HAMILTON, Bermuda, Sept. 9 /PRNewswire-FirstCall/ -- White Mountains
Insurance Group, Ltd. (NYSE: WTM) estimates that its total net losses
resulting from the impact of hurricane Katrina on its insurance and
reinsurance operations will be in a range of $150 - $300 million pretax, or
$100 - $200 million after tax. These estimates are based on industry losses in
the range of $20 billion to $35 billion (inclusive of offshore energy losses)
and are net of all reinstatement premiums. The impact on profit commissions
payable to White Mountains by Olympus Re or on the value of the Company's
investment in Montpelier Re are not included in these estimates.
Ray Barrette, CEO of White Mountains, said, "The devastation created by
hurricane Katrina is extraordinary and the financial consequences will take a
long time to sort out. Our early estimates of losses are based mostly on
exposure information and overall industry estimates of insured damages.
Although this is a large loss for the company, we continue to have a strong
balance sheet with a significant amount of undeployed capital."
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 web site located at http://www.whitemountains.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
The press 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 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
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
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
Tel: (203) 453-1681
SOURCE White Mountains Insurance Group, Ltd.
CONTACT: David Foy, +1-203-453-1681, for White Mountains Insurance