New York, July 27, 2018 – Kroll Bond Rating Agency (KBRA) assigns insurance financial strength ratings (IFSR) of A to the operating subsidiaries of Watford Holdings Ltd. (Watford Holdings) – Watford Re Ltd.; Watford Insurance Company Europe Limited; Watford Specialty Insurance Company; and Watford Insurance Company (collectively referred to as Watford). KBRA also assigns an issuer rating of BBB+ to Watford Holdings. Additionally, KBRA assigns a rating of BBB- to Watford Holdings’ outstanding cumulative contingently redeemable preference shares. The Outlook for all ratings is Stable.
The ratings reflect Watford’s sound financial condition, diversified risk profile and seasoned management team. Watford is a total return global (re)insurer that combines underwriting medium- to long-tail casualty risks with an investment strategy focused on non-investment grade credit assets to generate attractive operating returns. Experienced, disciplined underwriting is provided by Arch Underwriters Ltd. and Arch Underwriters, Inc., both wholly owned subsidiaries of Arch Capital Group Ltd. (Arch) [NASDAQ: ACGL], in accordance with Watford's guidelines that specifically limit exposure to natural catastrophes and other shorter tail risks. HPS Investment Partners, LLC (HPS) is a New York-based global investment platform with a focus on non-investment grade credit that manages approximately two-thirds of Watford’s assets based on guidelines formulated to complement Watford’s underwriting portfolio. Watford enjoys a good flow of high quality business from its strategic relationship with Arch.
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