Bermuda's Argo, Enstar and White Mountains swing to loss in Q1

Bermudian re/insurers Enstar Group, White Mountains and Argo Group all reported a loss in the first quarter of 2020 due to the impact of global COVID-19 pandemic and related economic downturn.

Enstar reported consolidated net loss of $516.8 million for the three months ended March 31, 2020, compared with net earnings of $358.8 million a year ago. This included the impact of unrealised investment losses of $612.6 million due to the disruption in financial markets resulting from the pandemic.

The company's StarStone and Atrium business segments recorded COVID-19 related underwriting losses of $22.2 million and $5.1 million, respectively.

White Mountains Insurance Group saw a loss of $132 million in the quarter, compared with a comprehensive income of $284 million in Q1 2019. Chief executive Manning Rountree said that the impact of COVID019 on its business has been varied so far, but highlighted that the quarter ended with "$0.8 billion of undeployed capital and ample liquidity".

At Argo Group International Holdings, the first quarter results reflected a net loss of $18.8 million, compared with net income of $91.2 million in Q1 2019. Its combined ratio rose to 103.2 percent, from 94.7 percent in the prior year quarter, primarily driven by catastrophe losses of $29.1 million, including $26.2 million related to the COVID-19 pandemic.

“We achieved strong premium growth and positive operating results in the first quarter, but we are still not satisfied with our overall performance,” said Argo chief executive officer Kevin Rehnberg. “While we expect the premium and loss impact of COVID-19 to be challenging in 2020, we are committed to maintaining financial strength and implementing our strategy to drive long-term shareholder value – a focused review of our businesses; investment where there is significant opportunity; and a focus on maximizing underwriting profitability."