HAMILTON, Bermuda, Feb. 7, 2025
/PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM)
reported book value per share of $1,746 and adjusted book value per share of
$1,834 as of December 31, 2024. Book value per share and
adjusted book value per share both decreased 3% in the fourth
quarter of 2024 and increased 6% and 8%, respectively, in the year
ended December 31, 2024, including
dividends.
Manning Rountree, CEO, commented, "ABVPS was down 3% in the
quarter, driven primarily by mark-to-market declines in our
investment portfolio, including our position in MediaAlpha.
On a full-year basis, ABVPS was up 8%, driven by solid results at
our operating companies and positive returns in our investment
portfolio. In the quarter, Ark produced a 77% combined ratio
and $264 million of gross written
premiums, up 14% year-over-year. HG Global generated
$18 million of gross written
premiums, driven by strong primary market volume at BAM. Kudu
had a tough quarter, impacted by rising interest rates and a
strengthening dollar, but delivered solid results for the full year
and saw the value of its portfolio of participation contracts cross
the $1 billion threshold.
Bamboo had another strong quarter, with managed premiums and
adjusted EBITDA up significantly year-over-year. MediaAlpha's
share price declined 38% in the quarter, producing a $122 million mark-to-market loss on our
position. Excluding MediaAlpha, investment returns were down
slightly in the quarter but up 6.5% for the year, a solid
result. Undeployed capital stands at roughly $700 million, including the proceeds of our
recent debt recap at Bamboo."
Comprehensive income (loss) attributable to common shareholders
was $(131) million and $230 million in the fourth quarter and year ended
December 31, 2024 compared to
$288 million and $511 million in the fourth quarter and year ended
December 31, 2023. Results in
the fourth quarter and year ended December
31, 2024 included $(122)
million and $38 million of net
realized and unrealized investment gains (losses) from White
Mountains's investment in MediaAlpha compared to $66 million and $27
million of unrealized investment gains in the fourth quarter
and year ended December 31,
2023.
Ark/WM Outrigger
The Ark/WM Outrigger segment's combined ratio was 77% and 82% in
the fourth quarter and year ended December
31, 2024 compared to 69% and 80% in the fourth quarter and
year ended December 31, 2023.
Ark/WM Outrigger reported gross written premiums of $264 million and $2,207
million, net written premiums of $239
million and $1,679 million and
net earned premiums of $415 million
and $1,588 million in the fourth
quarter and year ended December 31,
2024 compared to gross written premiums of $232 million and $1,898
million, net written premiums of $215
million and $1,521 million and
net earned premiums of $362 million
and $1,410 million in the fourth
quarter and year ended December 31,
2023.
Ark's combined ratio was 77% and 83% in the fourth quarter and
year ended December 31, 2024 compared
to 70% and 82% in the fourth quarter and year ended December 31, 2023. Ark's combined ratio
included 27 points of catastrophe losses in the fourth quarter of
2024, driven primarily by Hurricanes Milton and Helene, compared to
negligible new catastrophe losses in the fourth quarter of
2023. Ark's combined ratio included 13 points of catastrophe
losses in the year ended December 31,
2024, driven primarily by Hurricanes Milton, Helene, Debby
and Beryl, compared to two points of catastrophe losses in the year
ended December 31, 2023, driven
primarily by Hurricanes Otis and Idalia as well as the Maui wildfires. Ark's combined ratio
included seven points and four points of net favorable prior year
development in the fourth quarter and year ended December 31, 2024 compared to two points of net
unfavorable prior year development in both the fourth quarter and
year ended December 31, 2023.
Net favorable development for the fourth quarter of 2024 was driven
primarily by the specialty line of business. Net favorable
development for the year ended December 31,
2024 was driven primarily by specialty and property lines of
business. Net unfavorable development for the fourth quarter
and year ended December 31, 2023 was
driven primarily by Hurricane Ian and Winter Storm Elliott.
Ark reported gross written premiums of $264 million and $2,207
million, net written premiums of $234
million and $1,593 million and
net earned premiums of $389 million
and $1,500 million in the fourth
quarter and year ended December 31,
2024 compared to gross written premiums of $232 million and $1,898
million, net written premiums of $213
million and $1,411 million and
net earned premiums of $334 million
and $1,305 million in the fourth
quarter and year ended December 31,
2023.
Ark reported pre-tax income of $51
million and $253 million in
the fourth quarter and year ended December
31, 2024 compared to $109
million and $249 million in
the fourth quarter and year ended December
31, 2023. Ark's results included net realized and
unrealized investment gains (losses) of $(34) million and $50
million in the fourth quarter and year ended December 31, 2024 compared to $50 million and $86
million in the fourth quarter and year ended December 31, 2023.
Ian Beaton, CEO of Ark, said,
"Ark had a good quarter and full year, producing combined ratios of
77% and 83%, respectively. Full year gross written premiums
were $2.2 billion, up 16%
year-over-year, aided by new underwriting teams and products.
In November, AM Best affirmed Ark's 'A/stable' financial strength
rating. Although the rate environment is moderating, we
continue to see opportunities for profitable growth in 2025."
WM Outrigger Re's combined ratio was 86% and 60% in the fourth
quarter and year ended December 31,
2024 compared to 55% and 44% in the fourth quarter and year
ended December 31, 2023.
Catastrophe losses in 2024 included Hurricanes Milton, Helene,
Debby and Beryl. Major catastrophe losses affecting WM
Outrigger Re in 2023 were minimal. WM Outrigger Re reported
gross and net written premiums of $5
million and $87 million and
net earned premiums of $25 million
and $88 million in the fourth quarter
and year ended December 31, 2024
compared to gross and net written premiums of $2 million and $110
million and net earned premiums of $29 million and $104
million in the fourth quarter and year ended December 31, 2023. Net earned premiums in
the year ended December 31, 2024
decreased due to White Mountains's lower capital commitment to WM
Outrigger Re in 2024 compared to 2023.
WM Outrigger Re reported pre-tax income of $6 million and $46
million in the fourth quarter and year ended December 31, 2024 compared to $16 million and $69
million in the fourth quarter and year ended December 31, 2023. During the fourth
quarter of 2024, Ark renewed Outrigger Re Ltd. for the 2025
underwriting year. White Mountains's total commitment toward
the 2025 underwriting year is $150
million.
The California wildfires
represent a significant industry loss event in the first quarter of
2025. Industry estimates are still preliminary and range
widely. Ark/WM Outrigger will have exposure to this event
primarily through the property line of business. There is also
potential for limited specialty and excess casualty claims over
time. Ark does not participate on the reinsurance program
backing the California FAIR plan. At this time, Ark does not
expect the wildfire losses will cause full year 2025 actual
catastrophe losses for Ark/WM Outrigger to diverge materially from
2025 planned catastrophe losses.
HG Global
HG Global reported gross written premiums of $18 million and $52
million and earned premiums of $7
million and $29 million in the
fourth quarter and year ended December 31,
2024 compared to gross written premiums of $18 million and $50
million and earned premiums of $7
million and $26 million in the
fourth quarter and year ended December
31, 2023. HG Global reported gross written premiums
net of ceding commission paid of $13
million and $37 million in the
fourth quarter and year ended December 31,
2024 compared to $13 million
and $35 million in the fourth quarter
and year ended December 31,
2023. HG Global's total par value of policies assumed, which
represents its first-loss exposure on policies assumed from BAM,
was $940 million and $2,952 million in the fourth quarter and year
ended December 31, 2024 compared to
$762 million and $2,356 million in the fourth quarter and year
ended December 31, 2023. HG
Global's total gross pricing was 190 and 177 basis points in the
fourth quarter and year ended December 31,
2024 compared to 239 and 213 basis points in the fourth
quarter and year ended December 31,
2023.
HG Global reported pre-tax income (loss) of $(20) million and $(66)
million in the fourth quarter and year ended December 31, 2024 compared to $34 million and $56
million in the fourth quarter and year ended December 31, 2023. HG Global's results
included net realized and unrealized investment gains (losses) of
$(20) million and $(6) million in the fourth quarter and year ended
December 31, 2024 compared to
$25 million and $14 million in the fourth quarter and year ended
December 31, 2023, driven by the
movement of interest rates. HG Global's results in the year
ended December 31, 2024 included the
unrealized loss on deconsolidation of BAM of $115 million related to the fair value of the BAM
surplus notes. In addition, HG Global's results in the fourth
quarter of 2024 included a $15
million decrease in the fair value of the BAM surplus notes,
which was driven by the increase in market interest rates.
The fair value of the BAM surplus notes was $382 million as of December 31, 2024 compared to $411 million as of September 30, 2024. The decrease of
$29 million in the fourth quarter of
2024 was driven by a $22 million cash
payment of principal and interest and the $15 million decrease in fair value, partially
offset by $8 million of accrued
interest.
Kevin Pearson, President of HG
Global, said, "HG Global recorded a strong quarter to close out the
year, with a record quarter for par value assumed, as annual new
issuance of municipal bonds exceeded $500
billion for the first time. For the full year, gross
written premium assumed grew 5%, driven by strong primary market
volume, partially offset by lower primary market pricing and lower
secondary market activity."
BAM, and in turn HG Global, does not expect any impact to its
portfolio of insured municipal credits from the recent California wildfires.
We encourage you to read BAM's fourth quarter statutory
financial statements and operating supplement, which are expected
to be available in mid-February on BAM's website at
https://bambonds.com/about-bam/credit-rating-and-finanical-information/.
Kudu
Kudu reported total revenues of $(9)
million, pre-tax loss of $20
million and adjusted EBITDA of $14
million in the fourth quarter of 2024 compared to total
revenues of $88 million, pre-tax
income of $75 million and adjusted
EBITDA of $22 million in the fourth
quarter of 2023. Total revenues, pre-tax income (loss) and
adjusted EBITDA included $17 million
of net investment income in the fourth quarter of 2024 compared to
$27 million in the fourth quarter of
2023. Net investment income in the fourth quarter of 2023
included a $12 million realization of
carried interest for one of Kudu's participation contracts.
Total revenues and pre-tax income (loss) also included $(26) million of net realized and unrealized
investment gains (losses) in the fourth quarter of 2024 compared to
$61 million in the fourth quarter of
2023.
Kudu reported total revenues of $119
million, pre-tax income of $81
million and adjusted EBITDA of $55
million in the year ended December
31, 2024 compared to total revenues of $177 million, pre-tax income of $137 million and adjusted EBITDA of $57 million in the year ended December 31, 2023. Total revenues, pre-tax
income and adjusted EBITDA included $67
million of net investment income in the year ended
December 31, 2024 compared to
$71 million in the year ended
December 31, 2023. Total
revenues and pre-tax income also included $51 million of net realized and unrealized
investment gains in the year ended December
31, 2024 compared to $106
million in the year ended December
31, 2023.
Rob Jakacki, CEO of Kudu, said,
"Kudu proved resilient in a tough fourth quarter and delivered
solid full year results. The fair value of Kudu's continuing
portfolio declined 3% in the quarter, impacted by rising interest
rates and a strengthening U.S. dollar. For the full year,
Kudu produced a return on equity of 9% and annualized adjusted
EBITDA of $61 million. We are
pleased to have closed two new capital deployments in the quarter:
Revelation Partners and RiverNorth Capital. Kudu's portfolio
value has now surpassed the $1
billion milestone, and we continue to pursue a robust
pipeline in 2025."
Bamboo
Bamboo reported commission and fee revenues of $37 million and $135
million and pre-tax income of $10
million and $33 million in the
fourth quarter and year ended December
31, 2024. Bamboo reported MGA pre-tax income of
$11 million and $32 million and MGA adjusted EBITDA of
$16 million and $53 million in the fourth quarter and year ended
December 31, 2024.
Managed premiums, which represent the total premiums placed by
Bamboo, were $127 million and
$484 million in the fourth quarter
and year ended December 31, 2024
compared to $75 million and
$215 million in the fourth quarter
and year ended December 31,
2023. The increase in managed premiums was driven primarily
by growth in new business volume as well as a growing renewal
book.
John Chu, CEO of Bamboo, said,
"Bamboo had a strong fourth quarter to close out an excellent year.
For the full year, managed premiums more than doubled to
$484 million, and MGA adjusted EBITDA
grew to $53 million, up seven-fold
year-over-year. We expect to see continued growth in 2025, although
our immediate focus is on supporting our policyholders impacted by
the wildfires in Los Angeles."
Given its focus on the residential property market in
California, Bamboo has exposure to
the recent California
wildfires. Bamboo does not expect the wildfires will have a
material impact on its MGA earnings in the first quarter of
2025. Bamboo's fronted programs will incur losses, which are
estimated to be well within the reinsurance limits supporting those
programs. The bulk of the losses will therefore be absorbed
by Bamboo's catastrophe excess of loss and quota share reinsurance
partners. Bamboo's captive insurance company will retain a
share of the losses, which Bamboo expects to be capped at roughly
$3 million. The treaty year for
Bamboo's largest MGA program renews on April 1. The impact of
this event on go-forward primary market conditions and reinsurance
renewal terms and conditions is yet to be determined, with a number
of forces at work.
On January 24, 2025, Bamboo
received the proceeds of a new $110
million, six-year term loan credit facility. In turn,
Bamboo paid an $84 million cash
dividend to shareholders, of which $61
million was paid to White Mountains. During the fourth
quarter of 2024, Bamboo paid White Mountains $18 million in cash dividends.
MediaAlpha
As of December 31, 2024, White
Mountains owned 17.9 million shares of MediaAlpha, representing a
27% basic ownership interest (25% on a
fully-diluted/fully-converted basis). As of December 31, 2024, MediaAlpha's share price was
$11.29 per share, which decreased
from $18.11 per share as of
September 30, 2024. The carrying value of White
Mountains's investment in MediaAlpha was $202 million as of December 31, 2024 compared to $323 million as of September 30, 2024.
At our current level of ownership, each $1.00 per share increase or decrease in the share
price of MediaAlpha will result in an approximate $7.00 per share increase or decrease in White
Mountains's book value per share and adjusted book value per
share.
We encourage you to read MediaAlpha's fourth quarter earnings
release and related shareholder letter scheduled for February 24, 2025, which will be available on
MediaAlpha's investor relations website at
https://investors.mediaalpha.com.
Other Operations
White Mountains's Other Operations reported pre-tax income
(loss) of $(148) million and
$9 million in the fourth quarter and
year ended December 31, 2024 compared
to $94 million and $113 million in the fourth quarter and year ended
December 31, 2023. Net realized
and unrealized investment gains (losses) from White Mountains's
investment in MediaAlpha were $(122)
million and $38 million in the
fourth quarter and year ended December 31,
2024 compared to $66 million
and $27 million in the fourth quarter
and year ended December 31,
2023. Excluding MediaAlpha, net realized and unrealized
investment gains (losses) were $(3)
million and $57 million in the
fourth quarter and year ended December 31,
2024 compared to $63 million
and $189 million in the fourth
quarter and year ended December 31,
2023. Net investment income was $8
million and $36 million in the
fourth quarter and year ended December 31,
2024 compared to $8 million
and $30 million in the fourth quarter
and year ended December 31,
2023. White Mountains's Other Operations reported general and
administrative expenses of $43
million and $170 million in
the fourth quarter and year ended December
31, 2024 compared to $52
million and $182 million in
the fourth quarter and year ended December
31, 2023.
In the fourth quarter and year ended December 31, 2024, White Mountains's Other
Operations reported $4 million and
$9 million of pre-tax income related
to the Bamboo CRV. The Bamboo CRV, which provides quota share
reinsurance on one of Bamboo's fronted programs for the treaty year
ending in March 2025, expects to
incur a loss in the first quarter of 2025 related to the recent
California wildfires that is
capped at roughly $12 million.
Investments
The total consolidated portfolio return was -2.3% in the fourth
quarter of 2024. Excluding MediaAlpha, the total consolidated
portfolio return was -0.4% in the fourth quarter of 2024. The
total consolidated portfolio return was 5.8% in the fourth quarter
of 2023. Excluding MediaAlpha, the total consolidated
portfolio return was 4.8% in the fourth quarter of 2023.
The total consolidated portfolio return was 6.9% in the year
ended December 31, 2024.
Excluding MediaAlpha, the total consolidated portfolio return was
6.5% in the year ended December 31,
2024. The total consolidated portfolio return, both including
and excluding MediaAlpha, was 11.4% in the year ended December 31, 2023.
Mark Plourde, President of White
Mountains Advisors, said, "Excluding MediaAlpha, the total
portfolio was down -0.4% in the quarter. Returns were
impacted by rising interest rates and related mark-to-market
losses. Excluding MediaAlpha, the total portfolio was up 6.5%
for the year, a solid result. Our short duration fixed income
portfolio returned -0.3% in the quarter and 4.3% for the year,
compared to the Bloomberg Intermediate Aggregate Index returns of
-2.1% and 2.5%. The equity portfolio, excluding MediaAlpha,
returned -0.6% in the quarter and 9.4% for the year, compared to
the S&P 500 Index returns of 2.4% and 25.0%. Relative
underperformance was attributable to our portfolio of international
common stocks and other long-term investments."
Additional Information
White Mountains is a Bermuda-domiciled financial services holding
company traded on the New York Stock Exchange under the symbol WTM
and the Bermuda Stock Exchange under the symbol WTM.BH.
Additional financial information and other items of interest are
available at the Company's website located at
www.whitemountains.com. White Mountains expects to file its
Form 10-K on or before February 28,
2025 with the Securities and Exchange Commission and urges
shareholders to refer to that document for more complete
information concerning its financial results.
CONTACT: Rob Seelig
(603) 640-2212
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(millions)
|
|
(Unaudited)
|
|
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
|
|
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
$
1,565.1
|
|
$
1,461.2
|
|
$
866.8
|
|
Common equity
securities
|
|
425.4
|
|
435.6
|
|
400.6
|
|
Short-term
investments
|
|
601.4
|
|
579.1
|
|
962.8
|
|
Other long-term
investments
|
|
547.8
|
|
544.8
|
|
440.9
|
|
Total
investments
|
|
3,139.7
|
|
3,020.7
|
|
2,671.1
|
|
Cash (restricted
$14.1, $3.3, $0.7)
|
|
141.2
|
|
148.8
|
|
90.5
|
|
Reinsurance
recoverables
|
|
589.0
|
|
748.0
|
|
442.0
|
|
Insurance premiums
receivable
|
|
768.6
|
|
993.0
|
|
612.2
|
|
Deferred acquisition
costs
|
|
165.2
|
|
199.7
|
|
145.3
|
|
Goodwill and other
intangible assets
|
|
292.5
|
|
292.5
|
|
292.5
|
|
Other
assets
|
|
202.8
|
|
175.8
|
|
125.0
|
|
Total P&C
Insurance and Reinsurance assets
|
|
5,299.0
|
|
5,578.5
|
|
4,378.6
|
|
Financial
Guarantee (HG Global)
|
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
612.1
|
|
636.1
|
|
1,012.3
|
|
Short-term
investments
|
|
55.5
|
|
34.6
|
|
70.6
|
|
Total
investments
|
|
667.6
|
|
670.7
|
|
1,082.9
|
|
Cash
|
|
11.5
|
|
1.2
|
|
6.7
|
|
BAM surplus notes, at
fair value
|
|
381.7
|
|
411.1
|
|
—
|
|
Insurance premiums
receivable
|
|
4.4
|
|
7.9
|
|
5.5
|
|
Deferred acquisition
costs
|
|
86.6
|
|
83.2
|
|
40.1
|
|
Other
assets
|
|
27.6
|
|
27.8
|
|
36.8
|
|
Total Financial
Guarantee assets
|
|
1,179.4
|
|
1,201.9
|
|
1,172.0
|
|
Asset Management
(Kudu)
|
|
|
|
|
|
|
|
Short-term
investments
|
|
27.9
|
|
20.3
|
|
29.3
|
|
Other long-term
investments
|
|
1,014.0
|
|
936.8
|
|
896.3
|
|
Total
investments
|
|
1,041.9
|
|
957.1
|
|
925.6
|
|
Cash
|
|
.6
|
|
76.7
|
|
1.4
|
|
Accrued investment
income
|
|
18.0
|
|
15.7
|
|
17.6
|
|
Goodwill and other
intangible assets
|
|
8.0
|
|
8.0
|
|
8.3
|
|
Other
assets
|
|
39.9
|
|
36.6
|
|
6.5
|
|
Total Asset Management
assets
|
|
1,108.4
|
|
1,094.1
|
|
959.4
|
|
P&C Insurance
Distribution (Bamboo)
|
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
40.7
|
|
38.9
|
|
—
|
|
Short-term
investments
|
|
17.3
|
|
14.6
|
|
—
|
|
Total
investments
|
|
58.0
|
|
53.5
|
|
—
|
|
Cash (restricted
$59.5, $67.7, $0.0)
|
|
74.5
|
|
91.1
|
|
—
|
|
Premiums, commissions
and fees receivable
|
|
70.0
|
|
72.7
|
|
—
|
|
Goodwill and other
intangible assets
|
|
355.0
|
|
359.0
|
|
—
|
|
Other
assets
|
|
27.1
|
|
23.3
|
|
—
|
|
Total P&C
Insurance Distribution assets
|
|
584.6
|
|
599.6
|
|
—
|
|
Other
Operations
|
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
293.7
|
|
286.1
|
|
230.2
|
|
Common equity
securities
|
|
224.6
|
|
219.8
|
|
137.8
|
|
Investment in
MediaAlpha
|
|
201.6
|
|
323.4
|
|
254.9
|
|
Short-term
investments
|
|
262.1
|
|
241.7
|
|
425.2
|
|
Other long-term
investments
|
|
588.4
|
|
589.5
|
|
661.0
|
|
Total
investments
|
|
1,570.4
|
|
1,660.5
|
|
1,709.1
|
|
Cash
|
|
38.6
|
|
28.2
|
|
23.8
|
|
Insurance premiums
receivable
|
|
15.3
|
|
34.3
|
|
—
|
|
Goodwill and other
intangible assets
|
|
64.8
|
|
66.2
|
|
69.8
|
|
Other
assets
|
|
65.1
|
|
74.2
|
|
73.2
|
|
Total Other Operations
assets
|
|
1,754.2
|
|
1,863.4
|
|
1,875.9
|
|
Total
assets
|
|
$
9,925.6
|
|
$
10,337.5
|
|
$
8,385.9
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
|
(millions)
|
|
(Unaudited)
|
|
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Liabilities
|
|
|
|
|
|
|
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense reserves
|
|
$
2,127.5
|
|
$
2,133.0
|
|
$
1,605.1
|
|
Unearned insurance
premiums
|
|
853.3
|
|
1,149.8
|
|
743.6
|
|
Debt
|
|
154.5
|
|
156.8
|
|
185.5
|
|
Reinsurance
payable
|
|
149.5
|
|
230.2
|
|
81.1
|
|
Contingent
consideration
|
|
155.3
|
|
141.5
|
|
94.0
|
|
Other
liabilities
|
|
224.7
|
|
188.9
|
|
166.8
|
|
Total P&C
Insurance and Reinsurance liabilities
|
|
3,664.8
|
|
4,000.2
|
|
2,876.1
|
|
Financial
Guarantee (HG Global)
|
|
|
|
|
|
|
|
Unearned insurance
premiums
|
|
297.3
|
|
287.0
|
|
325.8
|
|
Debt
|
|
147.4
|
|
147.3
|
|
146.9
|
|
Other
liabilities
|
|
19.4
|
|
19.6
|
|
59.0
|
|
Total Financial
Guarantee liabilities
|
|
464.1
|
|
453.9
|
|
531.7
|
|
Asset Management
(Kudu)
|
|
|
|
|
|
|
|
Debt
|
|
238.6
|
|
218.5
|
|
203.8
|
|
Other
liabilities
|
|
78.1
|
|
75.9
|
|
71.6
|
|
Total Asset Management
liabilities
|
|
316.7
|
|
294.4
|
|
275.4
|
|
P&C Insurance
Distribution (Bamboo)
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense reserves
|
|
17.8
|
|
17.7
|
|
—
|
|
Unearned insurance
premiums
|
|
31.5
|
|
29.9
|
|
—
|
|
Premiums and
commissions payable
|
|
88.1
|
|
93.7
|
|
—
|
|
Other
liabilities
|
|
30.3
|
|
30.7
|
|
—
|
|
Total P&C
Insurance Distribution liabilities
|
|
167.7
|
|
172.0
|
|
—
|
|
Other
Operations
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense reserves
|
|
12.1
|
|
8.1
|
|
—
|
|
Unearned insurance
premiums
|
|
29.0
|
|
28.5
|
|
—
|
|
Debt
|
|
22.0
|
|
22.3
|
|
28.4
|
|
Accrued incentive
compensation
|
|
79.3
|
|
64.5
|
|
87.7
|
|
Other
liabilities
|
|
38.9
|
|
33.8
|
|
25.0
|
|
Total Other Operations
liabilities
|
|
181.3
|
|
157.2
|
|
141.1
|
|
Total
liabilities
|
|
4,794.6
|
|
5,077.7
|
|
3,824.3
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
White Mountains's
common shareholder's equity
|
|
|
|
|
|
|
|
White
Mountains's common shares and paid-in surplus
|
|
566.4
|
|
563.3
|
|
551.3
|
|
Retained
earnings
|
|
3,919.0
|
|
4,048.3
|
|
3,690.8
|
|
Accumulated
other comprehensive income (loss), after tax:
|
|
|
|
|
|
|
|
Net
unrealized gains (losses) from foreign currency
translation
|
|
(1.7)
|
|
(1.0)
|
|
(1.6)
|
|
Total
White Mountains's common shareholders' equity
|
|
4,483.7
|
|
4,610.6
|
|
4,240.5
|
|
Noncontrolling
interests
|
|
647.3
|
|
649.2
|
|
321.1
|
|
Total
equity
|
|
5,131.0
|
|
5,259.8
|
|
4,561.6
|
|
Total liabilities
and equity
|
|
$
9,925.6
|
|
$
10,337.5
|
|
$
8,385.9
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
BOOK VALUE AND
ADJUSTED BOOK VALUE PER SHARE
|
|
(Unaudited)
|
|
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
Book value per share
numerators (in millions):
|
|
|
|
|
|
|
|
|
|
White Mountains's
common shareholders' equity -
GAAP book
value per share numerator
|
|
$
4,483.7
|
|
$
4,610.6
|
|
$
4,240.5
|
|
$
3,949.1
|
|
HG Global's unearned
premium reserve (1)
|
|
288.1
|
|
278.1
|
|
265.4
|
|
254.2
|
|
HG Global's net
deferred acquisition costs (1)
|
|
(83.9)
|
|
(80.6)
|
|
(76.5)
|
|
(73.1)
|
|
Time value of money
discount on expected future payments on the
BAM
surplus notes (1) (2)
|
|
—
|
|
—
|
|
(87.9)
|
|
(90.2)
|
|
Adjusted book value per
share numerator
|
|
$
4,687.9
|
|
$
4,808.1
|
|
$
4,341.5
|
|
$
4,040.0
|
|
Book value per share
denominators (in thousands of shares):
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding - GAAP book value per share
denominator
|
|
2,568.1
|
|
2,568.1
|
|
2,560.5
|
|
2,560.5
|
|
Unearned restricted
common shares
|
|
(11.9)
|
|
(15.0)
|
|
(12.4)
|
|
(15.7)
|
|
Adjusted book value per
share denominator
|
|
2,556.2
|
|
2,553.1
|
|
2,548.1
|
|
2,544.8
|
|
GAAP book value per
share
|
|
$
1,745.87
|
|
$ 1,795.31
|
|
$ 1,656.14
|
|
$ 1,542.36
|
|
Adjusted book value
per share
|
|
$
1,833.92
|
|
$ 1,883.24
|
|
$ 1,703.82
|
|
$ 1,587.59
|
|
(1) Amount
reflects White Mountains's preferred share ownership in HG Global
of 96.9%.
|
|
(2)
For periods subsequent to July 1, 2024, White Mountains carries the
BAM surplus notes under GAAP at fair value, which incorporates time
value into its
estimate.
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2024
|
|
September 30,
2024
|
|
December 31,
2023
|
|
September 30,
2023
|
|
Quarter-to-date
change in GAAP book value per share,
including dividends:
|
|
(2.8) %
|
|
4.3 %
|
|
7.4 %
|
|
0.7 %
|
|
Quarter-to-date
change in adjusted book value per share,
including dividends:
|
|
(2.6) %
|
|
6.0 %
|
|
7.3 %
|
|
0.7 %
|
|
Year-to-date change
in GAAP book value per share,
including dividends:
|
|
5.5 %
|
|
8.5 %
|
|
13.8 %
|
|
5.9 %
|
|
Year-to-date change
in adjusted book value per share,
including dividends:
|
|
7.7 %
|
|
10.6 %
|
|
14.0 %
|
|
6.2 %
|
|
Year-to-date
dividends per share
|
|
$
1.00
|
|
$
1.00
|
|
$
1.00
|
|
$
1.00
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(millions)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
414.5
|
|
$
362.4
|
|
$
1,587.8
|
|
$
1,409.7
|
|
Net investment
income
|
|
24.2
|
|
20.2
|
|
90.7
|
|
61.4
|
|
Net realized and
unrealized investment gains (losses)
|
|
(34.0)
|
|
50.0
|
|
50.1
|
|
85.9
|
|
Other
revenues
|
|
12.7
|
|
1.9
|
|
22.3
|
|
.8
|
|
Total P&C
Insurance and Reinsurance revenues
|
|
417.4
|
|
434.5
|
|
1,750.9
|
|
1,557.8
|
|
Financial
Guarantee (HG Global)
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
7.4
|
|
7.9
|
|
31.7
|
|
31.2
|
|
Net investment
income
|
|
6.1
|
|
8.8
|
|
32.2
|
|
31.7
|
|
Net realized and
unrealized investment gains (losses)
|
|
(19.6)
|
|
43.6
|
|
(11.5)
|
|
26.6
|
|
Interest income from
BAM surplus notes
|
|
7.9
|
|
—
|
|
15.8
|
|
—
|
|
Change in fair value of
BAM surplus notes
|
|
(15.3)
|
|
—
|
|
.5
|
|
—
|
|
Unrealized loss on
deconsolidation of BAM
|
|
—
|
|
—
|
|
(114.5)
|
|
—
|
|
Other
revenues
|
|
.1
|
|
.9
|
|
1.2
|
|
2.9
|
|
Total Financial
Guarantee revenues
|
|
(13.4)
|
|
61.2
|
|
(44.6)
|
|
92.4
|
|
Asset Management
(Kudu)
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
16.6
|
|
27.0
|
|
66.7
|
|
71.0
|
|
Net realized and
unrealized investment gains (losses)
|
|
(26.2)
|
|
60.7
|
|
51.3
|
|
106.1
|
|
Other
revenues
|
|
.3
|
|
—
|
|
.8
|
|
—
|
|
Total Asset
Management revenues
|
|
(9.3)
|
|
87.7
|
|
118.8
|
|
177.1
|
|
P&C Insurance
Distribution (Bamboo)
|
|
|
|
|
|
|
|
|
|
Commission and fee
revenues
|
|
37.3
|
|
—
|
|
134.6
|
|
—
|
|
Earned insurance
premiums
|
|
12.4
|
|
—
|
|
39.4
|
|
—
|
|
Other
revenues
|
|
1.3
|
|
—
|
|
5.8
|
|
—
|
|
Total P&C
Insurance Distribution revenues
|
|
51.0
|
|
—
|
|
179.8
|
|
—
|
|
Other
Operations
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
12.9
|
|
—
|
|
32.7
|
|
—
|
|
Net investment
income
|
|
7.7
|
|
8.1
|
|
35.6
|
|
30.1
|
|
Net realized and
unrealized investment gains (losses)
|
|
(3.4)
|
|
62.7
|
|
57.0
|
|
188.5
|
|
Net realized and
unrealized investment gains (losses) from
investment
in MediaAlpha
|
|
(121.7)
|
|
66.0
|
|
38.0
|
|
27.1
|
|
Commission and fee
revenues
|
|
3.7
|
|
3.2
|
|
14.8
|
|
13.2
|
|
Other
revenues
|
|
13.1
|
|
13.4
|
|
56.8
|
|
80.5
|
|
Total Other
Operations revenues
|
|
(87.7)
|
|
153.4
|
|
234.9
|
|
339.4
|
|
Total
revenues
|
|
$
358.0
|
|
$
736.8
|
|
$
2,239.8
|
|
$
2,166.7
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
|
|
(millions)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
$
211.8
|
|
$
145.7
|
|
$
855.8
|
|
$
726.8
|
|
Acquisition
expenses
|
|
76.3
|
|
70.0
|
|
307.1
|
|
281.5
|
|
General and
administrative expenses
|
|
54.4
|
|
56.5
|
|
208.4
|
|
162.0
|
|
Change in fair value of
contingent consideration
|
|
13.8
|
|
31.9
|
|
61.3
|
|
48.7
|
|
Interest
expense
|
|
4.5
|
|
5.6
|
|
19.5
|
|
21.3
|
|
Total P&C
Insurance and Reinsurance expenses
|
|
360.8
|
|
309.7
|
|
1,452.1
|
|
1,240.3
|
|
Financial
Guarantee (HG Global)
|
|
|
|
|
|
|
|
|
|
Acquisition
expenses
|
|
1.9
|
|
2.3
|
|
8.2
|
|
8.6
|
|
General and
administrative expenses
|
|
.9
|
|
19.2
|
|
35.7
|
|
68.9
|
|
Interest
expense
|
|
3.3
|
|
5.7
|
|
16.7
|
|
16.5
|
|
Total Financial
Guarantee expenses
|
|
6.1
|
|
27.2
|
|
60.6
|
|
94.0
|
|
Asset Management
(Kudu)
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
4.9
|
|
7.1
|
|
15.4
|
|
19.4
|
|
Interest
expense
|
|
5.4
|
|
5.7
|
|
22.1
|
|
21.2
|
|
Total Asset
Management expenses
|
|
10.3
|
|
12.8
|
|
37.5
|
|
40.6
|
|
P&C Insurance
Distribution (Bamboo)
|
|
|
|
|
|
|
|
|
|
Broker commission
expenses
|
|
13.4
|
|
—
|
|
51.3
|
|
—
|
|
Loss and loss
adjustment expenses
|
|
6.1
|
|
—
|
|
20.6
|
|
—
|
|
Acquisition
expenses
|
|
4.4
|
|
—
|
|
14.1
|
|
—
|
|
General and
administrative expenses
|
|
17.2
|
|
—
|
|
61.1
|
|
—
|
|
Total P&C
Insurance Distribution expenses
|
|
41.1
|
|
—
|
|
147.1
|
|
—
|
|
Other
Operations
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
4.0
|
|
—
|
|
12.1
|
|
—
|
|
Acquisition
expenses
|
|
5.0
|
|
—
|
|
12.1
|
|
—
|
|
Cost of
sales
|
|
7.4
|
|
6.9
|
|
29.6
|
|
40.4
|
|
General and
administrative expenses
|
|
43.1
|
|
51.6
|
|
169.5
|
|
182.3
|
|
Interest
expense
|
|
.9
|
|
.8
|
|
2.5
|
|
3.7
|
|
Total Other
Operations expenses
|
|
60.4
|
|
59.3
|
|
225.8
|
|
226.4
|
|
Total
expenses
|
|
478.7
|
|
409.0
|
|
1,923.1
|
|
1,601.3
|
|
Pre-tax income
(loss)
|
|
(120.7)
|
|
327.8
|
|
316.7
|
|
565.4
|
|
Income tax
(expense) benefit
|
|
(3.7)
|
|
34.9
|
|
(32.6)
|
|
15.5
|
|
Net income
(loss)
|
|
(124.4)
|
|
362.7
|
|
284.1
|
|
580.9
|
|
Net (income) loss
attributable to noncontrolling interests
|
|
(6.0)
|
|
(76.2)
|
|
(53.7)
|
|
(71.7)
|
|
Net income (loss)
attributable to White Mountains's
common
shareholders
|
|
$
(130.4)
|
|
$
286.5
|
|
$
230.4
|
|
$
509.2
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
(millions)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income (loss)
attributable to White Mountains's
common
shareholders
|
|
$
(130.4)
|
|
$
286.5
|
|
$
230.4
|
|
$
509.2
|
|
Other
comprehensive income (loss), net of tax
|
|
(1.2)
|
|
1.5
|
|
(.1)
|
|
2.4
|
|
Comprehensive income
(loss)
|
|
(131.6)
|
|
288.0
|
|
230.3
|
|
511.6
|
|
Other comprehensive
(income) loss attributable to
noncontrolling interests
|
|
.5
|
|
(.4)
|
|
—
|
|
(.5)
|
|
Comprehensive income
(loss) attributable to White
Mountains's common shareholders
|
$
(131.1)
|
|
$
287.6
|
|
$
230.3
|
|
$
511.1
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
EARNINGS PER
SHARE
|
|
(Unaudited)
|
|
|
Earnings (loss) per
share attributable to White Mountains's
common
shareholders
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Basic earnings (loss)
per share
|
|
$
(50.78)
|
|
$
111.87
|
|
$
89.79
|
|
$
198.60
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
|
$
(50.78)
|
|
$
111.87
|
|
$
89.79
|
|
$
198.60
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per White Mountains's common share
|
|
$
—
|
|
$
—
|
|
$
1.00
|
|
$
1.00
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
QTD SEGMENT
STATEMENTS OF PRE-TAX INCOME (LOSS)
|
|
(millions)
|
|
(Unaudited)
|
|
|
For the Three Months
Ended December 31, 2024
|
|
Ark/WM
Outrigger
|
|
|
|
|
|
|
|
|
|
|
|
Ark
|
|
WM
Outrigger Re
|
|
HG
Global
|
|
Kudu
|
|
Bamboo
|
|
Other
Operations
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
389.3
|
|
$
25.2
|
|
$
7.4
|
|
$
—
|
|
$
12.4
|
|
$
12.9
|
|
$
447.2
|
|
Net investment income
(1)
|
|
21.8
|
|
2.4
|
|
6.1
|
|
16.6
|
|
.7
|
|
7.7
|
|
55.3
|
|
Net realized and
unrealized
investment gains (losses) (1)
|
|
(34.0)
|
|
—
|
|
(19.6)
|
|
(26.2)
|
|
(.6)
|
|
(3.4)
|
|
(83.8)
|
|
Net realized and
unrealized
investment gains (losses)
from investment in MediaAlpha
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(121.7)
|
|
(121.7)
|
|
Interest income
from
BAM
surplus notes
|
|
—
|
|
—
|
|
7.9
|
|
—
|
|
—
|
|
—
|
|
7.9
|
|
Change in fair value
of BAM surplus
notes
|
|
—
|
|
—
|
|
(15.3)
|
|
—
|
|
—
|
|
—
|
|
(15.3)
|
|
Commission and fee
revenues
|
|
—
|
|
—
|
|
—
|
|
—
|
|
37.3
|
|
3.7
|
|
41.0
|
|
Other
revenues
|
|
12.7
|
|
—
|
|
.1
|
|
.3
|
|
1.2
|
|
13.1
|
|
27.4
|
|
Total
revenues
|
|
389.8
|
|
27.6
|
|
(13.4)
|
|
(9.3)
|
|
51.0
|
|
(87.7)
|
|
358.0
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
195.5
|
|
16.3
|
|
—
|
|
—
|
|
6.1
|
|
4.0
|
|
221.9
|
|
Acquisition
expenses
|
|
71.0
|
|
5.3
|
|
1.9
|
|
—
|
|
4.4
|
|
5.0
|
|
87.6
|
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7.4
|
|
7.4
|
|
Broker commission
expenses
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13.4
|
|
—
|
|
13.4
|
|
General and
administrative expenses
|
|
54.4
|
|
—
|
|
.9
|
|
4.9
|
|
17.2
|
|
43.1
|
|
120.5
|
|
Change in fair value
of contingent
consideration
|
|
13.8
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13.8
|
|
Interest
expense
|
|
4.5
|
|
—
|
|
3.3
|
|
5.4
|
|
—
|
|
.9
|
|
14.1
|
|
Total
expenses
|
|
339.2
|
|
21.6
|
|
6.1
|
|
10.3
|
|
41.1
|
|
60.4
|
|
478.7
|
|
Pre-tax income
(loss)
|
|
$ 50.6
|
|
$
6.0
|
|
$
(19.5)
|
|
$ (19.6)
|
|
$
9.9
|
|
$ (148.1)
|
|
$
(120.7)
|
|
|
|
(1)
|
Bamboo's net investment
income and net realized and unrealized investment gains (losses)
are included in other revenues in the consolidated statement of
operations.
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
QTD SEGMENT
STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED)
|
|
(millions)
|
|
(Unaudited)
|
|
|
For the Three Months
Ended December 31, 2023
|
|
Ark/WM
Outrigger
|
|
HG
Global
|
|
|
|
|
|
|
|
|
Ark
|
|
WM
Outrigger
Re
|
|
HG
Global
|
|
BAM
|
|
Kudu
|
|
Other
Operations
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
333.5
|
|
$
28.9
|
|
$
6.6
|
|
$
1.3
|
|
$
—
|
|
$
—
|
|
$
370.3
|
|
Net investment
income
|
|
16.9
|
|
3.3
|
|
4.7
|
|
4.1
|
|
27.0
|
|
8.1
|
|
64.1
|
|
Net realized and
unrealized
investment gains (losses)
|
|
50.0
|
|
—
|
|
25.0
|
|
18.6
|
|
60.7
|
|
62.7
|
|
217.0
|
|
Net realized and
unrealized
investment gains
(losses)
from investment in
MediaAlpha
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
66.0
|
|
66.0
|
|
Interest income
(expense) from
BAM
surplus notes
|
|
—
|
|
—
|
|
6.5
|
|
(6.5)
|
|
—
|
|
—
|
|
—
|
|
Commission and fee
revenues
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3.2
|
|
3.2
|
|
Other
revenues
|
|
1.9
|
|
—
|
|
—
|
|
.9
|
|
—
|
|
13.4
|
|
16.2
|
|
Total
revenues
|
|
402.3
|
|
32.2
|
|
42.8
|
|
18.4
|
|
87.7
|
|
153.4
|
|
736.8
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
138.0
|
|
7.7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
145.7
|
|
Acquisition
expenses
|
|
61.7
|
|
8.3
|
|
1.8
|
|
.5
|
|
—
|
|
—
|
|
72.3
|
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6.9
|
|
6.9
|
|
General and
administrative expenses
|
|
56.4
|
|
.1
|
|
.9
|
|
18.3
|
|
7.1
|
|
51.6
|
|
134.4
|
|
Change in fair value
of contingent consideration
|
|
31.9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
31.9
|
|
Interest
expense
|
|
5.6
|
|
—
|
|
5.7
|
|
—
|
|
5.7
|
|
.8
|
|
17.8
|
|
Total
expenses
|
|
293.6
|
|
16.1
|
|
8.4
|
|
18.8
|
|
12.8
|
|
59.3
|
|
409.0
|
|
Pre-tax income
(loss)
|
|
$
108.7
|
|
$
16.1
|
|
$
34.4
|
|
$
(.4)
|
|
$ 74.9
|
|
$
94.1
|
|
$
327.8
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
YTD SEGMENT
STATEMENTS OF PRE-TAX INCOME (LOSS)
|
|
(millions)
|
|
(Unaudited)
|
|
|
For the Year Ended
December 31, 2024
|
|
Ark/WM
Outrigger
|
|
HG
Global
|
|
|
|
|
|
|
|
|
|
|
Ark
|
|
WM
Outrigger
Re
|
|
HG
Global
|
|
BAM
|
|
Kudu
|
|
Bamboo
|
|
Other
Operations
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$ 1,499.8
|
|
$
88.0
|
|
$
28.9
|
|
$
2.8
|
|
$
—
|
|
$ 39.4
|
|
$
32.7
|
|
$
1,691.6
|
|
Net investment income
(1)
|
|
79.4
|
|
11.3
|
|
23.4
|
|
8.8
|
|
66.7
|
|
2.2
|
|
35.6
|
|
227.4
|
|
Net realized and
unrealized
investment gains (losses) (1)
|
|
50.1
|
|
—
|
|
(6.4)
|
|
(5.1)
|
|
51.3
|
|
—
|
|
57.0
|
|
146.9
|
|
Net realized and
unrealized
investment gains
(losses)
from investment in
MediaAlpha
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
38.0
|
|
38.0
|
|
Interest income
(expense) from
BAM
surplus notes
|
|
—
|
|
—
|
|
29.0
|
|
(13.2)
|
|
—
|
|
—
|
|
—
|
|
15.8
|
|
Change in fair value
of BAM surplus
notes
|
|
—
|
|
—
|
|
.5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
.5
|
|
Unrealized loss on
deconsolidation
of
BAM
|
|
—
|
|
—
|
|
(114.5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(114.5)
|
|
Commission and fee
revenues
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
134.6
|
|
14.8
|
|
149.4
|
|
Other
revenues
|
|
22.3
|
|
—
|
|
.1
|
|
1.1
|
|
.8
|
|
3.6
|
|
56.8
|
|
84.7
|
|
Total
revenues
|
|
1,651.6
|
|
99.3
|
|
(39.0)
|
|
(5.6)
|
|
118.8
|
|
179.8
|
|
234.9
|
|
2,239.8
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
825.9
|
|
29.9
|
|
—
|
|
—
|
|
—
|
|
20.6
|
|
12.1
|
|
888.5
|
|
Acquisition
expenses
|
|
283.9
|
|
23.2
|
|
7.8
|
|
.4
|
|
—
|
|
14.1
|
|
12.1
|
|
341.5
|
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
29.6
|
|
29.6
|
|
Broker commission
expenses
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
51.3
|
|
—
|
|
51.3
|
|
General and
administrative expenses
|
|
208.3
|
|
.1
|
|
2.2
|
|
33.5
|
|
15.4
|
|
61.1
|
|
169.5
|
|
490.1
|
|
Change in fair value
of contingent
consideration
|
|
61.3
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
61.3
|
|
Interest
expense
|
|
19.5
|
|
—
|
|
16.7
|
|
—
|
|
22.1
|
|
—
|
|
2.5
|
|
60.8
|
|
Total
expenses
|
|
1,398.9
|
|
53.2
|
|
26.7
|
|
33.9
|
|
37.5
|
|
147.1
|
|
225.8
|
|
1,923.1
|
|
Pre-tax income
(loss)
|
|
$ 252.7
|
|
$
46.1
|
|
$
(65.7)
|
|
$ (39.5)
|
|
$ 81.3
|
|
$ 32.7
|
|
$
9.1
|
|
$
316.7
|
|
|
|
(1)
|
Bamboo's net investment
income and net realized and unrealized investment gains (losses)
are included in other revenues in the consolidated statement of
operations.
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
YTD SEGMENT
STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED)
|
|
(millions)
|
|
(Unaudited)
|
|
|
For the Year Ended
December 31, 2023
|
|
Ark/WM
Outrigger
|
|
HG
Global
|
|
|
|
|
|
|
|
|
Ark
|
|
WM
Outrigger Re
|
|
HG
Global
|
|
BAM
|
|
Kudu
|
|
Other
Operations
|
|
Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
1,305.4
|
|
$
104.3
|
|
$
26.0
|
|
$
5.2
|
|
$
—
|
|
$
—
|
|
$
1,440.9
|
|
Net investment
income
|
|
50.4
|
|
11.0
|
|
17.1
|
|
14.6
|
|
71.0
|
|
30.1
|
|
194.2
|
|
Net realized and
unrealized
investment gains (losses)
|
|
85.9
|
|
—
|
|
13.6
|
|
13.0
|
|
106.1
|
|
188.5
|
|
407.1
|
|
Net realized and
unrealized
investment gains (losses)
from
investment in MediaAlpha
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
27.1
|
|
27.1
|
|
Interest income
(expense) from
BAM
surplus notes
|
|
—
|
|
—
|
|
26.2
|
|
(26.2)
|
|
—
|
|
—
|
|
—
|
|
Commission and fee
revenues
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13.2
|
|
13.2
|
|
Other
revenues
|
|
.8
|
|
—
|
|
—
|
|
2.9
|
|
—
|
|
80.5
|
|
84.2
|
|
Total
revenues
|
|
1,442.5
|
|
115.3
|
|
82.9
|
|
9.5
|
|
177.1
|
|
339.4
|
|
2,166.7
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
711.2
|
|
15.6
|
|
—
|
|
—
|
|
—
|
|
—
|
|
726.8
|
|
Acquisition
expenses
|
|
251.0
|
|
30.5
|
|
7.4
|
|
1.2
|
|
—
|
|
—
|
|
290.1
|
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40.4
|
|
40.4
|
|
General and
administrative expenses
|
|
161.7
|
|
.3
|
|
2.8
|
|
66.1
|
|
19.4
|
|
182.3
|
|
432.6
|
|
Change in fair value
of contingent
consideration
|
|
48.7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
48.7
|
|
Interest
expense
|
|
21.3
|
|
—
|
|
16.5
|
|
—
|
|
21.2
|
|
3.7
|
|
62.7
|
|
Total
expenses
|
|
1,193.9
|
|
46.4
|
|
26.7
|
|
67.3
|
|
40.6
|
|
226.4
|
|
1,601.3
|
|
Pre-tax income
(loss)
|
|
$ 248.6
|
|
$
68.9
|
|
$
56.2
|
|
$
(57.8)
|
|
$
136.5
|
|
$
113.0
|
|
$
565.4
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
SELECTED FINANCIAL
DATA
|
|
($ in
millions)
|
|
(Unaudited)
|
|
|
Ark/WM
Outrigger
|
|
Three Months Ended
December 31, 2024
|
|
|
Ark
|
|
WM
Outrigger
Re
|
|
Elimination
|
|
Total
|
|
Insurance
premiums:
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$
264.3
|
|
$
4.5
|
|
$
(4.5)
|
|
$
264.3
|
|
Net written
premiums
|
|
$
234.4
|
|
$
4.5
|
|
$
—
|
|
$
238.9
|
|
Net earned
premiums
|
|
$
389.3
|
|
$
25.2
|
|
$
—
|
|
$
414.5
|
|
|
|
|
|
|
|
|
|
|
Insurance
expenses:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
$
195.5
|
|
$
16.3
|
|
$
—
|
|
$
211.8
|
|
Acquisition
expenses
|
|
71.0
|
|
5.3
|
|
—
|
|
76.3
|
|
Other underwriting
expenses (1)
|
|
32.2
|
|
—
|
|
—
|
|
32.2
|
|
Total insurance
expenses
|
|
$
298.7
|
|
$
21.6
|
|
$
—
|
|
$
320.3
|
|
|
|
|
|
|
|
|
|
|
Insurance
ratios:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense
|
|
50.2 %
|
|
64.7 %
|
|
— %
|
|
51.1 %
|
|
Acquisition
expense
|
|
18.2
|
|
21.0
|
|
—
|
|
18.4
|
|
Other underwriting
expense
|
|
8.3
|
|
—
|
|
—
|
|
7.8
|
|
Combined
Ratio
|
|
76.7 %
|
|
85.7 %
|
|
— %
|
|
77.3 %
|
|
|
|
(1)
|
Included within general
and administrative expenses in the consolidated statement of
operations.
|
|
|
|
Ark/WM
Outrigger
|
|
Three Months Ended
December 31, 2023
|
|
|
Ark
|
|
WM
Outrigger
Re
|
|
Elimination
|
|
Total
|
|
Insurance
premiums:
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$
231.7
|
|
$
1.6
|
|
$
(1.6)
|
|
$
231.7
|
|
Net written
premiums
|
|
$
212.9
|
|
$
1.6
|
|
$
—
|
|
$
214.5
|
|
Net earned
premiums
|
|
$
333.5
|
|
$
28.9
|
|
$
—
|
|
$
362.4
|
|
|
|
|
|
|
|
|
|
|
Insurance
expenses:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
$
138.0
|
|
$
7.7
|
|
$
—
|
|
$
145.7
|
|
Acquisition
expenses
|
|
61.7
|
|
8.3
|
|
—
|
|
70.0
|
|
Other underwriting
expenses (1)
|
|
35.1
|
|
—
|
|
—
|
|
35.1
|
|
Total insurance
expenses
|
|
$
234.8
|
|
$
16.0
|
|
$
—
|
|
$
250.8
|
|
|
|
|
|
|
|
|
|
|
Insurance
ratios:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense
|
|
41.4 %
|
|
26.6 %
|
|
— %
|
|
40.2 %
|
|
Acquisition
expense
|
|
18.5
|
|
28.8
|
|
—
|
|
19.3
|
|
Other underwriting
expense
|
|
10.5
|
|
—
|
|
—
|
|
9.7
|
|
Combined
Ratio
|
|
70.4 %
|
|
55.4 %
|
|
— %
|
|
69.2 %
|
|
|
|
(1)
|
Included within general
and administrative expenses in the consolidated statement of
operations.
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
SELECTED FINANCIAL
DATA (CONTINUED)
|
|
($ in
millions)
|
|
(Unaudited)
|
|
|
Ark/WM
Outrigger
|
|
Year Ended December
31, 2024
|
|
|
Ark
|
|
WM
Outrigger
Re
|
|
Elimination
|
|
Total
|
|
Insurance
premiums:
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$
2,207.0
|
|
$
86.5
|
|
$
(86.5)
|
|
$
2,207.0
|
|
Net written
premiums
|
|
$
1,592.6
|
|
$
86.5
|
|
$
—
|
|
$
1,679.1
|
|
Net earned
premiums
|
|
$
1,499.8
|
|
$
88.0
|
|
$
—
|
|
$
1,587.8
|
|
|
|
|
|
|
|
|
|
|
Insurance
expenses:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
$
825.9
|
|
$
29.9
|
|
$
—
|
|
$
855.8
|
|
Acquisition
expenses
|
|
283.9
|
|
23.2
|
|
—
|
|
307.1
|
|
Other underwriting
expenses (1)
|
|
136.1
|
|
—
|
|
—
|
|
136.1
|
|
Total insurance
expenses
|
|
$
1,245.9
|
|
$
53.1
|
|
$
—
|
|
$
1,299.0
|
|
|
|
|
|
|
|
|
|
|
Insurance
ratios:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense
|
|
55.1 %
|
|
34.0 %
|
|
— %
|
|
53.9 %
|
|
Acquisition
expense
|
|
18.9
|
|
26.3
|
|
—
|
|
19.3
|
|
Other underwriting
expense
|
|
9.1
|
|
—
|
|
—
|
|
8.6
|
|
Combined
Ratio
|
|
83.1 %
|
|
60.3 %
|
|
— %
|
|
81.8 %
|
|
|
|
(1)
|
Included within general
and administrative expenses in the consolidated statement of
operations.
|
|
|
|
Ark/WM
Outrigger
|
|
Year Ended December
31, 2023
|
|
|
Ark
|
|
WM
Outrigger
Re
|
|
Elimination
|
|
Total
|
|
Insurance
premiums:
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$
1,898.4
|
|
$
110.0
|
|
$ (110.0)
|
|
$
1,898.4
|
|
Net written
premiums
|
|
$
1,410.9
|
|
$
110.0
|
|
$
—
|
|
$
1,520.9
|
|
Net earned
premiums
|
|
$
1,305.4
|
|
$
104.3
|
|
$
—
|
|
$
1,409.7
|
|
|
|
|
|
|
|
|
|
|
Insurance
expenses:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
$
711.2
|
|
$
15.6
|
|
$
—
|
|
$
726.8
|
|
Acquisition
expenses
|
|
251.0
|
|
30.5
|
|
—
|
|
281.5
|
|
Other underwriting
expenses (1)
|
|
113.6
|
|
—
|
|
—
|
|
113.6
|
|
Total insurance
expenses
|
|
$
1,075.8
|
|
$
46.1
|
|
$
—
|
|
$
1,121.9
|
|
|
|
|
|
|
|
|
|
|
Insurance
ratios:
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense
|
|
54.5 %
|
|
15.0 %
|
|
— %
|
|
51.6 %
|
|
Acquisition
expense
|
|
19.2
|
|
29.2
|
|
—
|
|
20.0
|
|
Other underwriting
expense
|
|
8.7
|
|
—
|
|
—
|
|
8.0
|
|
Combined
Ratio
|
|
82.4 %
|
|
44.2 %
|
|
— %
|
|
79.6 %
|
|
|
|
(1)
|
Included within general
and administrative expenses in the consolidated statement of
operations.
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
SELECTED FINANCIAL
DATA (CONTINUED)
|
|
($ in
millions)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
HG
Global
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Par value
assumed:
|
|
|
|
|
|
|
|
|
|
Par value of primary
market policies assumed (1)
|
|
$
853.7
|
|
$
619.1
|
|
$
2,614.0
|
|
$
1,929.9
|
|
Par value of secondary
market policies assumed (1)
|
|
86.4
|
|
143.3
|
|
338.4
|
|
426.4
|
|
Total par value of
policies assumed
|
|
$
940.1
|
|
$
762.4
|
|
$
2,952.4
|
|
$
2,356.3
|
|
|
|
|
|
|
|
|
|
|
Reinsurance
premiums:
|
|
|
|
|
|
|
|
|
|
Gross written premiums
from primary market
|
|
$
13.2
|
|
$
12.1
|
|
$
36.7
|
|
$
31.6
|
|
Gross written premiums
from secondary market
|
|
4.7
|
|
6.1
|
|
15.7
|
|
18.5
|
|
Total
gross written premiums
|
|
17.9
|
|
18.2
|
|
52.4
|
|
50.1
|
|
Ceding commission
paid
|
|
$
5.3
|
|
$
5.5
|
|
$
15.4
|
|
$
15.2
|
|
Total
gross written premiums net of ceding commission paid
|
|
$
12.6
|
|
$
12.7
|
|
$
37.0
|
|
$
34.9
|
|
|
|
|
|
|
|
|
|
|
Earned
premiums
|
|
$
7.4
|
|
$
6.6
|
|
$
28.9
|
|
$
26.0
|
|
|
|
|
|
|
|
|
|
|
Pricing:
|
|
|
|
|
|
|
|
|
|
Gross pricing from
primary market
|
|
155 bps
|
|
195 bps
|
|
140 bps
|
|
164 bps
|
|
Gross pricing from
secondary market
|
|
544 bps
|
|
426 bps
|
|
464 bps
|
|
434 bps
|
|
Total
gross pricing
|
|
190 bps
|
|
239 bps
|
|
177 bps
|
|
213 bps
|
|
|
|
|
|
|
|
|
|
|
Total pricing net of
ceding commission paid
|
|
134 bps
|
|
167 bps
|
|
125 bps
|
|
148 bps
|
|
|
|
(1)
|
For capital
appreciation bonds, par is adjusted to the estimated equivalent par
value for current interest paying bonds.
|
|
HG
Global
|
|
As of
December 31, 2024
|
|
As of
December 31, 2023
|
|
As of
December 31, 2022
|
|
Unearned
premiums
|
|
$
297.3
|
|
$
273.9
|
|
$
249.8
|
|
Deferred acquisition
costs
|
|
$
86.6
|
|
$
79.0
|
|
$
71.2
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
SELECTED FINANCIAL
DATA (CONTINUED)
|
|
($ in
millions)
|
|
(Unaudited)
|
|
|
Kudu
|
|
Three Months
Ended
December 31, 2023
|
|
Three Months
Ended
December 31, 2024
|
|
Year Ended
December 31, 2023
|
|
Year Ended
December 31, 2024
|
|
Net investment income
(1)
|
|
$
27.0
|
|
$
16.6
|
|
$
71.0
|
|
$
66.7
|
|
Net realized and
unrealized investment gains (losses)
|
|
60.7
|
|
(26.2)
|
|
106.1
|
|
51.3
|
|
Other
revenues
|
|
—
|
|
.3
|
|
—
|
|
.8
|
|
Total
revenues
|
|
87.7
|
|
(9.3)
|
|
177.1
|
|
118.8
|
|
General and
administrative expenses
|
|
7.1
|
|
4.9
|
|
19.4
|
|
15.4
|
|
Interest
expense
|
|
5.7
|
|
5.4
|
|
21.2
|
|
22.1
|
|
Total
expenses
|
|
12.8
|
|
10.3
|
|
40.6
|
|
37.5
|
|
GAAP pre-tax income
(loss)
|
|
74.9
|
|
(19.6)
|
|
136.5
|
|
81.3
|
|
Income tax (expense)
benefit
|
|
(18.0)
|
|
1.5
|
|
(31.9)
|
|
(16.8)
|
|
GAAP net income
(loss)
|
|
56.9
|
|
(18.1)
|
|
104.6
|
|
64.5
|
|
|
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
5.7
|
|
5.4
|
|
21.2
|
|
22.1
|
|
Income tax expense
(benefit)
|
|
18.0
|
|
(1.5)
|
|
31.9
|
|
16.8
|
|
Depreciation
expense
|
|
—
|
|
—
|
|
.1
|
|
.1
|
|
Amortization of other
intangible assets
|
|
.1
|
|
.1
|
|
.3
|
|
.3
|
|
EBITDA
|
|
80.7
|
|
(14.1)
|
|
158.1
|
|
103.8
|
|
|
|
|
|
|
|
|
|
|
Exclude:
|
|
|
|
|
|
|
|
|
|
Net realized and
unrealized investment (gains) losses
|
|
(60.7)
|
|
26.2
|
|
(106.1)
|
|
(51.3)
|
|
Non-cash equity-based
compensation expense
|
|
1.0
|
|
.3
|
|
1.0
|
|
.3
|
|
Transaction
expenses
|
|
1.1
|
|
1.4
|
|
3.5
|
|
1.7
|
|
Adjusted
EBITDA
|
|
$
22.1
|
|
$
13.8
|
|
$
56.5
|
|
$
54.5
|
|
|
|
|
|
|
|
|
|
|
Adjustment to annualize
partial year revenues from participation contracts
acquired
|
6.7
|
|
Adjustment to remove
partial year revenues from participation contracts sold
|
(.6)
|
|
Annualized adjusted
EBITDA
|
|
|
|
|
|
|
|
$
60.6
|
|
|
|
|
|
|
|
|
|
|
GAAP net investment
income (1)
|
|
|
|
|
|
|
|
$
66.7
|
|
Adjustment to annualize
partial year revenues from participation contracts
acquired
|
6.7
|
|
Adjustment to remove
partial year revenues from participation contracts sold
|
(.6)
|
|
Annualized
revenue
|
|
|
|
|
|
|
|
$
72.8
|
|
|
|
|
|
|
|
|
|
|
Net equity capital
drawn
|
|
|
|
|
|
|
|
$
412.4
|
|
Debt capital
drawn
|
|
|
|
|
|
|
|
245.3
|
|
Total net capital drawn
and invested (2)
|
|
|
|
|
|
|
|
$
657.7
|
|
|
|
|
|
|
|
|
|
|
GAAP net investment
income revenue yield
|
|
|
|
|
|
|
|
10.1 %
|
|
|
|
|
|
|
|
|
|
|
Cash revenue
yield
|
|
|
|
|
|
|
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
|
|
|
|
|
|
8.7 %
|
|
|
|
(1)
|
Net investment income
includes revenues from participation contracts and income from
short-term and other long-term investments.
|
|
(2)
|
Total net capital drawn
represents equity and debt capital drawn and invested less
cumulative distributions.
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
SELECTED FINANCIAL
DATA (CONTINUED)
|
|
(millions)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
Kudu
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Beginning balance of
Kudu's participation contracts (1)
|
|
$
930.6
|
|
$
775.3
|
|
$
890.5
|
|
$
695.9
|
|
Contributions to participation contracts (2)
|
|
103.3
|
|
55.5
|
|
103.5
|
|
199.6
|
|
Proceeds
from participation contracts sold (2) (3)
|
|
—
|
|
(.6)
|
|
(37.5)
|
|
(111.0)
|
|
Net realized and
unrealized investment gains (losses) on
participation contracts sold and pending
sale (4)
|
|
—
|
|
16.1
|
|
(6.3)
|
|
14.3
|
|
Net unrealized
investment gains (losses) on participation
contracts
- all other (5)
|
|
(25.5)
|
|
44.2
|
|
58.2
|
|
91.7
|
|
Ending balance of
Kudu's participation contracts (1)
|
|
$
1,008.4
|
|
$
890.5
|
|
$
1,008.4
|
|
$
890.5
|
|
|
|
(1)
|
As of September 30,
2024, December 31, 2024, September 30, 2023 and December 31, 2023,
Kudu's other long-term investments also includes $6.2, $5.6, $5.4
and $5.8 related to a private debt instrument.
|
|
(2)
|
Includes $35.8 of
non-cash contributions to (proceeds from) participation contracts
for the year ended December 31, 2023.
|
|
(3)
|
Includes $28.1 of
proceeds receivable from participation contracts sold for the year
ended December 31, 2024.
|
|
(4)
|
Includes realized and
unrealized investment gains (losses) recognized from participation
contracts beginning in the quarter a contract is classified as
pending sale.
|
|
(5)
|
Includes unrealized
investment gains (losses) recognized from (i) ongoing participation
contracts and (ii) participation contracts prior to classification
as pending sale.
|
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
|
SELECTED FINANCIAL
DATA (CONTINUED)
|
|
(millions)
|
|
(Unaudited)
|
|
|
Bamboo
|
|
Three Months
Ended
December 31, 2024
|
|
Year
Ended
December 31,
2024
|
|
Commission and fee
revenues
|
|
$
37.3
|
|
$
134.6
|
|
Earned insurance
premiums
|
|
12.4
|
|
39.4
|
|
Other
revenues
|
|
1.3
|
|
5.8
|
|
Total
revenues
|
|
51.0
|
|
179.8
|
|
Broker commission
expenses
|
|
13.4
|
|
51.3
|
|
Loss and loss
adjustment expenses
|
|
6.1
|
|
20.6
|
|
Acquisition
expenses
|
|
4.4
|
|
14.1
|
|
General and
administrative expenses
|
|
17.2
|
|
61.1
|
|
Total
expenses
|
|
41.1
|
|
147.1
|
|
GAAP pre-tax income
(loss)
|
|
9.9
|
|
32.7
|
|
Income tax (expense)
benefit
|
|
(2.7)
|
|
(6.9)
|
|
GAAP net income
(loss)
|
|
7.2
|
|
25.8
|
|
|
|
|
|
|
Exclude:
|
|
|
|
|
|
Net (income) loss,
Bamboo captive
|
|
.9
|
|
(1.0)
|
|
MGA net
income (loss)
|
|
8.1
|
|
24.8
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
2.7
|
|
6.9
|
|
Depreciation
expense
|
|
.2
|
|
.3
|
|
Amortization of other
intangible assets
|
|
4.0
|
|
16.4
|
|
MGA EBITDA
|
|
15.0
|
|
48.4
|
|
|
|
|
|
|
Exclude:
|
|
|
|
|
|
Non-cash equity-based
compensation expense
|
|
.6
|
|
1.6
|
|
Software implementation
expenses
|
|
.5
|
|
1.9
|
|
Restructuring
expenses
|
|
.1
|
|
.8
|
|
MGA adjusted
EBITDA
|
|
$
16.2
|
|
$
52.7
|
Regulation G
This earnings release includes non-GAAP financial measures that
have been reconciled from their most comparable GAAP financial
measures.
- Adjusted book value per share is a non-GAAP financial measure
which is derived by adjusting (i) the GAAP book value per share
numerator and (ii) the common shares outstanding denominator, as
described below.
The GAAP book value per share numerator is adjusted (i) for periods
prior to July 1, 2024, to include a
discount for the time value of money arising from the modeled
timing of cash payments of principal and interest on the BAM
surplus notes and (ii) for all periods, to add back the unearned
premium reserve, net of deferred acquisition costs, at HG
Global.
Under GAAP, for periods prior to July 1,
2024, the BAM surplus notes, including accrued interest
receivable, were classified as intercompany notes carried at
nominal value with no consideration for time value of money and
eliminated in consolidation. Based on a debt service model that
forecasts operating results for BAM through maturity of the BAM
surplus notes, the present value of the BAM surplus notes,
including accrued interest and using an 8% discount rate, was
estimated to be $91 million and
$93 million less than the nominal
GAAP carrying values as of December 31,
2023 and September 30, 2023,
respectively. For periods subsequent to July
1, 2024, White Mountains carries the BAM surplus notes under
GAAP at fair value, and there is no longer a separate time value of
money adjustment for adjusted book value purposes.
The value of HG Global's unearned premium reserve, net of deferred
acquisition costs, was $211 million,
$204 million, $195 million and $187
million as of December 31,
2024, September 30, 2024,
December 31, 2023 and September 30, 2023, respectively.
White Mountains believes these adjustments are useful to management
and investors in analyzing the intrinsic value of HG Global,
including the value of the BAM surplus notes and the value of the
in-force business at HG Re, HG Global's reinsurance subsidiary.
The denominator used in the calculation of adjusted book value per
share equals the number of common shares outstanding adjusted to
exclude unearned restricted common shares, the compensation cost of
which, at the date of calculation, has yet to be amortized.
Restricted common shares are earned on a straight-line basis over
their vesting periods. The reconciliation of GAAP book value per
share to adjusted book value per share is included on page 9.
- Kudu's EBITDA, adjusted EBITDA, annualized adjusted EBITDA,
annualized revenue and cash revenue yield are non-GAAP financial
measures.
EBITDA is a non-GAAP financial measure that adds back interest
expense on debt, income tax (expense) benefit, depreciation and
amortization of other intangible assets to GAAP net income
(loss).
Adjusted EBITDA is a non-GAAP financial measure that excludes
certain other items in GAAP net income (loss) in addition to those
added back to calculate EBITDA. The items relate to (i) net
realized and unrealized investment gains (losses) on Kudu's revenue
and earnings participation contracts, (ii) non-cash equity-based
compensation expense and (iii) transaction expenses. A description
of each item follows:
- Net realized and unrealized investment gains (losses) -
Represents net unrealized investment gains and losses recorded on
Kudu's revenue and earnings participation contracts, which are
recorded at fair value under GAAP, and realized investment gains
and losses from participation contracts sold during the
period.
- Non-cash equity-based compensation expense - Represents
non-cash expenses related to Kudu's management compensation that
are settled with equity units in Kudu.
- Transaction expenses - Represents costs directly related
to Kudu's mergers and acquisitions activity, such as external
lawyer, banker, consulting and placement agent fees, which are not
capitalized and are expensed under GAAP.
Annualized adjusted EBITDA is a non-GAAP
financial measure that (i) annualizes partial year revenues related
to Kudu's revenue and earnings participation contracts acquired
during the previous 12-month period and (ii) removes partial year
revenues related to revenue and earnings participation contracts
sold during the previous 12-month period.
Annualized revenue is a non-GAAP financial
measure that adds the adjustments for annualized adjusted EBITDA to
GAAP net investment income.
Cash revenue yield is a non-GAAP financial
measure that is derived using annualized revenue as a percentage of
total net capital drawn and invested. The most directly comparable
GAAP financial measure is net investment income revenue yield,
which is derived using GAAP net investment income as a percentage
of total net capital drawn and invested.
White Mountains believes that these non-GAAP
financial measures are useful to management and investors in
evaluating Kudu's performance. White Mountains also believes that
annualized adjusted EBITDA is useful to management and investors in
understanding the full earnings profile of Kudu's business as of
the end of any 12-month period. See page 20 for the reconciliation
of Kudu's GAAP net income (loss) to EBITDA, adjusted EBITDA and
annualized adjusted EBITDA, and the reconciliation of Kudu's GAAP
net investment income to annualized revenue.
- Bamboo's MGA pre-tax income (loss), MGA net income (loss), MGA
EBITDA and MGA adjusted EBITDA are non-GAAP financial measures.
MGA pre-tax income (loss) and MGA net income (loss) are non-GAAP
financial measures that exclude the results of the Bamboo captive,
which is consolidated under GAAP, from Bamboo's consolidated GAAP
pre-tax income (loss) and net income (loss).
The following table presents the reconciliation from Bamboo's
consolidated GAAP pre-tax income (loss) to MGA pre-tax income
(loss):
|
Millions
|
|
Three Months
Ended
December 31, 2024
|
|
Year Ended
December 31, 2024
|
|
Bamboo's consolidated
GAAP pre-tax income (loss)
|
|
$
9.9
|
|
$
32.7
|
|
Remove pre-tax (income)
loss, Bamboo captive
|
|
.9
|
|
(1.0)
|
|
MGA pre-tax
income (loss)
|
|
$
10.8
|
|
$
31.7
|
MGA EBITDA is a non-GAAP financial measure that
adds back interest expense on debt, income tax (expense) benefit,
depreciation and amortization of other intangible assets to MGA net
income (loss).
MGA adjusted EBITDA is a non-GAAP financial
measure that excludes certain other items in GAAP net income (loss)
in addition to those added back to calculate MGA EBITDA. The
items relate to (i) non-cash equity-based compensation expense,
(ii) software implementation expenses and (iii) restructuring
expenses. A description of each item follows:
-
- Non-cash equity-based compensation expense - Represents
non-cash expenses related to Bamboo's management compensation that
are settled with equity units in Bamboo.
- Software implementation expenses - Represents costs
directly related to Bamboo's implementation of new software.
- Restructuring expenses - Represents costs directly
related to Bamboo's corporate restructuring and capital planning
activities associated with the development of new markets.
White Mountains believes that these non-GAAP
financial measures are useful to management and investors in
evaluating Bamboo's performance. See page 22 for the reconciliation
of Bamboo's consolidated GAAP net income (loss) to MGA net income
(loss), MGA EBITDA and MGA adjusted EBITDA.
- Total consolidated portfolio return excluding MediaAlpha and
total equity portfolio return excluding MediaAlpha are non-GAAP
financial measures that remove the net investment income and net
realized and unrealized investment gains (losses) from White
Mountains's investment in MediaAlpha. White Mountains believes
these measures to be useful to management and investors by showing
the underlying performance of White Mountains's investment
portfolio and equity portfolio without regard to White Mountains's
investment in MediaAlpha. The following tables present
reconciliations from GAAP to the reported percentages:
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Total consolidated
portfolio return
|
|
(2.3) %
|
|
5.8 %
|
|
6.9 %
|
|
11.4 %
|
|
Remove
MediaAlpha
|
|
1.9 %
|
|
(1.0) %
|
|
(0.4) %
|
|
— %
|
|
Total consolidated
portfolio return excluding MediaAlpha
|
|
(0.4) %
|
|
4.8 %
|
|
6.5 %
|
|
11.4 %
|
|
|
Three Months
Ended
December 31, 2024
|
|
Year Ended
December 31, 2024
|
|
Total equity portfolio
return
|
|
(4.4) %
|
|
10.0 %
|
|
Remove
MediaAlpha
|
|
3.8 %
|
|
(0.6) %
|
|
Total equity
portfolio return excluding MediaAlpha
|
|
(0.6) %
|
|
9.4 %
|
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This earnings release may contain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical facts, included or
referenced in this release which address activities, events or
developments which White Mountains expects or anticipates will or
may occur in the future are forward-looking statements. The
words "could", "will", "believe", "intend", "expect", "anticipate",
"project", "estimate", "predict" and similar expressions are also
intended to identify forward-looking statements. These
forward-looking statements include, among others, statements with
respect to White Mountains's:
- change in book value per share, adjusted book value per share
or return on equity;
- business strategy;
- financial and operating targets or plans;
- incurred loss and loss adjustment expenses and the adequacy of
its loss and loss adjustment expense reserves and related
reinsurance;
- projections of revenues, income (or loss), earnings (or loss)
per share, EBITDA, adjusted EBITDA, dividends, market share or
other financial forecasts of White Mountains or its
businesses;
- expansion and growth of its business and operations; and
- future capital expenditures.
These statements are based on certain assumptions and analyses
made by White Mountains in light of its experience and perception
of historical trends, current conditions and expected future
developments, as well as other factors believed to be appropriate
in the circumstances. However, whether actual results and
developments will conform to its expectations and predictions is
subject to risks and uncertainties that could cause actual results
to differ materially from expectations, including:
- the risks that are described from time to time in White
Mountains's filings with the Securities and Exchange Commission,
including but not limited to White Mountains's Annual Report on
Form 10-K for the fiscal year ended December
31, 2023;
- claims arising from catastrophic events, such as hurricanes,
windstorms, earthquakes, floods, wildfires, tornadoes, tsunamis,
severe weather, public health crises, terrorist attacks, war and
war-like actions, explosions, infrastructure failures or
cyber-attacks;
- recorded loss reserves subsequently proving to have been
inadequate;
- the market value of White Mountains's investment in
MediaAlpha;
- the trends and uncertainties from the COVID-19 pandemic,
including judicial interpretations on the extent of insurance
coverage provided by insurers for COVID-19 pandemic related
claims;
- business opportunities (or lack thereof) that may be presented
to it and pursued;
- actions taken by rating agencies, such as financial strength or
credit ratings downgrades or placing ratings on negative
watch;
- the continued availability of capital and financing;
- the continued availability of fronting and reinsurance
capacity;
- deterioration of general economic, market or business
conditions, including due to outbreaks of contagious disease
(including the COVID-19 pandemic) and corresponding mitigation
efforts;
- competitive forces, including the conduct of other
insurers;
- changes in domestic or foreign laws or regulations, or their
interpretation, applicable to White Mountains, its competitors or
its customers; and
- other factors, most of which are beyond White Mountains's
control.
Consequently, all of the forward-looking statements made in this
earnings release are qualified by these cautionary statements, and
there can be no assurance that the actual results or developments
anticipated by White Mountains will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, White Mountains or its business or
operations. White Mountains assumes no obligation to publicly
update any such forward-looking statements, whether as a result of
new information, future events or otherwise.
View original
content:https://www.prnewswire.com/news-releases/white-mountains-reports-fourth-quarter-results-302370947.html
SOURCE White Mountains Insurance Group, Ltd.
