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White Mountains Reports Adjusted Book Value Per Share of $444

HAMILTON, Bermuda, Aug. 1 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) ended the second quarter with an adjusted book value per share of $444, which was essentially flat for the quarter and an increase of 6% for the past twelve months, including dividends.

Ray Barrette, Chairman and CEO, said, "It was a mixed quarter. As previously reported, we did a thorough review of reserves at White Mountains Re, which resulted in $51 million of net adverse development and a 114% combined ratio in our reinsurance business. However, OneBeacon had a good quarter growing book value per share by 2.2%, and Esurance showed an 8-point improvement in its combined ratio. Investment results were slightly positive overall in another difficult quarter in financial markets as our equities were up 3% while the S&P 500 fell 3%."

White Mountains has changed its principal financial reporting measure from "fully diluted tangible book value per share" to "adjusted book value per share". The difference between the two measures is that adjusted book value per share includes unamortized intangible assets, while fully diluted tangible book value per share does not. The Company determined that adjusted book value per share is a better financial reporting measure than fully diluted tangible book value per share principally because it includes the value of future commissions on acquired business in force from Answer Financial, which was first recorded as an intangible asset during the second quarter of 2008 and totaled $49 million as of June 30, 2008. Trends in adjusted book value per share have not historically diverged noticeably from trends in fully diluted tangible book value per share. Adjusted book value per share is a non-GAAP financial measure and has been presented retroactively for all periods herein.

Adjusted comprehensive net loss for the second quarter of 2008 was $17 million, compared to $90 million of adjusted comprehensive net income in the second quarter of last year. Adjusted comprehensive net loss for the first six months of 2008 was $17 million, compared to $193 million of adjusted comprehensive net income in the first six months of last year.

Net loss for the second quarter was $9 million, compared to net income of $103 million. Net loss for the first six months of 2008 was $66 million, compared to net income of $195 million.

OneBeacon

OneBeacon's adjusted book value per share increased by 2.2% in the quarter and 8.3% in the past twelve months, including dividends. The GAAP combined ratio for the second quarter of 2008 was 94% compared to 97%, while the GAAP combined ratio for both six-month periods was 97%.

Mike Miller, CEO of OneBeacon, said, "We had a good quarter driven by strong underwriting results and positive investment returns. Our 94% combined ratio reflects good underwriting results from all parts of our business. The highlight of the quarter from a top-line perspective was the very strong start in our Hagerty partnership, which contributed significantly to our 9% overall premium growth for the period. We are pleased with most aspects of our results and will continue to focus on underwriting discipline and capital management."

Net written premiums were $530 million for the quarter and $955 million for the first six months, an increase of 9% and 3% from the comparable periods of 2007. Specialty Lines premiums, which includes collector car and boat business in the 2008 periods, increased by 45% and 31%, Commercial Lines premiums increased by 4% and 1% and Personal Lines premiums decreased by 6% and 11% for the second quarter and the first six months of 2008 versus the comparable periods of last year.

During the quarter, OneBeacon redeemed the $300 million Berkshire preferred stock and completed share repurchases of approximately $9 million. In addition, OneBeacon's settlement of all outstanding disputes with Liberty Mutual Insurance Group resulted in a $9 million pre-tax charge in the quarter.

White Mountains Re

White Mountains Re's GAAP combined ratio for the second quarter of 2008 was 114% compared to 90%, while the GAAP combined ratio for the first six months of 2008 was 104% compared to 95%. The increase in combined ratios was primarily due to net unfavorable loss reserve development of $51 million and $84 million for the second quarter and first six months of 2008 compared to $18 million and $26 million of favorable loss development recognized in the comparable prior periods. The unfavorable loss reserve development was primarily the result of a comprehensive review of loss reserves completed in the second quarter of 2008. The reserve review resulted in $140 million of unfavorable development recorded at White Mountains Re America (formerly known as Folksamerica), predominantly attributable to casualty reinsurance written in the 1996-2002 underwriting years, partially offset by $85 million of favorable development recorded at White Mountains Re Sirius, mainly attributable to property reinsurance.

Allan Waters, CEO of White Mountains Re, said, "We are disappointed with these results and our need to increase reserves again. But we dug deep into our casualty reserves and made our best attempt to put these issues behind us. Going forward, I have great confidence in Dwight Evans and the rest of the new management team at White Mountains Re America. Through six months catastrophe activity has been relatively light, and the expected loss ratios on the business we are currently writing remain attractive. The top line is shrinking due to market conditions as we maintain our underwriting discipline. Our balance sheet and capital position are solid."

Gross written premiums were down 23% for the quarter and 15% for the first six months, while net written premiums were down 23% for the quarter and 16% for the six months. These decreases occurred in almost every line of business, especially in casualty.

Esurance

Esurance's GAAP combined ratio for the second quarter of 2008 was 105% compared to 113%, while the GAAP combined ratio for the first six months of 2008 was 109% compared to 112%. Esurance's loss ratio was 75% and 78% for the second quarter and first six months of 2008 compared to 78% and 77% for the comparable periods in 2007. Rate increases and lower claims frequency offset rising severity costs in 2008. In addition, the second quarter and first six months of 2008 did not include any adverse loss reserve development, while loss results for the second quarter and the first six months of 2007 included adverse development of 4 points and 2 points, respectively. The expense ratio decreased to 30% and 31% for the quarter and six months ending June 30, 2008, compared to 35% for both of the comparable prior year periods, driven by reduced acquisition costs.

Gary Tolman, CEO of Esurance, stated, "We are pleased by our improved underwriting results in the second quarter. The rate increases we have taken are beginning to favorably impact loss results, while higher gas prices have reduced driving and, thus, claim frequency. Our growth rate has slowed as we have focused on improving loss results and have reduced marketing spend. The investment in Answer Financial is expanding our platform to meet the needs of insurance shoppers and should improve our growth over time."

Gross written premiums for Esurance were $199 million for the second quarter and $430 million for the first six months, an increase of 6% and 9% from the comparable periods of 2007. Direct premiums for the trailing twelve months were $835 million. Controlled premiums, including premiums paid by Answer Financial customers, have reached about $1.2 billion. The Esurance segment has approximately 780,000 policies-in-force, including almost 280,000 policies at Answer Financial.

On July 30, 2008, White Mountains acquired the remaining equity and debt interests from the minority owner of Answer Financial for approximately $46 million. As a result, the Company now owns 100% of Answer Financial.

Other Operations

White Mountains' Other Operations segment's pre-tax income for the second quarter of 2008 was $6 million, compared to $10 million. For the first six months of 2008, pre-tax loss was $24 million, compared to pre-tax income of $6 million. For both periods in 2008, the value of the Company's investment in Symetra warrants decreased due to a decline in the valuation of stocks in the life insurance sector. For the second quarter of 2008, the value of Symetra warrants decreased by $7 million compared to an increase in value of $5 million in last year's second quarter, while the value of Symetra warrants decreased by $11 million over the first six months of 2008 compared to an increase in value of $8 million in the first six months of last year. The second quarter also included $12 million in gains from the Life Re business as a result of the mark-to-market valuation of Life Re's assets and liabilities, while the first six months of 2008 included $9 million of losses from the Life Re business.

During the quarter, the Company completed share repurchases of approximately $8 million.

Investment Activities

The GAAP total return on invested assets for the second quarter and the first six months of 2008 was 0.4% and 0.9% compared to 1.6% and 3.5% in the comparable periods of 2007. Net investment income was $112 million in the second quarter and $229 million in the first six months, versus $127 million and $245 million in comparable periods of last year.

Mark Dorcus, President of White Mountains Advisors, said, "It was another tough quarter for the markets as the economy moved closer to recession, inflation refused to fade, and financial institutions continued the string of spectacular write-downs of their asset values. Despite a significant decline in the bond market and further erosion in the equity markets, we were able to post a modest positive result for the overall portfolio. As a result of our conservative positions and focus on security selection, our bonds slid only 0.2%, while our equities gained just over 3%. The Lehman Aggregate Index was down 1.0% and the S&P 500 dropped 2.7%."

Effective January 1, 2008, the Company adopted FAS 159 and elected to record the changes in unrealized gains and losses from nearly all of its investment portfolio in net income. In prior periods, these changes have been included in other comprehensive income rather than in net income. Accordingly, net income (loss) and pre-tax income (loss) for 2008 periods are not directly comparable to such measures for 2007 periods. White Mountains' pre-tax income for the quarter included $54 million of net unrealized investment losses and $5 million of net realized investment losses, compared to $89 million of net realized investment gains in the second quarter of last year. White Mountains' pre-tax income (loss) for the first six months included $159 million of net unrealized investment losses and $18 million of net realized investment losses, compared to $163 million of net realized investment gains in the first six months of last year.

Additional Information

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 www.whitemountains.com. The Company expects to file its Form 10-Q with the Securities and Exchange Commission on or before August 11, 2008 and urges shareholders to refer to that document for more complete information concerning White Mountains' financial results.

Regulation G

This earnings release includes three 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. The reconciliation of adjusted comprehensive net income to comprehensive net income is included on page 8.

Adjusted book value per share is a non-GAAP measure which is derived by expanding the GAAP book value per share calculation to exclude net unrealized gains/(losses) from Symetra's fixed maturity portfolio. In addition, the number of common shares outstanding used in the calculation of adjusted book value per share are adjusted to exclude unearned shares of restricted stock representative of the proportion of unamortized compensation cost at the date of the calculation to the value of the restricted stock on the date of issuance. The reconciliation of adjusted book value per share to book value per share is included on page 7.

During the second quarter of 2008, White Mountains changed its principal financial reporting measure from "fully diluted tangible book value per share" to "adjusted book value per share". Fully diluted tangible book value per share is a non-GAAP measure that differs from adjusted book value per share by excluding goodwill and other intangible assets. The change from fully diluted tangible book value per share to adjusted book value per share has been presented retroactively for all periods. As a result of the change, goodwill and other intangible assets are included in the calculation for all periods presented. For periods ended March 31, 2008 and prior, the Company had not recorded any significant intangible assets other than goodwill. The goodwill, which primarily relates to the FIN 46 consolidation of the Company's investment in the Tuckerman Funds, was $34.4 million, $34.0 million, $30.4 million and $28.4 million as of June 30, 2008, March 31, 2008, December 31, 2007 and June 30, 2007, respectively. The inclusion of goodwill in adjusted book value per share did not have a significant effect on the calculation of growth per share for any periods presented.

    Adjusted book value per common share at OneBeacon is a non-GAAP financial
measure which is derived by excluding the impact of economically defeasing
OneBeacon's mandatorily redeemable preferred stock from book value per common
share, the most closely comparable GAAP measure. Management believes that
adjusted book value per common share is a useful supplement to understanding
OneBeacon's earnings and profitability. A reconciliation of OneBeacon's book
value per common share to OneBeacon's adjusted book value per common share
follows:




    (millions, except
     per share amounts)          June 30,  Mar. 31,   Dec. 31,     June 30,
                                    2008      2008       2007         2007
    OneBeacon book value per
     share numerators:
    OneBeacon common
     shareholders' equity       $1,609.1  $1,613.0   $1,906.5     $1,861.3
      Remaining accretion of
       subsidiary preferred
       stock to face value           ---     (11.1)     (21.6)       (40.8)
    Adjusted OneBeacon common
     shareholders' equity       $1,609.1  $1,601.9   $1,884.9     $1,820.5
    OneBeacon common shares
     outstanding                    95.5      96.0       98.5        100.0
    OneBeacon book value per
     common share                 $16.85    $16.80     $19.36       $18.61
    OneBeacon adjusted book
     value per common share       $16.85    $16.69     $19.14       $18.21
    Growth in adjusted book
     value per common share
     in the quarter (1)             2.2%
    Growth in adjusted book value
     per common share for the last
     twelve months (1)              8.3%


    (1) Includes $.21 dividend per common share paid quarterly beginning in
        March 2007 and a special dividend of $2.03 per common share paid in
        March 2008.

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':

    -- growth in book value per share or return on equity;
    -- business strategy;
    -- financial and operating targets or plans;
    -- incurred losses 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, dividends, market share or other financial forecasts;
    -- expansion and growth of our 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 our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:

    -- the risks associated with Item 1A of White Mountains' 2007 Annual
       Report on Form 10-K;
    -- claims arising from catastrophic events, such as hurricanes,
       earthquakes, floods or terrorist attacks;
    -- the continued availability of capital and financing;
    -- general economic, market or business conditions;
    -- business opportunities (or lack thereof) that may be presented to it
       and pursued;
    -- competitive forces, including the conduct of other property and
       casualty insurers and reinsurers;
    -- changes in domestic or foreign laws or regulations, or their
       interpretation, applicable to White Mountains, its competitors or its
       clients;
    -- an economic downturn or other economic conditions adversely affecting
       its financial position;
    -- recorded loss reserves subsequently proving to have been inadequate;
    -- 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 publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.

    CONTACT: David Foy
             (203) 458-5850



                      WHITE MOUNTAINS INSURANCE GROUP, LTD.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                         (millions, except share amounts)
                                   (Unaudited)

                                             June 30, December 31, June 30,
                                                2008      2007       2007
    Assets

    Fixed maturity investments                $6,846.4  $7,371.5  $7,524.9
    Common equity securities                   1,620.6   1,550.7   1,402.7
    Short-term investments                     1,988.0   1,327.3   1,152.9
    Other investments                            666.5     603.3     558.5
    Convertible fixed maturity investments       414.6     490.6     544.7
    Investments held in trust                        -     305.6     312.0

        Total investments                     11,536.1  11,649.0  11,495.7

    Reinsurance recoverable on unpaid losses   3,327.6   3,467.9   3,693.2
    Reinsurance recoverable on paid losses        41.2      59.5      57.7
    Funds held by ceding companies               221.0     231.1     366.7
    Insurance and reinsurance premiums
     receivable                                  953.3     877.0   1,007.3
    Securities lending collateral                474.9     661.6     554.0
    Investments in unconsolidated affiliates     289.0     406.3     381.0
    Deferred acquisition costs                   338.4     326.0     351.6
    Ceded unearned premiums                      158.8     123.1     130.9
    Value of acquired business in force - AFI     48.8         -         -
    Accounts receivable on unsettled
     investment sales                             36.5     201.1      24.3
    Goodwill                                      34.4      30.4      28.4
    Other assets                               1,243.8   1,072.6   1,093.5

        Total assets                         $18,703.8 $19,105.6 $19,184.3

    Liabilities

    Loss and loss adjustment expense
     reserves                                 $7,946.4  $8,062.1  $8,364.7
    Unearned insurance and reinsurance
     premiums                                  1,760.3   1,605.2   1,735.7
    Debt                                       1,520.6   1,192.9   1,183.6
    Securities lending payable                   476.3     661.6     554.0
    Deferred tax liability                       453.8     353.2     312.0
    Preferred stock subject to mandatory
     redemption                                      -     278.4     259.2
    Ceded reinsurance payable                     88.4     124.8     125.4
    Funds held under reinsurance treaties         76.0     103.0     110.4
    Accounts payable on unsettled investment
     purchases                                    72.8      46.4      32.0
    Other liabilities                            963.2   1,097.2   1,044.4

        Total liabilities                     13,357.8  13,524.8  13,721.4

      Minority interest - OneBeacon Insurance
       Group, Ltd.                               400.0     517.2     526.0
      Minority interest - White Mountains Re
       Group, Ltd. Preference Shares             250.0     250.0     250.0
      Minority interest - consolidated
       limited partnerships                       98.7     100.2     111.6

    Total minority interest                      748.7     867.4     887.6

    Common Shareholders' Equity

    Common shares and paid-in surplus          1,701.7   1,691.2   1,731.9
    Retained earnings                          2,802.2   2,718.5   2,647.5
    Accumulated other comprehensive income
     (loss), after tax:
      Net unrealized gains on investments            -     208.9     177.1
      Equity in unrealized
       (losses) gains from investments in
       unconsolidated affiliates                  (1.1)      3.7       5.4
      Equity in net unrealized losses from
       Symetra's fixed maturity portfolio        (65.3)     (5.6)    (38.5)
      Net unrealized foreign currency
       translation gains and other               159.8      96.7      51.9

        Total common shareholders' equity      4,597.3   4,713.4   4,575.3

    Total liabilities, minority interest
     and common shareholders' equity         $18,703.8 $19,105.6 $19,184.3

    Common shares outstanding (000's)           10,552    10,554    10,843
    Common and equivalent shares
     outstanding (000's)                        10,513    10,517    10,806



    WHITE MOUNTAINS INSURANCE GROUP, LTD.
    ADJUSTED BOOK VALUE PER COMMON AND EQUIVALENT SHARE
    (Unaudited)

                                   June 30, March 31, December 31, June 30,
                                     2008      2008       2007       2007
    Book value per share
     numerators (in millions):
    Common shareholders' equity   $4,597.3  $4,679.2   $4,713.4  $ 4,575.3
      Benefits to be received
       from share obligations
       under employee benefit plans    1.5       1.5        1.7        2.3
      Remaining adjustment of
       preferred stock subj. to
       mandatory redemption to
       face value                        -      (8.3)(1)  (15.8)(1)  (29.3)(1)
    Book value per share
     numerator                     4,598.8   4,672.4    4,699.3    4,548.3
      Equity in net unrealized
       losses from Symetra's
       fixed maturity portfolio       65.3      26.3        5.6       38.5
    Adjusted book value per
     common and equivalent.
     share numerator              $4,664.1  $4,698.7   $4,704.9  $ 4,586.8

    Book value per share
     denominators (in thousands
     of shares):
    Common Shares outstanding     10,552.4  10,570.2   10,553.6   10,842.6
      Share obligations under
       employee benefits plans         8.7       8.7        9.9       14.4
    Book value per share
     denominator                  10,561.1  10,578.9   10,563.5   10,857.0
      Unearned restricted shares     (47.8)    (50.4)     (46.5)     (50.6)
    Adjusted book value per
     common and equivalent share
     denominator                  10,513.3  10,528.5   10,517.0   10,806.4

    Book value per common and
     equivalent share              $435.45  $ 441.67   $ 444.86    $420.90
    Adjusted book value per
     common and equivalent share   $443.64  $ 446.28   $ 447.36    $424.45


    (1) Remaining adjustment of subsidiary preferred stock to face value,
        which is representative of White Mountains' ownership interest in
        OneBeacon Insurance Group, Ltd. of 74.7% as of March 31, 2008, 72.9%
        as of December 31, 2007, and 71.7% as of June 30, 2007.



                      WHITE MOUNTAINS INSURANCE GROUP, LTD.
       CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                       (millions, except per share amounts)
                                   (Unaudited)

                                      Three Months Ended    Six Months Ended
                                           June 30,             June 30,
                                       2008       2007      2008        2007
     Revenues:
       Earned insurance and
        reinsurance premiums           $921.7     $960.7  $1,850.8   $1,898.7
       Net investment income            111.7      126.7     228.5      244.7
       Net realized investment
        (losses) gains                   (4.9)      89.1     (17.9)     163.0
       Net unrealized investment loss   (54.2)        -     (159.2)        -
       Other revenue                     64.9       34.1      74.9       70.3

         Total revenues               1,039.2    1,210.6   1,977.1    2,376.7
     Expenses:
       Loss and loss adjustment
        expenses                        632.7      592.1   1,271.4    1,205.4
       Insurance and reinsurance
        acquisition expenses            178.8      203.6     365.5      396.2
       Other underwriting expenses      127.4      136.2     244.2      273.9
       General and administrative
        expenses                         57.8       62.4     116.0      115.3
       Accretion of fair value
        adjustment to loss and loss
        adjustment expense reserves       4.1        5.5       8.3       10.6
       Interest expense on debt          21.7       18.3      41.1       35.1
       Interest expense - dividends
        on preferred stock subject to
        mandatory redemption              4.7        7.5      11.8       15.1
       Interest expense - accretion
        on preferred stock subject to
        mandatory redemption             11.1        8.8      21.6       17.0

         Total expenses               1,038.3    1,034.4   2,079.9    2,068.6

      Pre-tax income (loss)                .9      176.2    (102.8)     308.1

       Income tax benefit (provision)     3.4      (55.8)     36.3      (87.0)

      (Loss) income before equity in
       earnings of unconsolidated
       affiliates, extraordinary item,
       and minority interest              4.3      120.4     (66.5)     221.1
        Equity in earnings of
         unconsolidated affiliates        6.0        8.6       6.4       19.1
        Excess of fair value of
         acquired assets over cost          -          -       4.2         -
        Minority interest               (19.5)     (26.4)    (10.1)     (45.4)

     Net (loss) income                   (9.2)     102.6     (66.0)     194.8
       Change in net unrealized
        losses on investments               -      (30.8)        -      (16.6)
       Change in equity in net
        unrealized losses from
        investments in unconsolidated
        affiliates                      (40.5)     (39.9)    (61.0)     (33.4)
      Change in foreign currency
       translation and other             (6.6)      17.9      50.2       14.1

     Comprehensive net (loss) income    (56.3)      49.8     (76.8)     158.9

       Change in net unrealized
        losses from Symetra's fixed
        maturity portfolio               39.0       40.3      59.7       34.4

     Adjusted comprehensive net
      (loss) income                    $(17.3)     $90.1    $(17.1)    $193.3

     Basic (loss) earnings per share    $(.87)     $9.51    $(6.27)    $18.07


     Diluted (loss) earnings per
      share                             $(.87)     $9.49    $(6.27)    $18.03


     Dividends declared and paid per
      common share                      $2.00      $2.00     $4.00      $4.00



                      WHITE MOUNTAINS INSURANCE GROUP, LTD.
                          YTD SEGMENT INCOME STATEMENTS
                                  (in millions)
                                   (Unaudited)

     For the Six Months Ended June 30, 2008

                                   OneBeacon  WMRe  Esurance  Other   Total
       Revenues:
         Earned insurance and
          reinsurance premiums       $919.1  $513.7  $418.0     $-   $1,850.8
         Net investment income         94.7    97.9    16.4    19.5     228.5
         Net realized investment
          gains (losses)                2.0    (9.1)   (1.9)   (8.9)    (17.9)
         Net unrealized investment
          losses                      (60.0)  (81.9)  (10.4)   (6.9)   (159.2)
         Other revenue (expense)        6.2    (5.4)   15.8    58.3      74.9

           Total revenues             962.0   515.2   437.9    62.0   1,977.1
       Expenses:
         Loss and loss adjustment
          expenses                    575.3   369.7   327.1     (.7)  1,271.4
         Insurance and reinsurance
          acquisition expenses        169.0   106.8    89.7      -      365.5
         Other underwriting expenses  149.3    56.0    37.6     1.3     244.2
         General and administrative
          expenses                     10.3     9.0    10.7    81.3     111.3
         Amortization of Answer
          Financial purchase
          accounting adjustments         -       -      4.7      -        4.7
         Accretion of fair value
          adjustment to loss and lae
          reserves                      6.0     2.3      -       -        8.3
         Interest expense on debt      22.9    13.9      .4     3.9      41.1
         Interest expense  -
          dividends on preferred
          stock                        11.8      -       -       -       11.8
         Interest expense  -
          accretion on preferred
          stock                        21.6      -       -       -       21.6

           Total expenses             966.2   557.7   470.2    85.8   2,079.9

       Pre-tax loss                   $(4.2) $(42.5) $(32.3) $(23.8)  $(102.8)



     For the Six Months Ended June 30, 2007

                                   OneBeacon  WMRe  Esurance Other    Total
       Revenues:
         Earned insurance and
          reinsurance premiums       $933.9  $605.1  $359.7    $-   $1,898.7
         Net investment income        105.2   101.1    13.6   24.8     244.7
         Net realized investment
          gains                       112.0    42.1     2.5    6.4     163.0
         Other revenue                  5.5    (5.5)    6.1   64.2      70.3

           Total revenues           1,156.6   742.8   381.9   95.4   2,376.7
       Expenses:
         Loss and loss adjustment
          expenses                    571.3   367.4   277.4  (10.7)  1,205.4
         Insurance and
          reinsurance acquisition
          expenses                    156.6   144.6    95.0     -      396.2
         Other underwriting
          expenses                    180.5    61.2    30.6    1.6     273.9
         General and
          administrative expenses       5.1    16.2      .2   93.8     115.3
         Accretion of fair value
          adjustment to loss and
          lae reserves                  8.0     2.6      -      -       10.6
         Interest expense on debt      22.7     8.0      -     4.4      35.1
         Interest expense  -
          dividends on preferred
          stock                        15.1      -       -      -       15.1
         Interest expense  -
          accretion on preferred
          stock                        17.0      -       -      -       17.0

           Total expenses             976.3   600.0   403.2   89.1   2,068.6

       Pre-tax income (loss)         $180.3  $142.8  $(21.3)  $6.3    $308.1



                      WHITE MOUNTAINS INSURANCE GROUP, LTD.
                          QTD SEGMENT INCOME STATEMENTS
                                  (in millions)
                                   (Unaudited)

     For the Three Months Ended June 30, 2008

                                      OneBeacon  WMRe  Esurance Other   Total
       Revenues:
         Earned insurance and
          reinsurance premiums          $463.8  $246.9  $211.0   $-    $921.7
         Net investment income            44.6    47.4     8.5  11.2    111.7
         Net realized investment
          (losses) gains                  (1.7)    3.1     (.4) (5.9)    (4.9)
         Net unrealized investment
          losses                           (.9)  (41.6)   (4.8) (6.9)   (54.2)
         Other revenue                     2.6     7.5    12.7  42.1     64.9

           Total revenues                508.4   263.3   227.0  40.5  1,039.2
       Expenses:
         Loss and loss adjustment
          expenses                       274.4   201.5   158.7  (1.9)   632.7
         Insurance and reinsurance
          acquisition expenses            84.3    51.2    43.3    -     178.8
         Other underwriting expenses      79.2    29.0    18.6    .6    127.4
         General and administrative
          expenses                         5.9     3.9    10.1  33.2     53.1
         Amortization of Answer
          Financial purchase accounting
          adjustments                       -       -      4.7    -       4.7
         Accretion of fair value
          adjustment to loss and lae
          reserves                         3.0     1.1      -     -       4.1
         Interest expense on debt         11.4     7.0      .4   2.9     21.7
         Interest expense  - dividends
          on preferred stock               4.7      -       -     -       4.7
         Interest expense  - accretion
          on preferred stock              11.1      -       -     -      11.1

           Total expenses                474.0   293.7   235.8  34.8  1,038.3

       Pre-tax income (loss)             $34.4  $(30.4)  $(8.8) $5.7     $0.9


     For the Three Months Ended June 30, 2007

                                      OneBeacon  WMRe  Esurance Other   Total
       Revenues:
         Earned insurance and
          reinsurance premiums          $465.0  $306.8  $188.9    $-    $960.7
         Net investment income            54.6    53.0     7.4   11.7    126.7
         Net realized investment gains    57.1    22.2     1.5    8.3     89.1
         Other revenue                     2.4    (1.9)    3.1   30.5     34.1

           Total revenues                579.1   380.1   200.9   50.5  1,210.6
       Expenses:
         Loss and loss adjustment
          expenses                       283.1   172.8   147.1  (10.9)   592.1
         Insurance and reinsurance
          acquisition expenses            78.3    75.0    50.3     -     203.6
         Other underwriting
          expenses                        89.6    29.9    15.9     .8    136.2
         General and administrative
          expenses                         2.7     9.6      .1   50.0     62.4
         Accretion of fair value
          adjustment to loss and
          lae reserves                     4.0     1.5      -      -       5.5
         Interest expense on debt         11.3     6.8      -      .2     18.3
         Interest expense  -
          dividends on preferred
          stock                            7.5      -       -      -       7.5
         Interest expense  -
          accretion on preferred
          stock                            8.8      -       -      -       8.8

           Total expenses                485.3   295.6   213.4   40.1  1,034.4

       Pre-tax income (loss)             $93.8   $84.5  $(12.5) $10.4   $176.2



                      WHITE MOUNTAINS INSURANCE GROUP, LTD.
                       SUMMARY OF GAAP RATIOS AND PREMIUMS
                                   (Unaudited)

                                             OneBeacon
                                  Three Months Ended June 30, 2008
                         Specialty   Commercial     Personal     Total (1)
    GAAP Ratios
    Loss and LAE               49%          54%          65%           59%
    Expense                    37%          36%          33%           35%
      Total GAAP Combined      86%          90%          98%           94%
    Dollars in millions
    Net written premiums    $158.6       $202.2       $168.9        $529.6
    Earned premiums         $119.4       $182.7       $161.7        $463.8


    OneBeacon                     Three Months Ended June 30, 2007
                         Specialty   Commercial     Personal     Total (1)

    GAAP Ratios
    Loss and LAE               57%          57%          63%           61%
    Expense                    31%          38%          36%           36%
      Total Combined           88%          95%          99%           97%
    Dollars in millions
    Net written premiums    $109.1       $195.3       $180.4        $484.8
    Earned premiums         $107.4       $177.1       $180.5        $465.0


                              White Mountains Re            Esurance
                              Three Months Ended       Three Months Ended
                                  June 30,                   June 30,
                              2008         2007         2008          2007
    GAAP Ratios
    Loss and LAE               82%          56%          75%           78%
    Expense                    32%          34%          30%           35%
      Total Combined          114%          90%         105%          113%
    Dollars in millions
    Gross written premiums  $241.5       $312.9       $198.5        $186.8
    Net written premiums    $215.3       $279.4       $197.7        $185.7
    Earned premiums         $246.9       $306.8       $211.0        $188.9


                                               OneBeacon
                                  Six Months Ended June 30, 2008
                         Specialty   Commercial     Personal     Total (1)
    GAAP Ratios
    Loss and LAE               53%          63%          65%           63%
    Expense                    34%          37%          32%           34%
      Total GAAP Combined      87%         100%          97%           97%
    Dollars in millions
    Net written premiums    $269.5       $371.9       $313.6        $955.3
    Earned premiums         $229.8       $363.7       $325.3        $919.1


    OneBeacon                     Six Months Ended June 30, 2007
                         Specialty   Commercial     Personal     Total (1)
    GAAP Ratios
    Loss and LAE               57%          56%          64%           61%
    Expense                    31%          38%          37%           36%
      Total Combined           88%          94%         101%           97%
    Dollars in millions
    Net written premiums    $205.1       $366.6       $353.2        $925.1
    Earned premiums         $213.8       $349.7       $370.3        $933.9



                              White Mountains Re             Esurance
                              Six Months Ended           Six Months Ended
                                   June 30,                   June 30,
                              2008         2007         2008          2007
    GAAP Ratios
    Loss and LAE               72%          61%          78%           77%
    Expense                    32%          34%          31%           35%
      Total Combined          104%          95%         109%          112%
    Dollars in millions
    Gross written premiums  $688.4       $811.8       $429.7        $395.6
    Net written premiums    $574.9       $683.0       $428.0        $393.4
    Earned premiums         $513.7       $605.1       $418.0        $359.7


     (1) Includes results from runoff operations.

SOURCE White Mountains Insurance Group, Ltd.
CONTACT: David Foy, +1-203-458-5850, for White Mountains Insurance
Group, Ltd.