OneBeacon To Sell AutoOne Business
OneBeacon Insurance Group, Ltd announced that it has entered into a definitive agreement to sell its AutoOne business to Interboro Holdings, Inc.
OneBeacon formed AutoOne in 2001 to provide products and services to automobile assigned risk markets primarily in New York and New Jersey. AutoOne is part of OneBeacon’s Other Insurance Operations, which also include OneBeacon’s Runoff business. The sale does not impact OneBeacon’s ongoing Specialty Insurance Operations.
OneBeacon will transfer to the buyer AutoOne Insurance Company and AutoOne Select Insurance Company, which will contain the assets, liabilities (including loss reserves and unearned premium reserves), and the equity capital of the business, and will transfer substantially all of the AutoOne infrastructure including staff, systems and office space. The transaction is expected to close in the fourth quarter of 2011, subject to regulatory approvals. OneBeacon expects to record a charge of approximately $28 million pre-tax ($18 million after tax) in its third quarter financial statements reflecting the estimated loss on the sale of AutoOne.
Said OneBeacon CEO Mike Miller, “This transaction allows us to continue our focus on our higher performing specialty operations, while aligning AutoOne with an owner committed to serving the personal automobile insurance market.”
