No that's not good, that's extremely hot for that cpu and around 100c it will start throttling to try and prevent damage from overheating. It sounds like it's either not connected properly or not mounted very well. Make sure and go through the installation instructions to make sure the pump is working and check the cooling fans are spinning.
Try lightly touching the waterblock/pump with your finger and see if you can feel it vibrating as a sign the pump's working. If not and if you've gone through the instructions and connected the cables properly you may need to return it as defective.
Also try removing the water block from the cpu, cleaning both the pump/block and cpu ihs with a lint free cloth and some isopropyl rubbing alcohol to get it nice and clean. Reapply thermal paste using just a small pea sized dot and try remounting it. Be sure to tighten the mounting screws just a little at a time in an "X" shape, ie top left, bottom right, top right, bottom left and go back and forth a turn or two at a time to ensure it's mounted nice and flat. Tightening each screw one at a time can get it mounted crooked making poor contact.
Have a read here for normal temp ranges.
http://www.tomshardware.com/forum/id-1800828/intel-temperature-guide.html