Fitch: White Mountains on watch

Fitch Ratings said it has placed on rating watch negative the BBB+ issuer default ratings of White Mountains Insurance Group, Ltd., its wholly owned intermediate holding company, White Mountains Re Group, Ltd., and its 75.5% owned intermediate holding company, OneBeacon U.S. Holdings, Inc.

In addition, Fitch said it has placed on rating watch negative the BBB senior debt ratings of White Mountains Re and OB Holdings.

Fitch noted that it has also affirmed the following insurer financial strength ratings: OneBeacon Insurance Group at A; White Mountains Reinsurance Co. of America at A-; Sirius International Insurance Corp. at A-; and White Mountains Re Bermuda Ltd. at A.

Fitch said it has revised the outlook on all insurer financial strength ratings to negative from stable.

According to the agency, the rating watch negative on all issuer default ratings and debt ratings reflects Fitch's view of increased risk following the significant 38% decline in shareholders' equity to $2.9 billion on Dec. 31, which increased financial leverage to a debt-to-total-capital ratio of 28% at year-end 2008, up from 21% on Dec. 31, 2007.

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