A start-up unit formed by Bermuda-based Watford Re has secured a rating from AM Best.
Watford Specialty Insurance Company (WSIC), a subsidiary of Watford Re, has been awarded a financial strength rating of A- (Excellent) and an issuer credit rating of a- from AM Best. The outlook assigned to both ratings is stable.
The rating agency said the ratings are based on WSIC’s strong risk-adjusted capitalization; experienced underwriting partner in Arch Underwriters; the investment acumen of Highbridge Principal Strategies; and WSIC’s strategic component of Watford Re’s broad-based business plan.
Partially offsetting these positive rating factors are the inherent risks associated with a start-up company and the risks associated with a subsidiary with a limited geographic footprint. In addition, the competitive market conditions in the insurance and reinsurance sectors in the US may challenge the execution of the business plan.
Watford Specialty, Watford Re, Bermuda, AM Best, Arch Underwriters, Highbridge Principal Strategies