NU Online News Service, April 21, 3:51 p.m. EDT
OneBeacon Insurance Group, Ltd. in Bermuda said its first-quarter estimated combined ratio will be 112, including approximately $44 million, or 10 points, of mostly U.S.-based pretax catastrophe losses.
The property and casualty insurer's losses were primarily associated with March Northeast U.S. storms. Of the estimated $44 million of current accident year catastrophe losses, roughly $10 million were incurred in its ongoing specialty lines business, the firm said.
In 2009 the first quarter combined ratio was 94 or 18 points better than the projection announced today.
OneBeacon estimated that its first-quarter specialty lines GAAP combined ratio will be 97 percent, including 4 points of catastrophe losses.
It explained that the majority of the catastrophe losses were incurred in businesses the company is exiting, including $21 million in non-specialty commercial lines runoff business and $13 million in traditional personal lines, which the company agreed to sell in February.
The sale of the personal lines business is expected to close before June 30. In December 2009, the company sold its non-specialty commercial lines business in a renewal rights transaction.
Actual first-quarter results will be included in the company's quarterly report on Form 10-Q, which is expected to be available on the company's Web site (www.onebeacon.com) on April 29.
OneBeacon will review its first-quarter 2010 results via live webcast at 10:00 a.m. Eastern Time on April 29, following its earnings release earlier that morning.
The company's specialty businesses include OneBeacon Professional Insurance, International Marine Underwriters, Entertainment Brokers International Insurance Services, Specialty Accident and Health, OneBeacon Government Risks, OneBeacon Energy Group, A.W.G. Dewar (tuition refund), collector cars and boats written through Hagerty Insurance Agency, OneBeacon Technology Group, OneBeacon Financial Services, OneBeacon Specialty Property, and Property and Inland Marine.
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