SUSTAINABLE INVESTING

Our investment portfolio is primarily managed by external managers through the execution of investment management agreements and investment guidelines negotiated by the Enstar Investment Department. Enstar’s Investment Department retains responsibility for management and oversight of external asset managers and the strategic management of the portfolio.

Our investment objective is to obtain attractive, risk-adjusted investment returns, consistent with the preservation of capital, liquidity and prudent diversification of portfolio assets, while operating within the constraints imposed upon a global regulated re/insurance company.

Our responsible investment goal is to be able to assess and monitor the impact of the ESG-related exposures in our existing portfolio and prospective investments.

"We all have a role to play in ensuring we have a positive impact on society and the environment. We have made great strides on our ESG journey and I am proud of how far we have come."
STEPHEN HOGAN, HEAD OF ESG

Monitoring

To monitor the ESG exposures and characteristics of our investment portfolio, Enstar uses a combination of third-party ESG research tools and internal analysis to ensure compliance with responsible investment policies. We have established an ESG Investment Risk Framework, which includes the following climate-relevant sector limits in our investment portfolio monitoring:

• ESG rating - A minimum average ESG rating of BBB- for Enstar’s Corporate Bond securities.
• GHG Emissions Intensity - GHG Scope 1–2 emissions intensity for Enstar’s Corporate Bond and Public Equity positions, which is not to exceed the weighted average carbon emissions intensity score of applicable benchmark indices.

Both measures are monitored quarterly and our performance against these metrics in 2023 was as follows:

Assessment Framework

Enstar’s ESG assessment framework evaluates asset managers across the following areas:

• Policies and commitments to standards
• Investment process
• Governance
• Communication and reporting
• Diversity, equity and inclusion

As of 31 December 2023, approximately 91% of Enstar’s externally managed assets were managed by asset managers who are signatories of the UN Principles of Responsible Investment, reflecting our commitment to the integration and advancement of ESG principles.

Contact the ESG team for more information.