Tower Group Inc. has completed its acquisition of the personal lines business of OneBeacon Insurance Group for $167 million.
The completed transaction includes the acquisition by Towers of Massachusetts Homeland Insurance Co., York Insurance Co. of Maine and two management companies. The management companies are the attorneys-in-fact for Adirondack Insurance Exchange, a New York reciprocal insurer, and New Jersey Skylands Insurance Association, a New Jersey reciprocal insurer, which in turn owns a New Jersey domiciled stock insurance subsidiary, New Jersey Skylands Insurance Co. Tower has also purchased the surplus notes issued by the two reciprocal insurers.
OneBeacon’s Personal Lines Division writes and manages private passenger automobile, homeowners and personal package business in the northeastern United States. It has offices in Canton, Mass., South Portland, Me. and Williamsville, N.Y.
The transaction was originally announced on Feb. 2.
Michael Lee, president and CEO of Tower, said his company has been working on a personal lines strategy and integration plan since the February announcement. “We are confident in our ability, supported by our new employees and agents, to successfully execute our plan and meet our financial objectives while delivering quality personal lines products and services to our policyholders,” Lee said.
Net written premiums for the affected books totaled approximately $420 million for the year ended Dec. 31, 2009.
OneBeacon said it will include the transaction in its third quarter financial statements, reflecting the sale’s July 1 completion date. The company expects to disclose the estimated net gain on the sale when it issues its second quarter results on July 30.
“The sale of personal lines is a major milestone in our transformation to a specialty-focused company,” said OneBeacon CEO Mike Miller.
Tower Group, Inc. insurance company subsidiaries offer insurance products to individuals and small to medium-sized businesses through retail and wholesale agents and specialty business through program underwriting agents.
OneBeacon Insurance Group’s underwriting companies offer specialty insurance products through independent agents, regional and national brokers, and wholesalers. The company’s businesses include OneBeacon Professional Insurance, International Marine Underwriters, Entertainment Brokers International Insurance Services, Specialty Accident and Health, OneBeacon Government Risks, OneBeacon Energy Group, A.W.G. Dewar (tuition refund), collector cars and boats written through Hagerty Insurance Agency, Technology, Financial Services, OneBeacon Specialty Property, Property and Inland Marine, and AutoOne.
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