AM Best Comment On Watford Re Credit Ratings
AM Best said that the ratings of “a-” of Watford Re Ltd. and its subsidiaries is currently under review with negative implications.
A statement from the ratings agency said, “AM Best has commented that the Financial Strength Rating of A- [Excellent] and the Long-Term Issuer Credit Ratings 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.“
