Best’s News & Research Service - October 14, 2020 05:08 PM (EDT)
AM Best Comments on Credit Ratings of Watford Re Ltd. and Its Subsidiaries
- October 14, 2020 05:08 PM (EDT)
Oldwick //BestWire// - AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Watford Re Ltd. (Watford Re) (Bermuda) and its subsidiaries, Watford Insurance Company Europe Limited (WICE) (Gibraltar), Watford Insurance Company (WIC) (New Jersey) and Watford Specialty Insurance Company (WSIC) (New Jersey) is currently under review with negative implications. In addition, AM Best has commented that the Long-Term ICR of “bbb-” of Watford Holdings Ltd. (Watford), the group’s ultimate holding company, is currently under review with negative implications.
The under-review status will be evaluated in due course, and will consider the announcement that Arch Capital Group Ltd., [NASDAQ: ACGL] (Arch) has entered into a definitive agreement with the group’s ultimate holding company, Watford, to acquire all of the common shares of Watford in an all-cash transaction valued at approximately $622 million. Following closing, which is expected to occur in the first quarter of 2021, Watford will continue to operate as a standalone business and remain consolidated within Arch’s financials.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.