Watford Holdings Ltd has reported a profit of $61.4 million, or $3.08 per share, after $1.1 million of preference dividends, for the fourth quarter. That compared to a net loss of $16.9 million, after $1.2 million of preference dividends for the same period in 2019.

Watford Holdings is the parent company of Watford Re Ltd, the global specialty insurer and reinsurer that is headquartered in Bermuda.

Book value per diluted common share was $47.08 at December 31, an increase of 8.3 per cent year-over-year.

Full year net income was $60.5 million, or $3.04 per diluted common share, compared to net income of $44.7 million in 2019.

In the fourth quarter, Watford had a combined ratio of 106.3 per cent, comprised of a 76.5 per cent loss ratio, a 25.6 per cent acquisition expense ratio and a 4.2 per cent general and administrative expense ratio, that was an improvement on the combined ratio of 128.3 per cent for the same period in 2019.

Watford reported net interest income of $24.6 million, a 1.1 per cent yield on average net assets for the 2020 fourth quarter, compared to net interest income of $29.8 million and a 1.4 per cent yield on average net assets for the 2019 fourth quarter.

The company had net investment income of $84.4 million, a 3.8 per cent return on average net assets, for the quarter.

Watford said it will not hold a conference call to discuss its fourth quarter results due to the previously announced merger agreement between the company and Arch Capital Group Ltd.