21 May 2014News

Watford Re receives advice on its $1.13 billion capital raise

Clifford Chance has advised Watford Holdings and its subsidiary Watford Re, a newly formed, Bermuda-based multi-line reinsurer, on the completion of Watford Re's $1.13 billion capital raise.

New York-based Clifford Chance insurance partner Gary Boss advised Watford on the transaction and its distinctive structure.

"Combining a diversified multi-line reinsurance business with an alternative investment strategy is a unique approach that differentiates Watford from traditional insurers," he says.  "This new structure positions Watford to generate attractive risk-adjusted returns for its shareholders over the long term while delivering unique abilities to provide underwriting solutions for Watford's clients."

Watford Re's reinsurance business will be managed by Arch Underwriters, a newly formed subsidiary of Arch Capital Group, and its assets will be managed by Highbridge Principal Strategies, a subsidiary of J.P. Morgan Asset Management.

Watford Re received a financial strength rating of A- from A.M. Best Company and is a Class 4 insurer licensed by the BMA.

The cross-border, cross-practice Clifford Chance team that Boss led included capital markets, corporate and tax, pensions & employment lawyers in New York, as well as capital markets and finance lawyers in London.