News Releases

Sovereign Announces Strategic Alliance with U.S.-based Insurer

Feb 27, 2007
1:00pm

    CALGARY/BOSTON, Feb. 27 /CNW/ - The Sovereign General Insurance Company
and OneBeacon Insurance Company are pleased to announce the signing of a
Strategic Alliance Agreement.
    The two companies have formed a strategic alliance regarding the
introduction of products to Canada for certain commercial segments. Policies
will be written under Sovereign's name and the two companies will share
equally in the underwriting results of the policies through a reinsurance
arrangement. This strategic alliance does not in itself require any specific
revenue or performance targets between the two companies, however both
insurers are confident that this venture will prove to be a valuable solution
to Canadian market needs. The initial product will target midsized technology
businesses.
    "This alliance was a natural," says Peter Parkin, Sovereign's Chief
Operating Officer. "We first started working with OneBeacon on cross-border
opportunities, helping one another's brokers place technology business in our
respective countries. We quickly realized the similarities in our business
philosophy and it only seemed natural we work together to explore further
opportunities. OneBeacon was keen to share their U.S. expertise and experience
with us on the chosen classes of business we will endeavor to write in
Canada."
    Drew Carnase, OneBeacon's Senior Vice President of Commercial Lines
states "We're delighted to be signing this agreement with Sovereign as we see
Canada as a great marketplace. Partnering with Sovereign enables OneBeacon to
offer our custom products that have been successful in the U.S. to Canadian
businesses. We look forward to enjoying the growth potential of a great
country by partnering with a professional and respected leader in commercial
insurance."

    About OneBeacon: OneBeacon Insurance Group offers 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 throughout the United States, and commercial and
personal lines are offered in select geographic territories.
    OneBeacon's principal business office is in Boston, Massachusetts. The
Company is publicly traded on the New York Stock Exchange under the symbol
"OB".

    About the Sovereign General: The Sovereign General Insurance Company is
headquartered in Calgary, Alberta and has been protecting Canadians for over
50 years. Sovereign specializes in insurance for commercial enterprises and
has annual gross premiums approaching $300 million. The Sovereign is a proud
member of The Co-operators group of companies.

For further information: Murray Houck, Assistant Vice President, The
Sovereign General Insurance Company, (403) 298-4288, murray.houck@sovgen.com;
Carmen Duarte, Corporate Communications, OneBeacon Insurance, (781) 332-7268,
cduarte@onebeacon.com

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