Boston-based Liberty Mutual Group announced that it was in the final stages of concluding an agreement with OneBeacon to set up a partnership arrangement “to transfer OneBeacon’s property and casualty business and staff and operations in 42 states” to Liberty.
While the deal is subject to the conclusion of a definitive agreement, Liberty plans to begin transferring business operations and staff immediately. It will assume all new and renewal business effective November 1, 2001. Eventually it will integrate all of OneBeacon’s $1.5 billion book of personal and commercial accounts and its 2600 employees into its Regional Agency Markets business unit.
Under the plan OneBeacon, a wholly owned subsidiary of Bermuda-based White Mountains Insurance Group, Ltd., would “continue to participate in the future results of this and other Liberty Mutual business for up to five years through reinsurance agreements.”
Both Liberty Mutual and OneBeacon, which is particularly strong in New England, New York and New Jersey, concentrate on business from independent Agents. Liberty CEO Edmund F. Kelly stated in the announcement that, “This partnership strengthens our position in the independent agency distribution system.” It gives Liberty a “significant presence in the agency market in all regions,” he added.
OneBeacon will continue to operate in selected specialty businesses, including Folksamerica Re, International Marine Underwriters and others.
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