MINNETONKA, Minn., June 23, 2014 /PRNewswire/ -- OneBeacon Insurance Group, Ltd. (NYSE: OB) today noted continued progress in the regulatory review of the sale of its runoff business to Armour Group Holdings Limited ("Armour") by the Pennsylvania Insurance Department (the "Department") and restated its expectation that the transaction will close in the second half of 2014.
As part of its normal review of the proposed sale, the Department has announced that it will hold a public informational hearing on July 23, 2014. The hearing notice can be accessed on the Pennsylvania Bulletin website at: http://bit.ly/1iQJ5He.
As context for the public hearing, Armour has filed with the Department a proposed closing balance sheet, pro forma as of June 30, 2014, which includes $80.9 million of seller financing in the form of surplus notes, as provided for in the stock purchase agreement. The proposed closing balance sheet can be accessed on the Department's website at: http://bit.ly/1pjEHo4.
As additional context for the public hearing, Armour has provided to the Department a summary report of an independent actuarial firm's stochastic modeling of the proposed closing balance sheet, pro forma as of June 30, 2014. The report can also be accessed on the Department's website.
In support of the proposed closing balance sheet, pro forma as of June 30, 2014, the company and Armour recently amended the stock purchase agreement, primarily to increase the cap on the seller financing by $6.7 million and to extend the termination date to year-end 2014. The amendment to the stock purchase agreement can also be accessed on the Department's website.
Said OneBeacon CEO Mike Miller, "We are in agreement with the updated closing balance sheet, which includes $81 million of seller financing in the form of surplus notes. We remain focused on proceeding through the regulatory approval process and look to close the sale in the second half of 2014."
About OneBeacon: OneBeacon Insurance Group, Ltd. is a Bermuda-domiciled holding company that is publicly traded on the New York Stock Exchange under the symbol "OB." OneBeacon's underwriting companies offer a range of specialty insurance products sold through independent agencies, regional and national brokers, wholesalers and managing general agencies. Each business is managed by an experienced team of specialty insurance professionals focused on a specific customer group or industry segment, and providing distinct products and tailored coverages and services. OneBeacon's solutions target ocean and inland marine; entertainment, sports and leisure; group accident; crop; public entities; technology; tuition refund; professional liability; environmental; excess property; programs; and commercial surety. For further information about our products and services visit: www.onebeacon.com and to remain up to date on OneBeacon's news, follow us on Twitter @OneBeaconIns or visit our online newsroom: www.onebeacon.com/newsroom.
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SOURCE OneBeacon Insurance Group, Ltd.
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