watford re enstar

Please tell us what you liked about it. Enstar, which owns 9.1% of Watford, made a formal offer of $31.00 per share in early October, while Arch countered with its own (formal) offer on Oct. 9 to acquire all of Watford’s common shares in an all-cash transaction valued at approximately $622 million, or $31.10 per share. “I am encouraged by Enstar’s $31 per share proposal for Watford, but this price (like the public market price) is also a significant discount to the value of Watford’s extremely attractive book, in part because Enstar would be subjected to the same, disadvantageous Arch and HPS management contracts that weigh on the public shareholders today,” Bobman said. The acquiring entity will be a wholly owned direct or indirect subsidiary of Enstar Group Ltd., added Enstar, which is a publicly traded company with $21.3 billion in total assets. Thank you! “We would be pleased to engage with Watford and its board to help provide a solution and are pleased to provide you with our non-binding indicative proposal for the acquisition of 100% of the ordinary share capital of Watford,” said Enstar in a letter to Watford’s board of directors on Sept. 30, which is now part of a filing with the Securities and Exchange Commission. Please tell us what you liked about it. Mass. The Enstar offer is higher than another offer received recently from Arch Capital Group and a group of private equity firms for a reported $26 per share, or $500 million. Legacy insurance heavyweight Enstar has taken a 5.1 percent stake in Arch-backed total return carrier Watford Holdings, securities filings indicate, becoming its third largest investor. Currently, Enstar holds a 9.1% stake in total-return reinsurer Watford after recently increasing its share from the 5% acquired in the first-quarter of 2020. Enstar proposes $615mn offer for Watford Re 2020-10-01T14:41:00 Enstar has proposed a $31.00 per share offer for Watford Re, around 23 percent higher than the offer reportedly made by an Arch-led consortium last month. (Although there have been press reports about the bid, Arch has never confirmed publicly that it has made a bid for Watford). Sources have explained that the unusual relationship between Watford, HPS and Arch could make it difficult for other buyers to acquire and operate Watford due to the long-term underwriting and investment contracts. The news comes after a … On Thursday, peer Enstar Group (NASDAQ: ESGR) offered to buy out the entirety of Watford for $31 per share, which would mean a rich premium of 35% on the previous day's closing price. The Enstar offer is … Required fields are marked *. Watford Re was capitalized in March 2014 with $1.1 billion, and is registered as a Class 4 insurer with the Bermuda Monetary Authority. Bermuda-based legacy and live company Enstar has increased its holding in total return reinsurer Watford Re from just over 5 percent to 9.1 percent. We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. Please tell us what we can do to improve this article. By continuing to use our site, you accept our revised Privacy Policy. Watford stressed discussions with Enstar would not necessarily result in the board determining that the Enstar proposal is a superior proposal. 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Watford announced on October 9, 2020, that it had entered into a definitive merger agreement with Arch and Greysbridge, a wholly owned subsidiary of Arch. Enstar ups bid for Watford to $686mn, threatens legal action over Arch deal 15th October 2020 - Author: Charlie Wood Legacy acquirer Enstar has written to the board of Watford Holdings offering a revised acquisition offer of $686 million, as well as strongly criticising its handling of previous takeover attempts and subsequent agreement with Arch. As I noted above, an Enstar-controlled Watford is a bad outcome for Arch. Enstar Group Ltd. has made a 100% cash offer to purchase Watford Holdings Ltd.for $31.00 per ordinary share, which amounts to $620 million. Further, a significant majority of Watford Re’s investments are managed by HPS Investment Partners. Enstar has proposed a $31.00 per share offer for Watford Re, around 23 percent higher than the offer reportedly made by an Arch-led consortium last month. Watford said it has not determined whether Enstar’s proposal in fact constitutes a “superior proposal” under the current provisions of the merger agreement with Arch and has not yet changed its recommendation in support of the merger with Arch. Watford’s underwriting operations are managed exclusively by subsidiaries of Arch Capital Group Ltd., which owns 12.6% of Watford shares. News Watford activist investor ‘disappointed’ at rumored Arch bid as share price surges 41% Activist investor Capital Returns Management LLC in May called for Watford to be sold or put into runoff, complaining about “consistently poor operating and stock performance” in comparison with its peers in the industry. The $31.00 per share purchase price represents a premium to current market price of 35.1%, said Enstar. “I call upon Arch and HPS to waive their management contracts or for Arch to step up and agree to pay 85% or 90% of Watford’s tangible book value. Watford’s board of directors then announced on Oct. 19 it had received a possible “superior proposal” from Enstar, which it must consider in order to exercise its fiduciary duties. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call UK support +44 (0)20 3377 3996 / … The re/insurer than outbid Enstar, as Arch offered $31.10 per share to buy Watford Re. https://www.insurancejournal.com/news/international/2020/10/09/586008.htm Mass. Enstar proposes $615mn offer for Watford Re. On Friday last week, Watford Re announced it had reached a definitive agreement to sell itself to sponsor company Arch for $31.10 a share. Watford Holdings Ltd.’s board of directors announced they are considering an acquisition offer of $34.50 per share from Enstar Group which could be … Get the insurance industry's trusted newsletter, Your email address will not be published. 2020-10-01T14:41:00Z. Enstar Group Ltd. has made a 100% cash offer to purchase Watford Holdings Ltd.for $31.00 per ordinary share, which amounts to $620 million. However, this reported bid by Arch was never offered formally (with filings at the Securities and Exchange Commission) and could have just been based on industry rumor, sources say. Enstar has increased its stake in Watford Re to 9.1%, ramping up pressure on senior management at the hedge fund reinsurer to change the carrier’s strategic direction. 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Arch steps up Watford pursuit with Enstar-backed revised offer 2nd November 2020 - Author: Charlie Wood Arch Capital and Watford Holdings have agreed a revised acquisition agreement that would see Arch purchase Watford at an increased price of $35 per share, or approximately $700 million. PEMBROKE, Bermuda, Oct. 19, 2020 (GLOBE NEWSWIRE) -- Watford Holdings Ltd. (NASDAQ: WTRE) (“Watford” or the “Company”) today announced its Board of Directors has determined, in … Delivering the Digital Experience Customers Now Demand Post-Pandemic. How Does Insurance Move from Risk Transfer? Investor Relations Watford Re Ltd. (“Watford Re”) is a global specialty insurer and reinsurer headquartered in Bermuda. Thank you! Back in May, A.M. Best placed the credit ratings of Watford Re Ltd. and its subsidiaries under review with … Arch, after all, trades at a premium to tangible book, so an acquisition of Watford even at $38 per share, would create a huge windfall for Arch shareholders,” he affirmed. Get the insurance industry's trusted newsletter, Your email address will not be published. “The market has correctly concluded that Watford is being run by and for the benefit of Arch and HPS [Investment Partners], and not by its independent board nor for its public shareholders,” he continued. We estimate tangible book value of approximately $43 per share as of Sept. 30, 2020, creating a win for both Watford shareholders (who have so far been wronged at every turn) and Arch’s own shareholders,” Bobman went on to say. Enstar Group Ltd has made a $31 a share offer to buy fellow Bermudian insurer Watford Holdings Ltd, which values the company at about $616 million. And that very fact alone may be enough to motivate Arch to ensure that doesn’t happen. Watford Re Ltd. (“Watford Re”) is a global specialty insurer and reinsurer headquartered in Bermuda. Enstar makes a bid to acquire Watford Re 02-10-2020; Maiden Re North America deal finalised by Enstar 02-01-2019; Enstar Group and Stone Point Capital have completed the sale of StarStone Underwriting, the Lloyd’s managing agency, and its managed Lloyd’s syndicate, 1301, to Inigo, the new specialty re/insurance holding company. % of people found this article valuable. Enstar offer sends Watford Re shares up 26%, Bobman calls for Arch response 1 October 2020 Watford Holdings’ shares surged on Thursday after Enstar revealed it had made a $31.00 per share offer for the Bermudian reinsurer, while activist investor Ron Bobman has urged Arch to either waive its contracts with Watford or make a higher offer for it. The offer came in a letter to the Watford … Further, a significant majority of Watford Re’s investments are managed by HPS Investment Partners. Want to read this article? Enstar increases Watford Re holding to 9.1% 21 September 2020 Bermuda-based legacy and live company Enstar has increased its holding in total return reinsurer Watford Re from just over 5 percent to 9.1 percent. Sources explained that the unusual relationship between Watford, HPS and Arch makes it difficult for other buyers to acquire and operate Watford due to the long-term underwriting and investment contracts. Enstar Group Limited has asked Watford Re to enter into a non-disclosure agreement to let it begin due diligence on a potential acquisition. How Does Insurance Move from Risk Transfer? Required fields are marked *. Currently a 9.1% shareholder in Watford, Enstar noted that Watford’s board of directors have hired Morgan Stanley to help evaluate strategic options for the company. Delivering the Digital Experience Customers Now Demand Post-Pandemic. Watford’s heavily discounted public market valuation reflects its abhorrent governance and management structure,” said Ronald D. Bobman, president of New York-based Capital Returns Management, in an emailed statement on Oct. 5. This copy is for your personal, non-commercial use. Watford Holdings Ltd.’s board of directors announced they are considering an acquisition offer of $34.50 per share from Enstar Group which could be a “superior proposal” to the recent offer from Arch Capital Ltd. for approximately $622 million, or $31.10 per share. Thank you! % of people found this article valuable. Watford’s underwriting operations are managed exclusively by subsidiaries of Arch Capital Group Ltd., which also has a $100 million equity investment in Watford. On Thursday, peer Enstar Group (NASDAQ:ESGR) offered to buy out the entirety of Watford for $31 per share, which would mean a rich premium of … Last week, Enstar delivered a letter to the Board of Directors of Watford Re, indicating its desire to acquire all of the company’s outstanding shares. Watford Re was capitalized in March 2014 with $1.1 billion, and is registered as a Class 4 insurer with the Bermuda Monetary Authority. According to press reports, an initial offer for Watford was made by Arch in September of $26 per share, or $500 million. Watford Holdings Ltd. is a global property and casualty insurance and reinsurance company with approximately $1.0 billion in capital as of June 30, 2020, comprised of $172.6 million of senior notes, $52.4 million of contingently redeemable preference shares and $776.2 million of common shareholders’ equity, and with operations in Bermuda, the United States and Europe. Watford Holdings, Enstar, Arch Capital Enstar said it recently raised its stake in Watford because it believes “the current share price undervalues the true economic value of Watford.” (Enstar raised its stake in Watford during the third quarter). The offer from Enstar, which currently holds a 9.1% stake in Watford after recently increasing its share from the 5% acquired in Q1 2020, was $31 per share, so slightly less than the price that Arch has agreed to pay for the firm. We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. “Arch and HPS should agree to amend those contracts and clear Enstar to pay a full and fair price, or Arch should step up and pay Watford’s shareholders fair value. Morgan Stanley is acting as financial adviser to Watford, and Clifford Chance US LLP is serving as Watford’s legal adviser. Watford Re Ltd. (“Watford Re”) is a Bermuda-based, multi-line reinsurer and is registered as a Class 4 Insurer with the Bermuda Monetary Authority. Please tell us what we can do to improve this article. Watford Holdings Ltd. is a global property and casualty insurance and reinsurance company with approximately $1.1 billion in capital as of September 30, 2020, comprised of: $172.6 million of senior notes, $52.4 million of contingently redeemable preference shares and $866.92 million of common shareholders’ equity, with operations in Bermuda, the United States and Europe. The proposed Arch-Watford takeover deal may be in doubt after the reinsurance firm revealed that a counter-offer from the Enstar Group could be deemed as “superior”.. Last month, Arch Capital Group agreed a deal to acquire Watford Holdings in an all-cash transaction valued at $622m (£477m). Arch and Watford representatives were not available for comment. Watford… Thank you! By continuing to use our site, you accept our revised Privacy Policy. Enstar offering more than Arch Capital for the Bermuda-based carrier Watford shares settle below $31 Enstar offer :: Insurance Day We use cookies to improve your website experience. Here’s a short history of the offers and counter offers for Watford. “We continue to believe that Watford should not be an independent public company. But Enstar wasn’t onside at that price and wanted to continue pursuing the acquisition.

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