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Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Financial information for OneBeacon's segments

						Investing,
						Financing
	Specialty			Other		and
	Insurance			Insurance		Corporate
	Operations			Operations		Operations			Total
				($ in millions)
Three months ended September 30, 2012
Earned premiums	$	293.9		$	—	$	—		$	293.9
Loss and LAE	(164.7		)	—		—			(164.7		)
Policy acquisition expenses	(66.6		)	—		—			(66.6		)
Other underwriting expenses	(47.4		)	—		—			(47.4		)
Total underwriting income	15.2			—		—			15.2
Net investment income	—			—		12.8			12.8
Net realized and unrealized investment gains	—			—		40.0			40.0
Net other (expenses) revenues	(1.1		)	0.1		(0.6		)	(1.6		)
General and administrative expenses	(0.6		)	—		(3.8		)	(4.4		)
Interest expense on debt	—			—		(4.0		)	(4.0		)
Pre-tax income	$	13.5		$	0.1	$	44.4		$	58.0

						Investing,
						Financing
	Specialty			Other		and
	Insurance			Insurance		Corporate
	Operations			Operations		Operations			Total
				($ in millions)
Three months ended September 30, 2011
Earned premiums	$	259.1		$	—	$	—		$	259.1
Loss and LAE	(149.7		)	—		—			(149.7		)
Policy acquisition expenses	(58.6		)	—		—			(58.6		)
Other underwriting expenses	(36.0		)	—		—			(36.0		)
Total underwriting income	14.8			—		—			14.8
Net investment income	—			—		16.1			16.1
Net realized and unrealized investment losses	—			—		(47.4		)	(47.4		)
Net other revenues (expenses)	0.3			—		(0.3		)	—
General and administrative expenses	(0.4		)	—		(2.1		)	(2.5		)
Interest expense on debt	—			—		(4.1		)	(4.1		)
Pre-tax income (loss)	$	14.7		$	—	$	(37.8	)	$	(23.1	)

						Investing,
						Financing
	Specialty			Other		and
	Insurance			Insurance		Corporate
	Operations			Operations		Operations			Total
				($ in millions)
Nine months ended September 30, 2012
Earned premiums	$	846.0		$	—	$	—		$	846.0
Loss and LAE	(452.5		)	—		—			(452.5		)
Policy acquisition expenses	(185.6		)	—		—			(185.6		)
Other underwriting expenses	(146.2		)	—		—			(146.2		)
Total underwriting income	61.7			—		—			61.7
Net investment income	—			—		41.5			41.5
Net realized and unrealized investment gains	—			—		57.9			57.9
Net other (expenses) revenues	(0.9		)	0.3		(0.5		)	(1.1		)
General and administrative expenses	(1.4		)	—		(8.3		)	(9.7		)
Interest expense on debt	—			—		(12.1		)	(12.1		)
Pre-tax income	$	59.4		$	0.3	$	78.5		$	138.2

							Investing,
							Financing
	Specialty			Other			and
	Insurance			Insurance			Corporate
	Operations			Operations			Operations			Total
				($ in millions)
Nine months ended September 30, 2011
Earned premiums	$	747.9		$	0.1		$	—		$	748.0
Loss and LAE	(421.3		)	—			—			(421.3		)
Policy acquisition expenses	(161.3		)	(0.2		)	—			(161.5		)
Other underwriting expenses	(124.4		)	(0.1		)	—			(124.5		)
Total underwriting income (loss)	40.9			(0.2		)	—			40.7
Net investment income	—			—			55.8			55.8
Net realized and unrealized investment losses	—			—			(13.3		)	(13.3		)
Net other revenues (expenses)	0.5			—			(12.7		)	(12.2		)
General and administrative expenses	(1.3		)	—			(6.1		)	(7.4		)
Interest expense on debt	—			—			(16.4		)	(16.4		)
Pre-tax income (loss)	$	40.1		$	(0.2	)	$	7.3		$	47.2

Schedule of selected balance sheet of the segments

					Investing,
					Financing
	Specialty		Other		and
	Insurance		Insurance		Corporate
	Operations		Operations (1)		Operations		Total
			($ in millions)
September 30, 2012
Total investments	$	—	$	—	$	2,273.0	$	2,273.0
Reinsurance recoverable on paid and unpaid losses	43.1		0.2		—		43.3
Deferred acquisition costs	132.5		—		—		132.5
Ceded unearned premiums	11.3		—		—		11.3
Loss and LAE reserves	911.4		0.2		—		911.6
Unearned premiums	608.6		2.1		—		610.7
Debt	—		—		269.8		269.8
December 31, 2011
Total investments	$	—	$	—	$	2,707.6	$	2,707.6
Reinsurance recoverable on paid and unpaid losses	62.7		2,121.3		—		2,184.0
Deferred acquisition costs	123.3		0.2		—		123.5
Ceded unearned premiums	10.5		0.2		—		10.7
Loss and LAE reserves	868.6		2,490.0		—		3,358.6
Unearned premiums	525.6		2.4		—		528.0
Debt	—		—		269.7		269.7

(1) Other Insurance Operations exclude assets and liabilities that are included in assets held for sale and liabilities held for sale as of September 30, 2012 related to the Runoff Transaction and as of December 31, 2011 related to the AutoOne Transaction. See Note 14 for the breakout of these assets and liabilities.

Schedule of net written premiums, earned premiums and ratios for OneBeacon's insurance operations by segment and in total, as well as for the three major underwriting units within Specialty Insurance Operations

										Specialty			Other
	MGA			Specialty			Specialty			Insurance			Insurance
($ in millions)	Business			Industries			Products			Operations(1)			Operations(2)			Total
Three months ended September 30, 2012
Net written premiums	$	128.7		$	106.6		$	99.9		$	335.2		$	—		$	335.2
Earned premiums	78.4			106.7			108.8			293.9			—			293.9
Ratios:
Loss and LAE	54.2		%	55.4		%	57.9		%	56.0		%	n/m			56.0		%
Expense	46.3			36.6			35.7			38.8			n/m			38.8
GAAP combined	100.5		%	92.0		%	93.6		%	94.8		%	n/m			94.8		%
Three months ended September 30, 2011
Net written premiums	$	110.5		$	89.7		$	97.0		$	297.2		$	—		$	297.2
Earned premiums	69.8			90.2			99.1			259.1			—			259.1
Ratios:
Loss and LAE	53.5		%	54.7		%	63.7		%	57.8		%	n/m			57.8		%
Expense	44.3			35.4			32.1			36.5			n/m			36.5
GAAP combined	97.8		%	90.1		%	95.8		%	94.3		%	n/m			94.3		%
Nine months ended September 30, 2012
Net written premiums	$	263.4		$	337.8		$	329.2		$	930.4		$	—		$	930.4
Earned premiums	227.5			309.0			309.5			846.0			—			846.0
Ratios:
Loss and LAE	49.5		%	51.7		%	58.2		%	53.5		%	n/m			53.5		%
Expense	45.0			37.7			36.5			39.2			n/m			39.2
GAAP combined	94.5		%	89.4		%	94.7		%	92.7		%	n/m			92.7		%
Nine months ended September 30, 2011
Net written premiums	$	230.7		$	278.2		$	312.6		$	821.5		$	(0.1	)	$	821.4
Earned premiums	204.1			254.8			289.0			747.9			0.1			748.0
Ratios:
Loss and LAE	50.8		%	54.2		%	62.2		%	56.3		%	n/m			56.3		%
Expense	42.7			39.2			34.1			38.2			n/m			38.2
GAAP combined	93.5		%	93.4		%	96.3		%	94.5		%	n/m			94.5		%

(1) Within Specialty Insurance Operations, OneBeacon reports its businesses through three major underwriting units, representing an aggregation of its specialty lines businesses. MGA Business includes Collector Cars and Boats, A.W.G. Dewar and OneBeacon Entertainment. In addition, in April 2012, OneBeacon announced the formation of OneBeacon Program Group which is included in MGA Business. Specialty Industries includes International Marine Underwriters, OneBeacon Technology Insurance, OneBeacon Accident Group, OneBeacon Government Risks and OneBeacon Energy Group. Specialty Products includes OneBeacon Professional Insurance, OneBeacon Property and Inland Marine, OneBeacon Specialty Property and OneBeacon Excess and Surplus. In addition, in September 2012, OneBeacon announced the formation of OneBeacon Surety Group which is included in Specialty Products.

(2) Ratios for Other Insurance Operations are not meaningful.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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