WHITE MOUNTAINS INSURANCE GROUP, LTD. 
By HAMILTON, Bermuda, July 27, 2012 /PRNewswire/ -- OneBeacon Insurance Group, Ltd. (NYSE: OB) today reported book value per share of $11.86, an increase of 1.2% for the second quarter and 6.3% through six months, including dividends.
Mike Miller, CEO of OneBeacon said, "Our results for the first half of 2012 show good book value growth, which includes strong underwriting results and positive investment returns. Our combined ratios reflect the consistent profitability of our Specialty businesses. We are pleased with our premium growth, which is driven by positive renewal price increases, strong renewal retention and good new business levels."
For the second quarter, comprehensive income and net income were both $12 million, and operating income was $20 million, or $0.21 per share. For the six months ended June 30, 2012, comprehensive income was $57 million, net income was $56 million and operating income was $45 million, or $0.47 per share. Operating income is a non-GAAP financial measure which is explained later in this release.
Insurance Operations: The GAAP combined ratio was 93.9% in the second quarter, compared to 95.1% for the second quarter of 2011, and 93.7% for the six months ended June 30, 2012 compared to 94.3% for the first six months of 2011. The GAAP combined ratio for both the second quarter and the first six months of 2012 reflected improvement in the current accident year loss ratio including lower catastrophe losses, partially offset by lower favorable loss reserve development. Catastrophe losses were 2 points in both the second quarter and the first six months of 2012 compared to 6 points in the second quarter and 4 points in the first six months of last year. Favorable loss reserve development was 1 point in the second quarter of 2012 compared to 4 points in the second quarter of last year. The first six months of 2012 included 1 point of unfavorable loss reserve development compared to 3 points of favorable loss reserve development in the first six months of last year.
Specialty Insurance Operations' GAAP combined ratio was 94.0% for the second quarter, compared to 95.0% for the second quarter of 2011, and 91.5% for the first six months of 2012, compared to 94.7% for first six months of 2011, reflecting improvement in the current accident year loss ratio including a decrease in catastrophe losses and slightly lower favorable prior accident year loss reserve development.
Second quarter net written premiums were $293 million, an increase of 10% over the second quarter of 2011. Through six months, premiums were $597 million, an increase of 14% from the first six months of last year. These increases reflect strong new business results from a number of the Specialty businesses, particularly OneBeacon Technology, collector car and boat business written through Hagerty Insurance Agency, OneBeacon Energy Group and OneBeacon Specialty Property.
Consolidated Investment Results: OneBeacon's second quarter total return on invested assets was 0.1% compared to 1.0% for the second quarter of 2011. These results included net realized and unrealized investment losses of $12 million and net investment income of $14 million, compared to net realized and unrealized investment gains of $11 million and net investment income of $19 million for the second quarter of 2011. The average market value of invested assets was $2.7 billion in the second quarter as compared to $3.1 billion in the second quarter of 2011, reflecting the impact of the company's capital management activities.
Through the first six months of the year, total return on invested assets was 1.8% compared to 2.5% through June 30, 2011. These results included net realized and unrealized investment gains of $18 million and net investment income of $29 million, compared to net realized and unrealized investment gains of $34 million and net investment income of $40 million for the first six months of 2011. The average market value of invested assets was $2.7 billion through the first six months of 2012 as compared to $3.1 billion through June 30, 2011, again reflecting the impact of the company's capital management activities.
Company to Host Webcast: OneBeacon will host its second quarter 2012 webcast for analysts and investors at 10:00 a.m. ET on Friday, July 27. A copy of the earnings release, the slide presentation to be referenced during the call and a financial supplement are available on the company's website: www.onebeacon.com. An audio playback of the teleconference will be available on the website shortly following the webcast.
About OneBeacon: OneBeacon Insurance Group, Ltd. is a Bermuda-domiciled holding company that is publicly traded on the New York Stock Exchange under the symbol "OB." OneBeacon's underwriting companies offer a range of specialty insurance products sold through independent agencies, regional and national brokers, wholesalers and managing general agencies. Each business is managed by an experienced team of specialty insurance professionals focused on a specific customer group or industry segment. OneBeacon's solutions target professional liability; ocean and inland marine; collector cars and boats; energy; entertainment, sports and leisure; excess property; environmental; group accident; programs; public entities; technology; and tuition refund. For further information about our products and services visit: www.onebeacon.com and to remain up to date on OneBeacon's news, follow us on Twitter @OneBeaconIns or visit our online newsroom: www.onebeacon.com/newsroom.
ONEBEACON INSURANCE GROUP, LTD.
CONSOLIDATED BALANCE SHEETS
($ in millions)
(Unaudited)
June 30, December 31, June 30,
2012 2011 2011
---- ---- ----
Assets
Investment securities:
Fixed maturity investments $2,020.1 $1,886.2 $2,228.5
Short-term investments 148.8 320.0 116.2
Common equity securities 266.5 266.5 304.7
Convertible fixed maturity investments 75.6 79.8 79.8
Other investments 155.3 155.1 158.3
----- ----- -----
Total investments 2,666.3 2,707.6 2,887.5
Cash 27.0 54.9 31.3
Reinsurance recoverable on unpaid losses 2,040.7 2,167.5 1,825.9
Reinsurance recoverable on paid losses 24.2 16.5 16.2
Premiums receivable 275.9 230.9 276.9
Deferred acquisition costs 120.9 123.5 119.2
Ceded unearned premiums 10.9 10.7 26.2
Net deferred tax asset 84.3 93.6 90.8
Investment income accrued 13.7 14.1 15.8
Accounts receivable on unsettled investment sales 7.1 0.5 7.3
Other assets 270.0 269.2 276.4
Assets held for sale (1) - 132.6 -
Total assets $5,541.0 $5,821.6 $5,573.5
======== ======== ========
Liabilities
Loss and loss adjustment expense reserves $3,175.3 $3,358.6 $3,131.5
Unearned premiums 570.4 528.0 570.0
Debt 269.8 269.7 269.7
Ceded reinsurance payable 26.6 23.4 51.0
Accounts payable on unsettled investment purchases 38.1 22.7 23.6
Other liabilities 314.5 397.7 356.5
Liabilities held for sale (1) - 107.6 -
Total liabilities 4,394.7 4,707.7 4,402.3
------- ------- -------
OneBeacon's common shareholders' equity and
noncontrolling interests
OneBeacon's common shareholders' equity:
Common shares and paid-in surplus 1,017.6 1,002.2 1,001.2
Retained earnings 124.8 108.5 150.7
Accumulated other comprehensive (loss) income,
after tax:
Other comprehensive income and loss items (10.6) (10.9) 0.4
----- ----- ---
Total OneBeacon's common shareholders' equity 1,131.8 1,099.8 1,152.3
Total noncontrolling interests 14.5 14.1 18.9
---- ---- ----
Total OneBeacon's common shareholders' equity and
noncontrolling interests 1,146.3 1,113.9 1,171.2
------- ------- -------
Total liabilities, OneBeacon's common shareholders'
equity and noncontrolling interests $5,541.0 $5,821.6 $5,573.5
=== ======== ======== ========
(1) Represents assets and liabilities being sold as part of the AutoOne transaction required to be
presented separately in the December 31, 2011 consolidated balance sheet. The AutoOne
transaction closed in February 2012.
ONEBEACON INSURANCE GROUP, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in millions, except per share amounts)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2012 2011 2012 2011
---- ---- ---- ----
Revenues:
Earned premiums $282.0 $247.5 $554.8 $492.6
Net investment income 14.0 18.7 28.7 39.7
Net realized and unrealized investment (losses)
gains (11.9) 11.0 17.9 34.1
Net other revenues (expenses) 0.2 (11.5) 0.3 (10.7)
--- ----- --- -----
Total revenues 284.3 265.7 601.7 555.7
----- ----- ----- -----
Expenses:
Loss and loss adjustment expenses 152.5 137.9 301.8 268.3
Policy acquisition expenses 60.1 53.5 117.5 102.5
Other underwriting expenses 52.0 44.1 100.8 93.4
General and administrative expenses 2.6 2.6 5.3 4.9
Interest expense on debt 4.0 6.0 8.1 12.3
Total expenses 271.2 244.1 533.5 481.4
----- ----- ----- -----
Pre-tax income from continuing operations 13.1 21.6 68.2 74.3
Income tax expense (0.6) (4.4) (11.0) (14.1)
---- ---- ----- -----
Net income from continuing operations 12.5 17.2 57.2 60.2
Loss from discontinued operations, net of tax
(1) - (1.2) (0.1) (1.9)
Net income including noncontrolling interests 12.5 16.0 57.1 58.3
Less: Net income attributable to noncontrolling
interests (0.2) (0.5) (0.8) (0.9)
---- ---- ---- ----
Net income attributable to OneBeacon's common
shareholders 12.3 15.5 56.3 57.4
Change in other comprehensive income and loss
items 0.1 - 0.3 0.1
--- --- --- ---
Comprehensive income attributable to OneBeacon's
common shareholders $12.4 $15.5 $56.6 $57.5
===== ===== ===== =====
Earnings (loss) per common share - basic and diluted
Net income from continuing operations per share $0.13 $0.18 $0.60 $0.64
Loss from discontinued operations, net of tax,
per share - (0.01) (0.00) (0.02)
Net income attributable to OneBeacon's common
shareholders per share $0.13 $0.16 $0.59 $0.61
Weighted average number of common shares
outstanding (2) 95.4 94.7 95.3 94.5
(1)
Results for AutoOne are reported as discontinued operations for all periods presented through closing. The
AutoOne transaction closed in February 2012.
(2)
Weighted average common shares outstanding includes the impact of unvested restricted shares and also the
impact of repurchases of Class A common shares made through the company's share repurchase program.
ONEBEACON INSURANCE GROUP, LTD.
SEGMENT STATEMENTS OF OPERATIONS
($ in millions)
(Unaudited)
For the Three Months Ended June 30, 2012 Investing,
----------------------------------------
Specialty Other Financing
Insurance Insurance and Corporate
Operations Operations Operations Total
---------- ---------- ---------- -----
Earned premiums $280.3 $1.7 $ - $282.0
Loss and loss adjustment expenses (151.4) (1.1) - (152.5)
Policy acquisition expenses (60.8) 0.7 - (60.1)
Other underwriting expenses (51.3) (0.7) - (52.0)
Underwriting income 16.8 0.6 - 17.4
---- --- --- ----
Net investment income - - 14.0 14.0
Net realized and unrealized investment
losses - - (11.9) (11.9)
Net other revenues 0.1 - 0.1 0.2
General and administrative expenses (0.5) - (2.1) (2.6)
Interest expense on debt - - (4.0) (4.0)
Pre-tax income (loss) $16.4 $0.6 $(3.9) $13.1
For the Three Months Ended June 30, 2011
----------------------------------------
Investing,
Specialty Other Financing
Insurance Insurance and Corporate
Operations Operations Operations Total
---------- ---------- ---------- -----
Earned premiums $246.9 $0.6 $ - $247.5
Loss and loss adjustment expenses (139.0) 1.1 - (137.9)
Policy acquisition expenses (53.5) - - (53.5)
Other underwriting expenses (42.0) (2.1) - (44.1)
Underwriting income (loss) 12.4 (0.4) - 12.0
---- ---- --- ----
Net investment income - - 18.7 18.7
Net realized and unrealized investment
gains - - 11.0 11.0
Net other revenues (expenses) 0.1 0.6 (12.2) (11.5)
General and administrative expenses (0.4) - (2.2) (2.6)
Interest expense on debt - - (6.0) (6.0)
Pre-tax income $12.1 $0.2 $9.3 $21.6
ONEBEACON INSURANCE GROUP, LTD.
SEGMENT STATEMENTS OF OPERATIONS
($ in millions)
(Unaudited)
For the Six Months Ended June 30, 2012 Investing,
--------------------------------------
Specialty Other Financing
Insurance Insurance and Corporate
Operations Operations Operations Total
---------- ---------- ---------- -----
Earned premiums $552.1 $2.7 $ - $554.8
Loss and loss adjustment expenses (287.9) (13.9) - (301.8)
Policy acquisition expenses (119.0) 1.5 - (117.5)
Other underwriting expenses (98.7) (2.1) - (100.8)
Underwriting income (loss) 46.5 (11.8) - 34.7
---- ----- --- ----
Net investment income - - 28.7 28.7
Net realized and unrealized investment
gains - - 17.9 17.9
Net other revenues (expenses) 0.2 0.2 (0.1) 0.3
General and administrative expenses (0.8) - (4.5) (5.3)
Interest expense on debt - - (8.1) (8.1)
Pre-tax income (loss) $45.9 $(11.6) $33.9 $68.2
For the Six Months Ended June 30, 2011
--------------------------------------
Investing,
Specialty Other Financing
Insurance Insurance and Corporate
Operations Operations Operations Total
---------- ---------- ---------- -----
Earned premiums $488.8 $3.8 $ - $492.6
Loss and loss adjustment expenses (271.6) 3.3 - (268.3)
Policy acquisition expenses (102.7) 0.2 - (102.5)
Other underwriting expenses (88.4) (5.0) - (93.4)
Underwriting income 26.1 2.3 - 28.4
---- --- --- ----
Net investment income - - 39.7 39.7
Net realized and unrealized investment
gains - - 34.1 34.1
Net other revenues (expenses) 0.2 1.5 (12.4) (10.7)
General and administrative expenses (0.9) - (4.0) (4.9)
Interest expense on debt - - (12.3) (12.3)
Pre-tax income $25.4 $3.8 $45.1 $74.3
ONEBEACON INSURANCE GROUP, LTD.
SUMMARY OF RATIOS AND PREMIUMS
($ in millions)
(Unaudited)
Three Months Ended June 30, 2012
MGA Business Specialty Industries Specialty Products Specialty Other Insurance Operations (2) (3) Consolidated Insurance Operations (3)
Insurance
Operations (1)
-------------
Net written premiums $79.0 $120.9 $92.2 $292.1 $1.3 $293.4
Earned premiums $76.2 $103.6 $100.5 $280.3 $1.7 $282.0
Ratios
Loss and loss adjustment expenses 51.3% 49.4% 60.8% 54.0% n/m 54.1%
Expense 44.4% 38.4% 38.3% 40.0% n/m 39.8%
---- ---- ---- ---- --- ----
GAAP combined 95.7% 87.8% 99.1% 94.0% n/m 93.9%
------------- ---- ---- ---- ---- --- ----
Three Months Ended June 30, 2011
MGA Business Specialty Industries Specialty Products Specialty Other Insurance Consolidated Insurance Operations (3)
Insurance Operations (1) Operations (2) (3)
----------------------- -----------------
Net written premiums $71.7 $102.9 $91.4 $266.0 $(0.4) $265.6
Earned premiums $68.3 $83.7 $94.9 $246.9 $0.6 $247.5
Ratios
Loss and loss adjustment expenses 53.3% 50.9% 63.2% 56.3% n/m 55.7%
Expense 41.6% 40.4% 35.1% 38.7% n/m 39.4%
---- ---- ---- ---- --- ----
GAAP combined 94.9% 91.3% 98.3% 95.0% n/m 95.1%
------------- ---- ---- ---- ---- --- ----
Six Months Ended June 30, 2012
MGA Business Specialty Industries Specialty Products Specialty Insurance Operations (1) Other Insurance Consolidated
Operations (2) (3) Insurance
Operations (3)
-------------
Net written premiums $134.7 $231.2 $229.3 $595.2 $1.8 $597.0
Earned premiums $149.1 $202.3 $200.7 $552.1 $2.7 $554.8
Ratios
Loss and loss adjustment expenses 47.0% 49.8% 58.3% 52.1% n/m 54.4%
Expense 44.3% 38.3% 36.9% 39.4% n/m 39.3%
---- ---- ---- ---- --- ----
GAAP combined 91.3% 88.1% 95.2% 91.5% n/m 93.7%
------------- ---- ---- ---- ---- --- ----
Six Months Ended June 30, 2011
MGA Business Specialty Industries Specialty Products Specialty Insurance Operations (1) Other Insurance Operations (2) (3) Consolidated Insurance Operations (3)
------------ -------------------- ------------------ --------------------------------- --------------------------------- ------------------------------------
Net written premiums $120.2 $188.5 $215.6 $524.3 $1.2 $525.5
Earned premiums $134.3 $164.6 $189.9 $488.8 $3.8 $492.6
Ratios
Loss and loss adjustment expenses 49.4% 53.9% 61.4% 55.6% n/m 54.5%
Expense 41.8% 41.4% 35.2% 39.1% n/m 39.8%
---- ---- ---- ---- --- ----
GAAP combined 91.2% 95.3% 96.6% 94.7% n/m 94.3%
------------- ---- ---- ---- ---- --- ----
(1) Within Specialty Insurance Operations, OneBeacon reports its businesses through three major underwriting units, representing an aggregation of its specialty lines
businesses. MGA Business includes Collector Cars and Boats, A.W.G. Dewar and OneBeacon Entertainment. Also included in MGA Business is OneBeacon's newest
specialty business, OneBeacon Program Group. Specialty Industries includes International Marine Underwriters, OneBeacon Technology Insurance, OneBeacon Accident
Group, OneBeacon Government Risks and OneBeacon Energy Group. Specialty Products includes OneBeacon Professional Insurance, OneBeacon Property and Inland Marine,
OneBeacon Specialty Property and OneBeacon Excess and Surplus.
(2) Other Insurance Operations includes the nonspecialty commercial lines business that was subject to the renewal rights agreement with The Hanover that began with
January 1, 2010 effective dates and other run-off business. As Other Insurance Operations consists of business in run-off, GAAP ratios are not meaningful. For
the three months ended June 30, 2012 and 2011, Other Insurance Operations reported underwriting income of $0.6 million and an underwriting loss of $0.4 million,
respectively. For the six months ended June 30, 2012 and 2011, Other Insurance Operations reported an underwriting loss of $11.8 million and underwriting income
of $2.3 million, respectively.
(3) Results for AutoOne are reported as discontinued operations in a single financial statement caption outside of underwriting results for all periods presented
through closing. The AutoOne transaction closed in February 2012.
ONEBEACON INSURANCE GROUP, LTD.
BOOK VALUE PER SHARE
(in millions, except per share amounts)
(Unaudited)
June 30, March 31, December 31, June 30,
2012 2012 2011 2011
---- ---- ---- ----
Numerator
OneBeacon's common shareholders' equity $1,131.8 $1,138.4 $1,099.8 $1,152.3
Denominator
Common shares outstanding (1) 95.4 95.4 95.1 95.1
---- ---- ---- ----
Book value per share $11.86 $11.93 $11.56 $12.12
====== ====== ====== ======
Growth in book value per share, including dividends, in the quarter
on an IRR basis (2) 1.2%
Growth in book value per share, including dividends, in the six month
period
on an IRR basis (3) 6.3%
Growth in book value per share, including dividends, in the last twelve
months
on an IRR basis (4) 4.9%
(1) Common shares outstanding includes the impact of unvested restricted shares and also the impact of repurchases of Class A common shares made
through the company's share repurchase program.
(2) Internal rate of return (IRR) calculated based on beginning book value per share, dividends paid and ending book value per share. Includes a
quarterly dividend of $0.21 per share.
(3) IRR calculated based on beginning book value per share, dividends paid and ending book value per share. Includes dividends of $0.42 per share
(a quarterly dividend of $0.21 per share).
(4) IRR calculated based on beginning book value per share, dividends paid and ending book value per share. Includes dividends of $0.84 per share
(a quarterly dividend of $0.21 per share).
ONEBEACON INSURANCE GROUP, LTD.
COMPREHENSIVE INCOME, NET INCOME AND OPERATING INCOME
(in millions, except per share amounts)
(Unaudited)
Twelve Months
Ended
June 30,
--------
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2012 2011 2012 2011 2012
---- ---- ---- ---- ----
Comprehensive income attributable to OneBeacon's common shareholders $12.4 $15.5 $56.6 $57.5 $43.0
===== ===== ===== ===== =====
Net income attributable to OneBeacon's common shareholders $12.3 $15.5 $56.3 $57.4 $54.0
Weighted average common shares outstanding (1) 95.4 94.7 95.3 94.5 95.2
---- ---- ---- ---- ----
Net income attributable to OneBeacon's common shareholders per share $0.13 $0.16 $0.59 $0.61 $0.57
===== ===== ===== ===== =====
Net income attributable to OneBeacon's common shareholders $12.3 $15.5 $56.3 $57.4 $54.0
Less:
Net realized and unrealized investment gains and losses 11.9 (11.0) (17.9) (34.1) 5.6
Tax effect on net realized and unrealized investment gains and losses (4.1) 3.8 6.3 11.9 (2.0)
---- --- --- ---- ----
Operating income (2) $20.1 $8.3 $44.7 $35.2 $57.6
===== ==== ===== ===== =====
Weighted average common shares outstanding (1) 95.4 94.7 95.3 94.5 95.2
---- ---- ---- ---- ----
Operating income per share (2) $0.21 $0.09 $0.47 $0.37 $0.61
===== ===== ===== ===== =====
(1) Weighted average common shares outstanding includes the impact of unvested restricted shares and also the impact of repurchases of Class A
common shares made through the company's share repurchase program.
(2) Represents a non-GAAP financial measure. See discussion of Non-GAAP financial measures.
ONEBEACON INSURANCE GROUP, LTD.
COMPREHENSIVE AND OPERATING RETURNS ON AVERAGE EQUITY
($ in millions)
(Unaudited)
Twelve Months Ended
June 30, 2012
-------------
Numerator:
[A] Comprehensive income attributable to OneBeacon's common shareholders $43.0
[B] Operating income (1) $57.6
As of As of
June 30, 2012 June 30, 2011 Average
------------- ------------- -------
Denominator:
[C] OneBeacon's common shareholders' equity $1,131.8 $1,152.3 $1,142.1
Less:
Net unrealized gains and losses and net foreign currency gains and losses on investments (2) (104.4) (148.3)
Tax effect on net unrealized gains and losses and net foreign currency gains and losses on investments 36.5 51.9
Accumulated OCI/L, after tax 10.6 (0.4)
[D] Adjusted OneBeacon's common shareholders' equity excluding net unrealized investment gains and losses, after tax, and AOCI/L (1) $1,074.5 $1,055.5 $1,065.0
Returns:
Comprehensive return on average OneBeacon's common shareholders' equity [ A / C ] 3.8%
Operating return on average adjusted OneBeacon's common shareholders' equity excluding net unrealized
investment gains and losses, after tax, and AOCI/L [ B / D ] 5.4%
(1) Represents a non-GAAP financial measure. See discussion of Non-GAAP financial measures.
(2) Net unrealized gains and losses and net foreign currency gains and losses on investments as of June 30, 2012 and 2011 includes
unrealized gains and losses on investments held as well as deferred gains and losses relating to sales of investments to entities
under common control.
Discussion of Non-GAAP Financial Measures
This earnings release includes non-GAAP financial measures that have been reconciled to their most comparable GAAP financial measures. OneBeacon believes these measures to be useful supplements to the comparable GAAP measures in evaluating OneBeacon's financial performance.
Operating income is a non-GAAP financial measure that excludes net realized and unrealized investment gains or losses and the related tax effects from net income attributable to OneBeacon's common shareholders. OneBeacon believes that this non-GAAP financial measure provides a useful alternative picture of the underlying operating activities of the company to the GAAP measure of net income attributable to OneBeacon's common shareholders, as it removes variability in the timing of investment gains and losses which may be heavily influenced by investment market conditions. Although key to the company's overall financial performance, OneBeacon believes that net realized and unrealized investment gains or losses are largely independent of the underwriting decision-making process.
Operating income per share is calculated by dividing operating income (a non-GAAP financial measure described above) by the weighted average number of common shares outstanding. Management believes that operating income per share is a useful alternative picture of the underlying operating activities of the company as it removes variability in the timing of investment gains and losses which may be heavily influenced by investment market conditions. Net income attributable to OneBeacon's common shareholders per share is the most directly comparable GAAP measure.
Adjusted OneBeacon's common shareholders' equity excluding net unrealized investment gains and losses, after-tax, and accumulated other comprehensive income/loss (AOCI/L), the average of which is used in calculating operating returns, is derived by excluding net unrealized gains and losses and net foreign currency gains and losses on investments, after tax, and accumulated other comprehensive income or loss (AOCI/L), after tax, from OneBeacon's common shareholders' equity. For the reasons described above, OneBeacon believes that it is appropriate to remove the variability in net unrealized gains and losses and net foreign currency gains and losses on investments and other comprehensive income and loss items when analyzing certain performance measures.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to OneBeacon's:
-- change in book value per share or return on equity;
-- business strategy;
-- financial and operating targets or plans;
-- incurred loss and loss adjustment expenses and the adequacy of its loss
and loss adjustment expense reserves and related reinsurance;
-- projections of revenues, income (or loss), earnings (or loss) per share,
dividends, market share or other financial forecasts;
-- expansion and growth of our business and operations; and
-- future capital expenditures.
These statements are based on certain assumptions and analyses made by OneBeacon in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:
-- claims arising from catastrophic events, such as hurricanes, windstorms,
earthquakes, floods, or terrorist attacks;
-- recorded loss and loss adjustment expense reserves subsequently proving
to have been inadequate;
-- the continued availability and cost of reinsurance coverage;
-- the continued availability of capital and financing;
-- general economic, market or business conditions;
-- business opportunities (or lack thereof) that may be presented to it and
pursued;
-- competitive forces, including the conduct of other property and casualty
insurers and agents;
-- changes in domestic or foreign laws or regulations, or their
interpretation, applicable to OneBeacon, its competitors, its agents or
its customers;
-- an economic downturn or other economic conditions adversely affecting
its financial position including stock market volatility;
-- actions taken by ratings agencies from time to time, such as financial
strength or credit ratings downgrades or placing ratings on negative
watch;
-- the risks that are described from time to time in OneBeacon's filings
with the Securities and Exchange Commission, including but not limited
to OneBeacon's Annual Report on the Form 10-K for the fiscal year ended
December 31, 2011 filed February 28, 2012.
Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by OneBeacon will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, OneBeacon or its business or operations. OneBeacon assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
Website: www.onebeacon.com
SOURCE OneBeacon Insurance Group
