OneBeacon placed 'under review' by AM Best due to Intact acquisition
Ratings agency AM Best has placed OneBeacon Insurance Group and its subsidiaries "under review with positive implications" following its acquisition by Intact Financial Corporation.
Canada's largest provider of property/casualty insurance Intact announced on May 2 that it has purchased OneBeacon from White Mountains for a cash consideration of approximately $1.7 billion.
According to the rating agency, the “under review with positive implications” status for the OneBeacon entities reflects the potential financial and operational benefits that will be derived from IFC being a larger, higher-rated organisation.
AM Best has also placed "under review with developing implications" the Long-Term ICR (issuer credit rating) of “bbb” of the group’s parent, Bermuda-based White Mountains Insurance Group, which owned 75.7 percent of OneBeacon's outstanding common shares.
The “under review with developing implications” status for White Mountains reflects the likelihood that AM Best will, in accordance with its policies and procedures, withdraw the ratings of White Mountains once the transaction is complete.
The ratings will remain under review pending the completion of the transactions, which is expected to close in the fourth quarter of 2017 subject to regulatory approval, and review by AM Best regarding IFC’s future operating plans for OneBeacon.
Today’s stories
Allianz Australia reveals new CEO amid reshuffle
Investment returns drive Third Point Re to profit in Q1
Severe wind and hail storm cause underwriting loss at Liberty Mutual in Q1
Lloyd's and Zurich representatives join Australia’s Insurance Council Board
Assured Guaranty Q1 profit jumps on acquisition, business improvement
HDI hires from Liberty Mutual to strengthen UK and Ireland claims team
Diekmann replaces Perlet as Allianz chairman
Ryan Specialty Group hires technology leader from Aon
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
