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.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Arch CEO bullish on mortgage insurance
CNO Financial reinsures legacy portfolio with Wilton Re
RSA H1 underwriting profit down 23%
Willis Towers Watson grows organic revenue by 3%
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze