CANTON, Mass., June 23 /PRNewswire-FirstCall/ -- OneBeacon Insurance Group today announced it has signed an agreement to acquire Entertainment Brokers International Insurance Services, a California general partnership ("EBI"). EBI is a managing agency specializing in the entertainment, sports and leisure industries. The sale is expected to close early in the third quarter.
EBI provides commercial insurance products including professional liability coverages from its locations in Los Angeles and New York City. EBI also provides excess workers compensation coverages as a wholesaler from its Westlake Village, California office. They will continue to operate as a managing agency with a network of 500 independent agents and brokers. OneBeacon's agency partners will also have access to EBI's products. Most business produced by EBI will convert to OneBeacon upon renewal.
Kevin Rehnberg, OneBeacon's senior vice president of specialty lines said, "We are very excited about this acquisition as EBI's deep focus on the entertainment markets aligns perfectly with our specialization strategy. We look forward to welcoming Jack Cave, Bill Cody, Martin Ridgers and the team to OneBeacon, and promoting our newest capability."
Added EBI managing partner Jack Cave, "We're very excited about becoming a part of OneBeacon. For nearly 20 years, we've prided ourselves on serving the entertainment, sports, leisure and contingency insurance segments with superior insurance solutions and service capabilities. In OneBeacon, we've found a partner that shares our view that experience and expertise, along with unique product offerings are the best means to serve our specialized business segment. This is a very positive step for our agents and brokers and their clients, as well as our employees."
About OneBeacon: OneBeacon Insurance Group's underwriting companies offer a range of specialty and segmented commercial and personal insurance products sold primarily through select independent agents. As one of the oldest property and casualty insurers in the United States, OneBeacon traces its roots to 1831 and the Potomac Fire Insurance Company. Today, OneBeacon's specialty insurance products are available countrywide, and commercial and personal lines are offered in select geographic territories.
OneBeacon's U.S. headquarters is in Canton, Massachusetts. The company is publicly traded on the New York Stock Exchange under the symbol "OB" and is "A" rated by A.M. Best.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All 3 statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to OneBeacon's:
-- growth in adjusted book value per share or return on equity; -- business strategy; -- financial and operating targets or plans;
-- incurred loss and loss adjustment expenses and the adequacy of its loss and loss adjustment expense reserves and related reinsurance;
-- projections of revenues, income (or loss), earnings (or loss) per share, dividends, market share or other financial forecasts;
-- expansion and growth of our business and operations; and -- future capital expenditures.
These statements are based on certain assumptions and analyses made by OneBeacon in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:
-- claims arising from catastrophic events, such as hurricanes, earthquakes, floods or terrorist attacks;
-- recorded loss and loss adjustment expense reserves subsequently proving to have been inadequate;
-- the continued availability and cost of reinsurance coverage; -- the continued availability of capital and financing; -- general economic, market or business conditions;
-- business opportunities (or lack thereof) that may be presented to it and pursued;
-- competitive forces, including the conduct of other property and casualty insurers and reinsurers;
-- changes in domestic or foreign laws or regulations, or their interpretation, applicable to OneBeacon, its competitors or its clients;
-- an economic downturn or other economic conditions adversely affecting its financial position;
-- other factors, most of which are beyond OneBeacon's control; and
-- the risks that are described from time to time in OneBeacon's filings with the Securities and Exchange Commission, including but not limited to OneBeacon's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 filed February 29, 2008.
Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by OneBeacon will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, OneBeacon or its business or operations. OneBeacon assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
