New York-based Tower Insurance Group has agreed to purchase the renewal rights on most of the New York commercial business OneBeacon Insurance held prior to OneBeacon’s buying Atlantic Mutual’s book of business policies earlier this year.
The transition involves approximately $110 million of premiums and is expected to begin with December 1, 2004 renewals. OneBeacon will retain the commercial business it acquired from Atlantic Mutual and will also retain its own segmented middle-markets book of business, all personal lines, and all specialty operations, including International Marine Underwriters (IMU) and AutoOne.
OneBeacon Insurance, a subsidiary of White Mountains Insurance Group, Ltd. (NYSE: WTM), said the transaction would not impact its business in any other states.
John Cavoores, president and chief executive officer of OneBeacon, said the deal allows OneBeacon to focus its commercial lines efforts in New York.
“Our real strength in New York has been in specialty and personal lines. Through the Atlantic Specialty acquisition, we added a great team offering segmented middle-market business, which, along with OnePac for small business, has become our primary focus for commercial lines. Agents transferred to Tower will be well served by the underwriting appetite of our friends at Tower Group.”
Tower Insurance Company of New York is a subsidiary of Tower Group Companies. It offers property, general liability, workers’ compensation, commercial auto, and commercial umbrella coverage for mercantile and service, restaurant, construction and real estate industries primarily in New York City and New York State. It has also expanded into personal lines by offering homeowners, dwelling fire, and family dwelling policies.
Tower Insurance Company of New York is in the process of expanding into other states, including New Jersey and Pennsylvania. Currently, the company holds a “B++” rating (Very Good) by A.M. Best.
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