Fitch Gives Atlantic Specialty An Upgrade

Fitch Gives Atlantic Specialty An Upgrade

NU Online News Service, April 7, 3:15 p.m. EDT?Fitch Ratings said it has upgraded the insurer financial strength of Atlantic Specialty Insurance Company to "A" from "triple-B-minus," following its acquisition by OneBeacon Insurance Company, a unit of Bermuda-based White Mountains Insurance Group, Ltd.[@@]

This rating action, Fitch said, now brings Atlantic Specialty's rating in line with the "A" financial strength rating of OneBeacon's intercompany pool. Atlantic Specialty, Fitch said, has been added as a pooled participant of OneBeacon, retroactive to Jan. 1.

The outlook for Atlantic Specialty is "Stable" following the rating upgrade, Fitch stated.

Fitch noted that the sale of Atlantic Specialty by New York City-based Atlantic Mutual is part of Atlantic Mutual's effort to boost its bottom line and streamline its businesses.

Last December, the Boston-based OneBeacon Insurance first announced that it is acquiring Atlantic Mutual's Atlantic Specialty Insurance, as well as the renewal rights to the carrier's commercial insurance business, including the unearned premiums on the books.

Earlier, in October 2003, Atlantic Mutual had also sold off the renewal rights for its commercial lines inland marine and ocean cargo businesses, to Hartford, Conn.-based Travelers Property Casualty, now part of The St. Paul Travelers.

OneBeacon Insurance provides personal auto and homeowners, commercial, and specialty insurance, including agricultural and marine coverage.