Cahill Represents Arch Capital in Connection with Launch of Watford Re

April 4, 2014

Cahill represented Arch Capital Group Ltd. and its subsidiaries ("Arch") in connection with its role in the formation and launch of Watford Re Ltd., a newly-formed multi-line Bermuda reinsurer with a strategy to combine the float from a diversified reinsurance business with the returns from an investment portfolio comprised primarily of non-investment grade fixed income assets and offer its clients innovative products and structures not available in today’s traditional reinsurance market. Arch Underwriters Ltd., a subsidiary of Arch, will manage Watford’s reinsurance portfolio. Arch, through a subsidiary, also made a $100 million equity investment in Watford Holdings Ltd., the parent of Watford Re Ltd., acquiring approximately 11% of Watford Holdings’ common equity and warrants to purchase additional common equity. Watford Holdings raised capital totaling $1.133 billion, including Arch’s investment, in private offerings of common and preferred equity and commenced reinsurance operations in March 2014.