Atlantic Mutual Sells A Book :CORRECTED
By Daniel Hays
NU Online News Service, April 1, 1:55 p.m. EST?Atlantic Mutual said yesterday it completed the sale of renewal rights to its commercial insurance business, and its specialty operation to OneBeacon Insurance Company, transferring a total of $400 million in gross written premium.[@@]
On Dec. 5, 2003, the two firms signed a letter of agreement that included a provision that they would share resources for a period of time to facilitate the transfer of business. Peter G. Scott, a spokesperson for New York-based Atlantic said that sharing of systems and some personnel could be for six months or longer.
A spokesperson for Boston-based OneBeacon, Carmine Duarte said that 300 of the Atlantic commercial insurance staff, as of today, were OneBeacon employees. She said Atlantic's personnel at its Madison, N.J. facility would move to OneBeacon offices in the adjoining municipality of Florham Park, N.J.
Additional staff, she said will work for OneBeacon out of Atlantic Mutual's Roanoke, Va. facility a team will be under the interim services agreement.
Mr. Scott said other staff would continue with Atlantic Mutual working for its personal lines operation, and that some claims staff would go to work for a third-party provider doing Atlantic commercial business placed in runoff.
Klaus Dorfi, chairman and chief executive officer of Atlantic Mutual, said closing the transaction meant his company could go forward as a well-capitalized writer of affluent personal lines that will achieve a premium-to-surplus ratio lower than one-to-one."
Mr. Dorfi said, in 2003, the company's personal lines premium base had grown 8.7 percent, and it anticipates continued strong growth this year.
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