Bermuda's International and Local Companies and Limited Partnerships, with names beginning with E

2017. December 29. Telecommunications firm TeleBermuda International Ltd has been bought out by the East End Group in partnership with Celeritas Ltd. EEG owns the wireless internet service provider Bluewave and is a public safety and wireless communications provider. Celeritas is a Bermuda-based telecommunication investment firm and a subsidiary of the Mayfair Group. TBi provides voice and internet services, as well as managed information technology services. In a press release today, the EEG stated: “This acquisition ensures that TBi will continue to provide the highest level of service to their clients, and more importantly, remain a Bermudian-owned company. The purchase also offers the opportunity to leverage synergies between EET, TBi and Bluewave, Bermuda’s newest high-speed wireless internet service provider. The aim is to build on each company’s core competencies to solidify their positions as consistent providers of innovative products and services. To ensure a seamless transition for TBi clients, its current president Greg Swan will be retained during the transition period. TBi clients will be directly contacted regarding this acquisition. It is anticipated that the immediate impact on their accounts will be insignificant.”

2017. December 22.  The East End Group Ltd and Omnuim Bermuda Limited are looking at buying internet service provider TeleBermuda International Ltd. The Regulatory Authority of Bermuda has conducted an assessment of the proposed transaction and has said it is satisfied that subject to compliance with a set of conditions, the transaction would “not create an entity with a dominant position, nor substantially lessen competition in any relevant market, nor harm the public interest”. According to a notice on the RAB website, East End Group and Omnuim Bermuda have said they do not intend to make any of TBI’s staff redundant. TBI has offices on Victoria Street. It provides voice, internet and managed IT services. It is a wholly owned subsidiary of Javelin Connections group of companies. Javelin is an end-to-end solutions provider of managed IT and data services for establishing and managing offshore jurisdictions. The proposed change of control would see all shares of TBI being purchased by East End Group and Omnium, from Javelin. The East End Group provides consolidated group functions in the areas of accounting, finance, human resources and information technology services. Walter Roban, Minister of Transport and Regulator Affairs, has given his consent to the proposed change of control of TBI.

Since 2012. A new Bermuda ILS (Insurance Linked Securities) fund manager, It launched a new $40 million ILS fund aimed at Asian investors. The Asuka ILS Opportunities Fund is to be administered by ILS Fund Services, the joint venture between Bermuda’s Horseshoe and ISIS fund services. Eastpoint Asset Management is backed by Asuka Asset Management. This is the first ILS fund offered by Asuka Asset which began managing assets in 2002 and now oversees approximately $700 million in assets for institutional investors in Japan and Asia.

2018. December 12. Ed, the London-based reinsurance, wholesale and specialty broker, plans to open an office in Bermuda. The operation, which is pending approval from the Bermuda Monetary Authority, will be built and led by Chris Bonard, chief executive officer of group production at Ed Broking. Mr Bonard was part of the executive team that launched Ed into the market in September 2016. “Bermuda represents an obvious opportunity for us to better serve our customers for whom the island is an important market,” Steve Hearn, group CEO of Ed Broking Group, said in a statement. In October Ed Broking announced that it is to be acquired by BGC Partners, a global brokerage and financial technology company, subject to regulatory approval. Mr Bonard will report to Mr Hearn, who will become head of the new BGC insurance division on completion of Ed’s acquisition by BGC. “With a business that already spans key markets in Asia-Pacific, the Middle East and Europe, we’ve been keen to further enhance our commitment to the North American market,” Mr Bonard said. “I look forward to the opportunity to shape our strategy in Bermuda, deepen my existing relationships with clients in the US, Canada and the Caribbean — and to seek out fresh ones.”

In December 2014 added another Bermuda sidecar to its roster after $75 million of participating notes from this special purpose insurer was listed. The move follows a similar $290 million Eden Re II Ltd vehicle listing on the Island just before Christmas. Industry experts said the listings confirmed Munich Re's intention to make more use of alternative capital and maximize relations with capital market investors. Munich Re launched its Eden Re Ltd sidecar, a $63 million collateralised vehicle that provided it with capacity to support its property catastrophe business, a year ago. The latest sidecar was listed on the Bermuda Stock Exchange late last month. Registered as a segregated accounts company, as well as a special purpose insurer, leading to the issuance of segregated account participating notes. This likely makes it more suitable for deals involving single large investors, where the Eden Re II vehicle looks more like a multi-investor vehicle as the notes it issued were not for a segregated account. According to financial website Artemis, the participating notes issued by Eden Re I are "exposed to a wide range of perils including earthquake, seismic and/or volcanic disturbance or eruption, hurricane, rainstorm, storm, tempest, tornado, tidal waves and tsunamis." Artemis said the type of deals set up by Munich allowed the firm to access third-party capital to support its underwriting and retrocede a share of business to the investors. They are similar to a catastrophe bond or private insurance linked security (ILS) deal, but allow for a full quota share of the reinsurers' portfolio to be offered to ILS insurers if it chooses.

2017. January 9. Munich Re, through its Eden Re II Ltd collaterized sidecar, has had about $258 million of insurance-linked securities admitted for listing on the Bermuda Stock Exchange. The Series 2017-1 Class B participating notes, totaling $258,653,050, are due in March 2021.

2017. February 28. Losses from Hurricane Matthew and the Kaikoura earthquake in New Zealand were mostly responsible for a $71 million dip in fourth-quarter profits for Endurance Specialty Holdings. The company reported net income of $20.1 million, or 30 cents per diluted common share, for the quarter, which compared to $91.4 million, and $1.36 per share, during the same period in 2015. However, for the full year, Endurance reported net income of $333.2 million, or $4.93 per share, compared to $311.3 million, or $5.73 per share in 2015. Catastrophe losses for the quarter were $59.6 million, while the combined ratio jumped to 93.7 per cent from 76.2 per cent during the same period in 2015. For the full year, the Bermudian-based insurer and reinsurer saw gross premiums increase 26.5 per cent to $4.2 billion. Its net investment income was $176.6 million, a rise of $62.8 million. The combined ratio for 2016 was 88.1 per cent, up from 82.9 per cent the previous year. Endurance’s book value per diluted share at the end of 2016 was $68.66, up 4.9 per cent for the year.

2017. January 27. Shareholders of Endurance Specialty Holdings Ltd today backed the company’s $6.3 billion takeover by Japanese insurance giant Sompo Holdings. In a short statement, the Bermuda-based insurer and reinsurer said common and preferred shareholders had voted to accept Sompo’s offer of $93 per share. The merger is subject to regulatory approvals, but the companies expect the deal to close before the end of March. The special meeting took place in Hamilton this morning, when a majority in favour was required from holders of ordinary shares and preferred shares, voting as one class. John Charman, one of the best known leaders in the Bermuda insurance industry, has agreed to stay on as chief executive officer of the Endurance team for the next five years, along with other members of the senior management team. Mr Charman will also become chairman of the board of Sompo’s international business. When the deal was announced last October, Mr Charman confirmed to this newspaper that Endurance’s head office would remain in Bermuda. The firm is based in Waterloo House on Pitts Bay Road.

2016. October 5. Bermudian insurer and reinsurer Endurance Specialty Holdings Ltd is to be taken over by a Japanese company. Tokyo-based insurance giant Sompo has agreed to pay $6.34 billion for Endurance and the deal is expected to close by the end of March next year. John Charman, one of the best known leaders in the Bermuda insurance industry, has agreed to stay on as chief executive officer of the Endurance team for the next five years, along with other members of the senior management team. Mr Charman will also become chairman of the board of Sompo’s international business. The all-cash deal represents a purchase price of $93 a share, a more than 40 per cent premium over Endurance’s closing share price on Monday. Endurance shareholders will be asked for their approval before the deal can go ahead. The announcement marks the latest chapter in the wave of consolidation that has transformed the Bermuda insurance market in recent years. Endurance itself acquired fellow Bermudian reinsurer Montpelier Re last year, when around 40 Montpelier staff were let go, according to a source at the time. There was no mention in the companies’ joint statement of any impact on jobs at Endurance, whose Bermuda headquarters are in Waterloo House on Pitts Bay Road. But the statement does express admiration for the work of the Endurance management and underwriting teams. Mr Charman, who was in Tokyo for the announcement, was able to confirm by e-mail that Endurance’s head office would remain in Bermuda. Sompo said its special purpose company in Bermuda, Volcano International Ltd, would merge into Endurance, with Endurance as the surviving company. Through this process, Sompo Japan NI, a wholly owned subsidiary of Sompo Holdings, will purchase all of Endurance’s outstanding ordinary shares. Sompo already has a presence in Bermuda in the form of Sompo Canopius, which has an office on Par-la-Ville Road. Sompo bought Canopius in 2013 for around $600 million. Kengo Sakurada, CEO of Sompo Holdings, said: “Today’s agreement marks the beginning of Sompo’s overseas transformation which undoubtedly enhances the quality and reach of our insurance services. Endurance brings strength in the primary insurance business in developed markets. Endurance also brings a highly experienced executive team led by one of the world’s leading property and casualty CEOs in John Charman. Mr Charman, and certain shareholders associated with Mr Charman, representing in the aggregate approximately 4.9 per cent of Endurance ordinary shares, have agreed to vote in favour of the proposed transaction. This acquisition will be integral in helping Sompo realize its goal of providing insurance and related services of the highest quality which contribute to the security, health and well-being of its customers.” Sompo says it wants to diversify its business and gain more exposure to market’s outside Japan. Now, its overseas business provides 12 per cent of income — after the Endurance takeover this would rise to 27 per cent. The Japanese company is also aiming to improve profits and it says return on equity would improve from 6.9 per cent to 8.2 per cent after the merger with Endurance, based on the two companies’ 2015 results. Mr Charman said: “Today, we have strategically aligned ourselves with Sompo, a large, well-capitalized and highly respected global insurance and reinsurance company, headquartered in Japan. This signals the beginning of an exciting new chapter for Endurance, our wonderful and incredibly talented people and our much valued clients. When I joined Endurance just over three years ago. I stated quite publicly that cost efficient scale, globally diversified insurance and reinsurance products as well as market relevance were absolutely essential to our future success. I also signaled that I would seek out a high-quality, strong Asian partner to further complement our global business capabilities for the future. Our alignment today with Sompo achieves all those goals and promises so much more. Critically, both our companies share and practice important values daily — a commitment to the highest levels of loyalty, integrity and client service. These stated values are clearly reflected in our disciplined, focused underwriting approach which has deeply embedded, strong risk management practices. It is with great honour and with much joy that we all look forward to being welcomed as important family members of Sompo. Finally, to our Endurance shareholders, we thank you for your loyalty and trust over the years and are happy that you have been rewarded with an attractive premium for your investment.” Other major deals impacting the Bermuda insurance market over the past two years have involved Ace buying Chubb, XL Group buying Catlin, Chinese investment firm Fosun Group buying Ironshore, and RenRe acquiring Platinum.

2015. November 3. Bermuda-based Endurance Specialty Holdings yesterday posted third-quarter profits of $43.6 million, as acquisition expenses hit earnings. The company said last night it recorded $64 million in one-time transaction and integration expenses associated with the buyout of Montpelier in the third quarter. Net income — equivalent to 73 cents per share — was down $24.4 million on the $698 million reported for the same quarter of 2014. John Charman, chairman and chief executive officer of the insurance and reinsurance firm, said: “Against a backdrop of relentless global competition coupled with extremely challenging investment market conditions, I am very pleased with our ability to generate an attractive third quarter annualizes operation return on equity, excluding one time acquisition costs of 12.3 per cent. “Our strong results ably reflect the high quality of our underwriting and risk management, our ongoing expense discipline, as well as the benefits arising from a globally-diversified specialty insurance and reinsurance platform.” Endurance completed its acquisition of Montpelier at the end of the second quarter. Mr Charman said: “In the third quarter, we also completely integrated Montpelier’s global staff and operations into our Endurance and we are highly confident in our ability to materially exceed our originally planned expense savings. With the powerful combination of our two companies, we are very well positioned within the global marketplace to better serve our valued clients and distribution partners with both increased capacity and a larger, more diversified product offering across our wide distribution network. The absolute transformation of Endurance over the last three years uniquely positions us to generate continuous superior value for our shareholders despite the challenging market conditions.” Endurance reported gross premiums written of $642.6 million for the quarter, up 2.6 per cent on the same period last year. Net investment income totaled $16.5 million, a decrease of $8.8 million on the corresponding quarter of 2014.

2015. August 4. Endurance will keep on nearly half of the worldwide staff of its new acquisition Montpelier Reinsurance. The deal closed on Endurance’s takeover of its fellow Bermuda-based insurer and reinsurer last Friday. Montpelier had 185 full-time employees as of the end of last year, according to a regulatory filing. About a third of those are based in Bermuda. Talks are going on this week between Endurance bosses and their newly acquired workforce at Montpelier. Endurance chairman and chief executive officer John Charman sent out a letter to employees last Friday, the day the acquisition deal closed. “While it has taken a lot of effort to get to this point, there is still much to be done,” Mr Charman wrote. “As you are aware, we have been working diligently to plan the integration of our two organisations for several months, and we will now begin the immediate process of integrating staff, underwriting operations, infrastructure and processes so that we can execute the transition as quickly and seamlessly as possible for all parties. Over the next few days, we will be meeting with each Montpelier employee to discuss their employment status. While we have identified a number of areas of overlap and opportunities to streamline the organization, we have identified areas in both our underwriting segments and corporate functions where the skills and capabilities of Montpelier staff will be of great value to our company.” While sources have revealed Endurance will retain nearly half the Montpelier staff overall, this newspaper was unable to obtain more specific information on the Bermuda-based employees. Montpelier had three underwriting segments — Montpelier Bermuda, Montpelier at Lloyd’s and Collateralised Reinsurance — and it would seem that most of the overlap with existing Endurance operations will be in Bermuda, where the company focuses on writing on writing short-tail US and international catastrophe treaty reinsurance under the Montpelier Re name. Having a presence in the Lloyd’s of London market is something new for Endurance. Syndicate 5151 will do business as Endurance at Lloyd’s. The collateralised reinsurance segment is marketed under the name of Blue Capital, which manages third-party capital and which has its own listing on the Nasdaq Stock Exchange as Blue Capital Reinsurance Holdings Ltd. Montpelier also had some subsidiaries in the US, including MTR, which provides a range of back-office operations to much of the rest of the group from its New Hampshire offices, and Cladium, a managing general agency based in Florida.

2018. December 28. Enstar Group Ltd has completed its acquisition of a US subsidiary of fellow Bermuda-based company Maiden Holdings Ltd. Enstar, a company that specializes in acquiring and managing companies and portfolios in run-off, said last night it paid out $272.4 million to buy Maiden Reinsurance North America, Inc. Maiden Re North America is a diversified insurance company, domiciled in Missouri, that provides property and casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance. As previously disclosed, the transaction included novation and retrocession agreements pursuant to which the company’s subsidiary, Cavello Bay Reinsurance Ltd, assumed certain Maiden Re business in exchange for a ceding commission. The $272.4 million represents the adjusted purchase price less the ceding commission. At closing, Enstar assumed approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves. Enstar is a market leader in completing legacy acquisitions, having acquired over 80 companies and portfolios since its formation in 2001. Enstar’s active underwriting businesses include the StarStone group of companies, an A- rated global specialty insurance group with multiple global underwriting platforms, and the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609. Enstar Group shares gained $2.34, or 1.46 per cent on the Nasdaq Stock Exchange yesterday, while Maiden Holdings rose four cents, or 2.7 per cent, to close on $1.52.

2018. December 13. Enstar Group Ltd is partnering with German insurance giant Allianz and investment manager Hillhouse to launch a new Bermuda re/insurer. Enstar, a Bermuda-based company which specializes in acquiring and managing companies and portfolios in run-off, will own nearly half of the new company, called Enhanzed Reinsurance Ltd. The new Class 4 and Class E company will reinsure life, non-life run-off, and property and casualty insurance business, initially sourced from Allianz SE and Enstar. Enstar, Allianz and Hillhouse affiliates have committed a combined total of $470 million to Enhanzed Re. Enstar will own 47.4 per cent of the entity, with Allianz owning 24.9 per cent, and an affiliate of Hillhouse Capital Management Ltd owning 27.7 per cent. Enstar will act as the re/insurance manager for Enhanzed Re. Hillhouse will act as primary investment manager and an affiliate of Allianz will also provide investment management services. Enhanzed Re intends to write business from affiliates of its operating sponsors, Allianz and Enstar. It will seek to underwrite business to maximize diversification by risk and geography. Dominic Silvester, Enstar’s chief executive officer, said: “Enhanzed Re brings Enstar together with our established partners Allianz and Hillhouse to provide a vehicle that will reinsure a diversified book of life and P&C reserves sourced through a strong pipeline of opportunities provided by Enhanzed Re’s operating sponsors. Enhanzed Re will benefit from world-class investment managers prudently managing capital while pursuing risk-adjusted returns. Through Enhanzed Re, Enstar gains exposure to attractive life and P&C business and in return can offer opportunities for Enhanzed Re to participate in our future significant legacy transactions.”

2018. November 13. Shares of Bermuda-based reinsurer Maiden Holdings plummeted 31.8 per cent yesterday, after the company announced a hefty third-quarter loss when analysts had forecast a profit. The company also continued its ongoing restructuring by striking a loss portfolio transfer deal with fellow Bermuda-based company Enstar Group. Maiden’s shares fell $1.12 to $2.41 on New York’s Nasdaq Stock Exchange after it announced a net loss of $308.8 million. The operating loss was $235.1 million, or $2.83 per share, compared to analysts’ consensus expectation of an 18 cents per share operating profit. Maiden’s combined ratio was 150.7 per cent, meaning that it paid out about $1.50 in claims and expenses for every $1 of premium it took in. Under the deal with Enstar, which specializes in acquiring and managing businesses and portfolios in run-off, Enstar will assume loss reserves of approximately $2.675 billion associated with Maiden Re’s quota share reinsurance contracts with AmTrust Financial Services. The retrocession will apply to losses arising and claims made on or prior to June 30, 2018; loss reserves assumed will be subject to adjustment for paid losses since such date. The transaction is subject to regulatory approvals and other closing conditions. In August, Maiden agreed to sell subsidiary Maiden Reinsurance North America to Enstar for $307.5 million. This year, Maiden has also sold its US casualty facultative reinsurance team to Sompo International and struck a renewal rights agreement with Transatlantic Re for net proceeds of $7.5 million. Lawrence Metz, Maiden’s chief executive officer, said: “While there is still work to do, we believe that much has been accomplished, and we remain committed to completing our strategic review process and to taking the actions necessary to further enhance value to all our shareholders.” Patrick Haveron, Maiden’s chief financial officer, said: “During the third quarter, we also took the opportunity to materially strengthen our carried loss reserves and position Maiden for profitable future results. Our announcement today with Enstar brings additional certainty and finality to the steps we have taken. Upon completion of all of the strategic transactions announced since August, Maiden’s capital position will be dramatically stronger. He added: “We anticipate an improved outlook for Maiden as 2018 heads to its final quarter and into 2019.” 

2018. August 31. Maiden Holdings has sold its US reinsurance unit to a subsidiary of fellow Bermuda-based company Enstar Group. Maiden will receive net proceeds of $307.5 million for its Missouri-based subsidiary Maiden Reinsurance North America. Enstar will operate the business in run-off. On Wednesday, Maiden announced it had sold the business’s reinsurance renewal rights to Transatlantic Re, which was also taking on the unit’s underwriting team. “Today’s announcement of the sale of MRNA represents another step in our continuing strategic review. This transaction will broaden our ability to manage and allocate capital as we move forward, and will create value for our shareholders,” Lawrence Metz, Maiden’s chief executive officer designate, said. The transaction is expected to close in the fourth quarter of this year. Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves from Maiden’s US Diversified business upon closing. As part of the transaction, an Enstar subsidiary will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with MRNA. Patrick Haveron, Maiden’s chief financial officer and chief operating officer designate, said: “Today’s announcement along with our previously announced renewal rights transaction will further enhance our capital position. We are moving immediately to improve profitability by implementing additional operational efficiencies and expense reductions through the end of 2018, and we expect to provide further updates as we move forward.” Maiden’s shares were trading down 1.3 per cent at $3.90 at 2.51pm Bermuda time today, while Enstar’s shares were down 0.7 per cent at $212.25.

2018. April 4. Enstar Group is mulling a sale of its StarStone and Atrium businesses, according to a report in British trade press. The Bermuda-based run-off specialist and its private-equity investor Stone Point have called in Evercore for advice after receiving takeover offers for the businesses, The Insurance Insider reported. Both StarStone and Atrium are “live” underwriting operations — that is they seek out and write new business — as opposed to Enstar’s predominant legacy book, which does not. StarStone was acquired in 2014 for $646 million. Last year, the specialty insurer with a business in the Lloyd’s of London market, wrote $895 million of gross premium. Atrium is a Lloyd’s managing agency

2018. March 3. Enstar Group Limited has reported consolidated net earnings of $311.5 million, or $15.95 per share, for 2017. That is up from $264.8 million, or $13.62 per share, for 2016. The Bermuda-based insurance group said its shareholders’ equity at December 31, was $3,136.7 million, which was up from $2,802.3 million year-on-year.

2017. May 8. Island-based insurer Enstar Group Ltd’s first-quarter earnings rose by more than 20 per cent. The company posted net income of $54.7 million, or $2.80 per share, compared to $45.5 million, or $2.35 per share in the January-to-March period last year. The company, whose head office is on Queen Street, specializes in acquiring companies or books of business in run-off, and managing their assets and obligations. Enstar now has 1,300 employees in 26 offices around the world, after a history of making more than 75 acquisitions. Its total assets have more than doubled over the past five years and now total $14.9 billion Revenue for the quarter fell to $280.3 million from $290.3 million in the first quarter of 2016. But the company trimmed expenses by nearly $17 million to $211.5 million. Enstar’s shareholders’ equity at March 31, 2017 totaled $2.86 billion, or $146.62 per diluted share, compared to $2.8 billion, or $143.68 per fully diluted share, at the end of last year. After the company reported its results this morning, Enstar’s shares traded 45 cents, or 0.2 per cent, higher at $191 in New York trading.

2017. March 4. Five positions have been cut at Enstar Group. All those affected are either Bermudians or spouses of Bermudians. Globally, PartnerRe has announced 16 redundancies as it reorganizes its financial operations.  Enstar is restructuring and moving its investment unit to the US. In a statement, it said: “Enstar has experienced significant growth through acquisition activity. Following a strategic review of our operations and careful consideration, we made the decision to restructure our investment function. The revised function will be based in the US, to position ourselves closer to the US capital markets and optimize our relationships with our US-based investment managers and partners. The restructure is considered necessary to facilitate the continued growth of our company and its investment portfolio which will, in turn, result in greater opportunities for the company and its valued employees. Bermuda employees impacted by this decision were given an opportunity to apply for investment positions in the US.” The company has a core focus on acquiring and managing insurance and reinsurance companies in run-off. It employs more than 60 staff, said it continues to be committed to the island. In its statement, Enstar said: “Enstar’s focus on growing its business continues, as evident by the over 75 acquisitions and transactions it has completed since inception.”

2017. February 28. Enstar Group Ltd has reported consolidated net earnings of $264.8 million, or $13.62 per fully diluted share, for 2016. That was up on the $220.3 million, or $11.35 per fully diluted share, for 2015. Bermuda-based Enstar is a multifaceted insurance group with a core focus on acquiring and managing insurance and reinsurance companies in run-off. Enstar’s shareholders’ equity at the end of 2016 amounted to $2.8 billion, or $143.68 per fully diluted share, which was up from $2.5 billion, or $129.65 per share, the previous year. Its Atrium segment recorded net earnings of $6.4 million for the year, down from $16.5 million in 2015, while StarStone’s net earning rose from $13.6 million to $25.2 million. Enstar launched KaylaRe Ltd, a Bermuda-based Class 4 reinsurer, in December 2016.

2016. March 2. Enstar Group Ltd’s full-year earnings climbed to $220.3 million last year as it continued to acquire businesses in run-off. The company reported that revenue grew to $1.03 billion on a large increase in net premiums earned, which rose to $839 million from $646.4 million in 2014. Net income was up by $6.5 million from 2014, while net earnings per diluted share were $11.35. Enstar’s core business is acquiring insurance portfolios no longer writing new business from other insurance companies and managing the ongoing obligations and reserves that go with them. In recent years, Enstar has diversified its business with underwriting through its Atrium and StarStone segments. The company’s preferred metric to gauge its progress is fully diluted book value per share, which rose to $129.65 by the end of last year from $119.22 a year earlier — and from $31.85 in 2006. Enstar’s shareholders’ equity at December 31, 2015 totaled $2.52 billion, up from $2.3 billion a year earlier. The group has continued acquiring targets this year. Last month Enstar reached a deal to reinsure portfolios of Allianz’s run-off business, including 50 per cent of certain portfolios of workers’ compensation, construction defect, and asbestos, pollution, and toxic tort business that were originally held by Fireman’s Fund Insurance Company. In the process Enstar assumed net reinsurance reserves of around $1.1 billion. The financial results were announced on Monday night. Enstar shares rose by $3.16, or 2 per cent, in trading on the Nasdaq Stock Exchange to close at $161.21 yesterday.

2015. December 4. Enstar Group Ltd formed this new Bermuda-based reinsurance company to assume some of its risks. Aligned Re Ltd is expected to be funded by third-party capital along with investments from the Enstar, which recently contributed $100 million, according to a regulatory filing yesterday from the insurer. Enstar itself is also based on the Island, with offices on Queen Street. It specializes in acquiring and managing businesses in run-off — that is, they have stopped writing new business, but continue to have assets and obligations. Nicholas Packer, who is an executive vice president at Enstar, will be chief executive officer of Aligned Re. “As a start-up company, Aligned Re will consider hiring additional executives during the ramp-up period of its operations,” Enstar said in the filing. UBS O’Connor LLC, a $6 billion hedge-fund unit within Switzerland’s biggest bank, will manage money for the new reinsurer. Goldman Sachs Group and BlackRock have also agreed to oversee portfolios for reinsurance ventures that raised funds this year. U.S. hedge-fund firms including David Einhorn’s Greenlight Capital entered the offshore industry years ago, giving the money managers a tax advantage for their investments and a source of permanent capital. Enstar traces its roots to the early 1990s when executives including Mr Packer pushed into the run-off industry. The Canada Pension Plan Investment Board agreed this year to take a 9.9 percent stake in Bermuda-based Enstar.

2015. August 10.  Net income plunged by more than two thirds on investment losses. The Bermuda-based insurer, which specializes in buying companies or units that have stopped writing new business and managing their assets and ongoing obligations, made $14.5 million in net income for the April-through-July quarter. The earnings broke down to 75 cents per share and compared to $51.8 million, or $2.68 per share, in the corresponding quarter of last year. For the first six months of this year, Enstar made net earnings of $59.4 million, compared to $81.4 million in 2014. Net premiums earned were flat during the second quarter at $212 million, compared to $217 million in 2014. The net realized and unrealized investment loss of $11.25 million, compared to a gain of $38.4 million in the prior-year period was the principal reason Enstar’s earnings fell. Many Bermuda insurers have suffered mark-to-market losses on fixed-income investment holdings as interest rates rose in the second quarter. Enstar’s shareholders’ equity has climbed by nearly $100 million this year, from $2.305 billion at the end of 2014 to $2.399 billion at June 30. During the second quarter, Enstar completed the acquisition of two Delaware-based subsidiaries of Bermuda-based life reinsurer Wilton Re for $173.1 million. Enstar said the first instalment of $89.1 million was paid on closing and was financed in part by borrowings. The second instalment of $83.9 million, due on the first anniversary of closing — May 5 next year — is expected to be funded from cash on hand.

2015. January 2015. Completed the acquisition of Companion Property and Casualty Insurance Company from Blue Cross and Blue Shield of South Carolina. Enstar said the deal was worth $218 million. The deal was financed 50 per cent through borrowings under a bank loan facility provided by National Australia Bank Ltd and Barclays Bank plc and 50 per cent from cash on hand. The company stated: “Enstar will operate the business largely as part of its property and casualty legacy business, while working to ensure that Companion’s policyholders continue to receive excellent service. Certain business of Companion will be renewed into Enstar’s subsidiary, Torus National Insurance Company.” Companion’s statutory financial statements as of September 30, 2014 reported its total assets as $1.12 billion and total liabilities of $877.2 million. Companion is a South Carolina-based insurance group writing property, casualty, specialty and workers’ compensation business, and has also provided fronting and third party administrative services.

7/7/2010. A Bermuda-based investment and asset-management company, recently awarded two prestigious awards at the Investor’s Choice Global Hedge Fund Awards gala. Its Flagship fund won both the Emerging Discretionary Global Macro Fund of 2012 award in addition to the overall Emerging Fund of the Year 2012 Award. Equilibria was founded by Daniel Tafur and Fabio Lopez Ceron, two veterans of Morgan Stanley’s London Investment Banking Division. Equilibria Capital is the largest shareholder of Sellas Life Sciences, now Bermuda-based.

2020. February 3. Bermuda-based mortgage insurer Essent Group has acquired $495.9 million of reinsurance coverage from the capital markets for mortgage insurance policies it has written. The insurance-linked securities transaction was done through Radnor Re 2020-1 Ltd, a newly formed Bermudian special purpose insurer. This was the fourth time fast-growing Bermudian-based Essent has tapped the capital markets and the largest deal so far. The fully collateralised excess of loss reinsurance coverage boosts Essent’s capacity for writing mortgage insurance, while protecting its own balance sheet. Radnor Re 2020-1 Ltd has funded its reinsurance obligations through the issuance of six classes of mortgage insurance-linked notes, with ten-year legal maturities, to eligible third-party capital markets investors in an unregistered private offering.

2019. May 6. Bermuda-based mortgage re/insurer Essent Group Ltd reported net income of $127.7 million for the first quarter, up from $111.1 million a year earlier. Earnings broke down to $1.30 per share, topping the $1.25 consensus estimate of analysts tracked by Yahoo Finance. As of March 31, Essent had insurance in force of $143.2 billion and consolidated stockholders’ equity of $2.5 billion, the company stated. “We were pleased with our strong financial results for the first quarter as our operating environment remains favourable and credit continues to perform well,” said Mark Casale, Essent’s chairman and chief executive officer. “Also, we continue to make solid progress in strengthening our franchise as we successfully rolled out our risk-based pricing engine EssentEdge. Our outlook on our business and housing remains positive and we continue to believe that we are well positioned to continue growing our company.” New insurance written for the first quarter was $11 billion, compared to $11.4 billion in the fourth quarter of 2018 and $9.3 billion in the first quarter of 2018. Net premiums earned for the first quarter were $177.8 million, compared to $152.6 million in the first quarter of 2018. The expense ratio for the first quarter was 23.1 per cent, compared to 22.8 per cent in the fourth quarter of 2018 and 25 per cent in the first quarter of 2018. The provision for losses and loss-adjusted expenses for the first quarter was $7.1 million, compared to a provision of $5.3 million in the first quarter of 2018. The provision in the fourth quarter of 2018 included a $9.9 million release of the $11.1 million reserve associated with loans identified as related to hurricanes Harvey and Irma that was established in the fourth quarter of 2017. The percentage of loans in default as of March 31, 2019 was 0.65 per cent, compared to 0.86 per cent as of March 31, 2018. The combined ratio for the first quarter was 27.1 per cent, compared to 28.5 per cent in the first quarter of 2018. The consolidated balance of cash and investments at March 31, 2019 was $3.0 billion, including cash and investment balances at Essent Group Ltd. of $73.8 million. In February, Essent said it obtained $473.2 million of excess of loss reinsurance coverage on mortgage insurance policies written by Essent in 2018. The reinsurance is fully collateralised by ten-year mortgage insurance-linked notes issued by Radnor Re 2019-1 Ltd, an unaffiliated special purpose insurer.

2019. February 16. Mortgage reinsurer Essent Group Ltd posted a $128.5 million profit in the fourth quarter of last year. The Bermudian-based company’s results were boosted by the release of most of the reserves it had set aside to cover potential loan defaults in connection with hurricanes Harvey and Irma in 2017. Net income for the quarter broke down $1.31 per share. For the full year, Essent reported net income of $467.4 million or $4.77 per share. The provision for losses and loss adjustment expenses for the fourth quarter was a benefit of $1 million, compared to a provision of $5.5 million in the third quarter of 2018 and a provision of $17.5 million in the fourth quarter of 2017. “The provision in the fourth quarter of 2018 included a $9.9 million release of the $11.1 million reserve associated with loans identified as related to Hurricanes Harvey and Irma that was established in the fourth quarter of 2017,” Essent said in a statement on Friday. Mark Casale, Essent’s chairman and chief executive officer, said: “We are pleased with our strong fourth-quarter and full-year 2018 results as we continued growing our high credit quality and profitable mortgage insurance portfolio. Also during 2018, we successfully piloted our risk-based pricing engine, EssentEDGETM, and executed in the reinsurance markets. We believe that increased sophistication in the front end and back end of our business positions us well to shape our insured portfolio and profitably manage the long-tail mortgage credit risk.” The percentage of loans in default as of December 31, 2018 was 0.66 per cent, compared to 0.61 per cent three months earlier and 0.96 per cent at the end of 2017. Essent said its combined ratio — the proportion of premium dollars spent on claims and expenses — for the fourth quarter was 22.2 per cent, compared to 25.4 per cent in the third quarter of 2018 and 36.4 per cent in the fourth quarter of 2017. The consolidated balance of cash and investments at the end of 2018 was $2.9 billion.

2018. May 7. Executives of mortgage insurer and reinsurer Essent Group Ltd said that the company’s Bermuda structure still gives it a tax advantage — even after US tax reform reduced the benefit. Essent reported first-quarter profits of $111.1 million last Friday, or $1.13 per share, up from 72 cents per share a year earlier and beating the $1.10 consensus forecast of analysts tracked by Zacks. The company is based in Bermuda and has a Bermudian-based reinsurer, Essent Re. The US tax reform, passed late last year, had a punitive impact on reinsurance transactions between US-based insurers and affiliated reinsurers based outside the US through its base erosion abuse tax. In a conference call given by Essent executives after the results were released, Sean Dargan, an analyst with Wells Fargo Securities, asked: “Would it be fair to say that pre-tax reform, that your targeted returns were a point or two higher than your onshore competitors because of the tax advantage?” Mark Casale, Essent’s chief executive officer, replied: “I wouldn’t say targeted returns. I would say, we generated stronger returns because of the tax advantage, yes. But I think we still target mid-teen returns. We never used our lower tax rate as a tool from a pricing perspective. We price competitively, and we always will continue to price competitively. The lower tax rate allowed us to achieve higher returns.” Lawrence McAlee, Essent’s chief financial officer, added some detail. “The corporate statutory rate [in the US] is 21 per cent, and you still see that we do receive a benefit from our Bermuda structure,” Mr McAlee said. "Our estimated rate for this year is about 16.5 per cent. So there still is an incremental benefit that we generate from the Bermuda structure and having Essent Re in place.” Essent posted revenue of $167.5 million during the first three months of the year, up from $127.6 million in the same period a year earlier. Essent said it generated a 23 per cent annualized return on equity. On Friday, the company released its results before US markets opened, after which its shares rose $1.22, or 3.6 per cent. Essent’s shares have fallen about 18.7 per cent on the New York Stock Exchange in the year to date.

2018. February 9. Bermuda-domiciled mortgage insurer Essent Group Ltd’s profits for the fourth quarter of last year received an $85.1 million boost from US tax reform. Essent said today it made net income of $162.6 million, or $1.65 per share, during the last three months of last year. The one-time impact of the reduced US corporate income tax rate on the company’s net deferred tax liability position contributed 86 cents per share to the results. Essent said net income for the full year 2017 was $379.7 million, or $3.99 per share. The company reported that two of last year’s hurricanes had contributed to an increase in defaults among the mortgages it insures. Mark Casale, chairman and chief executive officer, said Essent had continued to a high credit quality and profitable mortgage insurance portfolio during 2017. “During the year, we continued growing our earnings and generating strong returns,” Mr Casale said. “As we head into our ninth year of writing mortgage insurance, our outlook for 2018 on our business and housing remains positive.” Loans in default at December 31, 2017 were 4,783 compared to 2,153 as of September 30, 2017 and 1,757 as of December 31, 2016. Total loans in default increased by 2,630 in the quarter, including 2,288 defaults that we have identified as related to hurricanes Harvey and Irma. The percentage of loans in default as of December 31, 2017 was 0.96 per cent, compared to 0.46 per cent as of September 30, 2017 and 0.47 per cent as of December 31, 2016. Essent said its insurance in force as of December 31, 2017 was $110.5 billion, up from $103.9 billion three months earlier and $83.3 billion from a year earlier. New insurance written for the fourth quarter was $11.2 billion and $43.9 billion for the full year. Net premiums earned for the fourth quarter were $148 million, compared to $116.8 million in 2016. For the full year 2017, net premiums earned were $530.1 million, compared to $422.7 million for 2016. The expense ratio for the fourth quarter was 24.7 per cent, compared to 29.8 per cent a year earlier. For the full year 2017, the expense ratio was 27.5 per cent, down from 30.9 per cent in 2016. Essent’s combined ratio for the fourth quarter, reflecting the proportion of premium dollars paid out on claims and expenses, was 36.4 per cent, compared to 33.1 per cent in the fourth quarter of 2016.

2020. February 25. Bermuda is set to reap benefits from the merger of Estera Services (Bermuda) Ltd and Ocorian, which happened this month. That’s the view of Alison Dyer, managing director of Ocorian’s Bermuda office. There will be no impact on jobs at its office in Bermuda, which has a 74-strong team, and its operations are likely to strengthen and grow as a result of the merger. “At Estera and Ocorian people are our biggest asset. It’s really about maintaining a combined merged brand rather than try to amend it in any way,” Ms Dyer said. “Of course, in other jurisdictions there may be some rationalization if there are duplications, but not in Bermuda.” Estera was spun off from law firm Appleby in 2015, and from its office in Victoria Street is a corporate, funds and trust services provider across the region. It is now under the brand name of Ocorian. The merger of the two businesses created a corporate and fiduciary service and fund administration business with $260 billion of assets under administration. According to Ocorian, which has its roots in Jersey and strong links to the Middle East, Africa and beyond, the combined entity is the seventh-largest corporate, funds and trust player in the offshore world by revenue. Speaking about the significance of the larger global presence and scale, Ms Dyer said: “It gives us flexibility to use more jurisdictions. They [Ocorian] are in further jurisdictions than we are, so we grow from about 12 jurisdictions to 18. I’m particularly excited about Asia. Bringing private wealth money and services to Bermuda, through Bermuda, and the region.” She added: “The level of expansion is quite significant and also potentially doubles us in size. It gives us the opportunity to access people in other jurisdictions where Ocorian is, where we weren’t, and the other way round. It makes us one of the leaders in the CSP and Trust space in the offshore world.” Because there is no overlap with the Ocorian brand in Bermuda, there are no expected changes “on the ground”. The merger gives the Bermuda office access to services and other clients in strategically important locations, Ms Dyer said. When asked if the Bermuda operation could grow as a consequence, she said: “I do think so. Bermuda as a jurisdiction is very interesting. It’s a very mature jurisdiction, it is not growing like it was in the 2000s, and in the 1980s and prior to that. It’s growing in different ways. It’s not really growing from a structured account perspective. It is growing from an AUA perspective, so it is a very interesting jurisdiction to work with.” She added: “As far as growth here, yes, but I’m not sure it would necessarily generate structures, but it would definitely generate work services for us to be able to facilitate within the jurisdiction.” Estera has a track record for involvement in and support for community events, and that is set to continue as Ocorian. “Absolutely, we are fully committed to the jurisdiction,” Ms Dyer said. “One of the things that I am extremely passionate about is ensuring that we stay committed to Bermuda, and that we understand the jurisdiction — I am Bermudian. I feel that’s very important for us as a service provider and a sizeable employer of Bermudians on the island, that we maintain that and grow that.” She said the company is looking at going in to more schools and explaining what it does and why it offers a good career path. It is such an important cornerstone to the financial services industry in the jurisdiction,” she said. It is incredibly important that Ocorian stay connected with and supportive of the jurisdiction.”

2019. June 15. The Bermuda Monetary Authority has fined Estera Services (Bermuda) Ltd $500,000, the financial-services regulator announced yesterday. The BMA said the civil penalties were imposed under the Trusts (Regulation of Trust Business) Act 2001 and relate to deficiencies in the corporate services provider’s anti-money laundering and antiterrorist financing programme. Estera was formed in 2016 by a management buyout of what was previously known as Appleby Fiduciary Services. The BMA said the deficiencies “predated the acquisition”. In a statement yesterday, Estera said: “The fine relates to missing the deadline for the documentary remediation of historical client files. Our client records have now been fully updated and independently reviewed and Estera Services (Bermuda) Ltd can confirm the portfolio is compliant with regulatory requirements. Estera has invested significant capital and resources to implement enhanced client-related procedures to maintain the highest standards of compliance.” The BMA stated: “The civil penalties have been imposed for the company’s failure to adequately comply within a specified timeframe with certain requirements of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (the Regulations), and specifically the regulations relating to the application of customer due diligence and enhanced due diligence, internal controls, and risk assessment.” The regulator said it had required the deficiencies in the AML/ATF programme to be rectified by the end of 2017, but Estera failed to make deadline. The regulations had been in effect since 2009, and that this case highlighted the importance of licensees having up-to-date AML/ATF measures in place and that they should deal with shortcomings identified by the regulator “within reasonable time frames”.

2017. October 18. Employees of administration services company Estera have raised more than $10,000 to donate to colleagues in its British Virgin Islands (BVI) office following the devastation of hurricanes Maria and Irma. Staff from Estera’s in offices in different countries, including Bermuda, came together with events such as raffles, dress down days and bake sales to raise the money to help their storm-stricken colleagues rebuild their lives. In addition to these funds, Estera has provided close to $40,000 for tarpaulin, electrical generators, evacuation costs, daily supplies, showers and washing machines in the office, as well as cash in hand for daily living requirements. Farah Ballands, chief executive officer of Estera, said “This is a fantastic result and I am very proud of the generous spirit of the Estera global team. Our team in the BVI, and the jurisdiction as a whole, has shown incredible resilience throughout this difficult time.” Estera’s BVI office resumed normal operating hours for clients on October 5.

2017. June 7. The former fiduciary arm of law firm Appleby has bought up a European financial services group. Estera, once part of Appleby, but now an independent business, has taken over Heritage Financial Services Group, which operates from offices in Guernsey, the UK and Malta. Farah Ballands, CEO of Estera, said: “We are delighted to welcome HFSG to the Estera family, a team with an excellent reputation in client service, a value which is core to Estera.” HFSG provides third party fund administration, depositary, trust and corporate services. It employs around 100 people across three jurisdictions and the company is expected to be rebranded as Estera once the deal is finalized. Ms Ballands said: “This transaction, together with our acquisition of Guernsey-based Morgan Sharpe earlier this year, is central to the expansion of our funds service line, while also expanding jurisdictional choice for our trust and corporate clients.” Ethan Levner, Estera head of corporate development, said the funds market was a strategic priority for Estera and the buy-up of two fund administration businesses underlined the company’s commitment to establishing an international presence in the sector. Mark Huntley, CEO of HFSG, said: “This transaction marks a significant development for Heritage, our clients and employees. “While we will continue to deliver the highest standard of professional and personalized service, our business, our people and our clients will all benefit from the global resources and growth ambition offered by Estera in respect of our fund and fiduciary service offering.” He added: “We appreciate that for our clients continuity of people and service is important. To this end, they can take reassurance in the fact that all Heritage employees will transfer to Estera and that our senior management will take a meaningful stake in the enlarged business.” HFSG’s insurance business is not included in the transaction and will continue to operate as an independent company.

2017. March 2. Financial services firm Estera has bought up an administration company based in Jersey. Estera — formerly part of law firm Appleby — finalized the deal to take over Morgan Sharpe Administration earlier this week. The new acquisition, which is subject to approval by regulators, will take the Estera name. Farah Ballands, chief executive officer of Estera, said: “This is a great start to the new year following the success of our rebrand in 2016. “The team at Morgan Sharpe is a perfect fit with the Estera group — they are committed to the high standards of service that our clients are accustomed to and we are pleased to welcome them. Under our ownership, Morgan Sharpe’s clients will benefit from additional resources and access to Estera’s expertise on a global basis. Estera is committed to enhancing its position as a leading player in existing and new jurisdictions. With this announcement, we are able to offer clients greater breadth of capabilities in private equity fund administration whilst strengthening Estera’s position in an important market — we are thrilled to boost our presence in Guernsey.” Ethan Levner, Estera group head of corporate development, added: “This acquisition represents our intention to be an active acquirer globally. Morgan Sharpe is an outstanding firm, and we are delighted that the transaction will bring greater depth to Estera’s service offering.” Serena Tremlett and Mel Torode, founders of Morgan Sharpe, said: “Partnering with a leading global player in fund administration and fiduciary services in an increasingly complex and international market was the next logical step for Morgan Sharpe. We have received many approaches from potential buyers in recent years, a great validation of our business model. Estera is the ideal partner for us given its global reach, excellent reputation, professionalism and commitment to both employees and clients. We are excited about the new opportunities for our clients and our team that will arise from this partnership.” Estera, formed last year after a management buyout of Appleby Fiduciary Services, now has more than 370 staff across ten jurisdictions.

2016. April 19. Appleby Fiduciary Business is to change its name to Estera following a management buyout. The new name for the company, which separated from its parent law firm last December, was inspired by a staff competition. Rory Gorman, group managing director of Estera, said: “For nearly 60 years, we have provided corporate administration and private client services to successful companies and individuals around the world. “Our rebrand presents a significant opportunity to build on the reputation we have established through our breadth of knowledge and deep experience in the industries in which our clients operate.” The global corporate, trust, funds and accounting services company, which employs around 350 staff across ten jurisdictions, is led by chief executive officer Farah Ballands. Ms Ballands said: “We’re delighted and proud to launch Estera and have the opportunity to build on the strong heritage and culture we have developed. Our new brand and independence provides a solid platform for growth, including strategic investment to align our systems and procedures to deliver a consistently quality service to our clients.”

2016. January 5. The management buyout of Appleby Fiduciary Business,  the fiduciary arm of legal firm Appleby, backed by London-based private-equity firm Bridgepoint, has been completed.  The deal means the fiduciary and administration segment of the offshore law firm, which has 350 employees, part of which is based in Bermuda, will be spun off. Farah Ballands, a former Appleby partner based in the firm’s Jersey office, will lead the new independent business. She said: “Appleby Fiduciary Business has grown significantly over the years with over 350 staff located across nine offshore jurisdictions. “With Bridgepoint’s expertise and support, we look forward to building on this success and investing in new infrastructure to give our clients an unrivalled standard of service. The Appleby group has provided us with a solid foundation from which to build our new fiduciary brand, which we expect to launch in the first quarter of 2016. The team is also busy working on a number of strategic initiatives that we look forward to communicating over the next few weeks, including the appointment of our new chairman.” Bridgepoint partner and head of its financial services team William Paul said: “The buyout brings significant opportunity for Appleby Fiduciary Business as a stand-alone business to accelerate its growth organically and via acquisition in what remains a strongly growing market.” Appleby Fiduciary Business provided offshore management and administration services to wealthy clients, private companies, funds and global corporations for more than 25 years. The business unit is also a significant player in the Island’s booming insurance-linked securities market. Although neither side was prepared to discuss the cost of the buyout, is estimated to be worth around $370 million.

2019. October 29. Everest Re Group Ltd’s after-tax operating income in the third-quarter was $138.4 million, or $3.39 per share, which beat analysts’ estimates of $2.21. However, its net profit was almost halved, at $104.4 million, compared to $198.4 million a year ago. That was $2.56 per diluted common share, down from $4.84 year-on-year. The Bermuda-based insurer and reinsurer’s combined ratio worsened, rising from 100 per cent to 101.4 per cent. Everest’s third-quarter results were impacted by $280 million of current year catastrophe losses, net of reinsurance and reinstatement premiums, related to Hurricane Dorian and Typhoon Faxai. Dominic Addesso, president and chief executive officer of Everest Re, said: “Everest generated an impressive 13 per cent annualized net income return on equity for the nine months year-to-date. Our business and balance sheet are built to provide meaningful protection for our clients, as was the case this quarter with the previously announced catastrophe losses from Hurricane Dorian and Typhoon Faxai.” He added: “Everest’s mix of business between reinsurance and insurance, supported by robust investment income, results in a strategic balance that has contributed to our longevity and success over many years.” Gross written premiums for the quarter were $2.4 billion, an increase of 9 per cent compared to the third-quarter of 2018. Direct insurance premiums were up 29 per cent, from the third-quarter 2018, to $666.6 million. Worldwide reinsurance premiums increased 3 per cent to $1.7 billion for the quarter, compared to a year ago. Net investment income increased 12 per cent to $181.1 million. Book value per share was up from $193.37 at December 31, 2018 to $220.28 at September 30.

2019. August 20. Everest Insurance has appointed Kyle Adams to lead its Bermuda operations. “In this role, Kyle will focus on establishing and growing Everest’s Bermuda insurance operations — a growing and innovative market for our clients and trading partners,” said a spokesman from the company. Mr Adams comes to Everest with over 20 years of experience, including a decade operating in Bermuda. Most recently, he held the title of co-chief executive officer for JLT Specialty Bermuda and led JLT Bermuda’s financial and professional lines practice. Prior to his time at JLT, Mr Adams spent 19 years with Aon’s Financial Services Group in Bermuda and the United States. He has a Bachelor of Science in business administration-finance from the University of Vermont. He also has his chartered financial analyst, chartered property casualty underwriter, and registered professional liability underwriter designations. “Kyle brings a wealth of knowledge, expertise and strong, well-developed relationships in the Bermuda market to Everest,” said Mike Karmilowicz, president of Everest Specialty Underwriters. “The addition of Kyle and the establishment of our Bermuda operation signify our commitment to becoming a world class speciality diversified insurance company, and allow us to further expand our distribution footprint and capabilities to help better serve the needs of our clients.”

2019. July 30. Bermuda-based Everest Re Group Ltd has reported second quarter net income of $342.9 million, compared to $69.9 million for the same period last year. After-tax operating income was $320.9 million, compared to $40.4 million, year-on-year. The company made a half-year profit of $691.8 million, up from $280.2 million for the same six months in 2018. After-tax operating income was $603.2 million. Gross written premiums for the quarter were $2.2 billion, an increase of 5 per cent compared to the second quarter last year. Dominic Addesso, president and chief executive officer, said: “Everest delivered outstanding results for the quarter, with a 16.1 per cent annualized net income return on equity, driven by both solid underwriting and investment performance. With nearly $9 billion in common equity and strong franchises in both reinsurance and insurance, our ability to adjust the mix of business to optimize our portfolio was again evident this quarter, as Everest added top line in insurance and casualty reinsurance along with a strong property cat renewal to take advantage of the improved market conditions.” Direct insurance premiums were up 17 per cent, year-on-year, to $757.1 million. Worldwide reinsurance premiums were essentially flat at $1.4 billion. The combined ratio was 89.2 per cent for the quarter, compared to 105.1 per cent in the second quarter of 2018. Net investment income increased 27 per cent to $179 million, while net after-tax realised capital gains amounted to $26 million compared to $10.5 million during the second quarter of 2018. Shareholders’ equity ended the quarter at $8.9 billion, up $1 billion from the end of 2018. Book value per share was up from $194.43 at December 31, to $218.07 at the end of June.

2019. May 7. Everest Re Group Ltd made a profit of $348.9 million, or $8.54 per diluted share, for the first quarter. That was up from $210.3 million, or $5.11 per share, a year ago. After-tax operating income was $282.4 million, or $6.91 per share, compared to $219.7 million, or $5.34 per share, for the same period last year. This beat the $5.91 per share estimated consensus of analysts tracked by Yahoo Finance. Dominic Addesso, chief executive officer, said: “During the first quarter of 2019 Everest produced very strong financial results while continuing to expand our market profile with growth in both our reinsurance and insurance businesses. The company delivered $8.54 of net income per diluted common share, equal to a 17 per cent annualized return on equity, driven by both solid underwriting and investment returns. Our underwriting operations are strategically balanced between reinsurance and insurance, allowing us to quickly respond to market conditions across virtually all classes of business and territories in building the optimal portfolio of risks.” Gross written premiums were $2.1 billion, up 10 per cent, while worldwide reinsurance premiums were $1.5 billion, an improvement of 7 per cent. The company’s combined ratio improved from 93.3 per cent to 88.7 per cent, year-on-year. Catastrophe losses were $25 million, related to the damaging rain and floods in Townsville, Australia. Net investment income was $141 million for the quarter, an improvement of 1.9 per cent. Book value per share rose from $194.43 at the beginning of the year, to $206.68 at the end of March.

2019. April 15. Everest Insurance Claims Medical Management group has added two new medical management solutions for select Everest workers’ compensation policyholders, according to Bermuda-based insurer and reinsurer Everest Re Group Ltd. The company said Everest Nurse Triage and Everest Telemed join the group’s suite of client-based services. The company said the programme streamlines the first report of injury process, reducing claim reporting lag time, and advises employees of necessary self-care or additional medical care

2019. February 11. Everest Re Group racked up net catastrophe losses of $875 million as it posted a fourth-quarter net loss. Hurricane Michael, the California Camp and Woolsey wildfires and an Australia hailstorm event were the main drivers of the natural disaster losses, the Bermudian-based reinsurer said. For the fourth quarter, Everest’s net loss was $382.3 million, or $9.50 per common share, compared to net income of $571 million, or $13.85 per diluted common share for the fourth quarter of 2017. However, for the full year, Everest was profitable, reporting 2018 net income of $103.6 million, or $2.53 per share. Dominic Addesso, Everest’s chief executive officer, said: “During 2018 there were nearly $90 billion of insured industry losses, the fourth highest on record. Despite these events, Everest had both positive net income and operating income for the year. This result is testament to the diversification of our business across geographies, classes of business, and sources of capital. Everest’s long-term returns remain impressive, with five and ten-year average returns on equity still in excess of 10 per cent.” After-tax operating loss was $236.9 million, or $5.89 per common share, for the fourth quarter, beating the $6.31 per share loss that was the average forecast of analysts tracked by Yahoo Finance. The group’s combined ratio was 134.1 per cent for the quarter and 108.8 per cent for the year. Net investment income amounted to $140.2 million for the quarter and $581.2 million for the full year 2018, up 7 per cent over the full-year 2017 results. Net after-tax realised losses amounted to $143.9 million for the quarter. Everest’s shares fell $1.42, or 0.6 per cent, to close on $220.38 on the New York Stock Exchange, before the results were released.

2018. October 29. Everest Re Group posted third-quarter profit of $205.6 million, despite incurring catastrophe losses of $240 million. The major loss events during the quarter for the Bermuda-based reinsurer were Hurricane Florence, Typhoon Jebi, Typhoon Trami, California wildfires and floods in Japan. After-tax operating income of $167.5 million, or $4.09 per share, surpassed the $3.23 consensus forecast of analysts tracked by Yahoo Finance. In the third quarter of last year, Everest suffered a net of $639.4 million. Dominic Addesso, Everest’s chief executive officer, said: “Everest generated an annualized net income return on equity for the quarter of 10 per cent, despite the previously announced catastrophe losses. The underlying results were quite strong with an attritional combined ratio of 85.8 per cent year to date as a result of our diversified portfolio.” Everest’s gross written premiums for the quarter were up 8 per cent over the third quarter of 2017 to $2.2 billion. Worldwide reinsurance premiums were up 7 per cent to $1.7 billion, with growth across each segment primarily driven by increased casualty and property pro-rata premium, rate improvement, increased shares on existing business and profitable new opportunities. Direct insurance premiums were up 8 per cent to $517.3 million. The combined ratio was 100 per cent for the quarter compared to 163.6 per cent in the third quarter of 2017. Excluding catastrophe losses, reinstatement premiums and the favourable prior period loss development, the current quarter attritional combined ratio was 86.8 per cent compared to 85.5 per cent in the same period last year. Net investment income increased 18 per cent for the quarter to $161.4 million. Net after-tax realised gains amounted to $43.6 million and net after-tax unrealized capital losses were $20.9 million, for the quarter. During the third quarter, Everest bought 229,432 of its own shares at a total cost of $50 million. Under the company’s share repurchase authorization, another 1.4 million shares are available. Shareholders’ equity ended the quarter at $8.3 billion compared to $8.4 billion at year end 2017. Book value per share was down from $204.95 at December 31, 2017 to $204.91 at September 30, 2018.

2018. June 26. Bermuda-based Everest Re Group Ltd has launched a new transportation and logistics business segment within Everest Insurance, led by Jeff Engelbrecht. It will offer customers multiple lines of coverage, including workers’ compensation, employers’ liability, and up to $5 million in capacity for automobile liability and general liability. Mr Engelbrecht said: “We are excited to establish and develop a sustainable, high-quality casualty operation built to meet the needs of our clients in the transportation and logistics industry. We believe this is an opportunity for us to add distinct value to this marketplace by combining underwriting excellence with a unique mix of loss control services, a deep set of complementary products, customized claims handling, and the Everest commitment of stability, leading financial strength and long-established credibility.”

2017. October 30. Catastrophe losses from hurricanes Harvey, Irma and Maria, and the Mexico City earthquake, weighed on Everest Re Group’s third-quarter earnings. The company reported a pretax loss of $904 million. While the net loss after tax was $639.4 million, or $15.73 per common share for the third quarter, a consensus of Wall Street analysts had expected losses of $15.99 per share. For the same period in 2016, Everest Re made a profit of $295.4 million, or $7.06 per share. After-tax operating loss in the third quarter, excluding realized capital gains and losses, was $667.6 million compared to after-tax operating income of $273.2 million, a year ago. Everest Re had previously announced that its third-quarter results included net catastrophe losses of $1.2 billion for Harvey, Irma, Maria and the Mexico City earthquake. The net after-tax impact on earnings from these events was $897.7 million or $22.09 per common share for the quarter. Dominic Addesso, president and CEO, said: “This series of natural catastrophes highlights the nature of our business model. We have consistently generated strong margins which gives us the financial ability to respond to these events, without impairment. We are proud to be part of an industry that provides financial security to its customers in times of need. “Looking forward, market conditions are expected to be more favorable allowing the industry to continue on a sound footing. We should benefit to a greater degree given the strong underwriting fundamentals of our portfolio.” Everest’s gross written premiums for the quarter were $2 billion, up 15 per cent year-on-year. Net investment income was $137 million, up 12 per cent for the quarter. The company’s combined ratio — the portion of premium dollars spent on claims and expenses — was 163.6 per cent compared to 85.6 per cent a year ago. For the nine months ended September 30, the net loss was $102.1 million, or $2.51 per share. The after-tax operating loss, excluding realized capital gains and losses was $180.6 million, or $4.45 per common share.

2017. April 25. Island-based insurer and reinsurer Everest Re Group yesterday reported profits of $291.6 million for the first quarter of the year — up $119.9 million on the same period last year. The profit for the first three months of 2017 breaks down to $7.07 per common share, compared to $4 for the same period in 2016. Dominic Addesso, Everest’s chief executive officer, said: “We are starting out 2017 with a very strong quarter — providing a 13 per cent operating return on equity and a 77 per cent increase in net income earnings per share. We continue to see strong momentum across our underwriting operations, with opportunities in both reinsurance and insurance. This growth is not coming at the expense of margin as we hold fast to our underwriting principles, which are focused on sustained profitability regardless of the market cycle. This strategy, coupled with the returns we are achieving on our growing investment portfolio are providing for the strong results we saw in the quarter.” Gross written premiums for the period amounted to $1.6 billion, an increase of 18 per cent year on year. Worldwide reinsurance premiums rose 19 per cent to $1.2 billion, while direct insurance premiums went up 15 per cent to $434 million. Net investment income for the period went up by 19 per cent for the quarter to $122.3 million.

2016. July 27. Bermuda-based reinsurer Everest Re has struck a deal to sell its Heartland Crop Insurance subsidiary. CGB Enterprises, a provider of transportation and storage services, agreed to buy Heartland to expand its offerings to the agriculture industry. The terms of the deal were not disclosed, but Everest said it would continue to have exposure to the crop insurance business through a reinsurance arrangement with CGB. The coverage protects farmers against weather-related setbacks or lower-than-expected revenue and is backed by the US government. Everest bought Heartland for $55 million in 2011. Ownership has been shifting in the crop insurance industry as volatile commodity prices and pressure on government subsidies boosted risk for insurers. Wells Fargo & Co, Monsanto Co and Deere & Co are among the giant publicly traded firms that have retreated from the market in recent years. The buyer sells crop insurance and services to farmers in 38 states and will expand its reach and diversify its risks with the deal. “We look forward to collectively accomplishing many of the goals we share together,” Ron Miller, president of insurer CGB Diversified Services, said in the statement. “Our combined strength will make us a significant force in our industry in the years ahead.” Everest Re also posted second-quarter earnings late Monday that topped analysts’ estimates for operating profit and revenue.

2016. July 25. Bermuda-based reinsurer Everest Re Group Ltd’s second-quarter net income was $155.7 million, down from $209.1 million in the same period last year. However, earnings per diluted common share were $3.67, easily beating the $2.85 consensus forecast of analysts tracked by Yahoo Finance. Gross written premiums were $1.4 billion, up 8 per cent year-on-year, and would have been 10 per cent had it not been for “unfavourable foreign currency fluctuations”. Reinsurance premiums were up 1 per cent, on a constant dollar basis, and insurance premiums were up 32 per cent. Everest’s combined ratio — the proportion of premium dollars spent on claims and expenses — was 95.1 per cent for the quarter compared to 88 per cent in the second quarter of 2015. The company was hit by catastrophe losses from the Fort McMurray wildfires in Alberta, the Ecuador earthquake, and Texas hailstorms, which totaled $149.1 million, offset by reserve releases on several 2011 events. The net impact of these losses, after reinstatement premiums and taxes was $105.4 million. Net investment income rose almost $8 million to $132.7 million. “Everest’s six month annualized operating return on equity of 9.4 per cent is an excellent result given the number of catastrophe loss events, the impact of foreign currency movements around the world, and the continued low interest rate environment,” said Dominic Addesso, Everest’s chief executive officer. “It remains a challenging environment but the strategic actions we have taken to position Everest for continued success are borne out by these results.” During the quarter Everest repurchased 544,728 of its common shares at an average price of $184.37 and a total cost of $100.4 million. The company can buy back up to 3.1 million of its own shares under its existing share repurchase allocation. Shareholders’ equity ended the quarter at $8 billion, up 5 per cent since the end of 2015. Book value per share increased 7 per cent since the end of 2015 to $190.66 at June 30. Everest Re shares yesterday rose 18 cents to close at $181.44 before the company announced its results.

2015. November 17. Bermuda-based Everest Re Group Ltd has entered into a strategic alliance between its US primary specialty insurer, Everest National Insurance Company, and Associated Electric & Gas Insurance Services (Aegis). This new partnership will provide primary admitted coverages to Aegis members, and non-member energy companies, in the utility and related energy industry, including those involved with exploration and production. In a statement, Everest said Everest National would provide a full admitted product set to these clients, including offerings for primary and excess workers’ compensation coverage, general liability, and automobile coverage, written on either a guaranteed cost or loss sensitive basis, subject to underwriting guidelines. The new Aegis-Everest alliance is effective for business from January 1 next year. Jonathan Zaffino, president of Everest National Insurance Company, said: “We are excited to begin this new venture and support its success with our vast reach of admitted product capability and risk transfer solutions, leading claims services and the strength of our balance sheet. We look forward to a long-term and beneficial relationship with Aegis and their member and non-member clients alike.”

2015. October 27. An earthquake in Chile and the Tianjin explosion in China resulted in $100 million of insured losses for Everest Re Group in the third quarter. The company made a profit of $88.6 million, down from the $274.9 million achieved during the same three months in 2014. Everest’s after-tax operating income available to share holders was $200.2 million, or $4.53 per common share, down from $280.5 million year-on-year. Dominic Addesso, president and chief executive officer, said: “We are pleased with the results that Everest has achieved thus far this year considering the challenging market dynamics — both on the underwriting and investment fronts. After-tax operating income totaled $755 million through the first nine months of the year, despite a number of industry events, leading to a 14 per cent annualized operating return on equity and a 4 per cent growth in book value per share. Premium, on a constant dollar basis, was up 4 per cent for the year, as we continue to seek out opportunities for profitable growth.” Everest’s gross written premiums for the quarter were $1.7 billion, up 3 per cent. Insurance premiums were up 34 per cent, quarter over quarter. The Tianjin explosion in August resulted in $60 million of insured losses incurred by Everest, while last month’s Illapel earthquake in Chile resulted in a further $40 million of losses. Net investment income was down $115.5 million, however shareholders’ equity stood at $7.5 billion at the end of the quarter, with book value per share up 4 per cent since the start of the year at $173.76. Everest repurchased 1.1 million of its common shares during the quarter, at a total cost of $200 million. Since the start the company has repurchased 1.8 million of its shares, at a total cost of $325 million.

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