OneBeacon Insurance Group (OB)

Perquisites

        Because of our belief in emphasizing performance-based compensation, we generally do not offer perquisites to our executive officers other than as described below and in the Summary Compensation Table on page 23 of this proxy statement. The perquisites that we offer our executives primarily consist

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of housing/relocation allowance and related tax reimbursements. None of our NEOs received housing or relocation benefits during 2008.

        We also allow Mr. Miller to use corporate aircraft for personal reasons. Approved trips are considered a perquisite and $124,282, representing the actual out-of-pocket cost to the Company of the personal flights, is included in Mr. Miller's total compensation in the Summary Compensation Table on page 23. At its February 26, 2008 meeting, the Committee formalized its previous informal arrangement with Mr. Miller by establishing an annual cap on such trips of $125,000. Other trips are reimbursed by Mr. Miller at their full cost to the Company and are not considered a perquisite. From time to time, an executive officer may take his spouse or other family members with him on a business trip. In this instance, we do not include the aggregate incremental cost to the Company to provide that portion of the flight in the executive's total compensation in the Summary Compensation Table because the additional passenger(s) do not increase the aggregate incremental cost of the flight. However, we impute to the executive's income the Standard Industry Fare Classification (SIFL) amount for the spouse and/or family's flight as required by the Internal Revenue Code.

        No other named executive officer used corporate aircraft for personal reasons in 2008.

        Our executive officers also participate in other employee benefit plans on the same terms as our other employees. These plans include health insurance, life insurance and charitable gift matching.

Perquisites

        Because of our belief in emphasizing performance-based compensation, we generally do not offer perquisites to our executive officers other than as described below and in the Summary Compensation Table on page 21 of this proxy statement. The perquisites that we offer our executives primarily consist of housing/relocation allowance and related tax reimbursements.

        We also allow Mr. Miller to use corporate aircraft for personal reasons. These trips are considered a perquisite and $138,214, representing the actual out-of-pocket cost to the Company of the personal flights, is included in Mr. Miller's total compensation in the Summary Compensation Table on page 21. Other personal trips were reimbursed by Mr. Miller at their full cost to the Company and are not considered perquisites. At its February 26, 2008 meeting, the Committee reconfirmed its authorization for Mr. Miller to use corporate aircraft for personal reasons and also established an annual cap on such trips of $125,000. From time to time, an executive officer may take his or her spouse or other family members with him on a business trip using corporate aircraft. In this instance, we do not include the aggregate incremental cost to the Company to provide that portion of the flight in the executive's total compensation in the Summary Compensation Table because the additional passenger(s) do not increase the aggregate incremental cost of the flight. However, we impute to the executive's income the Standard Industry Fare Classification (SIFL) amount for the spouse and/or family's flight as required by

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the Internal Revenue Code. No other Named Executive Officer used corporate aircraft for personal reasons in 2007.

        Our executive officers also participate in other employee benefit plans on the same terms as our other employees. These plans include medical and health insurance, life insurance and charitable gift matching.

Perquisites

Because of our belief in emphasizing performance-based, long-term compensation, we generally do not offer perquisites to our executive officers other than as described below and in the Summary Compensation Table on page 19 of this proxy statement. The perquisites that we offer to our executives primarily consist of housing/relocation allowance, subsidized parking and related tax reimbursements. The Committee intends to review the Company’s perquisite policy at a future meeting in 2007 as part of its overall executive compensation review.

We also allow Mr. Miller to use corporate aircraft for personal reasons where the added security or convenience is warranted. Approved trips are considered a perquisite and the aggregate incremental cost to the Company of the personal flights is included in Mr. Miller’s total compensation in the Summary Compensation Table on page 19. Other trips are reimbursed by Mr. Miller at their full, incremental cost and are not considered a perquisite. From time to time, an executive officer may take his spouse or other family members with him on a business trip. In this instance, we do not include the aggregate incremental cost to the Company to provide that portion of the flight in the executive’s total compensation in the Summary Compensation Table because the additional passenger(s) do not increase the aggregate incremental cost of the flight. However, we impute to the executive’s income the Standard Industrial Fare Classification (SIFL) amount for the spouse and/or family’s flight as required by the Internal Revenue Code. Imputed amounts, as well as related tax reimbursements, are included in the “Other Compensation column in the Summary Compensation Table on page 19. During 2006, Mr. Miller had $91,752 of aggregate incremental cost for personal use of corporate aircraft, shown in the “All Other Compensation” column of the Summary Compensation Table. No other named executive officer used corporate aircraft for personal reasons in 2006.

Our executive officers also participate in other employee benefit plans on the same terms as our other employees. These plans include medical and health insurance, life insurance and charitable gift matching.