“The sale of personal lines is a major milestone in our transformation to a specialty-focused company,” OneBeacon CEO Mike Miller said in the statement. “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.”
The transaction, which was announced Feb. 2, 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, the two managing attorneys-in-fact and the two surplus notes issued to OneBeacon, according to a OneBeacon statement.
Net written premiums for the affected books totaled about $420 million last year.
As consideration, based on an estimated June 30 closing balance sheet, OneBeacon received about $167 million, which represents the estimated statutory surplus of the reciprocal insurance exchanges (as consideration for surplus notes issued by the exchanges), the GAAP equity in the insurance companies and attorneys-in-fact, plus $32.5 million.