Watford Holdings To Strengthen Loss Reserves
Watford Holdings Ltd. announced that it expects to report a 2019 fourth quarter net loss “primarily due to a strengthening of net loss reserves of approximately $28 million across the current and prior accident years.”
The company said, “The loss reserve strengthening is in response to higher than projected reported losses in the quarter, mainly in U.S. casualty reinsurance, as well as known casualty exposures where losses are believed to have been incurred but, for the most part, have yet to be reported.
“The reserve increase primarily relates to two large casualty reinsurance contracts, one of which is in run-off, and one of which has been renewed at increasingly smaller participations over the past several years.
“In addition, catastrophe losses will impact the Company’s fourth quarter underwriting results by approximately $5 million.
“Despite the reserve increase, the Company expects to report positive growth in book value per share in excess of 3% for the quarter after reflecting strong investment income and the impact of share repurchases.
“As previously indicated, the Company will release its fourth quarter results after the close of business on Tuesday, February 11, 2020 and will host a conference call for investors and analysts at 1:00 p.m. Eastern Time on Wednesday, February 12, 2020.”
