OneBeacon Reports $10.91 Book Value Per Share

HAMILTON, Bermuda, May 2, 2017

Mike Miller, CEO of OneBeacon, said, "The year is off to a good start, with 2.8% growth in book value per share, a 95% combined ratio and solid investment returns. Most of our businesses delivered strong results, from both a top-line and bottom-line perspective. While overall net written premiums were down 8% compared to last year, that variance was driven by risk-selection refinement in our Programs, Entertainment and Healthcare businesses.  In the remainder of our businesses, net written premiums were up 3%. While market conditions remain competitive, our positive first-quarter momentum positions us well for the balance of the year."

OneBeacon reported comprehensive income of $32.2 million for the first quarter of 2017, compared to $46.4 million for the first quarter of last year.

The prior year first quarter results included a $12.8 million tax benefit related to the settlement of the IRS examination for the tax years 2007-2009.

There were no common shares repurchased under the company's 2007 share repurchase authorization during the first quarter of 2017.

Insurance Operations:  OneBeacon's GAAP combined ratio was 94.5% for the first quarter of 2017, compared to 95.2% for the first quarter of 2016. The loss ratio increased to 57.5%, compared to 57.0% for the same prior year period, driven by increases in the Programs, Healthcare and Government Risks businesses, mostly offset by decreases in several other lines of business. The company had no net loss reserve development in either the first quarter of 2017 or the first quarter of 2016. The expense ratio decreased by 1.2 points to 37.0% for the first quarter of 2017, compared to the first quarter of last year, primarily driven by change in business mix and lower employee costs, which more than offset the negative impact of lower earned premiums. 

Net written premiums were $256.9 million in the first quarter of 2017, a decrease of 8.3% from the first quarter of 2016. During the first quarter, OneBeacon continued to reduce premium writings in its Programs, Entertainment and Healthcare businesses. Excluding those businesses, net written premiums increased by 3.3% for the first quarter of 2017.