Watford Specialty Ins Co
Rating Date
June 2026
NAIC
Classification
Classification
Risk Adjusted
Capital Ratio #1
Capital Ratio #1
Risk Adjusted
Capital Ratio #2
Capital Ratio #2
Loss
Ratio
Ratio
Total
Assets
Assets
Capital
Net
Premiums
Premiums
Net
Income
Income
Major Rating Factors:
History of adequate reserve strength (6.4 on a scale of 0 to 10) as reserves have been consistently at an acceptable level. Good overall results on stability tests (6.5) despite negative cash flow from operations for 2025. Stability strengths include good operational trends and excellent risk diversification. The largest net exposure for one risk is conservative at 1.2% of capital. Fair profitability index (3.5) with operating losses during 2022, 2023 and 2024.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Superior liquidity (10.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
F - Negative cash flow.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Reinsurance (100.0%)
Licensed in:
(No states)
Principal Investments:
Investment grade bonds (87.7%), cash (7.6%), other (4.7%)
Corporate Info
Group Affiliation
Arch Capital Group Ltd
Investment Rating
Company Address
Harborside Three
Jersey City, NJ 07311
Jersey City, NJ 07311
Phone Number
(201) 743-4000
NAIC Number
15824
Website
Largest Affiliates