HAMILTON, Bermuda, Nov. 2 /PRNewswire-FirstCall/ -- White Mountains
Insurance Group, Ltd. ended the third quarter of 2006 with a fully
converted tangible book value per share of $373, an increase of
5.7% for the quarter and 10.8% for the first nine months of 2006,
including dividends. CEO Steve Fass said, "I am very pleased with
our growth in tangible book value per share this quarter. OneBeacon
had another excellent quarter, with a combined ratio of 94%. White
Mountains Re, aided by favorable weather, also had a strong
quarter, with an 89% combined ratio. Esurance continues to grow
quickly while keeping its loss ratio on target. While our fixed
income and equity returns lagged their benchmarks in the quarter,
absolute returns were solid, and our investment performance for the
first nine months remains strong." Adjusted comprehensive net
income for the third quarter of 2006 was $211 million, compared to
adjusted comprehensive net loss of $131 million in the third
quarter of 2005, while for the first nine months of 2006 adjusted
comprehensive net income was $377 million, compared to $80 million
in the comparable period last year. Net income for the quarter was
$162 million, compared to net loss of $66 million in the third
quarter of 2005. Net income for the first nine months of 2006 was
$374 million, up from $257 million in the first nine months of last
year. OneBeacon OneBeacon's pre-tax income for the third quarter of
2006 was $107 million, compared to $90 million for the third
quarter of 2005. The GAAP combined ratio was 94% for the third
quarter of 2006, compared to 107% for the third quarter of last
year. The increase in pre-tax income was primarily due to lower
catastrophe losses, $55 million of which were recorded during the
third quarter of last year from hurricanes Katrina and Rita, mostly
in the specialty property unit. The increase in pre-tax income was
partially offset by lower net realized investment gains as a result
of the sale of several highly appreciated common stocks in the
third quarter of 2005. Additionally, the third quarter of 2006
includes a $30 million gain on the sale of the renewal rights of
Agri, while the third quarter last year includes a $28 million gain
on the sale of NFU. For the first nine months of 2006, pre-tax
income was $247 million, compared to $303 million for the
comparable period of 2005. The GAAP combined ratio was 96% for the
first nine months of 2006, compared to 99% for the first nine
months of last year. In addition to the items mentioned above, the
decline in pre-tax income for the first nine months of 2006 from
the comparable prior year period was partially due to a special
dividend from Montpelier Re in the prior year's first quarter, $35
million of which was recorded at OneBeacon, and $20 million of
additional losses from hurricanes Katrina, Rita and Wilma recorded
in the first six months of 2006. Net written premiums were down 8%
for the quarter and the nine months from the comparable 2005
periods, primarily as a result of the sale of NFU last year.
Excluding NFU, net written premiums were essentially flat for the
quarter and the first nine months of 2006 versus the comparable
2005 periods. Mike Miller, CEO of OneBeacon said, "Our underwriting
results were good again in the third quarter, with all three of our
business units -- specialty, personal, and commercial -- producing
combined ratios in the high 80s-to-mid 90s. Our ex-NFU net written
premiums were relatively flat quarter over quarter, as increases in
specialty lines and commercial lines were offset by lower personal
lines premiums. More importantly, however, our pricing continues to
be solid across all three business units." White Mountains Re White
Mountains Re's pre-tax income for the third quarter of 2006 was
$110 million, compared to a pre-tax loss of $156 million in the
third quarter of 2005. For the first nine months of 2006, pre-tax
income was $131 million, compared to a pre-tax loss of $13 million
in the prior year period. The GAAP combined ratio was 89% for the
third quarter and 108% for the first nine months of 2006, compared
to 156% and 116% for the comparable periods of 2005. The prior year
periods contain $228 million in pre-tax losses, net of
reinstatements and reinsurance, from hurricanes Katrina and Rita.
The first nine months of 2006 include $137 million of pre-tax
losses related to the reimbursement of Olympus during the second
quarter of 2006 and $86 million, net of reinstatements and
reinsurance, related to additional pre-tax losses on hurricanes
Katrina, Rita and Wilma recorded in the first six months of 2006.
Net written premiums were down 13% for the quarter, primarily due
to lower reinstatement premiums on property catastrophe
reinsurance, a reduction in property catastrophe exposed business,
a reduction on casualty lines due mainly to pricing, terms and
conditions that did not meet White Mountains Re's pricing
guidelines and higher ceding company retentions. Net written
premiums were up 2% for the first nine months of 2006, as improved
market conditions more than offset the aforementioned reductions.
During the third quarter of 2006, White Mountains Re completed its
previously announced sale of Sirius America Insurance Company and
recorded a pre-tax gain of $14 million. Tom Hutton, CEO of White
Mountains Re said, "Simply put, it was a great quarter. There were
no headline catastrophe events -- it's the first time in a few
years that Mother Nature did not roar in the third quarter.
Additionally, we have significantly enhanced our approach to risk
management." Esurance Esurance's pre-tax income was $2 million in
the third quarter and break even for the first nine months of 2006,
compared to pre-tax losses of $7 million and $3 million in the
comparable periods of 2005. The GAAP combined ratio was 106% for
the third quarter and 107% for the first nine months of 2006,
compared to 113% and 107% for the comparable periods of the prior
year. Net written premiums of $164 million for the quarter and $436
million for the nine months were up 65% and 72%, respectively, from
the comparable periods of 2005. Gary Tolman, CEO of Esurance, said,
"We are pleased with the strong premium growth and low acquisition
costs generated by our national television campaign. Our loss ratio
is as expected and the expense ratio is declining nicely as we
scale the business. Esurance continues to provide significant value
to our customers, while also building value for our owners." Other
Operations White Mountains' Other Operations segment reported
pre-tax income of $7 million for the third quarter of 2006,
compared to a pre-tax loss of $58 million for the third quarter of
2005. The increase was primarily attributable to the Montpelier Re
investment, which accounted for $23 million in pre-tax income
during the third quarter of 2006 compared to $58 million in pre-tax
losses during the third quarter of 2005, partially offset by higher
incentive compensation accruals in the third quarter of 2006
compared to the third quarter of last year. For the first nine
months of 2006, the Other Operations segment reported pre-tax
income of $33 million versus a loss of $2 million in the comparable
period of 2005. The Montpelier Re investment accounted for $16
million in pre-tax income during the first nine months of 2006,
compared to $29 million of pre-tax losses during the first nine
months of 2005 that includes $39 million of net investment income
from the special dividend. In addition, the first nine months of
2006 included a $21 million realized gain from the redemption of a
private equity investment and the first nine months of 2005
included $26 million in other revenue from the settlement of two
lawsuits in which White Mountains was a plaintiff. Investment
Activities The GAAP total return on invested assets for the quarter
was approximately 3%. For the first nine months it was
approximately 5%. Net investment income was $109 million in the
quarter, in line with the third quarter of 2005, and $312 million
for the first nine months, down 20% from the prior period,
primarily due to the receipt in the prior year's first quarter of a
$74 million special dividend from Montpelier Re. Mark Dorcus,
President of White Mountains Advisors, said "Lower interest rates
boosted our GAAP fixed income investment returns for the quarter
but hurt us relative to the market, as our fixed income portfolio's
duration is still relatively short. Through the first nine months
of this year, our bond returns were solid. Our third quarter equity
returns lagged the S&P 500 as investors, including us, rotated
out of the energy/resource and utility sectors. However, for the
first nine months of the year, our equities have significantly
outperformed the S&P 500." Additional Information On July 17,
2006, in connection with the initial public offering of OneBeacon
Insurance Group, Ltd. ("OBIG"), White Mountains undertook an
internal reorganization and formed OBIG for the purpose of holding
certain of its property and casualty insurance businesses. As a
result of the reorganization, certain of White Mountains'
businesses that have been historically reported as part of its
Other Operations segment are now owned by OBIG, and accordingly are
now included within the OneBeacon segment. In addition, certain
other businesses of White Mountains that will not be held by OBIG
following the initial public offering and that have been
historically reported as part of its OneBeacon segment are now
presented as part of its Other Operations segment. Prior period
financial information for White Mountains' segments has been
restated to conform to the current presentation. White Mountains is
a Bermuda-domiciled financial services holding company traded on
the New York Stock Exchange and the Bermuda Stock Exchange under
the symbol WTM. Additional financial information and other items of
interest are available at the Company's website located at
http://www.whitemountains.com/. The Company expects to file its
Form 10-Q with the Securities and Exchange Commission on or before
November 9, 2006 and urges shareholders to refer to that document
for more complete information concerning White Mountains' financial
results. Regulation G This earnings release includes two non-GAAP
financial measures that have been reconciled to their most
comparable GAAP financial measures. White Mountains believes these
measures to be more relevant than comparable GAAP measures in
evaluating White Mountains' financial performance. Adjusted
comprehensive net income is a non-GAAP financial measure that
excludes the change in net unrealized gains and losses from
Symetra's fixed maturity portfolio from comprehensive net income.
In the calculation of comprehensive net income under GAAP, fixed
maturity investments are marked-to- market while the liabilities to
which those assets are matched are not. Symetra attempts to earn a
"spread" between what it earns on its investments and what it pays
out on its products. In order to try to fix this spread, Symetra
invests in a manner that tries to match the duration and cash flows
of its investments with the required cash outflows associated with
its life insurance and structured settlements products. As a
result, Symetra typically earns the same spread on in-force
business whether interest rates fall or rise. Further, at any given
time, some of Symetra's structured settlement obligations may
extend 40 or 50 years into the future, which is further out than
the longest maturing fixed maturity investments regularly available
for purchase in the market (typically 30 years). For these
long-dated products, Symetra is unable to fully match the
obligation with assets until the remaining expected payout schedule
comes within the duration of securities available in the market. If
at that time, these fixed maturity investments have yields that are
lower than the yields expected when the structured settlement
product was originally priced, the spread for the product will
shrink and Symetra will ultimately harvest lower returns for its
shareholders. GAAP comprehensive net income increases when rates
decline, which would suggest an increase in the value of Symetra -
the opposite of what is happening to the intrinsic value of the
business. Therefore, White Mountains' management and Board of
Directors use adjusted comprehensive net income when assessing
Symetra's quarterly financial performance. In addition, this
measure is typically the predominant component of growth in fully
converted tangible book value per share, which is used in the
calculation of White Mountains' performance for both the short-term
(annual bonus) and long-term incentive plans. The reconciliation of
adjusted comprehensive net income to comprehensive net income is
included on page 7. Fully converted tangible book value per share
is a non-GAAP measure which is derived by expanding the GAAP book
value per share calculation to include the effects of assumed
conversion of all convertible securities and to exclude any
unamortized goodwill and net unrealized gains from Symetra's fixed
maturity portfolio. The reconciliation of fully converted tangible
book value per share to book value per share is included on page 6.
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 we expect or
anticipate will or may occur in the future are forward-looking
statements. The words "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': X growth in book value
per share or return on equity; X business strategy; X financial and
operating targets or plans; X incurred losses and the adequacy of
its loss and loss adjustment expense reserves and related
reinsurance; X projections of revenues, income (or loss), earnings
(or loss) per share, dividends, market share or other financial
forecasts; X expansion and growth of our business and operations;
and X 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 our
expectations and predictions is subject to a number of risks and
uncertainties that could cause actual results to differ materially
from expectations, including: X the risks associated with Item 1A
of White Mountains' 2005 Annual Report on Form 10-K and second
quarter 2006 Form 10-Q; X claims arising from catastrophic events,
such as hurricanes, earthquakes, floods or terrorist attacks; X the
continued availability of capital and financing; X general
economic, market or business conditions; X business opportunities
(or lack thereof) that may be presented to it and pursued; X
competitive forces, including the conduct of other property and
casualty insurers and reinsurers; X changes in domestic or foreign
laws or regulations, or their interpretation, applicable to White
Mountains, its competitors or its clients; X an economic downturn
or other economic conditions adversely affecting its financial
position; X recorded loss reserves subsequently proving to have
been inadequate; X other factors, most of which are beyond White
Mountains' 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
update publicly any such forward-looking statements, whether as a
result of new information, future events or otherwise. CONTACT:
David Foy (203) 453-1681 WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (millions, except share
amounts) (Unaudited) September December September 30, 31, 30, 2006
2005 2005 Assets Fixed maturity investments $7,089.2 $7,582.7
$7,594.2 Common equity securities 1,042.0 967.8 1,027.3 Short-term
investments 1,222.8 727.8 1,000.1 Other investments 498.0 588.1
507.1 Total investments 9,852.0 9,866.4 10,128.7 Reinsurance
recoverable on unpaid losses 4,250.3 5,025.7 4,824.0 Reinsurance
recoverable on paid losses 89.3 77.0 103.3 Funds held by ceding
companies 467.5 620.4 707.6 Insurance and reinsurance premiums
receivable 1,002.3 1,014.3 1,039.7 Securities lending collateral
583.8 674.9 786.9 Investments in unconsolidated insurance
affiliates 529.1 479.7 486.8 Deferred acquisition costs 333.5 288.4
308.3 Ceded unearned premiums 113.7 200.7 242.2 Accounts receivable
on unsettled investment sales 354.1 21.7 27.0 Other assets 1,136.5
1,148.9 1,141.3 Total assets $18,712.1 $19,418.1 $19,795.8
Liabilities Loss and loss adjustment expense reserves $9,114.2
$10,231.2 $10,102.6 Reserves for structured contracts 153.5 224.6
268.3 Unearned insurance and reinsurance premiums 1,714.9 1,582.0
1,717.9 Debt 794.2 779.1 775.2 Securities lending payable 583.8
674.9 786.9 Preferred stock subject to mandatory redemption 254.5
234.0 227.9 Ceded reinsurance payable 135.6 204.5 219.1 Funds held
under reinsurance treaties 119.6 171.4 169.9 Accounts payable on
unsettled investment purchases 303.5 43.4 162.8 Other liabilities
1,419.6 1,439.8 1,482.4 Total liabilities 14,593.4 15,584.9
15,913.0 Common Shareholders' Equity Common shares and paid-in
surplus 1,726.7 1,725.3 1,726.9 Retained earnings 2,218.2 1,899.8
1,888.0 Accumulated other comprehensive income (loss), after tax:
Net unrealized gain on investments 169.8 209.7 249.4 Equity in net
unrealized gains (losses) from Symetra's fixed maturity portfolio
(4.1) 24.2 39.4 Net unrealized foreign currency translation gains
(losses) and other 8.1 (25.8) (20.9) Total common shareholders'
equity 4,118.7 3,833.2 3,882.8 Total liabilities and common
shareholders' equity $18,712.1 $19,418.1 $19,795.8 Common shares
outstanding (000's) 10,780 10,779 10,774 Common and equivalent
shares outstanding (000's) 10,812 10,814 10,818 WHITE MOUNTAINS
INSURANCE GROUP, LTD. FULLY CONVERTED TANGIBLE BOOK VALUE PER
COMMON AND EQUIVALENT SHARE (Unaudited) September June December
September 30, 30, 31, 30, 2006 2006 2005 2005 Book value per share
numerators (in millions): Common shareholders' equity $4,118.7
$3,864.3 $3,833.2 $3,882.8 Benefits to be received from share
obligations under employee benefit plans 5.0 5.1 5.1 6.5 Remaining
adjustment of subsidiary preferred stock to face value (65.5)
(72.7) (86.0) (92.1) Book value per share numerator 4,058.2 3,796.7
3,752.3 3,797.2 Equity in net unrealized (gains) losses from
Symetra's fixed maturity portfolio 4.1 69.0 (24.2) (39.4) Goodwill
(25.8) (25.2) (24.4) (25.4) Fully converted tangible book value per
common and equivalent share numerator $4,036.5 $3,840.5 $3,703.7
$3,732.4 Book value per share denominators (in thousands of
shares): Common Shares outstanding 10,780.1 10,780.1 10,779.2
10,773.7 Share obligations under employee benefits plans 32.2 33.4
34.3 44.3 Fully converted tangible book value per common and
equivalent share denominator 10,812.3 10,813.5 10,813.5 10,818.0
Book value per common and equivalent share $375.34 $351.11 $347.00
$351.01 Fully converted tangible book value per common and
equivalent share $373.33 $355.16 $342.51 $345.02 WHITE MOUNTAINS
INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME (millions, except per share amounts)
(Unaudited) Three Months Ended Nine Months Ended September 30,
September 30, 2006 2005 2006 2005 Revenues: Earned insurance and
reinsurance premiums $918.9 $982.4 $2,773.4 $2,880.8 Net investment
income 108.7 110.8 311.6 389.3 Net realized investment gains 67.8
18.9 202.8 119.3 Other revenue 90.8 65.5 157.1 184.4 Total revenues
1,186.2 1,177.6 3,444.9 3,573.8 Expenses: Loss and loss adjustment
expenses 558.1 929.6 1,885.9 2,119.1 Insurance and reinsurance
acquisition expenses 189.3 199.7 562.6 572.9 Other underwriting
expenses 122.8 104.4 361.5 352.9 General and administrative
expenses 55.8 40.8 125.5 142.0 Accretion of fair value adjustment
to loss and loss adjustment expense reserves 6.6 9.1 18.2 28.1
Interest expense on debt 12.9 11.5 36.5 34.8 Interest expense -
dividends on preferred stock subject to mandatory redemption 7.6
7.6 22.7 22.7 Interest expense - accretion on preferred stock
subject to mandatory redemption 7.3 5.7 20.6 16.1 Total expenses
960.4 1,308.4 3,033.5 3,288.6 Pretax income 225.8 (130.8) 411.4
285.2 Income tax benefit (provision) (69.3) 55.6 (66.9) (56.1)
Income before equity in earnings of unconsolidated affiliates 156.5
(75.2) 344.5 229.1 Equity in earnings of unconsolidated insurance
affiliates 5.6 8.9 29.4 27.7 Net income 162.1 (66.3) 373.9 256.8
Change in net unrealized gains on investments 112.6 (122.4) (59.0)
(127.3) Change in foreign currency translation and other 1.0 1.6
33.9 (67.0) Comprehensive net income 275.7 (187.1) 348.8 62.5 Add
back: Change in net unrealized gains and losses from Symetra's
fixed maturity portfolio (64.9) 56.3 28.3 17.2 Adjusted
comprehensive net income $210.8 $(130.8) $377.1 $79.7 Basic
earnings per share $15.05 $(6.16) $34.72 $23.87 Diluted earnings
per share $15.01 $(6.16) $34.61 $23.73 Dividends declared and paid
per common share $2.00 $2.00 $6.00 $6.00 WHITE MOUNTAINS INSURANCE
GROUP, LTD. YTD SEGMENT INCOME STATEMENT (in millions) (Unaudited)
For the Nine Months Ended September 30, 2006 OneBeacon WM Re
Esurance Other Total Revenues: Earned insurance and reinsurance
premiums $1,458.1 $943.8 $371.5 $- $2,773.4 Net investment income
144.1 130.6 13.6 23.3 311.6 Net realized investment gains (losses)
97.9 48.0 7.0 49.9 202.8 Other revenue 48.4 38.2 5.7 64.8 157.1
Total revenues 1,748.5 1,160.6 397.8 138.0 3,444.9 Expenses: Loss
and loss adjustment expenses 891.3 727.3 265.6 1.7 1,885.9
Insurance and reinsurance acquisition expenses 249.8 217.0 95.8 -
562.6 Other underwriting expenses 253.9 70.3 35.9 1.4 361.5 General
and administrative expenses 11.6 12.7 0.1 101.1 125.5 Accretion of
fair value adjustment to loss and lae reserves 17.3 0.9 - - 18.2
Interest expense on debt 34.8 1.2 - 0.5 36.5 Interest expense -
dividends and accretion on preferred stock subject to mandatory
redemption 43.3 - - - 43.3 Total expenses 1,502.0 1,029.4 397.4
104.7 3,033.5 Pretax income (loss) $246.5 $131.2 $0.4 $33.3 $411.4
For the Nine Months Ended September 30, 2005 OneBeacon WM Re
Esurance Other Total Revenues: Earned insurance and reinsurance
premiums $1,622.0 $1,044.0 $213.0 $1.8 $2,880.8 Net investment
income 194.1 109.1 6.5 79.6 389.3 Net realized investment gains
(losses) 146.1 31.0 3.3 (61.1) 119.3 Other revenue 48.2 30.4 2.3
103.5 184.4 Total revenues 2,010.4 1,214.5 225.1 123.8 3,573.8
Expenses: Loss and loss adjustment expenses 1,060.5 914.8 141.5 2.3
2,119.1 Insurance and reinsurance acquisition expenses 300.0 210.8
62.0 0.1 572.9 Other underwriting expenses 244.5 82.1 25.0 1.3
352.9 General and administrative expenses 10.8 9.0 - 122.2 142.0
Accretion of fair value adjustment to loss and lae reserves 19.5
8.6 - - 28.1 Interest expense on debt 33.1 1.7 - - 34.8 Interest
expense - dividends and accretion on preferred stock subject to
mandatory redemption 38.8 - - - 38.8 Total expenses 1,707.2 1,227.0
228.5 125.9 3,288.6 Pretax income (loss) $303.2 $(12.5) $(3.4)
$(2.1) $285.2 WHITE MOUNTAINS INSURANCE GROUP, LTD. QTD SEGMENT
INCOME STATEMENT (in millions) (Unaudited) For the Three Months
Ended September 30, 2006 One Beacon WM Re Esurance Other Total
Revenues: Earned insurance and reinsurance premiums $492.6 $285.8
$140.5 $- $918.9 Net investment income 48.1 46.1 5.2 9.3 108.7 Net
realized investment gains (losses) 31.9 6.8 3.5 25.6 67.8 Other
revenue 36.6 31.3 1.8 21.1 90.8 Total revenues 609.2 370.0 151.0
56.0 1,186.2 Expenses: Loss and loss adjustment expenses 292.0
163.1 100.5 2.5 558.1 Insurance and reinsurance acquisition
expenses 89.0 65.8 34.5 - 189.3 Other underwriting expenses 84.0
24.8 13.5 0.5 122.8 General and administrative expenses 4.9 5.6 0.1
45.2 55.8 Accretion of fair value adjustment to loss and lae
reserves 5.8 0.8 - - 6.6 Interest expense on debt 12.0 0.4 - 0.5
12.9 Interest expense - dividends and accretion on preferred stock
subject to mandatory redemption 14.9 - - - 14.9 Total expenses
502.6 260.5 148.6 48.7 960.4 Pretax income (loss) $106.6 $109.5
$2.4 $7.3 $225.8 For the Three Months Ended September 30, 2005 One
Beacon WM Re Esurance Other Total Revenues: Earned insurance and
reinsurance premiums $537.1 $363.5 $81.8 $- $982.4 Net investment
income 56.0 38.9 2.3 13.6 110.8 Net realized investment gains 58.9
12.5 1.1 (53.6) 18.9 Other revenue 40.5 2.8 0.8 21.4 65.5 Total
revenues 692.5 417.7 86.0 (18.6) 1,177.6 Expenses: Loss and loss
adjustment expenses 396.2 478.2 54.6 0.6 929.6 Insurance and
reinsurance acquisition expenses 102.2 69.6 27.9 - 199.7 Other
underwriting expenses 74.2 19.9 9.9 0.4 104.4 General and
administrative expenses (0.3) 2.7 0.1 38.3 40.8 Accretion of fair
value adjustment to loss and lae reserves 6.5 2.6 - - 9.1 Interest
expense on debt 10.9 0.6 - - 11.5 Interest expense - dividends and
accretion on preferred stock subject to mandatory redemption 13.3 -
- - 13.3 Total expenses 603.0 573.6 92.5 39.3 1,308.4 Pretax income
(loss) $89.5 $(155.9) $(6.5) $(57.9) $(130.8) WHITE MOUNTAINS
INSURANCE GROUP, LTD. SUMMARY OF GAAP RATIOS AND PREMIUMS
(Unaudited) Nine Months Ended September 30, 2006 OneBeacon WM Re
Esurance Personal Specialty (1) Commercial Total(2) GAAP Ratios
Loss and LAE 63% 59% 56% 61% 77% 72% Expense 31% 33% 39% 35% 31%
35% Total Combined 94% 92% 95% 96% 108% 107% Dollars in millions
Net written premiums $575.8 $450.3 $504.7 $1,526.0 $1,053.6 $436.0
Earned premiums $536.2 $450.7 $473.5 $1,458.1 $943.8 $371.5 Nine
Months Ended September 30, 2005 OneBeacon WM Re Esurance Personal
Specialty (1) Commercial Total(2) GAAP Ratios Loss and LAE 67% 60%
57% 65% 88% 66% Expense 32% 31% 42% 34% 28% 41% Total Combined 99%
91% 99% 99% 116% 107% Dollars in millions Net written premiums
$665.2 $513.8 $467.6 $1,659.5 $1,034.2 $253.4 Earned premiums
$624.5 $533.9 $466.5 $1,622.0 $1,044.0 $213.0 Three Months Ended
September 30, 2006 OneBeacon WM Re Esurance Personal Specialty (1)
Commercial Total(2) GAAP Ratios Loss and LAE 61% 54% 56% 59% 57%
72% Expense 33% 36% 37% 35% 32% 34% Total Combined 94% 90% 93% 94%
89% 106% Dollars in millions Net written premiums $205.0 $157.4
$174.0 $536.2 $286.4 $164.4 Earned premiums $181.1 $148.9 $162.4
$492.6 $285.8 $140.5 Three Months Ended September 30, 2005
OneBeacon WM Re Esurance Personal Specialty (1) Commercial Total(2)
GAAP Ratios Loss and LAE 89% 56% 61% 74% 132% 67% Expense 34% 27%
40% 33% 24% 46% Total Combined 123% 83% 101% 107% 156% 113% Dollars
in millions Net written premiums $244.9 $171.9 $161.3 $581.0 $329.1
$99.8 Earned premiums $209.8 $173.7 $152.1 $537.1 $363.5 $81.8 (1)
Includes results of consolidated reciprocals. (2) Includes results
from runoff operations and eliminations between underwriting units.
DATASOURCE: White Mountains Insurance Group, Ltd. CONTACT: David
Foy of White Mountains Insurance Group, Ltd., +1-203-453-1681 Web
site: http://www.whitemountains.com/
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