Reinsurance

3 Months Ended

Mar. 31, 2014

Reinsurance Disclosures [Abstract]

Reinsurance

Reinsurance

In the normal course of business, OneBeacon's insurance subsidiaries seek to limit losses that may arise from catastrophes or other events by reinsuring with third-party reinsurers. OneBeacon remains liable for risks reinsured even if the reinsurer does not honor its obligations under reinsurance contracts. See Note 15—"Discontinued Operations" for amounts related to the Runoff Business.

New Treaties

Effective January 1, 2014, OneBeacon entered into reinsurance treaties to provide coverage for the 2014 crop year. OneBeacon purchased an aggregate stop loss on its MPCI portfolio, providing 48.5% of coverage in excess of a 101.5% loss ratio on premiums covered by the contract and a separate aggregate stop loss providing 80% of coverage in excess of a 100% loss ratio on its crop-hail portfolio.

Reinsurance Recoverables

At March 31, 2014, OneBeacon had reinsurance recoverable on paid losses of $3.0 million and reinsurance recoverables on unpaid losses of $80.1 million. Reinsurance contracts do not relieve OneBeacon of its obligations. Therefore, collectibility of balances due from reinsurers is critical to OneBeacon's financial strength. The following table summarizes Standard & Poor's Financial Services, LLC ("Standard & Poor's") ratings for OneBeacon's reinsurers for its continuing insurance operations, excluding industry pools and associations, based upon reinsurance recoverable amounts on paid and unpaid losses and LAE:

	Balance at March 31, 2014		% of total
Standard & Poor's Rating(1):	($ in millions)
AA	$	26.1	31	%
A	51.7		62	%
BBB+, Not Rated and Other	5.3		7	%
Total reinsurance recoverables	$	83.1	100	%

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⁽¹⁾ Standard & Poor's ratings as detailed above are "AA" (Very strong), "A" (Strong) and "BBB+" (Adequate).