OneBeacon: $11.15 Book Value Per Share
Bermuda-domiciled OneBeacon Insurance Group, Ltd. today [Apr. 29] reported book value per share of $11.15, an increase of 6.9 percent for the first quarter, including dividends.
OneBeacon CEO Mike Miller said, “I am very pleased with our strong start to the year. Our loss ratio continues to reflect our underwriting discipline, and our expense ratio was a couple of points lower than our current annualized run rate.
“While net written premiums were down due to our exit from the collector car and energy businesses, we grew our ongoing business by two percent. We are making progress on the sale of the runoff business that we expect to close later this year. As we look out into the year, our newer segments are well positioned to make contributions, our balance sheet remains strong and we will continue to look for new specialty opportunities.”
For the first quarter of 2013, the company reported $69 million of comprehensive income, or $0.72 per share, compared to comprehensive income of $44 million, or $0.46 per share, for the first quarter of 2012. The first quarter 2013 operating income was $49 million, or $0.52 per share, compared to $34 million, or $0.36 per share for the first quarter of last year. Included in the first quarter comprehensive income and operating income is a $15 million after-tax gain, or $0.16 per share, from the previously announced sale of Essentia Insurance Company.
Insurance Operations
OneBeacon’s combined ratio was 88.3 percent for the first quarter of 2013 compared to 89.1% for the first quarter of 2012. The decrease in the combined ratio in the quarter was primarily due to lower acquisition expenses associated with the exit from the collector car and boat business as of January 1, 2013, partially offset by a slight increase in non-catastrophe losses. The first quarters of 2013 and 2012 each included 1 point of favorable loss reserve development.
First quarter net written premiums were $265 million, a decrease of 13% compared to the first quarter of 2012, which totaled $303 million. The variance reflects a $42 million decline related to the company’s exit from the collector car and boat and energy businesses. Excluding the premiums written in the first quarter of 2012 by the exited businesses, first quarter 2013 net written premiums increased by 2%.
Investment Results
OneBeacon’s first quarter total return on invested assets was 1.5% compared to 1.7% for the first quarter of 2012. These pre-tax results included net realized and unrealized investment gains of $28 million and net investment income of $9 million in 2013, compared to net realized and unrealized investment gains of $30 million and net investment income of $15 million for the first quarter of 2012. The average market value of invested assets was $2.3 billion in the first quarter of 2013 as compared to $2.7 billion in the first quarter of 2012.
Domiciled in Bermuda, OneBeacon Insurance Group, Ltd. is a holding company that is publicly traded on the New York Stock Exchange under the symbol “OB.” OneBeacon’s underwriting companies offer a range of specialty insurance products sold through independent agencies, regional and national brokers, wholesalers and managing general agencies.
OneBeacon’s solutions target ocean and inland marine; entertainment, sports and leisure; group accident; public entities; technology; tuition refund; professional liability; environmental; excess property; programmes; and commercial surety.
