Watford Announces Declaration of Quarterly Dividend on Preference Shares

Rhea-AI Summary

Watford Holdings Ltd. (Nasdaq: WTRE) announced a quarterly dividend of $0.50580 per share on its 8½% Cumulative Redeemable Preference Shares, payable on June 30, 2020, to holders of record as of June 15, 2020. The dividend rate is adjusted quarterly based on the 3-month USD LIBOR plus a margin of 6.6785%. As of March 31, 2020, Watford maintained approximately $788.9 million in capital but faced potential downgrades in financial strength ratings from A.M. Best and Kroll Bond Rating Agency, reflecting ongoing risks and uncertainties.

Positive

• Quarterly dividend of $0.50580 per share indicates cash distribution to shareholders.
• Capital of approximately $788.9 million reflects a stable financial base.

Negative

• Financial strength ratings under review with negative implications could impact investor confidence.
• Potential downgrades in insurance financial strength ratings may affect operational stability.

News Market Reaction – WTRE

-0.76%

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-0.76% News Effect

On the day this news was published, WTRE declined 0.76%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

PEMBROKE, Bermuda, June 03, 2020 (GLOBE NEWSWIRE) -- Watford Holdings Ltd. ("Watford") (Nasdaq: WTRE) announced today that on June 30, 2020, it intends to pay to holders of record as of June 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 "2Q2020 Dividend") on the Preference Shares of $0.50580 per share on June 30, 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 $788.9 million in capital as of March 31, 2020, comprised of: $172.5 million of senior notes, $52.3 million of contingently redeemable preference shares and $564.1 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 announced that it had placed on watch-downgrade the insurance financial strength ratings of Watford's operating subsidiaries as well as the credit rating of Watford Holdings Ltd.

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 2Q2020 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 2Q2020 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

What is the dividend amount paid by Watford Holdings Ltd.?

Watford Holdings Ltd. is paying a quarterly dividend of $0.50580 per share.

When is the dividend payment date for Watford Holdings Ltd.?

The dividend is scheduled to be paid on June 30, 2020.

Who qualifies for the Watford Holdings Ltd. dividend?

Holders of record as of June 15, 2020, qualify for the dividend.

What is the adjustment mechanism for the dividend on Watford's Preference Shares?

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

What are the risks associated with investing in Watford Holdings Ltd.?

Investors should consider the potential downgrades in financial strength ratings and the uncertainties in dividend timing.