A.M. Best Affirms Credit Ratings Of White Mountains Insurance Group, Ltd., OneBeacon Insurance Group, Ltd. And U.S. Subsidiaries

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:

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