Document:

Exhibit

Exhibit 10.1.1

ADDENDUM NO. 1 TO SERVICES AGREEMENT

This Addendum No. 1 is made and entered into as of the 16th day of September, 2014, and amends the Services Agreement (“Agreement”), effective March 24, 2014, by and among Watford Re Ltd., Watford Holdings Ltd., Arch Underwriters Ltd and, solely for the limited pur- poses set forth in Sections 2.08, 9.02(a)(iii), 12.07, and 12.13 of the Agreement, Highbridge Principal Strategies, LLC.

NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein and in the Agreement, the parties, intending to be bound in contract, hereby agree as fol- lows:

		
	1.
	Section 2(a) of Exhibit C to the Agreement is hereby amended by insertion of the fol- lowing after “3.00%” in clause I(i) and after “12.00%” in clause I(ii):

“(or such lesser amount as AUL may determine in its discretion)”

		
	2.
	Section 2(c) of Exhibit C to the Agreement is hereby amended by insertion of the fol- lowing after “(including IBNR)”:

“and deposit liabilities”

		
	3.
	The Individual Programs bullet point under heading B (Cessions from Arch) of Exhi- bit F to the Agreement is hereby amended as follows:

		
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	Individual Programs.  In addition, in order to diversify Watford’s portfo- lio, Arch Insurance Group may cede some share of its insurance program business to Watford.  With respect to any such business, if one or more reinsurers other than Watford or AUL Affiliates assume a share of the ceded business from Arch Insurance Group, AUL may decide, in its full discretion, whether to approve authorization of a Watford line on such cession in the share it deems appropriate; provided, however, that the terms and conditions authorized for Watford are the same as for such rein- surer(s); provided further that, notwithstanding the foregoing, such ces- sions shall be secured by a letter or letters of credit in an aggregate amount of at least [***]% of [***] for [***] and [***] (including [***]) for contracts ceded thereunder.

		
	4.
	Two new bullet points under heading B (Cessions from Arch) shall be added to Exhi- bit F to the Agreement as follows:

		
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	Market Validated Reinsurance or Retrocessions. If one or more reinsurers or retrocessionaires other than Watford or AUL Affiliates assume a share of reinsurance or retroceded business from Arch, AUL may decide, in its full discretion, whether to approve authorization of a Watford line on such reinsurance or retrocession in the share it deems appropriate; provided, however, that the terms and conditions authorized for Watford are the same as for such reinsurer(s) or retrocessionaire(s), as applicable; provided further that, notwithstanding the foregoing, such reinsurance or retrocessions shall 

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be secured by a letter or letters of credit in an aggregate amount of at least [***]% of [***] for [***] and [***] (including [***]) for contracts reinsured or retroceded thereunder.

		
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	Specifically Approved Business. Except as provided above, Watford's CEO or CRO will independently evaluate and price any AUL Affiliate Cessions and ensure compliance with the Underwriting Guidelines. The terms of such AUL Affiliate Cessions to the Company will be mutually agreed by the cedants and the Company's CEO or CRO; provided that, unless otherwise agreed (i) such cessions shall be secured by a letter or letters of credit in an aggregate amount of at least [***]% of [***] for [***] and [***] (including [***]) for contracts ceded thereunder; and (ii) each party to any such cession agreement shall have the right to terminate such agreement prospectively on a run-off basis on the second anniversary thereof and on each anniversary thereafter.

[Signature Page To Follow]

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IN WITNESS WHEREOF, the parties hereto have executed this Addendum No. 1 as of the day and year first above written.

	
		
	WATFORD RE LTD.

	 
	 

	By:
	/s/ John Rathgeber

	 
	Name: John Rathgeber

	 
	Title: CEO/Director

	 
	 

	WATFORD HOLDINGS LTD.

	 
	 

	By:
	/s/ John Rathgeber

	 
	Name: John Rathgeber

	 
	Title: CEO/Director

	 
	 

	ARCH UNDERWRITERS LTD.

	 
	 

	By:
	/s/ Nicolas Papadopoulo

	 
	Name: Nicolas Papadopoulo

	 
	Title: CEO

	 
	 

	Solely for the limited purposes set forth in Sections 2.08, 9.02(a)(iii), 12.07, and 12.13 of the Agreement:

	 
	 

	HIGHBRIDGE PRINCIPAL STRATEGIES, LLC

	 
	 

	By:
	/s/ Faith Rosenfeld

	 
	Name: Faith Rosenfeld

	 
	Title: Chief Administrative Officer

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Exhibit 10.18.1

ENDORSEMENT

Attached to and forming part of the QUOTA SHARE RETROCESSION AGREEMENT ("Agreement"), made as of the 1st day of January 2014, between ARCH REINSURANCE COMPANY, a Nebraska corporation (the "Company") and WATFORD RE LTD., a Bermuda domiciled insurance company (the "Retrocessionaire").

It is understood and agreed that effective 12:01 A.M., April 1, 2014 (the "First Endorsement Time"), subject to the approval of the Nebraska Department of Insurance, if required, this Agreement shall be modified as follows with respect to Contracts that are issued and/or renewed on or after the First Endorsement Time:

It is agreed that Exhibit A Underwriting Guidelines shall be replaced in entirety with Amended and Restated Exhibit A which is attached to this Agreement and which shall be incorporated into the Agreement.

ALL OTHER TERMS AND CONDITIONS OF THIS AGREEMENT REMAIN UNCHANGED.

IN WITNESS WHEREOF, the Company has caused this Endorsement to be executed by its duly authorized representative this 25th day of August, 2014

	
	
	ARCH REINSURANCE COMPANY

	/s/ Peder Moller

IN WITNESS WH EREOF, the Retrocessionaire has caused this Endorsement to be executed by its duly authorized representative this 25th day of August, 2014

	
	
	WATFORD RE LTD.

	/s/ John Rathgeber

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	Exhibit A

	(Amended and Restated)

Underwriting Guidelines

1.    Ceded Contracts shall have a minimum ROE of [***]%, calculated using the same methodology as the Company uses for risks assumed into its portfolio and the same modeling tools as the Company utilizes for its business. In making such calculations, the Company will use required capital consistent with the Company’s then-current model for rating agency requirements (presently based on Standard & Poor’s) using appropriate assumptions as respects the ceding fee under Article 9 of this Agreement, the Retrocessionaire Investment Return Rate and the Retrocessionaire’s then-current rating

“Retrocessionaire Investment Return Rate” means (i) with respect to Year 1, [***]% and (ii) with respect to each subsequent year, a rate to be mutually agreed between Retrocessionaire and the Company; provided, that such rate shall be determined not later than 60 days prior to the end of the prior calendar year and shall be not less than the average [***]-year U.S. treasury security rate for the prior ninety calendar days plus [***].

2.    Maximum per risk limit of $[***] for Retrocessionaire’s Ceded Percentage share.

3.    Maximum natural peril per event limit of $[***] for Retrocessionaire’s Ceded Percentage share.

4.    If the underlying reinsurance contract does not have a per risk limit but is structured on an aggregate basis, the Ceded Percentage of the aggregate limit of liability shall not exceed $10,000,000.

5.    Maximum terrorism limit of $[***] for Retrocessionaire’s Ceded Percentage share.

6.Maximum term of underlying reinsurance contract is 36 months. 

7.The authorized lines of business (“Authorized Business Lines”) under the Ceded 

Contracts will include:
		
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	Professional Lines (D&O, E&O, Medical Malpractice) 

		
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	Workers Compensation 

		
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	General Liability 

		
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	Umbrella Liability 

		
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	Employment Practices Liability 

		
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	Environmental Liability 

		
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	Auto 

		
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	International Motor and Liability 

		
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	Crop 

		
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	Property quota share 

		
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	Regional multi-line 

		
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	Aviation 

No Ceded Contract shall be outside of the Authorized Business Lines unless approved in writing by the Retrocessionaire's Chief Executive Officer or Chief Risk Officer.

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	International Motor and Liability 

		
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	Crop 

		
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	Property 

		
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	Regional multi-line 

		
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	Aviation 

No Ceded Contract shall be outside of the Authorized Business Lines unless approved in writing by the Retrocessionaire's Chief Executive Officer or Chief Risk Officer.

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Exhibit 10.18.2

ENDORSEMENT No. 2

Attached to and forming part of the QUOTA SHARE RETROCESSION AGREEMENT ("Agreement"), made as of the 1st day of January 2016, between ARCH REINSURANCE COMPANY, a Delaware corporation (the "Company") and WATFORD RE LTD., a Bermuda domiciled insurance company (the "Retrocessionaire").

It is understood and agreed that effective 12:01 A.M., January 1, 2016 (the "Second Endorsement Time"), subject to the approval of the Delaware Department oflnsurance, if required, this Agreement shall be modified as follows with respect to Contracts that are issued and/or renewed on or after the First Endorsement Time:

It is agreed that Exhibit A Underwriting Guidelines shall be replaced in entirety with the Second Amended and Restated Exhibit A which is attached to this Agreement and which shall be incorporated into the Agreement.

ALL OTHER TERMS AND CONDITIONS OF THIS AGREEMENT REMAIN UNCHANGED.

IN WITNESS WHEREOF, the Company has caused this Endorsement to be executed by its duly authorized representative this 26th day of February, 2016

	
	
	ARCH REINSURANCE COMPANY

	/s/ Jerome Halgan

IN WITNESS WH EREOF, the Retrocessionaire has caused this Endorsement to be executed by its duly authorized representative this 26th day of February, 2016

	
	
	WATFORD RE LTD.

	/s/ John Rathgeber

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	Exhibit A

	(Second Amended and Restated)

Underwriting Guidelines

1.    Ceded Contracts shall have a minimum ROE of [***]%, calculated using the same methodology as the Company uses for risks assumed into its portfolio and the same modeling tools as the Company utilizes for its business. In making such calculations, the Company will use required capital consistent with the Company’s then-current model for rating agency requirements (presently based on Standard & Poor’s) using appropriate assumptions as respects the ceding fee under Article 9 of this Agreement, the Retrocessionaire Investment Return Rate and the Retrocessionaire’s then-current rating

“Retrocessionaire Investment Return Rate” means (i) with respect to Year 1, [***]% and (ii) with respect to each subsequent year, a rate to be mutually agreed between Retrocessionaire and the Company; provided, that such rate shall be determined not later than 60 days prior to the end of the prior calendar year and shall be not less than the average [***]-year U.S. treasury security rate for the prior ninety calendar days plus [***].

2.    Maximum per risk limit of $[***] for Retrocessionaire’s Ceded Percentage share.

3.    Maximum natural peril per event limit of $[***] for Retrocessionaire’s Ceded Percentage share.

4.    If the underlying reinsurance contract does not have a per risk limit but is structured on an aggregate basis, the Ceded Percentage of the aggregate limit of liability shall not exceed $25,000,000.

5.    Maximum terrorism limit of $[***] for Retrocessionaire’s Ceded Percentage share.

6.Maximum term of underlying reinsurance contract is 36 months. 

7.The authorized lines of business (“Authorized Business Lines”) under the Ceded Contracts will include all lines of business written by the Company.

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