ARCH’S EARNINGS RISE, DESPITE 58% FALL IN UNDERWRITING INCOME

Bermudian re/insurer Watford Holdings saw third-quarter net earnings jump to $78.1m from $152,000 after posting a more than $82m positive swing in realised and unrealised investment gains. Earnings per share rose to $3.92 from 1¢ and beat analysts’ forecast of $3.48. The group’s combined ratio added 1.6 points to 105.6%, as the underwriting loss grew 64% to $8.2m, driven by a $4m, 4.4-point increase in property catastrophe losses. Quarterly gross written premiums fell 21% to $197.5m, owing to a decrease in casualty reinsurance premiums arising from a three-year excess-of-loss contract for which all premiums were recorded during 2019’s third quarter and will be earned over the three years. For the first nine months of the year, Watford swung to a net loss of $858,000 from income of $61.6m owing to a $68.5m negative swing in realised and unrealised gains. The underwriting loss grew 54% to $25m and the combined ratio added 2.2 points to 106%. Year-to-date gross written premiums dipped 1.4% to $590.3m.