Enstar Group Limited - Ordinary Shares (ESGR) Company Bio
Enstar Group Limited acquires and manages insurance and reinsurance companies in run-off and portfolios of insurance and reinsurance business in run-off. It operates in four segments: Non-Life Run-Off, Atrium, Torus, and Life and Annuities. The company was founded in 2001 and is based in Hamilton, Bermuda.
ESGR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ESGR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Enstar Group LTD ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2758%. The most interesting components of our discounted cash flow analysis for Enstar Group LTD ended up being:
Enstar Group LTD's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 10.79% of tickers in our DCF set.
ESGR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 10.79% of tickers in our DCF set.
As a business, Enstar Group LTD experienced a tax rate of about 1% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than only 21.37% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TREE, GECC, MTG, LFC, and NOAH can be thought of as valuation peers to ESGR, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Enstar Group's (ESGR) subsidiary, Enstar Finance LLC, has priced $350M aggregate principal amount of 5.750% Fixed-Rate Reset Junior Subordinated Notes due 2040. Net proceeds will be used to repay outstanding term loan facility.Closing date is August 26.Yesterday's close was $187.38....
Commercial insurers are facing hefty claims from the coronavirus crisis but are also seeing a steep rise in premiums – tempting companies and industry veterans to raise capital, launch new businesses or expand into new lines. New insurance ventures sprang up after Hurricane Andrew in 1992, the 9/11 attacks in 2001 and Hurricane Katrina in 2005. John Cavanagh, former head of broker Willis Re and a founder of insurance venture capital firm Beat Capital, is seeking to raise funds in the "low hundreds of millions of pounds" from long-term investors for new insurance projects.
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. […]
Enstar Group Limited (ESGR) announced today that one of its wholly-owned subsidiaries has completed a transaction with Great Lakes Insurance SE and HSB Engineering Insurance Limited, both subsidiaries of Munich Re, pursuant to which Enstar’s subsidiary has acquired certain portfolios from their Australian branches. In the transaction, Enstar’s subsidiary received total assets of approximately AUD$228.2 million (approximately $156.2 million), subject to a final roll-forward adjustment, for assuming the associated net reserves, which primarily relate to long tail insurance business. Completion of the transaction followed receipt of regulatory and federal court of Australia approvals and satisfaction of various other closing conditions.