Enstar Q2 profit plummets
Bermuda-based insurance group Enstar reported a sharp drop in net earnings for the second quarter of 2018 as expenses weighed on the firm’s performance while income declined.
The group’s consolidated net earnings fell to $8.2 million in the second quarter of 2018 from $90.2 million in the same period of 2017, despite the fact that net premiums earned increased to $228.8 million from $155.6 million over the period.
Income declined to $255.5 million in the second quarter from $286.4 million in the same period a year ago. Fees and commission income dropped to $8.4 million from $18.7 million over the period. The firm also made a net realized and unrealized loss of $54.4 million in the quarter compared to a gain of $51.9 million in the second quarter of 2017.
The combined ratio deteriorated to 97.8 percent in the second quarter of 2018 from 82.0 percent a year ago, primarily due to an increase in the loss ratio.
While income declined, expenses rose to $252.0 million in the second quarter of 2018 after $175.1 million in the second quarter of 2017. Net incurred losses and loss adjustment expenses jumped to $92.8 million in the second quarter from $9.6 million a year ago. At the same time, acquisition costs increased to $53.3 million from $30.4 million over the period.
Enstar combines specialty insurance underwriting with legacy risk consolidation.
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