Enstar Group Limited reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, Enstar's total assets decreased to $20,256 million from $20,913 million at the end of 2023. Total liabilities also fell to $14,157 million from $15,265 million, while total shareholders' equity rose to $6,099 million from $5,648 million. Retained earnings increased to $5,583 million from $5,190 million.

In terms of revenue, Enstar reported total revenues of $423 million for Q3 2024, a substantial increase from $161 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $909 million, down from $947 million in the same period of 2023. Net premiums earned decreased slightly to $11 million in Q3 2024 from $14 million in Q3 2023, and for the nine months, they fell to $27 million from $29 million. However, net investment income rose to $163 million in Q3 2024 from $143 million in Q3 2023, and for the nine months, it increased to $478 million from $471 million.

Net income for Q3 2024 was $161 million, a significant rise from $51 million in Q3 2023. For the nine months, net income decreased to $425 million from $609 million in the prior year. Net income attributable to Enstar ordinary shareholders for Q3 2024 was $148 million, up from $38 million in Q3 2023, while for the nine months, it fell to $393 million from $483 million.

Strategically, Enstar signed a merger agreement on July 29, 2024, with Elk Bidco Limited, which will convert all ordinary shares into $338 in cash per share, totaling approximately $5.1 billion for shareholders. The merger is expected to close in mid-2025, pending regulatory approvals. Additionally, Enstar has committed to return approximately $500 million to shareholders as part of this agreement.

The company also engaged in several reinsurance transactions, including a $294 million premium for reinsurance of certain business written by a third-party capital platform. Enstar's investment strategy has shown resilience, with total investment returns for Q3 2024 reaching $393 million, compared to $146 million in Q3 2023.

General and administrative expenses increased significantly, reflecting higher salaries, benefits, and legal fees related to the merger. The company recognized a goodwill impairment of $63 million in Q3 2024, attributed to the merger agreement's fair value assessment.

Overall, Enstar's financial performance in Q3 2024 demonstrated strong revenue growth and profitability improvements, despite a decline in net income for the nine-month period, alongside strategic moves towards a significant merger and continued investment in reinsurance opportunities.