TEXT-Fitch assigns OneBeacon new operating cos 'A' rating

Mon Nov 12, 2012 5:49pm EST

Nov 12 - Fitch Ratings has assigned an 'A' Insurer Financial Strength (IFS)
rating to OneBeacon Insurance Group, Ltd.'s (OneBeacon; 75% ownership by
White Mountains) new operating company insurance subsidiaries, OBI National
Insurance Company (OBIN) and Homeland Insurance Company of Delaware (HODE). The
Rating Outlook is Stable. All other ratings of OneBeacon and its subsidiaries
are not affected by this action. A full rating list is shown below.

Fitch's rating action reflects the assignment of OneBeacon's group IFS rating to
OBIN and HODE as core insurance affiliates.  These recently established 
insurance entities were formed to write OneBeacon's ongoing business and will 
cede 100% to Atlantic Specialty Insurance Company, the group's primary ongoing 
insurance entity, through a quota share reinsurance agreement.   This 
restructuring of business entities is being completed as part of the expected 
sale of OneBeacon's runoff business companies to Armour Group Holdings Limited 
(Armour).