consideration
received from deals closed over the past 12 months and the impact
of rising interest rates on the $3.3 billion of our average
fixed maturities outstanding during the period that are subject to
floating interest rates. Our floating rate investments generated
increased net investment income of $20 million, which equates
to an increase of 168 basis points on those investments in
comparison to the prior quarter.
Nine Months Ended September 30, 2023
versus 2022: Net earnings from our Investments segment
were $627 million for the nine months ended September 30, 2023
compared to net losses of $1.3 billion for the nine months ended
September 30, 2022. The favorable movement of $2.0 billion was
primarily due to:
-
a decrease in net realized and unrealized losses on fixed
maturities of $1.0 billion, primarily as a result of a less
significant increase in interest rates across U.S., U.K. and
European markets relative to the comparative period, in addition to
a tightening of credit spreads in the current period;
-
net realized and unrealized gains on other investments, including
equities, of $295 million, compared to net realized and unrealized
losses of $468 million in the comparative period. The favorable
variance of $763 million was primarily driven by:
-
Net gains for the nine months ended September 30, 2023, primarily
due to our public equities, private equity funds, private credit
funds and fixed income funds, largely as a result of strong global
equity market performance and tightening of high yield credit
spreads; in comparison to
-
Net losses for the nine months ended September 30, 2022, due to our
public equities, fixed income funds, CLO equities and hedge funds,
largely as a result of global equity market declines and widening
of high yield credit spreads; and
- an increase in
our net investment income of $177 million, which is primarily due
to the reinvestment of fixed maturities at higher yields,
deployment of consideration received from deals closed over the
past 12 months and the impact of rising interest rates on the
$3.2 billion of our average fixed maturities outstanding
during the period that are subject to floating interest rates. Our
floating rate investments generated increased net investment income
of $76 million, which equates to an increase of 269 basis
points on those investments in comparison to the prior period.
Income and (Loss) Earnings by Segment - For the Three and
Nine Months Ended September 30, 2023 and 2022 |
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
$ Change |
|
|
2023 |
|
|
|
2022 |
|
|
$ Change |
|
(in millions of U.S. dollars) |
INCOME |
|
|
|
|
|
|
|
|
|
|
|
Run-off |
$ |
15 |
|
|
$ |
3 |
|
|
$ |
12 |
|
|
$ |
40 |
|
|
$ |
46 |
|
|
$ |
(6 |
) |
Assumed Life |
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
276 |
|
|
|
17 |
|
|
|
259 |
|
Investments |
|
149 |
|
|
|
(464 |
) |
|
|
613 |
|
|
|
638 |
|
|
|
(1,323 |
) |
|
|
1,961 |
|
Legacy Underwriting |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
(8 |
) |
Subtotal |
|
165 |
|
|
|
(459 |
) |
|
|
624 |
|
|
|
954 |
|
|
|
(1,252 |
) |
|
|
2,206 |
|
Corporate and other |
|
(4 |
) |
|
|
(7 |
) |
|
|
3 |
|
|
|
(7 |
) |
|
|
10 |
|
|
|
(17 |
) |
Total income (loss) |
$ |
161 |
|
|
$ |
(466 |
) |
|
$ |
627 |
|
|
$ |
947 |
|
|
$ |
(1,242 |
) |
|
$ |
2,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT NET EARNINGS
(LOSS) |
|
|
|
|
|
|
|
|
|
|
|
Run-off (1) |
$ |
(3 |
) |
|
$ |
15 |
|
|
$ |
(18 |
) |
|
$ |
(42 |
) |
|
$ |
102 |
|
|
$ |
(144 |
) |
Assumed Life |
|
1 |
|
|
|
(7 |
) |
|
|
8 |
|
|
|
276 |
|
|
|
15 |
|
|
|
261 |
|
Investments (1) |
|
134 |
|
|
|
(493 |
) |
|
|
627 |
|
|
|
627 |
|
|
|
(1,337 |
) |
|
|
1,964 |
|
Legacy Underwriting |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total segment net earnings
(loss) |
|
132 |
|
|
|
(485 |
) |
|
|
617 |
|
|
|
861 |
|
|
|
(1,220 |
) |
|
|
2,081 |
|
Corporate and other (1) |
|
(94 |
) |
|
|
53 |
|
|
|
(147 |
) |
|
|
(378 |
) |
|
|
87 |
|
|
|
(465 |
) |
NET EARNINGS (LOSS)
ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS |
$ |
38 |
|
|
$ |
(432 |
) |
|
$ |
470 |
|
|
$ |
483 |
|
|
$ |
(1,133 |
) |
|
$ |
1,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Third quarter 2022 presentation of segment
results include an adjustment made to correct immaterial errors
related to the allocation of expenses. For the three and nine
months ended September 30, 2022, Run-off segment general and
administrative expenses increased by $4 million and
$14 million, respectively, Investment segment general and
administrative expenses decreased by $0 and $2 million,
respectively, and Corporate and other activities general and
administrative expenses decreased by $4 million and
$12 million, respectively.
For additional detail on the Assumed Life
segment, the Legacy Underwriting segment and Corporate and other
activities, please refer to our Quarterly Report on Form 10-Q for
the period ended September 30, 2023.
This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements include
statements regarding the intent, belief or current expectations of
Enstar and its management team. Investors can identify these
statements by the fact that they do not relate strictly to
historical or current facts. They use words such as ‘aim’,
‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’,
‘plan’, ‘believe’, ‘target’ and other words and terms of similar
meaning in connection with any discussion of future events or
performance. Investors are cautioned that any such forward-looking
statements speak only as of the date they are made, are not
guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements as a result of
various factors. Important risk factors regarding Enstar can be
found under the heading "Risk Factors" in our Form 10-K for the
year ended December 31, 2022 and are incorporated herein by
reference. Furthermore, Enstar undertakes no obligation to update
any written or oral forward-looking statements or publicly announce
any updates or revisions to any of the forward-looking statements
contained herein, to reflect any change in its expectations with
regard thereto or any change in events, conditions, circumstances
or assumptions underlying such statements, except as required by
law.
Enstar is a NASDAQ-listed leading global
(re)insurance group that offers capital release solutions through
its network of group companies in Bermuda, the United States, the
United Kingdom, Continental Europe and Australia. A market leader
in completing legacy acquisitions, Enstar has acquired over 115
companies and portfolios since its formation. For further
information about Enstar, see www.enstargroup.com.
For Investors: Matthew Kirk
(investor.relations@enstargroup.com)
For Media: Jenna Kerr
(communications@enstargroup.com)
ENSTAR GROUP LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS
For the Three and Nine Months Ended
September 30, 2023 and 2022
|
Three Months EndedSeptember
30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
(expressed in millions of U.S. dollars, except share and
per share data) |
INCOME |
|
|
|
|
|
|
|
Net premiums earned |
$ |
14 |
|
|
$ |
4 |
|
|
$ |
29 |
|
|
$ |
52 |
|
Net investment income |
|
143 |
|
|
|
116 |
|
|
|
471 |
|
|
|
302 |
|
Net realized losses |
|
(14 |
) |
|
|
(36 |
) |
|
|
(33 |
) |
|
|
(111 |
) |
Net unrealized gains
(losses) |
|
20 |
|
|
|
(546 |
) |
|
|
200 |
|
|
|
(1,518 |
) |
Other (expense) income |
|
(2 |
) |
|
|
(4 |
) |
|
|
280 |
|
|
|
33 |
|
Total income (loss) |
|
161 |
|
|
|
(466 |
) |
|
|
947 |
|
|
|
(1,242 |
) |
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
Net incurred losses and loss adjustment expenses |
|
|
|
|
|
|
|
Current period |
|
5 |
|
|
|
13 |
|
|
|
18 |
|
|
|
39 |
|
Prior periods |
|
(15 |
) |
|
|
(141 |
) |
|
|
(35 |
) |
|
|
(476 |
) |
Total net incurred losses and loss adjustment expenses |
|
(10 |
) |
|
|
(128 |
) |
|
|
(17 |
) |
|
|
(437 |
) |
Policyholder benefit expenses |
|
— |
|
|
|
7 |
|
|
|
— |
|
|
|
25 |
|
Amortization of net deferred charge assets |
|
34 |
|
|
|
21 |
|
|
|
75 |
|
|
|
60 |
|
Acquisition costs |
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
20 |
|
General and administrative expenses |
|
91 |
|
|
|
66 |
|
|
|
265 |
|
|
|
234 |
|
Interest expense |
|
22 |
|
|
|
23 |
|
|
|
67 |
|
|
|
71 |
|
Net foreign exchange gains |
|
(23 |
) |
|
|
(17 |
) |
|
|
(24 |
) |
|
|
(27 |
) |
Total expenses |
|
114 |
|
|
|
(28 |
) |
|
|
372 |
|
|
|
(54 |
) |
|
|
|
|
|
|
|
|
EARNINGS (LOSS) BEFORE INCOME
TAXES |
|
47 |
|
|
|
(438 |
) |
|
|
575 |
|
|
|
(1,188 |
) |
Income tax benefit
(expense) |
|
7 |
|
|
|
(8 |
) |
|
|
12 |
|
|
|
(4 |
) |
(Losses) earnings from equity
method investments |
|
(3 |
) |
|
|
(20 |
) |
|
|
22 |
|
|
|
12 |
|
NET EARNINGS (LOSS) |
|
51 |
|
|
|
(466 |
) |
|
|
609 |
|
|
|
(1,180 |
) |
Net (earnings) loss
attributable to noncontrolling interests |
|
(4 |
) |
|
|
43 |
|
|
|
(99 |
) |
|
|
74 |
|
NET EARNINGS (LOSS)
ATTRIBUTABLE TO ENSTAR |
|
47 |
|
|
|
(423 |
) |
|
|
510 |
|
|
|
(1,106 |
) |
Dividends on preferred
shares |
|
(9 |
) |
|
|
(9 |
) |
|
|
(27 |
) |
|
|
(27 |
) |
NET EARNINGS (LOSS)
ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS |
$ |
38 |
|
|
$ |
(432 |
) |
|
$ |
483 |
|
|
$ |
(1,133 |
) |
|
|
|
|
|
|
|
|
Earnings (loss)
per ordinary share attributable to Enstar: |
|
|
|
|
Basic |
$ |
2.46 |
|
|
$ |
(25.39 |
) |
|
$ |
30.26 |
|
|
$ |
(65.61 |
) |
Diluted |
$ |
2.43 |
|
|
$ |
(25.39 |
) |
|
$ |
30.05 |
|
|
$ |
(65.61 |
) |
Weighted average ordinary
shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
15,464,824 |
|
|
|
17,013,348 |
|
|
|
15,962,910 |
|
|
|
17,269,870 |
|
Diluted |
|
15,606,105 |
|
|
|
17,126,880 |
|
|
|
16,070,925 |
|
|
|
17,382,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENSTAR GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE
SHEETS
As of September 30, 2023 and December
31, 2022
|
September 30, 2023 |
|
December 31, 2022 |
|
(in millions of U.S. dollars, except share
data) |
ASSETS |
|
|
|
Short-term investments, trading, at fair value |
$ |
4 |
|
|
$ |
14 |
|
Short-term investments,
available-for-sale, at fair value (amortized cost: 2023 — $59;
2022 — $37) |
|
59 |
|
|
|
38 |
|
Fixed maturities, trading, at
fair value |
|
1,904 |
|
|
|
2,370 |
|
Fixed maturities,
available-for-sale, at fair value (amortized cost: 2023 —
$5,901; 2022 — $5,871; net of allowance: 2023 — $23; 2022 —
$33) |
|
5,267 |
|
|
|
5,223 |
|
Funds held - directly
managed |
|
2,678 |
|
|
|
2,040 |
|
Equities, at fair value (cost:
2023 — $831; 2022 — $1,357) |
|
881 |
|
|
|
1,250 |
|
Other investments, at fair
value (includes consolidated variable interest entity: 2023 - $63;
2022 - $3) |
|
3,637 |
|
|
|
3,296 |
|
Equity method investments |
|
409 |
|
|
|
397 |
|
Total investments |
|
14,839 |
|
|
|
14,628 |
|
Cash and cash equivalents |
|
497 |
|
|
|
822 |
|
Restricted cash and cash
equivalents |
|
387 |
|
|
|
508 |
|
Accrued interest
receivable |
|
74 |
|
|
|
72 |
|
Reinsurance balances
recoverable on paid and unpaid losses (net of allowance: 2023 —
$134; 2022 — $131) |
|
735 |
|
|
|
856 |
|
Reinsurance balances
recoverable on paid and unpaid losses, at fair value |
|
214 |
|
|
|
275 |
|
Insurance balances recoverable
(net of allowance: 2023 and 2022 — $5) |
|
173 |
|
|
|
177 |
|
Funds held by reinsured
companies |
|
2,871 |
|
|
|
3,582 |
|
Net deferred charge
assets |
|
763 |
|
|
|
658 |
|
Other assets |
|
478 |
|
|
|
576 |
|
TOTAL ASSETS |
$ |
21,031 |
|
|
$ |
22,154 |
|
LIABILITIES |
|
|
|
Losses and loss adjustment
expenses |
$ |
11,836 |
|
|
$ |
11,721 |
|
Losses and loss adjustment
expenses, at fair value |
|
1,108 |
|
|
|
1,286 |
|
Future policyholder
benefits |
|
— |
|
|
|
821 |
|
Defendant asbestos and
environmental liabilities |
|
572 |
|
|
|
607 |
|
Insurance and reinsurance
balances payable |
|
230 |
|
|
|
100 |
|
Debt obligations |
|
1,831 |
|
|
|
1,829 |
|
Other liabilities |
|
384 |
|
|
|
462 |
|
TOTAL LIABILITIES |
|
15,961 |
|
|
|
16,826 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
REDEEMABLE
NONCONTROLLING INTERESTS |
|
183 |
|
|
|
168 |
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
Ordinary Shares (par value $1
each, issued and outstanding 2023: 16,031,203; 2022:
17,588,050): |
|
|
|
Voting Ordinary Shares (issued and outstanding 2023: 16,031,203;
2022: 15,990,338) |
|
16 |
|
|
|
16 |
|
Non-voting convertible ordinary Series C Shares (issued and
outstanding 2023: 0; 2022: 1,192,941) |
|
— |
|
|
|
1 |
|
Non-voting convertible ordinary Series E Shares (issued and
outstanding 2023: 0; 2022: 404,771) |
|
— |
|
|
|
— |
|
Preferred Shares: |
|
|
|
Series C Preferred Shares (issued and held in treasury 2023 and
2022: 388,571) |
|
— |
|
|
|
— |
|
Series D Preferred Shares (issued and outstanding 2023 and 2022:
16,000; liquidation preference $400) |
|
400 |
|
|
|
400 |
|
Series E Preferred Shares (issued and outstanding 2023 and 2022:
4,400; liquidation preference $110) |
|
110 |
|
|
|
110 |
|
Treasury shares, at cost
(Series C Preferred shares 2023 and 2022: 388,571) |
|
(422 |
) |
|
|
(422 |
) |
Joint Share Ownership Plan
(voting ordinary shares, held in trust 2023 and 2022: 565,630) |
|
(1 |
) |
|
|
(1 |
) |
Additional paid-in
capital |
|
455 |
|
|
|
766 |
|
Accumulated other
comprehensive loss |
|
(570 |
) |
|
|
(302 |
) |
Retained earnings |
|
4,889 |
|
|
|
4,406 |
|
Total Enstar Shareholders’
Equity |
|
4,877 |
|
|
|
4,974 |
|
Noncontrolling interests |
|
10 |
|
|
|
186 |
|
TOTAL SHAREHOLDERS’
EQUITY |
|
4,887 |
|
|
|
5,160 |
|
TOTAL LIABILITIES, REDEEMABLE
NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY |
$ |
21,031 |
|
|
$ |
22,154 |
|
Non-GAAP Financial Measures |
In addition to our key financial measures
presented in accordance with GAAP, we present other non-GAAP
financial measures that we use to manage our business, compare our
performance against prior periods and against our peers, and as
performance measures in our incentive compensation program.
These non-GAAP financial measures provide an
additional view of our operational performance over the long-term
and provide the opportunity to analyze our results in a way that is
more aligned with the manner in which our management measures our
underlying performance.
The presentation of these non-GAAP financial
measures, which may be defined and calculated differently by other
companies, is used to enhance the understanding of certain aspects
of our financial performance. It is not meant to be considered in
isolation, superior to, or as a substitute for the directly
comparable financial measures prepared in accordance with GAAP.
Some of the adjustments reflected in our
non-GAAP measures are recurring items, such as the exclusion of
adjustments to net realized and unrealized (gains)/losses on fixed
maturity investments recognized in our income statement, the fair
value of certain of our loss reserve liabilities for which we have
elected the fair value option, and the amortization of fair value
adjustments.
Management makes these adjustments in assessing
our performance so that the changes in fair value due to interest
rate movements, which are applied to some but not all of our assets
and liabilities as a result of preexisting accounting elections, do
not impair comparability across reporting periods.
It is important for the readers of our periodic
filings to understand that these items will recur from period to
period.
However, we exclude these items for the purpose
of presenting a comparable view across reporting periods of the
impact of our underlying claims management and investments without
the effect of interest rate fluctuations on assets that we
anticipate to hold to maturity and non-cash changes to the fair
value of our reserves.
Similarly, our non-GAAP measures reflect the
exclusion of certain items that we deem to be nonrecurring, unusual
or infrequent when the nature of the charge or gain is such that it
is not reasonably likely that such item may recur within two years,
nor was there a similar charge or gain in the preceding two years.
This includes adjustments related to bargain purchase gains on
acquisitions of businesses, net gains or losses on sales of
subsidiaries, net assets of held for sale or disposed subsidiaries
classified as discontinued operations and other items that we
separately disclose.
The following table presents more information on
each non-GAAP measure. The results and GAAP reconciliations for
these measures are set forth further below.
Non-GAAP Measure |
|
Definition |
|
Purpose of Non-GAAP Measure over GAAP Measure |
Adjusted book value per ordinary share |
|
Total Enstar ordinary shareholders' equityDivided byNumber of
ordinary shares outstanding, adjusted for:-the ultimate effect of
any dilutive securities on the number of ordinary shares
outstanding |
|
Increases the number of ordinary shares to reflect the exercise of
equity awards granted but not yet vested as, over the long term,
this presents both management and investors with a more
economically accurate measure of the realizable value of
shareholder returns by factoring in the impact of share dilution.
We use this non-GAAP measure in our incentive compensation
program. |
Adjusted return on equity (%) |
|
Adjusted operating income (loss) attributable to Enstar ordinary
shareholders divided by adjusted opening Enstar ordinary
shareholder's equity |
|
Calculating the operating income (loss) as a percentage of our
adjusted opening Enstar ordinary shareholders' equity provides a
more consistent measure of the performance of our business by
enabling comparison between the financial periods presented. We
eliminate the impact of net realized and unrealized (gains) losses
on fixed maturities and funds-held directly managed and the change
in fair value of insurance contracts for which we have elected the
fair value option, as:
- we typically hold most of our fixed maturities until the
earlier of maturity or the time that they are used to fund any
settlement of related liabilities which are generally recorded at
cost; and
- removing the fair value option improves comparability since
there are limited acquisition years for which we elected the fair
value option.
Therefore, we believe that excluding their impact on our earnings
improves comparability of our core operational performance across
periods.We include fair value adjustments as non-GAAP adjustments
to the adjusted operating income (loss) attributable to Enstar
ordinary shareholders as they are non-cash charges that are not
reflective of the impact of our claims management strategies on our
loss portfolios. We eliminate the net gain (loss) on the
purchase and sales of subsidiaries and net earnings from
discontinued operations, as these items are not indicative of our
ongoing operations.We use this non-GAAP measure in our incentive
compensation program. |
Adjusted operating income
(loss) attributable to Enstar ordinary
shareholders(numerator) |
|
Net earnings (loss) attributable
to Enstar ordinary shareholders, adjusted for:-net realized and
unrealized (gains) losses on fixed maturities and funds
held-directly managed,-change in fair value of insurance contracts
for which we have elected the fair value option (1),-amortization
of fair value adjustments,-net gain/loss on purchase and sales of
subsidiaries (if any),-net earnings from discontinued operations
(if any),-tax effects of adjustments, and-adjustments attributable
to noncontrolling interests |
|
Adjusted opening Enstar ordinary shareholders' equity
(denominator) |
|
Opening Enstar ordinary shareholders' equity, less:-net unrealized
gains (losses) on fixed maturities and funds held-directly
managed,-fair value of insurance contracts for which we have
elected the fair value option (1),-fair value adjustments, and-net
assets of held for sale or disposed subsidiaries classified as
discontinued operations (if any) |
|
Adjusted run-off liability earnings (%) |
|
Adjusted PPD divided by average adjusted net loss reserves. |
|
Calculating the RLE as a percentage of our adjusted average net
loss reserves provides a more meaningful and comparable measurement
of the impact of our claims management strategies on our loss
portfolios across acquisition years and also to our overall
financial periods. We use this measure to evaluate the impact
of our claims management strategies because it provides visibility
into our ability to settle our claims obligations for amounts less
than our initial estimate at the point of acquiring the
obligations.The following components of periodic recurring net
incurred losses and LAE and net loss reserves are not considered
key components of our claims management performance for the
following reasons:
- Prior to the settlement of the contractual arrangements, the
results of our Legacy Underwriting segment were economically
transferred to a third party primarily through use of reinsurance
and a Capacity Lease Agreement(2); as such, the results were not a
relevant contribution to Adjusted RLE, which is designed to analyze
the impact of our claims management strategies;
- The results of our Assumed Life segment relate only to our
prior exposure to active property catastrophe business; as this
business was not in run-off, the results were not a relevant
contribution to Adjusted RLE;
- The change in fair value of insurance contracts for which we
have elected the fair value option(1) has been removed to support
comparability between the two acquisition years for which we
elected the fair value option in reserves assumed and the
acquisition years for which we did not make this election
(specifically, this election was only made in the 2017 and 2018
acquisition years and the election of such option is irrevocable);
and
- The amortization of fair value adjustments are non-cash charges
that obscure our trends on a consistent basis.
We include our performance in managing claims and estimated future
expenses on our defendant A&E liabilities because such
performance is relevant to assessing our claims management
strategies even though such liabilities are not included within the
loss reserves.We use this measure to assess the performance of our
claim strategies and part of the performance assessment of our past
acquisitions. |
Adjusted prior period
development(numerator) |
|
Prior period net incurred losses
and LAE, adjusted to: Remove: -Legacy Underwriting and Assumed Life
operations-amortization of fair value adjustments, -change in fair
value of insurance contracts for which we have elected the fair
value option (1), and Add:-the reduction/(increase) in estimates of
net ultimate liabilities and reduction in estimated future expenses
of our defendant A&E liabilities. |
|
Adjusted net loss reserves
(denominator) |
|
Net losses and LAE, adjusted to:Remove:-Legacy Underwriting and
Assumed Life net loss reserves-current period net loss reserves-net
fair value adjustments associated with the acquisition of
companies,-the fair value adjustments for contracts for which we
have elected the fair value option (1) andAdd:-net nominal
defendant A&E liability exposures and estimated future
expenses. |
|
Adjusted total investment return (%) |
|
Adjusted total investment return (dollars) recognized in earnings
for the applicable period divided by period average adjusted total
investable assets. |
|
Provides a
key measure of the return generated on the capital held in the
business and is reflective of our investment strategy. Provides a
consistent measure of investment returns as a percentage of all
assets generating investment returns. We adjust our investment
returns to eliminate the impact of the change in fair value of
fixed maturities (both credit spreads and interest rates), as we
typically hold most of these investments until the earlier of
maturity or used to fund any settlement of related liabilities
which are generally recorded at cost. |
Adjusted total investment
return ($)
(numerator) |
|
Total investment return
(dollars), adjusted for:-net realized and unrealized (gains) losses
on fixed maturities and funds held-directly managed; and-unrealized
(gains) losses on fixed maturities, AFS included within OCI, net of
reclassification adjustments and excluding foreign exchange. |
|
Adjusted average aggregate total investable assets
(denominator) |
|
Total average investable assets, adjusted for: -net unrealized
(gains) losses on fixed maturities, AFS included within AOCI-net
unrealized (gains) losses on fixed maturities, trading |
|
(1) Comprises the discount rate and risk margin components.(2)
The reinsurance contractual arrangements (including the Capacity
Lease Agreement) described in Note 5 to our consolidated financial
statements in our Annual Report on Form 10-K for the year ended
December 31, 2022 were settled during the second quarter of 2023.
As a result of the settlement, we do not expect to record any
transactions in the Legacy Underwriting segment in 2023.
Reconciliation of GAAP to Non-GAAP Measures |
The table below presents a reconciliation of
BVPS to Adjusted BVPS*:
|
|
September 30, 2023 |
|
December 31, 2022 |
|
|
Equity (1) |
|
|
Ordinary Shares |
|
|
Per Share Amount |
|
Equity (1) (2) |
|
|
Ordinary Shares |
|
|
Per Share Amount |
|
|
(in millions of U.S. dollars, except share and per share
data) |
Book value per ordinary share |
|
$ |
4,367 |
|
|
|
15,465,573 |
|
|
$ |
282.37 |
|
|
$ |
4,464 |
|
|
|
17,022,420 |
|
|
$ |
262.24 |
|
Non-GAAP adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation plans |
|
|
|
|
298,932 |
|
|
|
|
|
|
|
218,171 |
|
|
|
Adjusted book value
per ordinary share* |
|
$ |
4,367 |
|
|
|
15,764,505 |
|
|
$ |
277.01 |
|
|
$ |
4,464 |
|
|
|
17,240,591 |
|
|
$ |
258.92 |
|
(1) Equity comprises Enstar ordinary
shareholders' equity, which is calculated as Enstar shareholders'
equity less preferred shares ($510 million) prior to any non-GAAP
adjustments.(2) Enstar ordinary shareholders’ equity as of December
31, 2022 has been retrospectively adjusted for the impact of
adopting ASU 2018-12. Refer to Note 8 to our condensed consolidated
financial statements in our Quarterly Report on Form 10-Q for the
period ended September 30, 2023 for further information.
The table below presents a reconciliation of ROE
to Adjusted ROE* and Annualized ROE to Annualized Adjusted
ROE*:
|
Three Months Ended |
|
|
|
September 30, 2023 |
|
September 30, 2022 |
|
|
|
Net earnings (loss) (1) |
|
Opening equity (1) |
|
(Adj) ROE |
|
Annualized(Adj) ROE |
|
Net earnings (loss) (1) |
|
Opening equity (1) |
|
(Adj) ROE |
|
|
Annualized (Adj) ROE |
|
|
(in millions of U.S. dollars) |
|
|
Net earnings (loss)/Opening equity/ROE/Annualized
ROE (1) |
$ |
38 |
|
|
$ |
4,403 |
|
|
0.9 |
% |
|
3.5 |
% |
|
$ |
(432 |
) |
|
$ |
4,619 |
|
|
(9.4 |
)% |
|
(37.4 |
)% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized losses on fixed maturities, AFS (2) / Net unrealized
losses on fixed maturities, AFS (3) |
|
12 |
|
|
|
550 |
|
|
|
|
|
|
|
23 |
|
|
|
574 |
|
|
|
|
|
|
|
Net unrealized losses on fixed maturities, trading (2) / Net
unrealized losses on fixed maturities, trading (3) |
|
22 |
|
|
|
337 |
|
|
|
|
|
|
|
157 |
|
|
|
329 |
|
|
|
|
|
|
|
Net realized and unrealized losses on funds held - directly managed
(2) / Net unrealized losses on funds held - directly managed
(3) |
|
46 |
|
|
|
166 |
|
|
|
|
|
|
|
238 |
|
|
|
342 |
|
|
|
|
|
|
|
Change in fair value of insurance contracts for which we have
elected the fair value option / Fair value of insurance contracts
for which we have elected the fair value option (4) |
|
12 |
|
|
|
(312 |
) |
|
|
|
|
|
|
(82 |
) |
|
|
(239 |
) |
|
|
|
|
|
|
Amortization of fair value adjustments / Fair value
adjustments |
|
4 |
|
|
|
(116 |
) |
|
|
|
|
|
|
4 |
|
|
|
(99 |
) |
|
|
|
|
|
|
Tax effects of adjustments (5) |
|
(6 |
) |
|
|
— |
|
|
|
|
|
|
|
(2 |
) |
|
|
— |
|
|
|
|
|
|
|
Adjustments attributable to noncontrolling interests (6) |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
(42 |
) |
|
|
— |
|
|
|
|
|
|
|
Adjusted operating
income (loss)/Adjusted opening equity/Adjusted ROE/Annualized
adjusted ROE* |
$ |
128 |
|
|
$ |
5,028 |
|
|
2.5 |
% |
|
10.2 |
% |
|
$ |
(136 |
) |
|
$ |
5,526 |
|
|
(2.5 |
)% |
|
(9.8 |
)% |
(1) Net earnings (loss) comprises net earnings
(loss) attributable to Enstar ordinary shareholders, prior to any
non-GAAP adjustments. Opening equity comprises Enstar ordinary
shareholders' equity, which is calculated as opening Enstar
shareholders' equity less preferred shares ($510 million), prior to
any non-GAAP adjustments.(2) Net realized gains (losses) on fixed
maturities, AFS and funds held - directly managed are included in
net realized gains (losses) in our condensed consolidated
statements of earnings. Net unrealized gains (losses) on fixed
maturities, trading and funds held - directly managed are included
in net unrealized gains (losses) in our condensed consolidated
statements of earnings.(3) Our fixed maturities are held directly
on our balance sheet and also within the "Funds held - directly
managed" balance.(4) Comprises the discount rate and risk margin
components.(5) Represents an aggregation of the tax expense or
benefit associated with the specific country to which the pre-tax
adjustment relates, calculated at the applicable jurisdictional tax
rate.(6) Represents the impact of the adjustments on the net
earnings (loss) attributable to noncontrolling interests associated
with the specific subsidiaries to which the adjustments
relate.*Non-GAAP measure.
|
Nine Months Ended |
|
|
|
September 30, 2023 |
|
September 30, 2022 |
|
|
|
Net earnings (loss) (1) |
|
Opening equity (1)(2) |
|
(Adj) ROE |
|
Annualized(Adj) ROE |
|
Net earnings (loss) (1) |
|
Opening equity (1) |
|
(Adj) ROE |
|
|
Annualized (Adj) ROE |
|
|
(in millions of U.S. dollars) |
|
|
Net earnings (loss)/Opening equity/ROE/Annualized
ROE (1) |
$ |
483 |
|
|
$ |
4,464 |
|
|
10.8 |
% |
|
14.4 |
% |
|
$ |
(1,133 |
) |
|
$ |
5,813 |
|
|
(19.5 |
)% |
|
(26.0 |
)% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized losses on fixed maturities, AFS (3) / Net unrealized
losses on fixed maturities, AFS (4) |
|
55 |
|
|
|
647 |
|
|
|
|
|
|
|
88 |
|
|
|
36 |
|
|
|
|
|
|
|
Net unrealized losses on fixed maturities, trading (3) / Net
unrealized losses on fixed maturities, trading (4) |
|
24 |
|
|
|
400 |
|
|
|
|
|
|
|
556 |
|
|
|
(134 |
) |
|
|
|
|
|
|
Net realized and unrealized losses on funds held - directly managed
(3) / Net unrealized losses on funds held - directly managed
(4) |
|
49 |
|
|
|
780 |
|
|
|
|
|
|
|
517 |
|
|
|
9 |
|
|
|
|
|
|
|
Change in fair value of insurance contracts for which we have
elected the fair value option / Fair value of insurance contracts
for which we have elected the fair value option (5) |
|
24 |
|
|
|
(294 |
) |
|
|
|
|
|
|
(228 |
) |
|
|
(107 |
) |
|
|
|
|
|
|
Amortization of fair value adjustments / Fair value
adjustments |
|
13 |
|
|
|
(124 |
) |
|
|
|
|
|
|
11 |
|
|
|
(106 |
) |
|
|
|
|
|
|
Tax effects of adjustments (6) |
|
(12 |
) |
|
|
— |
|
|
|
|
|
|
|
(6 |
) |
|
|
— |
|
|
|
|
|
|
|
Adjustments attributable to noncontrolling interests (7) |
|
(2 |
) |
|
|
— |
|
|
|
|
|
|
|
(90 |
) |
|
|
— |
|
|
|
|
|
|
|
Adjusted operating
income (loss)/Adjusted opening equity/Adjusted ROE/Annualized
adjusted ROE* |
$ |
634 |
|
|
$ |
5,873 |
|
|
10.8 |
% |
|
14.4 |
% |
|
$ |
(285 |
) |
|
$ |
5,511 |
|
|
(5.2 |
)% |
|
(6.9 |
)% |
(1) Net earnings (loss) comprises net earnings
(loss) attributable to Enstar ordinary shareholders, prior to any
non-GAAP adjustments. Opening equity comprises Enstar ordinary
shareholders' equity, which is calculated as opening Enstar
shareholders' equity less preferred shares ($510 million), prior to
any non-GAAP adjustments.(2) Enstar ordinary shareholders’ equity
as of December 31, 2022 has been retrospectively adjusted for the
impact of adopting ASU 2018-12. Refer to Note 8 to our condensed
consolidated financial statements for further information.(3) Net
realized gains (losses) on fixed maturities, AFS and funds held -
directly managed are included in net realized gains (losses) in our
condensed consolidated statements of earnings. Net unrealized gains
(losses) on fixed maturities, trading and funds held - directly
managed are included in net unrealized gains (losses) in our
condensed consolidated statements of earnings.(4) Our fixed
maturities are held directly on our balance sheet and also within
the "Funds held - directly managed" balance.(5) Comprises the
discount rate and risk margin components.(6) Represents an
aggregation of the tax expense or benefit associated with the
specific country to which the pre-tax adjustment relates,
calculated at the applicable jurisdictional tax rate.(7) Represents
the impact of the adjustments on the net earnings (loss)
attributable to noncontrolling interests associated with the
specific subsidiaries to which the adjustments relate.*Non-GAAP
measure.
The tables below present a reconciliation of RLE
to Adjusted RLE* and Annualized RLE to Annualized Adjusted
RLE*:
|
|
Three Months Ended |
|
As of |
|
Three Months Ended |
|
|
September 30, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2023 |
|
September 30, 2023 |
|
|
RLE / PPD |
|
Net loss reserves |
|
Net loss reserves |
|
Average net loss reserves |
|
RLE % |
|
Annualized RLE % |
|
|
(in millions of U.S. dollars) |
PPD/net loss reserves/RLE/Annualized RLE |
|
$ |
15 |
|
$ |
12,155 |
|
|
$ |
12,939 |
|
|
$ |
12,547 |
|
|
0.1 |
% |
|
0.5 |
% |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss reserves - current period |
|
|
— |
|
|
(15 |
) |
|
|
(11 |
) |
|
|
(13 |
) |
|
|
|
|
Amortization of fair value adjustments / Net fair value adjustments
associated with the acquisition of companies |
|
|
4 |
|
|
112 |
|
|
|
116 |
|
|
|
114 |
|
|
|
|
|
Changes in fair value - fair value option / Net fair value
adjustments for contracts for which we have elected the fair value
option (1) |
|
|
12 |
|
|
292 |
|
|
|
312 |
|
|
|
302 |
|
|
|
|
|
Change in estimate of net ultimate liabilities - defendant A&E
/ Net nominal defendant A&E liabilities |
|
|
— |
|
|
533 |
|
|
|
550 |
|
|
|
542 |
|
|
|
|
|
Reduction in estimated future expenses - defendant A&E /
Estimated future expenses - defendant A&E |
|
|
1 |
|
|
33 |
|
|
|
34 |
|
|
|
33 |
|
|
|
|
|
Adjusted PPD/Adjusted
net loss reserves/ Adjusted RLE/Annualized Adjusted
RLE* |
|
$ |
32 |
|
$ |
13,110 |
|
|
$ |
13,940 |
|
|
$ |
13,525 |
|
|
0.2 |
% |
|
0.9 |
% |
|
|
Three Months Ended |
|
As of |
|
Three Months Ended |
|
|
September 30, 2022 |
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2022 |
|
September 30, 2022 |
|
|
RLE / PPD |
|
Net loss reserves |
|
Net loss reserves |
|
Average net loss reserves |
|
RLE % |
|
Annualized RLE % |
|
|
(in millions of U.S. dollars) |
|
|
PPD/net loss reserves/RLE/Annualized RLE |
|
$ |
141 |
|
|
$ |
11,819 |
|
|
$ |
12,524 |
|
|
$ |
12,172 |
|
|
1.2 |
% |
|
4.6 |
% |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss reserves - current period |
|
|
— |
|
|
|
(36 |
) |
|
|
(25 |
) |
|
|
(31 |
) |
|
|
|
|
Assumed Life |
|
|
— |
|
|
|
(141 |
) |
|
|
(149 |
) |
|
|
(145 |
) |
|
|
|
|
Legacy Underwriting |
|
|
(2 |
) |
|
|
(137 |
) |
|
|
(140 |
) |
|
|
(139 |
) |
|
|
|
|
Amortization of fair value adjustments / Net fair value adjustments
associated with the acquisition of companies |
|
|
4 |
|
|
|
95 |
|
|
|
99 |
|
|
|
97 |
|
|
|
|
|
Changes in fair value - fair value option / Net fair value
adjustments for contracts for which we have elected the fair value
option (1) |
|
|
(82 |
) |
|
|
305 |
|
|
|
239 |
|
|
|
272 |
|
|
|
|
|
Change in estimate of net ultimate liabilities - defendant A&E
/ Net nominal defendant A&E liabilities |
|
|
— |
|
|
|
572 |
|
|
|
574 |
|
|
|
573 |
|
|
|
|
|
Reduction in estimated future expenses - defendant A&E /
Estimated future expenses - defendant A&E |
|
|
— |
|
|
|
35 |
|
|
|
36 |
|
|
|
36 |
|
|
|
|
|
Adjusted PPD/Adjusted
net loss reserves/Adjusted RLE/Annualized Adjusted
RLE* |
|
$ |
61 |
|
|
$ |
12,512 |
|
|
$ |
13,158 |
|
|
$ |
12,835 |
|
|
0.5 |
% |
|
1.9 |
% |
(1) Comprises the discount rate and risk margin
components.*Non-GAAP measure.
|
|
Nine Months Ended |
|
As of |
|
Nine Months Ended |
|
|
September 30, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2023 |
|
September 30, 2023 |
|
|
RLE / PPD |
|
Net loss reserves |
|
Net loss reserves |
|
Average net loss reserves |
|
RLE % |
|
Annualized RLE % |
|
|
(in millions of U.S. dollars) |
PPD/net loss reserves/RLE/Annualized RLE |
|
$ |
35 |
|
$ |
12,155 |
|
|
$ |
12,011 |
|
|
$ |
12,083 |
|
|
0.3 |
% |
|
0.4 |
% |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss reserves - current period |
|
|
— |
|
|
(15 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
|
|
Legacy Underwriting |
|
|
— |
|
|
— |
|
|
|
(139 |
) |
|
|
(69 |
) |
|
|
|
|
Amortization of fair value adjustments / Net fair value adjustments
associated with the acquisition of companies |
|
|
13 |
|
|
112 |
|
|
|
124 |
|
|
|
118 |
|
|
|
|
|
Changes in fair value - fair value option / Net fair value
adjustments for contracts for which we have elected the fair value
option (1) |
|
|
24 |
|
|
292 |
|
|
|
294 |
|
|
|
293 |
|
|
|
|
|
Change in estimate of net ultimate liabilities - defendant A&E
/ Net nominal defendant A&E liabilities |
|
|
2 |
|
|
533 |
|
|
|
572 |
|
|
|
553 |
|
|
|
|
|
Reduction in estimated future expenses - defendant A&E /
Estimated future expenses - defendant A&E |
|
|
2 |
|
|
33 |
|
|
|
35 |
|
|
|
34 |
|
|
|
|
|
Adjusted PPD/Adjusted
net loss reserves/Adjusted RLE/Annualized Adjusted
RLE* |
|
$ |
76 |
|
$ |
13,110 |
|
|
$ |
12,897 |
|
|
$ |
13,004 |
|
|
0.6 |
% |
|
0.8 |
% |
|
|
Nine Months Ended |
|
As of |
|
Nine Months Ended |
|
|
September 30, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
September 30, 2022 |
|
September 30, 2022 |
|
|
RLE / PPD |
|
Net loss reserves |
|
Net loss reserves |
|
Average net loss reserves |
|
RLE % |
|
Annualized RLE % |
|
|
(in millions of U.S. dollars) |
PPD/net loss reserves/RLE/Annualized RLE |
|
$ |
476 |
|
|
$ |
11,819 |
|
|
$ |
11,926 |
|
|
$ |
11,873 |
|
|
4.0 |
% |
|
5.3 |
% |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss reserves - current period |
|
|
— |
|
|
|
(36 |
) |
|
|
— |
|
|
|
(18 |
) |
|
|
|
|
Assumed Life |
|
|
(29 |
) |
|
|
(141 |
) |
|
|
(181 |
) |
|
|
(161 |
) |
|
|
|
|
Legacy Underwriting |
|
|
2 |
|
|
|
(137 |
) |
|
|
(153 |
) |
|
|
(146 |
) |
|
|
|
|
Amortization of fair value adjustments / Net fair value adjustments
associated with the acquisition of companies |
|
|
11 |
|
|
|
95 |
|
|
|
106 |
|
|
|
101 |
|
|
|
|
|
Changes in fair value - fair value option / Net fair value
adjustments for contracts for which we have elected the fair value
option (1) |
|
|
(228 |
) |
|
|
305 |
|
|
|
107 |
|
|
|
206 |
|
|
|
|
|
Change in estimate of net ultimate liabilities - defendant A&E
/ Net nominal defendant A&E liabilities |
|
|
4 |
|
|
|
572 |
|
|
|
574 |
|
|
|
573 |
|
|
|
|
|
Reduction in estimated future expenses - defendant A&E /
Estimated future expenses - defendant A&E |
|
$ |
1 |
|
|
$ |
35 |
|
|
$ |
36 |
|
|
$ |
36 |
|
|
|
|
|
Adjusted PPD/Adjusted
net loss reserves/Adjusted RLE/Annualized Adjusted
RLE* |
|
$ |
237 |
|
|
$ |
12,512 |
|
|
$ |
12,415 |
|
|
$ |
12,464 |
|
|
1.9 |
% |
|
2.5 |
% |
(1) Comprises the discount rate and risk margin
components.*Non-GAAP measure.
The tables below present a reconciliation of our Annualized TIR
to our Annualized Adjusted TIR*:
|
Three Months Ended |
|
Nine months ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
(in millions of U.S. dollars) |
Net investment income |
$ |
143 |
|
|
$ |
116 |
|
|
$ |
471 |
|
|
$ |
302 |
|
Net realized
losses |
|
|
|
|
|
|
|
Fixed maturities, AFS |
|
(12 |
) |
|
|
(23 |
) |
|
|
(55 |
) |
|
|
(88 |
) |
Funds held - directly managed |
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
Net losses recognized on equity securities sold during the
period |
|
— |
|
|
|
(11 |
) |
|
|
23 |
|
|
|
(21 |
) |
Investment derivatives |
|
(2 |
) |
|
|
(2 |
) |
|
|
6 |
|
|
|
(2 |
) |
Net realized losses |
|
(14 |
) |
|
|
(36 |
) |
|
|
(33 |
) |
|
|
(111 |
) |
Net unrealized
(losses) gains |
|
|
|
|
|
|
|
Fixed maturities, trading |
|
(22 |
) |
|
|
(157 |
) |
|
|
(24 |
) |
|
|
(556 |
) |
Funds held – directly managed |
|
(46 |
) |
|
|
(238 |
) |
|
|
(42 |
) |
|
|
(517 |
) |
Net unrealized gains (losses) recognized on equity securities still
held at the reporting date |
|
17 |
|
|
|
(82 |
) |
|
|
86 |
|
|
|
(284 |
) |
Other investments |
|
68 |
|
|
|
(65 |
) |
|
|
180 |
|
|
|
(141 |
) |
Investment derivatives |
|
3 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
(20 |
) |
Net unrealized gains
(losses) |
|
20 |
|
|
|
(546 |
) |
|
|
200 |
|
|
|
(1,518 |
) |
(Losses) earnings from
equity method investments |
|
(3 |
) |
|
|
(20 |
) |
|
|
22 |
|
|
|
12 |
|
Other comprehensive
income: |
|
|
|
|
|
|
|
Unrealized (losses)
gains on fixed maturities, AFS, net of reclassification adjustments
excluding foreign exchange |
|
(63 |
) |
|
|
(175 |
) |
|
|
2 |
|
|
|
(657 |
) |
TIR ($) |
$ |
83 |
|
|
$ |
(661 |
) |
|
$ |
662 |
|
|
$ |
(1,972 |
) |
|
|
|
|
|
|
|
|
Non-GAAP
adjustment: |
|
|
|
|
|
|
|
Net realized and unrealized
losses on fixed maturities, AFS and trading, and funds
held-directly managed |
|
80 |
|
|
|
418 |
|
|
|
128 |
|
|
|
1,161 |
|
Unrealized losses (gains) on
fixed maturities, AFS, net of reclassification adjustments
excluding foreign exchange |
|
63 |
|
|
|
175 |
|
|
$ |
(2 |
) |
|
$ |
657 |
|
Adjusted TIR
($)* |
$ |
226 |
|
|
$ |
(68 |
) |
|
$ |
788 |
|
|
$ |
(154 |
) |
|
|
|
|
|
|
|
|
Total
investments |
$ |
14,839 |
|
|
$ |
14,226 |
|
|
$ |
14,839 |
|
|
$ |
14,226 |
|
Cash and cash equivalents,
including restricted cash and cash equivalents |
|
884 |
|
|
|
1,357 |
|
|
|
884 |
|
|
|
1,357 |
|
Funds held by reinsured
companies |
|
2,871 |
|
|
|
3,727 |
|
|
|
2,871 |
|
|
|
3,727 |
|
Total investable
assets |
$ |
18,594 |
|
|
$ |
19,310 |
|
|
$ |
18,594 |
|
|
$ |
19,310 |
|
|
|
|
|
|
|
|
|
Average aggregate invested
assets, at fair value (1) |
|
18,951 |
|
|
|
20,140 |
|
|
|
18,684 |
|
|
|
20,192 |
|
Annualized TIR
% (2) |
|
1.8 |
% |
|
(13.1 |
)% |
|
|
4.7 |
% |
|
(13.0 |
)% |
Non-GAAP
adjustment: |
|
|
|
|
|
|
|
Net unrealized losses on fixed
maturities, AFS included within AOCI and net unrealized losses on
fixed maturities, trading and funds held - directly managed |
|
1,222 |
|
|
|
1,926 |
|
|
|
1,222 |
|
|
|
1,926 |
|
Adjusted investable
assets* |
$ |
19,816 |
|
|
$ |
21,236 |
|
|
$ |
19,816 |
|
|
$ |
21,236 |
|
|
|
|
|
|
|
|
|
Adjusted average aggregate
invested assets, at fair value* (3) |
$ |
20,089 |
|
|
$ |
21,728 |
|
|
$ |
19,955 |
|
|
$ |
21,093 |
|
Annualized adjusted
TIR %* (4) |
|
4.5 |
% |
|
(1.3 |
)% |
|
|
5.3 |
% |
|
(1.0 |
)% |
(1) This amount is a two and four period average
of the total investable assets for the three and nine months ended
September 30, 2023 and 2022, respectively, as presented above, and
is comprised of amounts disclosed in our quarterly and annual U.S.
GAAP consolidated financial statements.(2) Annualized TIR % is
calculated by dividing the annualized TIR ($) by average aggregate
invested assets, at fair value.(3) This amount is a two and four
period average of the adjusted investable assets* for the three and
nine months ended September 30, 2023 and 2022, respectively, as
presented above.(4) Annualized adjusted TIR %* is calculated by
dividing the annualized adjusted TIR* ($) by adjusted average
aggregate invested assets, at fair value*.*Non-GAAP measure.
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