|
|
 | | | |
- close
- close
- close
- close
OneBeacon Insurance Group (OB) |
Suggest other news sources for this topic
WIKI ANALYSIS
Company Overview
OneBeacon Insurance Group. (NYSE:OB) provides property and casualty insurance through independent agencies, regional and national brokers, wholesalers, and managing general agencies. Based in Minnetonka, Minnesota, the Company provides services primarily throughout the United States. Recently, OneBeacon has benefited from the emergence of new insurable markets and the increased quality of information collected for its predictive models. In FY2010, OneBeacon sold its personal lines business, an underperforming segment, to Tower Group and used the proceeds to reduce its long term debt. [1]
Business Growth
In FY2010, OneBeacon Insurance Group recorded revenues of $1688.5 million. [2]The company's growth was a result of the growth in its specialty insurance lines. OneBeacon's specialty insurance lines are targeted towards niche businesses such as alternative energy, allowing OneBeacon to dominant the specific markets.
Trends and Forces
Emergence of New Technologies Create New Niches for OneBeacon
With the rapid creation of new technologies and markets, such as the Renewable Energy market, OneBeacon has the opportunity to enter these niche markets as the dominant insurance provider. In 2009, OneBeacon introduced a new business segment, the OneBeacon Energy Group, which focuses on providing insurance to upstream and midstream mid-market energy risks as well as renewable energy sources. [3]New markets such as the alternative energy market will increase their demand for insurance as their markets grow, increasing the demand for OneBeacon's insurance products.
New Sources of Data Improves Insurance Models
As more relevant data is being collected from the Internet, Smart phone, personal sensors, and onboard monitoring devices, the property and casualty insurance industry gains more accurate inputs for predictive modeling. While OneBeacon has benefited from this improvement in data quality, its competitors have benefited as well. These new sources of data are one of the factors that are decreasing gross margins in the industry, as predictive models become more accurate and insurance firms compete more on price. [4]
Competition
OneBeacon competes with insurance firms who offer property and casualty insurance in the United States.
- Mercury General (MCY) is a provider of homeowners insurance, mechanical breakdown insurance, fire insurance, umbrella insurance, and automobile insurance, and property insurance. Mercury General primarily competes with OneBeacon in the state of California. [5]
- Arch Capital Group (ACGL) is a provider of insurance and reinsurance in the United States, Europe, Canada, Australia and South Africa. [6]
- HCC Insurance Holdings (HCC) is a provider of specialty insurance in United States, the United Kingdom, Spain and Ireland. Types of insurance offered includes property and casualty, accident, health, credit, and aviation. [7]
References
- ↑ Global Data Research Report, April 2011
- ↑ Global Data Research Report, April 2011
- ↑ Global Data Research Report, April 2011
- ↑ [Global Insurance Center: US Property/Casualty Insurance Industry, January 2011 | http://www.ey.com/Publication/vwLUAssets/2011_US_property_casualty_outlook/$FILE/US_property_casualty_outlook.pdf]
- ↑ Hoover's MCY
- ↑ Hoover's ACGL
- ↑ Hoover's HCC
| |||||||
