Insurer OneBeacon says it expects an after-tax charge of $101 million in the third quarter related to a deal to sell its runoff business to an affiliate of Bermuda-based Armour Group Holdings.
CEO Mike Miller says the sale of its runoff business “is the final step in our transformation to a pure specialty company.”
Minnetonnka, Minn.-based OneBeacon says it expects to record about $107 million in losses related to its runoff business, which includes nonspecialty commercial lines and other business.
Additionally, OneBeacon says it has entered an agreement to sell its Essentia Insurance subsidiary to Markel Corp. Essentia provides Collector Car and Boat insurance through Hagerty Insurance Agency.
OneBeacon says it expects to book a $23 million pretax gain on the sale of Essentia after the close of the deal, which is expected during Q1 2013.
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