NU Online News Service, Aug. 31, 1:37 p.m. EDT
Bermuda-based OneBeacon Insurance Group, Ltd. says it will sell its AutoOne business to Interboro Holdings, Inc.
OneBeacon formed AutoOne in 2001 to provide products and services to automobile assigned risk markets primarily in New York and New Jersey.
OneBeacon says the transaction includes AutoOne Insurance Co. and AutoOne Select Insurance Co., which will contain the assets, liabilities (including loss reserves and unearned premium reserves), and the equity capital of the business.
The AutoOne infrastructure including staff, systems and office space is part of the transaction, which is expected to close in the fourth quarter of 2011, subject to regulatory approvals.
OneBeacon says it expects to record a charge of approximately $28 million pre-tax ($18 million after tax) in its third quarter financial statements reflecting the estimated loss on the sale of AutoOne.
In a statement OneBeacon Chief Executive Officer Mike Miller says the transaction "allows us to continue our focus on our higher performing specialty operations, while aligning AutoOne with an owner committed to serving the personal automobile insurance market."
According to Highline Data, a member of Summit Business Media, which also owns National Underwriter, Interboro Insurance, based in Mineola, N.Y., reported net premiums written of more than $42 million in 2010 and net income of $4.47 million.
The company's primary business is homeowners insurance in the New York City and Long Island area.
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