Enstar, the Bermudian-based legacy solutions provider, has cited the tax benefit from the Bermuda Corporate Income Tax Act as one of the drivers of growth in return on equity.

Enstar declared full year 2023 profit of $1.1 billion, after fourth quarter net income attributable to Enstar ordinary shareholders of $599 million.

The ROE of 24.2 per cent and adjusted ROE of 18.8 per cent, was driven by investment returns of $1.1 billion, a tax benefit from the enactment of the Bermuda Corporate Income Tax Act 2023 of $205 million and a year-to-date net gain recognised on the completion of the novation of the Enhanzed Re reinsurance of a closed block of life annuity policies of $196 million.

The company repurchased 841,735 voting ordinary shares for $191 million at a significant discount to book value per ordinary share.

Dominic Silvester, Enstar CEO, said: “We finished 2023 strong off the back of an excellent fourth quarter, as we received sizeable contributions from our investment portfolio and generated solid run-off liability earnings, which resulted in ROE for the full year of 24.2 per cent.

“In addition, we repurchased $532 million of shares during the year, which contributed to our total growth in book value.”

“Turning to M&A, we maintained our leading market position through our completed loss portfolio transfer transactions with QBE and RACQ, as well as our bespoke agreement with AIG – all in acquiring $2.2 billion of liabilities.

“Looking ahead, we continue to see demand for our innovative legacy solutions and are confident that our strategy and robust business model will ensure we continue to meet our clients’ evolving needs as the dominant legacy player, while driving long-term shareholder value.”

Enstar’s year end results details the favourable movement of $2.4 billion in investment earnings. Net income from the Investments segment was $1.1 billion compared to a net loss of $1.3 billion in 2022.