A.M. Best Affirms Credit Ratings of White Mountains Insurance Group, Ltd., OneBeacon Insurance Group, Ltd. and U.S. Subsidiar...
November 15 2016 - 10:58AM
Business Wire
A.M. Best has affirmed the Financial Strength Rating
(FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings
(Long-Term ICRs) of “a” of Atlantic Specialty Insurance
Company (Atlantic Specialty) (New York, NY) and its four U.S.
reinsured affiliates, collectively referred to as OneBeacon
Insurance Group (OneBeacon).
Additionally, A.M. Best has affirmed the Long-Term ICRs of
“bbb”, the Long-Term Issue Credit Ratings (Long-Term IR) on
currently issued securities and the indicative Long-Term IRs on the
shelf registrations of OneBeacon’s publicly traded parent,
OneBeacon Insurance Group, Ltd. (OneBeacon Ltd.) (Hamilton,
Bermuda) [NYSE:OB] and OneBeacon U.S. Holdings, Inc.
(OneBeacon U.S.) (Delaware), an intermediate holding company that
issues securities in the United States.
Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb”
of the group’s ultimate parent, White Mountains Insurance Group,
Ltd. (White Mountains) (Hamilton, Bermuda) [NYSE:WTM]. The
outlook of all of these Credit Ratings (ratings) is stable.
The ratings reflect OneBeacon’s sound level of risk-adjusted
capitalization, solid earnings (on average) derived through periods
of favorable underwriting and operating performance, as well as the
financial flexibility afforded by OneBeacon U.S. and OneBeacon
Ltd.
Offsetting the positive factors is adverse development of loss
reserves (most notably in 2014), payment of shareholder dividends
which has constrained surplus growth, and elevated level of equity
investments that has the potential to add volatility to OneBeacon’s
earnings despite being closely managed.
The affirmation of the ratings of OneBeacon Ltd., OneBeacon U.S.
and White Mountains acknowledges the companies’ strong financial
flexibility and operating performance generated through their
operating subsidiaries. The financial leverage and coverage ratios
remain within A.M. Best’s guidelines for the current rating
levels.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been
affirmed for Atlantic Specialty Insurance Company and
its following affiliates:
- Homeland Insurance Company of New
York
- Homeland Insurance Company of
Delaware
- OBI National Insurance
Company
- OBI America Insurance
Company
The following Long-Term IR has been affirmed:
OneBeacon U.S. Holdings, Inc.—
-- “bbb” on $275 million 4.60% senior unsecured notes,
due 2022
The following indicative Long-Term IRs under the shelf
registration have been affirmed:
OneBeacon U.S. Holdings, Inc. and OneBeacon Insurance
Group, Ltd.—
-- “bbb” on senior unsecured debt
-- “bbb-”on subordinated debt
-- “bb+” on preferred stock
OneBeacon U.S. Holdings Trust I, II, III—
-- “bb+” on preferred stock
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20161115006243/en/
A.M. BestAdrienne TortorielloSenior Financial
Analyst+1 908 439 2200, ext.
5088adrienne.tortoriello@ambest.comorGreg
WilliamsSenior Director+1 908 439 2200, ext.
5815greg.williams@ambest.comorChristopher
SharkeyManager, Public Relations+1 908 439 2200, ext.
5159christopher.sharkey@ambest.comorJim
PeavyDirector, Public Relations+1 908 439 2200, ext.
5644james.peavy@ambest.com
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