Hedge-fund backed Watford Re parent files for IPO on NASDAQ

The parent company of Bermuda-based specialty re/insurer Watford Re has publicly filed for an initial public offering (IPO) on the NASDAQ Global Market.

On January 29, Watford Holdings filed a registration statement on Form 10 with the US Securities and Exchange Commission in connection with the proposed listing of Watford's common shares.

The listing's timing is subject to market and other conditions, including the effectiveness of the Form 10, and Watford Holdings has said there can be no assurance it will be able to complete the listing.

Watford Re was capitalised in March 2014 with $1.1 billion, and is registered as a Class 4 insurer with the Bermuda Monetary Authority. It was established as a joint venture between Arch Capital and New York-based hedge fund Highbridge Capital Management.

Alongside the proposed IPO, Watford Holdings' board of directors has authorised a share repurchase programme. After the listing on NASDAQ, the re/insurer may repurchase up to $75 million of its outstanding common shares from time to time on the open market or in privately negotiated transactions.

Watford has retained JP Morgan, Barclays and Morgan Stanley as joint lead advisors on the NASDAQ listing. Bank of America Merrill Lynch and Keefe, Bruyette & Woods are acting as co-advisors, and Clifford Chance US is acting as legal advisor to Watford.