Reinsurance News

Watford posts $256mn Q1 investment loss off COVID-19

24th April 2020 - Author: Charlie Wood

Bermuda domiciled re/insurance company Watford Holdings is expecting to shoulder a $256 million net investment loss in the first quarter due to coronavirus-related market volatility.

watford-holdings-logoWatford says the loss predominantly consists of unrealised mark-to-market losses to its non-investment grade fixed-income portfolio.

The impact of unrealised mark-to-market losses on net income is estimated to be approximately $290 million.

Realised losses in the quarter are estimated to be approximately $6 million.

The impact of COVID-19 on Watford’s Q1 underwriting results is not expected to be material, due to the mix of business underwritten.

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Watford expects that its book value will be impacted by unrealized mark-to-market losses to its investment grade portfolio of approximately $38 million.

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