Somers Ltd posted a $16.8 million loss in the last three months of last year, driven by a decrease in the market value of its investments and currency fluctuations.

The loss resulted in a 4.6 per cent decrease in Somers’ net asset value per share during the quarter to $17.30, down from $18.15 at the end of September. The loss broke down to 84 cents per share, compared to earnings per share of 80 cents in the corresponding quarter of last year.

Somers also announced that Duncan Saville had retired from its board of directors on February 6.

Since the end of the quarter, the financial-services holding company has struck a deal to sell Bermuda Commercial Bank to Permanent Capital, a New York-based firm. Also this month it agreed the conditional sale of its 55 per cent holding in UK firm Stockdale Securities in a deal worth up to £4.9 million ($6.4 million).

During the quarter, there was a $10.3 million valuation loss on the Somers’ investment portfolio, compared to a gain of $14.5 million during the corresponding period in 2017. This was primarily due to decreases in the value of Bermuda Commercial Bank, PCF and Waverton which were driven by negative stock market movements during the quarter. Offsetting these decreases was an increase in the valuation of Resimac.

Net foreign exchange losses totalled $5.5 million, as the UK pound and Australian dollar both depreciated against the US dollar during the quarter, by 2.2 per cent and 2.5 per cent respectively. All of these losses were unrealised.

Warren McLeland, chairman of Somers, a Bermuda Stock Exchange-listed company, said: “The first quarter of the year was characterised by negative stock market movements which adversely impacted a number of our investments and their resultant valuations.

“This, coupled with continued weakness in a number of currencies against the US dollar, led to a decrease in the company’s net asset value. Stock markets have rebounded in 2019 and despite increased volatility in the markets we believe our investments are well placed.

“Post the quarter end we announced that Somers had agreed to sell its investment in BCB subject to regulatory and governmental approvals.

“We intend to update shareholders on the use of the proceeds once the transaction has completed. Somers has also agreed to sell its investment in Stockdale Securities which is also conditional on UK regulatory approvals.

“Upon completion these sales will give the company increased capital and flexibility moving forward.”

Shareholders’ equity ended last year at $346.9 million, down from $364.1 million at the end of September. During the quarter Somers bought back a total of 744 shares at an average cost per

share of $16 and the number of shares in issue as at December 31, 2018 was 20,057,517.

Somers’ share price ended the period at $15.50, a discount of 10.4 per cent to the company’s net asset value per share.