Watford warns market volatility will weigh on Q1 results
Watford Holdings has warned its Q1 results will include a net investment loss of approximately $265 million due to the financial volatility caused by the COVID-19 crisis and the resulting economic shutdown.
The loss comprises unrealised mark-to-market losses to Watford’s non-investment grade fixed-income portfolio. The impact of unrealised mark-to-market losses on net income is estimated to be approximately $290 million, with realised losses estimated to be approximately $6 million for the quarter.
Book value is also expected to be impacted by unrealised mark-to-market losses to its investment grade portfolio of approximately $38 million.
Watford said the impact of COVID-19 on its Q1 underwriting results, which are due on May 4, is not expected to be material, due to the mix of business underwritten.
Editor's picks
Editor's picks
Related content
Bermuda Re
Newton Media Ltd
Kingfisher House
21-23 Elmfield Road
BR1 1LT
United Kingdom