Arch Capital

Watford is liable for a $18.6mn fee if the Arch deal is terminated.

Axis, RenRe, Arch and Everest Re trade roughly in line with the S&P 500.

The Bermudian is adding $10mn-$15mn to its Covid loss estimate as claims climb.

The underwriting deal comes at a time of heightened scrutiny for the hospitality insurance market.

Arch Capital reportedly offered to buy the business for a per-share value over 45% above yesterday’s close.

The move by the founding shareholder follows activist investor pressure on the reinsurer.

Transaction marks the company’s second mortgage ILS deal of the year.

The firm just missed analyst estimates after reporting a $65mn Covid-19-related loss in its mortgage segment that accompanied a higher cat loss total in general, causing operating earnings to fall.

Chaos in financial markets is also expected to have a substantial effect on Arch’s investment income in Q1.

The executive said syndicates would struggle to grow market share as casualty rates rise.

Arch continued its diversification away from traditional P&C (re)insurance purchasing a ~$500mn (~30%) stake in French trade credit insurer Coface.

The carrier said the market was in the early stages of rate change and it was hard to know how long improvements would last.