OneBeacon placed 'under review' by AM Best due to Intact acquisition

Ratings agency AM Best has placed OneBeacon Insurance Group and its subsidiaries "under review with positive implications" following its acquisition by Intact Financial Corporation.

Canada's largest provider of property/casualty insurance Intact  announced on May 2 that it has purchased OneBeacon from White Mountains for a cash consideration of approximately $1.7 billion.

According to the rating agency, the “under review with positive implications” status for the OneBeacon entities reflects the potential financial and operational benefits that will be derived from IFC being a larger, higher-rated organisation.

AM Best has also placed "under review with developing implications" the Long-Term ICR (issuer credit rating) of “bbb” of the group’s parent, Bermuda-based White Mountains Insurance Group, which owned 75.7 percent of OneBeacon's outstanding common shares.

The “under review with developing implications” status for White Mountains reflects the likelihood that AM Best will, in accordance with its policies and procedures, withdraw the ratings of White Mountains once the transaction is complete.

The ratings will remain under review pending the completion of the transactions, which is expected to close in the fourth quarter of 2017 subject to regulatory approval, and review by AM Best regarding IFC’s future operating plans for OneBeacon.

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