Sovereign & OneBeacon Form Alliance

A Canadian insurer and Boston-based carrier have formed a strategic alliance that would allow the U.S. firm to introduce some commercial lines policies in Canada.

Sovereign General Insurance Company, headquartered in Calgary, Alberta, Canada, and Boston-based OneBeacon have signed a strategic alliance agreement that will introduce some commercial lines business under Sovereign paper. The initial business will target midsized technology companies.

According to a statement, while the insurance business will be written on Sovereign's name, both companies will share equally in the underwriting results of the policies through a reinsurance arrangement.

The companies said the alliance does not in itself require any specific revenue or performance targets between the two. However, both insurers said they are confident that this venture will prove to be a valuable solution to Canadian market needs.

In statements, Peter Parkin, Sovereign's chief operating officer, said the "alliance was a natural" because the two have been helping one another's brokers on cross-boarder opportunities for a time.

"We quickly realized the similarities in our business philosophy and it only seemed natural we work together to explore further opportunities," he said.

Drew Carnase, OneBeacon's senior vice president of commercial lines, said, "Partnering with Sovereign enables OneBeacon to offer our custom products that have been successful in the U.S. to Canadian businesses."