Moody’s reviews OneBeacon

Moody's Investors Service said it placed the Baa3 senior unsecured ratings of OneBeacon U.S. Holdings, Inc. (guaranteed by OneBeacon Insurance Group, Ltd.) and the A3 insurance financial strength ratings of OneBeacon U.S. Group's insurance subsidiaries on review for upgrade following the company's announcement that it entered into a definitive agreement to be acquired by Intact Financial Corp. (senior unsecured at Baa1) for $1.7 billion.

Intact will acquire from White Mountains Insurance Group its 76% interest in OneBeacon Insurance Group, Ltd. as well as the 24% public float, and will fund the transaction with a combination of cash and newly issued debt and equity.

The transaction is expected to close in the fourth quarter of 2017, and is subject to shareholder and regulatory approvals.

Moody’s said the review was prompted by OneBeacon's prospective alignment with an established leader in the property-casualty insurance marketplace, by Intact's strong credit profile and by consideration of elements of both implicit and explicit prospective support from Intact for OneBeacon. OneBeacon would be part of a larger, more diversified and highly profitable property-casualty insurance organization with strong operating and financial disciplines.

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