NU Online News Service, Feb. 06, 11:46 a.m. EST

Bermuda-based OneBeacon Insurance Group Ltd. said fourth quarter net income fell to $23 million compared to $72 million for the same period in 2009.

For the year, net income was $118 million compared to $342 million in 2009 as the company continues its transformation into a specialty insurance company.

Early in 2010 OneBeacon sold its personal lines business to Tower Group. The company sold the renewal rights to its non-specialty commercial lines business to The Hanover Insurance Group Inc. late in 2009.

Fourth quarter net written premiums were $233 million, a drop from $436 million for the fourth quarter of 2009 due to the impact of OneBeacon’s sale of the non-specialty commercial lines business and traditional personal lines business.

Chief Executive Officer Mike Miller said during a conference call with financial analysts that the severe winter weather in the Northeast will not be a significant event for the company—“Nothing near to the extent of previous years,” he said. The company’s catastrophe exposure has been significantly reduced since the Tower and Hanover transactions, he added.

Asked about the specialty market in general, Mr. Miller said that on aggregate pricing was “slightly towards flats to slightly up” depending on the segment. Energy-related and professional liability, especially directors and officers, is up, he said.

OneBeacon has noticed “nothing notable” in frequency trends, nor has it encountered anything different in terms of severity, Mr. Miller said.

Market conditions affected the company’s existing core business. Premiums for specialty lines were $216 million for the quarter compared to $222 million in 2009. For the year, specialty lines' net written premiums saw a 4 percent increase to $988 million, compared to 2009.

At the start of this year OneBeacon rebranded its entertainment, sports and leisure business as OneBeacon Entertainment.

Special Reports /

Sales of Personal, Non-Specialty Commercial Impact OneBeacon Profits

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