Executive Summary

Q4 2024 earnings reflected investment-driven profitability and lower top-line versus prior year: diluted EPS was $9.76, ROE 2.7%, and total revenues were $0.285B; versus Q4 2023 EPS $39.71, ROE 13.7%, and revenues $0.487B .
Quarter-over-quarter, EPS was broadly stable (Q3 diluted EPS $9.84) but annualized total investment return slowed to 3.8% in Q4 from 11.5% in Q3, as fair value gains moderated; investment book yield remained resilient at 4.39% (Q3 4.41%) .
Segment mix remained consistent: Investments generated $0.218B of revenues and $218M segment income; Run-off produced $44M revenue and $18M segment income; Corporate & Other posted a $(53)M loss; total segment income was $183M .
Strategic catalysts in Q4: closed the QBE LPT (net reserves ~$376M; ~$175M cover), completed the James River ADC add-on ($75M limit), and paid preference-share dividends; these transactions and the shareholder approval of the Sixth Street acquisition underpin capital deployment and corporate trajectory into 2025 .

What Went Well and What Went Wrong

What Went Well

Investment franchise delivered: Q4 net investment income of $173M and fair value gains of $56M supported segment income of $218M in Investments; investment book yield improved vs Q4 2023 (4.39% vs 4.00%) and annualized adjusted TIR was solid at 7.1% vs 5.5% in Q4 2023 .
Run-off execution: Positive adjusted run-off liability earnings (Adjusted RLE 1.2% for FY 2024) and favorable prior period development on key casualty lines over the year; management highlighted continued momentum in expanding workers’ comp via LPTs (e.g., SiriusPoint in April, QBE in Oct.) .
Strategic optionality: Completed the James River ADC extension and progressed toward Sixth Street acquisition approval, with CEO noting “This transaction provides a full liquidity event for shareholders and is a testament to the strength of our team.” .

What Went Wrong

Year-over-year compression: Q4 ROE fell to 2.7% from 13.7%, and diluted EPS to $9.76 from $39.71, driven by lower fair value gains and revenue versus an unusually strong Q4 2023 investment backdrop (TIR 14.8% in Q4 2023 vs 3.8% in Q4 2024) .
Corporate & Other headwinds: Corporate & Other posted a $(53)M segment loss in Q4; YTD included a $63M goodwill impairment captured in Q3, reflecting non-operational adjustments affecting reported results .
Top-line softness: Total revenues declined to $0.285B in Q4 from $0.487B in Q4 2023, reflecting lower fair value changes versus prior-year tailwinds and negative Corporate & Other revenues in Q4 2023 .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Billions)	$0.487	$0.423	$0.285
Diluted EPS ($USD)	$39.71	$9.84	$9.76
ROE (%)	13.7%	2.8%	2.7%
Adjusted ROE (%)	9.0%	2.2%	4.5%
Annualized TIR (%)	14.8%	11.5%	3.8%
Investment Book Yield (%)	4.00%	4.41%	4.39%

Segment breakdown (Revenue and Segment Income, $USD):

Segment	Q4 2023 Revenue ($B)	Q4 2023 Segment Income ($M)	Q4 2024 Revenue ($B)	Q4 2024 Segment Income ($M)
Run-off	$0.016	$104	$0.044	$18
Investments	$0.472	$453	$0.218	$218
Corporate & Other	-$0.002	-$140	$0.023	-$53
Total	$0.487	$418	$0.285	$183

Key shareholder and balance sheet KPIs (As of period end):

Metric	Dec 31, 2023	Dec 31, 2024
Book Value per Ordinary Share ($)	$343.45	$380.29
Fully Diluted BVPS ($)	$336.72	$368.47
Total Assets ($USD Billions)	$20.913	$20.407
Total Liabilities ($USD Billions)	$15.265	$14.310
Debt Obligations ($USD Billions)	$1.831	$1.833

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	FY/Q4 2024	Not provided	Not provided	Maintained (no formal guidance issued)

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available; Enstar did not furnish a transcript in Q4 materials (no results found) [SearchDocuments].

Topic	Previous Mentions (Q2)	Previous Mentions (Q3)	Current Period (Q4)	Trend
M&A/Take-private	Announced definitive agreement to be acquired by Sixth Street; $338/share cash consideration	Shareholders approved the acquisition; closing expected mid-2025	Continued preparation/closing steps referenced in filings; no new steps announced in Q4 supplement	Advancing toward close
Legacy transactions (LPT/ADC)	Signed $400M SiriusPoint LPT; ADC with IAG; Accredited legacy reinsurance	Continued portfolio actions; investment returns supported by fair value	Closed QBE LPT ($376M net reserves; ~$175M cover); Completed James River ADC add-on ($75M limit)	Ongoing origination
Capital position/ratings	BBB+/BBB capital structure; S&P ‘A’ IFS rating for Cavello Bay	Capital ratios stable vs YE23; Cavello Bay noted	Debt/cap metrics improved YoY; BBB+/BBB maintained; debt-to-cap 23.1%	Stable/strong
Run-off performance (RLE)	RLE 0.8% (Q2), adjusted RLE 0.7% YTD	Adjusted RLE 0.3% (Q3 QTD); year-to-date 1.1%	Adjusted RLE 1.2% FY; quarterly mix supportive	Improving FY trend
Governance/leadership	President transition (Orla Gregory) announced	Transition progress noted	Preference dividends paid; no new leadership changes disclosed	Stable

Management Commentary

“Our momentum continues with a growth in book value of 1.7% in the first quarter, driven by solid performance in our investment portfolio and another quarter of positive Run-Off Liability Earnings… We were pleased to execute a $400 million Loss Portfolio Transfer with SiriusPoint…” — CEO Dominic Silvester, Q1 press release .
“This transaction provides a full liquidity event for shareholders and is a testament to the strength of our team. We believe this is the best next step for our shareholders and we look forward to this exciting new chapter.” — CEO on Sixth Street acquisition .

Q&A Highlights

No Q4 2024 earnings call transcript was furnished; therefore, no Q&A summary is available for this quarter [SearchDocuments].

Estimates Context

Wall Street consensus (S&P Global) estimates for Q4 2024 EPS and revenue were unavailable due to missing SPGI mapping for ESGR; as a result, we cannot assess beat/miss versus consensus for Q4 2024. Values retrieved from S&P Global (consensus) were unavailable for this ticker at the time of analysis.

Key Takeaways for Investors

Quarter profitability was investment-led; EPS remained stable QoQ despite lower fair value gains, with investment book yield holding above 4.3%—a favorable backdrop if rates remain elevated .
YoY optics are tough against an unusually strong Q4 2023 investment environment (TIR 14.8% vs 3.8%); investors should focus on normalized adjusted TIR (7.1% vs 5.5% YoY) and BVPS compounding (FDBVPS +9.4% YoY) .
Run-off engine continues to demonstrate value creation through transactions (QBE LPT, James River ADC), supporting favorable development and adjusted RLE; pipeline appears active into 2025 .
Balance sheet remains sound with debt-to-cap at 23.1% and ratings intact; Cavello Bay IFS ‘A’ supports capital release solutions execution .
Corporate actions are the primary stock catalyst near-term: expected mid-2025 closing of the Sixth Street acquisition (subject to approvals) and ongoing portfolio transactions .
With no formal guidance or consensus to anchor beats/misses, trading may be event-driven (deal progress, LPT/ADC flow, rate environment) rather than quarterly prints; focus on BVPS/FDBVPS growth and adjusted ROE trajectory .
Medium-term thesis: Enstar’s scale in legacy P&C, disciplined capital allocation, and stable funding profile under new ownership should support continued BVPS accretion and investment returns—monitor integration milestones and regulatory timelines post-close .

Supporting Press Releases (Q4 2024)

QBE LPT closing: net reserves ~$376M; ~$175M cover .
James River ADC completion: $75M limit on top of existing ADC; $12.5M equity investment .
Preference share dividends declaration (Series D/E): $0.43750 per depositary share .

Appendix: Additional Quarter References

Q3 2024 Investor Financial Supplement — quarterly metrics and segment results .
Q2 2024 press release — quarterly metrics and acquisition announcement .
Q4 2024 8-K & Investor Financial Supplement — comprehensive KPIs and segment performance .

Enstar Group LTD (ESGR)·Q4 2024 Earnings Summary