What is Enstar Group Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Enstar Group's Probability of Financial Distress (%) is 0.02%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Enstar Group's Probability of Financial Distress (%)
For the Insurance - Diversified subindustry, Enstar Group's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Enstar Group's Probability of Financial Distress (%) Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Enstar Group's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Enstar Group's Probability of Financial Distress (%) falls into.
Enstar Group Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -8.59 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For insurance companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Enstar Group (Enstar Group) Business Description
Traded in Other Exchanges
Address
22 Queen Street, Windsor Place, 3rd Floor, Hamilton, BMU, HM JX
Enstar Group Ltd is a (re)insurance group that offers capital release solutions through its network of group companies. It seeks to create value by managing (re)insurance companies and portfolios of (re)insurance and other liability business in run-off and striving to generate an attractive risk-adjusted return from its investment portfolio. Its operations through four reportable segments: Run-off, Assumed Life, Investments, and Legacy Underwriting.
Executives
| Silvester Dominic Francis Michael |
director, 10 percent owner, officer: Chief Executive Officer |
C/O CASTLEWOOD HOLDINGS LIMITED, PO BOX HM 2267, WINDSOR PL., 18 QUEEN ST, HAMILTON D0 HM JX |
| Stone Point Capital Llc |
director |
20 HORSENECK LANE, GREENWICH CT 06830 |
| Poul Albaek Winslow |
director |
ONE QUEEN STREET EAST, SUITE 2500, TORONTO A6 M5C 2W5 |
| Girish Ramanathan |
officer: Chief Accounting Officer |
C/O 22 QUEEN STREET, WINDSOR PLACE, 3RD FLOOR, HAMILTON D0 HM 11 |
| Obaidat Nazar Al |
officer: Chief Investment Officer |
C/O 22 QUEEN STREET, WINDSOR PLACE, 3RD FLOOR, HAMILTON D0 HM 11 |
| Stone Point Gp Ltd. |
director |
C/O CITCO TRUSTEES (CAYMAN) LIMITED, 89 NEXUS WAY, CAMANA BAY, GRAND CAYMAN E9 KY1-1205 |
| Laurence Plumb |
officer: Chief of Business Operations |
C/O QUEEN STREET, WINDSOR PLACE, 3RD FLOOR, HAMILTON D0 HM 11 |
| Seema Thaper |
officer: Chief Risk Officer |
C/O QUEEN STREET, WINDSOR PLACE, 3RD FLOOR, HAMILTON D0 HM 11 |
| David Kang-wen Ni |
officer: Chief Strategy Officer |
C/O 22 QUEEN STREET, WINDSOR PLACE, 3RD FLOOR, HAMILTON D0 HM 11 |
| Matthew Kirk |
officer: Group Treasurer |
C/O 22 QUEEN STREET, WINDSOR PLACE, 3RD FLOOR, HAMILTON D0 HM 11 |
| Sharon Anne Beesley |
director |
WINDSOR PLACE 3RD FLOOR, 22 QUEEN STREET, HAMILTON D0 HM 11 |
| Robert J Campbell |
director |
|
| Michael P Murphy |
officer: Chief Accounting Officer |
ONE PARK PLACE, SUITE 600, DUBLIN CA 94568 |
| Zachary Wolf |
officer: Chief Financial Officer |
411 FIFTH AVE. 5TH FLOOR, NEW YORK NY 10016 |
| Kathleen Carbone |
officer: Chief Accounting Officer |
1271 AVE OF THE AMERICAS, NEW YORK NY 10020-1304 |
Enstar Group (Enstar Group) Headlines
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