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FOR IMMEDIATE RELEASE
OLDWICK - JULY 10, 2014 01:59 PM (EDT)
A.M. Best has assigned indicative ratings of "bbb" to senior unsecured debt, "bbb-" to subordinated debt, and "bb+" to preferred stock of OneBeacon Insurance Group, Ltd. (OneBeacon Ltd.) (Hamilton, Bermuda) [NYSE:OB] and OneBeacon U.S. Holdings, Inc. Concurrently, A.M. Best has assigned an indicative rating of "bb+" to preferred stock of OneBeacon U.S. Holdings Trust I, II, and III. These securities, which may be issued under a recently filed $1 billion universal shelf registration, effective June 26, 2014, replace OneBeacon Ltd.'s previous shelf, which expired June 30, 2014. The outlook assigned to these ratings is stable.
White Mountains Insurance Group, Ltd. (Hamilton, Bermuda) [NYSE: WTM] owns approximately 75% of OneBeacon Ltd., as of March 31, 2014. The indicative ratings reflect the modest financial leverage of OneBeacon Ltd., which had adjusted debt-to-tangible capital of 19.7%, as of March 31, 2014.
OneBeacon Ltd.'s current financial strength and issuer credit ratings reflect its strong operating earnings over the past five years, along with its solid risk-adjusted capitalization.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provide a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.