OneBeacon Urges Property Owners to Protect Against Copper Theft

May 19, 2008

CANTON, Mass. , May 19 /PRNewswire-FirstCall/ -- A single penny may be worth only 1 cent, but put enough of them together and their copper content can fetch between $3 and $4 a pound -- which is enough to entice thieves to steal not only pennies, but copper in every possible form.

"The New York Commodity Exchange (COMEX) reports that the price of copper pipe and tubing has risen by more than 250 percent in the last three years," said Charlie Sidoti , vice president of risk control services for OneBeacon Insurance Group. "And research by the International Copper Study Group indicates that prices are rising in large part because of the demand for raw material. Thieves steal copper pipe and tubing and resell it to certain salvage yards that readily accept the scrap with no questions asked."

According to Sidoti, thieves look for copper in almost every conceivable place, including commercial facilities, homes, construction sites, public parks, and roadways. And what do they look for?

-- Wiring, piping and electrical components in unsecured or vacant buildings and homes, electric transfer and distribution stations, street lamps, traffic control signals -- Gutters, flashing, and downspouts of historical buildings -- New wiring, piping and other components awaiting installation at construction sites -- Copper coils from air-conditioners and exterior HVAC units -- Works of art displayed in public parks, and at schools and cultural institutions

To protect this valuable resource, OneBeacon urges contractors and property owners to minimize the risk of theft by ...

-- Arranging for local law enforcement to drive by job sites periodically -- Meeting with construction crew management to review procedures for securing materials and equipment -- Arranging just-in-time delivery of copper materials, components and equipment; and avoiding storage of large quantities on-site or in warehouses -- Storing larger quantities of copper materials in secured buildings, storage containers or wire cages -- Developing and using an effective inventory management system to identify, measure and track copper materials and parts, and marking them with the company logo -- Recording the serial numbers of appliances and equipment that contain copper components -- When using trucks/trailers for on-site storage, securing them with King Pin locks and limiting access to the keys

"Commercial property owners should secure their locations with fencing, motion-sensing exterior lighting, intrusion detection connected to a UL-approved monitoring service, video surveillance, security/property management services, and locked steel cages for HVAC equipment," said Sidoti. "In addition, they should remove any unused fixed exterior ladders, stairs and other means of access -- except fire escapes, of course; and they should implement a formal visitor policy that includes log books. Residential and seasonal property owners can take similar steps to protect their properties."

OneBeacon Insurance Group's operating subsidiaries offer 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 countrywide, and commercial and personal lines are offered in select geographic territories.

OneBeacon's U.S. headquarters is in Canton, Massachusetts . The company is publicly traded on the New York Stock Exchange under the symbol "OB".

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to OneBeacon's:

-- growth in book value per share or return on equity; business strategy; -- financial and operating targets or plans; -- incurred loss and loss adjustment expenses and the adequacy of its loss and loss adjustment expense reserves and related reinsurance; -- projections of revenues, income (or loss), earnings (or loss) per share, dividends, market share or other financial forecasts; -- expansion and growth of our business and operations; and -- future capital expenditures.

These statements are based on certain assumptions and analyses made by OneBeacon in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:

-- claims arising from catastrophic events, such as hurricanes, earthquakes, floods or terrorist attacks; -- recorded loss and loss adjustment expense reserves subsequently proving to have been inadequate; -- the continued availability and cost of reinsurance coverage; -- the continued availability of capital and financing; -- general economic, market or business conditions; -- business opportunities (or lack thereof) that may be presented to it and pursued; -- competitive forces, including the conduct of other property and casualty insurers and reinsurers; -- changes in domestic or foreign laws or regulations, or their interpretation, applicable to OneBeacon, its competitors or its clients; -- an economic downturn or other economic conditions adversely affecting its financial position; -- other factors, most of which are beyond OneBeacon's control; and -- the risks that are described from time to time in OneBeacon's filings with the Securities and Exchange Commission, including but not limited to OneBeacon's Annual Report on Form 10-K for the fiscal year ended December 31, 2007 filed February 29, 2008.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by OneBeacon will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, OneBeacon or its business or operations. OneBeacon assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE OneBeacon Insurance Group

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