Arch gives nod to Bermuda founder with major Watford Re overhaul
Arch Capital Group has overhauled the leadership of Watford Re as part of a “strategic repositioning” following its $700 million acquisition earlier this year. The business has been rebranded to Somers Re, giving a nod to the founder of Bermuda Sir George Somers.
Somers Re will be led by Liz Cunningham as chief executive officer (CEO) and Sioned Butler as chief financial officer (CFO).
Cunningham is an actuary who has previously served as the chief risk officer for Watford Re and has nearly 20 years of experience in insurance and risk management. Butler most recently served as controller for Watford Re and has over 15 years of finance experience, including serving as an auditor at KPMG.
The firm will follow a more traditional reinsurance business model, Arch and its two investment partners Warburg Pincus and Kelso said in a statement, while leveraging Arch’s underwriting expertise while pursuing a more conservative investment strategy.
Somers Re has secured a financial strength rating of A- stable from AM Best.
“After seven years operating under the Watford name, reestablishing the company as Somers Re marks a new chapter for the franchise,” said Maamoun Rajeh (pictured), chairman and CEO of Arch’s Worldwide Reinsurance Group and a member of the Board of Somers Holdings. “Liz and Sioned bring fresh perspectives and strong leadership to the company, while maintaining institutional knowledge and continuity from their time in Watford. I am also pleased to remain engaged with our long-term partner, Highbridge Principal Strategies, as our primary investment manager.”
Cunningham stated: “I am looking forward to continuing the work with our founding sponsor Arch and welcoming the new Warburg Pincus and Kelso board members to Somers Re. We are taking the best parts of Watford and adding new strategies and capabilities.”
Michael Thompson, managing director at Warburg Pincus, added: “We are pleased to be able to partner with Arch to deliver performance for Somers Re policyholders and trading partners. The overall Somers Group platform — with insurance and reinsurance capabilities in Bermuda, U.S. and Europe — has a unique value proposition and is well positioned to deliver bespoke solutions and meaningful capacity to our clients around the world.”
Steve Dutton, partner at Kelso, commented: “I’ve been very impressed with the team’s ability to recognize an opportunity and then reimagine an entire business model to position the company to thrive in the coming years. We believe that Somers Re is uniquely qualified to augment its position with its clients and counterparties and look forward to leveraging our expertise and capabilities to support the firm in this next chapter.”
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