Best Affirms OneBeacon Group’s Ratings; Outlook Stable

October 11, 2011

A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A’ (Excellent) and the issuer credit ratings (ICR) of “a” of the operating companies comprising Minnesota-based OneBeacon Insurance Group. Best also, affirmed the ICR of “bbb” of OneBeacon’s publicly traded parent, Bermuda-based OneBeacon Insurance Group, Ltd., and its intermediate holding company, OneBeacon U.S. Holdings, Inc.

In addition Best affirmed the ICR of “bbb” and debt ratings of the group’s ultimate parent, Bermuda-based White Mountains Insurance Group, Ltd., as well as the FSR of ‘B++’ (Good) and ICR of “bbb+” of Philadelphia-based Potomac Insurance Company, which currently is in run off.

The outlook for all of the the above ratings is stable.

Best explained that the affirmation of OneBeacon’s ratings “reflects its strong risk-adjusted capitalization and solid earnings through its solid underwriting and operating performance. The ratings also consider the financial flexibility of OneBeacon U.S. and OneBeacon Ltd. These positive rating factors are partially offset by OneBeacon’s historical adverse development on its run-off operations.

“The affirmation of White Mountains’ ratings acknowledges its strong financial flexibility and the solid operating results generated through its operating subsidiaries.”

The FSR of ‘A ‘(Excellent) and ICR of “a” have been affirmed for OneBeacon Insurance Group and its following members: Atlantic Specialty Insurance Company • AutoOne Insurance Company • AutoOne Select Insurance Company • The Camden Fire Insurance Association • The Employers’ Fire Insurance Company • Essentia Insurance Company • Homeland Insurance Company of New York • The Northern Assurance Company of America • OneBeacon America Insurance Company • OneBeacon Insurance Company • OneBeacon Midwest Insurance Company • Pennsylvania General Insurance Company • Traders & General Insurance Company

The following debt rating has been affirmed:
OneBeacon U.S. Holdings, Inc.—
— “bbb” on $270 million 5.875 percent senior unsecured notes, due 2013

The following indicative ratings under the shelf registration have been affirmed:
OneBeacon U.S. Holdings, Inc. and OneBeacon Insurance Group, Ltd.—
— “bbb” on senior unsecured debt
— “bbb-” on subordinate debt
– – “bb+” on preferred stock

OneBeacon U.S. Holdings Trust I, II, III—
– “bb+” on preferred stock

Source: A.M. Best

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