Watford Announces Expected Impact of COVID-19 on 2020 First Quarter Results
April 23 2020 - 7:05PM
Watford Holdings Ltd. (the "Company") [Nasdaq: WTRE] announced that
it estimates that its 2020 First Quarter earnings will include a
net investment loss of approximately $265 million due to investment
market volatility caused by the economic shutdown mandated by
governments around the world related to the COVID-19 virus.
The net investment loss is predominantly comprised of unrealized
mark-to-market losses to the Company's non-investment grade
fixed-income portfolio. The impact of unrealized
mark-to-market losses on net income is estimated to be
approximately $290 million. Realized losses in the quarter are
estimated to be approximately $6 million.
In addition, the Company expects that its book value will be
impacted by unrealized mark-to-market losses to its investment
grade portfolio of approximately $38 million. These losses
will be included in the statement of comprehensive income (loss)
and are mainly driven by mark-to-market price movements on
investment grade asset-backed securities.
The impact of COVID-19 on the Company’s 2020 first quarter
underwriting results is not expected to be material, due to the mix
of business underwritten.The Company expects to release its 2020
first quarter results after the close of regular stock market hours
on Monday, May 4, 2020. The Company will hold a conference call for
investors and analysts at 1:00 p.m. Eastern Time on Tuesday, May 5,
2020 through a live webcast available via the Investors section of
the Company’s website at https://investors.watfordre.com. A replay
of the conference call also will be available via the Investors
section of the Company's website beginning on May 6, 2020.
Watford Holdings Ltd., a Bermuda-based company, provides
insurance and reinsurance on a worldwide basis through its wholly
owned subsidiaries.
Cautionary Note Regarding Forward-Looking
Statements
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward−looking statements. This release or any
other written or oral statements made by or on behalf of Watford
Holdings Ltd. and its subsidiaries may include forward−looking
statements, which reflect our current views with respect to future
events and financial performance. All statements other than
statements of historical fact included in or incorporated by
reference in this release are forward−looking statements.
Forward−looking statements can generally be identified by the
use of forward−looking terminology such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe" or "continue" or
their negative or variations or similar terminology.
Forward−looking statements involve our current assessment of risks
and uncertainties. These forward-looking statements include
statements regarding the Company's expectations and estimates for
its 2020 first quarter results. Actual events and results may
differ materially from those expressed or implied in these
statements. A non-exclusive list of the important factors that
could cause actual results to differ materially from those in such
forward-looking statements includes the following: adverse general
economic and market conditions, including those caused by
pandemics, including COVID-19, and government actions in response
thereto; increased competition; pricing and policy term trends;
fluctuations in the actions of rating agencies and our ability to
maintain and improve our ratings; investment performance; the loss
of key personnel; the adequacy of our loss reserves, severity
and/or frequency of losses, greater than expected loss ratios and
adverse development on claim and/or claim expense liabilities;
greater frequency or severity of unpredictable natural and man-made
catastrophic events; the impact of acts of terrorism and acts
of war; changes in regulations and/or tax laws in the United States
or elsewhere; our ability to successfully integrate, establish and
maintain operating procedures as well as integrate the businesses
we have acquired or may acquire into the existing operations;
changes in accounting principles or policies; material differences
between actual and expected assessments for guaranty funds and
mandatory pooling arrangements; availability and cost to us of
reinsurance to manage our gross and net exposures; the failure of
others to meet their obligations to us; and other factors
identified in our filings with the U.S. Securities and Exchange
Commission.
The foregoing review of important factors should not be
construed as exhaustive and should be read in conjunction with
other cautionary statements that are included herein or elsewhere.
All subsequent written and oral forward−looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. We
undertake no obligation to publicly update or revise any
forward−looking statement, whether as a result of new information,
future events or otherwise.
Watford Holdings Ltd. Robert L. Hawley
Rhawley@watfordre.com
Source: Watford Holdings Ltd.
Watford (NASDAQ:WTREP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Watford (NASDAQ:WTREP)
Historical Stock Chart
From Jul 2023 to Jul 2024