Watford Specialty Insurance Company (“WSIC”) has acquired a previously-dormant insurance company that holds admitted insurance licenses in all 50 states and the District of Columbia.
This carrier has been renamed Watford Insurance Company (“WIC”) and has re-domesticated to New Jersey, WSIC’s domicile state.
WIC’s liabilities relating to pre-acquisition business are fully reinsured pursuant to a 100% quota share agreement with The Hanover Insurance Company, which carries financial strength ratings of A/A/A3 from A.M. Best, S&P and Moody’s, respectively.
The Hanover Insurance Company is the largest insurer in a group of affiliated companies that collectively has over $3.8 billion in capital. The Hanover Insurance Company will not have any liability for, or interest in, business written by WIC.
The acquisition furthers Watford's strategy of developing its insurance operations in the U.S. and provides Watford with the ability to access the U.S. admitted property and casualty insurance market in partnership with Arch Underwriters Inc., a wholly-owned subsidiary of Arch Reinsurance Company.
WIC’s focus will be to partner with experienced program managers who are seeking a long-term relationship with a carrier that can provide highly-rated capacity.