Watford Holdings and Watford Re have been renamed Somers Group and Somers Re, respectively, according to a statement from Arch Capital Group and its two investment partners Warburg Pincus and Kelso.
Headquartered in Bermuda, the name is a nod to the island’s founder Sir George Somers and part of a wider strategic repositioning towards a more traditional reinsurance business model.
This new strategy and financial backing have resulted in AM Best affirming a Financial Strength Rating of A- stable for Somers Re.
The insurance operations of Somers Group will continue to operate under their existing names.
Watford Specialty Insurance Company and Watford Insurance Company will serve US-based customers, Watford Insurance Company (Europe) will serve UK-based customers and recently-acquired French outfit Axeria IARD will provide capacity to clients across continental Europe.
Liz Cunningham, an actuary and former Chief Risk Officer for Watford Re, will lead Somers Re as Chief Executive Officer.
Boasting nearly 20 years’ experience in insurance and risk management, Cunningham is joined by Sioned Butler as Chief Financial Officer.
Butler most recently served as controller for Watford Re and has over 15 years of finance experience, including serving as an auditor at KPMG.
“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.”
Commenting on her appointment and the relaunch more broadly, Cunningham said, “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, concluded, “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.”
