Entertainment Brokers International

OneBeacon Reports $15.03 Book Value Per Share
2/3/2010 9:44:00 AM
HAMILTON, Bermuda, Feb 03, 2010 /PRNewswire via COMTEX/ -- OneBeacon Insurance Group, Ltd (NYSE: OB) today reported book value per share of $15.03, an increase of 5.5% for the fourth quarter and 30.6% through twelve months, including dividends. Mike Miller, CEO of OneBeacon, said, "We are pleased with our performance on every front in 2009. We finished the year with strong results, including 31% growth in book value and a 94% GAAP combined ratio for both the quarter and the full year. Investment returns were excellent, with a 1% return for the fourth quarter and 10% for the year. The sale of our non-specialty Commercial Lines business in early December and our more recently announced Personal Lines sale is a major step in our transition to a specialty company." Continued Miller, "Capital freed up by the sales significantly enhances our financial flexibility as we continue to grow our Specialty Lines. We enter 2010 with specialty business units that are performing well and positioned for continued success." For the fourth quarter, comprehensive net income was $84 million and net income was $72 million, and operating income was $66 million or $0.70 per share. For the twelve months ended December 31, 2009, comprehensive net income was $361 million, net income was $342 million, and operating income was $180 million or $1.90 per share. Operating income is a non-GAAP financial measure which is explained later in this release. On December 3, 2009, OneBeacon sold the renewal rights to its non-specialty Commercial Lines business to The Hanover Insurance Group. The agreement included small-commercial accounts and non-specialty middle-market business beginning with January 1, 2010 effective dates. As a result of this transaction, Specialty Lines financial results now include Technology, Financial Services, OneBeacon Specialty Property and Property and Inland Marine segmented commercial businesses. The non-specialty Commercial business subject to the renewal rights agreement is presented within Run-off results, along with other run-off business. Furthermore, OneBeacon's 2009 results include pre-tax proceeds of $23 million, reflected in net other revenues, from the renewal rights sale. Insurance Operations The fourth quarter GAAP combined ratio was 93.6% as compared to 86.2% for the fourth quarter of 2008, with 2009 results reflecting higher losses at AutoOne and higher expenses, including increased incentive compensation costs and severance and other costs associated with the renewal rights transaction. The full-year 2009 GAAP combined ratio was 94.4% compared to 95.0% for 2008, with the variance reflecting lower catastrophe losses and slightly more favorable loss development on prior accident year losses, somewhat offset by higher expenses. Fourth quarter net written premiums were $435.5 million as compared to $473.7 million for the fourth quarter of 2008. Specialty Lines' premiums increased by 4.0% for the quarter, reflecting new business growth from most of the businesses, particularly Entertainment Brokers International Insurance Services, OneBeacon Energy and OneBeacon Professional Insurance. Personal Lines' premiums decreased by 21.8%, including the impact of premiums ceded under the homeowners quota share agreement, while Run-off premiums declined by 13.4%. Excluding the impact of the quota share, Personal Lines' premiums declined by 12.4% for the fourth quarter. Through December 31, 2009, net written premiums were $1,906.7 million as compared to $1,963.1 million in 2008. For the full year, Specialty Lines' premiums increased by 13.1%, while Personal Lines premiums decreased by 17.8% and Run-off premiums were 11.0% lower. Excluding the impact of the quota share, Personal Lines' premiums declined by 8.1%. Consolidated Investment Results OneBeacon's fourth quarter total return on invested assets was 1.1%, compared to minus 8.0% for the fourth quarter of 2008. These results included net realized and unrealized investment gains of $10 million and net investment income of $33 million, compared to net realized and unrealized investment losses of $350 million and net investment income of $27 million for the fourth quarter of 2008. Through December 31, 2009, total return on invested assets was 9.9%, compared to minus 13.0% through the twelve months of 2008. Investment results included net realized and unrealized investment gains of $249 million and net investment income of $126 million. This compared to net realized and unrealized investment losses of $764 million and net investment income of $164 million through December 31, 2008. Company to Host Webcast OneBeacon will host its fourth quarter and full year 2009 Webcast for analysts and investors at 10:00 a.m. ET on Wednesday, February 3. Copies of the earnings release, the slide presentation that will be referenced during the call and a financial supplement are available on the company's Web site: www.onebeacon.com. An audio playback of the teleconference will be available on the Web site shortly following the Webcast. About OneBeacon: OneBeacon Insurance Group, Ltd. is a Bermuda-domiciled holding company that is publicly traded on the New York Stock Exchange under the symbol "OB". OneBeacon Insurance Group's underwriting companies offer a range of specialty and personal insurance products sold through select independent agents, regional and national brokers, and wholesalers. 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, Technology, Financial Services, OneBeacon Specialty Property, and Property and Inland Marine. As one of the oldest property and casualty insurers in the United States, OneBeacon traces its roots to 1831 and the Potomac Fire Insurance Company. Today, OneBeacon's specialty insurance businesses are national in scope while personal lines business is concentrated in the Northeastern United States.
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