Rebrand completes strategic repositioning.
Arch Capital Group Ltd. [NASDAQ: ACGL], alongside investment
partners Warburg Pincus and Kelso & Company (Kelso), today
announced that Watford Holdings Ltd. and Watford Re Ltd. have been
renamed Somers Group Holdings Ltd. (Somers Group) and Somers Re
Ltd. (Somers Re), respectively. Headquartered in Bermuda, the name
Somers Re is a nod to Sir George Somers, who founded Bermuda in
1609.
The name change is part of a strategic repositioning for Somers
Re as it builds on the Watford platform that was originally
established in 2014 as a total return reinsurer. Operating as
Somers Re, the firm will follow a more traditional reinsurance
business model, leveraging Arch’s underwriting expertise while
pursuing a more conservative investment strategy.
As an important step toward this objective, Somers Re is pleased
to announce that its new strategy and financial backing have
resulted in AM Best affirming a Financial Strength Rating of A-
stable.
Another important element of the reorganization of Somers Re is
a change in leadership. Liz Cunningham has been appointed CEO of
Somers Re. Cunningham is an actuary who has previously served as
the Chief Risk Officer for Watford Re and boasts nearly 20 years of
experience in insurance and risk management. Additionally, Sioned
Butler has been appointed Chief Financial Officer of Somers Re.
Butler most recently served as controller for Watford Re and has
over 15 years of finance experience, including serving as an
auditor at KPMG.
Earlier this year, the company closed its acquisition of
France-based insurance company Axeria IARD. Axeria is an
established insurer in the French market and adds additional
capabilities to Somers’ suite of insurance products and managing
general agencies (MGA) strategy.
“After seven years operating under the Watford name,
reestablishing the company as Somers Re marks a new chapter for the
franchise,” said Maamoun Rajeh, 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, said, “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.”
The insurance operations of Somers Group Holdings Ltd. will
continue to operate under their existing names. Watford Specialty
Insurance Company and Watford Insurance Company will serve
U.S.-based customers, Watford Insurance Company (Europe) Limited
will serve UK-based customers and Axeria IARD will provide capacity
to clients across continental Europe.
About Somers Group Holdings Ltd.
Somers Group Holdings Ltd. is a privately held, global specialty
property and casualty insurance and reinsurance company
headquartered in Bermuda that is owned by Arch Capital Group Ltd.,
Kelso & Company and Warburg Pincus. Somers Re Ltd., the group’s
flagship reinsurer, is focused on delivering flexible, creative
solutions to clients worldwide. U.S. clients are served by Watford
Specialty Insurance Company and Watford Insurance company. UK
business is underwritten by Watford Insurance Company Limited.
Europe/EU-based business is underwritten by Axeria IARD. For more
information, please visit www.somersgroup.com.
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a publicly listed Bermuda exempted
company with approximately $16.1 billion in capital at Sept. 30,
2021, provides insurance, reinsurance and mortgage insurance on a
worldwide basis through its wholly owned subsidiaries.
About Warburg Pincus LLC
Warburg Pincus LLC is a leading global growth investor. The firm
has more than $67 billion in private equity assets under
management. The firm’s active portfolio of more than 215 companies
is highly diversified by stage, sector, and geography. Warburg
Pincus is an experienced partner to management teams seeking to
build durable companies with sustainable value. Founded in 1966,
Warburg Pincus has raised 20 private equity funds, which have
invested more than $97 billion in over 960 companies in more than
40 countries. The firm is headquartered in New York with offices in
Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg,
Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and
Singapore. For more information please visit
www.warburgpincus.com
About Kelso & Company
Kelso is one of the oldest and most established firms
specializing in private equity investing. Since 1980, Kelso has
invested approximately $15 billion of equity capital in over 130
transactions. Kelso was founded by the inventor of the Employee
Stock Ownership Plan (“ESOP”) and, as a result, the principles of
partnership and alignment of interest serve as the foundation of
the firm’s investment philosophy. Kelso benefits from a successful
investment track record, deep sector expertise, a long-tenured
investing team, and a reputation as a preferred partner to
management teams and corporates. Kelso has significant experience
investing in financial services, having deployed approximately $3
billion of equity capital in the sector. For more information,
please visit www.kelso.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20211104005760/en/
Greg Hare, 336-333-0416 Arch Capital Services LLC
ghare@archgroup.com
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