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.
Methodologies
Disclosures
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.
Doc ID: 1005269