OneBeacon Agrees to Sell AutoOne Business

OneBeacon Insurance Group, Ltd. OB today announced that it has entered into a definitive agreement to sell its AutoOne business to Interboro Holdings, Inc. OneBeacon will transfer to the buyer AutoOne Insurance Company and AutoOne Select Insurance Company, which will contain the assets, liabilities (including loss reserves and unearned premium reserves), and the equity capital of the business, and will transfer substantially all of the AutoOne infrastructure including staff, systems and office space. The transaction is expected to close in the fourth quarter of 2011, subject to regulatory approvals. OneBeacon 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.