AM Best assigns ratings to Watford Specialty
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.
