Profits rise at Enstar but it warns on challenging market conditions
Enstar, an insurance holding company that owns StarStone and Atrium, posted improved profits in the first quarter of 2017 though its net written premiums shrank as it warned on “challenging market conditions” in both underwriting and investing and “overcapacity in many markets for insurable risks”.
The company reported consolidated net earnings of $54.7 million for the three months ended March 31, 2017, up on the $45.5 million it reported for the same period of 2016.
Net premiums earned for the first quarter of 2017 reached $148.9 million, down 33 percent on the $192.9 million it earned in the first quarter of 2016.
Deferred acquisition costs in the first three months of 2017 totalled $72.1 million, an increase on the $58.1 million the company reported in the same period of 2016.
Net investment income for the first quarter of 2017 was $48.7 million, down slightly from the $50.3 million it made in the first quarter of 2016.
In its Form 10-Q, Enstar stated: “Our industry continues to experience challenging market conditions in underwriting and investing. We continue to see overcapacity in many markets for insurable risks, resulting in continued pressure on premium rates and terms and conditions. We seek to maintain a disciplined underwriting approach to underwrite for profitability in our active underwriting segments, StarStone and Atrium.
“For the three months ended March 31, 2017 compared to 2016, gross premiums written increased in both our StarStone and Atrium segments as we selectively grew in certain lines, which included the development of additional underwriting capabilities. StarStone's net earned premium, net incurred losses and acquisition costs decreased significantly as a result of the 35 percent quota share reinsurance agreement with our equity method investee KaylaRe Holdings, which covers the 2016 and subsequent underwriting years.”
Today’s stories
Munich Re posts strong Q1 growth; notes slight easing in pricing pressure
Hiscox enjoys strong growth overall but reinsurance unit shrinks
Towergate Insurance returns to loss in Q1
Hiscox unveils plans for EU subsidiary in response to Brexit
US P&C insurers suffer $4.7bn underwriting loss in 2016
Markel International bolsters Singapore branch with marine underwriter
RMC Group targets Europe from new UK office
Maiden enjoys growth but its profit is hit by casualty losses
Twelve Capital hires director to focus on cat bond strategies
PERILS expects losses of $823m from Tropical Storm Debbie
PineBridge Investments hires former Aviva investment specialist
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
