Atlantic Mutual closed the sale today of its subsidiary, Atlantic Specialty Insurance Company, and the renewal rights to select commercial insurance business, including the unearned premiums on the acquired book, to OneBeacon Insurance Company, after
receiving regulatory approval. The overall gross written premium for this book of business totals more than $400 million.
After announcing the signing of a binding letter of agreement on Dec. 5, 2003, the companies have been working to finalize terms and gain regulatory approval. Included in the agreement is a provision for the companies to share resources for a period of time to facilitate the seamless transfer of business for the companies’ independent agents and policyholders.
“With the close of this transaction, Atlantic Mutual can go forward as a well-capitalized writer of affluent personal lines that will achieve a premium-to-surplus ratio lower than one-to-one,” said Klaus Dorfi, chairman and CEO of Atlantic Mutual. “The growth of our affluent personal lines premium base accelerated to 8.7 percent in 2003, and we are looking forward to another strong year in 2004 based on our unique Atlantic Master Plan product and top-ranked claims and other customer services. Meanwhile, our commercial business represents a very complementary fit for OneBeacon, and we are confident that our commercial insurance division employees, agents, and policyholders should experience a smooth transition.”
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