Moody's upgrades OneBeacon

Moody's Investors Service said it upgraded the debt ratings of OneBeacon U.S. Holdings, Inc. to Baa2 from Baa3 following the closing of Intact Financial Corp.'s acquisition of OneBeacon for $1.7 billion.

As part of the same rating action, Moody's said it upgraded the insurance financial strength ratings of OneBeacon's U.S.-based insurance subsidiaries to A2 from A3.

The acquisition was funded by a combination of cash and newly issued debt and equity, Moody's noted.

This action completes a review for upgrade that began in May.

The outlook is stable.

The upgrade reflects OneBeacon's ownership by Intact Financial, the leading Canadian property-casualty insurer, Moody's said, as well as Intact's strong credit profile and strategic commitment to the North American insurance market.

The upgrade also considers elements of implicit support from Intact for OneBeacon, the agency said.

OneBeacon is now part of a consolidated group with a prominent market presence in the Canadian insurance marketplace with annualized premiums in excess of C$10 billion across a broad range of commercial, personal and specialty lines, Moody's said.

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