Net Income Attributable to Enstar Ordinary Shareholders of $119 Million; Return on Equity of 2.4% Primarily Driven by Positive Investment Results Growth in Book Value per Ordinary Share of 1.7% to $349.41 (Fully Diluted* $341.53) Announced $400 Million Loss Portfolio Transaction with SiriusPoint, Subsequent to Quarter End Bermuda-based Wholly Owned Subsidiary, Cavello Bay Reinsurance Limited Assigned Insurer Financial Strength Rating of ‘A' with Stable Outlook by S&P Global Ratings * Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure. HAMILTON, Bermuda, May 02, 2024 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ:ESGR) today announced financial results for the first quarter 2024. First Quarter 2024 Highlights:           Net income attributable to Enstar ordinary shareholders of $119 million, or $8.02 per diluted ordinary share, compared to $424 million, or $24.79 per diluted ordinary share, for the three months ended March 31, 2023. Return on equity ("ROE") of 2.4% and Adjusted ROE* of 2.6% for the quarter compared to ROE and Adjusted ROE* of 9.5% and 6.8%, respectively, in the first quarter of 2023. The prior-year period's ROE and Adjusted ROE* included a $194 million net gain recognized on the novation of Enhanzed Re reinsurance closed block of life annuity policies. Year-over-year ROE performance was also impacted by a decline in the gain from fair value changes in trading securities, funds held and other investments. First quarter 2024 Adjusted ROE* also excludes $25 million of net realized losses on our fixed maturities and fair value changes in trading securities and funds held. Run-off liability earnings ("RLE") of $24 million for the quarter (compared to RLE of $10 million in the prior-year period) was driven by favorable development on our professional indemnity/directors and officers and asbestos lines of business, partially offset by adverse development on our general casualty and environmental lines of business. Annualized total investment return ("TIR") of 4.9% and Annualized Adjusted TIR* of 5.5% for the quarter compared to Annualized TIR and Annualized Adjusted TIR* of 9.5% and 6.3%, respectively, for the three months ended March 31, 2023. Recognized investment results in the first quarter of 2024 benefited from net investment income of $160 million and fair value change in other investments, including equities, of $104 million, partially offset by net realized and unrealized losses on our fixed maturities, including other comprehensive income ("OCI"), of $37 million. Enstar's Bermuda-based wholly owned subsidiary Cavello Bay Reinsurance Limited was assigned an Insurer Financial Strength Rating of ‘A' with stable outlook by S&P Global Ratings. Announced $400 million Loss Portfolio Transfer ("LPT") agreement with SiriusPoint subsequent to quarter-end, to reinsure a portfolio of workers' compensation business covering underwriting years 2018 to 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. Dominic Silvester, Enstar CEO, said:   "Our momentum continues with a growth in book value of 1.7% in the first quarter, driven by solid performance in our investment portfolio and another quarter of positive Run-Off Liability Earnings. We were pleased to execute a $400 million Loss Portfolio Transfer with SiriusPoint earlier this week. The transaction expands our Workers' Compensation portfolio, which is a line of business where we have a wealth of experience and have had significant success. We look forward to taking advantage of opportunities across our business throughout the year, as we stay focused on meeting the growing risk management needs of the (re)insurance sector while creating long-term value for our shareholders." 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       March 31,   $ / pp / bp Change     2024       2023       (in millions of U.S. dollars, except per share data) Key Earnings Metrics           Net income attributable to Enstar ordinary shareholders $ 119     $ 424     $ (305 ) Adjusted operating income attributable to Enstar ordinary shareholders* $ 141     $ 401     $ (260 ) ROE   2.4 %     9.5 %   (7.1)pp Adjusted ROE*   2.6 %     6.8 %   (4.2)pp             Key Run-off Metrics           Prior period development $ 24     $ 10     $ 14   Adjusted prior period development* $ 24     $ 36     $ (12 ) RLE   0.2 %     0.1 %   0.1pp Adjusted RLE*   0.2 %     0.3 %   (0.1)pp             Key Investment Return Metrics           Total investable assets $ 17,677     $ 17,773     $ (96 ) Adjusted total investable assets* $ 18,466     $ 18,767     $ (301 ) Annualized investment book yield   4.36 %     3.58 %   78bp TIR   4.9 %     9.5 %   (4.6)pp Adjusted TIR*   5.5 %     6.3 %   (0.8)pp               As of     Key Shareholder Metrics March 31, 2024   December 31, 2023     Book value per ordinary share $ 349.41     $ 343.45     $ 5.96   Fully diluted book value per ordinary share* $ 341.53     $ 336.72     $ 4.81                           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 Months Ended March 31, 2024 and 2023   Run-off Segment The following is a discussion and analysis of the results of operations for our Run-off segment.     Three Months Ended         March 31,   $ Change       2024       2023         (in millions of U.S. dollars) Net premiums earned   $ 11     $ 8     $ 3   Other income:             Reduction in estimates of net ultimate defendant A&E liabilities - prior periods     —       2       (2 ) Reduction in estimated future defendant A&E expenses     1       1       —   All other income     2       2       —   Total other income     3       5       (2 ) Total revenues     14       13       1                 EXPENSES             Net incurred losses and LAE:             Current period     5       10       (5 ) Prior periods:             Reduction in estimates of net ultimate losses     (6 )     (15 )     9   Reduction in provisions for ULAE     (17 )     (18 )     1   Total prior periods     (23 )     (33 )     10   Total net incurred losses and LAE     (18 )     (23 )     5   Acquisition costs     1       2       (1 ) General and administrative expenses     42       39       3   Total expenses     25       18       7                 SEGMENT NET LOSS   $ (11 )   $ (5 )   $ (6 )                           Overall Results Three Months Ended March 31, 2024 versus 2023: Net loss from our Run-off segment was $11 million compared to net loss of $5 million in the comparative quarter, primarily due to: A $10 million decrease in favorable PPD in the current quarter, mainly driven by a $9 million increase in the reduction in estimates of net ultimate losses in the comparative quarter. During the first quarter of 2024, the net favorable development was primarily due to favorable development on our Professional Indemnity/Directors and Officers line of business of $29 million driven by favorable claims experience and favorable development on our Asbestos line of business of $24 million resulting from actuarial analysis. These were partially offset by adverse development on our General Casualty line of business of $18 million driven by adverse claims experience and adverse development on our Environmental line of business of $25 million due to results from actuarial reviews in the period. In comparison, during the first quarter of 2023 we recognized favorable development of $11 million on our workers' compensation line of business as a result of favorable claims experience, most notably in the 2021 acquisition year. A net favorable change in current period net incurred losses and LAE and acquisition costs of $6 million. Investments Segment The following is a discussion and analysis of the results of operations for our Investments segment.   Three Months Ended       March 31,   $ Change     2024       2023       (in millions of U.S. dollars) REVENUES           Net investment income:           Fixed maturities $ 142     $ 131     $ 11   Cash and restricted cash   8       5       3   Other investments, including equities   20       24       (4 ) Less: Investment expenses   (10 )     (4 )     (6 ) Total net investment income   160       156       4   Net realized losses:           Fixed maturities   (6 )     (18 )     12   Total net realized losses   (6 )     (18 )     12   Fair value changes in:           Fixed maturities, trading   (19 )     59       (78 ) Other investments, including equities   104       147       (43 ) Total fair value changes in trading securities and other investments   85       206       (121 ) Total revenues   239       344       (105 )             EXPENSES           General and administrative expenses   10       11       (1 ) Total expenses   10       11       (1 )             (Loss) income from equity method investments   (5 )     11       (16 )             SEGMENT NET INCOME $ 224     $ 344     $ (120 )                         Overall Results Three Months Ended March 31, 2024 versus 2023: Net income from our Investments segment was $224 million for the three months ended March 31, 2024 compared to net income of $344 million for the three months ended March 31, 2023. The variance of $120 million was primarily due to: a decrease in the gain from fair value changes in fixed maturities of $78 million, primarily as a result of increases in interest rates across U.S., U.K. and European markets in the current period, in comparison to decreases in interest rates in the comparative period; fair value change in other investments, including equities, of $104 million, compared to $147 million in the comparative period. The decrease of $43 million was primarily driven by: a decrease in gain in the fair value change in other investments of $18 million for the three months ended March 31, 2024, primarily driven by an unfavorable variance in the fair value change of an embedded derivative in relation to the Aspen LPT, partially offset by increases in the fair value change related to CLO equity funds, private equity funds, real estate funds and high yield bond and loan funds relative to the comparative quarter; and a decrease in the gain in fair value changes in equities of $16 million for the three months ended March 31, 2024, largely as a result of the reduced amount of equities within the investment portfolio relative to the comparative quarter. an increase in our net investment income of $4 million, which is primarily due to the reinvestment of fixed maturities at higher yields, deployment of consideration received from ...