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White Mountains Reports Book Value Per Share of $343

HAMILTON, Bermuda, Feb. 2 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. ended the fourth quarter with a fully converted tangible book value per share of $343, up 2% for the year, including dividends.

For the full year 2005, adjusted comprehensive net income was $68 million compared to $539 million in 2004. There was an adjusted comprehensive net loss for the quarter of $11 million, compared to adjusted comprehensive net income of $233 million in the fourth quarter of the prior year.

The following after-tax items impacted the fourth quarter of 2005:

  • $91 million in losses from hurricanes Katrina ($44 million), Rita ($10 million), and Wilma ($37 million). For Katrina and Rita, these losses are in addition to the amounts reported in the third quarter, when the storms hit. In the case of Wilma, the storm occurred in the fourth quarter.
  • $52 million decrease in the value of the Company's investment in Montpelier Re, net of dividends received.
  • $35 million gain recognized from the settlement of OneBeacon's retiree benefit plan through the funding of an independent trust to provide benefits for covered participants.
  • $36 million net reserve increase at OneBeacon.

CEO Steve Fass said, "Due to the hurricane losses, primarily at White Mountains Re, which totaled $288 million after-tax for the year, and the $104 million after-tax decrease in the value of our Montpelier Re holdings for the year, our return in 2005 was well below our target. These losses mask the very strong underwriting results produced by OneBeacon and Esurance's good year with premium growth of 75%. As we look to 2006, the hurricanes have already had a significant impact on reinsurance pricing and capacity. Property rates in cat-exposed areas have increased substantially and rates in other locales are also rising, though less dramatically. We are well positioned to capitalize on these trends due to our strong financial condition, large capacity and broad reinsurance platform."

Net income for the year was $269 million, compared to $419 million in the prior year. Net income for the quarter was $12 million, compared to $165 million in the same quarter of 2004.

OneBeacon

OneBeacon's pretax income for 2005 was $435 million, compared to $391 million in 2004. The GAAP combined ratio was 98%, versus 99% in 2004. For the fourth quarter of 2005, pretax income was $38 million with a GAAP combined ratio of 94%. For the comparable period of 2004, pretax income was $119 million with a GAAP combined ratio of 97%. The GAAP combined ratio benefited by 3 points for the year and 11 points for the quarter from the funding of the retiree benefit trust and was negatively impacted by the same amounts from the net reserve increase in OneBeacon's runoff operations. These actions, together with a rebalancing of reserves between OneBeacon's ongoing and runoff operations, had the effect of lowering the combined ratios for OneBeacon's ongoing business segments.

Net written premiums were $2.1 billion and $462 million for the full year and fourth quarter, respectively, down 14% and 11% from the comparable prior year periods. The decline in premium volume was partially due to the sale of the renewal rights for OneBeacon's legacy New York commercial business in late 2004 and the one-time premium increase in 2004 from the assumption of unearned premiums in the Atlantic Specialty acquisition. In addition, personal lines premium decreased due to lower volumes in Massachusetts, New York, and New Jersey.

Mike Miller, CEO of OneBeacon said, "We were able to achieve our third consecutive year of an underwriting profit despite record industry catastrophe losses. In our continuing effort to maintain a conservative balance sheet, we increased our reserves modestly in the quarter. Our sound balance sheet and focus on underwriting position us well for 2006."

White Mountains Re

White Mountains Re's pretax loss for 2005 was $35 million, compared to pretax income of $87 million in 2004. The GAAP combined ratio for the year was 118% in 2005, versus 104% in 2004. For the fourth quarter of 2005, White Mountains Re's pretax loss was $23 million with a GAAP combined ratio of 127%. For the comparable period of 2004, pretax income was $48 million with a GAAP combined ratio of 104%. The aforementioned storms were the primary reason for the losses in 2005. Net written premiums were $1.3 billion and $270 million for the full year and fourth quarter, respectively, up 5% and 8% from the comparable prior year periods. The increase in full year premiums reflects the acquisition of Sirius in April 2004.

For 2006, White Mountains Re renewed its quota-share reinsurance arrangements with Olympus Re on modified terms. Under the revised arrangements, Folksamerica cedes up to 35% of its short-tailed excess of loss business to Olympus Re and a newly-formed reinsurer, Helicon, in exchange for an override commission. The combined pro-forma capital of Olympus Re and Helicon at January 1, 2006 was approximately $330 million.

Steve Fass added, "In addition to the losses from Wilma, we added to our estimates for Katrina and Rita in the quarter, reflecting the additional knowledge gained since November on the specific accounts where we provide coverage. Also, we made an additional $100 million capital contribution to our Folksamerica subsidiary in the quarter, bringing the total capital support provided since the storms to $250 million. This, coupled with the reinsurance support provided by the recapitalized Olympus and the newly created Helicon, positions us well to fully participate in the improved marketplace."

Esurance

Esurance's pretax loss for 2005 was $13 million, with a pretax loss of $9 million recorded in the fourth quarter. In 2004, Esurance recorded net income of $4 million for both the full year and the fourth quarter. The losses in the 2005 periods were the result of higher acquisition expenses, the impact of the Gulf hurricanes, particularly Wilma, and compensation accruals for a new long- term incentive plan adopted during the third quarter. As a result of these increased expenses, the GAAP combined ratio was 109% for the full year 2005 and 113% in the fourth quarter, compared to 102% and 99% for the respective periods of the prior year. However, the loss ratio for 2005 was 67%, two points better than the prior year, while net written premiums grew 75% for the year and 73% for the quarter.

Gary Tolman, CEO of Esurance, stated, "We achieved our objective for the year, aggressively growing our policyholder base while maintaining strong loss results. We reported a 2 point reduction in our loss ratio while increasing premium 75% year-over-year. The expense ratio was driven higher by an increase in our acquisition cost per policy associated with our expansion of offline marketing programs. With continued excellent loss results and sustained premium growth, we are further building our intrinsic business value."

Other Operations

White Mountains' Other Operations reported a pretax loss of $126 million for the full year 2005, compared to a pretax loss of $235 million in 2004. For the fourth quarter, the segment reported a pretax loss of $30 million versus $55 million in the comparable period of 2004. The lower losses in 2005 reflected lower compensation expense and the benefit of the special dividend from Montpelier Re received in the first quarter of 2005, offset by losses in the value of the Montpelier Re investment reported in this segment.

Investment Activities

The GAAP pretax total return on invested assets in 2005 was 2.1% for the year and 0.3% for the fourth quarter, compared to 7% and 3%, respectively, for the comparable periods of 2004.

Mark Dorcus, President of White Mountains Advisors, said, "The results in 2005 were a mixed bag. Our equity portfolio returned 8%, which was much better than the S&P. This was achieved despite the fact that our largest position, Montpelier, had a significant decline. On the fixed income side, we maintained a short duration, high quality portfolio, which performed consistent with its characteristics, while our exposure to the Swedish krona through Sirius detracted from our returns due to the strengthening of the dollar."

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-K with the Securities and Exchange Commission on or before March 16, 2006 and urges shareholders to refer to that document for more complete information concerning White Mountains' financial results.

Regulation G

This earnings release includes two non-GAAP financial measures that have been reconciled to their most comparable GAAP financial measures. White Mountains believes these measures to be more relevant than comparable GAAP measures in evaluating White Mountains' financial performance.

Adjusted comprehensive net income is a non-GAAP measure that excludes the change in net unrealized gains from Symetra's fixed maturity portfolio from comprehensive net income. GAAP requires these assets to be marked-to-market, which results in gains during periods when interest rates fall and losses in periods when interest rates rise. Because the liabilities related to the life insurance and structured settlement products that these assets support are not marked to market, it is likely that the economic impact on Symetra would be the opposite of that shown under GAAP (i.e., in general, Symetra's intrinsic value increases when interest rates rise and decreases when interest rates fall). The reconciliation of adjusted comprehensive net income to comprehensive net income is included on page 7.

Fully converted tangible book value per share is a non-GAAP measure which is derived by expanding the GAAP book value per share calculation to include the effects of assumed conversion of all convertible securities and to exclude any unamortized goodwill and net unrealized gains from Symetra's fixed maturity portfolio. The reconciliation of fully converted tangible book value per share to book value per share is included on page 6.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The earnings release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to White Mountains':

    X  growth in book value per share or return on equity;

    X  business strategy;

    X  financial and operating targets or plans;

    X  incurred losses and the adequacy of its loss and loss adjustment
       expense reserves and related reinsurance;

    X  projections of revenues, income (or loss), earnings (or loss) per
       share, dividends, market share or other financial forecasts;

    X  expansion and growth of our business and operations; and
       future capital expenditures.

These statements are based on certain assumptions and analyses made by White Mountains in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:


    X  claims arising from catastrophic events, such as hurricanes,
       earthquakes, floods or terrorist attacks;

    X  the continued availability of capital and financing;

    X  general economic, market or business conditions;

    X  business opportunities (or lack thereof) that may be presented to it
       and pursued;

    X  competitive forces, including the conduct of other property and
       casualty insurers and reinsurers;

    X  changes in domestic or foreign laws or regulations, or their
       interpretation, applicable to White Mountains, its competitors or its
       clients;

    X  an economic downturn or other economic conditions adversely affecting
       its financial position;

    X  recorded loss reserves subsequently proving to have been inadequate;

    X  Other factors, most of which are beyond White Mountains' control.

Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by White Mountains will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, White Mountains or its business or operations. White Mountains assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.



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

                                            December   September  December
                                               31,        30,        31,
                                              2005       2005       2004
        Assets

        Fixed maturity investments          $7,582.7   $7,594.2   $7,900.0
        Short-term investments                 727.8    1,027.3    1,058.2
        Common equity securities               967.8    1,000.1    1,043.9
        Other investments                      588.1      507.1      527.4

          Total investments                  9,866.4   10,128.7   10,529.5

        Reinsurance recoverable on unpaid
         losses                              5,025.7    4,824.0    3,797.4
        Reinsurance recoverable on paid
         losses                                 77.0      103.3       92.0
        Funds held by ceding companies         620.4      707.6      943.8
        Insurance and reinsurance premiums
         receivable                          1,014.3    1,039.7      942.2
        Securities lending collateral          674.9      786.9      593.3
        Investments in unconsolidated
         insurance affiliates                  479.7      486.8      466.6
        Deferred acquisition costs             288.4      308.3      308.2
        Ceded unearned premiums                200.7      242.2      224.1
        Accounts receivable on unsettled
         investment sales                       21.7       27.0       19.9
        Other assets                         1,148.9    1,141.3    1,098.1

          Total assets                     $19,418.1  $19,795.8  $19,015.1

        Liabilities

        Loss and loss adjustment expense
         reserves                          $10,231.2  $10,102.6   $9,398.5
        Reserves for structured contracts      224.6      268.3      375.9
        Unearned insurance and reinsurance
         premiums                            1,582.0    1,717.9    1,739.4
        Debt                                   779.1      775.2      783.3
        Securities lending payable             674.9      786.9      593.3
        Preferred stock subject to
         mandatory redemption                  234.0      227.9      211.9
        Ceded reinsurance payable              204.5      219.1      201.4
        Funds held under reinsurance
         treaties                              171.4      169.9      155.4
        Accounts payable on unsettled
         investment purchases                   43.4      162.8       30.9
        Other liabilities                    1,439.8    1,482.4    1,641.2

          Total liabilities                 15,584.9   15,913.0   15,131.2

        Common Shareholders' Equity

        Common shares and paid-in surplus    1,725.3    1,726.9    1,725.8
        Retained earnings                    1,878.7    1,888.0    1,695.9
        Accumulated other comprehensive
         income (loss), after tax:
         Net unrealized gains on
          investments                          230.8      249.4      359.5
         Equity in net unrealized gains
          from Symetra's fixed maturity
          portfolio                             24.2       39.4       56.6
         Net unrealized foreign currency
          translation gains (losses) and
          other                                (25.8)     (20.9)      46.1

          Total common shareholders'
           equity                            3,833.2    3,882.8    3,883.9

        Total liabilities and common
         shareholders' equity              $19,418.1  $19,795.8  $19,015.1

        Common shares outstanding (000's)     10,779     10,774     10,773
        Common and equivalent shares
         outstanding (000's)                  10,814     10,818     10,819


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

                                      December September  December September
                                          31,       30,       31,       30,
                                         2005      2005      2004      2004
    Book value per share numerators
     (in millions):

    Common shareholders' equity        $3,833.2  $3,882.8  $3,883.9  $3,635.9
      Benefits to be received from
       share obligations under
       employee benefit plans               5.1       6.5       6.7       7.1
      Remaining adjustment of
       subsidiary preferred stock to
       face value                         (86.0)    (92.1)   (108.1)   (112.9)
    Book value per share numerator      3,752.3   3,797.2   3,782.5   3,530.1
      Less: Equity in net unrealized
       gains from Symetra's fixed
       maturity portfolio                 (24.2)    (39.4)    (56.6)    (48.1)
      Less: Goodwill                      (24.4)    (25.4)    (20.0)    (20.0)
    Fully converted tangible book
     value per common and equivalent
     share numerator                   $3,703.7  $3,732.4  $3,705.9  $3,462.0

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

    Common Shares outstanding          10,779.2  10,773.7  10,772.8  10,769.4
      Share obligations under employee
       benefits plans                      34.3      44.3      46.5      50.0
    Fully converted tangible book
     value per common and equivalent
     share denominator                 10,813.5  10,818.0  10,819.3  10,819.4

    Book value per common and
     equivalent share                   $347.00   $351.01   $349.60   $326.28
    Fully converted tangible book
     value per common and equivalent
     share                              $342.51   $345.02   $342.52   $319.98


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

                                     Three Months Ended       Year Ended
                                        December 31,          December 31,
                                      2005        2004      2005        2004
     Revenues:
      Earned insurance and
       reinsurance premiums          $917.8      $999.1  $3,798.6    $3,820.5
      Net investment income           102.2       113.3     491.5       360.9
      Net realized investment gains
       (losses)                       (39.2)       71.3      80.1       181.1
      Other revenue                    44.8        64.4     229.2       190.5

        Total revenues              1,025.6     1,248.1   4,599.4     4,553.0
     Expenses:
      Loss and loss adjustment
       expenses                       739.1       656.6   2,858.2     2,591.1
      Insurance and reinsurance
       acquisition expenses           188.3       199.2     761.2       744.4
      Other underwriting expenses      72.7       133.7     428.9       520.4
      General and administrative
       expenses                        18.1       106.9     156.8       309.3
      Accretion of fair value
       adjustment to loss and loss
       adjustment expense reserves      8.8        10.2      36.9        43.3
      Interest expense on debt          9.7        13.5      44.5        49.1
      Interest expense - dividends
       on preferred stock subject
       to mandatory redemption          7.6         7.6      30.3        30.3
      Interest expense - accretion
       on preferred stock subject
       to mandatory redemption          6.0         4.7      22.1        17.3

        Total expenses              1,050.3     1,132.4   4,338.9     4,305.2

     Pretax income (loss)             (24.7)      115.7     260.5       247.8

      Income tax benefit
       (provision)                     31.0        18.7     (25.1)      (47.0)

     Net income before equity in
      earnings of unconsolidated
      affiliates
       and extraordinary item           6.3       134.4     235.4       200.8

      Equity in earnings of
       unconsolidated insurance
       affiliates                       5.9        10.6      33.6        37.4

     Net income before
      extraordinary item               12.2       145.0     269.0       238.2

      Excess of fair value of
       acquired net assets over
       cost                               -        19.8         -       180.5

     Net income                        12.2       164.8     269.0       418.7

      Change in net unrealized
       gains on investments           (33.8)       38.9    (161.1)      130.1
      Change in foreign currency
       translation and other           (4.9)       37.8     (71.9)       46.4

     Comprehensive net income
      (loss)                          (26.5)      241.5      36.0       595.2

      Deduct: Change in net
       unrealized gains and losses
       from Symetra's fixed
       maturity portfolio              15.2        (8.5)     32.4       (56.6)

     Adjusted comprehensive net
      income (loss)                  $(11.3)     $233.0     $68.4      $538.6

     Basic earnings per share:

       Net income before
        extraordinary item            $1.13      $13.48    $25.00      $24.05
       Net income                      1.13       15.31     25.00       42.28

     Diluted earnings per share:

       Net income before
        extraordinary item             $.86      $13.48    $24.60      $22.67
       Net income                       .86       15.31     24.60       39.92

     Dividends declared and paid
      per common share                $2.00          $-     $8.00       $1.00


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

     For the Year Ended December 31, 2005

                               OneBeacon   WM Re   Esurance   Other    Total
       Revenues:
         Earned insurance and
          reinsurance premiums  $2,118.4  $1,371.6  $306.8     $1.8  $3,798.6
         Net investment income     238.1     148.9     9.8     94.7     491.5
         Net realized
          investment gains
          (losses)                 109.3      58.8     2.1    (90.1)     80.1
         Other revenue             134.0      33.5     3.0     58.7     229.2

           Total revenues        2,599.8   1,612.8   321.7     65.1   4,599.4
       Expenses:
         Loss and loss
          adjustment expenses    1,401.5   1,237.9   206.2     12.6   2,858.2
         Insurance and
          reinsurance
          acquisition expenses     390.7     279.6    90.8      0.1     761.2
         Other underwriting
          expenses                 283.1     107.0    37.2      1.6     428.9
         General and
          administrative
          expenses                  88.4      12.4      -      56.0     156.8
         Accretion of fair
          value adjustment to
          loss and lae reserves       -       10.9      -      26.0      36.9
         Interest expense on
          debt                       1.4       0.4      -      42.7      44.5
         Interest expense  -
          dividends and
          accretion on
          preferred stock
           subject to mandatory
            redemption                -         -       -      52.4      52.4

           Total expenses        2,165.1   1,648.2   334.2    191.4   4,338.9

       Pretax income (loss)       $434.7    $(35.4) $(12.5) $(126.3)   $260.5



     For the Year Ended December 31, 2004

                               OneBeacon   WM Re   Esurance  Other    Total
       Revenues:
         Earned insurance
          and reinsurance
          premiums              $2,378.5  $1,265.5  $176.5      $-   $3,820.5
         Net investment
          income                   221.4      98.5     3.5     37.5     360.9
         Net realized
          investment gains         129.6      29.6     1.1     20.8     181.1
         Other revenue             141.8      36.1     2.2     10.4     190.5

          Total revenues         2,871.3   1,429.7   183.3     68.7   4,553.0
       Expenses:
         Loss and loss
          adjustment
          expenses               1,545.2     918.9   122.4      4.6   2,591.1
         Insurance and
          reinsurance
          acquisition
          expenses                 442.3     271.8    30.3       -      744.4
         Other underwriting
          expenses                 369.2     122.9    26.8      1.5     520.4
         General and
          administrative
          expenses                 122.2      15.1      -     172.0     309.3
         Accretion of fair
          value adjustment
          to loss and lae
          reserves                    -       10.1      -      33.2      43.3
         Interest expense on
          debt                       1.0       3.8      -      44.3      49.1
         Interest expense  -
          dividends and
          accretion on
          preferred stock
           subject to
            mandatory
            redemption                -         -       -      47.6      47.6

          Total expenses        2,479.9   1,342.6   179.5     303.2   4,305.2

       Pretax income (loss)      $391.4     $87.1    $3.8   $(234.5)   $247.8


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

     For the Three Months Ended December 31, 2005

                                     OneBeacon  WM Re Esurance  Other    Total
        Revenues:
          Earned insurance and
           reinsurance premiums        $496.4  $327.6  $93.8     $-    $917.8
          Net investment income          46.4    39.8    3.3    12.7    102.2
          Net realized investment
           gains (losses)               (37.3)   27.8   (1.2)  (28.5)   (39.2)
          Other revenue                  35.1     3.1    0.7     5.9     44.8

            Total revenues              540.6   398.3   96.6    (9.9) 1,025.6
        Expenses:
          Loss and loss adjustment
           expenses                     341.0   323.1   64.7    10.3    739.1
          Insurance and reinsurance
           acquisition expenses          90.7    68.8   28.8      -     188.3
          Other underwriting expenses    35.3    24.9   12.2     0.3     72.7
          General and administrative
           expenses                      35.7     3.4     -    (21.0)    18.1
          Accretion of fair value
           adjustment to loss and lae
           reserves                        -      2.3     -      6.5      8.8
          Interest expense on debt        0.3    (1.3)    -     10.7      9.7
          Interest expense  -
           dividends and accretion on
           preferred stock
            subject to mandatory
             redemption                    -       -      -     13.6     13.6

            Total expenses              503.0   421.2  105.7    20.4  1,050.3

        Pretax income (loss)            $37.6  $(22.9) $(9.1) $(30.3)  $(24.7)



     For the Three Months Ended December 31, 2004


                                      OneBeacon WM Re Esurance Other    Total
       Revenues:
         Earned insurance and
          reinsurance premiums         $584.0  $362.1  $53.0     $-    $999.1
         Net investment income           59.7    38.3    1.3    14.0    113.3
         Net realized investment
          gains                          22.6    20.6    0.5    27.6     71.3
         Other revenue                   48.8    13.1    0.9     1.6     64.4

           Total revenues               715.1   434.1   55.7    43.2  1,248.1
       Expenses:
         Loss and loss adjustment
          expenses                      365.0   263.6   33.4    (5.4)   656.6
         Insurance and reinsurance
          acquisition expenses          114.2    74.6   10.4      -     199.2
         Other underwriting
          expenses                       85.2    39.8    8.5     0.2    133.7
         General and administrative
          expenses                       31.4     3.5   (0.3)   72.3    106.9
         Accretion of fair value
          adjustment to loss and
          lae reserves                      -     3.7      -     6.5     10.2
         Interest expense on debt         0.3     1.1      -    12.1     13.5
         Interest expense  -
          dividends and accretion
          on preferred stock
           subject to mandatory
            redemption                      -       -      -    12.3     12.3

           Total expenses               596.1   386.3   52.0    98.0  1,132.4

       Pretax income (loss)            $119.0   $47.8   $3.7  $(54.8)  $115.7


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

    Year Ended December 31, 2005
                                       OneBeacon                WM Re Esurance
                          Specialty Personal Commercial Total(1)
    GAAP Ratios
    Loss and LAE             64%      56%      55%       66%       90%     67%
    Expense                  31%      29%      38%       32%       28%     42%
         Total Combined      95%      85%      93%       98%      118%    109%
    Dollars in millions
    Net written premiums   $840.2  $618.7   $610.9  $2,121.1  $1,304.1  $349.1
    Earned premiums        $789.6  $655.9   $622.5  $2,118.4  $1,371.6  $306.8

    Year Ended December 31, 2004
                                       OneBeacon                WM Re Esurance
                          Specialty Personal Commercial Total(1)
    GAAP Ratios
    Loss and LAE             59%      62%      56%       65%       73%     69%
    Expense                  31%      32%      41%       34%       31%     33%
         Total Combined      90%      94%      97%       99%      104%    102%
    Dollars in millions
    Net written premiums  $848.5   $724.7   $807.1  $2,459.1  $1,246.3  $199.4
    Earned premiums       $812.0   $723.8   $703.3  $2,378.5  $1,265.5  $176.5


    Three Months Ended December 31, 2005
                                        OneBeacon               WM Re Esurance
                          Specialty Personal Commercial Total(1)
    GAAP Ratios
    Loss and LAE             50%      50%      46%       69%       99%     69%
    Expense                  26%      22%      29%       25%       28%     44%
         Total Combined      76%      72%      75%       94%      127%    113%
    Dollars in millions
    Net written premiums  $168.4   $136.8   $143.3    $461.5    $269.9   $95.7
    Earned premiums       $174.6   $155.3   $156.0    $496.4    $327.6   $93.8

    Three Months Ended December 31, 2004
                                        OneBeacon               WM Re Esurance
                          Specialty Personal Commercial Total(1)
    GAAP Ratios
    Loss and LAE             58%      68%      47%       63%       73%     63%
    Expense                  34%      31%      43%       34%       31%     36%
         Total Combined      92%      99%      90%       97%      104%     99%
    Dollars in millions
    Net written premiums  $200.9   $164.8   $131.0    $517.5    $250.6   $55.4
    Earned premiums       $205.7   $183.7   $172.7    $584.0    $362.1   $53.0

    (1) Includes results from run off operations and reciprocals.

    Contact:  David Foy
              (203) 458-5850

SOURCE White Mountains Insurance Group, Ltd.
02/02/2006

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

Web site: http://www.whitemountains.com
(WTM)