Watford Specialty Insurance Company, a division of Watford Re, has acquired a once-dormant insurer with admitted insurance licenses across the country.
Financial terms aren’t being disclosed.
The acquisition, now known as Watford Insurance Company (WIC), involves Watford’s purchase of Professionals Direct Insurance Company from Hanover Insurance Company. This acquisition reflects WSIC’s broader strategy of developing its U.S. operations. It also gives Watford the ability to get into the U.S. admitted property/casualty insurance market, through a partnership with Arch Underwriters (An Arch Reinsurance Company subsidiary).
WSIC parent Watford Re Ltd. is a Bermuda-domiciled reinsurer launched in 2014 with $1.1 billion in capital.
WSIC’s new purchase will partner with experienced program managers seeking a long-term relationship with a carrier that can provide high-rated capacity.
WIC’s admitted licenses are in all 50 states and the District of Columbia. The operation will be based in New Jersey, where Watford Specialty Insurance Company is also based.
Any liabilities at Watford Insurance Company relating to its pre-acquisition business are fully reinsured, stemming from a 100 percent quota share agreement with The Hanover Insurance Company. Also worth noting, The Hanover won’t have any connection in terms of liability or interest involving business written by Watford Insurance Company.
Source: Watford Re/Watford Specialty Insurance Company