Name: Enstar Group LTD Q1 2025 Earnings Call
Start: 2025-05-01T00:00:00.000Z

Executive Summary

Q1 2025 total revenues were $0.204B, down sequentially from $0.285B in Q4 2024 and down year-over-year from $0.253B; diluted EPS was $3.32 vs $9.76 in Q4 2024 and $8.02 in Q1 2024, reflecting lower investment income and higher corporate amortization and FX headwinds .
ROE was 0.9% (annualized 3.6%); Adjusted ROE was 0.7% (annualized 2.9%), indicating a softer quarter versus Q4 2024 (ROE 2.7%, Adjusted ROE 4.5%) and Q1 2024 (ROE 2.4%, Adjusted ROE 2.6%) .
Investment performance improved: Annualized TIR rose to 5.4% (vs 3.8% in Q4 2024 and 4.9% in Q1 2024), driven by fair value changes and equity method gains; Adjusted TIR was 3.8% in Q1 2025 vs 7.1% in Q4 2024 and 5.5% in Q1 2024 .
Capital actions and ratings support: Enstar priced $350M of 7.500% junior subordinated notes due 2045 and executed a tender for $232.6M of 5.750% notes due 2040; AM Best assigned Cavello Bay an “A” FSR and “a+” ICR, reinforcing balance sheet strength and run-off franchise positioning .
Wall Street consensus estimates via S&P Global for Q1 2025 were unavailable for ESGR; no formal guidance was provided, making capital management and merger progress the key near-term catalysts .

What Went Well and What Went Wrong

Investment returns strengthened: Annualized TIR improved to 5.4% and Adjusted TIR delivered 3.8%, aided by fair value changes and equity method income momentum .
Ratings tailwinds: AM Best assigned Cavello Bay “A”/“a+” with stable outlook, citing Enstar’s long track record of managing complex claims; CFO Matt Kirk emphasized the rating “affirms our commitment to insurance ratings and will enhance our ability to structure insurance transactions” .
Liability management continued to contribute: Prior-period development was favorable in Q1 2025 and Adjusted RLE was 0.3%, consistent with disciplined claims management in run-off portfolios .

Earnings deceleration: Diluted EPS fell to $3.32 from $9.76 in Q4 2024 and $8.02 in Q1 2024, with ROE slipping to 0.9% and Adjusted ROE to 0.7% .
Corporate amortization and FX: Corporate and Other showed a segment loss of $(84)M, with amortization of fair value adjustments and net FX losses weighing on consolidated results .
Run-off income softness: Run-off segment posted a $(1)M loss in Q1 2025 (vs $18M income in Q4 2024), reflecting lower prior-period development vs prior quarter and higher G&A in run-off operations .

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenues ($USD Billions)	$0.253	$0.285	$0.204
Diluted EPS ($USD)	$8.02	$9.76	$3.32
ROE (%)	2.4%	2.7%	0.9%
Adjusted ROE (%)	2.6%	4.5%	0.7%
Net Investment Income ($USD Millions)	$160	$173	$148
Annualized TIR (%)	4.9%	3.8%	5.4%
Annualized Adjusted TIR (%)	5.5%	7.1%	3.8%

Segment breakdown

Segment	Q1 2024 Revenues ($MM)	Q4 2024 Revenues ($MM)	Q1 2025 Revenues ($MM)	Q1 2024 Segment Income ($MM)	Q4 2024 Segment Income ($MM)	Q1 2025 Segment Income ($MM)
Run-off	$13	$44	$14	$(11)	$18	$(1)
Investments	$239	$218	$189	$224	$218	$183
Corporate & Other	$1	$23	$1	$(67)	$(53)	$(84)
Total	$253	$285	$204	$146	$183	$98

KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
Average Aggregate Invested Assets ($USD Billions)	$18.021	$18.041	$18.053
RLE (%)	0.2%	1.3%	0.2%
Adjusted RLE (%)	0.2%	1.2%	0.3%

Metric	Period	Previous Guidance	Current Guidance	Change
Guidance	Q1 2025	None disclosed	None disclosed	Maintained

Note: No Q1 2025 earnings call transcript was available; themes reflect investor supplements and press releases.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Sixth Street merger	Merger agreement reiterated; shareholder approval noted	No incremental update in Q1 supplement; merger framework reiterated	Stable narrative
Capital management (debt/tender, buybacks)	YTD buybacks in 2024 and capital positioning	$350M 7.500% 2045 notes priced; $232.6M of 2040 notes tendered	Active refinancing
Credit ratings	S&P IFS ‘A’ for Cavello noted in 2024	AM Best assigns Cavello Bay “A”/“a+” with stable outlook	Strengthening ratings profile
Run-off performance (RLE)	QTD RLE 0.1% / Adjusted 0.3% in Q3; YTD 1.1% Adj	RLE 0.2%; Adjusted RLE 0.3%	Stable/consistent
Investment returns	Q3 2024 Annualized TIR 11.5%, Adj 6.0%	Annualized TIR 5.4%, Adj 3.8%	Moderation vs Q3

“The AM Best Financial Strength Rating reflects Enstar’s established standing in the global legacy market and is further confirmation of our strong capital position and the resilience of our business model. The ‘A’ rating for Cavello Bay, our primary Bermuda reinsurer, affirms our commitment to insurance ratings and will enhance our ability to structure insurance transactions that support the strategic objectives of our partners.” — Matt Kirk, CFO .
Non-GAAP approach: Management removes fair value changes on fixed maturities and the fair value option impacts to improve comparability across periods and focuses Adjusted ROE and Adjusted TIR on underlying performance in claims management and investments .

No Q1 2025 earnings call transcript available; no Q&A content to report [ListDocuments earnings-call-transcript returned none].

Wall Street consensus EPS and revenue for Q1 2025 via S&P Global were unavailable for ESGR at this time; as a result, estimate beats/misses cannot be assessed [GetEstimates error; note unavailability].

Earnings softened: EPS and ROE declined sequentially and YoY, driven by corporate amortization and FX impacts; monitor corporate & other drag and fair value adjustments going forward .
Investment returns normalized: TIR improved vs Q4 but moderated vs Q3; Adjusted TIR of 3.8% underscores stable core portfolio performance without fair value noise .
Liability management consistent: RLE and Adjusted RLE remain in the 0.2–0.3% range, with favorable prior-period development supporting run-off earnings quality .
Capital structure repositioning: New $350M 7.500% notes and tender of $232.6M of 5.750% notes indicate proactive liability management; track net interest expense trajectory and capitalization ratios (Debt-to-total cap 23.9% at March 31, 2025) .
Ratings momentum: AM Best “A”/“a+” for Cavello Bay and stable S&P/Fitch ratings support capacity to execute legacy transactions and enhance partner confidence .
No formal guidance and no Street estimates available: In absence of guidance and consensus, focus on trajectory of Adjusted ROE/TIR, segment earnings mix, and merger-related developments .
Trading setup: Near-term catalysts include additional capital actions, transaction flow in legacy acquisitions, and merger process updates; watch press releases and 8-Ks for developments .