Exhibit 99(c)
PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACTS: Carmen Duarte John Cusolito
OneBeacon Insurance Group Liberty Mutual Insurance Group
One Beacon Street 275 Berkley Street
Boston, MA 02108 Boston, MA
p: 617.725.6598 f: 617.725.7357 p: 617. 574.5512 f: 617.574.5637
cduarte@onebeacon.com john.cusolito@libertymutual.com
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LIBERTY MUTUAL AND ONEBEACON REACH DEFINITIVE AGREEMENT ON BUSINESS TRANSFER
- PARTNERSHIP GOES LIVE NOVEMBER 1ST -
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(BOSTON, MA - OCTOBER 31, 2001) - Liberty Mutual Group and OneBeacon, a wholly
owned subsidiary of White Mountains Insurance Group, Ltd. (NYSE: WTM), have
reached a definitive agreement regarding the previously announced partnership
that transfers business and operations in 42 states and the District of Columbia
from OneBeacon to Liberty Mutual's Regional Agency Markets business unit.
Beginning November 1, Liberty Mutual will assume new and renewal commercial and
personal lines business produced by OneBeacon agents within the 42 states and
the District of Columbia. OneBeacon will continue to participate in the future
results of this business for up to five years through reinsurance agreements.
Service agreements have been put in place to ensure a smooth transition.
Specialty operations, including agribusiness and ocean marine that is produced
by OneBeacon agents within those 42 states and the District of Columbia are not
transferring to Liberty Mutual.
OneBeacon and Liberty Mutual Group announced an agreement in principle
on September 5. Since that time, transition teams from both organizations have
been preparing for the transfer of business and operations. The partnership is
expected to add $1.5 billion of personal and commercial lines business to
Liberty Mutual's Regional Agency Markets business unit. The vast majority of
OneBeacon staff in the affected
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territories will receive offers of employment from the local Regional Agency
Markets companies. Business and operations in the northwest are being
transferred to Liberty Northwest, a separate subsidiary of the Liberty Mutual
Group. Liberty Northwest has been a specialty workers compensation provider in
the Pacific Northwest since 1984.
Liberty Mutual has been building a national organization of regional
property and casualty companies that distribute insurance products solely
through independent agents. Those companies currently have in total direct
written premiums of approximately $2.1 billion.
o Northeast - Peerless Insurance
o Midwest - Indiana Insurance
o Mountain - Colorado Casualty Insurance Co.
o California - Golden Eagle Insurance Corp.
o Southeast - Montgomery Insurance Companies
o Specialty - Summit Holdings Southeast and GoAmerica Auto Insurance
As a result of this partnership, two new companies will be formed -
America First for the four-state Gulf operation and Hawkeye-Security, a
OneBeacon legacy brand, for the eight Central states.
Edmund F. Kelly, Liberty Mutual Group chairman, president and chief
executive officer, states, "This is an important milestone for the Liberty
Mutual Group. We are committed to being a multi-channel property and casualty
company. This agreement provides the added breadth and scale in our independent
agent distribution system that is essential to achieving that goal."
Roger L. Jean, president of Liberty Mutual's Regional Agency Markets
business unit, states, "The addition of the OneBeacon operations underscores the
commitment of the Liberty Mutual Group to the independent agency system. We are
enthusiastic about
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this added strength and about the expertise of the OneBeacon employees who
will be joining us."
Adds Ray Barrette, managing director and CEO of OneBeacon, "The spirit
of partnership has been tremendous as we have prepared for this date. Each of
the Liberty Mutual regional leadership teams has extended itself to welcome both
staff and agents to their local operations. We are confident that this
opportunity will continue to evolve with positive results for everyone."
Going forward, OneBeacon is focused on building upon its strengths in
the Northeast and emerging as the super-regional company for independent agents
in that territory. OneBeacon also operates in select specialty businesses, like
Folksamerica Re and International Marine Underwriters.
Boston-based Liberty Mutual is a diversified international group of
insurance companies and one of the largest multi-line insurers in the North
American property and casualty industry. The group has more than $54 billion in
consolidated assets, more than $67 billion in assets under management, $13.5
billion in consolidated revenue and ranks 121st on the Fortune 500 list of
largest corporations in the United States. The A.M. Best Company has rated
Liberty "A+" (Superior). Along with being the leading provider of workers
compensation insurance, programs and services in the United States for 65 years,
Liberty Mutual provides a wide range of products and services, including general
liability, commercial auto and business property; group life and disability;
private passenger auto and homeowners insurance; individual life and annuities,
international programs and financial services.
Headquartered in Boston, Massachusetts, OneBeacon Insurance Group has
an A.M. Best rating of A (excellent) and offers a wide range of personal,
commercial and specialty products and services, which are sold exclusively
through select independent agents. OneBeacon is a wholly owned subsidiary of
White Mountains Insurance Group,
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Ltd., of Hamilton, Bermuda and whose principal executive offices are in
Hanover, New Hampshire.
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SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
The information contained in this press release may contain forward looking
statements within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995. White Mountains
cautions that a number of important factors could cause actual results to differ
materially from the plans, objectives, expectations, estimates and intentions
expressed in forward-looking statements made by White Mountains. These factors
include: (i) competitive forces, including the conduct of other property and
casualty insurers and reinsurers, (ii) changes in domestic or foreign laws or
regulations applicable to White Mountains, its competitors or its clients, (iii)
an economic downturn or other economic conditions (such as a rising interest
rate environment) adversely affecting White Mountains' financial position, and
(iv) loss reserves and other balance sheet items established by White Mountains
subsequently proving to have been inadequate. White Mountains cautions that the
foregoing list of important factors is not exhaustive. In any event, such
forward-looking statements made by White Mountains speak only as of the date on
which they are made, and White Mountains does not undertake any obligation to
update or revise such statements as a result of new information, future events
or otherwise.
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