Ratings agency AM Best has put the financial strength rating of the parent of OneBeacon Insurance Group under review with positive implications following the announcement of its impending sale to Canadian insurer Intact Financial Corporation.

OneBeacon’s financial strength rating is A (Excellent) and AM Best made the same judgment on its long-term issuer credit ratings of “a”.

Island-based parent company White Mountains said this week has struck a $1.7 billion deal to sell OneBeacon to Intact.

AM Best said the OneBeacon review “reflects the potential financial and operational benefits that will be derived from IFC’s being a larger, higher-rated organisation”.