LIBERTY MUTUAL ASSUMES BUSINESS FROM ONEBEACON

Boston-based Liberty Mutual Group will today assume the $1.5bn book of p/c business and most of the 2,600 employees in 42 states of OneBeacon, the former CGU Insurance Group that is now a unit of Bermuda-based group White Mountains. Excluded from the transfer are OneBeacon's agribusiness, ocean marine and other specialty operations. OneBeacon will continue to have a share of the results of the transferred commercial and personal lines operations for five years through reinsurance agreements. Most OneBeacon employees are being offered positions in local operating companies of Liberty Mutual's Regional Agency Markets unit. As well as the seven carriers already within the unit, Liberty Mutual is creating America First for four states along the Gulf of Mexico and is establishing OneBeacon's Hawkeye‑Security brand for eight central US states. OneBeacon will concentrate on operations in the north-east US and on specialty business through its White Mountains affiliate Folksamerica Re and International Marine Underwriters.