SEC Contract Filing

Filing Date: 2015-02-27

Document Content:
<DOCUMENT>
<TYPE>EX-10.5.2
<SEQUENCE>7
<FILENAME>ob12312014ex1052.htm
<DESCRIPTION>EXHIBIT 10.5.2
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 <title>OB 12.31.2014 EX 10.5.2</title>
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<a name="s0B213DBC86FA56695DF8B993B338F290"></a><div><div style="line-height:120%;text-align:right;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Exhibit 10.5.2</font></div></div><br><div style="line-height:120%;padding-bottom:24px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">ONEBEACON&#8217;S 2014 MANAGEMENT INCENTIVE PLAN</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Purpose</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">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 2014 profitability goals and to reward eligible participants for the achievement of those goals. </font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Eligibility</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The Plan is limited to senior staff who have a significant impact on OneBeacon&#8217;s operating results. </font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Target Awards</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Target awards for all participants are expressed as a percent of salary. </font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Performance Measures</font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The corporate MIP pool will be established primarily based upon achievement of solid financial and economic performance. The OneBeacon Insurance Group, Ltd. Compensation Committee (the &#8220;Compensation Committee&#8221;) set the 2014 MIP primary performance objective at a 93.4% (including parent company expenses) adjusted combined ratio, a secondary goal of Growth in Book Value Per Share (GBVPS) of 13.5%, together with additional strategic objectives. The combined ratio and GBVPS goals represent appropriately challenging performance goals for the 2014 MIP. The other performance goals are consistent with the Company&#8217;s strategic and operational objectives and include closing on the sale of Runoff, and other business operations and capital management objectives. Substantially meeting these objectives will yield an expected payment at or near target.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The Compensation Committee may adjust the size of the pool based on under- or over-achievement of the Company&#8217;s target combined ratio and other objectives at its sole discretion. </font></div><div style="line-height:120%;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">Individual Awards</font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Each business unit will be judged against a number of performance metrics including, where appropriate, a combined ratio target. Generally these metrics will relate to the aggregate financial plan rolled up by line of business. If the financial metrics are achieved, in conjunction with other business metrics, the business may be awarded 100% of its indicated share of the corporate pool. Businesses failing to meet goals may or may not, at the discretion of the CEO, 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-adjustment business unit pools be greater than the performance-adjusted Company pool as authorized by Compensation Committee. </font></div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Within each business, it will be the prerogative of the business leader, with guidance from and after consultation with the CEO, to further allocate the business&#8217; pool amount to the constituent branches, lines of business and individuals, based upon performance.</font></div><br><div><div style="line-height:120%;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">1</font></div><div style="line-height:120%;text-align:left;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br></font></div></div><hr style="page-break-after:always"><a name="s0B213DBC86FA56695DF8B993B338F290"></a><div></div><br><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">For corporate