OneBeacon To Sell Commercial Book To Tower

NU Online News Service, Sept. 16, 12:55 p.m.EDT?Boston-based OneBeacon Insurance said it plans to sellthe renewal rights to a portion of its commercial business to TowerInsurance Group, based in New York City.[@@]

OneBeacon, a subsidiary of Bermuda-based White MountainsInsurance Group, Ltd., said the deal would not involve thecommercial business it acquired from Atlantic Mutual New Yorkearlier this year.

OneBeacon said the transition will impact approximately $110million of premiums and is expected to begin with Dec.1^st renewals.

In addition to the Atlantic Mutual commercial business, thecompany said it also plans to retain its own segmentedmiddle-markets book of business, all personal lines, and allspecialty operations, including International Marine Underwritersand AutoOne in New York state. It would not impact business in anyother state.

John Cavoores, president and chief executive officer ofOneBeacon, said in a statement: "Our real strength in New York hasbeen in specialty and personal lines. Through the AtlanticSpecialty acquisition, we added a great team offering segmentedmiddle-market business, which, along with OnePac for smallbusiness, has become our primary focus for commercial lines. Agentstransferred to Tower will be well served by the underwritingappetite of our friends at Tower Group."

OneBeacon purchased the Atlantic Mutual book earlier this yearas Atlantic Mutual refocused its business on affluent personallines. The purchase involved the hiring of 300 Atlantic Mutualemployees by OneBeacon at the time.