Market volatility drags Watford into loss for Q1

Watford Holdings reported a net loss for Q1 2020, blaming turbulent market conditions and the resulting impact on its investment portfolio for the slide in performance, but remained upbeat about the broader outlook for the business.

The re/insurer reported a net loss of $267.8 million in Q1 2020, compared to net profit of $47.6 million for the same period in 2019.

Watford reported gross written premiums of $234.9 million in Q1 2020, up from $186.69 million in Q1 2019. Its combined ratio inched up to 104.4 percent for the quarter, from 104.1 percent in Q1 2019.

Jon Levy, Watford’s chief executive officer, said the results were “heavily affected by the investment market volatility caused by the economic shutdown mandated by governments around the world.”

While the pandemic ha a significant impact on the global economy and Watford’s business, the impact was no greater than expected for an event of this magnitude, he said.

“Insurance and reinsurance market conditions continue to move in a favorable direction and we remain optimistic about our positioning in the marketplace,” he concluded.