AM Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of Arch Wilsure Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating to A+ (Superior) from A- (Excellent) and the Long-Term Issuer Credit Rating to “aa” (Superior) from “a-” (Excellent) of Arch Wilsure Insurance Company (AWIC) (Kansas City, MO) (formally known as Watford Insurance Company). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect AWIC’s balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management.

Arch Capital Group Ltd. (Arch) purchased AWIC from Somers Group Holdings Ltd. (Somers), which is owned partially by Arch, in July of 2024. The purchase agreement between the affiliates provided Somers with additional operational efficiencies and Arch an admitted insurer that’s licensed in all 50 states. Legacy business that had been written is in run-off and business written in 2024 and forward is subject to a 100% quota share reinsurance agreement with Arch Insurance Company.

AM Best expects the operating performance of AWIC to be broadly in line with the broader Arch organization, which historically has produced highly profitable underwriting and in all recent years, double-digit returns on equity.

The stable outlooks reflect AM Best’s expectation that AWIC will produce favorable underwriting and investment returns in line with Arch’s historical performance and will be integrated fully into Arch.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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