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White Mountains Reports Book Value Per Share Of $345

HAMILTON, Bermuda, Nov. 1 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. ended the third quarter of 2005 with a fully converted tangible book value per share of $345, down $14 from the second quarter of 2005 primarily due to the Gulf Coast hurricanes. Tangible book value per share increased 2.5% for the first nine months of 2005 and 10% for the last twelve months, including dividends.

Adjusted comprehensive net loss for the quarter was $131 million compared to adjusted comprehensive net income of $73 million in the third quarter of the prior year. For the first nine months, adjusted comprehensive net income was $80 million compared to $306 million in the same period last year.

The following after-tax items impacted the quarter:

  • $186 million in losses from hurricanes Katrina and Rita. In addition, there was a $12 million reduction in accrued profit commissions from Olympus Re.
  • $87 million decrease in the value of the Company's investment in Montpelier Re, net of dividends received.

CEO Steve Fass said, "Hurricane Katrina is an industry changing event. The magnitude of the insured loss is a multiple of any previous natural disaster. However, even in the face of the losses we incurred due to the Gulf Coast hurricanes, we are profitable through nine months. White Mountains' losses were contained to less than 5% of our total capital and we continue to have a significant amount of dry powder. Further, we are already seeing an increase in pricing, and improved terms and conditions, which bodes well for the future."

Net loss for the quarter was $66 million, compared to net loss of $10 million in the prior year's third quarter. The increased loss was driven by a higher level of catastrophe claims from this year's Gulf Coast hurricanes versus last year's storms. For the first nine months, the Company reported net income of $257 million versus $254 million in the comparable period. The first nine months benefited from the special dividend of $56 million after-tax ($74 million pretax) paid by Montpelier Re in the first quarter of 2005.

Subsequent to the end of the quarter, the Company experienced losses related to hurricane Wilma. The Company's preliminary estimates indicate that its total pre-tax net losses resulting from the impact of this storm on its insurance and reinsurance operations will be less than $50 million. These estimates do not reflect any impact on the value of the Company's investment in Montpelier Re.

OneBeacon

OneBeacon's pretax income for the third quarter of 2005 was $116 million, compared to $35 million for the third quarter of 2004. For the first nine months of 2005, pretax income was $397 million, versus $272 million for the comparable period of 2004. The GAAP combined ratio was 107% for the third quarter and 99% for the first nine months of 2005, compared to 109% and 100% for the comparable periods of 2004. Net written premiums decreased 9% in the quarter and 15% for the nine months from the comparable 2004 periods. The decline in premium volume was partially due to the sale of the renewal rights for OneBeacon's legacy New York commercial business 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. Third quarter results also included a $28 million gain on the sale of OneBeacon's National Farmers Union Property and Casualty Company subsidiary.

Hurricanes Katrina and Rita caused pretax losses of $55 million in the quarter, mostly concentrated in the specialty property unit. The prior year's third quarter had $31 million of pretax storm losses, as well as a $53 million pretax reserve increase.

Mike Miller, CEO of OneBeacon said, "Obviously the storm losses hurt our results for the third quarter. However, the rest of our businesses are doing well and, even with the impact of the storms, we produced an underwriting profit for the first nine months. In addition, we anticipate an improved pricing environment into 2006."

White Mountains Re

White Mountains Re's pretax loss for the third quarter of 2005 was $156 million, compared to a pretax loss of $80 million for the third quarter of 2004. For the first nine months of 2005, the pretax loss was $13 million versus pretax income of $39 million in the comparable prior year period. The GAAP combined ratio was 156% for the third quarter of 2005 and 116% for the first nine months of 2005, compared to 122% and 104% in the comparable periods of 2004. Net written premiums were down 13% in the quarter, reflecting the softer market in 2005 versus 2004. However, nine-month premiums were up 4% due to the acquisition of Sirius in April 2004.

Hurricanes Katrina and Rita caused pretax losses of $228 million in the quarter and a $13 million pretax reduction in accrued profit commissions from Olympus Re. The prior year's third quarter had $95 million of pretax storm losses and a $15 million pretax reduction in accrued profit commissions from Olympus Re.

Steve Fass added, "The losses from the Gulf Coast hurricanes, while substantial, were within our underwriting tolerances for events of this magnitude. Most of the loss occurred in our Folksamerica subsidiary, and we have already replenished its capital with a $150 million contribution from White Mountains. We are well-positioned to take advantage of the improved marketplace."

Esurance

Esurance's pretax loss in the third quarter of 2005 was $6 million, compared to pretax income of $1 million in the third quarter of the prior year. The third quarter loss was the result of higher acquisition expenses and a compensation accrual for a new long-term incentive plan adopted during the quarter. As a result of these increased expenses, the GAAP combined ratio was 113% in the third quarter of 2005, compared to 101% for the third quarter of the prior year. For the third quarter, the loss and LAE ratio of 67% was consistent with the 68% reported in the prior year's quarter. Net written premiums continue to grow rapidly, up 83% to $100 million for the quarter and up 76% to $253 million for the nine months of 2005.

Gary Tolman, CEO of Esurance, stated, "Reaching the $100 million mark for premiums written during the quarter is another milestone in Esurance's development. Although acquisition costs have increased, our marketing initiatives are working the way we want. By achieving large premium increases while maintaining an excellent loss ratio, I believe we are further growing our intrinsic business value."

Other Operations

White Mountains' Other Operations reported a pretax loss of $85 million for the third quarter of 2005, compared to a pretax loss of $33 million for the third quarter of 2004. For the first nine months of 2005, the segment reported a pretax loss of $96 million versus $180 million in the comparable period of 2004. The higher loss for the quarter is primarily due to the decrease in the value of the Company's investment in Montpelier Re warrants. The lower loss in the nine months of 2005 reflects lower compensation expense and the benefit of the special dividend from Montpelier Re received in the first quarter of 2005.

Investment Activities

Mark Dorcus, President of White Mountains Advisors, said, "The decline in the market price of Montpelier Re's stock during the quarter partially offset continued strong results in the rest of our equity portfolio. On the fixed income side, by maintaining a high quality, short duration portfolio, our performance for the quarter was better than conventional benchmarks."

The GAAP pretax total return on invested assets for the quarter was 0.5%. For the nine months the total return was 1.8%. Net investment income was $111 million in the quarter, up 33% from the third quarter of 2004, and $389 million for the first nine months of 2005, up 57% from the prior period. Higher short-term interest rates contributed to the quarterly increase, while the nine-month period also benefited from the aforementioned Montpelier Re special dividend.

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 http://www.whitemountains.com. The Company expects to file its Form 10-Q with the Securities and Exchange Commission on or before November 2, 2005 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

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':

    x  growth in book value per share or return on equity;
    x  business strategy;
    x  financial and operating targets or plans;
    x  incurred losses and the adequacy of its loss and loss adjustment
       expense reserves and related reinsurance;
    x  projections of revenues, income (or loss), earnings (or loss) per
       share, dividends, market share or other financial forecasts;
    x  expansion and growth of our business and operations; and
    x  future capital expenditures.

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

    x  claims arising from catastrophic events, such as hurricanes,
       earthquakes, floods or terrorist attacks;
    x  the continued availability of capital and financing;
    x  general economic, market or business conditions;
    x  business opportunities (or lack thereof) that may be presented to it
       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)

                                             September  December
                                                30,        31,   September 30,
                                               2005       2004       2004
    Assets
    Fixed maturity investments               $7,594.2   $7,900.0   $7,562.1
    Short-term investments                    1,027.3    1,058.2    1,839.2
    Common equity securities                  1,000.1    1,043.9      989.1
    Other investments                           507.1      527.4      438.2

      Total investments                      10,128.7   10,529.5   10,828.6

    Reinsurance recoverable on unpaid losses  4,824.0    3,797.4    3,913.6
    Reinsurance recoverable on paid losses      103.3       92.0       74.0
    Funds held by ceding companies              707.6      943.8      931.8
    Insurance and reinsurance premiums
     receivable                               1,039.7      942.2    1,067.0
    Securities lending collateral               786.9      593.3      583.8
    Investments in unconsolidated insurance
     affiliates                                 486.8      466.6      443.0
    Deferred acquisition costs                  308.3      308.2      342.9
    Ceded unearned premiums                     242.2      224.1      258.9
    Accounts receivable on unsettled
     investment sales                            27.0       19.9       91.1
    Other assets                              1,141.3    1,098.1      996.3

      Total assets                          $19,795.8  $19,015.1  $19,531.0

    Liabilities
    Loss and loss adjustment expense
     reserves                               $10,102.6   $9,398.5   $9,533.9
    Reserves for structured contracts           268.3      375.9      400.1
    Unearned insurance and reinsurance
         premiums                             1,717.9    1,739.4    1,926.0
    Debt                                        775.2      783.3      793.6
    Securities lending payable                  786.9      593.3      583.8
    Preferred stock subject to mandatory
     redemption                                 227.9      211.9      207.1
    Ceded reinsurance payable                   219.1      201.4      131.5
    Funds held under reinsurance treaties       169.9      155.4      160.0
    Accounts payable on unsettled
         investment purchases                   162.8       30.9      509.2
    Other liabilities                         1,482.4    1,641.2    1,649.9

      Total liabilities                      15,913.0   15,131.2   15,895.1

    Common Shareholders' Equity
    Common shares and paid-in surplus         1,726.9    1,725.8    1,719.2
    Retained earnings                         1,888.0    1,695.9    1,531.2
    Accumulated other comprehensive income,
     after tax:
     Net unrealized gains on investments        249.4      359.5      329.1
     Equity in net unrealized gains from
      Symetra's fixed maturity portfolio         39.4       56.6       48.1
     Net unrealized foreign currency translation
      gains (losses) and other                  (20.9)      46.1        8.3

      Total common shareholders' equity       3,882.8    3,883.9    3,635.9

    Total liabilities and common
     shareholders' equity                   $19,795.8  $19,015.1  $19,531.0

    Common shares outstanding (000's)          10,774     10,773     10,769
    Common and equivalent shares
     outstanding (000's)                       10,818     10,819     10,819



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


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

    Common shareholders' equity        $3,882.8  $4,091.8  $3,883.9  $3,635.9
      Benefits to be received from
       share obligations under
       employee benefit plans               6.5       6.6       6.7       7.1
      Remaining adjustment of
       subsidiary preferred stock to
       face value                         (92.1)    (97.8)   (108.1)   (112.9)
    Book value per share numerator      3,797.2   4,000.6   3,782.5   3,530.1
      Less: Equity in net unrealized
       gains from Symetra's fixed
       maturity portfolio                 (39.4)    (95.7)    (56.6)    (48.1)
      Less: Goodwill of consolidated
       limited partnership investments    (25.4)    (19.7)    (20.0)    (20.0)
    Fully converted tangible book
     value per common and equivalent
     share numerator                   $3,732.4  $3,885.2  $3,705.9  $3,462.0

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

    Common Shares outstanding          10,773.7  10,774.3  10,772.8  10,769.4
      Share obligations under employee
       benefits plans                      44.3      44.7      46.5      50.0
    Fully converted tangible book
     value per common and equivalent
     share denominator                 10,818.0  10,819.0  10,819.3  10,819.4

    Book value per common and
     equivalent share                   $351.01   $369.78   $349.60   $326.28
    Fully converted tangible book
     value per common and equivalent
     share                              $345.02   $359.11   $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    Nine Months Ended
                                   September 30,        September 30,
                                 2005        2004      2005        2004
     Revenues:
      Earned insurance and
       reinsurance premiums     $982.4      $992.3  $2,880.8    $2,821.4
      Net investment income      110.8        83.4     389.3       247.6
      Net realized
       investment gains           18.9        53.6     119.3       109.8
      Other revenue               65.5        34.3     184.4       126.1

        Total revenues         1,177.6     1,163.6   3,573.8     3,304.9
     Expenses:
      Loss and loss
       adjustment expenses       929.6       787.8   2,119.1     1,934.5
      Insurance and
       reinsurance
       acquisition expenses      199.7       203.6     572.9       545.2
      Other underwriting
       expenses                  105.7       137.5     356.2       386.7
      General and
       administrative
       expenses                   39.5        78.4     138.7       202.4
      Accretion of fair value
       adjustment to loss and
       loss adjustment expense
       reserves                    9.1        10.2      28.1        33.1
      Interest expense on debt    11.5        12.2      34.8        35.6
      Interest expense -
       dividends on preferred
       stock subject to
       mandatory redemption        7.6         7.5      22.7        22.7
      Interest expense -
       accretion on preferred
       stock subject to
       mandatory redemption        5.7         4.5      16.1        12.6

        Total expenses         1,308.4     1,241.7   3,288.6     3,172.8

     Pretax income (loss)       (130.8)      (78.1)    285.2       132.1

      Income tax benefit
       (provision)                55.6        23.6     (56.1)      (65.7)

     Net income (loss) before
      equity in earnings of
      unconsolidated affiliates
      and extraordinary item     (75.2)      (54.5)    229.1        66.4

      Equity in earnings of
       unconsolidated
       insurance affiliates        8.9         3.7      27.7        26.8

     Net income (loss) before
      extraordinary item         (66.3)      (50.8)    256.8        93.2

      Excess of fair value
       of acquired net
       assets over cost              -        40.7         -       160.7

     Net income (loss)           (66.3)      (10.1)    256.8       253.9

      Change in net unrealized
       gains on investments     (122.4)      131.4    (127.3)       91.2
      Change in foreign
       currency translation        1.6         (.1)    (67.0)        8.6

     Comprehensive net income
     (loss)                     (187.1)      121.2      62.5       353.7

      Deduct: Change in net
       unrealized gains and
       losses from Symetra's
       fixed maturity
       portfolio                  56.3       (48.1)     17.2       (48.1)

     Adjusted comprehensive
      net income (loss)        $(130.8)      $73.1     $79.7      $305.6

     Basic earnings per share:

       Net income (loss) before
        extraordinary item      $(6.16)     $(4.72)   $23.87       $9.70
       Net income (loss)         (6.16)       (.94)    23.87       26.41

     Diluted earnings per share:

       Net income (loss) before
        extraordinary item      $(6.16)     $(4.72)   $23.73       $8.93
       Net income (loss)         (6.16)       (.94)    23.73       24.44

     Dividends per share         $2.00          $-     $6.00       $1.00



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

     For the Nine Months Ended September 30, 2005

                                OneBeacon   WM Re   Esurance   Other    Total
       Revenues:
         Earned insurance and
          reinsurance premiums  $1,622.0  $1,044.0  $213.0     $1.8  $2,880.8
         Net investment income     191.7     109.1     6.5     82.0     389.3
         Net realized
          investment gains
          (losses)                 146.6      31.0     3.3    (61.6)    119.3
         Other revenue              98.9      30.4     2.3     52.8     184.4

           Total revenues        2,059.2   1,214.5   225.1     75.0   3,573.8
    Expenses:
     Loss and loss adjustment
      expenses                   1,060.5     914.8   141.5      2.3   2,119.1
     Insurance and reinsurance
      acquisition expenses         300.0     210.8    62.0      0.1     572.9
     Other underwriting expenses   247.8      82.1    25.0      1.3     356.2
         General and
          administrative
          expenses                  52.7       9.0      -      77.0     138.7
         Accretion of fair
          value adjustment to
          loss and LAE reserves       -        8.6      -      19.5      28.1
         Interest expense on
          debt                       1.1       1.7      -      32.0      34.8
         Interest expense  -
          dividends and
          accretion on
          preferred stock
           subject to mandatory
            redemption                -         -       -      38.8      38.8

           Total expenses        1,662.1   1,227.0   228.5    171.0   3,288.6

       Pretax income (loss)       $397.1    $(12.5)  $(3.4)  $(96.0)   $285.2

     For the Nine Months Ended September 30, 2004

                                OneBeacon   WM Re   Esurance   Other    Total
       Revenues:
         Earned insurance and
          reinsurance premiums  $1,794.5    $903.4  $123.5      $-   $2,821.4
         Net investment income     161.7      60.2     2.2     23.5     247.6
         Net realized
          investment gains
          (losses)                 107.0       9.0     0.6     (6.8)    109.8
         Other revenue              93.0      23.0     1.3      8.8     126.1

           Total revenues        2,156.2     995.6   127.6     25.5   3,304.9
       Expenses:
         Loss and loss
          adjustment expenses    1,180.2     655.3    89.0     10.0   1,934.5
         Insurance and
          reinsurance
          acquisition expenses     328.1     197.2    19.9       -      545.2
         Other underwriting
          expenses                 284.0      83.1    18.3      1.3     386.7
         General and
          administrative
          expenses                  90.8      11.6     0.3     99.7     202.4
         Accretion of fair
          value adjustment to
          loss and LAE reserves       -        6.4      -      26.7      33.1
         Interest expense on
          debt                       0.7       2.7      -      32.2      35.6
         Interest expense  -
          dividends and
          accretion on
          preferred stock
           subject to mandatory
            redemption                -         -       -      35.3      35.3

           Total expenses        1,883.8     956.3   127.5    205.2   3,172.8

       Pretax income (loss)       $272.4     $39.3    $0.1  $(179.7)   $132.1



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

     For the Three Months Ended September 30, 2005

                                   OneBeacon   WM Re  Esurance  Other  Total
       Revenues:
         Earned insurance and
          reinsurance premiums        $537.1   $363.5  $81.8     $-    $982.4
         Net investment income          54.4     38.9    2.3    15.2    110.8
         Net realized investment
          gains (losses)                60.0     12.5    1.1   (54.7)    18.9
         Other revenue                  54.5      2.8    0.8     7.4     65.5

           Total revenues              706.0    417.7   86.0   (32.1) 1,177.6
       Expenses:
         Loss and loss adjustment
          expenses                     396.2    478.2   54.6     0.6    929.6
         Insurance and reinsurance
          acquisition expenses         102.2     69.6   27.9       -    199.7
         Other underwriting expenses    75.5     19.9    9.9     0.4    105.7
         General and administrative
          expenses                      15.5      2.7    0.1    21.2     39.5
         Accretion of fair value
          adjustment to loss and LAE
          reserves                         -      2.6      -     6.5      9.1
         Interest expense on debt        0.4      0.6      -    10.5     11.5
         Interest expense  -
          dividends and accretion on
          preferred stock
           subject to mandatory
            redemption                     -        -      -    13.3     13.3

           Total expenses              589.8    573.6   92.5    52.5  1,308.4

       Pretax income (loss)           $116.2  $(155.9) $(6.5) $(84.6) $(130.8)


     For the Three Months Ended September 30, 2004

                                   OneBeacon   WM Re  Esurance  Other   Total

       Revenues:
         Earned insurance and
          reinsurance premiums        $600.1   $345.9  $46.4   $(0.1)  $992.3
         Net investment income          52.3     18.6    0.9    11.6     83.4
         Net realized investment
          gains (losses)                36.1     (3.4)   0.2    20.7     53.6
         Other revenue                  29.1    (10.4)   0.8    14.8     34.3

           Total revenues              717.6    350.7   48.3    47.0  1,163.6
       Expenses:
         Loss and loss adjustment
          expenses                     441.9    305.3   31.6     9.0    787.8
         Insurance and reinsurance
          acquisition expenses         111.7     83.5    8.4       -    203.6
         Other underwriting expenses    97.7     32.2    7.1     0.5    137.5
         General and administrative
          expenses                      31.5      5.1    0.3    41.5     78.4
         Accretion of fair value
          adjustment to loss and LAE
          reserves                         -      3.7      -     6.5     10.2
         Interest expense on debt        0.3      1.0      -    10.9     12.2
         Interest expense  -
          dividends and accretion on
          preferred stock
           subject to mandatory
            redemption                     -        -      -    12.0     12.0

           Total expenses              683.1    430.8   47.4    80.4  1,241.7

       Pretax income (loss)            $34.5   $(80.1)  $0.9  $(33.4)  $(78.1)



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

    Nine Months Ended
    September 30, 2005               OneBeacon                WM Re  Esurance

                     Specialty  Personal Commercial Total(1)

    GAAP Ratios
    Loss and LAE         67%       58%     57%       65%        88%     66%
    Expense              33%       31%     42%       34%        28%     41%
    Total Combined      100%       89%     99%       99%       116%    107%

    Dollars in millions

    Net written
     premiums        $671.7    $481.9  $467.6  $1,659.5   $1,034.2  $253.4
    Earned premiums  $615.0    $500.6  $466.5  $1,622.0   $1,044.0  $213.0


    Nine Months Ended
    September 30, 2004               OneBeacon               WM Re  Esurance

                     Specialty  Personal Commercial Total(1)

    GAAP Ratios
    Loss and LAE         59%       60%     60%       66%       73%     72%
    Expense              30%       32%     40%       34%       31%     31%
    Total Combined       89%       92%    100%      100%      104%    103%

    Dollars in millions

    Net written
     premiums        $647.6    $559.9  $676.3  $1,941.7    $995.7  $144.0
    Earned premiums  $606.3    $540.1  $530.8  $1,794.5    $903.4  $123.5

    Three Months Ended
    September 30, 2005               OneBeacon               WM Re  Esurance

                     Specialty  Personal Commercial Total(1)


    GAAP Ratios
    Loss and LAE        90%       54%     61%      74%       132%     67%
    Expense             34%       27%     40%      33%        24%     46%
    Total Combined     124%       81%    101%     107%       156%    113%

    Dollars in millions

    Net written
     premiums       $244.7    $161.1  $161.3   $581.0     $329.1   $99.8
    Earned premiums $208.3    $163.4  $152.1   $537.1     $363.5   $81.8


    Three Months Ended
    September 30, 2004               OneBeacon              WM Re  Esurance

                     Specialty Personal Commercial Total(1)

    GAAP Ratios
    Loss and LAE         75%      64%     61%      74%       88%     68%
    Expense              32%      28%     39%      35%       34%     33%
    Total Combined      107%      92%    100%     109%      122%    101%

    Dollars in millions

    Net written
     premiums        $227.4   $217.1  $167.5   $638.2    $377.5   $54.6
    Earned premiums  $193.2   $199.0  $171.8   $600.1    $345.9   $46.4

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


    Contact: David Foy
             (203) 458-5850

SOURCE White Mountains Insurance Group, Ltd.
11/01/2005

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

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

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