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:

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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