OneBeacon Credit Ratings Placed Under Review
A.M. Best has placed under review with positive implications the Financial Strength Rating [FSR] of A [Excellent] and the Long-Term Issuer Credit Ratings of “a” of Atlantic Specialty Insurance Company [Atlantic Specialty] [New York, NY] and its rated affiliates. Collectively, these companies are referred to as OneBeacon Insurance Group.
A statement from the ratings agency said, “Concurrently, A.M. Best has placed under review with positive implications the Long-Term ICRs of “bbb”, the Long-Term Issue Credit Ratings [Long-Term IR] on issued securities, and the indicative Long-Term IRs on the shelf registrations of OneBeacon’s publicly traded parent, OneBeacon Insurance Group, Ltd. [OneBeacon Ltd.] [Hamilton, Bermuda] [OB], and OneBeacon U.S. Holdings, Inc. [OneBeacon U.S.] [Delaware].
“In addition, A.M. Best has placed under review with developing implications the Long-Term ICR of “bbb” of the group’s ultimate parent, White Mountains Insurance Group, Ltd. [White Mountains] [Hamilton, Bermuda] [WTM].
“These Credit Rating [rating] actions follow the recent announcement that White Mountains has entered into a definitive agreement to vote its shares of OneBeacon Ltd. in favor of the sale of OneBeacon Ltd. to Intact Financial Corporation [IFC]. The transaction is expected to close in the fourth quarter of 2017 subject to regulatory approval.
“The under review with positive implications status for the OneBeacon Ltd. entities reflects the potential financial and operational benefits that will be derived from IFC being a larger, higher-rated organization. The ratings will remain under review pending the completion of the transactions and review by A.M. Best regarding IFC’s future operating plans for OneBeacon Ltd.
“The under review with developing implications status for White Mountains reflects the likelihood that A.M. Best will, in accordance with its policies and procedures, withdraw the ratings of White Mountains once the transaction is complete.”
