OneBeacon Insurance sells personal lines business to Tower Group

Jul 06, 2010 (Datamonitor via COMTEX) -- OneBeacon Insurance Group it has completed the sale of its traditional personal lines business to Tower Group.

The transaction included two insurance companies containing the personal lines business, and in relation to the reciprocal insurance exchanges which write business in New York and New Jersey.

As consideration, based on an estimated June 30, 2010 closing balance sheet, OneBeacon received approximately $167 million, which represents the estimated statutory surplus of the reciprocal insurance exchanges, the GAAP equity in the insurance companies and attorneys-in-fact, plus $32.5 million.

OneBeacon will include the transaction in its third quarter financial statements, reflecting the sale's July 1, 2010 completion date. The company expects to disclose the estimated net gain on the sale when it issues its second quarter results on July 30, 2010. The final purchase price, proceeds from the sale and the net gain are subject to adjustment, based on a final June 30, 2010 closing balance sheet.

Mike Miller CEO of OneBeacon, said: "The sale of personal lines is a major milestone in our transformation to a specialty-focused company. Our ongoing specialty businesses, clear focus and strong capital position create exciting prospects for OneBeacon. We look forward to building upon our strong foundation to deliver enhanced shareholder value."

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