QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
BERMUDA | N/A | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | |||||||||
Ordinary shares, par value $1.00 per share | ESGR | The NASDAQ Stock Market | LLC | ||||||||
Depositary Shares, Each Representing a 1/1,000th Interest in a 7.00% | ESGRP | The NASDAQ Stock Market | LLC | ||||||||
Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Share, Series D, Par Value $1.00 Per Share | |||||||||||
Depositary Shares, Each Representing a 1/1,000th Interest in a 7.00% | ESGRO | The NASDAQ Stock Market | LLC | ||||||||
Perpetual Non-Cumulative Preferred Share, Series E, Par Value $1.00 Per Share |
Large accelerated filer |
☒
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Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. |
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | Page | ||||
June 30, 2021 | December 31, 2020 | ||||||||||||||||
(expressed in thousands of U.S. dollars, except share data) | |||||||||||||||||
ASSETS | |||||||||||||||||
Short-term investments, trading, at fair value | $ | 19,788 | $ | 5,129 | |||||||||||||
Short-term investments, available-for-sale, at fair value (amortized cost: 2021 — $110,452; 2020 — $263,750; net of allowance: 2021 — $0; 2020 — $0)
|
110,473 | 263,795 | |||||||||||||||
Fixed maturities, trading, at fair value | 4,088,402 | 4,594,892 | |||||||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2021 — $5,443,653; 2020 — $3,312,891; net of allowance: 2021 — $7,386; 2020 — $322)
|
5,466,038 | 3,395,100 | |||||||||||||||
Funds held - directly managed | 1,028,503 | 1,074,890 | |||||||||||||||
Equities, at fair value | 1,158,219 | 846,795 | |||||||||||||||
Other investments, at fair value | 1,814,593 | 4,244,034 | |||||||||||||||
Equity method investments | 936,430 | 832,295 | |||||||||||||||
14,622,446 | 15,256,930 | ||||||||||||||||
Cash and cash equivalents | 769,359 | 901,152 | |||||||||||||||
Restricted cash and cash equivalents | 356,899 | 471,964 | |||||||||||||||
Premiums receivable | 379,981 | 405,793 | |||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses (net of allowance: 2021 — $140,488; 2020 — $137,122) (Note 6)
|
1,484,384 | 1,568,333 | |||||||||||||||
492,343 | 520,830 | ||||||||||||||||
245,979 | 249,652 | ||||||||||||||||
Funds held by reinsured companies | 2,201,958 | 635,819 | |||||||||||||||
2,913,522 | — | ||||||||||||||||
Cash and restricted cash | 1,002,537 | — | |||||||||||||||
Investments | 1,393,134 | — | |||||||||||||||
Other assets | 517,851 | — | |||||||||||||||
Other assets | 1,154,460 | 925,533 | |||||||||||||||
— | 711,278 | ||||||||||||||||
TOTAL ASSETS | $ | 24,621,331 | $ | 21,647,284 | |||||||||||||
LIABILITIES | |||||||||||||||||
$ | 10,803,753 | $ | 8,140,362 | ||||||||||||||
2,234,105 | 2,452,920 | ||||||||||||||||
677,919 | 706,329 | ||||||||||||||||
Insurance and reinsurance balances payable | 584,084 | 494,412 | |||||||||||||||
1,364,212 | 1,373,259 | ||||||||||||||||
693,810 | — | ||||||||||||||||
Other liabilities | 886,056 | 942,905 | |||||||||||||||
— | 483,657 | ||||||||||||||||
TOTAL LIABILITIES | 17,243,939 | 14,593,844 | |||||||||||||||
177,449 | 365,436 | ||||||||||||||||
Ordinary shares (par value $1 each, issued and outstanding 2021: 22,170,433; 2020: 22,085,232):
|
|||||||||||||||||
Voting Ordinary shares (issued and outstanding 2021: 18,571,161; 2020: 18,575,550)
|
18,571 | 18,576 | |||||||||||||||
Non-voting convertible ordinary Series C Shares (issued and outstanding 2021: 2,689,262; 2020: 2,599,672)
|
2,690 | 2,600 | |||||||||||||||
Non-voting convertible ordinary Series E Shares (issued and outstanding 2021 and 2020: 910,010)
|
910 | 910 | |||||||||||||||
Preferred Shares: | |||||||||||||||||
Series C Preferred Shares (issued and held in treasury 2021 and 2020: 388,571)
|
389 | 389 | |||||||||||||||
Series D Preferred Shares (issued and outstanding 2021 and 2020: 16,000)
|
400,000 | 400,000 | |||||||||||||||
Series E Preferred Shares (issued and outstanding 2021 and 2020: 4,400)
|
110,000 | 110,000 | |||||||||||||||
Treasury shares, at cost (Series C Preferred shares 2021 and 2020: 388,571)
|
(421,559) | (421,559) | |||||||||||||||
Joint Share Ownership Plan (voting ordinary shares, held in trust 2021 and 2020: 565,630)
|
(566) | (566) | |||||||||||||||
Additional paid-in capital | 1,835,231 | 1,836,074 | |||||||||||||||
Accumulated other comprehensive income | 33,077 | 80,659 | |||||||||||||||
Retained earnings | 5,208,565 | 4,647,312 | |||||||||||||||
Total Enstar Shareholders’ Equity | 7,187,308 | 6,674,395 | |||||||||||||||
12,635 | 13,609 | ||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 7,199,943 | 6,688,004 | |||||||||||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | $ | 24,621,331 | $ | 21,647,284 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars, except share and per share data) | |||||||||||||||||||||||
INCOME | |||||||||||||||||||||||
Net premiums earned | $ | 59,644 | $ | 142,871 | $ | 152,520 | $ | 302,222 | |||||||||||||||
Fees and commission income | 8,274 | 10,010 | 17,872 | 17,538 | |||||||||||||||||||
Net investment income (1)
|
76,147 | 94,443 | 138,236 | 169,157 | |||||||||||||||||||
Net realized and unrealized gains (1)
|
405,220 | 967,608 | 384,432 | 338,547 | |||||||||||||||||||
Other income (expense) | (3,359) | (1,087) | (2,808) | 19,357 | |||||||||||||||||||
Net gain on sales of subsidiaries | — | — | 14,894 | — | |||||||||||||||||||
545,926 | 1,213,845 | 705,146 | 846,821 | ||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | 39,304 | 186,692 | (16,203) | 229,992 | |||||||||||||||||||
Acquisition costs | 4,956 | 49,067 | 38,970 | 95,110 | |||||||||||||||||||
General and administrative expenses | 92,717 | 144,830 | 175,717 | 243,258 | |||||||||||||||||||
Interest expense | 16,301 | 14,018 | 32,480 | 27,433 | |||||||||||||||||||
Net foreign exchange (gains) losses | (9,139) | 5,158 | (6,505) | (6,781) | |||||||||||||||||||
144,139 | 399,765 | 224,459 | 589,012 | ||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 401,787 | 814,080 | 480,687 | 257,809 | |||||||||||||||||||
Income tax expense | (9,422) | (16,652) | (3,440) | (11,380) | |||||||||||||||||||
Earnings (loss) from equity method investments | (3,059) | (8,790) | 114,972 | 3,660 | |||||||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 389,306 | 788,638 | 592,219 | 250,089 | |||||||||||||||||||
Net loss from discontinued operations, net of income taxes | — | (1,152) | — | (3,221) | |||||||||||||||||||
NET EARNINGS | 389,306 | 787,486 | 592,219 | 246,868 | |||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (3,055) | 19,992 | (13,846) | 52,714 | |||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 386,251 | 807,478 | 578,373 | 299,582 | |||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | (17,850) | (17,850) | |||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | 377,326 | $ | 798,553 | $ | 560,523 | $ | 281,732 | |||||||||||||||
Earnings per ordinary share attributable to Enstar: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | 17.44 | $ | 37.06 | $ | 25.95 | $ | 13.16 | |||||||||||||||
Net loss from discontinued operations | — | (0.03) | — | (0.09) | |||||||||||||||||||
Net earnings per ordinary share | $ | 17.44 | $ | 37.03 | $ | 25.95 | $ | 13.07 | |||||||||||||||
Diluted: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | 17.28 | $ | 36.68 | $ | 25.60 | $ | 13.02 | |||||||||||||||
Net loss from discontinued operations | — | (0.03) | — | (0.09) | |||||||||||||||||||
Net earnings per ordinary share | $ | 17.28 | $ | 36.65 | $ | 25.60 | $ | 12.93 | |||||||||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||||||||
Basic | 21,631,749 | 21,565,240 | 21,597,236 | 21,557,542 | |||||||||||||||||||
Diluted | 21,832,218 | 21,789,242 | 21,892,744 | 21,788,331 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||||||||||||
NET EARNINGS | $ | 389,306 | $ | 787,486 | $ | 592,219 | $ | 246,868 | |||||||||||||||
Other comprehensive income (loss), net of income taxes: | |||||||||||||||||||||||
Unrealized gains (losses) on fixed income available-for-sale investments arising during the period | 57,020 | 112,506 | (54,254) | 53,771 | |||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,094) | (10,762) | 6,931 | 2,450 | |||||||||||||||||||
Reclassification adjustment for net realized gains included in net earnings | (529) | (4,222) | (1,123) | (4,010) | |||||||||||||||||||
Reclassification to earnings on disposal of subsidiary | — | — | 475 | — | |||||||||||||||||||
Unrealized gains (losses) arising during the period, net of reclassification adjustments | 51,397 | 97,522 | (47,971) | 52,211 | |||||||||||||||||||
Cumulative currency translation adjustment | (399) | (1,205) | 1,019 | (1,891) | |||||||||||||||||||
Total other comprehensive income (loss) | 50,998 | 96,317 | (46,952) | 50,320 | |||||||||||||||||||
Comprehensive income | 440,304 | 883,803 | 545,267 | 297,188 | |||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (3,260) | 9,616 | (14,476) | 46,508 | |||||||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO ENSTAR | $ | 437,044 | $ | 893,419 | $ | 530,791 | $ | 343,696 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||||||||||||||
Share Capital — Voting Ordinary Shares | |||||||||||||||||||||||
Balance, beginning of period | $ | 18,596 | $ | 18,610 | $ | 18,576 | $ | 18,002 | |||||||||||||||
Issue of shares | 5 | 25 | 43 | 726 | |||||||||||||||||||
Shares repurchased | (30) | — | (48) | (93) | |||||||||||||||||||
Balance, end of period | $ | 18,571 | $ | 18,635 | $ | 18,571 | $ | 18,635 | |||||||||||||||
Share Capital — Non-Voting Convertible Ordinary Series C Shares | |||||||||||||||||||||||
Balance, beginning of period | $ | 2,690 | $ | 2,600 | $ | 2,600 | $ | 2,600 | |||||||||||||||
Exercise of warrants | — | — | 90 | — | |||||||||||||||||||
Balance, end of period | $ | 2,690 | $ | 2,600 | $ | 2,690 | $ | 2,600 | |||||||||||||||
Share Capital — Non-Voting Convertible Ordinary Series E Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | 910 | $ | 910 | $ | 910 | $ | 910 | |||||||||||||||
Share Capital — Series C Convertible Participating Non-Voting Preferred Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | 389 | $ | 389 | $ | 389 | $ | 389 | |||||||||||||||
Share Capital — Series D Preferred Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | 400,000 | $ | 400,000 | $ | 400,000 | $ | 400,000 | |||||||||||||||
Share Capital — Series E Preferred Shares | |||||||||||||||||||||||
Balance, beginning and end of period | $ | 110,000 | $ | 110,000 | $ | 110,000 | $ | 110,000 | |||||||||||||||
Treasury Shares (Series C Preferred Shares) | |||||||||||||||||||||||
Balance, beginning and end of period | $ | (421,559) | $ | (421,559) | $ | (421,559) | $ | (421,559) | |||||||||||||||
Joint Share Ownership Plan — Voting Ordinary Shares, Held in Trust | |||||||||||||||||||||||
Balance, beginning of period | $ | (566) | $ | (566) | $ | (566) | $ | — | |||||||||||||||
Issue of shares | — | — | — | (566) | |||||||||||||||||||
Balance, end of period | $ | (566) | $ | (566) | $ | (566) | $ | (566) | |||||||||||||||
Additional Paid-in Capital | |||||||||||||||||||||||
Balance, beginning of period | $ | 1,836,792 | $ | 1,825,798 | $ | 1,836,074 | $ | 1,836,778 | |||||||||||||||
Repurchase of voting ordinary shares | (311) | (109) | (2,563) | (1,360) | |||||||||||||||||||
Exercise of warrants | — | — | (90) | — | |||||||||||||||||||
Shares repurchased | (7,178) | — | (11,385) | (12,433) | |||||||||||||||||||
Amortization of share-based compensation | 5,928 | 9,426 | 13,195 | 12,130 | |||||||||||||||||||
Balance, end of period | $ | 1,835,231 | $ | 1,835,115 | $ | 1,835,231 | $ | 1,835,115 | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance, beginning of period | $ | (17,715) | $ | (34,656) | $ | 80,659 | $ | 7,171 | |||||||||||||||
Cumulative currency translation adjustment | |||||||||||||||||||||||
Balance, beginning of period | 8,619 | 7,862 | 7,876 | 8,548 | |||||||||||||||||||
Change in currency translation adjustment | (565) | (1,038) | 178 | (1,724) | |||||||||||||||||||
Balance, end of period | 8,054 | 6,824 | 8,054 | 6,824 | |||||||||||||||||||
Defined benefit pension liability | |||||||||||||||||||||||
Balance, beginning and end of period | 207 | (945) | 207 | (945) | |||||||||||||||||||
Unrealized gains (losses) on available-for-sale investments | |||||||||||||||||||||||
Balance, beginning of period | (26,541) | (41,573) | 72,576 | (432) | |||||||||||||||||||
Change in unrealized gains (losses) on available-for-sale investments | 51,357 | 86,979 | (47,760) | 45,838 | |||||||||||||||||||
Balance, end of period | 24,816 | 45,406 | 24,816 | 45,406 | |||||||||||||||||||
Balance, end of period | $ | 33,077 | $ | 51,285 | $ | 33,077 | $ | 51,285 | |||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance, beginning of period | $ | 4,831,239 | $ | 2,375,073 | $ | 4,647,312 | $ | 2,887,892 | |||||||||||||||
Net earnings | 389,306 | 787,486 | 592,219 | 246,868 | |||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (3,055) | 19,992 | (13,846) | 52,714 | |||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | (17,850) | (17,850) | |||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | — | 16,478 | 730 | 26,628 | |||||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | (6,148) | |||||||||||||||||||
Balance, end of period | $ | 5,208,565 | $ | 3,190,104 | $ | 5,208,565 | $ | 3,190,104 | |||||||||||||||
Noncontrolling Interest (excludes Redeemable Noncontrolling Interest) | |||||||||||||||||||||||
Balance, beginning of period | $ | 12,655 | $ | 13,405 | $ | 13,609 | $ | 14,168 | |||||||||||||||
Dividends paid | (634) | — | (634) | — | |||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interest | 614 | 148 | (340) | (615) | |||||||||||||||||||
Balance, end of period | $ | 12,635 | $ | 13,553 | $ | 12,635 | $ | 13,553 | |||||||||||||||
Total Shareholders' Equity | $ | 7,199,943 | $ | 5,200,466 | $ | 7,199,943 | $ | 5,200,466 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
(expressed in thousands of U.S. dollars) | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net earnings | $ | 592,219 | $ | 246,868 | |||||||
Net loss from discontinued operations, net of income taxes | — | 3,221 | |||||||||
Adjustments to reconcile net earnings to cash flows provided by operating activities: | |||||||||||
Realized gains on sales of investments | (346,341) | (61,406) | |||||||||
Unrealized gains on investments | (38,091) | (277,141) | |||||||||
Net gain on sales of subsidiaries | (14,894) | — | |||||||||
Depreciation and other amortization | 38,005 | 30,006 | |||||||||
Earnings from equity method investments | (114,972) | (3,660) | |||||||||
Sales and maturities of trading securities | 3,267,170 | 2,165,843 | |||||||||
Purchases of trading securities | (2,031,855) | (1,175,992) | |||||||||
Payments to cover securities sold short | (685,140) | — | |||||||||
Proceeds from securities sold short | 244,829 | — | |||||||||
Net payments for derivative contracts | (77,773) | — | |||||||||
Other non-cash items | 10,274 | 11,082 | |||||||||
Changes in: | |||||||||||
Reinsurance balances recoverable on paid and unpaid losses | 111,995 | 84,827 | |||||||||
Funds held by reinsured companies | (1,566,139) | (990,864) | |||||||||
Losses and loss adjustment expenses | 2,447,066 | 741,100 | |||||||||
Defendant asbestos and environmental liabilities | (28,410) | (39,623) | |||||||||
Insurance and reinsurance balances payable | 94,238 | 152,886 | |||||||||
Premiums receivable | 23,476 | (49,939) | |||||||||
Other operating assets and liabilities | (255,008) | 11,953 | |||||||||
684,367 | — | ||||||||||
Net cash flows provided by operating activities | 2,355,016 | 849,161 | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Sales of subsidiaries, net of cash sold | (232,269) | — | |||||||||
Sales and maturities of available-for-sale securities | 1,495,918 | 1,156,786 | |||||||||
Purchase of available-for-sale securities | (3,451,516) | (1,759,023) | |||||||||
Purchase of other investments | (307,429) | (656,757) | |||||||||
Proceeds from other investments | 135,734 | 136,592 | |||||||||
Purchase of equity method investments | — | (33,000) | |||||||||
Dividends from equity method investments | — | 237 | |||||||||
Other investing activities | 334 | (974) | |||||||||
574,081 | — | ||||||||||
Net cash flows used in investing activities | (1,785,147) | (1,156,139) | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Dividends on preferred shares | (17,850) | (17,850) | |||||||||
Dividends paid to noncontrolling interest | (634) | — | |||||||||
Repurchase of shares | (11,433) | (12,526) | |||||||||
Receipt of loans | 20,000 | 364,000 | |||||||||
Repayment of loans | (30,000) | (14,000) | |||||||||
Net cash flows provided by (used in) financing activities | (39,917) | 319,624 | |||||||||
DISCONTINUED OPERATIONS CASH FLOWS: | |||||||||||
Net cash flows provided by operating activities | — | 95,096 |
Net cash flows used in investing activities | — | (93,940) | |||||||||
Net cash flows from discontinued operations | — | 1,156 | |||||||||
EFFECT OF EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH AND CASH EQUIVALENTS | 2,527 | 4,526 | |||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 532,479 | 18,328 | |||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,373,116 | 971,349 | |||||||||
NET CHANGE IN CASH OF BUSINESSES HELD FOR SALE | 223,200 | (1,156) | |||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 2,128,795 | $ | 988,521 | |||||||
Supplemental Cash Flow Information: | |||||||||||
Income taxes paid, net of refunds | $ | 5,146 | $ | 15,450 | |||||||
Interest paid | $ | 31,408 | $ | 26,783 | |||||||
Reconciliation to Condensed Consolidated Balance Sheets: | |||||||||||
Cash and cash equivalents | 769,359 | 651,855 | |||||||||
Restricted cash and cash equivalents | 356,899 | 336,666 | |||||||||
1,002,537 | — | ||||||||||
Cash, cash equivalents and restricted cash | $ | 2,128,795 | $ | 988,521 |
Transaction | Date Completed | Total Assets Assumed |
Deferred Charge Asset (1)
|
Total Assets from Transactions | Total Liabilities Assumed |
Net Fair Value Adjustment (2)
|
Total Liabilities from Transactions | Type of Transaction and Primary Nature of Business | ||||||||||||||||||||||||||||||||||||||||||
Hiscox | June 3, 2021 | $ | 532,394 | N/A | $ | 532,394 | $ | 532,394 | N/A | $ | 532,394 | LPT of diversified legacy insurance business, including surplus lines broker business | ||||||||||||||||||||||||||||||||||||||
Coca-Cola | May 24, 2021 | 41,928 | 6,143 | 48,071 | 48,071 | N/A | 48,071 | LPT of U.S. workers' compensation liability | ||||||||||||||||||||||||||||||||||||||||||
AXA Group | May 3, 2021 | 1,395,000 | 91,988 | 1,486,988 | 1,486,988 | N/A | 1,486,988 |
ADC of a diversified mix of global casualty and professional lines
|
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CNA | February 5, 2021 | 651,736 | 105,479 | 757,215 | 757,215 | N/A | 757,215 | LPT of U.S. excess workers' compensation liabilities | ||||||||||||||||||||||||||||||||||||||||||
Liberty Mutual (3)
|
January 8, 2021 | 363,159 | 25,402 | 388,561 | 388,561 | N/A | 388,561 | LPT of U.S. energy liability, construction liability and homebuilders liability | ||||||||||||||||||||||||||||||||||||||||||
Total 2021 | $ | 2,984,217 | $ | 229,012 | $ | 3,213,229 | $ | 3,213,229 | $ | — | $ | 3,213,229 | ||||||||||||||||||||||||||||||||||||||
Hannover Re | August 6, 2020 | $ | 182,498 | N/A | $ | 182,498 | $ | 209,713 | $ | (27,215) | $ | 182,498 | Novation of U.S. asbestos, environmental and workers' compensation liabilities | |||||||||||||||||||||||||||||||||||||
Munich Re | July 1, 2020 | 100,956 | N/A | 100,956 | 100,956 | N/A | 100,956 | Business Transfer of Australian public liability, professional liability and builders' warranty liabilities | ||||||||||||||||||||||||||||||||||||||||||
AXA Group (3)
|
June 1, 2020 | 179,681 | N/A | 179,681 | 179,681 | N/A | 179,681 | LPT of U.S. construction general liability | ||||||||||||||||||||||||||||||||||||||||||
Aspen | June 1, 2020 | 770,000 | 11,746 | 781,746 | 781,746 | N/A | 781,746 |
ADC on a diversified mix of property, liability and specialty lines of business across the U.S., U.K. and Europe
|
||||||||||||||||||||||||||||||||||||||||||
Lyft | March 31, 2020 | 465,000 | N/A | 465,000 | 465,000 | N/A | 465,000 | LPT of U.S. motor liabilities | ||||||||||||||||||||||||||||||||||||||||||
Total 2020 | $ | 1,698,135 | $ | 11,746 | $ | 1,709,881 | $ | 1,737,096 | $ | (27,215) | $ | 1,709,881 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 4,682,352 | $ | 240,758 | $ | 4,923,110 | $ | 4,950,325 | $ | (27,215) | $ | 4,923,110 |
December 31, 2020 | |||||||||||
Distribution of SGL No.1 share of Syndicate 609 results | $ | 19,115 | |||||||||
Due to Arden under reinsurance agreement | (7,965) | ||||||||||
Due to Atrium 5 Limited under Capacity Lease Agreement | (11,150) | ||||||||||
Net balances with Northshore Group | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2020 | 2020 | ||||||||||||||||||||||
INCOME | |||||||||||||||||||||||
Net premiums earned | $ | 65,403 | $ | 165,949 | |||||||||||||||||||
Net investment income | 3,699 | 7,414 | |||||||||||||||||||||
Net realized and unrealized gains | 6,262 | 847 | |||||||||||||||||||||
Other income | 24 | 25 | |||||||||||||||||||||
75,388 | 174,235 | ||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | 48,115 | 112,709 | |||||||||||||||||||||
Acquisition costs | 12,251 | 32,794 | |||||||||||||||||||||
General and administrative expenses | 15,645 | 30,729 | |||||||||||||||||||||
Interest expense | 591 | 1,180 | |||||||||||||||||||||
Net foreign exchange gains | (11) | (2) | |||||||||||||||||||||
76,591 | 177,410 | ||||||||||||||||||||||
LOSS BEFORE INCOME TAXES | (1,203) | (3,175) | |||||||||||||||||||||
Income tax benefit (expense) | 51 | (46) | |||||||||||||||||||||
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | (1,152) | (3,221) | |||||||||||||||||||||
Net loss from discontinued operations attributable to noncontrolling interest | 473 | 1,321 | |||||||||||||||||||||
NET LOSS FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (679) | $ | (1,900) |
Three Months Ended June 30, | Six Months Ended June 30, 2021 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Total income(1)
|
$ | (1,959) | $ | 3,650 | $ | (387) | $ | 7,363 | |||||||||||||||
Total expenses (income)(1)
|
3,468 | (7,239) | 1,068 | (14,899) | |||||||||||||||||||
Net earnings (loss) | $ | (5,427) | $ | 10,889 | $ | (1,455) | $ | 22,262 |
Six Months Ended | |||||
June 30, | |||||
2021 | |||||
Atrium | (7,844) | ||||
SUL | 23,067 | ||||
Arena | (329) | ||||
Net gain on sales of subsidiaries | 14,894 |
June 30, 2021 | |||||||||||||||||||||||||||||||||||
Short-term investments, trading | Short-term investments, AFS | Fixed maturities, trading | Fixed maturities, AFS | Fixed maturities, funds held - directly managed | Total | ||||||||||||||||||||||||||||||
U.S. government and agency | $ | 15,683 | $ | 88,177 | $ | 109,398 | $ | 450,424 | $ | 125,757 | $ | 789,439 | |||||||||||||||||||||||
U.K. government | — | — | 30,110 | 11,586 | — | 41,696 | |||||||||||||||||||||||||||||
Other government | 4,105 | — | 334,134 | 125,647 | 16,393 | 480,279 | |||||||||||||||||||||||||||||
Corporate | — | 22,296 | 2,884,794 | 3,225,992 | 519,916 | 6,652,998 | |||||||||||||||||||||||||||||
Municipal | — | — | 86,860 | 105,550 | 52,049 | 244,459 | |||||||||||||||||||||||||||||
Residential mortgage-backed | — | — | 130,711 | 397,707 | 43,821 | 572,239 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | — | — | 296,776 | 483,990 | 206,488 | 987,254 | |||||||||||||||||||||||||||||
Asset-backed | — | — | 215,619 | 665,142 | 54,832 | 935,593 | |||||||||||||||||||||||||||||
Total fixed maturity and short-term investments | $ | 19,788 | $ | 110,473 | $ | 4,088,402 | $ | 5,466,038 | $ | 1,019,256 | $ | 10,703,957 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Short-term investments, trading | Short-term investments, AFS | Fixed maturities, trading | Fixed maturities, AFS | Fixed maturities, funds held - directly managed | Total | ||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | 243,556 | $ | 123,874 | $ | 474,442 | $ | 109,176 | $ | 951,048 | |||||||||||||||||||||||
U.K. government | — | — | 37,508 | 13,574 | — | 51,082 | |||||||||||||||||||||||||||||
Other government | 3,424 | 3,213 | 327,437 | 146,914 | 21,165 | 502,153 | |||||||||||||||||||||||||||||
Corporate | 1,705 | 17,026 | 3,227,726 | 1,920,323 | 519,952 | 5,686,732 | |||||||||||||||||||||||||||||
Municipal | — | — | 79,959 | 30,032 | 52,678 | 162,669 | |||||||||||||||||||||||||||||
Residential mortgage-backed | — | — | 154,471 | 328,871 | 70,603 | 553,945 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | — | — | 347,225 | 276,488 | 230,377 | 854,090 | |||||||||||||||||||||||||||||
Asset-backed | — | — | 296,692 | 204,456 | 56,312 | 557,460 | |||||||||||||||||||||||||||||
Total fixed maturity and short-term investments | $ | 5,129 | $ | 263,795 | $ | 4,594,892 | $ | 3,395,100 | $ | 1,060,263 | $ | 9,319,179 |
As of June 30, 2021 |
Amortized
Cost |
Fair Value | % of Total Fair Value | |||||||||||||||||
One year or less | $ | 527,076 | $ | 532,927 | 5.0 | % | ||||||||||||||
More than one year through two years | 936,548 | 953,402 | 8.9 | % | ||||||||||||||||
More than two years through five years | 2,405,532 | 2,479,482 | 23.3 | % | ||||||||||||||||
More than five years through ten years | 2,355,524 | 2,455,554 | 22.9 | % | ||||||||||||||||
More than ten years | 1,664,804 | 1,787,506 | 16.7 | % | ||||||||||||||||
Residential mortgage-backed | 569,169 | 572,239 | 5.3 | % | ||||||||||||||||
Commercial mortgage-backed | 966,496 | 987,254 | 9.2 | % | ||||||||||||||||
Asset-backed | 939,474 | 935,593 | 8.7 | % | ||||||||||||||||
$ | 10,364,623 | $ | 10,703,957 | 100.0 | % |
Amortized
Cost |
Fair Value | % of Total |
AAA
Rated |
AA Rated | A Rated |
BBB
Rated |
Non-
Investment Grade |
Not Rated | |||||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 784,054 | $ | 789,439 | 7.4 | % | $ | 788,822 | $ | 381 | $ | — | $ | 236 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||
U.K. government | 40,011 | 41,696 | 0.4 | % | — | 34,379 | 7,317 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Other government | 460,069 | 480,279 | 4.5 | % | 213,984 | 168,864 | 46,640 | 45,889 | 4,902 | — | |||||||||||||||||||||||||||||||||||||||||||
Corporate | 6,378,115 | 6,652,998 | 62.2 | % | 166,647 | 663,162 | 2,964,842 | 2,550,601 | 291,394 | 16,352 | |||||||||||||||||||||||||||||||||||||||||||
Municipal | 227,235 | 244,459 | 2.3 | % | 11,820 | 129,533 | 82,076 | 20,937 | — | 93 | |||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 569,169 | 572,239 | 5.3 | % | 557,182 | 2,423 | 2,201 | 8,920 | 1,413 | 100 | |||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 966,496 | 987,254 | 9.2 | % | 705,402 | 116,062 | 85,728 | 71,649 | 3,831 | 4,582 | |||||||||||||||||||||||||||||||||||||||||||
Asset-backed | 939,474 | 935,593 | 8.7 | % | 348,411 | 279,778 | 199,722 | 82,737 | 21,781 | 3,164 | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,364,623 | $ | 10,703,957 | 100.0 | % | $ | 2,792,268 | $ | 1,394,582 | $ | 3,388,526 | $ | 2,780,969 | $ | 323,321 | $ | 24,291 | |||||||||||||||||||||||||||||||||||
% of total fair value | 26.1 | % | 13.0 | % | 31.7 | % | 26.0 | % | 3.0 | % | 0.2 | % |
Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
As of June 30, 2021 | Amortized Cost | Gross Unrealized Gains | Non-Credit Related Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
U.S. government and agency | $ | 539,883 | $ | 1,754 | $ | (3,036) | $ | — | $ | 538,601 | ||||||||||||||||||||||
U.K. government | 11,357 | 289 | (60) | — | 11,586 | |||||||||||||||||||||||||||
Other government | 122,336 | 3,882 | (530) | (41) | 125,647 | |||||||||||||||||||||||||||
Corporate | 3,231,801 | 39,415 | (15,757) | (7,171) | 3,248,288 | |||||||||||||||||||||||||||
Municipal | 103,993 | 1,823 | (266) | — | 105,550 | |||||||||||||||||||||||||||
Residential mortgage-backed | 398,564 | 1,666 | (2,506) | (17) | 397,707 | |||||||||||||||||||||||||||
Commercial mortgage-backed | 481,909 | 5,277 | (3,039) | (157) | 483,990 | |||||||||||||||||||||||||||
Asset-backed | 664,262 | 1,230 | (350) | — | 665,142 | |||||||||||||||||||||||||||
$ | 5,554,105 | $ | 55,336 | $ | (25,544) | $ | (7,386) | $ | 5,576,511 |
Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
As of December 31, 2020
|
Amortized Cost | Gross Unrealized Gains | Non-Credit Related Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
U.S. government and agency | $ | 715,527 | $ | 3,305 | $ | (834) | $ | — | $ | 717,998 | ||||||||||||||||||||||
U.K. government | 12,494 | 1,080 | — | — | 13,574 | |||||||||||||||||||||||||||
Other government | 142,459 | 7,721 | (53) | — | 150,127 | |||||||||||||||||||||||||||
Corporate | 1,873,184 | 65,913 | (1,567) | (181) | 1,937,349 | |||||||||||||||||||||||||||
Municipal | 28,881 | 1,155 | (4) | — | 30,032 | |||||||||||||||||||||||||||
Residential mortgage-backed | 326,268 | 3,292 | (689) | — | 328,871 | |||||||||||||||||||||||||||
Commercial mortgage-backed | 273,516 | 5,202 | (2,097) | (133) | 276,488 | |||||||||||||||||||||||||||
Asset-backed | 204,312 | 846 | (694) | (8) | 204,456 | |||||||||||||||||||||||||||
$ | 3,576,641 | $ | 88,514 | $ | (5,938) | $ | (322) | $ | 3,658,895 |
12 Months or Greater | Less Than 12 Months | Total | ||||||||||||||||||||||||||||||||||||
As of June 30, 2021 |
Fair
Value |
Gross Unrealized
Losses |
Fair
Value |
Gross Unrealized
Losses |
Fair
Value |
Gross Unrealized
Losses |
||||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 413,863 | $ | (3,036) | $ | 413,863 | $ | (3,036) | ||||||||||||||||||||||||||
U.K. government | — | — | 4,175 | (60) | 4,175 | (60) | ||||||||||||||||||||||||||||||||
Other government | — | — | 26,701 | (257) | 26,701 | (257) | ||||||||||||||||||||||||||||||||
Corporate | 2,016 | (49) | 1,174,039 | (6,928) | 1,176,055 | (6,977) | ||||||||||||||||||||||||||||||||
Municipal | — | — | 26,310 | (266) | 26,310 | (266) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed | 2,372 | (2) | 256,022 | (2,340) | 258,394 | (2,342) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,885 | (65) | 265,257 | (2,843) | 268,142 | (2,908) | ||||||||||||||||||||||||||||||||
Asset-backed | — | — | 433,875 | (350) | 433,875 | (350) | ||||||||||||||||||||||||||||||||
Total short-term and fixed maturity investments | $ | 7,273 | $ | (116) | $ | 2,600,242 | $ | (16,080) | $ | 2,607,515 | $ | (16,196) |
12 Months or Greater | Less Than 12 Months | Total | ||||||||||||||||||||||||||||||||||||
As of December 31, 2020 |
Fair
Value |
Gross Unrealized
Losses |
Fair
Value |
Gross Unrealized
Losses |
Fair
Value |
Gross Unrealized
Losses |
||||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 55,839 | $ | (834) | $ | 55,839 | $ | (834) | ||||||||||||||||||||||||||
Other government | — | — | 7,971 | (53) | 7,971 | (53) | ||||||||||||||||||||||||||||||||
Corporate | — | — | 199,048 | (1,224) | 199,048 | (1,224) | ||||||||||||||||||||||||||||||||
Municipal | — | — | 1,690 | (4) | 1,690 | (4) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed | 4,626 | (125) | 79,149 | (564) | 83,775 | (689) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 38 | (38) | 67,094 | (1,562) | 67,132 | (1,600) | ||||||||||||||||||||||||||||||||
Asset-backed | — | — | 116,827 | (564) | 116,827 | (564) | ||||||||||||||||||||||||||||||||
Total short-term and fixed maturity investments | $ | 4,664 | $ | (163) | $ | 527,618 | $ | (4,805) | $ | 532,282 | $ | (4,968) |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||
Other
government |
Corporate | Residential mortgage-backed |
Commercial
mortgage backed |
Asset-backed | Total | ||||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | (68) | $ | (12,206) | $ | — | $ | (264) | $ | — | $ | (12,538) | |||||||||||||||||||||||
Allowances for credit losses on securities for which credit losses were not previously recorded | — | (455) | (17) | (5) | (39) | (516) | |||||||||||||||||||||||||||||
Reductions for securities sold during the period | 1 | 61 | — | — | — | 62 | |||||||||||||||||||||||||||||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 26 | 5,429 | — | 112 | 39 | 5,606 | |||||||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | (41) | $ | (7,171) | $ | (17) | $ | (157) | $ | — | $ | (7,386) |
Three Months Ended June 30, 2020
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Other
government |
Corporate |
Commercial
mortgage backed |
Asset-backed | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | — | $ | (14,323) | $ | (1) | $ | — | $ | (14,324) | |||||||||||||||||||||||||||||||||||||||||||
Allowances for credit losses on securities for which credit losses were not previously recorded | — | (149) | (493) | (89) | (731) | ||||||||||||||||||||||||||||||||||||||||||||||||
Reductions for securities sold during the period | — | 1,388 | — | — | 1,388 | ||||||||||||||||||||||||||||||||||||||||||||||||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | — | 9,994 | — | — | 9,994 | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | — | $ | (3,090) | $ | (494) | $ | (89) | $ | (3,673) |
Six Months Ended June 30, 2021
|
|||||||||||||||||||||||||||||||||||
Other
government |
Corporate | Residential mortgage-backed |
Commercial
mortgage backed |
Asset-backed | Total | ||||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | — | $ | (181) | $ | — | $ | (133) | $ | (8) | $ | (322) | |||||||||||||||||||||||
Allowances for credit losses on securities for which credit losses were not previously recorded | (68) | (12,577) | (17) | (237) | (39) | (12,938) | |||||||||||||||||||||||||||||
Reductions for securities sold during the period | 1 | 72 | — | — | — | 73 | |||||||||||||||||||||||||||||
Decrease to the allowance for credit losses on securities that had an allowance recorded in the previous period | 26 | 5,515 | — | 213 | 47 | 5,801 | |||||||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | (41) | $ | (7,171) | $ | (17) | $ | (157) | $ | — | $ | (7,386) |
Six Months Ended June 30, 2020
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Other
government |
Corporate |
Commercial
mortgage backed |
Asset-backed | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses, beginning of period | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | (22) | (2,987) | (50) | — | (3,059) | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowances for credit losses on securities for which credit losses were not previously recorded | — | (1,876) | (444) | (89) | (2,409) | ||||||||||||||||||||||||||||||||||||||||||||||||
Reductions for securities sold during the period | — | 1,773 | — | — | 1,773 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reductions in the allowance for credit losses on securities we either intend to sell or more likely than not, we will be required to sell before the recovery of their amortized cost basis | 22 | — | — | — | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses, end of period | $ | — | $ | (3,090) | $ | (494) | $ | (89) | $ | (3,673) |
June 30, 2021 | December 31, 2020 | ||||||||||
Publicly traded equity investments in common and preferred stocks | $ | 304,701 | $ | 260,767 | |||||||
Exchange-traded funds | 504,793 | 311,287 | |||||||||
Privately held equity investments in common and preferred stocks | 348,725 | 274,741 | |||||||||
$ | 1,158,219 | $ | 846,795 |
June 30, 2021 | December 31, 2020 | |||||||||||||
Hedge funds (1)
|
$ | 73,130 | $ | 2,638,339 | ||||||||||
Fixed income funds | 603,889 | 552,541 | ||||||||||||
Equity funds | 5,617 | 190,767 | ||||||||||||
Private equity funds | 536,368 | 363,103 | ||||||||||||
CLO equities | 145,103 | 128,083 | ||||||||||||
CLO equity funds | 190,158 | 166,523 | ||||||||||||
Private credit funds | 242,359 | 192,319 | ||||||||||||
Others | 17,969 | 12,359 | ||||||||||||
$ | 1,814,593 | $ | 4,244,034 |
Less than 1 Year | 1-2 years | 2-3 years | More than 3 years | Not Eligible/ Restricted | Total | Redemption Frequency | |||||||||||||||||||||||||||||||||||
Hedge funds | $ | 73,130 | $ | — | $ | — | $ | — | $ | — | $ | 73,130 | Monthly to Bi-annually | ||||||||||||||||||||||||||||
Fixed income funds | 568,474 | — | — | — | 35,415 | 603,889 | Daily to Quarterly | ||||||||||||||||||||||||||||||||||
Equity funds | 5,617 | — | — | — | — | 5,617 | Daily | ||||||||||||||||||||||||||||||||||
Private equity funds | — | 50,950 | — | — | 485,418 | 536,368 | Quarterly | ||||||||||||||||||||||||||||||||||
CLO equities | 145,103 | — | — | — | — | 145,103 | Daily to Quarterly | ||||||||||||||||||||||||||||||||||
CLO equity funds | 172,776 | 11,260 | 5,757 | — | 365 | 190,158 | Quarterly to Bi-annually | ||||||||||||||||||||||||||||||||||
Private credit funds | — | — | — | — | 242,359 | 242,359 | N/A | ||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 17,969 | 17,969 | N/A | ||||||||||||||||||||||||||||||||||
$ | 965,100 | $ | 62,210 | $ | 5,757 | $ | — | $ | 781,526 | $ | 1,814,593 |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Ownership % | Carrying Value | Ownership % | Carrying Value | |||||||||||||||||||||||||||||||||||
Enhanzed Re | 47.4 | % | $ | 433,993 | 47.4 | % | $ | 330,289 | ||||||||||||||||||||||||||||||
Citco(1)
|
31.9 | % | 54,069 | 31.9 | % | 53,022 | ||||||||||||||||||||||||||||||||
Monument Re (2)
|
20.0 | % | 204,322 | 20.0 | % | 193,716 | ||||||||||||||||||||||||||||||||
Core Specialty | 24.7 | % | 224,270 | 25.2 | % | 235,000 | ||||||||||||||||||||||||||||||||
Other |
~27%
|
19,776 |
~27%
|
20,268 | ||||||||||||||||||||||||||||||||||
$ | 936,430 | $ | 832,295 |
June 30, 2021 | December 31, 2020 | ||||||||||
Short-term and fixed maturity investments, trading | $ | 1,019,256 | $ | 1,060,263 | |||||||
Cash and cash equivalents | 3,895 | 9,067 | |||||||||
Other assets | 5,352 | 5,560 | |||||||||
$ | 1,028,503 | $ | 1,074,890 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Funds held - Directly Managed - Fair Value Option | Funds held - Directly Managed - Variable Return | Total | Funds held - Directly Managed - Fair Value Option | Funds held - Directly Managed - Variable Return | Total | ||||||||||||||||||||||||||||||
Short-term and fixed maturity investments, at amortized cost | $ | 108,654 | $ | 843,482 | $ | 952,136 | $ | 106,938 | $ | 859,403 | $ | 966,341 | |||||||||||||||||||||||
Net unrealized gains: | |||||||||||||||||||||||||||||||||||
Change in fair value - fair value option accounting | 7,212 | — | 7,212 | 9,693 | — | 9,693 | |||||||||||||||||||||||||||||
Change in fair value - embedded derivative accounting | — | 59,908 | 59,908 | — | 84,229 | 84,229 | |||||||||||||||||||||||||||||
Short-term fixed maturity investments within funds held - directly managed, at fair value | $ | 115,866 | $ | 903,390 | $ | 1,019,256 | $ | 116,631 | $ | 943,632 | $ | 1,060,263 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Fixed maturity investments | $ | 46,996 | $ | 52,837 | $ | 92,477 | $ | 106,279 | |||||||||||||||
Short-term investments and cash and cash equivalents | (188) | 752 | (182) | 3,377 | |||||||||||||||||||
Funds held by reinsured companies | 32,420 | 24,099 | 32,008 | 24,369 | |||||||||||||||||||
Funds held - directly managed | 6,894 | 10,685 | 13,931 | 19,501 | |||||||||||||||||||
Investment income from fixed maturities and cash and cash equivalents | 86,122 | 88,373 | 138,234 | 153,526 | |||||||||||||||||||
Equity investments | 4,632 | 3,762 | 8,930 | 9,725 | |||||||||||||||||||
Other investments | 8,831 | 5,291 | 18,125 | 13,384 | |||||||||||||||||||
Investment income from equities and other investments | 13,463 | 9,053 | 27,055 | 23,109 | |||||||||||||||||||
Gross investment income | 99,585 | 97,426 | 165,289 | 176,635 | |||||||||||||||||||
Investment expenses | (3,267) | (2,983) | (6,882) | (7,478) | |||||||||||||||||||
Net investment expenses of the InRe Fund (1)
|
(20,171) | — | (20,171) | — | |||||||||||||||||||
Net investment income | $ | 76,147 | $ | 94,443 | $ | 138,236 | $ | 169,157 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net realized gains (losses) on sales: | |||||||||||||||||||||||
Gross realized gains on fixed maturity securities, AFS | $ | 3,494 | $ | 8,577 | $ | 8,265 | $ | 10,124 | |||||||||||||||
Gross realized losses on fixed maturity securities, AFS | (2,864) | (4,567) | (6,766) | (6,593) | |||||||||||||||||||
Decrease (increase) in allowance for expected credit losses on fixed maturity securities, AFS | 5,090 | 9,002 | (7,137) | (2,637) | |||||||||||||||||||
Net realized gains on fixed maturity securities, trading | 11,275 | 41,556 | 29,039 | 57,380 | |||||||||||||||||||
Net realized gains on funds held - directly managed | 728 | 1,741 | 1,252 | 2,253 | |||||||||||||||||||
Net realized gains on equity investments | 1,033 | 1,886 | 63 | 879 | |||||||||||||||||||
Net realized investment losses on investment derivatives | (259) | — | (80) | — | |||||||||||||||||||
Net realized gains of the InRe Fund (1)
|
321,705 | — | 321,705 | — | |||||||||||||||||||
Total net realized gains on sales | $ | 340,202 | $ | 58,195 | $ | 346,341 | $ | 61,406 | |||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||
Fixed maturity securities, trading | $ | 40,011 | $ | 300,948 | $ | (128,912) | $ | 44,471 | |||||||||||||||
Fixed maturity securities in funds held - directly managed | 17,530 | 60,107 | (26,660) | 34,805 | |||||||||||||||||||
Equity investments | 52,003 | 39,333 | 81,964 | (52,619) | |||||||||||||||||||
Other Investments (1)
|
60,500 | 143,971 | 139,983 | (69,712) | |||||||||||||||||||
Investment derivatives | (51) | — | 84 | — | |||||||||||||||||||
Net unrealized gains (losses) of the InRe Fund (1)
|
(104,975) | 365,054 | (28,368) | 320,196 | |||||||||||||||||||
Total net unrealized gains | $ | 65,018 | $ | 909,413 | $ | 38,091 | $ | 277,141 | |||||||||||||||
Net realized and unrealized gains | $ | 405,220 | $ | 967,608 | $ | 384,432 | $ | 338,547 | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Included within continuing operations: | |||||||||||||||||||||||
Gross realized gains on fixed maturity securities, AFS | $ | 3,494 | $ | 8,577 | $ | 8,265 | $ | 10,124 | |||||||||||||||
Gross realized losses on fixed maturity securities, AFS | (2,864) | (4,567) | (6,766) | (6,593) | |||||||||||||||||||
Tax effect | (101) | — | (376) | — | |||||||||||||||||||
Included within discontinued operations: | |||||||||||||||||||||||
Gross realized gains on fixed maturity securities, AFS | — | 269 | — | 536 | |||||||||||||||||||
Gross realized losses on fixed maturity securities, AFS | — | (57) | — | (57) | |||||||||||||||||||
Total reclassification adjustment | $ | 529 | $ | 4,222 | $ | 1,123 | $ | 4,010 | |||||||||||||||
Included within continuing operations: | |||||||||||||||||||||||
Credit losses on fixed maturity securities, AFS | $ | 5,090 | $ | 9,002 | $ | (7,137) | $ | (2,637) | |||||||||||||||
Tax effect | 4 | — | 206 | — | |||||||||||||||||||
Included within discontinued operations: | |||||||||||||||||||||||
Credit losses on fixed maturity securities, AFS | — | 1,760 | — | 187 | |||||||||||||||||||
Total reclassification adjustment | $ | 5,094 | $ | 10,762 | $ | (6,931) | $ | (2,450) |
June 30, 2021 | December 31, 2020 | |||||||||||||
Collateral in trust for third party agreements | $ | 5,529,480 | $ | 4,924,866 | ||||||||||
Assets on deposit with regulatory authorities | 230,361 | 131,283 | ||||||||||||
Collateral for secured letter of credit facilities | 98,561 | 104,627 | ||||||||||||
Funds at Lloyd's (1)
|
491,171 | 260,914 | ||||||||||||
$ | 6,349,573 | $ | 5,421,690 |
Amount of Gains (Losses) Deferred in AOCI | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Foreign currency forward - AUD | $ | 999 | $ | (7,435) | $ | 1,535 | $ | 1,036 | ||||||||||||||||||
Foreign currency forward - EUR | (1,552) | (3,111) | 7,782 | (476) | ||||||||||||||||||||||
Foreign currency forward - GBP | (502) | 505 | (3,690) | 21,317 | ||||||||||||||||||||||
Net gains (losses) on qualifying derivative hedges | $ | (1,055) | $ | (10,041) | $ | 5,627 | $ | 21,877 |
June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Gross Notional Amount | Fair Value | Gross Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||||||||
Foreign currency forward - AUD | $ | 27,436 | $ | 2,092 | $ | 831 | $ | 28,848 | $ | 882 | $ | 2,847 | ||||||||||||||||||||||||||
Foreign currency forward - CAD | 47,228 | 1,467 | 48 | 64,224 | 10 | 1,764 | ||||||||||||||||||||||||||||||||
Foreign currency forward - EUR | 80,569 | — | 2,064 | 43,531 | 1,782 | 41 | ||||||||||||||||||||||||||||||||
Foreign currency forward - GBP | 62,103 | 938 | 59 | 2,731 | 161 | 404 | ||||||||||||||||||||||||||||||||
Total non-qualifying hedges | $ | 217,336 | $ | 4,497 | $ | 3,002 | $ | 139,334 | $ | 2,835 | $ | 5,056 |
Gains (losses) on non-qualifying-hedges charged to net earnings | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Foreign currency forward - AUD | $ | 494 | $ | (2,978) | $ | 1,333 | $ | (445) | ||||||||||||||||||
Foreign currency forward - CAD | (480) | (2,225) | (1,289) | 2,771 | ||||||||||||||||||||||
Foreign currency forward - EUR | 274 | (224) | (2,051) | 952 | ||||||||||||||||||||||
Foreign currency forward - GBP | 338 | 924 | 718 | $ | 1,500 | |||||||||||||||||||||
Net gains (losses) on non-qualifying hedges | $ | 626 | $ | (4,503) | $ | (1,289) | $ | 4,778 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Gross Notional Amount | Fair Value | Gross Notional Amount | Fair Value | ||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||||
Futures contracts - long positions | $ | 14,699 | $ | 56 | $ | 7 | $ | 34,502 | $ | 32 | $ | 5 | |||||||||||||||||||||||
Futures contracts - short positions | (14,225) | 1 | 54 | (32,316) | 6 | 121 | |||||||||||||||||||||||||||||
Currency forward contracts - long positions - USD | 394 | 10 | — | 1,428 | — | 13 | |||||||||||||||||||||||||||||
Currency forward contracts - short positions - USD | (432) | — | 12 | (3,233) | 60 | — | |||||||||||||||||||||||||||||
Currency forward contracts - long positions - GBP | 7,432 | 7 | — | 1,278 | 19 | — | |||||||||||||||||||||||||||||
Currency forward contracts - short positions - GBP | (13,811) | — | 54 | (4,418) | 12 | — | |||||||||||||||||||||||||||||
Total | $ | (5,943) | $ | 74 | $ | 127 | $ | (2,759) | $ | 129 | $ | 139 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Credit default swaps
|
$ | (77) | — | $ | (77) | — | |||||||||||||||||
Futures contracts
|
(230) | (37) | 83 | (37) | |||||||||||||||||||
Currency forward contracts
|
(631) | 166 | (1,351) | 166 | |||||||||||||||||||
Total net losses
|
$ | (938) | 129 | $ | (1,345) | 129 |
June 30, 2021 | |||||||||||||||||||||||||||||
Run-off (1)
|
Legacy Underwriting (1)
|
Corporate & Other | Total | ||||||||||||||||||||||||||
Recoverable from reinsurers on unpaid: | |||||||||||||||||||||||||||||
Outstanding losses | $ | 1,179,211 | $ | 25,872 | $ | — | $ | 1,205,083 | |||||||||||||||||||||
IBNR | 563,115 | 49,444 | — | 612,559 | |||||||||||||||||||||||||
ULAE | 16,901 | 954 | — | 17,855 | |||||||||||||||||||||||||
Fair value adjustments - acquired companies | — | — | (14,165) | (14,165) | |||||||||||||||||||||||||
Fair value adjustments - fair value option | — | — | (33,607) | (33,607) | |||||||||||||||||||||||||
Total reinsurance reserves recoverable | 1,759,227 | 76,270 | (47,772) | 1,787,725 | |||||||||||||||||||||||||
Paid losses recoverable | 188,602 | 400 | — | 189,002 | |||||||||||||||||||||||||
Total | $ | 1,947,829 | $ | 76,670 | $ | (47,772) | $ | 1,976,727 | |||||||||||||||||||||
Reconciliation to Condensed Consolidated Balance Sheet: | |||||||||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses | $ | 1,421,879 | $ | 76,670 | $ | (14,165) | $ | 1,484,384 | |||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | 525,950 | — | (33,607) | 492,343 | |||||||||||||||||||||||||
Total | $ | 1,947,829 | $ | 76,670 | $ | (47,772) | $ | 1,976,727 | |||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total | ||||||||||||||||||||||||||
Recoverable from reinsurers on unpaid: | |||||||||||||||||||||||||||||
Outstanding losses | $ | 938,231 | $ | 263,638 | $ | — | $ | 1,201,869 | |||||||||||||||||||||
IBNR | 508,082 | 139,761 | — | 647,843 | |||||||||||||||||||||||||
ULAE | 16,688 | — | — | 16,688 | |||||||||||||||||||||||||
Fair value adjustments - acquired companies | — | — | (15,353) | (15,353) | |||||||||||||||||||||||||
Fair value adjustments - fair value option | — | — | (21,427) | (21,427) | |||||||||||||||||||||||||
Total reinsurance reserves recoverable | 1,463,001 | 403,399 | (36,780) | 1,829,620 | |||||||||||||||||||||||||
Paid losses recoverable | 172,309 | 87,234 | — | 259,543 | |||||||||||||||||||||||||
Total | $ | 1,635,310 | $ | 490,633 | $ | (36,780) | $ | 2,089,163 | |||||||||||||||||||||
Reconciliation to Condensed Consolidated Balance Sheet: | |||||||||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses | $ | 1,093,053 | $ | 490,633 | $ | (15,353) | $ | 1,568,333 | |||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses - fair value option | 542,257 | — | (21,427) | 520,830 | |||||||||||||||||||||||||
Total | $ | 1,635,310 | $ | 490,633 | $ | (36,780) | $ | 2,089,163 |
June 30, 2021 | |||||||||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total |
% of
Total |
|||||||||||||||||||||||||||||||
Top 10 reinsurers | $ | 1,305,706 | $ | 20,978 | $ | — | $ | 1,326,684 | 67.1 | % | |||||||||||||||||||||||||
Other reinsurers > $1 million | 619,145 | 55,083 | (47,772) | 626,456 | 31.7 | % | |||||||||||||||||||||||||||||
Other reinsurers < $1 million | 22,978 | 609 | — | 23,587 | 1.2 | % | |||||||||||||||||||||||||||||
Total | $ | 1,947,829 | $ | 76,670 | $ | (47,772) | $ | 1,976,727 | 100.0 | % |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total |
% of
Total |
|||||||||||||||||||||||||||||||
Top 10 reinsurers | $ | 1,036,676 | $ | 327,917 | $ | — | $ | 1,364,593 | 65.3 | % | |||||||||||||||||||||||||
Other reinsurers > $1 million | 574,869 | 159,513 | (36,780) | 697,602 | 33.4 | % | |||||||||||||||||||||||||||||
Other reinsurers < $1 million | 23,765 | 3,203 | — | 26,968 | 1.3 | % | |||||||||||||||||||||||||||||
Total | $ | 1,635,310 | $ | 490,633 | $ | (36,780) | $ | 2,089,163 | 100.0 | % |
June 30, 2021 | December 31, 2020 | ||||||||||
Information regarding top ten reinsurers: | |||||||||||
Number of top 10 reinsurers rated A- or better | 7 | 7 | |||||||||
Number of top 10 non-rated reinsurers (1)
|
3 | 3 | |||||||||
Reinsurers rated A- or better in top 10 | $ | 803,312 | $ | 863,819 | |||||||
Non-rated reinsurers in top 10 (1)
|
523,372 | 500,774 | |||||||||
Total top 10 reinsurance recoverables | $ | 1,326,684 | $ | 1,364,593 | |||||||
Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of June 30, 2021 and December 31, 2020: | |||||||||||
Lloyd's Syndicates (2)
|
$ | 327,940 | $ | 331,118 | |||||||
Michigan Catastrophic Claims Association(3)
|
$ | 227,279 | $ | 229,374 | |||||||
Enhanzed Re(4)
|
$ | 226,003 | $ | — |
June 30, 2021 | |||||||||||||||||||||||
Gross | Allowance for estimated uncollectible reinsurance | Net |
Provisions as a
% of Gross |
||||||||||||||||||||
Reinsurers rated A- or above | $ | 1,385,215 | $ | 61,010 | $ | 1,324,205 | 4.4 | % | |||||||||||||||
Reinsurers rated below A-, secured | 599,123 | — | 599,123 | — | % | ||||||||||||||||||
Reinsurers rated below A-, unsecured | 132,877 | 79,478 | 53,399 | 59.8 | % | ||||||||||||||||||
Total | $ | 2,117,215 | $ | 140,488 | $ | 1,976,727 | 6.6 | % |
December 31, 2020 | |||||||||||||||||||||||||||||
Gross | Allowance for estimated uncollectible reinsurance | Net |
Provisions as a
% of Gross |
||||||||||||||||||||||||||
Reinsurers rated A- or above | $ | 1,464,529 | $ | 60,801 | $ | 1,403,728 | 4.2 | % | |||||||||||||||||||||
Reinsurers rated below A-, secured | 608,999 | — | 608,999 | — | % | ||||||||||||||||||||||||
Reinsurers rated below A-, unsecured | 152,757 | 76,321 | 76,436 | 50.0 | % | ||||||||||||||||||||||||
Total | $ | 2,226,285 | $ | 137,122 | $ | 2,089,163 | 6.2 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Allowance for estimated uncollectible reinsurance, beginning of period | $ | 138,765 | $ | 143,327 | $ | 137,122 | $ | 147,639 | |||||||||||||||
Cumulative effect of change in accounting principle on allowance for estimated uncollectible reinsurance (1)
|
— | — | — | (195) | |||||||||||||||||||
Effect of exchange rate movement | 2 | (1,446) | 160 | (1,446) | |||||||||||||||||||
Current period change in the allowance | 1,721 | 2,584 | 3,738 | (1,533) | |||||||||||||||||||
Write-offs charged against the allowance | — | (600) | — | (600) | |||||||||||||||||||
Recoveries collected | — | (212) | (532) | (212) | |||||||||||||||||||
Allowance for estimated uncollectible reinsurance, end of period | $ | 140,488 | $ | 143,653 | $ | 140,488 | $ | 143,653 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Beginning carrying value | $ | 360,785 | $ | 257,832 | $ | 238,602 | $ | 272,462 | |||||||||||||||
Recorded during the period | 98,131 | 11,746 | 229,012 | 11,746 | |||||||||||||||||||
Amortization | (23,765) | (11,062) | (32,463) | (25,692) | |||||||||||||||||||
Ending carrying value | $ | 435,151 | $ | 258,516 | $ | 435,151 | $ | 258,516 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Beginning carrying value | $ | 19,251 | $ | 12,578 | $ | 19,880 | $ | 12,875 | |||||||||||||||
Recorded during the period | 1,562 | — | 1,562 | — | |||||||||||||||||||
Amortization | (754) | (662) | (1,383) | (959) | |||||||||||||||||||
Ending carrying value | $ | 20,059 | $ | 11,916 | $ | 20,059 | $ | 11,916 |
June 30, 2021 | |||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total | ||||||||||||||||||||||||||
Outstanding losses | $ | 5,604,831 | $ | 94,652 | $ | — | $ | 5,699,483 | |||||||||||||||||||||
IBNR | 7,022,204 | 143,890 | — | 7,166,094 | |||||||||||||||||||||||||
ULAE | 428,626 | 2,369 | — | 430,995 | |||||||||||||||||||||||||
Fair value adjustments - acquired companies | — | — | (133,853) | (133,853) | |||||||||||||||||||||||||
Fair value adjustments - fair value option | — | — | (124,861) | (124,861) | |||||||||||||||||||||||||
Total | $ | 13,055,661 | $ | 240,911 | $ | (258,714) | $ | 13,037,858 | |||||||||||||||||||||
Reconciliation to Condensed Consolidated Balance Sheet: | |||||||||||||||||||||||||||||
Loss and loss adjustment expenses | $ | 10,696,695 | $ | 240,911 | $ | (133,853) | $ | 10,803,753 | |||||||||||||||||||||
Loss and loss adjustment expenses, at fair value | 2,358,966 | — | (124,861) | 2,234,105 | |||||||||||||||||||||||||
Total | $ | 13,055,661 | $ | 240,911 | $ | (258,714) | $ | 13,037,858 |
December 31, 2020 | |||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total | ||||||||||||||||||||||||||
Outstanding losses | $ | 4,440,425 | $ | 687,424 | $ | — | $ | 5,127,849 | |||||||||||||||||||||
IBNR | 4,641,500 | 636,003 | — | 5,277,503 | |||||||||||||||||||||||||
ULAE | 350,600 | 35,102 | — | 385,702 | |||||||||||||||||||||||||
Fair value adjustments - acquired companies | — | — | (143,183) | (143,183) | |||||||||||||||||||||||||
Fair value adjustments - fair value option | — | — | (54,589) | (54,589) | |||||||||||||||||||||||||
Total | $ | 9,432,525 | $ | 1,358,529 | $ | (197,772) | $ | 10,593,282 | |||||||||||||||||||||
Reconciliation to Condensed Consolidated Balance Sheet: | |||||||||||||||||||||||||||||
Loss and loss adjustment expenses | $ | 6,925,016 | $ | 1,358,529 | $ | (143,183) | $ | 8,140,362 | |||||||||||||||||||||
Loss and loss adjustment expenses, at fair value | 2,507,509 | — | (54,589) | 2,452,920 | |||||||||||||||||||||||||
Total | $ | 9,432,525 | $ | 1,358,529 | $ | (197,772) | $ | 10,593,282 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Balance as of beginning of period | $ | 11,427,420 | $ | 9,836,797 | $ | 10,593,282 | $ | 9,868,404 | |||||||||||||||
Add: losses and LAE relating to SGL No.1 (1)
|
— | — | 254,561 | — | |||||||||||||||||||
11,427,420 | 9,836,797 | 10,847,843 | 9,868,404 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||
Reinsurance reserves recoverable (2)
|
1,869,535 | 1,902,749 | 1,829,620 | 1,927,624 | |||||||||||||||||||
Reinsurance reserves recoverable relating to SGL No1 (1)
|
— | — | 90,792 | — | |||||||||||||||||||
1,869,535 | 1,902,749 | 1,920,412 | 1,927,624 | ||||||||||||||||||||
Less: net deferred charge assets and deferred gain liabilities on retroactive reinsurance | 341,534 | 245,254 | 218,722 | 259,587 | |||||||||||||||||||
Less: cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible reinsurance balances (3)
|
— | — | — | 643 | |||||||||||||||||||
Net balance as of beginning of period | 9,216,351 | 7,688,794 | 8,708,709 | 7,680,550 | |||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | 49,165 | 119,613 | 103,225 | 235,118 | |||||||||||||||||||
Prior periods | (9,861) | 67,079 | (119,428) | (5,126) | |||||||||||||||||||
Total net incurred losses and LAE | 39,304 | 186,692 | (16,203) | 229,992 | |||||||||||||||||||
Net paid losses: | |||||||||||||||||||||||
Current period | (5,892) | (11,303) | (12,394) | (15,110) | |||||||||||||||||||
Prior periods | (354,667) | (369,984) | (690,697) | (726,003) | |||||||||||||||||||
Total net paid losses | (360,559) | (381,287) | (703,091) | (741,113) | |||||||||||||||||||
Effect of exchange rate movement | 2,510 | 40,153 | (6,261) | (106,227) | |||||||||||||||||||
Assumed business (4)
|
1,965,559 | 954,323 | 2,880,011 | 1,425,473 | |||||||||||||||||||
Ceded business | (28,124) | — | (28,124) | — | |||||||||||||||||||
Net balance as of June 30 | 10,835,041 | 8,488,675 | 10,835,041 | 8,488,675 | |||||||||||||||||||
Plus: reinsurance reserves recoverable (2)
|
1,787,725 | 1,858,161 | 1,787,725 | 1,858,161 | |||||||||||||||||||
Plus: net deferred charge assets and deferred gain liabilities on retroactive reinsurance (5)
|
415,092 | 246,600 | 415,092 | 246,600 | |||||||||||||||||||
Balance as of June 30 | $ | 13,037,858 | $ | 10,593,436 | $ | 13,037,858 | $ | 10,593,436 |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net losses paid | $ | 357,194 | $ | 3,365 | $ | — | $ | 360,559 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(122,747) | 5,264 | — | (117,483) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(235,698) | 1,899 | — | (233,799) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (1,251) | 10,528 | — | 9,277 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(15,746) | (247) | — | (15,993) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charge assets and deferred gain liabilities (4)
|
— | — | 23,011 | 23,011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments (5)
|
— | — | 5,296 | 5,296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value - fair value option (6)
|
— | — | 17,713 | 17,713 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (16,997) | $ | 10,281 | $ | 46,020 | $ | 39,304 |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net losses paid | $ | 283,402 | $ | 97,885 | $ | — | $ | 381,287 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(76,106) | (29,359) | — | (105,465) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(255,120) | (1,029) | — | (256,149) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (47,824) | 67,497 | — | 19,673 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(12,425) | 27,885 | — | 15,460 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charge assets and deferred gain liabilities (4)
|
— | — | 10,400 | 10,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments (5)
|
— | — | 7,116 | 7,116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value - fair value option (6)
|
— | — | 134,043 | 134,043 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (60,249) | $ | 95,382 | $ | 151,559 | $ | 186,692 |
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net losses paid | $ | 687,823 | $ | 15,268 | $ | — | $ | 703,091 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(242,110) | (2,507) | — | (244,617) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(429,641) | 2,688 | — | (426,953) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | 16,072 | 15,449 | — | 31,521 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(28,444) | (690) | — | (29,134) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charge assets and deferred gain liabilities (4)
|
— | — | 31,080 | 31,080 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments (5)
|
— | — | 8,089 | 8,089 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value - fair value option (6)
|
— | — | (57,759) | (57,759) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (12,372) | $ | 14,759 | $ | (18,590) | $ | (16,203) |
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Run-off | Legacy Underwriting | Corporate & Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net losses paid | $ | 542,368 | $ | 198,745 | $ | — | $ | 741,113 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(250,686) | (64,547) | — | (315,233) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(359,220) | 38,220 | — | (321,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (67,538) | 172,418 | — | 104,880 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(19,904) | 28,495 | — | 8,591 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charge assets and deferred gain liabilities (4)
|
— | — | 24,733 | 24,733 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments (5)
|
— | — | 15,982 | 15,982 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value - fair value option (6)
|
— | — | 75,806 | 75,806 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (87,442) | $ | 200,913 | $ | 116,521 | $ | 229,992 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Balance as of beginning of period | $ | 11,467,367 | $ | 8,652,532 | $ | 9,432,525 | $ | 8,683,983 | |||||||||||||||
Less: reinsurance reserves recoverable (1)
|
1,835,796 | 1,568,296 | 1,463,001 | 1,645,352 | |||||||||||||||||||
Plus: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (2)
|
— | — | — | 703 | |||||||||||||||||||
Net balance as of beginning of period | 9,631,571 | 7,084,236 | 7,969,524 | 7,039,334 | |||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | 41,409 | 8,086 | 85,570 | 15,935 | |||||||||||||||||||
Prior periods | (58,406) | (68,335) | (97,942) | (103,377) | |||||||||||||||||||
Total net incurred losses and LAE | (16,997) | (60,249) | (12,372) | (87,442) | |||||||||||||||||||
Net paid losses: | |||||||||||||||||||||||
Current period | 519 | 202 | (2,756) | (1,038) | |||||||||||||||||||
Prior periods | (357,713) | (283,604) | (685,067) | (541,330) | |||||||||||||||||||
Total net paid losses | (357,194) | (283,402) | (687,823) | (542,368) | |||||||||||||||||||
Effect of exchange rate movement | 5,050 | 30,606 | (7,362) | (109,483) | |||||||||||||||||||
Assumed business (3)
|
2,063,690 | 966,069 | 3,109,023 | 1,437,219 | |||||||||||||||||||
Ceded business | (29,686) | — | (29,686) | — | |||||||||||||||||||
Transfer from the Legacy Underwriting segment (4)
|
— | — | 955,130 | — | |||||||||||||||||||
Net balance as of June 30 | 11,296,434 | 7,737,260 | 11,296,434 | 7,737,260 | |||||||||||||||||||
Plus: reinsurance reserves recoverable (1)
|
1,759,227 | 1,494,652 | 1,759,227 | 1,494,652 | |||||||||||||||||||
Balance as of June 30 | $ | 13,055,661 | $ | 9,231,912 | $ | 13,055,661 | $ | 9,231,912 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior
Period |
Current
Period |
Total |
Prior
Period |
Current
Period |
Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | 357,713 | $ | (519) | $ | 357,194 | $ | 283,604 | $ | (202) | $ | 283,402 | |||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(129,991) | 7,244 | (122,747) | (75,276) | (830) | (76,106) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(269,418) | 33,720 | (235,698) | (264,238) | 9,118 | (255,120) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (41,696) | 40,445 | (1,251) | (55,910) | 8,086 | (47,824) | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(16,710) | 964 | (15,746) | (12,425) | — | (12,425) | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (58,406) | $ | 41,409 | $ | (16,997) | $ | (68,335) | $ | 8,086 | $ | (60,249) |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior
Period |
Current
Period |
Total |
Prior
Period |
Current
Period |
Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | 685,067 | $ | 2,756 | $ | 687,823 | $ | 541,330 | $ | 1,038 | $ | 542,368 | |||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(247,147) | 5,037 | (242,110) | (251,528) | 842 | (250,686) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(504,983) | 75,342 | (429,641) | (373,275) | 14,055 | (359,220) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (67,063) | 83,135 | 16,072 | (83,473) | 15,935 | (67,538) | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(30,879) | 2,435 | (28,444) | (19,904) | — | (19,904) | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (97,942) | $ | 85,570 | $ | (12,372) | $ | (103,377) | $ | 15,935 | $ | (87,442) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Balance as of beginning of period | $ | 249,096 | $ | 1,616,527 | $ | 1,358,529 | $ | 1,569,865 | |||||||||||||||
Add: losses and LAE relating to SGL No.1 (1)
|
— | — | 254,561 | — | |||||||||||||||||||
249,096 | 1,616,527 | 1,613,090 | 1,569,865 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||
Reinsurance reserves recoverable (2)
|
88,957 | 442,905 | 403,399 | 385,613 | |||||||||||||||||||
Reinsurance recoverable relating to SGL No.1 (1)
|
— | — | 90,792 | — | |||||||||||||||||||
88,957 | 442,905 | 494,191 | 385,613 | ||||||||||||||||||||
Less: cumulative effect of change in accounting principal on allowance for estimated uncollectible reinsurance (3)
|
— | — | — | 1,346 | |||||||||||||||||||
Net balance as of beginning of period | 160,139 | 1,173,622 | 1,118,899 | 1,182,906 | |||||||||||||||||||
Net incurred losses and LAE: | |||||||||||||||||||||||
Current period | 7,756 | 111,527 | 17,655 | 219,183 | |||||||||||||||||||
Prior periods | 2,525 | (16,145) | (2,896) | (18,270) | |||||||||||||||||||
Total net incurred losses and LAE | 10,281 | 95,382 | 14,759 | 200,913 | |||||||||||||||||||
Net paid losses: | |||||||||||||||||||||||
Current period | (6,411) | (11,505) | (9,638) | (14,072) | |||||||||||||||||||
Prior periods | 3,046 | (86,380) | (5,630) | (184,673) | |||||||||||||||||||
Total net paid losses | (3,365) | (97,885) | (15,268) | (198,745) | |||||||||||||||||||
Effect of exchange rate movement | (2,414) | 9,990 | 1,381 | (3,965) | |||||||||||||||||||
Transfer to Run-off segment (4)
|
— | — | (955,130) | — | |||||||||||||||||||
Net balance as of June 30 | 164,641 | 1,181,109 | 164,641 | 1,181,109 | |||||||||||||||||||
Plus: reinsurance reserves recoverable (1)
|
76,270 | 429,847 | 76,270 | 429,847 | |||||||||||||||||||
Balance as of June 30 | $ | 240,911 | $ | 1,610,956 | $ | 240,911 | $ | 1,610,956 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | (3,046) | $ | 6,411 | $ | 3,365 | $ | 86,380 | $ | 11,505 | $ | 97,885 | |||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
7,838 | (2,574) | 5,264 | (29,802) | 443 | (29,359) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(1,954) | 3,853 | 1,899 | (72,997) | 71,968 | (1,029) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | 2,838 | 7,690 | 10,528 | (16,419) | 83,916 | 67,497 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(313) | 66 | (247) | 274 | 27,611 | 27,885 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | 2,525 | $ | 7,756 | $ | 10,281 | $ | (16,145) | $ | 111,527 | $ | 95,382 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | 5,630 | $ | 9,638 | $ | 15,268 | $ | 184,673 | $ | 14,072 | $ | 198,745 | |||||||||||||||||||||||
Net change in case and LAE reserves(1)
|
(4,692) | 2,185 | (2,507) | (73,340) | 8,793 | (64,547) | |||||||||||||||||||||||||||||
Net change in IBNR reserves(2)
|
(3,304) | 5,992 | 2,688 | (129,786) | 168,006 | 38,220 | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (2,366) | 17,815 | 15,449 | (18,453) | 190,871 | 172,418 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE(3)
|
(530) | (160) | (690) | 183 | 28,312 | 28,495 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (2,896) | $ | 17,655 | $ | 14,759 | $ | (18,270) | $ | 219,183 | $ | 200,913 |
June 30, 2021 | December 31, 2020 | ||||||||||
Defendant asbestos and environmental liabilities: | |||||||||||
Defendant asbestos liabilities | $ | 877,894 | $ | 913,276 | |||||||
Defendant environmental liabilities | 12,074 | 12,572 | |||||||||
Estimated future expenses | 39,002 | 42,510 | |||||||||
Fair value adjustments | (251,051) | (262,029) | |||||||||
Defendant asbestos and environmental liabilities | 677,919 | 706,329 | |||||||||
Insurance balances recoverable: | |||||||||||
Insurance recoveries related to defendant asbestos liabilities (net of allowance: 2021 - $5,822; 2020 - $4,824)
|
305,948 | 310,602 | |||||||||
Fair value adjustments | (59,969) | (60,950) | |||||||||
Insurance balances recoverable | 245,979 | 249,652 | |||||||||
Net liabilities relating to defendant asbestos and environmental exposures | $ | 431,940 | $ | 456,677 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Balance as of beginning of period | $ | 691,557 | $ | 822,716 | $ | 706,329 | $ | 847,685 | |||||||||||||||
Less: Insurance balances recoverable | 248,010 | 435,613 | 249,652 | 448,855 | |||||||||||||||||||
Plus: Cumulative effect of change in accounting principle on the determination of the allowance for estimated uncollectible insurance balances (1)
|
— | — | — | 3,167 | |||||||||||||||||||
Net balance as of beginning of period | 443,547 | 387,103 | 456,677 | 401,997 | |||||||||||||||||||
Total net paid claims | (10,916) | (7,495) | (17,224) | (914) | |||||||||||||||||||
Amounts recorded in other income: | |||||||||||||||||||||||
Reduction in estimates of ultimate net liabilities | (4,450) | (1,978) | (14,002) | (26,893) | |||||||||||||||||||
Reduction in estimated future expenses | (745) | (975) | (3,508) | (3,003) | |||||||||||||||||||
Amortization of fair value adjustments | 4,504 | 3,130 | 9,997 | 8,598 | |||||||||||||||||||
Total other income | (691) | 177 | (7,513) | (21,298) | |||||||||||||||||||
Net balance as at June 30
|
431,940 | 379,785 | 431,940 | 379,785 | |||||||||||||||||||
Plus: Insurance balances recoverable (2)
|
245,979 | 428,277 | 245,979 | 428,277 | |||||||||||||||||||
Balance as at June 30
|
$ | 677,919 | $ | 808,062 | $ | 677,919 | $ | 808,062 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Allowance for estimated uncollectible insurance balances, beginning of period | $ | 5,272 | $ | 6,985 | $ | 4,824 | $ | 3,818 | |||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | 3,167 | |||||||||||||||||||
Current period change in the allowance | 550 | 1,361 | 998 | 1,361 | |||||||||||||||||||
Allowance for estimated uncollectible insurance balances, end of period | $ | 5,822 | $ | 8,346 | $ | 5,822 | $ | 8,346 |
June 30, 2021 | ||||||||||||||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Fair Value Based on NAV as Practical Expedient |
Total Fair
Value |
||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Short-term and fixed maturity investments: | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | 789,439 | $ | — | $ | — | $ | 789,439 | ||||||||||||||||||||||
U.K. government | — | 41,696 | — | — | 41,696 | |||||||||||||||||||||||||||
Other government | — | 480,279 | — | — | 480,279 | |||||||||||||||||||||||||||
Corporate | — | 6,652,998 | — | — | 6,652,998 | |||||||||||||||||||||||||||
Municipal | — | 244,459 | — | — | 244,459 | |||||||||||||||||||||||||||
Residential mortgage-backed | — | 572,239 | — | — | 572,239 | |||||||||||||||||||||||||||
Commercial mortgage-backed | — | 987,254 | — | — | 987,254 | |||||||||||||||||||||||||||
Asset-backed | — | 935,593 | — | — | 935,593 | |||||||||||||||||||||||||||
$ | — | $ | 10,703,957 | $ | — | $ | — | $ | 10,703,957 | |||||||||||||||||||||||
Other assets included within funds held - directly managed | $ | — | $ | 9,247 | $ | — | $ | — | $ | 9,247 | ||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||
Publicly traded equity investments | $ | 263,046 | $ | 41,655 | $ | — | $ | — | $ | 304,701 | ||||||||||||||||||||||
Exchange-traded funds | 504,793 | — | — | — | 504,793 | |||||||||||||||||||||||||||
Privately held equity investments | — | — | 348,725 | — | 348,725 | |||||||||||||||||||||||||||
$ | 767,839 | $ | 41,655 | $ | 348,725 | $ | — | $ | 1,158,219 | |||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||||||||
Hedge funds (1)
|
$ | — | $ | — | $ | — | $ | 73,130 | $ | 73,130 | ||||||||||||||||||||||
Fixed income funds | — | 266,889 | — | 337,000 | 603,889 | |||||||||||||||||||||||||||
Equity funds | — | 5,617 | — | — | 5,617 | |||||||||||||||||||||||||||
Private equity funds | — | — | — | 536,368 | 536,368 | |||||||||||||||||||||||||||
CLO equities | — | 145,103 | — | — | 145,103 | |||||||||||||||||||||||||||
CLO equity funds | — | — | — | 190,158 | 190,158 | |||||||||||||||||||||||||||
Private credit funds | — | — | — | 242,359 | 242,359 | |||||||||||||||||||||||||||
Other | — | — | 314 | 17,655 | 17,969 | |||||||||||||||||||||||||||
$ | — | $ | 417,609 | $ | 314 | $ | 1,396,670 | $ | 1,814,593 | |||||||||||||||||||||||
Total Investments | $ | 767,839 | $ | 11,172,468 | $ | 349,039 | $ | 1,396,670 | $ | 13,686,016 | ||||||||||||||||||||||
Cash and cash equivalents | $ | 414,623 | $ | 33,005 | $ | — | $ | — | $ | 447,628 | ||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses: | $ | — | $ | — | $ | 492,343 | $ | — | $ | 492,343 | ||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedging | $ | — | $ | 17,583 | $ | — | $ | — | $ | 17,583 | ||||||||||||||||||||||
Derivatives not qualifying as hedging | — | 4,571 | — | — | 4,571 | |||||||||||||||||||||||||||
Derivative instruments | $ | — | $ | 22,154 | $ | — | $ | — | $ | 22,154 | ||||||||||||||||||||||
Losses and LAE: | $ | — | $ | — | $ | 2,234,105 | $ | — | $ | 2,234,105 | ||||||||||||||||||||||
Other Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedging | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||||||||||||||||
Derivatives not qualifying as hedging | — | 3,129 | — | — | 3,129 | |||||||||||||||||||||||||||
Derivative instruments | $ | — | $ | 3,131 | $ | — | $ | — | $ | 3,131 |
December 31, 2020 | ||||||||||||||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant
Other Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Fair Value Based on NAV as Practical Expedient |
Total Fair
Value |
||||||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Short-term and fixed maturity investments: | ||||||||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | 951,048 | $ | — | $ | — | $ | 951,048 | ||||||||||||||||||||||
U.K government | — | 51,082 | — | — | 51,082 | |||||||||||||||||||||||||||
Other government | — | 502,153 | — | — | 502,153 | |||||||||||||||||||||||||||
Corporate | — | 5,686,732 | — | — | 5,686,732 | |||||||||||||||||||||||||||
Municipal | — | 162,669 | — | — | 162,669 | |||||||||||||||||||||||||||
Residential mortgage-backed | — | 553,945 | — | — | 553,945 | |||||||||||||||||||||||||||
Commercial mortgage-backed | — | 854,090 | — | — | 854,090 | |||||||||||||||||||||||||||
Asset-backed | — | 557,460 | — | — | 557,460 | |||||||||||||||||||||||||||
$ | — | $ | 9,319,179 | $ | — | $ | — | $ | 9,319,179 | |||||||||||||||||||||||
Other assets included within funds held - directly managed | $ | — | $ | 14,627 | $ | — | $ | — | $ | 14,627 | ||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||
Publicly traded equity investments | $ | 229,167 | $ | 31,600 | $ | — | $ | — | $ | 260,767 | ||||||||||||||||||||||
Exchange-traded funds | 311,287 | — | — | — | 311,287 | |||||||||||||||||||||||||||
Privately held equity investments | — | — | 274,741 | — | 274,741 | |||||||||||||||||||||||||||
$ | 540,454 | $ | 31,600 | $ | 274,741 | $ | — | $ | 846,795 | |||||||||||||||||||||||
Other investments: | ||||||||||||||||||||||||||||||||
Hedge funds (1)
|
$ | — | $ | — | $ | — | $ | 2,638,339 | $ | 2,638,339 | ||||||||||||||||||||||
Fixed income funds | — | 285,837 | — | 266,704 | 552,541 | |||||||||||||||||||||||||||
Equity funds | — | 5,073 | — | 185,694 | 190,767 | |||||||||||||||||||||||||||
Private equity funds | — | — | — | 363,103 | 363,103 | |||||||||||||||||||||||||||
CLO equities | — | 128,083 | — | — | 128,083 | |||||||||||||||||||||||||||
CLO equity funds | — | — | — | 166,523 | 166,523 | |||||||||||||||||||||||||||
Private credit funds | — | — | 9,250 | 183,069 | 192,319 | |||||||||||||||||||||||||||
Other | — | — | 314 | 12,045 | 12,359 | |||||||||||||||||||||||||||
$ | — | $ | 418,993 | $ | 9,564 | $ | 3,815,477 | $ | 4,244,034 | |||||||||||||||||||||||
Total Investments | $ | 540,454 | $ | 9,784,399 | $ | 284,305 | $ | 3,815,477 | $ | 14,424,635 | ||||||||||||||||||||||
Cash and cash equivalents | $ | 385,790 | $ | 208,272 | $ | — | $ | — | $ | 594,062 | ||||||||||||||||||||||
Reinsurance balances recoverable on paid and unpaid losses: | $ | — | $ | — | $ | 520,830 | $ | — | $ | 520,830 | ||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedging | $ | — | $ | 1,169 | $ | — | $ | — | $ | 1,169 | ||||||||||||||||||||||
Derivatives not qualifying as hedging | — | 2,964 | — | — | 2,964 | |||||||||||||||||||||||||||
Derivative instruments | $ | — | $ | 4,133 | $ | — | $ | — | $ | 4,133 | ||||||||||||||||||||||
Losses and LAE: | $ | — | $ | — | $ | 2,452,920 | $ | — | $ | 2,452,920 | ||||||||||||||||||||||
Other Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives qualifying as hedging | $ | — | $ | 28,947 | $ | — | $ | — | $ | 28,947 | ||||||||||||||||||||||
Derivatives not qualifying as hedging | — | 5,195 | — | — | 5,195 | |||||||||||||||||||||||||||
Derivative instruments | $ | — | $ | 34,142 | $ | — | $ | — | $ | 34,142 |
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Privately-held Equities | Other Investments | Total | Privately-held Equities | Other Investments | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | 330,404 | $ | 9,564 | $ | 339,968 | $ | 267,012 | $ | 314 | $ | 267,326 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 19,652 | — | 19,652 | 34 | — | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and paydowns | — | (9,250) | (9,250) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | (1,331) | — | (1,331) | 3,954 | — | 3,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer out of Level 3 into Level 2 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending fair value | $ | 348,725 | $ | 314 | $ | 349,039 | $ | 271,000 | $ | 314 | $ | 271,314 |
Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Privately-held Equities | Other Investments | Total | Privately-held Equities | Other Investments | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning fair value | $ | 274,741 | $ | 9,564 | $ | 284,305 | $ | 265,799 | $ | 87,869 | $ | 353,668 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 76,844 | — | 76,844 | 1,392 | 37,092 | 38,484 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and paydowns | — | (9,250) | (9,250) | — | (539) | (539) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized and unrealized losses | (2,860) | — | (2,860) | 3,809 | (40,368) | (36,559) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfer out of Level 3 into Level 2 | — | — | — | — | (83,740) | (83,740) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending fair value | $ | 348,725 | $ | 314 | $ | 349,039 | $ | 271,000 | $ | 314 | $ | 271,314 |
Qualitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||
Fair Value as of June 30, 2021 | Valuation Techniques | Unobservable Input |
Range (Average) (1)
|
||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||
$ | 227.4 | Guideline company methodology | Distribution waterfall | 12.8 | |||||||||||||||||||
41.0 | Cost as approximation of fair value | Cost as approximation of fair value | |||||||||||||||||||||
68.5 | Transaction price approximates fair value |
Discount rate
Exit multiple |
10% - 12.5% (11.3%)
1.2x - 1.3x (1.3x)
|
||||||||||||||||||||
12.1 |
Net Asset Value (2)
|
NAV at recent transaction | 19.9 | ||||||||||||||||||||
$ | 349.0 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Liability for losses and LAE | Reinsurance balances recoverable | Net | Liability for losses and LAE | Reinsurance balances recoverable | Net | ||||||||||||||||||||||||||||||
Beginning fair value | $ | 2,277,382 | $ | 490,814 | $ | 1,786,568 | $ | 2,345,543 | $ | 653,396 | $ | 1,692,147 | |||||||||||||||||||||||
Assumed business | — | — | — | (4,975) | — | (4,975) | |||||||||||||||||||||||||||||
Incurred losses and LAE: | |||||||||||||||||||||||||||||||||||
Increase (reduction) in estimates of ultimate losses | (4,277) | 6,258 | (10,535) | (21,075) | (4,951) | (16,124) | |||||||||||||||||||||||||||||
Reduction in unallocated LAE | (3,264) | — | (3,264) | (3,299) | — | (3,299) | |||||||||||||||||||||||||||||
Change in fair value | 24,174 | 6,461 | 17,713 | 175,787 | 41,744 | 134,043 | |||||||||||||||||||||||||||||
Total incurred losses and LAE | 16,633 | 12,719 | 3,914 | 151,413 | 36,793 | 114,620 | |||||||||||||||||||||||||||||
Paid losses | (60,637) | (11,306) | (49,331) | (62,279) | (22,321) | (39,958) | |||||||||||||||||||||||||||||
Effect of exchange rate movements | 727 | 116 | 611 | 24,837 | 3,516 | 21,321 | |||||||||||||||||||||||||||||
Ending fair value | $ | 2,234,105 | $ | 492,343 | $ | 1,741,762 | $ | 2,454,539 | $ | 671,384 | $ | 1,783,155 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Liability for losses and LAE | Reinsurance balances recoverable | Net | Liability for losses and LAE | Reinsurance balances recoverable | Net | ||||||||||||||||||||||||||||||
Beginning fair value | $ | 2,452,920 | $ | 520,830 | $ | 1,932,090 | $ | 2,621,122 | $ | 695,518 | $ | 1,925,604 | |||||||||||||||||||||||
Incurred losses and LAE: | |||||||||||||||||||||||||||||||||||
Reduction in estimates of ultimate losses | (12,500) | 6,967 | (19,467) | (35,514) | (8,122) | (27,392) | |||||||||||||||||||||||||||||
Reduction in unallocated LAE | (7,659) | — | (7,659) | (9,712) | — | (9,712) | |||||||||||||||||||||||||||||
Change in fair value | (69,909) | (12,150) | (57,759) | 110,983 | 35,177 | 75,806 | |||||||||||||||||||||||||||||
Total incurred losses and LAE | (90,068) | (5,183) | (84,885) | 65,757 | 27,055 | 38,702 | |||||||||||||||||||||||||||||
Paid losses | (134,587) | (23,289) | (111,298) | (143,442) | (38,435) | (105,007) | |||||||||||||||||||||||||||||
Effect of exchange rate movements | 5,840 | (15) | 5,855 | (88,898) | (12,754) | (76,144) | |||||||||||||||||||||||||||||
Ending fair value | $ | 2,234,105 | $ | 492,343 | $ | 1,741,762 | $ | 2,454,539 | $ | 671,384 | $ | 1,783,155 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Changes in fair value due to changes in: | |||||||||||||||||||||||
Duration | $ | 4,005 | $ | 3,702 | $ | 5,571 | $ | 7,850 | |||||||||||||||
Corporate bond yield | 13,708 | 130,341 | (63,330) | 66,249 | |||||||||||||||||||
Weighted cost of capital | — | — | — | (5,048) | |||||||||||||||||||
Risk cost of capital | — | — | — | 6,755 | |||||||||||||||||||
Change in fair value | $ | 17,713 | $ | 134,043 | $ | (57,759) | $ | 75,806 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||
Valuation Technique | Unobservable (U) and Observable (O) Inputs | Weighted Average | Weighted Average | ||||||||||||||
Internal model | Corporate bond yield (O) | A rated | A rated | ||||||||||||||
Internal model | Credit spread for non-performance risk (U) | 0.2% | 0.2% | ||||||||||||||
Internal model | Risk cost of capital (U) | 5.1% | 5.1% | ||||||||||||||
Internal model | Weighted average cost of capital (U) | 8.25% | 8.25% | ||||||||||||||
Internal model | Duration - liability (U) | 8.21 years | 8.17 years | ||||||||||||||
Internal model | Duration - reinsurance balances recoverable on paid and unpaid losses (U) | 7.88 years | 8.23 years |
June 30, 2021 | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 122,701 | |||||||||
Restricted cash held at brokers (1)
|
879,836 | ||||||||||
Total cash, cash equivalents and restricted cash | 1,002,537 | ||||||||||
Securities owned, at fair value | 1,393,134 | ||||||||||
Other assets: | |||||||||||
Derivative assets, at fair value | 477,645 | ||||||||||
Due from brokers | 34,835 | ||||||||||
Receivable from investments sold | 4,571 | ||||||||||
Other assets | 800 | ||||||||||
Total other assets | 517,851 | ||||||||||
Total variable interest entity assets of the InRe Fund | $ | 2,913,522 | |||||||||
LIABILITIES | |||||||||||
Derivative liabilities, at fair value | $ | 302,100 | |||||||||
Due to brokers | 172,821 | ||||||||||
Securities sold, but not yet purchased, at fair value | 135,950 | ||||||||||
Payable for investments purchased | 61,439 | ||||||||||
Other liabilities | 21,500 | ||||||||||
Total variable interest entity liabilities of the InRe Fund | $ | 693,810 |
June 30, 2021 | |||||||||||
Convertible bonds | $ | 194,275 | |||||||||
Corporate bonds | 4,518 | ||||||||||
Total fixed maturity investments | $ | 198,793 |
Amortized Cost | Fair Value | % of Total | AAA Rated | AA Rated | A Rated | BBB Rated | Non-Investment Grade | Non-Rated | |||||||||||||||||||||||||||||||||||||||||||||
Convertible bonds | $ | 144,683 | $ | 194,275 | 98 | % | — | $ | 4,466 | $ | — | $ | — | $ | — | $ | 189,809 | ||||||||||||||||||||||||||||||||||||
Corporate bonds | 4,435 | 4,518 | 2 | % | — | — | 1,942 | — | 2,576 | — | |||||||||||||||||||||||||||||||||||||||||||
Total | 149,118 | 198,793 | 100 | % | $ | — | $ | 4,466 | $ | 1,942 | $ | — | $ | 2,576 | $ | 189,809 | |||||||||||||||||||||||||||||||||||||
$ of total fair value | — | % | 2.2 | % | 1.0 | % | — | % | 1.3 | % | 95.5 | % |
June 30, 2021 | |||||||||||
Publicly traded equity investments in common and preferred stocks | $ | 1,079,679 | |||||||||
Exchange-traded funds | 55,655 | ||||||||||
$ | 1,135,334 |
Three and Six Months Ended | |||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
Fixed maturity investments | $ | 456 | |||||||||||||||||||||
Equity and other investments | 2,139 | ||||||||||||||||||||||
Investment income | 2,595 | ||||||||||||||||||||||
Investment expenses | (22,766) | ||||||||||||||||||||||
Net investment expenses | $ | (20,171) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net realized gains on sale: | |||||||||||||||||||||||
Fixed maturity securities | $ | 54,683 | $ | — | $ | 54,683 | $ | — | |||||||||||||||
Equity investments | 105,777 | — | 105,777 | — | |||||||||||||||||||
Derivatives | 161,245 | — | 161,245 | — | |||||||||||||||||||
Total net realized gains | $ | 321,705 | $ | — | $ | 321,705 | $ | — | |||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||
Fixed maturity securities | $ | (19,803) | $ | — | $ | (19,803) | $ | — | |||||||||||||||
Equity investments | 66,620 | — | 66,620 | — | |||||||||||||||||||
Other investments | 2,211 | — | 2,211 | — | |||||||||||||||||||
Derivatives | (154,003) | — | (154,003) | — | |||||||||||||||||||
Change in net asset value of the investment in the InRe Fund (1)
|
— | 365,054 | 76,607 | 320,196 | |||||||||||||||||||
Total net unrealized gains (losses) | (104,975) | 365,054 | (28,368) | 320,196 | |||||||||||||||||||
Net realized and unrealized gains | $ | 216,730 | $ | 365,054 | $ | 293,337 | $ | 320,196 |
June 30, 2021 | |||||||||||
Fair Value | Notional Value | ||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||
Derivative Assets | |||||||||||
Option contracts | $ | 431,211 | $ | 1,345,380 | |||||||
Forward contracts | 46,434 | 292,882 | |||||||||
Total derivative assets of the InRe Fund | $ | 477,645 | $ | 1,638,262 | |||||||
Derivative Liabilities | |||||||||||
Option contracts | $ | 256,801 | $ | 2,140,967 | |||||||
Forward contracts | 45,299 | 1,233,086 | |||||||||
Total derivative liabilities of the InRe Fund | $ | 302,100 | $ | 3,374,053 |
Three and Six Months Ended | |||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||
Option contracts | $ | 82 | |||||||||||||||||||||
Forward contracts | 7,160 | ||||||||||||||||||||||
Total net gain from derivative instruments, presented as a component of net realized and unrealized gains | $ | 7,242 |
As of June 30, 2021
|
Gross Amounts of Recognized Derivative Assets | Gross Derivative Liability Amounts Offset in the Balance Sheet | Net Amounts of Derivative Assets Presented in the Balance Sheet | Gross Amounts of Derivative Liabilities Not Offset in the Balance Sheet | Cash Collateral Received | Net Asset Amount | ||||||||||||||||||||||||||||||||
UBS AG | $ | 197,794 | $ | — | $ | 197,794 | $ | (129,558) | $ | — | $ | 68,236 | ||||||||||||||||||||||||||
Morgan Stanley | 54,285 | — | 54,285 | (43,092) | — | 11,193 | ||||||||||||||||||||||||||||||||
Goldman Sachs | 34,319 | — | 34,319 | (15,999) | — | 18,320 | ||||||||||||||||||||||||||||||||
Merrill Lynch | 168,882 | — | 168,882 | (94,345) | — | 74,537 | ||||||||||||||||||||||||||||||||
JP Morgan | 22,305 | — | 22,305 | (17,041) | — | 5,264 | ||||||||||||||||||||||||||||||||
Other | 60 | — | 60 | (60) | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 477,645 | $ | — | $ | 477,645 | $ | (300,095) | $ | — | $ | 177,550 |
As of June 30, 2021 | Gross Amounts of Recognized Derivative Liabilities | Gross Derivative Asset Amounts Offset in the Balance Sheet | Net Amounts of Derivative Liabilities Presented in the Balance Sheet | Gross Amounts of Derivative Assets Not Offset in the Balance Sheet |
Cash Collateral Pledged (1)
|
Net Amount | ||||||||||||||||||||||||||||||||
UBS AG | $ | (129,558) | $ | — | $ | (129,558) | $ | 129,558 | $ | — | $ | — | ||||||||||||||||||||||||||
Morgan Stanley | (43,092) | — | (43,092) | 43,092 | — | — | ||||||||||||||||||||||||||||||||
Goldman Sachs | (15,999) | — | (15,999) | 15,999 | — | — | ||||||||||||||||||||||||||||||||
Merrill Lynch | (94,345) | — | (94,345) | 94,345 | — | — | ||||||||||||||||||||||||||||||||
JP Morgan | (17,041) | — | (17,041) | 17,041 | — | — | ||||||||||||||||||||||||||||||||
Other | (2,065) | — | (2,065) | 985 | 1,080 | — | ||||||||||||||||||||||||||||||||
Total | $ | (302,100) | $ | — | $ | (302,100) | $ | 301,020 | $ | 1,080 | $ | — |
June 30, 2021 | |||||||||||||||||||||||
(in thousands) |
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
Total Fair Value | |||||||||||||||||||
Securities owned: | |||||||||||||||||||||||
Equities | $ | 1,135,334 | $ | — | $ | — | $ | 1,135,334 | |||||||||||||||
Warrants and rights | — | 59,007 | — | 59,007 | |||||||||||||||||||
Convertible bonds | — | 147,348 | 46,927 | 194,275 | |||||||||||||||||||
Corporate bonds | — | 4,518 | — | 4,518 | |||||||||||||||||||
Total securities owned | 1,135,334 | 210,873 | 46,927 | 1,393,134 | |||||||||||||||||||
Derivatives assets: | |||||||||||||||||||||||
Option contracts | — | 431,211 | — | 431,211 | |||||||||||||||||||
Forward contracts | — | 46,434 | — | 46,434 | |||||||||||||||||||
Total derivative assets | — | 477,645 | — | 477,645 | |||||||||||||||||||
Securities sold, not yet purchased: | |||||||||||||||||||||||
Equities | 89,427 | — | — | 89,427 | |||||||||||||||||||
Corporate bonds | — | 46,523 | — | 46,523 | |||||||||||||||||||
Total securities sold, but not yet purchased | 89,427 | 46,523 | — | 135,950 | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||
Option contracts | — | 256,801 | — | 256,801 | |||||||||||||||||||
Forward contracts | 7,003 | 38,296 | — | 45,299 | |||||||||||||||||||
Total Derivatives liabilities | $ | 7,003 | $ | 295,097 | $ | — | $ | 302,100 |
Qualitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||||||||||
Fair Value as of June 30, 2021
|
Valuation Techniques | Unobservable Input | Range (Average) | Unrealized Gain | ||||||||||||||||||||||
$ | 46,927 | Broker Pricing |
(1)
|
(1)
|
$ | 16,927 |
As of June 30, 2021 | Fair Value | Unfunded Commitments | Maximum Exposure to Loss | |||||||||||||||||
Equities | ||||||||||||||||||||
Publicly traded equity investment in common stock | $ | 60,911 | $ | — | $ | 60,911 | ||||||||||||||
Other investments | ||||||||||||||||||||
Hedge funds | $ | 73,130 | $ | — | $ | 73,130 | ||||||||||||||
Fixed income funds | 132,229 | 44,263 | 176,492 | |||||||||||||||||
Private equity funds | 479,470 | 781,162 | 1,260,632 | |||||||||||||||||
CLO equity funds | 190,158 | — | 190,158 | |||||||||||||||||
Private credit funds | 242,359 | 72,289 | 314,648 | |||||||||||||||||
Other | 17,971 | 38,544 | 56,515 | |||||||||||||||||
Total | $ | 1,135,317 | $ | 936,258 | $ | 2,071,575 | ||||||||||||||
Total investments in nonconsolidated VIEs | $ | 1,196,228 | $ | 936,258 | $ | 2,132,486 |
As of December 31, 2020 | Fair Value | Unfunded Commitments | Maximum Exposure to Loss | |||||||||||||||||
Equities | ||||||||||||||||||||
Publicly traded equity investment in common stock | $ | 54,248 | $ | — | $ | 54,248 | ||||||||||||||
Other investments | ||||||||||||||||||||
Hedge fund | $ | 2,638,339 | $ | — | $ | 2,638,339 | ||||||||||||||
Fixed income funds | 98,874 | 16,538 | 115,412 | |||||||||||||||||
Private equity funds | 361,691 | 761,969 | 1,123,660 | |||||||||||||||||
CLO equity funds | 166,524 | — | 166,524 | |||||||||||||||||
Private credit funds | 183,069 | 126,455 | 309,524 | |||||||||||||||||
Other | 12,358 | 17,674 | 30,032 | |||||||||||||||||
Total | $ | 3,460,855 | $ | 922,636 | $ | 4,383,491 | ||||||||||||||
Total investments in nonconsolidated VIEs | $ | 3,515,103 | $ | 922,636 | $ | 4,437,739 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Premiums
Written |
Premiums
Earned |
Premiums
Written |
Premiums
Earned |
Premiums Written | Premiums Earned | Premiums Written | Premiums Earned | ||||||||||||||||||||||||||||||||||||||||
Run-off | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | 8,001 | $ | 61,564 | $ | (2,155) | $ | 14,395 | $ | 30,184 | $ | 155,770 | $ | (1,828) | $ | 32,473 | |||||||||||||||||||||||||||||||
Ceded | 2,160 | (19,160) | (1,048) | (3,878) | (15,525) | (40,530) | 801 | (5,926) | |||||||||||||||||||||||||||||||||||||||
Net | $ | 10,161 | $ | 42,404 | $ | (3,203) | $ | 10,517 | $ | 14,659 | $ | 115,240 | $ | (1,027) | $ | 26,547 | |||||||||||||||||||||||||||||||
Legacy Underwriting | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | 13,515 | $ | 38,060 | $ | 141,547 | $ | 167,235 | $ | 41,089 | $ | 86,119 | $ | 350,981 | $ | 344,278 | |||||||||||||||||||||||||||||||
Ceded | (6,501) | (20,820) | (17,568) | (34,881) | (22,608) | (48,839) | (74,719) | (68,603) | |||||||||||||||||||||||||||||||||||||||
Net | $ | 7,014 | $ | 17,240 | $ | 123,979 | $ | 132,354 | $ | 18,481 | $ | 37,280 | $ | 276,262 | $ | 275,675 | |||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||||||||
Gross | $ | 21,516 | $ | 99,624 | $ | 139,392 | $ | 181,630 | $ | 71,273 | $ | 241,889 | $ | 349,153 | $ | 376,751 | |||||||||||||||||||||||||||||||
Ceded | (4,341) | (39,980) | (18,616) | (38,759) | (38,133) | (89,369) | (73,918) | (74,529) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 17,175 | $ | 59,644 | $ | 120,776 | $ | 142,871 | $ | 33,140 | $ | 152,520 | $ | 275,235 | $ | 302,222 |
Facility | Origination Date | Term | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
4.50% Senior Notes due 2022
|
March 10, 2017 | 5 years | $ | 349,492 | $ | 349,253 | ||||||||||||||||||||
4.95% Senior Notes due 2029
|
May 28, 2019 | 10 years | 494,777 | 494,194 | ||||||||||||||||||||||
Total Senior Notes | 844,269 | 843,447 | ||||||||||||||||||||||||
5.75% Junior Subordinated Notes due 2040
|
August 26, 2020 | 20 years | 344,943 | 344,812 | ||||||||||||||||||||||
EGL Revolving Credit Facility | August 16, 2018 | 5 years | 175,000 | 185,000 | ||||||||||||||||||||||
Total debt obligations | $ | 1,364,212 | $ | 1,373,259 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Interest expense on debt obligations | $ | 15,896 | $ | 13,675 | $ | 31,803 | $ | 26,870 | |||||||||||||||
Amortization of debt issuance costs | 349 | 343 | 605 | 563 | |||||||||||||||||||
Funds withheld balances and other | 56 | — | 72 | — | |||||||||||||||||||
Total interest expense | $ | 16,301 | $ | 14,018 | $ | 32,480 | $ | 27,433 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Balance at beginning of period | $ | 174,803 | $ | 392,773 | $ | 365,436 | $ | 438,791 | |||||||||||||||
Distributions paid | — | — | (202,073) | — | |||||||||||||||||||
Net earnings (losses) attributable to RNCI | 2,441 | (20,140) | 14,186 | (52,099) | |||||||||||||||||||
Change in unrealized losses on AFS investments attributable to RNCI | 40 | 10,543 | (211) | 6,373 | |||||||||||||||||||
Change in currency translation adjustments attributable to RNCI | 165 | (165) | 841 | (165) | |||||||||||||||||||
Change in redemption value of RNCI | — | (16,478) | (730) | (26,628) | |||||||||||||||||||
Cumulative effect of change in accounting principle attributable to RNCI (1)
|
— | — | — | 261 | |||||||||||||||||||
Balance at end of period | $ | 177,449 | $ | 366,533 | $ | 177,449 | $ | 366,533 |
Unrealized gains (losses) arising during the year | Cumulative Currency Translation Adjustment | Defined Benefit Pension Liability | Total | ||||||||||||||||||||
Balance, March 31, 2021, net of tax
|
$ | (26,541) | $ | 8,619 | $ | 207 | $ | (17,715) | |||||||||||||||
Unrealized gains on fixed income available-for-sale investments arising during the year | 57,020 | — | — | 57,020 | |||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,094) | — | — | (5,094) | |||||||||||||||||||
Reclassification adjustment for net realized gains included in net earnings | (529) | — | — | (529) | |||||||||||||||||||
Change in currency translation adjustment | — | (399) | — | (399) | |||||||||||||||||||
Total other comprehensive income (loss) | 51,397 | (399) | — | 50,998 | |||||||||||||||||||
Other comprehensive (income) loss attributable to RNCI | (40) | (166) | — | (206) | |||||||||||||||||||
Balance, June 30, 2021, net of tax
|
$ | 24,816 | $ | 8,054 | $ | 207 | $ | 33,077 |
Unrealized gains (losses) arising during the year | Cumulative Currency Translation Adjustment | Defined Benefit Pension Liability | Total | ||||||||||||||||||||
Balance, March 31, 2020, net of tax
|
$ | (41,573) | $ | 7,862 | $ | (945) | $ | (34,656) | |||||||||||||||
Unrealized gains on fixed income available-for-sale investments arising during the year | 112,506 | — | — | 112,506 | |||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (10,762) | — | — | (10,762) | |||||||||||||||||||
Reclassification adjustment for net realized gains included in net earnings | (4,222) | — | — | (4,222) | |||||||||||||||||||
Change in currency translation adjustment | — | (1,205) | — | (1,205) | |||||||||||||||||||
Total other comprehensive income (loss) | 97,522 | (1,205) | — | 96,317 | |||||||||||||||||||
Other comprehensive (income) loss attributable to RNCI | (10,543) | 167 | — | (10,376) | |||||||||||||||||||
Balance, June 30, 2020, net of tax
|
$ | 45,406 | $ | 6,824 | $ | (945) | $ | 51,285 |
Unrealized gains (losses) arising during the year | Cumulative Currency Translation Adjustment | Defined Benefit Pension Liability | Total | ||||||||||||||||||||
Balance, December 31, 2020, net of tax
|
$ | 72,576 | $ | 7,876 | $ | 207 | $ | 80,659 | |||||||||||||||
Unrealized losses on fixed income available-for-sale investments arising during the year | (54,254) | — | — | (54,254) | |||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | 6,931 | — | — | 6,931 | |||||||||||||||||||
Reclassification adjustment for net realized gains included in net earnings | (1,123) | — | — | (1,123) | |||||||||||||||||||
Reclassification to earnings on disposal of subsidiary | 475 | — | — | 475 | |||||||||||||||||||
Change in currency translation adjustment | — | 1,019 | — | 1,019 | |||||||||||||||||||
Total other comprehensive income (loss) | (47,971) | 1,019 | — | (46,952) | |||||||||||||||||||
Other comprehensive (income) loss attributable to RNCI | 211 | (841) | — | (630) | |||||||||||||||||||
Balance, June 30, 2021, net of tax
|
$ | 24,816 | $ | 8,054 | $ | 207 | $ | 33,077 |
Unrealized gains (losses) arising during the year | Cumulative Currency Translation Adjustment | Defined Benefit Pension Liability | Total | ||||||||||||||||||||
Balance, December 31, 2019, net of tax
|
$ | (432) | $ | 8,548 | $ | (945) | $ | 7,171 | |||||||||||||||
Unrealized gains on fixed income available-for-sale investments arising during the year | 53,771 | — | — | 53,771 | |||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | 2,450 | — | — | 2,450 | |||||||||||||||||||
Reclassification adjustment for net realized gains included in net earnings | (4,010) | — | — | (4,010) | |||||||||||||||||||
Change in currency translation adjustment | — | (1,891) | — | (1,891) | |||||||||||||||||||
Total other comprehensive income (loss) | 52,211 | (1,891) | — | 50,320 | |||||||||||||||||||
Other comprehensive (income) loss attributable to RNCI | (6,373) | 167 | — | (6,206) | |||||||||||||||||||
Balance, June 30, 2020, net of tax
|
$ | 45,406 | $ | 6,824 | $ | (945) | $ | 51,285 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30,
|
|||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||||
Unrealized gains (losses) on fixed income available-for-sale investments arising during the year | $ | 59,178 | $ | (2,158) | $ | 57,020 | $ | 112,506 | $ | — | $ | 112,506 | |||||||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | (5,090) | (4) | (5,094) | (10,762) | — | (10,762) | |||||||||||||||||||||||||||||
Reclassification adjustment for net realized (gains) losses included in net earnings | (630) | 101 | (529) | (4,222) | — | (4,222) | |||||||||||||||||||||||||||||
Change in currency translation adjustment | (399) | — | (399) | (1,205) | — | (1,205) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 53,059 | $ | (2,061) | $ | 50,998 | $ | 96,317 | $ | — | $ | 96,317 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
June 30,
|
|||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||||||||||||||||||
Unrealized gains (losses) on fixed income available-for-sale investments arising during the year | $ | (57,089) | $ | 2,835 | $ | (54,254) | $ | 53,771 | $ | — | $ | 53,771 | |||||||||||||||||||||||
Reclassification adjustment for change in allowance for credit losses recognized in net earnings | 7,137 | (206) | 6,931 | 2,450 | — | 2,450 | |||||||||||||||||||||||||||||
Reclassification adjustment for net realized (gains) losses included in net earnings | (1,499) | 376 | (1,123) | (4,010) | — | (4,010) | |||||||||||||||||||||||||||||
Reclassification to earnings on disposal of subsidiary | 586 | (111) | 475 | — | — | — | |||||||||||||||||||||||||||||
Change in currency translation adjustment | 1,019 | — | 1,019 | (1,891) | — | (1,891) | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ | (49,846) | $ | 2,894 | $ | (46,952) | $ | 50,320 | $ | — | $ | 50,320 |
Three Months Ended | ||||||||||||||
Details about AOCI components | June 30, 2021 | June 30, 2020 | Affected Line Item in Statement where Net Earnings are presented | |||||||||||
Unrealized gains on fixed income available-for-sale investments | 5,720 | 13,012 | Net realized and unrealized gains | |||||||||||
— | 1,972 | Net loss from discontinued operations | ||||||||||||
5,720 | 14,984 | Total before tax | ||||||||||||
(97) | — | Income tax benefit | ||||||||||||
Total reclassifications for the period, net of tax | 5,623 | 14,984 |
Six Months Ended | ||||||||||||||
Details about AOCI components | June 30, 2021 | June 30, 2020 | Affected Line Item in Statement where Net Earnings are presented | |||||||||||
Unrealized gains (losses) on fixed income available-for-sale investments | (6,224) | 894 | Net realized and unrealized gains | |||||||||||
— | 666 | Net loss from discontinued operations | ||||||||||||
(6,224) | 1,560 | Total before tax | ||||||||||||
(59) | — | Income tax benefit | ||||||||||||
Total reclassifications for the period, net of tax | (6,283) | 1,560 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Earnings per share attributable to Enstar ordinary shareholders: | |||||||||||||||||||||||
Net earnings from continuing operations (1)
|
$ | 377,326 | $ | 799,232 | $ | 560,523 | $ | 283,632 | |||||||||||||||
Net loss from discontinued operations (2)
|
— | (679) | — | (1,900) | |||||||||||||||||||
Net earnings attributable to Enstar ordinary shareholders: | $ | 377,326 | $ | 798,553 | $ | 560,523 | $ | 281,732 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average ordinary shares outstanding — basic (3)
|
21,631,749 | 21,565,240 | 21,597,236 | 21,557,542 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Share-based compensation plans (4)
|
200,469 | 185,300 | 214,849 | 177,264 | |||||||||||||||||||
Warrants (5)
|
— | 38,702 | 80,659 | 53,525 | |||||||||||||||||||
Weighted-average ordinary shares outstanding — diluted | 21,832,218 | 21,789,242 | 21,892,744 | 21,788,331 | |||||||||||||||||||
Earnings per share attributable to Enstar ordinary shareholders: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | 17.44 | $ | 37.06 | $ | 25.95 | $ | 13.16 | |||||||||||||||
Net loss from discontinued operations | — | (0.03) | — | (0.09) | |||||||||||||||||||
Net earnings per ordinary share | $ | 17.44 | $ | 37.03 | $ | 25.95 | $ | 13.07 | |||||||||||||||
Diluted: | |||||||||||||||||||||||
Net earnings from continuing operations | $ | 17.28 | $ | 36.68 | $ | 25.60 | $ | 13.02 | |||||||||||||||
Net loss from discontinued operations | — | (0.03) | — | (0.09) | |||||||||||||||||||
Net earnings per ordinary share | $ | 17.28 | $ | 36.65 | $ | 25.60 | $ | 12.93 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Share-based compensation plans: | |||||||||||||||||||||||
Restricted shares and restricted share units | $ | 1,714 | $ | 2,330 | $ | 3,009 | $ | 3,929 | |||||||||||||||
Performance share units | 2,995 | 5,855 | 6,890 | 5,188 | |||||||||||||||||||
Cash-settled stock appreciation rights | 245 | (316) | 3,013 | (3,475) | |||||||||||||||||||
Joint share ownership plan expense | 1,133 | 1,133 | 2,254 | 2,005 | |||||||||||||||||||
Other share-based compensation plans: | |||||||||||||||||||||||
Northshore incentive plan | — | (25) | — | 447 | |||||||||||||||||||
StarStone incentive plan | — | — | — | (223) | |||||||||||||||||||
Deferred compensation and ordinary share plan for non-employee directors | 108 | 93 | 979 | 959 | |||||||||||||||||||
Employee share purchase plan | 81 | 104 | 166 | 208 | |||||||||||||||||||
Total share-based compensation | $ | 6,276 | $ | 9,174 | $ | 16,311 | $ | 9,038 |
June 30, 2021 | December 31, 2020 | ||||||||||
Short-term investments, AFS, at fair value | $ | — | $ | 878 | |||||||
Fixed maturities, trading, at fair value | 142,736 | 196,086 | |||||||||
Fixed maturities, AFS, at fair value | 291,924 | 227,397 | |||||||||
Equities, at fair value | 134,178 | 103,914 | |||||||||
Other investments, at fair value: | |||||||||||
Hedge funds | — | 19,844 | |||||||||
Fixed income funds | 230,341 | 210,017 | |||||||||
Private equity funds | 52,811 | 37,262 | |||||||||
CLO equities | 36,032 | 38,658 | |||||||||
CLO equity funds | 189,793 | 166,523 | |||||||||
Private Debt | 18,950 | 27,016 | |||||||||
Real estate fund | 29,855 | 27,278 | |||||||||
Total investments | 1,126,620 | 1,054,873 | |||||||||
Cash and cash equivalents | 13,635 | 23,933 | |||||||||
Other assets | 1,971 | 403 | |||||||||
Other liabilities | 1,515 | 745 | |||||||||
Net investment | $ | 1,140,711 | $ | 1,078,464 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net investment income | $ | 4,416 | $ | 4,793 | $ | 4,878 | $ | 8,877 | |||||||||||||||
Net realized and unrealized gains (losses) | 22,318 | 29,729 | 47,232 | (72,787) | |||||||||||||||||||
Total net earnings (losses) | $ | 26,734 | $ | 34,522 | $ | 52,110 | $ | (63,910) |
June 30, 2021 | December 31, 2020 | ||||||||||
Investments in funds managed by AnglePoint Cayman, held by Enhanzed Re | $ | 12,954 | $ | 851,435 | |||||||
Our ownership percentage of Enhanzed Re | 47.4 | % | 47.4 | % | |||||||
Our share of Enhanzed Re's investment in funds managed by AnglePoint Cayman held by Enhanzed Re (through our equity method investment ownership) | $ | 6,140 | $ | 403,580 | |||||||
Investment in other funds managed by Hillhouse Group and its affiliates: | |||||||||||
InRe Fund (1)
|
$ | 2,365,158 | |||||||||
Other funds | $ | — | 369,508 | ||||||||
$ | — | $ | 2,734,666 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
InRe Fund (1) (2)
|
$ | — | $ | 365,054 | $ | 76,607 | $ | 320,196 | ||||||||||||||||||
Other Funds | — | 55,230 | 20,871 | 35,184 | ||||||||||||||||||||||
Net realized and unrealized gains | $ | — | $ | 420,284 | $ | 97,478 | $ | 355,380 |
Three and Six Months Ended June 30, | |||||||||||||||||||||||
2021 | |||||||||||||||||||||||
Net investment expenses (1)
|
$ | (20,171) | |||||||||||||||||||||
Net realized and unrealized gains | 216,730 | ||||||||||||||||||||||
$ | 196,559 |
June 30, 2021 | |||||||||||
Balances under LPT Retrocession Agreement: | |||||||||||
Premiums Receivable | $ | 13,185 | |||||||||
Loss and loss adjustment expenses | 12,921 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2021 | 2021 | ||||||||||
Transactions under LPT Retrocession Agreement: | |||||||||||
Net incurred losses and LAE | $ | 28 | $ | 346 | |||||||
Interest expense | (83) | (83) | |||||||||
Total net earnings (loss) | $ | (55) | $ | 263 |
December 31, 2020 | |||||||||||
Distributions of SGL No.1 Share of Syndicate 609 results | 19,115 | ||||||||||
Due to Arden under reinsurance agreement | (7,965) | ||||||||||
Due to Atrium 5 limited under capacity lease agreement | (11,150) | ||||||||||
Net balances with Northshore Group | — |
June 30, 2021 | |||||||||||
Balances under quota share agreement | |||||||||||
Short-term investments, trading, at fair value | $ | — | |||||||||
Fixed maturities, trading, at fair value | 165,717 | ||||||||||
Fixed maturities, available-for-sale, at fair value | 1,102 | ||||||||||
Other investments, at fair value | 12,153 | ||||||||||
Cash and cash equivalents | 24,654 | ||||||||||
Restricted cash and cash equivalents | 4,626 | ||||||||||
Premiums receivable | 18,408 | ||||||||||
Reinsurance balances recoverable on paid and unpaid losses | 76,670 | ||||||||||
Funds held by reinsured companies | 31,555 | ||||||||||
Other assets | 41,657 | ||||||||||
Losses and loss adjustment expenses | 240,910 | ||||||||||
Insurance and reinsurance balances payable | 87,240 | ||||||||||
Other liabilities | 48,286 | ||||||||||
Balances under lease capacity agreement | |||||||||||
Other liabilities | 12,782 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | June 30, | ||||||||||
2021 | 2021 | ||||||||||
Transactions under quota share agreement | |||||||||||
Net premiums earned | $ | 17,240 | $ | 37,280 | |||||||
Net investment income | 288 | 1,046 | |||||||||
Net realized and unrealized gains (losses) | 210 | (1,099) | |||||||||
Other income | 1,282 | 1,282 | |||||||||
Net incurred losses and loss adjustment expenses | (10,281) | (14,759) | |||||||||
Acquisition costs | (4,922) | (9,899) | |||||||||
General and administrative expenses | (1,418) | (3,502) | |||||||||
Transactions under lease capacity agreement | |||||||||||
Other expense | $ | (3,831) | $ | (10,349) | |||||||
Total net earnings | $ | (1,432) | $ | — |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2020 | 2020 | ||||||||||||||||||||||
Transactions under StarStone ceding quota share, included in net loss from discontinued operations: | |||||||||||||||||||||||
Ceded premium earned | $ | 682 | $ | 1 | |||||||||||||||||||
Net incurred losses and LAE | (2,043) | (1,289) | |||||||||||||||||||||
Acquisition costs | (99) | (27) | |||||||||||||||||||||
Transactions under assuming quota share: | |||||||||||||||||||||||
Premium earned | (170) | — | |||||||||||||||||||||
Net incurred losses and LAE | 510 | 882 | |||||||||||||||||||||
Acquisition costs | 20 | 7 | |||||||||||||||||||||
Total net earnings | $ | (1,100) | $ | (426) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net investment income | $ | 1,493 | $ | 1,896 | $ | 2,986 | $ | 4,367 | |||||||||||||||
Net realized and unrealized gains (losses) | (1,453) | 3,954 | (2,945) | 3,809 | |||||||||||||||||||
Total net earnings | $ | 40 | $ | 5,850 | $ | 41 | $ | 8,176 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||
Balances under ceding quota share: | |||||||||||||||||
Reinsurance balances recoverable | $ | 226,003 | $ | 208,379 | |||||||||||||
Funds held | 242,483 | 193,981 | |||||||||||||||
Insurance balances payables | 1,560 | 1,276 | |||||||||||||||
Other assets | 7,767 | 730 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Amounts under ceding quota share: | |||||||||||||||||||||||
Ceded premium earned | $ | (1,510) | $ | — | $ | (1,641) | $ | — | |||||||||||||||
Fees and commission income | 117 | — | 233 | — | |||||||||||||||||||
Net investment expense | (1,280) | — | (2,437) | — | |||||||||||||||||||
Net realized and unrealized gains | 149 | — | 132 | — | |||||||||||||||||||
Other income (expense) | 735 | (3,172) | 1,462 | (2,881) | |||||||||||||||||||
Net incurred losses and LAE | 1,319 | (13) | 1,054 | (13) | |||||||||||||||||||
Acquisition costs | 368 | — | 373 | 23 | |||||||||||||||||||
Total net loss | $ | (102) | $ | (3,185) | $ | (824) | $ | (2,871) | |||||||||||||||
Change in unrealized losses on AFS investments | (665) | — | (1,288) | — |
June 30, 2021 | December 31, 2020 | ||||||||||
Balances under assuming quota share, LPT and ADC reinsurances: | |||||||||||
Funds held by reinsured companies | $ | 50,426 | $ | 58,086 | |||||||
Other assets | 2,764 | 38,846 | |||||||||
Losses and loss adjustment expenses | 597,390 | 682,637 | |||||||||
Insurance and reinsurance balances payable | 60,840 | 24,806 | |||||||||
Other liabilities | 175 | 5,003 | |||||||||
Balances under ceding reinsurances: | |||||||||||
Reinsurance balances recoverable on paid and unpaid losses | 1,691 | 1,736 | |||||||||
Balances under service agreements: | |||||||||||
Other assets | 5,231 | 6,727 | |||||||||
Other liabilities | 53 | 328 | |||||||||
Balances under sale and recapitalization agreement: | |||||||||||
Other liabilities | — | 4,512 |
Three Months Ended | Six Months Ended | ||||||||||
June 30, 2021 | June 30, 2021 | ||||||||||
Transactions under assuming quota share, LPT and ADC reinsurances: | |||||||||||
Net premiums earned | $ | (1,310) | $ | 2,935 | |||||||
Net incurred losses and loss adjustment expenses | 1,369 | 9,221 | |||||||||
Acquisition costs | 1,893 | 3,217 | |||||||||
Net investment income | — | 121 | |||||||||
Other expense | (15) | (15) | |||||||||
Transactions under service agreements: | |||||||||||
Fees and commission income | 3,801 | 7,499 | |||||||||
Transactions under sale and recapitalization agreement: | |||||||||||
Other Income | — | 567 | |||||||||
Interest expense | — | (15) | |||||||||
Total net earnings | $ | 5,738 | $ | 23,530 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Lease cost: | |||||||||||||||||||||||
Operating lease cost | $ | 2,022 | $ | 3,202 | $ | 4,134 | $ | 6,524 | |||||||||||||||
Short-term lease cost(1)
|
— | 61 | 4 | 119 | |||||||||||||||||||
Total lease cost | 2,022 | 3,263 | 4,138 | 6,643 | |||||||||||||||||||
Sub-lease income(2)
|
(473) | (138) | (1,027) | (276) | |||||||||||||||||||
Total net lease cost | $ | 1,549 | $ | 3,125 | $ | 3,111 | $ | 6,367 | |||||||||||||||
Other information: | |||||||||||||||||||||||
Operating cash paid for amounts included in the measurement of lease liabilities | $ | 1,937 | $ | 4,145 | $ | 4,047 | $ | 7,328 | |||||||||||||||
Non-cash activity: right-of-use assets relating to leases | (139) | 191 | (504) | 263 | |||||||||||||||||||
Weighted-average remaining lease term | 6.4 years | 6.2 years | |||||||||||||||||||||
Weighted-average discount rate | 6.8 | % | 6.3 | % |
Balance sheet classification | June 30, 2021 | December 31, 2020 | |||||||||||||||
Right-of-use assets (1)
|
Other assets | $ | 22,219 | $ | 32,297 | ||||||||||||
Current lease liabilities (1)
|
Other liabilities | 6,047 | 7,959 | ||||||||||||||
Non-current lease liabilities (1)
|
Other liabilities | 19,122 | 27,064 |
2021 | 2022 | 2023 | 2024 | 2025 | 2026 and beyond | Total lease payments | Less: Imputed interest | Present value of lease liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Contractual maturities | $ | 4,230 | 6,580 | 5,703 | 4,047 | 3,165 | 8,651 | 32,376 | (7,207) | $ | 25,169 |
Three Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||
Run-off | Investments | Legacy Underwriting |
Corporate & Other (1)
|
Total | |||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||
Net premiums earned | $ | 42,404 | $ | — | $ | 17,240 | $ | — | $ | 59,644 | |||||||||||||||||||
Fees and commission income | 8,274 | — | — | — | 8,274 | ||||||||||||||||||||||||
Net investment income | — | 75,859 | 288 | — | 76,147 | ||||||||||||||||||||||||
Net realized and unrealized gains | — | 405,010 | 210 | — | 405,220 | ||||||||||||||||||||||||
Other income (expense) | 5,196 | — | (2,549) | (6,006) | (3,359) | ||||||||||||||||||||||||
55,874 | 480,869 | 15,189 | (6,006) | 545,926 | |||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | (16,997) | — | 10,281 | 46,020 | 39,304 | ||||||||||||||||||||||||
Acquisition costs | 34 | — | 4,922 | — | 4,956 | ||||||||||||||||||||||||
General and administrative expenses (2)
|
64,138 | 12,303 | 1,418 | 14,858 | 92,717 | ||||||||||||||||||||||||
47,175 | 12,303 | 16,621 | 60,878 | 136,977 | |||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 8,699 | 468,566 | (1,432) | (66,884) | 408,949 | ||||||||||||||||||||||||
Loss from equity method investments | — | (3,059) | — | — | (3,059) | ||||||||||||||||||||||||
SEGMENT INCOME (LOSS) | 8,699 | 465,507 | (1,432) | (66,884) | 405,890 | ||||||||||||||||||||||||
Interest expense | (16,301) | (16,301) | |||||||||||||||||||||||||||
Net foreign exchange gains | 9,139 | 9,139 | |||||||||||||||||||||||||||
Income tax expense | (9,422) | (9,422) | |||||||||||||||||||||||||||
NET EARNINGS | 389,306 | ||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | (3,055) | (3,055) | |||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 386,251 | ||||||||||||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (95,448) | $ | 377,326 |
Three Months Ended | |||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||
Run-off | Investments | Legacy Underwriting |
Corporate & Other (1)
|
Total | |||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||
Net premiums earned | $ | 10,517 | $ | — | $ | 132,354 | $ | — | $ | 142,871 | |||||||||||||||||||
Fees and commission income | 3,966 | — | 6,044 | — | 10,010 | ||||||||||||||||||||||||
Net investment income | — | 86,263 | 8,180 | — | 94,443 | ||||||||||||||||||||||||
Net realized and unrealized gains | — | 926,494 | 41,114 | — | 967,608 | ||||||||||||||||||||||||
Other income (expense) | 899 | — | 30 | (2,016) | (1,087) | ||||||||||||||||||||||||
15,382 | 1,012,757 | 187,722 | (2,016) | 1,213,845 | |||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | (60,249) | — | 95,382 | 151,559 | 186,692 | ||||||||||||||||||||||||
Acquisition costs | 3,589 | — | 45,478 | — | 49,067 | ||||||||||||||||||||||||
General and administrative expenses (2)
|
52,466 | 10,704 | 70,062 | 11,598 | 144,830 | ||||||||||||||||||||||||
(4,194) | 10,704 | 210,922 | 163,157 | 380,589 | |||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 19,576 | 1,002,053 | (23,200) | (165,173) | 833,256 | ||||||||||||||||||||||||
Loss from equity method investments | — | (8,790) | — | — | (8,790) | ||||||||||||||||||||||||
SEGMENT INCOME (LOSS) | 19,576 | 993,263 | (23,200) | (165,173) | 824,466 | ||||||||||||||||||||||||
Interest expense | (14,018) | (14,018) | |||||||||||||||||||||||||||
Net foreign exchange losses | (5,158) | (5,158) | |||||||||||||||||||||||||||
Income tax expense | (16,652) | (16,652) | |||||||||||||||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 788,638 | ||||||||||||||||||||||||||||
Net loss from discontinued operations, net of income taxes | (1,152) | (1,152) | |||||||||||||||||||||||||||
NET EARNINGS | 787,486 | ||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | 19,992 | 19,992 | |||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 807,478 | ||||||||||||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (191,086) | $ | 798,553 |
Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||
Run-off | Investments | Legacy Underwriting |
Corporate & Other (1)
|
Total | |||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||
Net premiums earned | $ | 115,240 | $ | — | $ | 37,280 | $ | — | $ | 152,520 | |||||||||||||||||||
Fees and commission income | 17,872 | — | — | — | 17,872 | ||||||||||||||||||||||||
Net investment income | — | 137,190 | 1,046 | — | 138,236 | ||||||||||||||||||||||||
Net realized and unrealized gains (losses) | — | 385,531 | (1,099) | — | 384,432 | ||||||||||||||||||||||||
Other income (expense) | 17,511 | — | (9,067) | (11,252) | (2,808) | ||||||||||||||||||||||||
Net gain on sales of subsidiaries | — | — | — | 14,894 | 14,894 | ||||||||||||||||||||||||
150,623 | 522,721 | 28,160 | 3,642 | 705,146 | |||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | (12,372) | — | 14,759 | (18,590) | (16,203) | ||||||||||||||||||||||||
Acquisition costs | 29,071 | — | 9,899 | — | 38,970 | ||||||||||||||||||||||||
General and administrative expenses | 91,729 | 15,843 | 3,502 | 64,643 | 175,717 | ||||||||||||||||||||||||
108,428 | 15,843 | 28,160 | 46,053 | 198,484 | |||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 42,195 | 506,878 | — | (42,411) | 506,662 | ||||||||||||||||||||||||
Earnings from equity method investments | — | 114,972 | — | — | 114,972 | ||||||||||||||||||||||||
SEGMENT INCOME (LOSS) | 42,195 | 621,850 | — | (42,411) | 621,634 | ||||||||||||||||||||||||
Interest expense | (32,480) | (32,480) | |||||||||||||||||||||||||||
Net foreign exchange gains | 6,505 | 6,505 | |||||||||||||||||||||||||||
Income tax expense | (3,440) | (3,440) | |||||||||||||||||||||||||||
NET EARNINGS | 592,219 | ||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest | (13,846) | (13,846) | |||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 578,373 | ||||||||||||||||||||||||||||
Dividends on preferred shares | (17,850) | (17,850) | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (103,522) | $ | 560,523 |
Six Months Ended | |||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||
Run-off | Investments | Legacy Underwriting |
Corporate & Other (1)
|
Total | |||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||
Net premiums earned | $ | 26,547 | $ | — | $ | 275,675 | $ | — | $ | 302,222 | |||||||||||||||||||
Fees and commission income | 8,951 | — | 8,587 | — | 17,538 | ||||||||||||||||||||||||
Net investment income | — | 151,226 | 17,931 | — | 169,157 | ||||||||||||||||||||||||
Net realized and unrealized gains (losses) | — | 351,812 | (13,265) | — | 338,547 | ||||||||||||||||||||||||
Other income (expense) | 28,662 | — | 150 | (9,455) | 19,357 | ||||||||||||||||||||||||
64,160 | 503,038 | 289,078 | (9,455) | 846,821 | |||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||
Net incurred losses and loss adjustment expenses | (87,442) | — | 200,913 | 116,521 | 229,992 | ||||||||||||||||||||||||
Acquisition costs | 10,496 | — | 84,614 | — | 95,110 | ||||||||||||||||||||||||
General and administrative expenses | 75,853 | 14,268 | 96,120 | 57,017 | 243,258 | ||||||||||||||||||||||||
(1,093) | 14,268 | 381,647 | 173,538 | 568,360 | |||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 65,253 | 488,770 | (92,569) | (182,993) | 278,461 | ||||||||||||||||||||||||
Earnings from equity method investments | — | 3,660 | — | — | 3,660 | ||||||||||||||||||||||||
SEGMENT INCOME (LOSS) | 65,253 | 492,430 | (92,569) | (182,993) | 282,121 | ||||||||||||||||||||||||
Interest expense | (27,433) | (27,433) | |||||||||||||||||||||||||||
Net foreign exchange gains | 6,781 | 6,781 | |||||||||||||||||||||||||||
Income tax expense | (11,380) | (11,380) | |||||||||||||||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 250,089 | ||||||||||||||||||||||||||||
Net loss from discontinued operations, net of income taxes | (3,221) | (3,221) | |||||||||||||||||||||||||||
NET EARNINGS | 246,868 | ||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | 52,714 | 52,714 | |||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 299,582 | ||||||||||||||||||||||||||||
Dividends on preferred shares | (17,850) | (17,850) | |||||||||||||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (183,382) | $ | 281,732 |
Transaction | Date Transaction Announced or Completed | Initial Estimate of Liabilities Assumed | Type of Transaction and Primary Nature of Business | |||||||||||||||||||||||||||||||||||
ProSight | Completed on August 4, 2021 | $ | 500,000 | LPT of U.S. discontinued workers' compensation and excess workers' compensation lines of business and ADC on a diversified mix of general liability classes of business | ||||||||||||||||||||||||||||||||||
RSA | Announced on July 27, 2021 | 97,222 | ADC on a diversified mix of commercial and personal insurance lines across the U.K. and Ireland | |||||||||||||||||||||||||||||||||||
Total | $ | 597,222 |
Section | Page | |||||||
June 30, 2021 | December 31, 2020 | Change | |||||||||||||||
(In thousands of U.S. dollars, except share and per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Total Enstar shareholder's equity | $ | 7,187,308 | $ | 6,674,395 | $ | 512,913 | |||||||||||
Less: Series D and E preferred shares | 510,000 | 510,000 | — | ||||||||||||||
Total Enstar ordinary shareholders' equity (A) | 6,677,308 | 6,164,395 | 512,913 | ||||||||||||||
Proceeds from assumed conversion of warrants(1)
|
— | 20,229 | (20,229) | ||||||||||||||
Numerator for fully diluted book value per ordinary share calculations (B) | $ | 6,677,308 | $ | 6,184,624 | $ | 492,684 | |||||||||||
Denominator: | |||||||||||||||||
Ordinary shares outstanding (C) (2)
|
21,604,803 | 21,519,602 | 85,201 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Share-based compensation plans (3)
|
317,380 | 298,095 | 19,285 | ||||||||||||||
Warrants(1)
|
— | 175,901 | (175,901) | ||||||||||||||
Fully diluted ordinary shares outstanding (D) | 21,922,183 | 21,993,598 | (71,415) | ||||||||||||||
Book value per ordinary share: | |||||||||||||||||
Basic book value per ordinary share = (A) / (C) | $ | 309.07 | $ | 286.45 | $ | 22.62 | |||||||||||
Fully diluted book value per ordinary share = (B) / (D) | $ | 304.59 | $ | 281.20 | $ | 23.39 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(expressed in thousands of U.S. dollars, except share and per share data) | |||||||||||||||||||||||
Net earnings attributable to Enstar ordinary shareholders | $ | 377,326 | $ | 798,553 | $ | 560,523 | $ | 281,732 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Net realized and unrealized (gains) losses on fixed maturity investments and funds held - directly managed (1)
|
(110,145) | (417,364) | 96,039 | (139,803) | |||||||||||||||||||
Change in fair value of insurance contracts for which we have elected the fair value option | 17,713 | 134,043 | (57,759) | 75,806 | |||||||||||||||||||
Net gain on sales of subsidiaries | — | — | (14,894) | — | |||||||||||||||||||
Net loss from discontinued operations | — | 1,152 | — | 3,221 | |||||||||||||||||||
Tax effects of adjustments (2)
|
4,869 | 39,264 | (11,279) | 13,299 | |||||||||||||||||||
Adjustments attributable to noncontrolling interest (3)
|
777 | 11,994 | 1,641 | (4,417) | |||||||||||||||||||
Non-GAAP operating income attributable to Enstar ordinary shareholders (4)
|
$ | 290,540 | $ | 567,642 | $ | 574,271 | $ | 229,838 | |||||||||||||||
Diluted net earnings per ordinary share | $ | 17.28 | $ | 36.65 | $ | 25.60 | $ | 12.93 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Net realized and unrealized (gains) losses on fixed maturity investments and funds held - directly managed (1)
|
(5.04) | (19.15) | 4.40 | (6.42) | |||||||||||||||||||
Change in fair value of insurance contracts for which we have elected the fair value option | 0.81 | 6.15 | (2.64) | 3.48 | |||||||||||||||||||
Net gain on sales of subsidiaries | — | — | (0.68) | — | |||||||||||||||||||
Net loss from discontinued operations | — | 0.05 | — | 0.15 | |||||||||||||||||||
Tax effects of adjustments (2)
|
0.22 | 1.80 | (0.52) | 0.61 | |||||||||||||||||||
Adjustments attributable to noncontrolling interest (3)
|
0.04 | 0.55 | 0.07 | (0.20) | |||||||||||||||||||
Diluted non-GAAP operating income per ordinary share (4)
|
$ | 13.31 | $ | 26.05 | $ | 26.23 | $ | 10.55 | |||||||||||||||
Weighted average ordinary shares outstanding: | |||||||||||||||||||||||
Basic | 21,631,749 | 21,565,240 | 21,597,236 | 21,557,542 | |||||||||||||||||||
Diluted | 21,832,218 | 21,789,242 | 21,892,744 | 21,788,331 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 59,644 | $ | 142,871 | $ | (83,227) | $ | 152,520 | $ | 302,222 | $ | (149,702) | |||||||||||||||||||||||
Fees and commission income | 8,274 | 10,010 | (1,736) | 17,872 | 17,538 | 334 | |||||||||||||||||||||||||||||
Net investment income (1)
|
76,147 | 94,443 | (18,296) | 138,236 | 169,157 | (30,921) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (1)
|
405,220 | 967,608 | (562,388) | 384,432 | 338,547 | 45,885 | |||||||||||||||||||||||||||||
Other income (expense) | (3,359) | (1,087) | (2,272) | (2,808) | 19,357 | (22,165) | |||||||||||||||||||||||||||||
Net gain on sales of subsidiaries | — | — | — | 14,894 | — | 14,894 | |||||||||||||||||||||||||||||
545,926 | 1,213,845 | (667,919) | 705,146 | 846,821 | (141,675) | ||||||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | 39,304 | 186,692 | (147,388) | (16,203) | 229,992 | (246,195) | |||||||||||||||||||||||||||||
Acquisition costs | 4,956 | 49,067 | (44,111) | 38,970 | 95,110 | (56,140) | |||||||||||||||||||||||||||||
General and administrative expenses | 92,717 | 144,830 | (52,113) | 175,717 | 243,258 | (67,541) | |||||||||||||||||||||||||||||
Interest expense | 16,301 | 14,018 | 2,283 | 32,480 | 27,433 | 5,047 | |||||||||||||||||||||||||||||
Net foreign exchange (gains) losses | (9,139) | 5,158 | (14,297) | (6,505) | (6,781) | 276 | |||||||||||||||||||||||||||||
144,139 | 399,765 | (255,626) | 224,459 | 589,012 | (364,553) | ||||||||||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | 401,787 | 814,080 | (412,293) | 480,687 | 257,809 | 222,878 | |||||||||||||||||||||||||||||
Income tax expense | (9,422) | (16,652) | 7,230 | (3,440) | (11,380) | 7,940 | |||||||||||||||||||||||||||||
Earnings (loss) from equity method investments | (3,059) | (8,790) | 5,731 | 114,972 | 3,660 | 111,312 | |||||||||||||||||||||||||||||
NET EARNINGS FROM CONTINUING OPERATIONS | 389,306 | 788,638 | (399,332) | 592,219 | 250,089 | 342,130 | |||||||||||||||||||||||||||||
Net loss from discontinued operations, net of income taxes | — | (1,152) | 1,152 | — | (3,221) | 3,221 | |||||||||||||||||||||||||||||
NET EARNINGS | 389,306 | 787,486 | (398,180) | 592,219 | 246,868 | 345,351 | |||||||||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (3,055) | 19,992 | (23,047) | (13,846) | 52,714 | (66,560) | |||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR | 386,251 | 807,478 | (421,227) | 578,373 | 299,582 | 278,791 | |||||||||||||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | — | (17,850) | (17,850) | — | |||||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | 377,326 | $ | 798,553 | $ | (421,227) | $ | 560,523 | $ | 281,732 | $ | 278,791 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Results by segment: | |||||||||||||||||||||||||||||||||||
Run-off | $ | 8,699 | $ | 19,576 | $ | (10,877) | $ | 42,195 | $ | 65,253 | $ | (23,058) | |||||||||||||||||||||||
Investments | 465,507 | 993,263 | (527,756) | 621,850 | 492,430 | 129,420 | |||||||||||||||||||||||||||||
Legacy Underwriting | (1,432) | (23,200) | 21,768 | — | (92,569) | 92,569 | |||||||||||||||||||||||||||||
Corporate and other | (95,448) | (191,086) | 95,638 | (103,522) | (183,382) | 79,860 | |||||||||||||||||||||||||||||
Net earnings attributable to Enstar ordinary shareholders | $ | 377,326 | $ | 798,553 | $ | (421,227) | $ | 560,523 | $ | 281,732 | $ | 278,791 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Gross premiums written
|
$ | 8,001 | $ | (2,155) | $ | 10,156 | $ | 30,184 | $ | (1,828) | $ | 32,012 | |||||||||||||||||||||||
Ceded premiums written
|
2,160 | (1,048) | 3,208 | (15,525) | 801 | (16,326) | |||||||||||||||||||||||||||||
Net premiums written
|
10,161 | (3,203) | 13,364 | 14,659 | (1,027) | 15,686 | |||||||||||||||||||||||||||||
Gross premiums earned | $ | 61,564 | $ | 14,395 | 47,169 | $ | 155,770 | $ | 32,473 | 123,297 | |||||||||||||||||||||||||
Ceded premiums earned | (19,160) | (3,878) | (15,282) | (40,530) | (5,926) | (34,604) | |||||||||||||||||||||||||||||
Net premiums earned | $ | 42,404 | $ | 10,517 | 31,887 | $ | 115,240 | $ | 26,547 | 88,693 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior
Periods |
Current
Period |
Total |
Prior
Periods |
Current
Period |
Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 357,713 | $ | (519) | $ | 357,194 | $ | 283,604 | $ | (202) | $ | 283,402 | |||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(129,991) | 7,244 | (122,747) | (75,276) | (830) | (76,106) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(269,418) | 33,720 | (235,698) | (264,238) | 9,118 | (255,120) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (41,696) | 40,445 | (1,251) | (55,910) | 8,086 | (47,824) | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE(3)
|
(16,710) | 964 | (15,746) | (12,425) | — | (12,425) | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (58,406) | $ | 41,409 | $ | (16,997) | $ | (68,335) | $ | 8,086 | $ | (60,249) |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior
Periods |
Current
Period |
Total |
Prior
Periods |
Current
Period |
Total | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Net losses paid | $ | 685,067 | $ | 2,756 | $ | 687,823 | $ | 541,330 | $ | 1,038 | $ | 542,368 | |||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(247,147) | 5,037 | (242,110) | (251,528) | 842 | (250,686) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(504,983) | 75,342 | (429,641) | (373,275) | 14,055 | (359,220) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (67,063) | 83,135 | 16,072 | (83,473) | 15,935 | (67,538) | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE(3)
|
(30,879) | 2,435 | (28,444) | (19,904) | — | (19,904) | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (97,942) | $ | 85,570 | $ | (12,372) | $ | (103,377) | $ | 15,935 | $ | (87,442) |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||||||||
Net investment income (1)
|
$ | 75,859 | $ | 86,263 | $ | (10,404) | $ | 137,190 | $ | 151,226 | $ | (14,036) | |||||||||||||||||||||||
Net realized and unrealized gains (1)
|
405,010 | 926,494 | (521,484) | 385,531 | 351,812 | 33,719 | |||||||||||||||||||||||||||||
480,869 | 1,012,757 | (531,888) | 522,721 | 503,038 | 19,683 | ||||||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||
General and administrative expenses (2)
|
12,303 | 10,704 | 1,599 | 15,843 | 14,268 | 1,575 | |||||||||||||||||||||||||||||
12,303 | 10,704 | 1,599 | 15,843 | 14,268 | 1,575 | ||||||||||||||||||||||||||||||
EARNINGS BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | 468,566 | 1,002,053 | (533,487) | 506,878 | 488,770 | 18,108 | |||||||||||||||||||||||||||||
Earnings (loss) from equity method investments | (3,059) | (8,790) | 5,731 | 114,972 | 3,660 | 111,312 | |||||||||||||||||||||||||||||
SEGMENT INCOME | $ | 465,507 | $ | 993,263 | $ | (527,756) | $ | 621,850 | $ | 492,430 | $ | 129,420 | |||||||||||||||||||||||
Supplemental information: | |||||||||||||||||||||||||||||||||||
Net investment income (1)
|
$ | 75,859 | $ | 86,263 | $ | (10,404) | $ | 137,190 | $ | 151,226 | $ | (14,036) | |||||||||||||||||||||||
Net realized and unrealized gains (1)
|
405,010 | 926,494 | (521,484) | 385,531 | 351,812 | 33,719 | |||||||||||||||||||||||||||||
Total investment return included in net earnings | 480,869 | 1,012,757 | $ | (531,888) | $ | 522,721 | $ | 503,038 | $ | 19,683 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||||||||
Net premiums earned | $ | 17,240 | $ | 132,354 | $ | (115,114) | $ | 37,280 | $ | 275,675 | $ | (238,395) | |||||||||||||||||||||||
Fees and commission income | — | 6,044 | (6,044) | — | 8,587 | (8,587) | |||||||||||||||||||||||||||||
Net investment income | 288 | 8,180 | (7,892) | 1,046 | 17,931 | (16,885) | |||||||||||||||||||||||||||||
Net realized and unrealized gains (losses) | 210 | 41,114 | (40,904) | (1,099) | (13,265) | 12,166 | |||||||||||||||||||||||||||||
Other income (expense) | (2,549) | 30 | (2,579) | (9,067) | 150 | (9,217) | |||||||||||||||||||||||||||||
15,189 | 187,722 | (172,533) | 28,160 | 289,078 | (260,918) | ||||||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | 10,281 | 95,382 | (85,101) | 14,759 | 200,913 | (186,154) | |||||||||||||||||||||||||||||
Acquisition costs | 4,922 | 45,478 | (40,556) | 9,899 | 84,614 | (74,715) | |||||||||||||||||||||||||||||
General and administrative expenses | 1,418 | 70,062 | (68,644) | 3,502 | 96,120 | (92,618) | |||||||||||||||||||||||||||||
16,621 | 210,922 | (194,301) | 28,160 | 381,647 | (353,487) | ||||||||||||||||||||||||||||||
SEGMENT INCOME (LOSS) | $ | (1,432) | $ | (23,200) | $ | 21,768 | $ | — | $ | (92,569) | $ | 92,569 | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Gross premiums written
|
$ | 13,515 | $ | 141,547 | $ | (128,032) | $ | 41,089 | $ | 350,981 | $ | (309,892) | |||||||||||||||||||||||
Ceded premiums written
|
(6,501) | (17,568) | 11,067 | (22,608) | (74,719) | 52,111 | |||||||||||||||||||||||||||||
Net premiums written
|
7,014 | 123,979 | (116,965) | 18,481 | 276,262 | (257,781) | |||||||||||||||||||||||||||||
Gross premiums earned | $ | 38,060 | $ | 167,235 | $ | (129,175) | $ | 86,119 | $ | 344,278 | $ | (258,159) | |||||||||||||||||||||||
Ceded premiums earned | (20,820) | (34,881) | 14,061 | (48,839) | (68,603) | 19,764 | |||||||||||||||||||||||||||||
Net premiums earned | $ | 17,240 | $ | 132,354 | $ | (115,114) | $ | 37,280 | $ | 275,675 | $ | (238,395) |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | (3,046) | $ | 6,411 | $ | 3,365 | $ | 86,380 | $ | 11,505 | $ | 97,885 | |||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
7,838 | (2,574) | 5,264 | (29,802) | 443 | (29,359) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(1,954) | 3,853 | 1,899 | (72,997) | 71,968 | (1,029) | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | 2,838 | 7,690 | 10,528 | (16,419) | 83,916 | 67,497 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(313) | 66 | (247) | 274 | 27,611 | 27,885 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | 2,525 | $ | 7,756 | $ | 10,281 | $ | (16,145) | $ | 111,527 | $ | 95,382 |
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Prior Period | Current Period | Total | Prior Period | Current Period | Total | ||||||||||||||||||||||||||||||
Net losses paid | $ | 5,630 | $ | 9,638 | $ | 15,268 | $ | 184,673 | $ | 14,072 | $ | 198,745 | |||||||||||||||||||||||
Net change in case and LAE reserves (1)
|
(4,692) | 2,185 | (2,507) | (73,340) | 8,793 | (64,547) | |||||||||||||||||||||||||||||
Net change in IBNR reserves (2)
|
(3,304) | 5,992 | 2,688 | (129,786) | 168,006 | 38,220 | |||||||||||||||||||||||||||||
Increase (reduction) in estimates of net ultimate losses | (2,366) | 17,815 | 15,449 | (18,453) | 190,871 | 172,418 | |||||||||||||||||||||||||||||
Increase (reduction) in provisions for unallocated LAE (3)
|
(530) | (160) | (690) | 183 | 28,312 | 28,495 | |||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | (2,896) | $ | 17,655 | $ | 14,759 | $ | (18,270) | $ | 219,183 | $ | 200,913 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
June 30,
|
June 30,
|
||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
INCOME | |||||||||||||||||||||||||||||||||||
Other income (expense) (1)
|
$ | (6,006) | $ | (2,016) | $ | (3,990) | $ | (11,252) | $ | (9,455) | $ | (1,797) | |||||||||||||||||||||||
Net gain on sales of subsidiaries | — | — | — | 14,894 | — | 14,894 | |||||||||||||||||||||||||||||
(6,006) | (2,016) | (3,990) | 3,642 | (9,455) | 13,097 | ||||||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||
Net incurred losses and LAE (2)
|
46,020 | 151,559 | (105,539) | (18,590) | 116,521 | (135,111) | |||||||||||||||||||||||||||||
General and administrative expenses (3)
|
14,858 | 11,598 | 3,260 | 64,643 | 57,017 | 7,626 | |||||||||||||||||||||||||||||
60,878 | 163,157 | (102,279) | 46,053 | 173,538 | (127,485) | ||||||||||||||||||||||||||||||
LOSS BEFORE INTEREST EXPENSE, FOREIGN EXCHANGE AND INCOME TAXES | (66,884) | (165,173) | 98,289 | (42,411) | (182,993) | 140,582 | |||||||||||||||||||||||||||||
Interest expense | (16,301) | (14,018) | (2,283) | (32,480) | (27,433) | (5,047) | |||||||||||||||||||||||||||||
Net foreign exchange gains (losses) | 9,139 | (5,158) | 14,297 | 6,505 | 6,781 | (276) | |||||||||||||||||||||||||||||
Income tax expense | (9,422) | (16,652) | 7,230 | (3,440) | (11,380) | 7,940 | |||||||||||||||||||||||||||||
Net loss from discontinued operations, net of income taxes | — | (1,152) | 1,152 | — | (3,221) | 3,221 | |||||||||||||||||||||||||||||
Net (earnings) loss attributable to noncontrolling interest | (3,055) | 19,992 | (23,047) | (13,846) | 52,714 | (66,560) | |||||||||||||||||||||||||||||
Dividends on preferred shares | (8,925) | (8,925) | — | (17,850) | (17,850) | — | |||||||||||||||||||||||||||||
NET LOSS ATTRIBUTABLE TO ENSTAR ORDINARY SHAREHOLDERS | $ | (95,448) | $ | (191,086) | $ | 95,638 | $ | (103,522) | $ | (183,382) | $ | 79,860 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred charges and gains (1)
|
$ | 23,011 | $ | 10,400 | $ | 31,080 | $ | 24,733 | |||||||||||||||||||||||||||||||||||||||
Amortization of fair value adjustments (2)
|
5,296 | 7,116 | 8,089 | 15,982 | |||||||||||||||||||||||||||||||||||||||||||
Changes in fair value - fair value option (3)
|
17,713 | 134,043 | (57,759) | 75,806 | |||||||||||||||||||||||||||||||||||||||||||
Net incurred losses and LAE | $ | 46,020 | $ | 151,559 | $ | (18,590) | $ | 116,521 |
Three Months Ended | Six Months Ended | |||||||||||||
June 30, 2020 | June 30, 2020 | |||||||||||||
StarStone U.S. Group net earnings (loss) before Intra-Group Cessions | $ | 8,870 | $ | 18,194 | ||||||||||
Intra-Group Cessions | (10,022) | (21,415) | ||||||||||||
StarStone U.S. net loss, net of income taxes | $ | (1,152) | $ | (3,221) |
June 30, 2021 | |||||||||||||||||||||||||||||
Investments | Legacy Underwriting | Total | |||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||
Short-term investments, trading, at fair value | $ | 19,788 | $ | — | $ | 19,788 | |||||||||||||||||||||||
Short-term investments, AFS, at fair value | 110,473 | — | 110,473 | ||||||||||||||||||||||||||
Fixed maturities, trading, at fair value | 3,922,685 | 165,717 | 4,088,402 | ||||||||||||||||||||||||||
Fixed maturities, AFS, at fair value | 5,464,936 | 1,102 | 5,466,038 | ||||||||||||||||||||||||||
Funds held - directly managed | 1,028,503 | — | 1,028,503 | ||||||||||||||||||||||||||
Equities, at fair value | 1,158,219 | — | 1,158,219 | ||||||||||||||||||||||||||
Other investments, at fair value | 1,802,442 | 12,151 | 1,814,593 | ||||||||||||||||||||||||||
Equity method investments | 936,430 | — | 936,430 | ||||||||||||||||||||||||||
Total investments | 14,443,476 | 178,970 | 14,622,446 | ||||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash) | 1,096,978 | 29,280 | 1,126,258 | ||||||||||||||||||||||||||
Funds held by reinsured companies | 2,170,402 | 31,556 | 2,201,958 | ||||||||||||||||||||||||||
Net variable interest entity assets of the InRe Fund (1)
|
2,219,712 | — | 2,219,712 | ||||||||||||||||||||||||||
Total investable assets | $ | 19,930,568 | $ | 239,806 | $ | 20,170,374 | |||||||||||||||||||||||
Duration (in years) (2)
|
4.73 | 2.20 | 4.69 | ||||||||||||||||||||||||||
Average credit rating (3)
|
A+ | AA- | A+ |
December 31, 2020 | |||||||||||||||||||||||||||||
Investments | Legacy Underwriting | Total | |||||||||||||||||||||||||||
(in thousands of U.S. dollars) | |||||||||||||||||||||||||||||
Short-term investments, trading, at fair value | $ | 5,129 | $ | — | $ | 5,129 | |||||||||||||||||||||||
Short-term investments, AFS, at fair value | 263,795 | — | 263,795 | ||||||||||||||||||||||||||
Fixed maturities, trading, at fair value | 4,145,956 | 448,936 | 4,594,892 | ||||||||||||||||||||||||||
Fixed maturities, AFS, at fair value | 3,194,327 | 200,773 | 3,395,100 | ||||||||||||||||||||||||||
Funds held - directly managed | 1,074,890 | — | 1,074,890 | ||||||||||||||||||||||||||
Equities, at fair value | 773,744 | 73,051 | 846,795 | ||||||||||||||||||||||||||
Other investments, at fair value (1)
|
4,146,271 | 97,763 | 4,244,034 | ||||||||||||||||||||||||||
Equity method investments | 597,295 | 235,000 | 832,295 | ||||||||||||||||||||||||||
Total investments | 14,201,407 | 1,055,523 | 15,256,930 | ||||||||||||||||||||||||||
Cash and cash equivalents (including restricted cash) | 1,112,273 | 260,843 | 1,373,116 | ||||||||||||||||||||||||||
Funds held by reinsured companies | 553,973 | 81,846 | 635,819 | ||||||||||||||||||||||||||
Total investable assets | $ | 15,867,653 | $ | 1,398,212 | $ | 17,265,865 | |||||||||||||||||||||||
Duration (in years) (2)
|
5.09 | 1.96 | 4.82 | ||||||||||||||||||||||||||
Average credit rating (3)
|
A+ | AA- | A+ |
Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
As of June 30, 2021 | Amortized Cost | Gross Unrealized Gains | Non-Credit Related Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||
U.S. government and agency | $ | 784,054 | $ | 10,543 | $ | (5,158) | $ | — | $ | 789,439 | ||||||||||||||||||||||
U.K. government | 40,011 | 1,877 | (192) | — | 41,696 | |||||||||||||||||||||||||||
Other government | 460,069 | 23,256 | (3,005) | (41) | 480,279 | |||||||||||||||||||||||||||
Corporate | 6,378,115 | 308,841 | (26,787) | (7,171) | 6,652,998 | |||||||||||||||||||||||||||
Municipal | 227,235 | 17,533 | (309) | — | 244,459 | |||||||||||||||||||||||||||
Residential mortgage-backed | 569,169 | 6,215 | (3,128) | (17) | 572,239 | |||||||||||||||||||||||||||
Commercial mortgage-backed | 966,496 | 29,128 | (8,213) | (157) | 987,254 | |||||||||||||||||||||||||||
Asset-backed | 939,474 | 3,018 | (6,899) | — | 935,593 | |||||||||||||||||||||||||||
10,364,623 | 400,411 | (53,691) | (7,386) | 10,703,957 | ||||||||||||||||||||||||||||
InRe Fund (1)
|
149,118 | 49,675 | — | — | 198,793 | |||||||||||||||||||||||||||
$ | 10,513,617 | $ | 450,210 | $ | (53,691) | $ | (7,386) | $ | 10,902,750 |
Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 | Amortized Cost | Gross Unrealized Gains | Non-Credit Related Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 935,014 | $ | 17,148 | $ | (1,114) | $ | — | $ | 951,048 | ||||||||||||||||||||||||||||
U.K. government | 46,988 | 4,094 | — | — | 51,082 | |||||||||||||||||||||||||||||||||
Other government | 463,765 | 38,460 | (72) | — | 502,153 | |||||||||||||||||||||||||||||||||
Corporate | 5,226,238 | 463,459 | (2,784) | (181) | 5,686,732 | |||||||||||||||||||||||||||||||||
Municipal | 145,469 | 17,210 | (10) | — | 162,669 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed | 545,628 | 9,640 | (1,323) | — | 553,945 | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 828,155 | 37,318 | (11,250) | (133) | 854,090 | |||||||||||||||||||||||||||||||||
Asset-backed | 567,638 | 3,682 | (13,852) | (8) | 557,460 | |||||||||||||||||||||||||||||||||
$ | 8,758,895 | $ | 591,011 | $ | (30,405) | $ | (322) | $ | 9,319,179 |
Fair Value | Average Credit Rating | |||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||
Bank of America Corp | $ | 136,071 | A | |||||||||||
Citigroup Inc | 119,550 | A- | ||||||||||||
Morgan Stanley | 109,975 | A | ||||||||||||
JPMorgan Chase & Co. | 104,958 | A | ||||||||||||
Wells Fargo & Co | 93,383 | A | ||||||||||||
Comcast Corp | 89,141 | A- | ||||||||||||
Apple Inc | 79,340 | AA+ | ||||||||||||
AT&T Inc | 71,316 | BBB | ||||||||||||
Verizon Communications Inc | 60,884 | BBB+ | ||||||||||||
Oracle Corp | 60,075 | BBB+ | ||||||||||||
$ | 924,693 |
Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Investments | Legacy Underwriting | Total | |||||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 85,962 | $ | 539 | $ | 86,501 | |||||||||||||||||||||||
Cash and restricted cash | (87) | (292) | (379) | ||||||||||||||||||||||||||
Other investments, including equities | 13,464 | (1) | 13,463 | ||||||||||||||||||||||||||
Less: Investment expenses | (3,309) | 42 | (3,267) | ||||||||||||||||||||||||||
Net investment expenses of the InRe Fund (2)
|
(20,171) | — | (20,171) | ||||||||||||||||||||||||||
Total net investment income | $ | 75,859 | $ | 288 | $ | 76,147 | |||||||||||||||||||||||
Net realized gains: | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 17,589 | $ | 134 | $ | 17,723 | |||||||||||||||||||||||
Other investments, including equities | 774 | — | 774 | ||||||||||||||||||||||||||
Net realized gains of the InRe Fund (2)
|
321,705 | — | 321,705 | ||||||||||||||||||||||||||
Total net realized gains | $ | 340,068 | $ | 134 | $ | 340,202 | |||||||||||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities, trading (1)
|
$ | 57,610 | $ | (69) | $ | 57,541 | |||||||||||||||||||||||
Other investments, including equities | 112,307 | 145 | 112,452 | ||||||||||||||||||||||||||
Net unrealized losses of the InRe Fund (2)
|
(104,975) | — | (104,975) | ||||||||||||||||||||||||||
Total net unrealized gains | $ | 64,942 | $ | 76 | $ | 65,018 | |||||||||||||||||||||||
Total investment return included in earnings (A) | $ | 480,869 | $ | 498 | $ | 481,367 | |||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||
Unrealized gains (losses), on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1)
|
$ | 58,575 | $ | (18) | $ | 58,557 | |||||||||||||||||||||||
Total investment return = (A) + (B) | $ | 539,444 | $ | 480 | $ | 539,924 | |||||||||||||||||||||||
Annualized income from fixed income assets (3)
|
$ | 343,500 | $ | 988 | $ | 344,488 | |||||||||||||||||||||||
Average aggregate fixed income assets, at cost (3)(4)
|
12,318,318 | 220,790 | 12,539,108 | ||||||||||||||||||||||||||
Annualized investment book yield | 2.79 | % | 0.45 | % | 2.75 | % | |||||||||||||||||||||||
Average aggregate invested assets, at fair value (4)
|
$ | 18,002,055 | $ | 235,971 | $ | 18,238,026 | |||||||||||||||||||||||
Investment return included in net earnings | 2.67 | % | 0.21 | % | 2.64 | % | |||||||||||||||||||||||
Total investment return | 3.00 | % | 0.20 | % | 2.96 | % |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Investments | Legacy Underwriting | Total | |||||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 80,216 | $ | 7,440 | $ | 87,656 | |||||||||||||||||||||||
Cash and restricted cash | 861 | (144) | 717 | ||||||||||||||||||||||||||
Other investments, including equities | 7,781 | 1,272 | 9,053 | ||||||||||||||||||||||||||
Less: Investment expenses | (2,595) | (388) | (2,983) | ||||||||||||||||||||||||||
Total net investment income | $ | 86,263 | $ | 8,180 | $ | 94,443 | |||||||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 56,557 | $ | (248) | $ | 56,309 | |||||||||||||||||||||||
Other investments, including equities | 489 | 1,397 | 1,886 | ||||||||||||||||||||||||||
Total net realized gains | $ | 57,046 | $ | 1,149 | $ | 58,195 | |||||||||||||||||||||||
Net unrealized gains: | |||||||||||||||||||||||||||||
Fixed income securities, trading (1)
|
$ | 328,437 | $ | 32,618 | $ | 361,055 | |||||||||||||||||||||||
Other investments, including equities (2)
|
175,957 | 7,347 | 183,304 | ||||||||||||||||||||||||||
Net unrealized gains of the InRe Fund (2)
|
365,054 | — | 365,054 | ||||||||||||||||||||||||||
Total net unrealized gains | $ | 869,448 | $ | 39,965 | $ | 909,413 | |||||||||||||||||||||||
Total investment return included in earnings (A) | $ | 1,012,757 | $ | 49,294 | $ | 1,062,051 | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Unrealized gains, on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1)
|
$ | 79,133 | $ | 11,285 | $ | 90,418 | |||||||||||||||||||||||
Total investment return = (A) + (B) | $ | 1,091,890 | $ | 60,579 | $ | 1,152,469 | |||||||||||||||||||||||
Annualized income from fixed income assets (3)
|
$ | 324,308 | $ | 29,184 | $ | 353,492 | |||||||||||||||||||||||
Average aggregate fixed income assets, at cost (3)(4)
|
9,539,974 | 1,292,794 | 10,832,768 | ||||||||||||||||||||||||||
Annualized investment book yield | 3.40 | % | 2.26 | % | 3.26 | % | |||||||||||||||||||||||
Average aggregate invested assets, at fair value (4)
|
$ | 12,894,658 | $ | 1,479,039 | $ | 14,373,697 | |||||||||||||||||||||||
Investment return included in net earnings | 7.85 | % | 3.33 | % | 7.39 | % | |||||||||||||||||||||||
Total investment return | 8.47 | % | 4.10 | % | 8.02 | % |
Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Investments | Legacy Underwriting | Total | |||||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 137,456 | $ | 1,245 | $ | 138,701 | |||||||||||||||||||||||
Cash and restricted cash | (346) | (121) | (467) | ||||||||||||||||||||||||||
Other investments, including equities | 27,056 | (1) | 27,055 | ||||||||||||||||||||||||||
Less: Investment expenses | (6,805) | (77) | (6,882) | ||||||||||||||||||||||||||
Net investment expenses of the InRe Fund (2)
|
(20,171) | — | (20,171) | ||||||||||||||||||||||||||
Total net investment income | $ | 137,190 | $ | 1,046 | $ | 138,236 | |||||||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 24,640 | $ | 13 | $ | 24,653 | |||||||||||||||||||||||
Other investments, including equities | (17) | — | (17) | ||||||||||||||||||||||||||
Net realized gains of the InRe Fund (2)
|
321,705 | — | 321,705 | ||||||||||||||||||||||||||
Total net realized gains | $ | 346,328 | $ | 13 | $ | 346,341 | |||||||||||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities, trading (1)
|
$ | (154,189) | $ | (1,383) | $ | (155,572) | |||||||||||||||||||||||
Other investments, including equities (2)
|
221,760 | 271 | 222,031 | ||||||||||||||||||||||||||
Net unrealized losses of the InRe Fund (2)
|
(28,368) | — | (28,368) | ||||||||||||||||||||||||||
Total net unrealized gains (losses) | $ | 39,203 | $ | (1,112) | $ | 38,091 | |||||||||||||||||||||||
Total investment return included in earnings (A) | $ | 522,721 | $ | (53) | $ | 522,668 | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Unrealized losses, on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1)
|
$ | (46,846) | $ | (55) | $ | (46,901) | |||||||||||||||||||||||
Total investment return = (A) + (B) | $ | 475,875 | $ | (108) | $ | 475,767 | |||||||||||||||||||||||
Annualized income from fixed income assets (3)
|
$ | 274,220 | $ | 2,248 | $ | 276,468 | |||||||||||||||||||||||
Average aggregate fixed income assets, at cost (3)(4)
|
11,801,835 | 224,040 | 12,025,875 | ||||||||||||||||||||||||||
Annualized investment book yield | 2.32 | % | 1.00 | % | 2.30 | % | |||||||||||||||||||||||
Average aggregate invested assets, at fair value (4)
|
$ | 17,494,305 | $ | 239,383 | $ | 17,733,688 | |||||||||||||||||||||||
Investment return included in net earnings | 2.99 | % | (0.02) | % | 2.95 | % | |||||||||||||||||||||||
Total investment return | 2.72 | % | (0.05) | % | 2.68 | % |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Investments | Legacy Underwriting | Total | |||||||||||||||||||||||||||
Net investment income: | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 136,352 | $ | 14,307 | $ | 150,659 | |||||||||||||||||||||||
Cash and restricted cash | 2,242 | 625 | 2,867 | ||||||||||||||||||||||||||
Other investments, including equities | 19,045 | 4,064 | 23,109 | ||||||||||||||||||||||||||
Less: Investment expenses | (6,413) | (1,065) | (7,478) | ||||||||||||||||||||||||||
Total net investment income | $ | 151,226 | $ | 17,931 | $ | 169,157 | |||||||||||||||||||||||
Net realized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities (1)
|
$ | 59,827 | $ | 700 | $ | 60,527 | |||||||||||||||||||||||
Other investments, including equities | (708) | 1,587 | 879 | ||||||||||||||||||||||||||
Total net realized gains | $ | 59,119 | $ | 2,287 | $ | 61,406 | |||||||||||||||||||||||
Net unrealized gains (losses): | |||||||||||||||||||||||||||||
Fixed income securities, trading (1)
|
$ | 86,887 | $ | (7,611) | $ | 79,276 | |||||||||||||||||||||||
Other investments, including equities (2)
|
(114,390) | (7,941) | (122,331) | ||||||||||||||||||||||||||
Net unrealized gains of the InRe Fund (2)
|
320,196 | — | 320,196 | ||||||||||||||||||||||||||
Total net unrealized gains (losses) | $ | 292,693 | $ | (15,552) | $ | 277,141 | |||||||||||||||||||||||
Total investment return included in earnings (A) | $ | 503,038 | $ | 4,666 | $ | 507,704 | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||
Unrealized gains, on fixed income securities, AFS, net of reclassification adjustments excluding foreign exchange (B) (1)
|
$ | 39,199 | $ | 1,582 | $ | 40,781 | |||||||||||||||||||||||
Total investment return = (A) + (B) | $ | 542,237 | $ | 6,248 | $ | 548,485 | |||||||||||||||||||||||
Annualized income from fixed income assets (3)
|
$ | 277,188 | $ | 29,864 | $ | 307,052 | |||||||||||||||||||||||
Average aggregate fixed income assets, at cost (3)(4)
|
9,357,926 | 1,290,429 | 10,648,355 | ||||||||||||||||||||||||||
Annualized investment book yield | 2.96 | % | 2.31 | % | 2.88 | % | |||||||||||||||||||||||
Average aggregate invested assets, at fair value (4)
|
$ | 12,668,261 | $ | 1,512,819 | $ | 14,181,080 | |||||||||||||||||||||||
Investment return included in net earnings | 3.97 | % | 0.31 | % | 3.58 | % | |||||||||||||||||||||||
Total investment return | 4.28 | % | 0.41 | % | 3.87 | % |
June 30, 2021 | December 31, 2020 | Change | ||||||||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||||||||
Ordinary shareholders' equity | $ | 6,677,308 | $ | 6,164,395 | $ | 512,913 | ||||||||||||||
Series D and E Preferred Shares | 510,000 | 510,000 | — | |||||||||||||||||
Total Enstar Shareholders' Equity (A) | 7,187,308 | 6,674,395 | 512,913 | |||||||||||||||||
Noncontrolling interest | 12,635 | 13,609 | (974) | |||||||||||||||||
Total Shareholders' Equity (B) | 7,199,943 | 6,688,004 | 511,939 | |||||||||||||||||
Senior Notes | 844,269 | 843,447 | 822 | |||||||||||||||||
Junior Subordinated Notes | 344,943 | 344,812 | 131 | |||||||||||||||||
Revolving credit facility | 175,000 | 185,000 | (10,000) | |||||||||||||||||
Total debt (C) | 1,364,212 | 1,373,259 | (9,047) | |||||||||||||||||
Redeemable noncontrolling interest (D) | 177,449 | 365,436 | (187,987) | |||||||||||||||||
Total capitalization = (B) + (C) + (D) | $ | 8,741,604 | $ | 8,426,699 | $ | 314,905 | ||||||||||||||
Total capitalization attributable to Enstar = (A) + (C) | $ | 8,551,520 | $ | 8,047,654 | $ | 503,866 | ||||||||||||||
Debt to total capitalization | 15.6 | % | 16.3 | % | (0.7) | % | ||||||||||||||
Debt and Series D and E Preferred Shares to total capitalization | 21.4 | % | 22.3 | % | (0.9) | % | ||||||||||||||
Debt to total capitalization attributable to Enstar | 16.0 | % | 17.1 | % | (1.1) | % | ||||||||||||||
Debt and Series D and E Preferred Shares to total capitalization attributable to Enstar | 21.9 | % | 23.4 | % | (1.5) | % |
Six Months Ended June 30, | ||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
(in thousands of U.S. dollars) | ||||||||||||||||||||
Cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 2,355,016 | $ | 849,161 | $ | 1,505,855 | ||||||||||||||
Investing activities | (1,785,147) | (1,156,139) | (629,008) | |||||||||||||||||
Financing activities | (39,917) | 319,624 | (359,541) | |||||||||||||||||
Net cash flows from discontinued operations | — | 1,156 | (1,156) | |||||||||||||||||
Effect of exchange rate changes on cash | 2,527 | 4,526 | (1,999) | |||||||||||||||||
Net increase in cash and cash equivalents | 532,479 | 18,328 | 514,151 | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 1,373,116 | 971,349 | 401,767 | |||||||||||||||||
Net change in cash of businesses held-for-sale | 223,200 | (1,156) | 224,356 | |||||||||||||||||
Total cash and cash equivalents and restricted cash, end of period | $ | 2,128,795 | $ | 988,521 | $ | 1,140,274 | ||||||||||||||
Reconciliation to Condensed Consolidated Balance Sheets: | ||||||||||||||||||||
Cash and Cash equivalents | $ | 769,359 | $ | 651,855 | $ | 117,504 | ||||||||||||||
Restricted cash and cash equivalents | 356,899 | 336,666 | 20,233 | |||||||||||||||||
Cash and restricted cash and cash equivalents of the InRe Fund | 1,002,537 | — | 1,002,537 | |||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 2,128,795 | $ | 988,521 | $ | 1,140,274 |
Facility | Origination Date | Term | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
4.50% Senior Notes due 2022 | March 10, 2017 | 5 years | $ | 349,492 | $ | 349,253 | ||||||||||||||||||||
4.95% Senior Notes due 2029 | May 28, 2019 | 10 years | 494,777 | 494,194 | ||||||||||||||||||||||
Total Senior Notes | 844,269 | 843,447 | ||||||||||||||||||||||||
5.75% Junior Subordinated Notes due 2040 | August 26, 2020 | 20 years | 344,943 | 344,812 | ||||||||||||||||||||||
EGL Revolving Credit Facility | August 16, 2018 | 5 years | 175,000 | 185,000 | ||||||||||||||||||||||
Total debt obligations | $ | 1,364,212 | $ | 1,373,259 |
Credit ratings (1)
|
Standard and Poor’s | Fitch Ratings | ||||||||||||
Long-term issuer | BBB (Outlook: Positive) | BBB (Outlook: Positive) | ||||||||||||
Senior notes | BBB | BBB- | ||||||||||||
Junior subordinated notes | BB+ | BB+ | ||||||||||||
Series D preferred shares | BB+ | BB+ | ||||||||||||
Series E preferred shares | BB+ | BB+ |
Total |
Less than
1 Year |
1 - 3
years |
3 - 5
years |
6 - 10
years |
More than
10 Years |
||||||||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||||||||||||||
Estimated gross reserves for losses and LAE for the Run-off segment (1)
|
|||||||||||||||||||||||||||||||||||
Asbestos | $ | 1,708.2 | $ | 139.0 | $ | 251.1 | $ | 207.2 | $ | 323.2 | $ | 787.7 | |||||||||||||||||||||||
Environmental | 291.0 | 32.8 | 56.4 | 42.8 | 58.3 | 100.6 | |||||||||||||||||||||||||||||
General Casualty | 3,118.9 | 300.3 | 392.7 | 461.0 | 1,596.1 | 368.8 | |||||||||||||||||||||||||||||
Workers' compensation/personal accident | 2,705.4 | 226.4 | 418.8 | 420.2 | 547.0 | 1,092.9 | |||||||||||||||||||||||||||||
Marine, aviation and transit | 356.3 | 80.1 | 95.6 | 55.0 | 66.3 | 59.3 | |||||||||||||||||||||||||||||
Construction defect | 167.2 | 31.7 | 58.9 | 40.4 | 28.2 | 8.0 | |||||||||||||||||||||||||||||
Professional indemnity/ Directors & Officers | 1,538.6 | 269.3 | 336.8 | 263.6 | 541.8 | 126.9 | |||||||||||||||||||||||||||||
Motor | 812.1 | 271.0 | 225.7 | 81.0 | 83.4 | 151.0 | |||||||||||||||||||||||||||||
Property | 163.0 | 58.4 | 49.0 | 22.3 | 19.7 | 13.6 | |||||||||||||||||||||||||||||
Other | 575.2 | 138.8 | 149.7 | 89.7 | 85.4 | 111.5 | |||||||||||||||||||||||||||||
StarStone International (Non-U.S.) | 1,191.2 | 396.1 | 419.9 | 195.3 | 144.1 | 35.8 | |||||||||||||||||||||||||||||
Total outstanding losses and IBNR | 12,627.1 | 1,943.9 | 2,454.7 | 1,878.5 | 3,493.7 | 2,856.2 | |||||||||||||||||||||||||||||
ULAE | 428.6 | 69.4 | 91.6 | 63.7 | 95.9 | 108.0 | |||||||||||||||||||||||||||||
Estimated gross reserves for losses and LAE for the Run-off segment (1)
|
13,055.7 | 2,013.3 | 2,546.3 | 1,942.2 | 3,589.6 | 2,964.2 | |||||||||||||||||||||||||||||
Investing Activities | |||||||||||||||||||||||||||||||||||
Unfunded investment commitments | 1,574.2 | 466.8 | 571.4 | 339.6 | 196.4 | — | |||||||||||||||||||||||||||||
Financing Activities | |||||||||||||||||||||||||||||||||||
Loan repayments (including estimated interest payments) | 1,991.1 | 415.3 | 270.0 | 89.7 | 674.9 | 541.2 | |||||||||||||||||||||||||||||
Total | $ | 16,621.0 | $ | 2,895.4 | $ | 3,387.7 | $ | 2,371.5 | $ | 4,460.9 | $ | 3,505.4 |
Interest Rate Shift in Basis Points | ||||||||||||||||||||||||||||||||
As of June 30, 2021 | -100 | -50 | — | +50 | +100 | |||||||||||||||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||||||||||||||||||||
Total Market Value (1)
|
$ | 12,119 | $ | 11,796 | $ | 11,489 | $ | 11,202 | $ | 10,939 | ||||||||||||||||||||||
Market Value Change from Base | 5.5 | % | 2.7 | % | — | % | (2.5) | % | (4.8) | % | ||||||||||||||||||||||
Change in Unrealized Value | $ | 630 | $ | 307 | $ | — | $ | (287) | $ | (550) | ||||||||||||||||||||||
As of December 31, 2020 | -100 | -50 | — | +50 | +100 | |||||||||||||||||||||||||||
Total Market Value (1)
|
$ | 10,632 | $ | 10,324 | $ | 10,028 | $ | 9,756 | $ | 9,495 | ||||||||||||||||||||||
Market Value Change from Base | 6.0 | % | 3.0 | % | — | % | (2.7) | % | (5.3) | % | ||||||||||||||||||||||
Change in Unrealized Value | $ | 604 | $ | 296 | $ | — | $ | (272) | $ | (533) |
Credit Spread Shift in Basis Points | |||||||||||||||||||||||||||||
As at June 30, 2021 | -100 | -50 | — | +50 | +100 | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Total Market Value (1)
|
$ | 12,117 | $ | 11,793 | $ | 11,489 | $ | 11,201 | $ | 10,927 | |||||||||||||||||||
Market Value Change from Base | 5.5 | % | 2.6 | % | (2.5) | % | (4.9) | % | |||||||||||||||||||||
Change in Unrealized Value | $ | 628 | $ | 304 | $ | (288) | $ | (562) | |||||||||||||||||||||
As at December 31, 2020 | -100 | -50 | — | +50 | +100 | ||||||||||||||||||||||||
Total Market Value (1)
|
$ | 10,608 | $ | 10,308 | $ | 10,028 | $ | 9,765 | $ | 9,516 | |||||||||||||||||||
Market Value Change from Base | 5.8 | % | 2.8 | % | (2.6) | % | (5.1) | % | |||||||||||||||||||||
Change in Unrealized Value | $ | 580 | $ | 280 | $ | (263) | $ | (512) |
June 30, 2021 | December 31, 2020 | Change | |||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||
Publicly traded equity investments in common and preferred stocks | $ | 304.7 | $ | 260.8 | $ | 43.9 | |||||||||||
Privately held equity investments in common and preferred stocks | 348.7 | 274.7 | 74.0 | ||||||||||||||
Private equity funds | 536.4 | 363.1 | 173.3 | ||||||||||||||
Equity funds | 5.6 | 190.8 | (185.2) | ||||||||||||||
Equity exchange traded funds | 323.2 | 154.9 | 168.3 | ||||||||||||||
Fair value of equities at risk | $ | 1,518.6 | $ | 1,244.3 | $ | 274.3 | |||||||||||
Impact of 10% decline in fair value | $ | 151.9 | $ | 124.4 | $ | 27.5 |
AUD | CAD | EUR | GBP | Other | Total | |||||||||||||||||||||||||||||||||
As of June 30, 2021 | (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | (6.0) | $ | (7.5) | $ | 2.6 | $ | 29.3 | $ | (0.5) | $ | 17.9 | ||||||||||||||||||||||||||
Pre-tax impact of a 10% movement in USD(1)
|
$ | (0.6) | $ | (0.8) | $ | 0.3 | $ | 2.9 | $ | (0.1) | $ | 1.7 | ||||||||||||||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | 7.0 | $ | (1.9) | $ | 24.4 | $ | 38.9 | $ | 1.5 | $ | 69.9 | ||||||||||||||||||||||||||
Pre-tax impact of a 10% movement in USD(1)
|
$ | 0.7 | $ | (0.2) | $ | 2.4 | $ | 3.9 | $ | 0.2 | $ | 7.0 |
Interest Rate Shift in Basis Points | |||||||||||||||||||||||||||||
As at June 30, 2021 | -100 | -50 | — | +50 | +100 | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Total Market Value | $ | 218 | $ | 213 | $ | 209 | $ | 205 | $ | 200 | |||||||||||||||||||
Market Value Change from Base | 4.2 | % | 2.1 | % | — | % | (2.1) | % | (4.1) | % | |||||||||||||||||||
Change in Unrealized Value | $ | 8.8 | $ | 4.4 | $ | — | $ | (4.3) | $ | (8.6) | |||||||||||||||||||
Credit Spread Shift in Basis Points | |||||||||||||||||||||||||||||
As at June 30, 2021 | -100 | -50 | — | +50 | +100 | ||||||||||||||||||||||||
(in millions of U.S. dollars) | |||||||||||||||||||||||||||||
Total Market Value | $ | 182 | $ | 189 | $ | 195 | $ | 202 | $ | 208 | |||||||||||||||||||
Market Value Change from Base | (6.7) | % | (3.3) | % | — | % | 3.4 | % | 6.8 | % | |||||||||||||||||||
Change in Unrealized Value | $ | (13.1) | $ | (6.5) | $ | — | $ | 6.6 | $ | 13.3 | |||||||||||||||||||
June 30, 2021 | ||||||||
AA | 2.2 | % | ||||||
A | 1.0 | % | ||||||
Non-Investment grade | 1.3 | % | ||||||
Not rated | 95.5 | % | ||||||
Total | 100.0 | % |
June 30, 2021 | ||||||||||||||
(in millions of U.S. dollars) | ||||||||||||||
Publicly traded equity investments in common and preferred stocks (1)
|
$ | 1,079.7 | ||||||||||||
Equities sold not purchased | (89.4) | |||||||||||||
Convertible bonds | 194.3 | |||||||||||||
Warrants/rights | 59.0 | |||||||||||||
Net derivative assets (2)
|
188.2 | |||||||||||||
Fair value of equities at risk | $ | 1,431.8 | ||||||||||||
Impact of 10% decline in fair value | $ | 153.0 |
AUD | CNH | EUR | HKD | Other | Total | |||||||||||||||||||||||||||||||||
As of June 30, 2021 | (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||||
Total net foreign currency exposure | $ | 47.7 | $ | 63.0 | $ | 50.6 | $ | 175.1 | $ | (10.4) | $ | 326.0 | ||||||||||||||||||||||||||
Pre-tax impact of a 10% movement in USD(1)
|
$ | (4.8) | $ | (6.3) | $ | (5.1) | $ | (17.5) | $ | 1.0 | $ | (32.6) | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
|
Maximum Number (or Dollar Value) of Shares that May Yet be Purchased Under the Program (1)
|
||||||||||||||||||||||
Beginning dollar amount available to be repurchased | $ | 119,769 | ||||||||||||||||||||||||
April 1, 2021 - April 30, 2021 | — | $ | — | $ | — | — | ||||||||||||||||||||
May 1, 2021 - May 31, 2021 | 100 | $ | 239.02 | $ | 100 | (24) | ||||||||||||||||||||
June 1, 2021 - June 30, 2021 | 30,264 | $ | 237.38 | $ | 30,264 | (7,184) | ||||||||||||||||||||
30,364 | 30,364 | $ | 112,561 |
Exhibit No. | Description | |||||||
Memorandum of Association of Enstar Group Limited (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-K/A filed on May 2, 2011). | ||||||||
Fifth Amended and Restated Bye-Laws of Enstar Group Limited (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on June 13, 2019). | ||||||||
Certificate of Designations of Series C Participating Non-Voting Perpetual Preferred Stock (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on June 17, 2016). | ||||||||
Certificate of Designations of 7.00% fixed-to-floating rate perpetual non-cumulative preference shares, Series D (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed on June 27, 2018). | ||||||||
Certificate of Designations of 7.00% perpetual non-cumulative preference shares, Series E (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed on November 21, 2018). | ||||||||
Subsidiary Guarantors and Issuers of Guaranteed Securities (incorporated by reference to Exhibit 22.1 of the Company’s Form 10-Q filed on November 6, 2020).
|
||||||||
31.1*
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted under Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
31.2*
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted under Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
32.1**
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
32.2**
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 | Cover page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) |
ENSTAR GROUP LIMITED | |||||
By: |
/S/ Zachary Wolf
|
||||
Zachary Wolf
Chief Financial Officer, Authorized Signatory, Principal Financial Officer |
|||||
By: | /s/ Michael Murphy | ||||
Michael Murphy
Chief Accounting Officer, Principal Accounting Officer |
/S/ DOMINIC F. SILVESTER | ||
Dominic F. Silvester | ||
Chief Executive Officer |
/S/ ZACHARY WOLF | ||
Zachary Wolf | ||
Chief Financial Officer |
/S/ DOMINIC F. SILVESTER | ||
Dominic F. Silvester | ||
Chief Executive Officer |
/S/ ZACHARY WOLF | ||
Zachary Wolf | ||
Chief Financial Officer |