On this page of StockholderLetter.com we present the latest annual shareholder letter from Enstar Group LTD — ticker symbol ESGR. Reading current and past ESGR letters to shareholders can bring important insights into the investment thesis.
ENSTAR GROUP
ANNUAL
REPORT
2023
REALISING VALUE FOR 30 YEARS
Financial Results
(in millions of U.S. dollars, except ratios and per share data)


2023
2022
Return on equity   
Adjusted return on equity*  
24.2%
18.8%
-15.6%
-1.1%
1.1%
1.8%
6.3%
3.9%
3.9%
3.6%
7.2%
5.3%
-9.0%
-0.2%
2.0%
3.6%
$1,082
$(906)
$502
$343.45
$336.72
$262.24
$258.92
$329.20
$323.43
Run-off liability earnings  
Adjusted run-off liability earnings*  
Total investment return   
Adjusted total investment return*  
Net income (loss) attributable to Enstar ordinary shareholders
Book value per ordinary share   
Fully diluted book value per share*  
*Non-GAAP financial measure, refer to pages 69 - 75 of our Annual Report on Form 10-K for the year ended December 31, 2023 for explanatory
notes and a reconciliation to the most directly comparable GAAP measure for the years ended December 31, 2023, 2022 and 2021.
2021
7.9%
10.1%
Annual CEO letter from Dominic Silvester, Chief Executive Officer
Dear Shareholders,
As we marked our 30th anniversary in 2023, we look back at how far the sector has
come during that time and our pride in the role we have played in positioning legacy
as a mainstream and crucial part of the re/insurance value chain.
Today, we deploy our specialist underwriting skills to help our global partners execute
strategic, risk transfer transactions. We continue to demonstrate resilience through business
cycles, and our differentiated business model, innovative legacy solutions, robust risk
management and capital strength provide us with confidence in our long-term prospects.
We entered 2024 in an unrivalled position to continue to meet the growing risk management
needs of the re/insurance sector, creating long-term value for our shareholders. I believe
Enstar is uniquely positioned to provide a wide variety of solutions from an estimated
$1 trillion1 in global insurance opportunities.
Strong Performance in 2023
We finished 2023 strong, recording full year net income of $1.1 billion attributable to ordinary
shareholders, with a Return on Equity (ROE) of 24.2% and an adjusted ROE* of 18.8%. We
generated Book Value per Share (BVPS) growth of 31.0% and fully diluted BVPS* growth of 30.0%.
These positive results were driven by:
    $1.35 billion of Total Investment Return (or TIR) ($1.06 billion on an adjusted basis*).

Celebrating 30 years,
Enstar has grown into
a global leader. We are
proud of the role we
have played in shaping
legacy as a vital part of
the broader insurance
value chain.

From humble beginnings in 1993 with four employees and one office, we have grown into the
world   s largest standalone run-off consolidator and a market-leading global re/insurance group.
Our products and solutions have evolved to cater to a much wider potential marketplace.
Dominic Silvester,
Chief Executive
Officer
    $131 million of Run-off Liability Earnings (or RLE), our measure of the income arising from
our core activities. ($227 million on an adjusted basis*).
    A $194 million non-recurring gain from the now-completed wind-up of Enhanzed Re.
    A $205 million tax benefit from the enactment of the Bermuda Corporate Income Tax Act 2023.
Our success is underscored by our ability to deliver better outcomes through our claims
management strategy, which we call the    Enstar Effect   . This contributed to our 17th
consecutive year of favourable RLE since going public in 2007     an enviable track record.
Legacy is a long-term business, and therefore, successful performance should be viewed over
the medium to long term which more closely tracks the lifespan of a typical transaction and its
underlying pattern of profitability. To that end, last year, we introduced Enstar   s three- and fiveyear average changes in BVPS, ROE and RLE, and we have continued that practice this year.
Total Investment Return
$1.35bn
Run-off Liabilty Earnings
$131m
Total Liabilities Acquired
$2.2bn
1
PwC Global Insurance Run-off Survey.
* Non-GAAP financial measure. Refer to pages 69 - 75 of our Annual Report on Form 10-K for the year ended December 31, 2023 for
explanatory notes and a reconciliation to the most directly comparable GAAP measure for the year ended December 31, 2023.
i
Annual CEO letter from Dominic Silvester, Chief Executive Officer

Over the most
recent five years,
the average annual
growth in BVPS
was 18.0% and we
achieved an average
adjusted ROE* of
17.7%.
Change in BVPS Three- and Five-Year Average






ROE Three- and Five-Year Average





RLE Three- And Five-Year Average





* Non-GAAP financial measure. Refer to pages 69 - 75 of our Annual Report on Form 10-K for the year ended December 31, 2023 for
explanatory notes and a reconciliation to the most directly comparable GAAP measure for the years ended December 31, 2023,
2022 and 2021 and pages 265 - 268 of this 2023 Annual Report for the years ended December 31, 2020 and 2019.
ii
Annual CEO letter from Dominic Silvester, Chief Executive Officer
Enstar completed several high-quality, value-creating transactions in 2023 that supported
our partners    strategic goals. The discipline we apply when assessing potential transactions is
fundamental to our ability to deliver value, executing only on those which meet our stringent
risk parameters and profitability hurdles.
Total Liabilities Acquired2
(in billons of U.S. dollars)









During 2023 we completed a $2 billion loss portfolio transfer with our longstanding partner
and leading multinational insurer, QBE. This tailored solution marked the first time that we
provided cover for seasoned liabilities from a line of business in which the client remains
active, opening the door to similar transactions of this type in the future. This transaction
demonstrates particularly well our expertise in creating innovative solutions. The transaction
provides a reserve volatility cover while also generating substantial capital benefits and
allowing QBE to continue servicing its clients.
While we are regularly a counterparty to the world   s largest legacy transactions, we also
complete smaller, mutually beneficial deals. In June 2023 we completed an approximately
$180 million loss portfolio transfer with RACQ Insurance to reinsure 80% of the Australian
mutual   s motor vehicle Compulsory Third-Party insurance liabilities for accident years 2021
and prior. We continue to enjoy significant market share for legacy deals in Australia.
Finally, we completed a bespoke transaction with American International Group (AIG) in
November. The deal provides protection on their retained exposure to adverse development
on Validus Re   s loss reserves, following AIG   s sale of Validus Re to Renaissance Re. As with our
2022 deal to facilitate the sale of RSA Insurance Group to Intact Financial, the AIG partnership
is another example of how creative solutions can pave the way for insurers to achieve their
strategic goals.
2
Represents gross loss reserves, defendant A&E liabilities. Excludes gross loss reserves and future policyholder benefits acquired
via the acquisition of Enhanzed Re.   
iii

Enstar   s 2023
transactions
exemplify our
commitment to value
and innovation.
From a $2 billion loss
portfolio transfer
with QBE to a highly
bespoke deal with
AIG, our disciplined
approach delivers
tailored solutions that
meet our partners   
strategic goals.

Supporting our Clients    Strategic Goals
 • shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/21/2023 ESGR Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon ESGR Benford's Law Stock Score = 99


ESGR Shareholder/Stockholder Letter Transcript:

ENSTAR GROUP
ANNUAL
REPORT
2023
REALISING VALUE FOR 30 YEARS

Financial Results
(in millions of U.S. dollars, except ratios and per share data)


2023
2022
Return on equity   
Adjusted return on equity*  
24.2%
18.8%
-15.6%
-1.1%
1.1%
1.8%
6.3%
3.9%
3.9%
3.6%
7.2%
5.3%
-9.0%
-0.2%
2.0%
3.6%
$1,082
$(906)
$502
$343.45
$336.72
$262.24
$258.92
$329.20
$323.43
Run-off liability earnings  
Adjusted run-off liability earnings*  
Total investment return   
Adjusted total investment return*  
Net income (loss) attributable to Enstar ordinary shareholders
Book value per ordinary share   
Fully diluted book value per share*  
*Non-GAAP financial measure, refer to pages 69 - 75 of our Annual Report on Form 10-K for the year ended December 31, 2023 for explanatory
notes and a reconciliation to the most directly comparable GAAP measure for the years ended December 31, 2023, 2022 and 2021.
2021
7.9%
10.1%  

Annual CEO letter from Dominic Silvester, Chief Executive Officer
Dear Shareholders,
As we marked our 30th anniversary in 2023, we look back at how far the sector has
come during that time and our pride in the role we have played in positioning legacy
as a mainstream and crucial part of the re/insurance value chain.
Today, we deploy our specialist underwriting skills to help our global partners execute
strategic, risk transfer transactions. We continue to demonstrate resilience through business
cycles, and our differentiated business model, innovative legacy solutions, robust risk
management and capital strength provide us with confidence in our long-term prospects.
We entered 2024 in an unrivalled position to continue to meet the growing risk management
needs of the re/insurance sector, creating long-term value for our shareholders. I believe
Enstar is uniquely positioned to provide a wide variety of solutions from an estimated
$1 trillion1 in global insurance opportunities.
Strong Performance in 2023
We finished 2023 strong, recording full year net income of $1.1 billion attributable to ordinary
shareholders, with a Return on Equity (ROE) of 24.2% and an adjusted ROE* of 18.8%. We
generated Book Value per Share (BVPS) growth of 31.0% and fully diluted BVPS* growth of 30.0%.
These positive results were driven by:
    $1.35 billion of Total Investment Return (or TIR) ($1.06 billion on an adjusted basis*).

Celebrating 30 years,
Enstar has grown into
a global leader. We are
proud of the role we
have played in shaping
legacy as a vital part of
the broader insurance
value chain.

From humble beginnings in 1993 with four employees and one office, we have grown into the
world   s largest standalone run-off consolidator and a market-leading global re/insurance group.
Our products and solutions have evolved to cater to a much wider potential marketplace.
Dominic Silvester,
Chief Executive
Officer
    $131 million of Run-off Liability Earnings (or RLE), our measure of the income arising from
our core activities. ($227 million on an adjusted basis*).
    A $194 million non-recurring gain from the now-completed wind-up of Enhanzed Re.
    A $205 million tax benefit from the enactment of the Bermuda Corporate Income Tax Act 2023.
Our success is underscored by our ability to deliver better outcomes through our claims
management strategy, which we call the    Enstar Effect   . This contributed to our 17th
consecutive year of favourable RLE since going public in 2007     an enviable track record.
Legacy is a long-term business, and therefore, successful performance should be viewed over
the medium to long term which more closely tracks the lifespan of a typical transaction and its
underlying pattern of profitability. To that end, last year, we introduced Enstar   s three- and fiveyear average changes in BVPS, ROE and RLE, and we have continued that practice this year.
Total Investment Return
$1.35bn
Run-off Liabilty Earnings
$131m
Total Liabilities Acquired
$2.2bn
1
PwC Global Insurance Run-off Survey.
* Non-GAAP financial measure. Refer to pages 69 - 75 of our Annual Report on Form 10-K for the year ended December 31, 2023 for
explanatory notes and a reconciliation to the most directly comparable GAAP measure for the year ended December 31, 2023.
i

Annual CEO letter from Dominic Silvester, Chief Executive Officer

Over the most
recent five years,
the average annual
growth in BVPS
was 18.0% and we
achieved an average
adjusted ROE* of
17.7%.
Change in BVPS Three- and Five-Year Average






ROE Three- and Five-Year Average





RLE Three- And Five-Year Average





* Non-GAAP financial measure. Refer to pages 69 - 75 of our Annual Report on Form 10-K for the year ended December 31, 2023 for
explanatory notes and a reconciliation to the most directly comparable GAAP measure for the years ended December 31, 2023,
2022 and 2021 and pages 265 - 268 of this 2023 Annual Report for the years ended December 31, 2020 and 2019.
ii


Annual CEO letter from Dominic Silvester, Chief Executive Officer
Enstar completed several high-quality, value-creating transactions in 2023 that supported
our partners    strategic goals. The discipline we apply when assessing potential transactions is
fundamental to our ability to deliver value, executing only on those which meet our stringent
risk parameters and profitability hurdles.
Total Liabilities Acquired2
(in billons of U.S. dollars)









During 2023 we completed a $2 billion loss portfolio transfer with our longstanding partner
and leading multinational insurer, QBE. This tailored solution marked the first time that we
provided cover for seasoned liabilities from a line of business in which the client remains
active, opening the door to similar transactions of this type in the future. This transaction
demonstrates particularly well our expertise in creating innovative solutions. The transaction
provides a reserve volatility cover while also generating substantial capital benefits and
allowing QBE to continue servicing its clients.
While we are regularly a counterparty to the world   s largest legacy transactions, we also
complete smaller, mutually beneficial deals. In June 2023 we completed an approximately
$180 million loss portfolio transfer with RACQ Insurance to reinsure 80% of the Australian
mutual   s motor vehicle Compulsory Third-Party insurance liabilities for accident years 2021
and prior. We continue to enjoy significant market share for legacy deals in Australia.
Finally, we completed a bespoke transaction with American International Group (AIG) in
November. The deal provides protection on their retained exposure to adverse development
on Validus Re   s loss reserves, following AIG   s sale of Validus Re to Renaissance Re. As with our
2022 deal to facilitate the sale of RSA Insurance Group to Intact Financial, the AIG partnership
is another example of how creative solutions can pave the way for insurers to achieve their
strategic goals.
2
Represents gross loss reserves, defendant A&E liabilities. Excludes gross loss reserves and future policyholder benefits acquired
via the acquisition of Enhanzed Re.   
iii

Enstar   s 2023
transactions
exemplify our
commitment to value
and innovation.
From a $2 billion loss
portfolio transfer
with QBE to a highly
bespoke deal with
AIG, our disciplined
approach delivers
tailored solutions that
meet our partners   
strategic goals.

Supporting our Clients    Strategic Goals



shareholder letter icon 4/26/2024 Letter Continued (Full PDF)
 

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