OneBeacon Insurance Group recently announced it will sell its runoff business to an affiliate of Bermuda-based Armour Group Holdings Ltd. for around $107 million, subject to regulatory approval. Certain legal entities will be transferred to Armour from OneBeacon including assets, liabilities and capital supporting the run-off business as well as certain elements of the runoff business infrastructure which includes staff and office space. As of September 30, 2012, the gross reserves associated with OneBeacon’s run-off business were in excess of $2.2 billion.
The deal is expected to close in 2013 if approved by regulators. The deal team was led by Edwards Wildman partners Chuck Welsh, Nick Pearson, Geoff Etherington, Paul Kanefsky, Greg Ploussios, Chris Flanagan and Louis Mercedes.
