A fully prognostic coupled ice-ocean model is described. The ice model is based on the elastic-plastic constitutive law with ice mass and compactness described by distribution functions. The ice thermodynamics model is applied individually to each ice thickness category. Advection of the ice partial mass and concentrations is parameterized by a fourth-order algorithm that conserves monotonicity of the solution. The ocean is described as a three-dimensional time-dependent baroclinic model with free surface. The coupled model is applied to establish the Arctic Ocean seasonal climatology using fully prognostic models for ice and ocean. Results reflect the importance of the ice melting/freezing in the formation of the thermohaline structure of the upper ocean layer.