Carmen Duarte, a spokeswoman for OneBeacon, said the company is just beginning its examination of the book and is not in a position to say what its potential worth is at this time. She said the company would accept business that fits its risk appetite.

This is the second renewal book of business OneBeacon has purchased this year, buying the renewal rights to select Atlantic Mutual commercial accounts in March.

Providence Washington Mutual Insurance Company, which traces its founding to the late 1700s, announced last Friday that it has stopped writing new and renewal business after reporting net losses of $35 million in 2003 and a net loss of $7 million in the first quarter of this year. Policyholder surplus dropped from $92 million in 2002 to $53 million in the first quarter of 2004.

The company said it has been unable to raise new capital or find a buyer and would reduce its workforce of 235 employees. It also said it anticipated further erosion in its surplus. It would continue to service existing policyholders, it said.

The company is currently rated "B (minus) u (Fair)" by A.M. Best. The rating, Best said, means that the company has "a fair ability to meet their current obligations to policyholders, but are financially vulnerable to adverse changes in underwriting and economic conditions."

Providence Washington reported $170 million in direct written premium in 2003, of which 70 percent is commercial lines business written in 16 states during that period. The company said 47 percent of its business is written in New York and 8 percent in Rhode Island and Connecticut.