MORRISTOWN, N.J.--(BUSINESS WIRE)--Watford Specialty Insurance Company (“WSIC”) announced today it has acquired a previously-dormant insurance company that holds admitted insurance licenses in all 50 states and the District of Columbia. This carrier has been renamed Watford Insurance Company (“WIC”) and has re-domesticated to New Jersey, WSIC’s domicile state.
WIC’s liabilities relating to pre-acquisition business are fully reinsured pursuant to a 100% quota share agreement with The Hanover Insurance Company, which carries financial strength ratings of A/A/A3 from A.M. Best, S&P and Moody’s, respectively. The Hanover Insurance Company is the largest insurer in a group of affiliated companies that collectively has over $3.8 billion in capital. The Hanover Insurance Company will not have any liability for, or interest in, business written by WIC.
The acquisition furthers Watford's strategy of developing its insurance operations in the U.S. and provides Watford with the ability to access the U.S. admitted property and casualty insurance market in partnership with Arch Underwriters Inc., a wholly-owned subsidiary of Arch Reinsurance Company. WIC’s focus will be to partner with experienced program managers who are seeking a long-term relationship with a carrier that can provide highly-rated capacity.
About Watford Re Ltd ("WRL") and Watford Specialty Insurance Company
WRL is a Bermuda-domiciled reinsurance company established in 2014 with $1.1 billion of capital. WRL has an exclusive relationship with Arch Underwriters Limited (“AUL”), a wholly-owned subsidiary of Arch Reinsurance Ltd., pursuant to which AUL originates and administers a diversified portfolio of insurance and reinsurance business on behalf of WRL.
Watford Specialty Insurance Company, an indirect subsidiary of WRL, is a New Jersey-domiciled insurance carrier which was licensed in 2015 and currently has the ability to write excess and surplus lines business in 49 states and the District of Columbia.
WRL and WSIC carry an A.M. Best “A-minus (Excellent)” group rating in the financial size category XII ($1 Billion to $1.25 Billion).
Watford was advised in the transaction by Sutherland, Asbill & Brennan LLP and Westmont Associates, Inc.