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Exhibit 10.3.2    
    

FORM OF AMENDMENT NUMBER ONE TO INVESTMENT MANAGEMENT

AGREEMENT  

        This AMENDMENT NUMBER ONE dated as of [        ] to the Investment Management
Agreement ("Agreement") dated as of November 14, 2006, originally made by and among Prospector Partners, LLC, a Delaware limited liability company (the "Adviser"), and OneBeacon
Insurance Group, Ltd, a Bermuda corporation ("the Client"). Per the terms of the Agreement, the Adviser has agreed to act as discretionary adviser with respect to the specified assets of the
investment management clients of the Client identified on Schedule A to the Agreement. Capitalized terms used but not defined herein have the
meaning set forth in the Agreement. 

WITNESSETH  

        WHEREAS, the Adviser and Client are parties ("Parties") to the Agreement; and 

        WHEREAS,
pursuant to the terms of paragraph 17 of the Agreement, the Parties may amend the Agreement in writing; and 

        WHEREAS,
the Adviser and the Client desire to amend the Agreement to modify certain terms to the Agreement, including (i) the confidential relationship paragraph and (ii)certain
clients of the client identified in Schedule A and Schedule D to the Agreement. 

        NOW,
THEREFORE, the Parties agree as follows: 

        (i)
Paragraph 9—Confidential Relationship of the agreement shall be deleted in its entirety and replaced with the following: 

        9.    Confidential Relationship.    

	(a)
	The
Parties hereby agree that all of the information provided to the Client by the Advisor and to the Advisor by the Client shall be considered proprietary and confidential in nature
(hereinafter, the "Confidential Information") and, as such, shall not be disclosed or revealed or caused to be disclosed or revealed, in any manner, to any non-party to this Agreement,
except:

	(i)
	as
may be required by law or any judicial, regulatory or self-regulatory authority (including without limitation any required filing with the SEC or any
state insurance regulator), provided that notice of any such disclosure is at the time sent to the other party, except that no notice will be required for routine SEC or department of insurance
filings or routine state department of insurance financial or market conduct exams,

	(ii)
	as
the either party may consent to specifically in advance in writing; provided, however, that

	(iii)
	any
such Confidential Information may be disclosed to each party's officers, directors, employees, consultants, contractors, advisors, and fiduciaries
("Representatives") who need to know such information in order to carry out the purpose of the disclosure and so long as they agree to keep it confidential;

	(iv)
	"Confidential
Information" does not include any information which (A) is or subsequently becomes published or
available to the public other than by breach of this Agreement, (B) is received by receiving party from a non-party not in breach of any obligation of confidentiality, (C) is
independently developed by receiving party, 

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or
(D) was in receiving party's possession or known to receiving party before disclosing party disclosed it to receiving party except for Client's investments subject to subsection (v)
below; and 

	(v)
	Advisor
Confidential Information does not include the identification of the Client as a Client or a Client's investments as of a given point in time which are required
to be disclosed together with investments of Advisor's other clients to comply with applicable federal securities laws (which is consistent with (iv) (A) above).

	(b)
	The
Client agrees that:

	(i)
	Adviser
may disclose that the Client is a client of the Adviser and to the inclusion of the Client on a list of representative clients of the Adviser or in other
marketing materials;

	(ii)
	Adviser
shall be permitted to retain copies of all documentation necessary under the Advisers Act to support the track record or otherwise required to be retained under
the Advisers Act and related rules, but only for such period as required to be retained under applicable federal securities laws; and

	(iii)
	The
Client shall not allow the Confidential Information to be used to purchase, sell, trade or invest in any securities, instruments or other investments owned by the
Account without obtaining the prior written consent of the Advisor, unless such consent is impossible or impractical due to an event of force majeure that interferes with Advisor's performance under
this Agreement; and further acknowledges that:

	(iv)
	The
Advisor or its affiliates may be irrevocably damaged if the covenants herein are not specifically enforced and, accordingly, the Client hereby further agrees that,
in addition to any other relief or remedies available to the Advisor, the Advisor shall be entitled to seek an appropriate injunction or other equitable remedy from a court with proper jurisdiction
for the purposes of restraining the Client from any actual or threatened breach of such covenant, and no bond or security will be required in connection therewith. In any event, the Client shall be
responsible for any breach of this Agreement by any of the Client's Representatives, and the Client agrees, at its sole expense, to take all reasonable measures (including, without limitation, court
proceedings) to restrain its Representatives from prohibited or unauthorized disclosure or use of the Confidential Information or any other breach of the terms of this Agreement.

	(c)
	Advisor
agrees that:

	(i)
	the
Client shall be permitted to report the Investment Track Record (on a stand-alone basis, as part of its total portfolio return or otherwise) with respect to the
Investment Account in any internal or external reports of it or its affiliates; and 

        (ii)
Schedules A and D of the agreement shall be deleted in their entirety and replaced with Schedules A and D attached to this amendment. 

        The
Agreement shall otherwise be unaffected by this Amendment and its terms shall continue as set forth therein. 

[SIGNATURE
PAGE FOLLOWS] 

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SCHEDULE A  

SUBSIDIARIES OF ONEBEACON INSURANCE GROUP, LTD. SUBJECT TO THE

INVESTMENT MANAGEMENT AGREEMENT DATED NOVEMBER 14, 2006 AND

AMENDED OCTOBER 22, 2007  

Fund
American Companies, Inc.

The Employers' Fire Insurance Company

Homeland Insurance Company of New York

The Northern Assurance Company of America

OneBeacon America Insurance Company

OneBeacon Insurance Company

Pennsylvania General Insurance Company

Fund American Enterprises Holdings, Inc.

Fund American Financial Services, Inc.

OneBeacon Holdings (Luxembourg) S.a.r.l.

Mill Shares Holdings (Bermuda) Ltd 

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SCHEDULE D  

CLIENTS OF PROSPECTOR PARTNERS, LLC SUBJECT TO FEE SCHEDULE SET

FORTH IN SCHEDULE C  

Fund
American Companies, Inc.

The Employers' Fire Insurance Company

Homeland Insurance Company of New York

The Northern Assurance Company of America

OneBeacon America Insurance Company

OneBeacon Insurance Company

Pennsylvania General Insurance Company

OneBeacon Insurance Pension Plan

OneBeacon Insurance Savings Plan—Equity 401k

OneBeacon Insurance Savings Plan—Fully Managed

Fund American Enterprises Holdings, Inc.

Fund American Financial Services, Inc.

OneBeacon Holdings (Luxembourg) S.a.r.l.

Mill Shares Holdings (Bermuda) Ltd 

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        IN
WITNESS WHEREOF, the Parties hereto have executed this Amendment Number ONE to the Agreement. 

	ADVISER:

PROSPECTOR PARTNERS, LLC	 	CLIENT:

ONEBEACON INSURANCEGROUP,

LTD.
	 	 	 	 	 
	Signed:	 
	 	Signed:	 

	By:	 
	 	By:	Paul M. McDonough

	Title:	 
	 	Title:	Chief Financial Officer

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Exhibit 10.4.5    
    

ONEBEACON'S 2007 MANAGEMENT INCENTIVE PLAN  

Purpose  

        The Management Incentive Plan (MIP) is an integral part of the total compensation program for managers and certain senior key individual contributors. Its primary
purpose is to focus attention on 2007 profitability goals and to reward eligible participants for the achievement of those goals. 

Eligibility  

        The Plan is limited to home office and field office senior staff who have a significant impact on OneBeacon's operating results. 

Target Awards  

        Target awards for all participants are expressed as a percent of salary 

Performance Measure  

        The Corporate MIP pool will be established based upon achievement of a 96% GAAP combined ratio for total OneBeacon operations and the following additional
non-combined ratio objectives: 

	•
	Achieve
Net Written Premium Growth of 5% (all in) or better while maintaining underwriting discipline and ensuring pricing adequacy.

	•
	Drive
expense ratio improvement towards the ultimate target of 3% gain by 2009 and assess progress made towards goal by the end of 2007.

	•
	Complete
transactions / acquisitions that build long-term economic value for OneBeacon.

	•
	Continue
to manage aggregate catastrophic exposures for wind, earthquake, flood and terrorism and ensure adherence to our strategy of being a low to moderate risk company. 

        The
measurement against these goals will be used to establish a pool of money to be allocated to business units and Home Office departments. At a corporate combined ratio of 96%, the
plan will fund an amount equal the sum of each of the plan's participant's potential award at their target bonus percentage. The OneBeacon Insurance Group, Ltd. Compensation Committee (the
"Compensation Committee") may adjust the size of the pool based on under or over achievement of the company's target combined ratio and other objectives at its sole discretion. 

Individual Awards  

        Each business unit will be judged against a number of metrics including, where appropriate, a combined ratio target, agreed to in advance with the President of
OneBeacon. Generally these targets will relate to the aggregate financial plan rolled up by branch and line of business, but the targets will
not always match the plan (in many cases, the targets are more aggressive). If the combined ratio target is achieved, in conjunction with other business metrics, the business may be awarded 100% of
its indicated share of the corporate pool. Businesses failing to reach target may or may not, at the discretion of the President, receive a reduced, partial allocation of the pool. Businesses
exceeding objectives may receive greater than 100% of indicated allocation. In no event will the sum of the performance adjusted business unit pools be greater than the performance adjusted company
pool as authorized by the Compensation Committee. 

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        Within
each business, it will be the prerogative of the business leader, with guidance from and after consultation with the company President, to further allocate the business' pool
amount to the constituent branches, lines of business and individuals, based upon performance against targets established within the business. It will be the responsibility of the business leader,
with guidance from the President, to establish appropriate targets for the constituent branches, lines of business, departments, or individuals at the outset of the MIP year. 

        For
corporate or administrative functions that support all or multiple regions or businesses, MIP individuals will receive allocations from the corporate pool based upon attainment of
their department and individual MIP goals for 2007. 

        Review
and evaluation of performance will be conducted, and incentive payments will be paid, not later than 21/2 months following the end of the plan year. In all cases,
no payment will be made until the Compensation Committee approves the overall corporate performance factor and performance adjusted MIP pool and no payment will be made to the CEO or any of the other
executive officers without specific approval from the Committee. 

        The
salary used to determine the amount of the individual awards will be that in effect at the end of the plan year (12/31/07). 

Plan Participation for New Hires  

        Employees hired during the plan year are eligible to participate in the MIP. Awards will be pro-rated specifically based on date of hire. 

Payment of Awards  

        Unless payment is deferred in accordance with an election made by the participant in accordance with procedures adopted by OneBeacon Insurance Company, payment of
any MIP award shall be made by the Company no later than 21/2 months after the end of the Company's fiscal year in which such MIP award is earned, but in any event not prior to the
Compensation Committee's review and evaluation of performance results following the end of the plan year. 

Special Circumstances  

        The OneBeacon Compensation Committee may, in its sole discretion, also recognize extraordinary conditions or circumstances in determining payment levels. 

        In
the event of termination prior to the payment of awards, no incentive payments will be made. However, in the event of retirement or reduction in force at or after the end of the plan
year, but before payment is made, incentive payments may be made if approved by the senior business leader. These exceptions will be made on a case by case basis. In the event of death or disability,
the plan participant or beneficiary may be considered for a partial award payment. 

        In
no way does eligibility in this plan imply an obligation of payment on the part of OneBeacon nor should it be construed as a promise of continued employment. 

Effect on Benefit Plans  

        Amounts paid under the terms of this plan will not be counted for purposes of determining compensation under any employee benefit plan sponsored by OneBeacon. 

Plan Continuation  

        Notwithstanding any of the aforementioned, the plan may be amended or terminated, in whole or in part, at any time, by the Compensation Committee. 

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Exhibit 10.4.5

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