ONEBEACON INSURANCE GROUP, LTD. FILES (8-K) Disclosing Other Events, Financial Statements and Exhibits

ITEM 8.01 OTHER EVENTS

On October 17, 2012, OneBeacon Insurance Group, Ltd. (the "Company") announced that its subsidiary OneBeacon Insurance Group LLC has entered into definitive agreements to terminate its exclusive underwriting arrangement with Hagerty Insurance Agency ("Hagerty") and sell Essentia Insurance Company ("Essentia"), an indirect wholly owned subsidiary of the Company, to Markel Corporation ("Markel"). The Company expects to record a $23 million pre-tax (or $15 million after tax) gain on the sale at closing, which is expected to occur in the first quarter of 2013. The transaction is subject to customary closing conditions, including the receipt of all required regulatory approvals.

In connection therewith, the Company and Hagerty Insurance Agency have agreed to terminate their existing relationship pursuant to which the Company, through Essentia, has written the collector car and boat business. The Company will cease writing new and renewal policies with respect to the collector car and boat business line on Essentia effective upon the closing of the sale of Essentia to Markel. The Company through one of its insurance company subsidiaries will continue to administer the collector car and boat business policies written prior to closing of the sale of Essentia to Markel through a reinsurance arrangement.

  ITEM 9.01        FINANCIAL STATEMENTS AND EXHIBITS    (d)  Exhibits    Exhibit 99.1      Press Release issued by the Company dated October 17, 2012                                           2 

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