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White Mountains Reports Tangible Book Value Per Share of $415

HAMILTON, Bermuda, May 2 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) ended the first quarter with a fully diluted tangible book value per share of $415, an increase of 2.6% for the quarter and 20.1% for the past twelve months, including dividends.

Ray Barrette, Chairman and CEO, said, "We had an OK quarter. At WMRe, underwriting results were negatively impacted by $45 million of European storm losses and $9 million of more conservative loss ratio picks. OneBeacon and Esurance were on track. Once again, superior investment results drove our book value growth."

Adjusted comprehensive net income for the first quarter was $103 million, compared to $117 million in last year's first quarter, while net income was $92 million, compared to $96 million.

OneBeacon

OneBeacon's pre-tax income for the first quarter was $87 million, compared to $48 million, while the GAAP combined ratio was 98%, a one point improvement. OneBeacon's expense ratio for the quarter included approximately two points related to the relocation of its U.S. headquarters to Canton, Massachusetts. The increase in pre-tax income was primarily attributable to a $28 million increase in realized investment gains.

Mike Miller, CEO of OneBeacon, said, "Our acceptable start this quarter reflected solid underwriting results and superior investment returns. We continued to enhance our specialty offerings through the formation of OneBeacon Government Risk Solutions, the appointment of Trident Marine, a marine-specialty managing general agency, and the introduction of our new employment practices liability product for commercial customers. In April, we announced our strategic alliance with Hagerty Insurance, a specialty classic- car and wooden-boat agency that will leverage our personal lines product suite."

Miller continued, "Going forward, we will continue our focus on specialized opportunities, disciplined underwriting and expense management."

White Mountains Re

White Mountains Re's pre-tax income for the first quarter was $58 million, compared to $84 million, while the GAAP combined ratio was 99%, compared to 88%. During the first quarter, White Mountains Re experienced $45 million in pre-tax losses, net of reinsurance and reinstatement premiums, from European windstorms Kyrill and Hanno.

Allan Waters, recently elected CEO of White Mountains Re, said, "Our combined ratio of 99% for the quarter was impacted by the European storms. We have also taken a bit more conservative view of our reserves. January and April renewals went well, although pricing was not as strong as it has been and our premium volume reflects that. I've had the opportunity in these past few weeks to reacquaint myself with our operations and I am heartened that White Mountains Re's businesses are in solid shape."

In March 2007, White Mountains Re issued $400 million of ten year senior notes with an annual effective yield of 6.5%. The net proceeds from the senior notes were distributed to White Mountains and used in part to repay the $320 million of outstanding borrowings on White Mountains' revolving credit facility.

Esurance

Esurance's pre-tax loss for the first quarter was $9 million, compared to $4 million, while the GAAP combined ratio was 111%, compared to 110%. The one-point increase in the combined ratio was due to weather-related claim activity and selective rate reductions. The higher loss ratio was partially offset by a three-point improvement in the expense ratio.

Net written premiums for the first quarter were $208 million, up 47% from the first quarter of last year. During the first quarter, Esurance added 56,000 policies-in-force, ending the quarter with 429,000 policyholders. Esurance continues to expand through national and local television advertising, online marketing, direct mail, and online agency channels.

Gary Tolman, CEO of Esurance, said, "Our creative marketing efforts have significantly increased premium volume at acceptable policy acquisition costs in a competitive marketplace. At the same time, we have continued to enhance our infrastructure to support our growing policyholder base. With the addition of South Carolina in the first quarter, Esurance now writes business in 25 states, representing approximately 80% of the personal auto insurance premiums available in the United States. All in all, we're off to a pretty good start in 2007."

Other Operations

White Mountains' Other Operations segment's pre-tax loss was $4 million for the first quarter, compared to $12 million. The reduction in pre-tax loss for the segment is primarily due to lower incentive compensation accruals and higher net investment income.

Investment Activities

The GAAP total return on invested assets for the first quarter was 1.9% compared to 1.1% in the first quarter of last year. Net investment income was $118 million in the quarter, up from $99 million, primarily as a result of a larger invested asset base.

Mark Dorcus, President of White Mountains Advisors, said "We had a solid first quarter. Our high quality short duration bond portfolio paced the conventional benchmarks and avoided any losses from the turmoil in the sub- prime mortgage market. In addition, our equity portfolio once again beat the S&P 500."

Additional Information

On July 17, 2006, in connection with the initial public offering of OneBeacon Insurance Group, Ltd. ("OBIG"), White Mountains undertook an internal reorganization and formed OBIG for the purpose of holding certain of its property and casualty insurance businesses. As a result of the reorganization, certain of White Mountains' businesses that had been historically reported as part of its Other Operations segment are now owned by OBIG, and accordingly are now included within the OneBeacon segment. In addition, certain other businesses of White Mountains that are no longer owned by OBIG are now presented as part of the Other Operations segment. Prior period segment information has been restated to conform to the current presentation.

As a result of the sale of OneBeacon shares, there is a significant minority interest in OneBeacon. Accordingly, prior periods in the Company's financial statements have been reclassified to show the Company's minority interest in certain limited partnership investments.

White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange (NYSE: WTM) 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 May 10, 2007 and urges shareholders to refer to that document for more complete information concerning White Mountains' financial results.

Regulation G

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

Adjusted comprehensive net income is a non-GAAP financial measure that excludes the change in net unrealized gains and losses from Symetra's fixed maturity portfolio from comprehensive net income. The reconciliation of adjusted comprehensive net income to comprehensive net income is included on page 7.

Fully diluted 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 in-the-money convertible securities and to exclude any unamortized goodwill and net unrealized gains from Symetra's fixed maturity portfolio. In addition, for periods subsequent to December 31, 2006, the number of common shares outstanding used in the calculation of fully diluted tangible 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. This adjustment was not made to fully diluted tangible book value per share for periods prior to December 31, 2006 as the impact was not significant. The reconciliation of fully diluted tangible book value per share to book value per share is included on page 6.

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

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

    -- 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' 2006 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)


                                        March 31, December 31, March 31,
                                           2007       2006       2006
    Assets

     Fixed maturity investments         $7,179.9   $7,475.3   $6,954.8
     Common equity securities            1,245.2    1,212.6    1,107.0
     Short-term investments              1,473.6    1,344.9      949.7
     Other investments                     532.2      524.8      506.8
     Convertible fixed maturity
      investments                          485.8      436.2      310.7
     Investments held in trust             335.4      338.9         -

      Total investments                 11,252.1   11,332.7    9,829.0

     Reinsurance recoverable on
      unpaid losses                      3,873.7    4,015.7    4,860.0
     Reinsurance recoverable on paid
      losses                               131.9      159.4       96.1
     Funds held by ceding companies        438.2      452.8      566.1
     Insurance and reinsurance
      premiums receivable                1,007.4      913.6    1,099.2
     Securities lending collateral         563.8      649.8      496.2
     Investments in unconsolidated
      insurance affiliates                 356.3      335.5      437.5
     Deferred acquisition costs            338.6      320.3      312.2
     Ceded unearned premiums               133.6       87.9      214.2
     Accounts receivable on unsettled
      investment sales                      40.2        8.5       45.7
     Other assets                        1,142.4    1,167.5    1,125.2

      Total assets                     $19,278.2  $19,443.7  $19,081.4

    Liabilities

     Loss and loss adjustment
      expense reserves                  $8,636.0   $8,777.2   $9,987.0
     Reserves for structured
      contracts                            142.6      147.1      222.8
     Unearned insurance and
      reinsurance premiums               1,746.6    1,584.9    1,742.4
     Debt                                1,183.6    1,106.7      779.1
     Securities lending payable            563.8      649.8      496.2
     Preferred stock subject to
      mandatory redemption                 270.5      262.3      240.4
     Ceded reinsurance payable             141.0      138.4      173.7
     Funds held under reinsurance
      treaties                             126.4      141.6      131.5
     Accounts payable on unsettled
      investment purchases                  19.7       66.8      165.7
     Other liabilities                   1,276.3    1,510.4    1,179.3

      Total liabilities                 14,106.5   14,385.2   15,118.1

     Minority interest - OneBeacon
      Insurance Group, Ltd.                515.8      490.7          -
     Minority interest - consolidated
      limited partnerships                 113.0      112.5       91.1

    Total minority interest                628.8      603.2       91.1

    Common Shareholders' Equity

     Common shares and paid-in surplus   1,727.4    1,727.5    1,726.0
     Retained earnings                   2,566.7    2,496.0    1,983.4
     Accumulated other comprehensive
      income (loss), after tax:
      Net unrealized gains on
       investments                         212.9      198.1      200.2
      Equity in net unrealized gains
       (losses) from Symetra's fixed
        maturity portfolio                   1.8       (4.1)     (32.6)
      Net unrealized foreign currency
       translation gains (losses) and
       other                                34.1       37.8       (4.8)

      Total common shareholders'
       equity                            4,542.9    4,455.3    3,872.2

    Total liabilities, minority
     interest and common
     shareholders' equity              $19,278.2  $19,443.7  $19,081.4

    Common shares outstanding (000's)     10,834     10,783     10,780
    Common and equivalent shares
     outstanding (000's)                  10,806     10,812     10,814



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

                                          March 31,   December 31,  March 31,
                                            2007         2006         2006
    Book value per share numerators (in
     millions):

     Common shareholders' equity           $4,542.9     $4,455.3     $3,872.2
      Benefits to be received from share
       obligations under employee benefit
       plans                                    4.1          4.7          5.1
      Remaining adjustment of subsidiary
       preferred stock to face value          (35.5)(1)    (41.8)(1)    (79.6)
     Book value per share numerator         4,511.5      4,418.2      3,797.7
      Equity in net unrealized (gains)
       losses from Symetra's fixed
       maturity portfolio                      (1.8)         4.1         32.6
      Goodwill                                (29.2)       (32.5)       (23.8)
     Fully diluted tangible book value per
      common and equivalent share
      numerator                            $4,480.5     $4,389.8     $3,806.5

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

     Common Shares outstanding             10,833.8     10,782.8     10,780.1
      Unearned restricted shares              (52.7)         -            -
      Share obligations under employee
       benefits plans                          25.3         29.5         33.4
     Fully diluted tangible book value
      per common and equivalent share
      denominator                          10,806.4     10,812.3     10,813.5

     Book value per common and equivalent
      share                                 $417.47      $408.62      $351.19
     Fully diluted tangible book value
      per common and equivalent share       $414.61      $406.00      $352.01

     (1) Remaining adjustment of subsidiary preferred stock to face value,
         which is representative of White Mountains' ownership interest in
         OneBeacon Insurance Group Ltd. of 71.8% and 72.4% as of March 31,
         2007 and December 31, 2006.



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

                                                      Three Months Ended
                                                           March 31,
                                                    2007               2006
    Revenues:
     Earned insurance and reinsurance
      premiums                                    $938.0             $901.0
     Net investment income                         118.0               98.5
     Net realized investment gains                  73.9               28.5
     Other revenue                                  36.2               29.8

      Total revenues                             1,166.1            1,057.8

    Expenses:
     Loss and loss adjustment expenses             613.3              564.0
     Insurance and reinsurance
      acquisition expenses                         192.6              185.6
     Other underwriting expenses                   137.7              115.9
     General and administrative expenses            52.9               44.6
     Accretion of fair value adjustment
      to loss and loss adjustment
      expense reserves                               5.1                5.2
     Interest expense on debt                       16.8               11.7
     Interest expense - dividends on
      preferred stock subject to
      mandatory redemption                           7.6                7.6
     Interest expense - accretion on
      preferred stock subject to
      mandatory redemption                           8.2                6.4

      Total expenses                             1,034.2              941.0

    Pretax income                                  131.9              116.8

     Income tax provision                          (31.2)             (26.9)

    Income before equity in earnings of
     unconsolidated affiliates and
     minority interest                             100.7               89.9

     Equity in earnings of
      unconsolidated insurance
      affiliates                                    10.5                9.0
     Minority interest                             (19.0)              (2.9)

    Net income                                      92.2               96.0

     Change in net unrealized gains on
      investments                                   20.7              (57.1)
     Change in foreign currency
      translation and other                         (3.8)              21.0

    Comprehensive net income                       109.1               59.9

     Change in net unrealized (gains)
      and losses from Symetra's fixed
      maturity portfolio                            (5.9)              56.8

    Adjusted comprehensive net income             $103.2             $116.7


    Basic earnings per share                       $8.56              $8.92

    Diluted earnings per share                     $8.54              $8.89

    Dividends declared and paid per
     common share                                  $2.00              $2.00



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

    For the Three Months Ended March 31, 2007

                             OneBeacon   WM Re Esurance  Other    Total
     Revenues:
      Earned insurance and
       reinsurance premiums     $468.9  $298.3  $170.8     $-    $938.0
      Net investment income       50.6    48.1     6.2    13.1    118.0
      Net realized investment
       gains (losses)             54.9    19.9     1.0    (1.9)    73.9
      Other revenue                3.1    (3.6)    3.0    33.7     36.2

       Total revenues            577.5   362.7   181.0    44.9  1,166.1
     Expenses:
      Loss and loss adjustment
       expenses                  288.2   194.6   130.3     0.2    613.3
      Insurance and reinsurance
       acquisition expenses       78.3    69.6    44.7      -     192.6
      Other underwriting
       expenses                   90.9    31.3    14.7     0.8    137.7
      General and
       administrative expenses     2.4     6.6     0.1    43.8     52.9
      Accretion of fair value
       adjustment to loss and
       lae reserves                4.0     1.1      -       -       5.1
      Interest expense on debt    11.4     1.2      -      4.2     16.8
      Interest expense  -
       dividends and accretion
       on preferred stock         15.8      -       -       -      15.8

       Total expenses            491.0   304.4   189.8    49.0  1,034.2

     Pretax income (loss)        $86.5   $58.3   $(8.8)  $(4.1)  $131.9


    For the Three Months Ended March 31, 2006


                             OneBeacon   WM Re Esurance  Other    Total
     Revenues:
      Earned insurance and
       reinsurance premiums     $480.2  $315.6  $105.2     $-    $901.0
      Net investment income       45.1    41.1     3.6     8.7     98.5
      Net realized investment
       gains (losses)             27.1     2.5     0.9    (2.0)    28.5
      Other revenue                5.5     4.4     2.1    17.8     29.8

       Total revenues            557.9   363.6   111.8    24.5  1,057.8
     Expenses:
      Loss and loss adjustment
       expenses                  303.7   186.6    75.2    (1.5)   564.0
      Insurance and reinsurance
       acquisition expenses       86.3    70.3    29.0      -     185.6
      Other underwriting
       expenses                   83.9    20.4    11.1     0.5    115.9
      General and
       administrative expenses     4.4     2.2      -     38.0     44.6
      Accretion of fair value
       adjustment to loss and
       lae reserves                5.8    (0.6)     -       -       5.2
      Interest expense on debt    11.4     0.4      -     (0.1)    11.7
      Interest expense  -
       dividends and accretion
       on preferred stock         14.0      -       -       -      14.0

       Total expenses            509.5   279.3   115.3    36.9    941.0

     Pretax income (loss)        $48.4   $84.3   $(3.5) $(12.4)  $116.8



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

    Three Months Ended March 31, 2007

                                     OneBeacon                 WM Re  Esurance
                   Specialty  Commercial  Personal(1) Total(2)
    GAAP Ratios
    Loss and LAE       58%         55%          66%     62%      65%      76%
    Expense            31%         37%          37%     36%      34%      35%
     Total Combined    89%         92%         103%     98%      99%     111%
    Dollars in
     millions
    Net written
     premiums        $96.8      $170.6       $172.8  $440.3     $403.6  $207.7
    Earned premiums $107.0      $172.0       $189.8  $468.9     $298.3  $170.8


    Three Months Ended March 31, 2006

                                     OneBeacon                 WM Re  Esurance
                   Specialty  Commercial  Personal(1) Total(2)
    GAAP Ratios
    Loss and LAE       53%         59%          68%     63%      59%      72%
    Expense            32%         40%          32%     36%      29%      38%
     Total Combined    85%         99%         100%     99%      88%     110%
    Dollars in
     millions
    Net written
     premiums       $102.0      $166.8       $202.4  $474.4     $428.7  $140.9
    Earned premiums $102.0      $165.3       $209.5  $480.2     $315.6  $105.2


    (1) Includes results of consolidated reciprocals.
    (2) Includes results from runoff operations and eliminations between
        underwriting units.

SOURCE White Mountains Insurance Group, Ltd.

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