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White Mountains Reports Adjusted Book Value Per Share of $406

HAMILTON, Bermuda, July 30, 2010 /PRNewswire via COMTEX/ --

White Mountains Insurance Group, Ltd. (NYSE: WTM) reported an adjusted book value per share of $406 at June 30, 2010, a decrease of 1% for the quarter.

Ray Barrette, Chairman and CEO, commented, "We had an OK quarter. Adjusted book value per share declined 1%, mostly due to the impact of a strengthening dollar on WMRe Sirius that reduced our book value per share by $7. We remain enthusiastic about our large non-U.S. dollar investment in WMRe Sirius. Otherwise, we had small gains from investments and underwriting. OneBeacon had a 97% combined ratio and closed the sale of its Personal Lines business on July 1, significantly reducing our investment in a business with falling returns and large catastrophe exposures. White Mountains Re reported a 94% combined ratio, a bit elevated by $20 million of development on the Chile earthquake loss. Esurance had an improved quarter with a 101% adjusted combined ratio and 8% premium growth. At Symetra, we are excited about Tom Marra's appointment as CEO. During the quarter, we repurchased $82 million of our shares at 82% of adjusted book value per share. We continue to pursue many value enhancing opportunities, but with our shares trading at these prices, we believe buying shares back is the best use of our undeployed capital for now."

Adjusted comprehensive loss was $67 million in the second quarter and $118 million in the first six months of 2010, compared to adjusted comprehensive income of $236 million in the second quarter and $226 million in the first six months of last year. Net income for the second quarter was $3 million, compared to $180 million in the second quarter of last year, while net loss was $37 million in the first six months of 2010, compared to net income of $211 million in the first six months of last year.

OneBeacon

OneBeacon's book value per share increased 1%, including dividends, in both the second quarter and the first six months of 2010. The GAAP combined ratio for the second quarter was 97% compared to 93% for the second quarter of last year, while the GAAP combined ratio for the first six months was 105% compared to 93% for the first six months of last year. The increase in the GAAP combined ratio for both periods was primarily due to large loss activity and catastrophe losses. The second quarter and first six months of 2010 included 2 points and 6 points of catastrophe losses compared to less than 1 point of catastrophe losses in both the second quarter and first six months of last year.

Mike Miller, CEO of OneBeacon, said, "Our results for the quarter were OK. We experienced a higher than usual level of large property claims and catastrophe losses. Importantly, we completed the sale of our Personal Lines business on July 1, a significant step in our transformation to a specialty company. The market is competitive but we are excited about the prospects for our specialty businesses."

Net written premiums were $344 million in the second quarter and $715 million in the first six months of 2010, a decrease of 31% and 26% from the comparable periods of 2009, reflecting the sale of the non-specialty Commercial Lines business beginning with January 1, 2010 renewal dates. Specialty Lines premiums increased by 2% for the second quarter and 8% for the first six months.

In July, OneBeacon closed the sale of its Personal Lines business to Tower Group, Inc. In the third quarter of 2010, OneBeacon will record an after-tax gain of approximately $19 million on the sale in addition to a $6 million tax benefit booked in the second quarter related to the difference between the tax basis of the companies sold to Tower and the net asset value of those entities under GAAP.

During the second quarter, OneBeacon repurchased $175 million of its senior notes at an average price of 106% of par and recognized a pre-tax loss of $10 million ($7 million after-tax) as a result. OneBeacon's debt-to-total capital at the end of the second quarter was 23%.

White Mountains Re

White Mountains Re's GAAP combined ratio for the second quarter was 94% compared to 87% for the second quarter of last year, while the GAAP combined ratio for the first six months was 113% compared to 83% for the first six months of last year.

Allan Waters, CEO of White Mountains Re, said, "Our Chile loss development is disappointing. Otherwise, we benefited from light catastrophe activity in the quarter, and our $9 million loss from the Deepwater Horizon event was within our underwriting tolerances. While we were able to grow modestly in selected lines during the first half, overall the reinsurance markets continue to be competitive and opportunities for profitable growth remain limited."

The second quarter of 2010 included $24 million (11 points) of natural catastrophe losses, net of reinsurance and reinstatements, primarily from $20 million (9 points) of additional losses from the Chile earthquake, compared to $8 million (4 points) in the second quarter of 2009, primarily from storms in Eastern Europe. The second quarter of 2010 also included $9 million (4 points) of losses from Deepwater Horizon. Partially offsetting these losses was $8 million (4 points) of favorable loss reserve development recorded during the second quarter of 2010, compared to minimal loss reserve development in the second quarter of 2009. For the first six months of 2010, White Mountains Re recorded natural catastrophe losses of $147 million (34 points), including $130 million of Chile earthquake losses, and $7 million from European storm Xynthia. For the first six months of 2009, White Mountains Re recorded $19 million (4 points) of natural catastrophe losses, primarily from European winter storm Klaus.

Net written premiums were up 8% for the quarter and 10% for the six months. These increases are primarily due to increases in the trade credit and accident and health lines and the effects of foreign currency translation.

Esurance

Esurance's adjusted combined ratio for the second quarter was 101% compared to 99% in the second quarter of last year, while the adjusted combined ratio for the first six months was 103% compared to 101% for the first six months of last year. The loss and LAE ratio was 73% and 74% for the second quarter and first six months of 2010 compared to 71% and 73% in the second quarter and first six months of last year. The increase in the loss ratio for both periods was due to a greater incidence of large injury claims, a decline in the average premium per policy on new business, and an increase in catastrophe claims, partially offset by higher favorable loss reserve development. Favorable loss reserve development was $4 million (2 points) in the second quarter and $9 million (2 points) in the first six months of 2010 compared to $1 million of favorable loss reserve development in both the second quarter and first six months of last year. The adjusted expense ratio was 28% for the second quarter and 29% for the first six months of 2010 compared to 28% for both the second quarter and first six months of last year. The increase in the adjusted expense ratio in the first six months of 2010 compared to the first six months of last year was primarily due to increased advertising expenses.

Gary Tolman, CEO of Esurance, said, "We've had good top-line growth for the first half of the year due to strong new policy sales and higher renewal retentions. Our new advertising campaign, launched in June, should help us continue this growth. Loss results were higher than expected in the second quarter and we have taken rate actions in a few problem states to correct the trend. Answer Financial continues to perform well."

Controlled premiums, which include policies sold by Answer Financial, were $1.2 billion on a trailing twelve month basis. Controlled premiums were $282 million and $602 million in the second quarter and first six months of 2010, compared to $266 million and $565 million in the second quarter and first six months of last year. Gross premiums written by Esurance were $194 million in the second quarter and $426 million in the first six months of 2010, an 8% increase from comparable periods of 2009. Esurance ended the second quarter with 839,000 policies-in-force (including 324,000 policies at Answer Financial and 16,000 property policies), an increase of 80,000 from June 30, 2009.

In 2010, Esurance began reporting its expense and combined ratios on an adjusted basis, deducting referral fee revenues from acquisition expenses in order to better reflect this growing benefit, which is a by-product of our advertising expenditures. See "Regulation G" below.

Other Operations

White Mountains' Other Operations segment's pre-tax loss in the second quarter and first six months of 2010 was $38 million and $52 million, compared to $38 million and $76 million in the second quarter and first six months of last year. WM Life Re reported $9 million and $12 million of pre-tax loss in the second quarter and first six months compared to $27 million and $58 million of pre-tax loss in the second quarter and first six months of 2009. For both periods, the improvements at WM Life Re were primarily offset by increased mark-to-market losses on the Symetra warrants and higher incentive compensation expenses.

Investment Activities

The GAAP total return on invested assets for the second quarter and first six months of 2010 was -0.8% and 0.7%, which included -1.1% and -1.4% of currency losses, compared to 4.5% and 4.3% for the second quarter and first six months of last year, which included 1.0% and 0.4% of currency gains.

Manning Rountree, President of White Mountains Advisors, said, "Our total investment portfolio was down 0.8% for the second quarter and up 0.7% for the first six months. Dollar strengthening reduced returns by 1.1% for the second quarter and 1.4% for the first six months. In local currencies, our fixed income portfolio was up 1.1% for the second quarter and 2.5% for the first six months. These are good absolute returns, but we lagged longer-duration indices during the European sovereign crisis and the ensuing flight to quality. The fixed income portfolio remains short, safe and sound. Our equity portfolio was down 4.5% for the second quarter and 1.2% for the first six months, an excellent relative but poor absolute return. We have made progress in deploying our cash and short-term investments, and we expect this to continue going forward."

Capital Management

White Mountains estimates that its undeployed capital grew from over $700 million at the end of last year to about $900 million as of July 1 upon completion of the OneBeacon Personal Lines sale. White Mountains has repurchased and retired 347,409 of its common shares for $117 million under its share repurchase program in the first six months of 2010, including $82 million in the second quarter at an average share price of $335, which was approximately 82% of White Mountains' June 30, 2010 adjusted book value per share.

David Foy, EVP and Chief Financial Officer, commented, "At the investor day in May, I mentioned that undeployed capital would grow to $1.2 billion to $1.3 billion this year absent capital management activities. This was accomplished as of July 1 when the OneBeacon Personal Lines transaction closed. We have utilized about $200 million to repurchase debt at OneBeacon and over $100 million to repurchase White Mountains shares, leaving us with roughly $900 million in the consolidated organization. We expect to continue to repurchase shares in the second half of the year."

Additional Information

White Mountainsis 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. White Mountains expects to file its Form 10-Q with the Securities and Exchange Commission on or before August 9, 2010 and urges shareholders to refer to that document for more complete information concerning its financial results.

Regulation G

This earnings release includes four 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 book value per share is a non-GAAP financial measure which is derived by expanding the calculation of GAAP book value per share to exclude equity in 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 restricted common shares, the compensation cost of which, at the date of calculation, has yet to be amortized. The reconciliation of adjusted book value per share to GAAP book value per share is included on page 7.

Adjusted comprehensive income (loss) is a non-GAAP financial measure that excludes the change in equity in net unrealized gains (losses) from Symetra's fixed maturity portfolio from comprehensive income (loss). The reconciliation of adjusted comprehensive income (loss) to comprehensive income (loss) is included on page 8.

Esurance's adjusted expense ratio and adjusted combined ratio are non-GAAP financial measures. To calculate the adjusted expense ratio and adjusted combined ratio, acquisition expenses are reduced by referral fee revenue. Referral fee revenue, which is recorded as a component of other revenues under GAAP, represents fees that Esurance receives for referring customers for whom it does not write policies to other insurance carriers. Management believes that Esurance's adjusted expense ratio and adjusted combined ratio are better measures to evaluate Esurance's underwriting results than its GAAP expense ratio and GAAP combined ratio because the expenses that are incurred to acquire policyholders at Esurance, particularly advertising expenses, also lead to referral fee revenue. The reconciliation of Esurance's adjusted expense ratio and adjusted combined ratio to its GAAP expense ratio and GAAP combined ratio follows:



                           Three Months      Six Months
                            Ended June         Ended
                               30,          June 30,
                         -------------     ----------
                           2010   2009   2010   2009
                           ----   ----   ----   ----
    GAAP expense ratio       30%    29%    31%    29%
    Referral fees           (2)%   (1)%   (2)%   (1)%
                            ---    ---    ---    ---
    Adjusted expense
     ratio                   28%    28%    29%    28%
    GAAP combined
     ratio                  103%   100%   105%   102%
    Referral fees           (2)%   (1)%   (2)%   (1)%
                            ---    ---    ---    ---
    Adjusted combined
     ratio                  101%    99%   103%   101%
    =================       ===    ===    ===    ===



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':

  • change in 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, 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' 2009 Annual Report on Form 10-K;
  • claims arising from catastrophic events, such as hurricanes, earthquakes, floods, fires, terrorist attacks or severe winter weather;
  • 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 customers;
  • an economic downturn or other economic conditions adversely affecting its financial position;
  • recorded loss reserves subsequently proving to have been inadequate;
  • actions taken by ratings agencies from time to time, such as financial strength or credit ratings downgrades or placing ratings on negative watch;
  • 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.

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


                                              June    December      June
                                               30,       31,         30,
                                                2010       2009       2009
                                                ----       ----       ----
     Assets

     Fixed maturity investments             $5,568.6   $6,101.2   $5,929.8
     Short-term investments                  1,663.7    2,098.4    2,023.3
     Common equity securities                  556.3      458.5      262.2
     Convertible fixed maturity
      investments                              196.7      233.1      300.3
     Other long-term investments               404.0      341.3      405.4


         Total investments                   8,389.3    9,232.5    8,921.0

     Cash                                      348.8      366.0      405.2
     Reinsurance recoverable on unpaid
      losses                                 2,778.6    2,790.9    2,825.0
     Reinsurance recoverable on paid
      losses                                    36.8       35.0       42.9
     Insurance and reinsurance premiums
      receivable                               861.4      785.5      986.5
     Funds held by ceding companies            111.0      123.1      141.4
     Investments in unconsolidated
      affiliates                               410.0      344.8      209.0
     Deferred acquisition costs                241.9      303.8      329.4
     Deferred tax asset                        567.3      564.0      567.5
     Ceded unearned insurance and
      reinsurance premiums                     249.3      111.1      159.2
     Value of acquired business in force
      -Answer Financial                         30.1       35.8       42.7
     Accounts receivable on unsettled
      investment sales                          87.1       27.6       10.3
     Assets held for sale -OneBeacon
      Personal Lines transaction               655.6          -          -
     Other assets                              735.5      723.1      910.9
                                               -----      -----      -----

         Total assets                      $15,502.7  $15,443.2  $15,551.0
                                           =========  =========  =========

     Liabilities

     Loss and loss adjustment expense
      reserves                              $6,643.3   $6,802.1   $6,999.8
     Unearned insurance and reinsurance
      premiums                               1,385.7    1,498.5    1,704.4
     Debt                                      851.7    1,050.7    1,271.4
     Deferred tax liability                    320.9      355.3      309.4
     Ceded reinsurance payable                 268.8       92.0      158.6
     Funds held under reinsurance
      treaties                                  80.4       97.4       55.9
     Accounts payable on unsettled
      investment purchases                      51.8        9.1       64.4
     Liabilities held for sale -
      OneBeacon Personal Lines
      transaction                              502.3          -          -
     Other liabilities                       1,237.4    1,196.6    1,135.7
                                             -------    -------    -------

         Total liabilities                  11,342.3   11,101.7   11,699.6
                                            --------   --------   --------

     White Mountains' common
      shareholders' equity

     White Mountains' common shares and
      paid-in surplus                        1,406.1    1,445.0    1,436.2
     Retained earnings                       2,108.7    2,215.9    1,956.6
     Accumulated other comprehensive
      income (loss), after tax:
       Equity in unrealized gains (losses)
        from investments in unconsolidated
        affiliates                                .5          -       (1.6)
       Equity in net unrealized gains
        (losses) from Symetra's fixed
        maturity portfolio                      73.8       (9.0)    (120.4)
       Net unrealized foreign currency
        translation (losses) gains and
        other                                  (75.5)       5.5      (66.7)
                                               -----        ---      -----

         Total White Mountains' common
          shareholders' equity               3,513.6    3,657.4    3,204.1
                                             -------    -------    -------

     Noncontrolling interests
       Noncontrolling interest -OneBeacon
        Ltd.                                   337.9      351.0      315.5
       Noncontrolling interest -WMRe
        Group Preference Shares                250.0      250.0      250.0
       Noncontrolling interest -
        consolidated limited partnerships
        and A.W.G. Dewar                        58.9       83.1       81.8
                                                ----       ----       ----

         Total noncontrolling interests        646.8      684.1      647.3
                                               -----      -----      -----

     Total equity                            4,160.4    4,341.5    3,851.4
                                             -------    -------    -------

     Total liabilities and equity          $15,502.7  $15,443.2  $15,551.0
                                           =========  =========  =========




                                                                    (more)


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



                                             March   December
                                 June 30,     31,       31,         June 30,
                                     2010      2010       2009          2009
                                     ----      ----       ----          ----
    Book value per share
     numerators (in millions):

    White Mountains' common
     shareholders' equity        $3,513.6  $3,598.3   $3,657.4      $3,204.1
      Benefits to be received
       from common share
       obligations under
       employee stock option
       plans (1)                        -      -      .4        1.1
                                      ---       ---        ---           ---
    Book value per share
     numerator                    3,513.6   3,598.3    3,657.8       3,205.2
      Equity in net unrealized
       (gains) losses from
       Symetra's fixed maturity
       portfolio                    (73.8)    (23.8)       9.0         120.4
    Adjusted book value per
     share numerator             $3,439.8  $3,574.5   $3,666.8      $3,325.6
                                 ========  ========   ========      ========

    Book value per share
     denominators (in
     thousands of shares):

    Common shares outstanding     8,532.4   8,775.6    8,860.2       8,857.6
      Common share obligations
       under employee stock
       option plans(1)                  -         -        2.4           6.0
                                      ---       ---        ---           ---
    Book value per share
     denominator                  8,532.4   8,775.6    8,862.6       8,863.6
      Unearned restricted common
       shares                       (58.6)    (69.6)     (59.1)        (76.9)
    Adjusted book value per
     share denominator            8,473.8   8,706.0    8,803.5       8,786.7
                                  =======   =======    =======       =======

    Book value per share          $411.79   $410.04    $412.73       $361.61
    Adjusted book value per
     share                        $405.94   $410.59    $416.52       $378.48
                                  =======   =======    =======       =======



    (1) Assumes conversion of in-the-money stock options.

                                                          (more)

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


                                                Three Months Ended
                                                     June 30,
                                                     --------
                                                    2010             2009
                                                    ----             ----
     Revenues:
       Earned insurance and reinsurance
        premiums                                  $859.1           $898.3
       Net investment income                        57.5             77.2
       Net realized and unrealized investment
        gains                                        1.8            214.9
       Other revenue                                10.0             28.5
                                                    ----             ----

         Total revenues                            928.4          1,218.9
                                                   -----          -------
     Expenses:
       Loss and loss adjustment expenses           554.6            528.9
       Insurance and reinsurance acquisition
        expenses                                   183.0            179.8
       Other underwriting expenses                 100.5            128.7
       General and administrative expenses          63.3             52.5
       Amortization of Answer Financial
        purchase accounting adjustments and
        accretion
        of fair value adjustment to loss and
         lae reserves                                5.2              6.9
       Interest expense on debt                     14.7             18.3
                                                    ----             ----

         Total expenses                            921.3            915.1
                                                   -----            -----

     Pre-tax income (loss)                           7.1            303.8

       Income tax benefit (expense)                   .8            (88.6)
                                                     ---            -----

     Income (loss) before equity in
      earnings of unconsolidated affiliates          7.9            215.2
       Equity in earnings (losses) of
        unconsolidated affiliates                    5.3              8.6
                                                     ---              ---

     Net income (loss)                              13.2            223.8
       Net income attributable to
        noncontrolling interests                   (10.7)           (43.5)
                                                   -----            -----
     Net income (loss) attributable to
      White Mountains' common shareholders           2.5            180.3
                                                     ---            -----

     Comprehensive income (loss), net of
      tax:
       Change in equity in net unrealized
        gains from investments in
        unconsolidated affiliates                   50.4             97.6
       Change in foreign currency translation
        and other                                  (69.4)            57.0
                                                   -----             ----

     Comprehensive (loss) income                   (16.5)           334.9
       Comprehensive income attributable to
        noncontrolling interests                                     (1.5)
                                                     ---             ----
     Comprehensive (loss) income
      attributable to White Mountains'
      common shareholders                          (16.5)           333.4
                                                   -----            -----

       Change in equity in net unrealized
        gains from Symetra's fixed maturity
        portfolio                                  (50.0)           (97.9)
                                                   -----            -----

     Adjusted comprehensive (loss) income         $(66.5)          $235.5
                                                  ======           ======

     Basic earnings (loss) per common share         $.28           $20.35


     Diluted earnings (loss) per common
      share                                         $.28           $20.35


     Dividends declared and paid per common
      share                                   $        -       $        -






                                              Six Months Ended
                                                  June 30,
                                                  --------
                                                   2010            2009
                                                   ----            ----
     Revenues:
       Earned insurance and reinsurance
        premiums                               $1,723.8        $1,809.7
       Net investment income                      118.1           138.3
       Net realized and unrealized investment
        gains                                      88.8           191.6
       Other revenue                               41.8            45.8
                                                   ----            ----

         Total revenues                         1,972.5         2,185.4
                                                -------         -------
     Expenses:
       Loss and loss adjustment expenses        1,257.8         1,072.1
       Insurance and reinsurance acquisition
        expenses                                  368.0           362.0
       Other underwriting expenses                216.4           244.1
       General and administrative expenses        108.1           103.1
       Amortization of Answer Financial
        purchase accounting adjustments and
        accretion
        of fair value adjustment to loss and
         lae reserves                              10.9            14.7
       Interest expense on debt                    31.0            37.2
                                                   ----            ----

         Total expenses                         1,992.2         1,833.2
                                                -------         -------

     Pre-tax income (loss)                        (19.7)          352.2

       Income tax benefit (expense)                 1.0          (100.9)
                                                    ---          ------

     Income (loss) before equity in earnings
      of unconsolidated affiliates                (18.7)          251.3
       Equity in earnings (losses) of
        unconsolidated affiliates                  (6.3)            9.5
                                                   ----             ---

     Net income (loss)                            (25.0)          260.8
       Net income attributable to
        noncontrolling interests                  (12.1)          (50.2)
                                                  -----           -----
     Net income (loss) attributable to White
      Mountains' common shareholders              (37.1)          210.6
                                                  -----           -----

     Comprehensive income (loss), net of
      tax:
       Change in equity in net unrealized
        gains from investments in
        unconsolidated affiliates                  83.3            79.4
       Change in foreign currency translation
        and other                                 (81.0)           18.0
                                                  -----            ----

     Comprehensive (loss) income                  (34.8)          308.0
       Comprehensive income attributable to
        noncontrolling interests                                   (1.8)
                                                    ---            ----
     Comprehensive (loss) income
      attributable to White Mountains'
      common shareholders                         (34.8)          306.2
                                                  -----           -----

       Change in equity in net unrealized
        gains from Symetra's fixed maturity
        portfolio                                 (82.8)          (79.9)
                                                  -----           -----

     Adjusted comprehensive (loss) income       $(117.6)         $226.3
                                                =======          ======

     Basic earnings (loss) per common share      $(4.24)         $23.82


     Diluted earnings (loss) per common
      share                                      $(4.24)         $23.82


     Dividends declared and paid per common
      share                                       $1.00           $1.00


                                                                (more)


                                 WHITE MOUNTAINS INSURANCE GROUP, LTD.
                            QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS)
                                             (in millions)
                                              (Unaudited)

     For the Three Months Ended June 30, 2010


                              OneBeacon    WMRe   Esurance Other   Total
                              ---------    ----   -------- -----   -----
     Revenues:
       Earned insurance and
        reinsurance premiums      $428.3  $221.1    $209.7     $-  $859.1
       Net investment income        25.0    22.3       6.7    3.5    57.5
       Net realized and
        unrealized investment
        (losses) gains             (14.4)   26.0       1.4  (11.2)    1.8
       Other revenue -
        foreign currency
        translation loss               -   (13.7)        -      -   (13.7)
       Other revenue -
        referral fee revenue           -       -       3.8      -     3.8
       Other revenue -
        Tuckerman Fund I               -       -         -    5.3     5.3
       Other revenue                (2.3)     .4      11.2    5.3    14.6

         Total revenues            436.6   256.1     232.8    2.9   928.4
                                   -----   -----     -----    ---   -----

     Expenses:
       Loss and loss
        adjustment expenses        261.9   140.2     152.5      -   554.6
       Insurance and
        reinsurance
        acquisition expenses        95.2    43.3      44.5      -   183.0
       Other underwriting
        expenses                    58.5    23.4      18.6      -   100.5
       General and
        administrative
        expenses -Tuckerman
        Fund I                         -       -         -    4.7     4.7
       General and
        administrative
        expenses                     6.8     6.9       9.2   35.7    58.6
       Amortization of Answer
        Financial purchase
        accounting
        adjustments                    -       -       3.1      -     3.1
       Accretion of fair
        value adjustment to
        loss and lae reserves          -     2.1         -      -     2.1
       Interest expense on
        debt                         7.9     6.5         -     .3    14.7

         Total expenses            430.3   222.4     227.9   40.7   921.3
                                   -----   -----     -----   ----   -----


     Pre-tax income (loss)          $6.3   $33.7      $4.9 $(37.8)   $7.1
                                    ====   =====      ==== ======    ====



    For the Three Months Ended June 30, 2009


                               OneBeacon   WMRe  Esurance Other    Total
                               ---------   ----  -------- -----    -----
     Revenues:
       Earned insurance and
        reinsurance premiums       $490.2 $210.7   $197.4     $-   $898.3
       Net investment income         36.1   31.4      6.2    3.5     77.2
       Net realized and
        unrealized investment
        gains                       127.4   65.8     18.1    3.6    214.9
       Other revenue -foreign
        currency translation
        gain                            -   26.0        -      -     26.0
       Other revenue -
        referral fee revenue            -      -      1.6      -      1.6
       Other revenue -
        Tuckerman Fund I and
        II                              -    7.8        -    4.3     12.1
       Other revenue                  1.1    1.4     11.1  (24.8)   (11.2)

         Total revenues             654.8  343.1    234.4  (13.4) 1,218.9
                                    -----  -----    -----  -----  -------

     Expenses:
       Loss and loss
        adjustment expenses         275.7  113.7    139.5      -    528.9
       Insurance and
        reinsurance
        acquisition expenses         97.0   43.2     39.6      -    179.8
       Other underwriting
        expenses                     84.3   26.1     18.3      -    128.7
       General and
        administrative
        expenses -Tuckerman
        Fund I and II                   -    8.4        -    4.3     12.7
       General and
        administrative
        expenses                      6.5    6.3      8.4   18.6     39.8
       Amortization of Answer
        Financial purchase
        accounting adjustment           -      -      4.3      -      4.3
       Accretion of fair value
        adjustment to loss and
        lae reserves                  1.3    1.3        -      -      2.6
       Interest expense on
        debt                         10.1    6.5        -    1.7     18.3

         Total expenses             474.9  205.5    210.1   24.6    915.1
                                    -----  -----    -----   ----    -----


     Pre-tax income (loss)         $179.9 $137.6    $24.3 $(38.0)  $303.8
                                   ====== ======    ===== ======   ======

                                                                   (more)


                                  WHITE MOUNTAINS INSURANCE GROUP, LTD.
                             YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS)
                                              (in millions)
                                               (Unaudited)

     For the Six Months Ended June 30, 2010


                             OneBeacon  WMRe   Esurance Other     Total
                             ---------  ----   -------- -----     -----
     Revenues:
       Earned insurance and
        reinsurance premiums    $881.5 $433.7    $408.6     $-  $1,723.8
       Net investment income      53.3   44.9      13.0    6.9     118.1
       Net realized and
        unrealized
        investment gains
        (losses)                  28.0   66.1       6.0  (11.3)     88.8
       Other revenue -
        foreign currency
        translation loss             -  (20.2)        -      -     (20.2)
       Other revenue -
        referral fee revenue         -      -       7.2      -       7.2
       Other revenue -
        Tuckerman Fund I             -      -         -    9.4       9.4
       Other revenue               4.2   13.3      22.2    5.7      45.4

         Total revenues          967.0  537.8     457.0   10.7   1,972.5
                                 -----  -----     -----   ----   -------

     Expenses:
       Loss and loss
        adjustment expenses      595.6  358.4     303.8      -   1,257.8
       Insurance and
        reinsurance
        acquisition expenses     196.6   84.8      86.6      -     368.0
       Other underwriting
        expenses                 132.7   44.8      38.9      -     216.4
       General and
        administrative
        expenses -Tuckerman
        Fund I                       -      -         -    8.7       8.7
       General and
        administrative
        expenses                  14.5   14.2      17.5   53.2      99.4
       Amortization of
        Answer Financial
        purchase accounting
        adjustments                  -      -       6.7      -       6.7
       Accretion of fair
        value adjustment to
        loss and lae
        reserves                     -    4.2         -      -       4.2
       Interest expense on
        debt                      17.0   13.4         -     .6      31.0

         Total expenses          956.4  519.8     453.5   62.5   1,992.2
                                 -----  -----     -----   ----   -------


     Pre-tax income
      (loss)                     $10.6  $18.0      $3.5 $(51.8)   $(19.7)
                                 =====  =====      ==== ======    ======



    For the Six Months Ended June 30, 2009


                              OneBeacon  WMRe  Esurance Other     Total
                              ---------  ----  -------- -----     -----
     Revenues:
       Earned insurance and
        reinsurance premiums     $978.0 $438.1   $393.6     $-  $1,809.7
       Net investment income       58.0   60.8     12.3    7.2     138.3
       Net realized and
        unrealized investment
        gains                     121.5   45.7     21.8    2.6     191.6
       Other revenue -
        foreign currency
        translation gain              -   31.4        -      -      31.4
       Other revenue -
        referral fee revenue          -      -      3.6      -       3.6
       Other revenue -
        Tuckerman Fund I and
        II                            -   20.1        -   10.5      30.6
       Other revenue               10.5     .1     23.0  (53.4)    (19.8)

         Total revenues         1,168.0  596.2    454.3  (33.1)  2,185.4
                                -------  -----    -----  -----   -------

     Expenses:
       Loss and loss
        adjustment expenses       563.7  223.6    284.8      -   1,072.1
       Insurance and
        reinsurance
        acquisition expenses      192.9   90.6     78.5      -     362.0
       Other underwriting
        expenses                  157.0   50.3     36.8      -     244.1
       General and
        administrative
        expenses -Tuckerman
        Fund I and II                 -   19.9        -   10.5      30.4
       General and
        administrative
        expenses                   12.0   13.5     17.6   29.6      72.7
       Amortization of Answer
        Financial purchase
        accounting adjustment         -      -      9.6      -       9.6
       Accretion of fair
        value adjustment to
        loss and lae reserves       2.7    2.4        -      -       5.1
       Interest expense on
        debt                       21.0   13.1        -    3.1      37.2

         Total expenses           949.3  413.4    427.3   43.2   1,833.2
                                  -----  -----    -----   ----   -------


     Pre-tax income (loss)       $218.7 $182.8    $27.0 $(76.3)   $352.2
                                 ====== ======    ===== ======    ======

                                                                  (more)


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



    OneBeacon                  Three Months Ended June 30, 2010
    ---------                  --------------------------------
                       Specialty       Personal      Run-off       Total
                       ---------       --------      -------       -----
    GAAP Ratios
    Loss and LAE              60%            67%           57%         61%
    Expense                   37%            30%           41%         36%
                             ---            ---           ---         ---
      Combined                97%            97%           98%         97%
                             ===            ===           ===         ===

    Net written
     premiums             $237.8         $113.5         $(7.4)     $343.9
    Earned premiums       $241.2         $118.4         $68.7      $428.3




    OneBeacon                  Six Months Ended June 30, 2010
    ---------                  ------------------------------
                       Specialty      Personal      Run-off       Total
                       ---------      --------      -------       -----
    GAAP Ratios
    Loss and LAE              59%           76%          81%          68%
    Expense                   38%           33%          41%          37%
                             ---           ---          ---          ---
      Combined                97%          109%         122%         105%
                             ===           ===          ===          ===

    Net written
     premiums             $498.1        $225.0        $(7.7)      $715.4
    Earned premiums       $477.1        $241.2       $163.2       $881.5




    OneBeacon                  Three Months Ended June 30, 2009
    ---------                  --------------------------------
                       Specialty       Personal      Run-off       Total
                       ---------       --------      -------       -----
    GAAP Ratios
    Loss and LAE              46%            67%           64%         56%
    Expense                   39%            32%           39%         37%
                             ---            ---           ---         ---
      Combined                85%            99%          103%         93%
                             ===            ===           ===         ===

    Net written
     premiums             $233.6         $137.9        $126.4      $497.9
    Earned premiums       $224.3         $146.1        $119.8      $490.2




    OneBeacon                  Six Months Ended June 30, 2009
    ---------                  ------------------------------
                       Specialty      Personal      Run-off       Total
                       ---------      --------      -------       -----
    GAAP Ratios
    Loss and LAE              39%           78%          66%          57%
    Expense                   39%           30%          38%          36%
                             ---           ---          ---          ---
      Combined                78%          108%         104%          93%
                             ===           ===          ===          ===

    Net written
     premiums             $463.1        $269.6       $234.6       $967.3
    Earned premiums       $440.0        $296.3       $241.7       $978.0




    White Mountains
     Re                  Three Months Ended           Six Months Ended
    ---------------
                              June 30,                    June 30,
                              --------                    --------
                          2010         2009          2010        2009
                          ----         ----          ----        ----
    GAAP Ratios
    Loss and LAE            64%          54%           83%         51%
    Expense                 30%          33%           30%         32%
                           ---          ---           ---         ---
         Combined           94%          87%          113%         83%
                           ===          ===           ===         ===

    Gross written
     premiums           $241.2       $224.0        $703.3      $624.3
    Net written
     premiums           $206.9       $191.7        $549.0      $501.0
    Earned premiums     $221.1       $210.7        $433.7      $438.1




    Esurance             Three Months Ended        Six Months Ended
    --------
                              June 30,                June 30,
                              --------                --------
                          2010         2009          2010         2009
                          ----         ----          ----         ----
    Adjusted Ratios
     (1)
    Loss and LAE            73%          71%           74%          73%
    Expense                 28%          28%           29%          28%
                           ---          ---           ---          ---
         Combined          101%          99%          103%         101%
                           ===          ===           ===          ===

    Gross written
     premiums           $194.2       $180.6        $426.3       $394.8
    Net written
     premiums           $193.5       $180.1        $424.8       $393.7
    Earned premiums     $209.7       $197.4        $408.6       $393.6




    (1) Adjusted expense and combined ratios include acquisition
     expenses net of referral fee revenue                        (end)


CONTACT: David Foy (203) 458-5850

SOURCE White Mountains Insurance Group, Ltd.