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White Mountains Reports Book Value Per Share of $373 in the Third Quarter

HAMILTON, Bermuda, Nov. 2 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. ended the third quarter of 2006 with a fully converted tangible book value per share of $373, an increase of 5.7% for the quarter and 10.8% for the first nine months of 2006, including dividends.

CEO Steve Fass said, "I am very pleased with our growth in tangible book value per share this quarter. OneBeacon had another excellent quarter, with a combined ratio of 94%. White Mountains Re, aided by favorable weather, also had a strong quarter, with an 89% combined ratio. Esurance continues to grow quickly while keeping its loss ratio on target. While our fixed income and equity returns lagged their benchmarks in the quarter, absolute returns were solid, and our investment performance for the first nine months remains strong."

Adjusted comprehensive net income for the third quarter of 2006 was $211 million, compared to adjusted comprehensive net loss of $131 million in the third quarter of 2005, while for the first nine months of 2006 adjusted comprehensive net income was $377 million, compared to $80 million in the comparable period last year.

Net income for the quarter was $162 million, compared to net loss of $66 million in the third quarter of 2005. Net income for the first nine months of 2006 was $374 million, up from $257 million in the first nine months of last year.

OneBeacon

OneBeacon's pre-tax income for the third quarter of 2006 was $107 million, compared to $90 million for the third quarter of 2005. The GAAP combined ratio was 94% for the third quarter of 2006, compared to 107% for the third quarter of last year. The increase in pre-tax income was primarily due to lower catastrophe losses, $55 million of which were recorded during the third quarter of last year from hurricanes Katrina and Rita, mostly in the specialty property unit. The increase in pre-tax income was partially offset by lower net realized investment gains as a result of the sale of several highly appreciated common stocks in the third quarter of 2005. Additionally, the third quarter of 2006 includes a $30 million gain on the sale of the renewal rights of Agri, while the third quarter last year includes a $28 million gain on the sale of NFU.

For the first nine months of 2006, pre-tax income was $247 million, compared to $303 million for the comparable period of 2005. The GAAP combined ratio was 96% for the first nine months of 2006, compared to 99% for the first nine months of last year. In addition to the items mentioned above, the decline in pre-tax income for the first nine months of 2006 from the comparable prior year period was partially due to a special dividend from Montpelier Re in the prior year's first quarter, $35 million of which was recorded at OneBeacon, and $20 million of additional losses from hurricanes Katrina, Rita and Wilma recorded in the first six months of 2006.

Net written premiums were down 8% for the quarter and the nine months from the comparable 2005 periods, primarily as a result of the sale of NFU last year. Excluding NFU, net written premiums were essentially flat for the quarter and the first nine months of 2006 versus the comparable 2005 periods.

Mike Miller, CEO of OneBeacon said, "Our underwriting results were good again in the third quarter, with all three of our business units -- specialty, personal, and commercial -- producing combined ratios in the high 80s-to-mid 90s. Our ex-NFU net written premiums were relatively flat quarter over quarter, as increases in specialty lines and commercial lines were offset by lower personal lines premiums. More importantly, however, our pricing continues to be solid across all three business units."

White Mountains Re

White Mountains Re's pre-tax income for the third quarter of 2006 was $110 million, compared to a pre-tax loss of $156 million in the third quarter of 2005. For the first nine months of 2006, pre-tax income was $131 million, compared to a pre-tax loss of $13 million in the prior year period. The GAAP combined ratio was 89% for the third quarter and 108% for the first nine months of 2006, compared to 156% and 116% for the comparable periods of 2005. The prior year periods contain $228 million in pre-tax losses, net of reinstatements and reinsurance, from hurricanes Katrina and Rita. The first nine months of 2006 include $137 million of pre-tax losses related to the reimbursement of Olympus during the second quarter of 2006 and $86 million, net of reinstatements and reinsurance, related to additional pre-tax losses on hurricanes Katrina, Rita and Wilma recorded in the first six months of 2006.

Net written premiums were down 13% for the quarter, primarily due to lower reinstatement premiums on property catastrophe reinsurance, a reduction in property catastrophe exposed business, a reduction on casualty lines due mainly to pricing, terms and conditions that did not meet White Mountains Re's pricing guidelines and higher ceding company retentions. Net written premiums were up 2% for the first nine months of 2006, as improved market conditions more than offset the aforementioned reductions.

During the third quarter of 2006, White Mountains Re completed its previously announced sale of Sirius America Insurance Company and recorded a pre-tax gain of $14 million.

Tom Hutton, CEO of White Mountains Re said, "Simply put, it was a great quarter. There were no headline catastrophe events -- it's the first time in a few years that Mother Nature did not roar in the third quarter. Additionally, we have significantly enhanced our approach to risk management."

Esurance

Esurance's pre-tax income was $2 million in the third quarter and break even for the first nine months of 2006, compared to pre-tax losses of $7 million and $3 million in the comparable periods of 2005. The GAAP combined ratio was 106% for the third quarter and 107% for the first nine months of 2006, compared to 113% and 107% for the comparable periods of the prior year. Net written premiums of $164 million for the quarter and $436 million for the nine months were up 65% and 72%, respectively, from the comparable periods of 2005.

Gary Tolman, CEO of Esurance, said, "We are pleased with the strong premium growth and low acquisition costs generated by our national television campaign. Our loss ratio is as expected and the expense ratio is declining nicely as we scale the business. Esurance continues to provide significant value to our customers, while also building value for our owners."

Other Operations

White Mountains' Other Operations segment reported pre-tax income of $7 million for the third quarter of 2006, compared to a pre-tax loss of $58 million for the third quarter of 2005. The increase was primarily attributable to the Montpelier Re investment, which accounted for $23 million in pre-tax income during the third quarter of 2006 compared to $58 million in pre-tax losses during the third quarter of 2005, partially offset by higher incentive compensation accruals in the third quarter of 2006 compared to the third quarter of last year.

For the first nine months of 2006, the Other Operations segment reported pre-tax income of $33 million versus a loss of $2 million in the comparable period of 2005. The Montpelier Re investment accounted for $16 million in pre-tax income during the first nine months of 2006, compared to $29 million of pre-tax losses during the first nine months of 2005 that includes $39 million of net investment income from the special dividend. In addition, the first nine months of 2006 included a $21 million realized gain from the redemption of a private equity investment and the first nine months of 2005 included $26 million in other revenue from the settlement of two lawsuits in which White Mountains was a plaintiff.

Investment Activities

The GAAP total return on invested assets for the quarter was approximately 3%. For the first nine months it was approximately 5%. Net investment income was $109 million in the quarter, in line with the third quarter of 2005, and $312 million for the first nine months, down 20% from the prior period, primarily due to the receipt in the prior year's first quarter of a $74 million special dividend from Montpelier Re.

Mark Dorcus, President of White Mountains Advisors, said "Lower interest rates boosted our GAAP fixed income investment returns for the quarter but hurt us relative to the market, as our fixed income portfolio's duration is still relatively short. Through the first nine months of this year, our bond returns were solid. Our third quarter equity returns lagged the S&P 500 as investors, including us, rotated out of the energy/resource and utility sectors. However, for the first nine months of the year, our equities have significantly outperformed 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 have 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 will not be held by OBIG following the initial public offering and that have been historically reported as part of its OneBeacon segment are now presented as part of its Other Operations segment. Prior period financial information for White Mountains' segments has been restated to conform to the current presentation.

White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange and the Bermuda Stock Exchange under the symbol WTM. Additional financial information and other items of interest are available at the Company's website located at www.whitemountains.com. The Company expects to file its Form 10-Q with the Securities and Exchange Commission on or before November 9, 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 financial measure that excludes the change in net unrealized gains and losses from Symetra's fixed maturity portfolio from comprehensive net income. In the calculation of comprehensive net income under GAAP, fixed maturity investments are marked-to- market while the liabilities to which those assets are matched are not. Symetra attempts to earn a "spread" between what it earns on its investments and what it pays out on its products. In order to try to fix this spread, Symetra invests in a manner that tries to match the duration and cash flows of its investments with the required cash outflows associated with its life insurance and structured settlements products. As a result, Symetra typically earns the same spread on in-force business whether interest rates fall or rise. Further, at any given time, some of Symetra's structured settlement obligations may extend 40 or 50 years into the future, which is further out than the longest maturing fixed maturity investments regularly available for purchase in the market (typically 30 years). For these long-dated products, Symetra is unable to fully match the obligation with assets until the remaining expected payout schedule comes within the duration of securities available in the market. If at that time, these fixed maturity investments have yields that are lower than the yields expected when the structured settlement product was originally priced, the spread for the product will shrink and Symetra will ultimately harvest lower returns for its shareholders. GAAP comprehensive net income increases when rates decline, which would suggest an increase in the value of Symetra - the opposite of what is happening to the intrinsic value of the business. Therefore, White Mountains' management and Board of Directors use adjusted comprehensive net income when assessing Symetra's quarterly financial performance. In addition, this measure is typically the predominant component of growth in fully converted tangible book value per share, which is used in the calculation of White Mountains' performance for both the short-term (annual bonus) and long-term incentive plans. 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':

  • 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' 2005 Annual Report on Form 10-K and second quarter 2006 Form 10-Q;
  • 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 update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

    CONTACT: David Foy
             (203) 453-1681



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

                                          September    December    September
                                              30,         31,         30,
                                             2006        2005        2005
        Assets

        Fixed maturity investments         $7,089.2    $7,582.7    $7,594.2
        Common equity securities            1,042.0       967.8     1,027.3
        Short-term investments              1,222.8       727.8     1,000.1
        Other investments                     498.0       588.1       507.1

            Total investments               9,852.0     9,866.4    10,128.7

        Reinsurance recoverable on
         unpaid losses                      4,250.3     5,025.7     4,824.0
        Reinsurance recoverable on paid
         losses                                89.3        77.0       103.3
        Funds held by ceding companies        467.5       620.4       707.6
        Insurance and reinsurance
         premiums receivable                1,002.3     1,014.3     1,039.7
        Securities lending collateral         583.8       674.9       786.9
        Investments in unconsolidated
         insurance affiliates                 529.1       479.7       486.8
        Deferred acquisition costs            333.5       288.4       308.3
        Ceded unearned premiums               113.7       200.7       242.2
        Accounts receivable on unsettled
         investment sales                     354.1        21.7        27.0
        Other assets                        1,136.5     1,148.9     1,141.3

            Total assets                  $18,712.1   $19,418.1   $19,795.8

        Liabilities

        Loss and loss adjustment expense
         reserves                          $9,114.2   $10,231.2   $10,102.6
        Reserves for structured
         contracts                            153.5       224.6       268.3
        Unearned insurance and
         reinsurance premiums               1,714.9     1,582.0     1,717.9
        Debt                                  794.2       779.1       775.2
        Securities lending payable            583.8       674.9       786.9
        Preferred stock subject to
         mandatory redemption                 254.5       234.0       227.9
        Ceded reinsurance payable             135.6       204.5       219.1
        Funds held under reinsurance
         treaties                             119.6       171.4       169.9
        Accounts payable on unsettled
         investment purchases                 303.5        43.4       162.8
        Other liabilities                   1,419.6     1,439.8     1,482.4

            Total liabilities              14,593.4    15,584.9    15,913.0

        Common Shareholders' Equity

        Common shares and paid-in
         surplus                            1,726.7     1,725.3     1,726.9
        Retained earnings                   2,218.2     1,899.8     1,888.0
        Accumulated other comprehensive
         income (loss), after tax:
          Net unrealized gain on
           investments                        169.8       209.7       249.4
          Equity in net unrealized gains
           (losses) from Symetra's fixed
           maturity portfolio                  (4.1)       24.2        39.4
          Net unrealized foreign currency
           translation gains (losses) and
           other                                8.1       (25.8)      (20.9)
            Total common shareholders'
             equity                         4,118.7     3,833.2     3,882.8

        Total liabilities and common
         shareholders' equity             $18,712.1   $19,418.1   $19,795.8

        Common shares outstanding
         (000's)                             10,780      10,779      10,774
        Common and equivalent shares
         outstanding (000's)                 10,812      10,814      10,818



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


                                       September   June    December  September
                                         30,        30,       31,       30,
                                         2006      2006      2005      2005
    Book value per share numerators
     (in millions):

    Common shareholders' equity        $4,118.7  $3,864.3  $3,833.2  $3,882.8
      Benefits to be received from
       share obligations under
       employee benefit plans               5.0       5.1       5.1       6.5
      Remaining adjustment of
       subsidiary preferred stock to
       face value                         (65.5)    (72.7)    (86.0)    (92.1)
    Book value per share numerator      4,058.2   3,796.7   3,752.3   3,797.2
      Equity in net unrealized (gains)
       losses from Symetra's fixed
       maturity portfolio                   4.1      69.0     (24.2)    (39.4)
      Goodwill                            (25.8)    (25.2)    (24.4)    (25.4)
    Fully converted tangible book
     value per common and equivalent
     share numerator                   $4,036.5  $3,840.5  $3,703.7  $3,732.4

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

    Common Shares outstanding          10,780.1  10,780.1  10,779.2  10,773.7
      Share obligations under employee
       benefits plans                      32.2      33.4      34.3      44.3
    Fully converted tangible book
     value per common and equivalent
     share denominator                 10,812.3  10,813.5  10,813.5  10,818.0

    Book value per common and
     equivalent share                   $375.34   $351.11   $347.00   $351.01
    Fully converted tangible book
     value per common and equivalent
     share                              $373.33   $355.16   $342.51   $345.02



                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,
                                        2006     2005      2006         2005
     Revenues:
      Earned insurance and
       reinsurance premiums            $918.9   $982.4  $2,773.4     $2,880.8
      Net investment income             108.7    110.8     311.6        389.3
      Net realized investment gains      67.8     18.9     202.8        119.3
      Other revenue                      90.8     65.5     157.1        184.4

        Total revenues                1,186.2  1,177.6   3,444.9      3,573.8
     Expenses:
      Loss and loss adjustment
       expenses                         558.1    929.6   1,885.9      2,119.1
      Insurance and reinsurance
       acquisition expenses             189.3    199.7     562.6        572.9
      Other underwriting expenses       122.8    104.4     361.5        352.9
      General and administrative
       expenses                          55.8     40.8     125.5        142.0
      Accretion of fair value
       adjustment to loss and loss
       adjustment expense reserves        6.6      9.1      18.2         28.1
      Interest expense on debt           12.9     11.5      36.5         34.8
      Interest expense - dividends on
       preferred stock subject to
       mandatory redemption               7.6      7.6      22.7         22.7
      Interest expense - accretion on
       preferred stock subject to
       mandatory redemption               7.3      5.7      20.6         16.1

        Total expenses                  960.4  1,308.4   3,033.5      3,288.6

     Pretax income                      225.8   (130.8)    411.4        285.2

      Income tax benefit (provision)    (69.3)    55.6     (66.9)       (56.1)

     Income before equity in earnings
      of unconsolidated affiliates      156.5    (75.2)    344.5        229.1

      Equity in earnings of
       unconsolidated insurance
       affiliates                         5.6      8.9      29.4         27.7

     Net income                         162.1    (66.3)    373.9        256.8

      Change in net unrealized gains
       on investments                   112.6   (122.4)    (59.0)      (127.3)
      Change in foreign currency
       translation and other              1.0      1.6      33.9        (67.0)

     Comprehensive net income           275.7   (187.1)    348.8         62.5

      Add back: Change in net
       unrealized gains and losses
       from Symetra's fixed maturity
       portfolio                        (64.9)    56.3      28.3         17.2

     Adjusted comprehensive net
      income                           $210.8  $(130.8)   $377.1        $79.7

     Basic earnings per share          $15.05   $(6.16)   $34.72       $23.87


     Diluted earnings per share        $15.01   $(6.16)   $34.61       $23.73


     Dividends declared and paid per
      common share                      $2.00    $2.00     $6.00        $6.00



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

     For the Nine Months Ended September 30, 2006

                                  OneBeacon   WM Re  Esurance Other   Total
       Revenues:
         Earned insurance and
          reinsurance premiums     $1,458.1   $943.8  $371.5    $-   $2,773.4
         Net investment income        144.1    130.6    13.6   23.3     311.6
         Net realized investment
          gains (losses)               97.9     48.0     7.0   49.9     202.8
         Other revenue                 48.4     38.2     5.7   64.8     157.1

           Total revenues           1,748.5  1,160.6   397.8  138.0   3,444.9
       Expenses:
         Loss and loss adjustment
          expenses                    891.3    727.3   265.6    1.7   1,885.9
         Insurance and reinsurance
          acquisition expenses        249.8    217.0    95.8     -      562.6
         Other underwriting
          expenses                    253.9     70.3    35.9    1.4     361.5
         General and
          administrative expenses      11.6     12.7     0.1  101.1     125.5
         Accretion of fair value
          adjustment to loss and
          lae reserves                 17.3      0.9      -      -       18.2
         Interest expense on debt      34.8      1.2      -     0.5      36.5
         Interest expense  -
          dividends and accretion
          on preferred stock
          subject to mandatory
          redemption                   43.3       -       -      -       43.3

           Total expenses           1,502.0  1,029.4   397.4  104.7   3,033.5

       Pretax income (loss)          $246.5   $131.2    $0.4  $33.3    $411.4


     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    194.1     109.1     6.5   79.6     389.3
         Net realized
          investment gains
          (losses)                146.1      31.0     3.3  (61.1)    119.3
         Other revenue             48.2      30.4     2.3  103.5     184.4

           Total revenues       2,010.4   1,214.5   225.1  123.8   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                244.5      82.1    25.0    1.3     352.9
         General and
          administrative
          expenses                 10.8       9.0      -   122.2     142.0
         Accretion of fair
          value adjustment to
          loss and lae
          reserves                 19.5       8.6      -      -       28.1
         Interest expense on
          debt                     33.1       1.7      -      -       34.8
         Interest expense  -
          dividends and
          accretion on
          preferred stock
          subject to
          mandatory
          redemption               38.8        -       -      -       38.8

           Total expenses       1,707.2   1,227.0   228.5  125.9   3,288.6

       Pretax income (loss)      $303.2    $(12.5)  $(3.4) $(2.1)   $285.2



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

     For the Three Months Ended September 30, 2006

                                          One
                                        Beacon  WM Re  Esurance Other  Total
        Revenues:
          Earned insurance and
           reinsurance premiums         $492.6  $285.8  $140.5   $-    $918.9
          Net investment income           48.1    46.1     5.2   9.3    108.7
          Net realized investment gains
           (losses)                       31.9     6.8     3.5  25.6     67.8
          Other revenue                   36.6    31.3     1.8  21.1     90.8

            Total revenues               609.2   370.0   151.0  56.0  1,186.2
        Expenses:
          Loss and loss adjustment
           expenses                      292.0   163.1   100.5   2.5    558.1
          Insurance and reinsurance
           acquisition expenses           89.0    65.8    34.5    -     189.3
          Other underwriting expenses     84.0    24.8    13.5   0.5    122.8
          General and administrative
           expenses                        4.9     5.6     0.1  45.2     55.8
          Accretion of fair value
           adjustment to loss and lae
           reserves                        5.8     0.8      -     -       6.6
          Interest expense on debt        12.0     0.4      -    0.5     12.9
          Interest expense  - dividends
           and accretion on preferred
           stock subject to mandatory
           redemption                     14.9      -       -     -      14.9

            Total expenses               502.6   260.5   148.6  48.7    960.4

        Pretax income (loss)            $106.6  $109.5    $2.4  $7.3   $225.8


     For the Three Months Ended September 30, 2005

                                     One
                                   Beacon   WM Re  Esurance  Other  Total
       Revenues:
         Earned insurance and
          reinsurance premiums     $537.1   $363.5  $81.8     $-    $982.4
         Net investment income       56.0     38.9    2.3    13.6    110.8
         Net realized investment
          gains                      58.9     12.5    1.1   (53.6)    18.9
         Other revenue               40.5      2.8    0.8    21.4     65.5

           Total revenues           692.5    417.7   86.0   (18.6) 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                   74.2     19.9    9.9     0.4    104.4
         General and
          administrative expenses    (0.3)     2.7    0.1    38.3     40.8
         Accretion of fair value
          adjustment to loss and
          lae reserves                6.5      2.6     -       -       9.1
         Interest expense on debt    10.9      0.6     -       -      11.5
         Interest expense  -
          dividends and accretion
          on preferred stock
          subject to mandatory
          redemption                 13.3       -      -       -      13.3

           Total expenses           603.0    573.6   92.5    39.3  1,308.4

       Pretax income (loss)         $89.5  $(155.9) $(6.5) $(57.9) $(130.8)



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




    Nine Months Ended
    September 30, 2006                 OneBeacon               WM Re  Esurance
                                   Personal
                          Specialty  (1)  Commercial Total(2)
    GAAP Ratios
    Loss and LAE              63%     59%     56%       61%       77%     72%
    Expense                   31%     33%     39%       35%       31%     35%
         Total Combined       94%     92%     95%       96%      108%    107%
    Dollars in millions
    Net written premiums   $575.8  $450.3  $504.7  $1,526.0  $1,053.6  $436.0
    Earned premiums        $536.2  $450.7  $473.5  $1,458.1    $943.8  $371.5

    Nine Months Ended
     September 30, 2005                OneBeacon               WM Re  Esurance
                                   Personal
                          Specialty  (1)  Commercial Total(2)
    GAAP Ratios
    Loss and LAE              67%     60%     57%       65%       88%     66%
    Expense                   32%     31%     42%       34%       28%     41%
         Total Combined       99%     91%     99%       99%      116%    107%
    Dollars in millions
    Net written premiums   $665.2  $513.8  $467.6  $1,659.5  $1,034.2  $253.4
    Earned premiums        $624.5  $533.9  $466.5  $1,622.0  $1,044.0  $213.0


    Three Months Ended
    September 30, 2006                 OneBeacon               WM Re  Esurance
                                   Personal
                          Specialty  (1)  Commercial Total(2)
    GAAP Ratios
    Loss and LAE              61%     54%     56%       59%       57%     72%
    Expense                   33%     36%     37%       35%       32%     34%
         Total Combined       94%     90%     93%       94%       89%    106%
    Dollars in millions
    Net written premiums   $205.0  $157.4  $174.0    $536.2    $286.4  $164.4
    Earned premiums        $181.1  $148.9  $162.4    $492.6    $285.8  $140.5

    Three Months Ended
     September 30, 2005                OneBeacon               WM Re  Esurance
                                   Personal
                          Specialty  (1)  Commercial Total(2)
    GAAP Ratios
    Loss and LAE              89%     56%     61%       74%      132%     67%
    Expense                   34%     27%     40%       33%       24%     46%
         Total Combined      123%     83%    101%      107%      156%    113%
    Dollars in millions
    Net written premiums   $244.9  $171.9  $161.3    $581.0    $329.1   $99.8
    Earned premiums        $209.8  $173.7  $152.1    $537.1    $363.5   $81.8


    (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.,
+1-203-453-1681

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