Watford Announces Declaration of Quarterly Dividend on Preference Shares

Rhea-AI Summary

Watford Holdings Ltd. (Nasdaq: WTRE) announced a quarterly dividend of $0.48385 per share on its 8½% Cumulative Redeemable Preference Shares (WTREP) for holders of record as of December 15, 2020. The dividend will be paid on December 31, 2020. The dividend rate is set based on the 3-month USD LIBOR plus a margin of 6.6785%. As of September 30, 2020, Watford held approximately $1.1 billion in capital, with financial strength ratings of “A-” from A.M. Best and “A” from Kroll Bond Rating Agency, although A.M. Best placed its ratings under review with negative implications earlier in the year.

Positive

• Quarterly dividend of $0.48385 per share demonstrates commitment to shareholder returns.
• Company maintains a solid capital base of approximately $1.1 billion.

Negative

• A.M. Best placed financial strength ratings under review with negative implications.
• Potential uncertainties regarding the timing and sustainability of future dividends.

PEMBROKE, Bermuda, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Watford Holdings Ltd. ("Watford") (Nasdaq: WTRE) announced today that on December 31, 2020, it intends to pay to holders of record as of December 15, 2020 (the "Record Date") a quarterly dividend on its 8½% Cumulative Redeemable Preference Shares, which trade on Nasdaq under the ticker symbol "WTREP" (the "Preference Shares").

From and after the calendar quarter starting July 1, 2019, at the beginning of each calendar quarter the dividend rate on the Preference Shares will be adjusted for such calendar quarter to a rate equal to the 3-month USD LIBOR on the first calendar day of the quarter (or the next business day, if such first day is not a business day) plus a margin of 6.6785%, and the dividend paid for that calendar quarter shall be based on the actual number of days in such quarter.

Pursuant to their terms, Watford intends to pay a quarterly dividend (the "3Q2020 Dividend") on the Preference Shares of $0.48385 per share on December 31, 2020 to holders of record of the Preference Shares who held such shares on the Record Date.  

PROSPECTIVE INVESTORS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS CONCERNING THE U.S. FEDERAL, STATE, LOCAL AND NON-U.S. TAX CONSEQUENCES TO THEM OF ACQUIRING, HOLDING AND DISPOSING OF THE PREFERENCE SHARES BASED ON THEIR PARTICULAR CIRCUMSTANCES PRIOR TO MAKING AN INVESTMENT.

About Watford Holdings Ltd.

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 $866.9 million of common shareholders’ equity, with operations in Bermuda, the United States and Europe. Its operating subsidiaries have been assigned financial strength ratings of “A-” (Excellent) from A.M. Best and “A” from Kroll Bond Rating Agency. On May 1, 2020, A.M. Best announced that it had placed under review with negative implications the financial strength ratings of Watford's operating subsidiaries. On May 7, 2020, Kroll Bond Rating Agency affirmed the “A” insurance financial strength ratings of Watford's operating subsidiaries as well as the “BBB+” credit rating of Watford Holdings Ltd, with the outlook for all ratings revised to negative.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (the “PSLRA”) provides a “safe harbor” for forward-looking statements. This news release contains forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, generally can be identified by the words “believes,” “expects,” “intends,” “plans,” “estimates” or similar expressions that indicate future events. These forward-looking statements include statements regarding the expected timing of the 4Q2020 Dividend. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including: uncertainties with respect to the timing of the 4Q2020 Dividend; market conditions; and other risks set forth in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"), and in the Company’s other periodic reports filed with the SEC. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Watford disclaims any obligation to update these forward-looking statements because of new information, future events or circumstances or other factors.

Contacts

Laurence Richardson (Investor Contact): lbr@watfordholdings.com

FAQ

When will Watford Holdings pay its next dividend for WTREP shares?

Watford Holdings will pay a quarterly dividend of $0.48385 per share on December 31, 2020.

What is the record date for Watford Holdings' dividend payment?

The record date for the dividend payment is December 15, 2020.

How is the dividend rate for Watford Holdings' Preference Shares calculated?

The dividend rate is adjusted quarterly based on the 3-month USD LIBOR plus a margin of 6.6785%.

What is the current financial strength rating of Watford Holdings?

Watford's operating subsidiaries are rated 'A-' by A.M. Best and 'A' by Kroll Bond Rating Agency, though A.M. Best has placed its ratings under review with negative implications.