KBRA Affirms and Subsequently Withdraws the Rating for Watford Insurance Company
26 Jul 2024 | New York
KBRA affirms the A insurance financial strength rating (IFSR) for Watford Insurance Company (WIC). The Outlook for the rating is changed from Stable to Developing. KBRA subsequently withdraws the rating.
Key Credit Considerations
The rating reflects WIC’s core status as part of Somers Re Ltd.’s IFSR until the closing of the sale of the company on July 1, 2024. On January 5, 2023, Arch Insurance Company, part of Arch Capital Group Ltd. (NYSE: ACGL), and Watford Specialty Insurance Company, an indirect wholly owned subsidiary of Somers Re Ltd., signed a letter of intent for Arch Insurance Company to acquire all of WIC’s outstanding capital stock from Watford Specialty Insurance Company, subject to regulatory approval. The change in WIC’s Outlook to Developing reflects the uncertainty with respect to the future financial position of WIC under its new ownership by Arch Insurance Company.
The withdrawal of the IFSR reflects KBRA’s future inability to access sufficient information to perform ongoing monitoring of the rating.
To access rating and relevant documents, click here.