One Beacon says it expects an after-tax charge of $101 million in the third quarter related to a deal to send its runoff business to an affiliate of Armour Group Holdings.
“The sale of our runoff business is the final step in our transformation to a pure specialty company,” says Mike Miller, OneBeacon's chief executive officer, in a statement. He says the sale will free up more than $100 million of capital.
Under the terms of the agreement with Armour—a Bermuda-based company that focuses on runoffs and other opportunities in the insurance and reinsurance industries—OneBeacon will transfer to Armour certain legal entities within the OneBeacon Group, which will contain assets, liabilities and capital supporting the runoff business.
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