Leading international law firm Clifford Chance has advised Watford Holdings Ltd. and its wholly owned subsidiary Watford Re Ltd., a newly formed, Bermuda-based multi-line reinsurer, on the completion of Watford Re’s $1.13 billion capital raise. Watford Re received a financial strength rating of A- from A.M. Best Company and is a Class 4 insurer licensed by the Bermuda Monetary Authority.
Watford Re’s reinsurance business will be managed by Arch Underwriters Ltd., a newly formed subsidiary of Arch Capital Group Ltd., and its assets will be managed by Highbridge Principal Strategies, LLC, a subsidiary of J.P. Morgan Asset Management.
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 said. “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.”
The cross-border, cross-practice Clifford Chance team Mr. Boss led included Capital Markets, Corporate and Tax, Pensions & Employment lawyers in New York, as well as Capital Markets and Finance lawyers in London.
