Arch to buy Bermuda reinsurer for $622 million
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Arch Capital Group Ltd. will acquire Watford Holdings Ltd. for approximately $622 million, Arch said in a statement Friday.
Bermuda-based Watford will continue to operate as a standalone business following the closing of the deal, which is expected in the first quarter of 2021, the statement said.
Arch, which founded Watford as a reinsurer with a nontraditional investment strategy in 2014 before later taking it public, owns approximately 13% of Watford’s outstanding shares.
News of the potential deal surfaced last month after a slump in Watford’s share price.
The transaction will be funded through cash from Arch’s balance sheet and is subject to customary closing conditions, including regulatory and shareholder approval.
Arch, which is also based in Bermuda, will retain “the flexibility to bring in additional investment partners as co-investors in the transaction,” the statement said.
Marc Grandisson, Arch’s president and CEO, said “we are pleased to deepen our existing strategic and financial investment,” in Watford.
Jon Levy, Watford’s president and CEO, said he expects a “seamless transition for our clients, trading partners and policyholders.”
