CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 02, 2017 05:31 PM (EDT)
A.M. Best has removed from under review with positive implications and upgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating of A (Excellent) of Atlantic Specialty Insurance Company (Atlantic Specialty) (New York, NY) and its rated affiliates. Collectively, these companies are referred to as OneBeacon Insurance Group (OneBeacon).
Concurrently, A.M. Best has removed from under review with positive implications and upgraded the Long-Term ICRs to “bbb+” from “bbb”, and the Long-Term Issue Credit Rating (Long-Term IR) to “bbb+” from “bbb” on issued securities. The indicative Long-Term IRs on the shelf registrations of OneBeacon’s publicly traded parent, OneBeacon Insurance Group, Ltd. (OneBeacon Ltd.) (Hamilton, Bermuda) [NYSE:OB], and OneBeacon U.S. Holdings, Inc. (OneBeacon U.S.) (Delaware) have also been upgraded as indicated below. The outlook assigned to these Credit Ratings (ratings) is stable.
In addition, A.M. Best has removed from under review with developing implications and withdrawn the Long-Term ICR of “bbb” of the group’s ultimate parent, White Mountains Insurance Group, Ltd. (White Mountains) (Hamilton, Bermuda) [NYSE: WTM]. The withdrawal of these ratings upon transaction close is in accordance with A.M. Best policies and procedures.
These rating actions follow confirmation that White Mountains has closed on its planned sale of OneBeacon Ltd. to Intact Financial Corporation (IFC) [TSX: IFC].
The ratings upgrades of the OneBeacon Ltd. entities reflect the financial and operational benefits that will be derived from IFC’s position as a larger, higher-rated organization. A.M. Best will continue to monitor the integration of OneBeacon, Ltd, specifically regarding IFC’s future operating plans for OneBeacon Ltd.
The Long-Term ICRs have been upgraded to “a+” from “a” and the FSR of A (Excellent) affirmed with both ratings assigned a stable outlook for Atlantic Specialty Insurance Company and its following affiliates:
The following Long-Term IR has been removed from under review with positive implications, upgraded and assigned a stable outlook for OneBeacon U.S. Holdings, Inc.—
— upgraded to “bbb+” from “bbb” on $275 million 4.60% senior unsecured notes, due 2022
The following indicative Long-Term IRs under the shelf registration have been removed from under review with positive implications, upgraded and assigned a stable outlook:
OneBeacon U.S. Holdings, Inc. and OneBeacon Insurance Group, Ltd.—
— upgraded to “bbb+” from “bbb” on senior unsecured debt
— upgraded to “bbb” from “bbb-”on subordinated debt
— upgraded to “bbb-” from “bb+” on preferred stock
OneBeacon U.S. Holdings Trust I, II, III—
— upgraded to “bbb-” from “bb+” on preferred stock
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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