S&P: White Mountains, OneBeacon to developing

S&P said it affirmed the BBB long-term counterparty credit rating on White Mountains Insurance Group Ltd. (WTM) and the BBB- long-term counterparty credit and A- financial strength ratings on OneBeacon Insurance Group Ltd. (OB) and its operating subsidiaries.

The outlooks on both entities were revised to developing from stable upon the announcement that Intact Financial Corp. (IFC) will be acquiring OneBeacon.

"The developing outlook for WTM follows the announcement that it has entered into a definitive agreement to vote its shares in favor of the sale of OB to Intact" S&P credit analyst Brian Suozzo said in a news release.

White Mountains’ cash proceeds from the transaction will be about $1.3 billion. The agency expects the transaction to close in the fourth quarter, pending shareholder and regulatory approvals.

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