White Mountains Reports Adjusted Book Value Per Share of $353
HAMILTON,
Adjusted comprehensive net loss in the fourth quarter of 2008 was
Net loss in the fourth quarter was
OneBeacon
OneBeacon's adjusted book value per share decreased by 14% in the quarter and 22% for the year, including dividends, driven by total investment returns of -8% in the quarter and -13% for the year. The GAAP combined ratio for the fourth quarter of 2008 was 86% compared to 93% for the fourth quarter of 2007, while the GAAP combined ratio for 2008 was 95% compared to 93% for 2007. The improved underwriting results in the quarter were due to lower non-catastrophe losses and more favorable development on prior accident year losses. The increase in the combined ratio year-over-year was primarily a reflection of higher catastrophe losses, somewhat offset by more favorable development on prior accident year losses.
Miller continued, "Our operating results demonstrate our underwriting discipline and ability to create value even in this soft market. We continue to focus on specialization and capital management. We are seeing early signs of an improving pricing environment and are well positioned in the market."
Net written premiums were
During the fourth quarter of 2007, OneBeacon reallocated
White Mountains Re
White Mountains Re's GAAP combined ratio for the fourth quarter of 2008
was 88% compared to 92% for the fourth quarter of 2007, while the GAAP
combined ratio for 2008 was 106% compared to 94% for 2007. The lower combined
ratio for the fourth quarter of 2008 reflected the solid performance of the
book of business with little impact from catastrophes or loss reserve
development. In the fourth quarter of 2008, White Mountains Re recorded a
The combined ratio for 2008 included
Net written premiums were down 22% for the quarter and 15% for the year. The largest decline was in the casualty line of business, due to continuing pressure on rate levels.
During the fourth quarter of 2008, White Mountains Re recorded a
Total revenues were
Other Operations
White Mountains' Other Operations segment's pre-tax loss in the fourth
quarter of 2008 was
The fourth quarter and full year of 2008 included
In addition, the value of White Mountains' investment in Symetra warrants
decreased due to a decline in the valuation of stocks in the life insurance
sector for both periods of 2008. For the fourth quarter of 2008, the value of
Symetra warrants decreased by
Investment Activities
The GAAP total return on invested assets for the fourth quarter and the full year of 2008 was -6% and -9% compared to 2% and 8% in the comparable periods of 2007. The GAAP total return on fixed maturity investments, including mortgage-backed and asset-backed securities, was -2% for the fourth quarter and -3% for 2008, compared to 2% and 7% in the comparable periods of 2007. The GAAP total return on equity and convertible securities was -26% for the fourth quarter and -38% for 2008, compared to 3% and 13% in the comparable periods of 2007.
Mark Dorcus, President of
Effective
Additional Information
White Mountains is a
Regulation G
This earnings release includes three 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/(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 9.
Adjusted book value per share is a non-GAAP measure which is derived by expanding the GAAP book value per share calculation to exclude net unrealized gains/(losses) from Symetra's fixed maturity portfolio. In addition, the number of common shares outstanding used in the calculation of adjusted book value per share are adjusted to exclude unearned 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. The reconciliation of adjusted book value per share to book value per share is included on page 8.
During the second quarter of 2008, White Mountains changed its principal
financial reporting measure from "fully diluted tangible book value per share"
to "adjusted book value per share". Fully diluted tangible book value per
share is a non-GAAP measure that differs from adjusted book value per share by
excluding goodwill and other intangible assets. The change from fully diluted
tangible book value per share to adjusted book value per share has been
presented retroactively for all periods. As a result of the change, goodwill
and other intangible assets are included in the calculation for all periods
presented. For periods ended
Adjusted book value per common share at OneBeacon is a non-GAAP financial measure which is derived by excluding the impact of economically defeasing OneBeacon's mandatorily redeemable preferred stock from book value per common share, the most closely comparable GAAP measure. Management believes that adjusted book value per common share is a useful supplement to understanding OneBeacon's earnings and profitability. A reconciliation of OneBeacon's book value per common share to OneBeacon's adjusted book value per common share follows:
(millions, except per share Dec. 31, Sept. 30, Dec. 31, Sept. 30,
amounts) 2008 2008 2007 2007
OneBeacon book value per share
numerators:
OneBeacon common shareholders'
equity $1,155.1 $1,373.4 $1,906.5 $1,910.9
Remaining accretion of
subsidiary preferred stock
to face value --- --- (21.6) (31.5)
Adjusted OneBeacon common
shareholders' equity $1,155.1 $1,373.4 $1,884.9 $1,879.4
OneBeacon common shares
outstanding 95.1 95.1 98.5 99.7
OneBeacon book value per
common share $12.15 $14.44 $19.36 $19.17
OneBeacon adjusted book value
per common share $12.15 $14.44 $19.14 $18.85
Change in adjusted book
value per common share in
the quarter (1) -14.4%
Change in adjusted book
value per common share for
the last twelve months (1) -21.5%
(1) Includes $.21 dividend per common share paid quarterly beginning in
March 2007 and a special dividend of $2.03 per common share paid in
March 2008 .
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':
-- changes in adjusted 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' 2007 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.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions, except share amounts)
(Unaudited)
December 31, September 30, December 31,
2008 2008 2007
---- ---- ----
Assets
Fixed maturity investments $5,480.5 $6,160.1 $7,371.5
Common equity securities 552.7 1,393.4 1,550.7
Short-term investments 2,244.5 2,256.6 1,327.3
Other investments 416.2 583.9 603.3
Convertible fixed maturity
investments 308.8 353.0 490.6
Investments held in trust - - 305.6
--- --- -----
Total investments 9,002.7 10,747.0 11,649.0
Reinsurance recoverable
on unpaid losses 3,050.4 3,265.4 3,467.9
Reinsurance recoverable
on paid losses 47.3 50.8 59.5
Funds held by ceding companies 163.3 203.0 231.1
Insurance and reinsurance
premiums receivable 835.7 906.0 854.0
Securities lending collateral 220.0 341.2 661.6
Investments in unconsolidated
affiliates 116.9 195.0 406.3
Deferred acquisition costs 323.0 350.4 326.0
Deferred tax asset 724.0 484.9 236.6
Ceded unearned premiums 111.3 134.3 123.1
Value of acquired business
in force - AFI 51.4 56.2 -
Accounts receivable on
unsettled investment sales 78.2 27.0 201.1
Goodwill 19.5 26.6 30.4
Other assets 1,152.1 953.6 836.0
------- ----- -----
Total assets $15,895.8 $17,741.4 $19,082.6
========= ========= =========
Liabilities
Loss and loss adjustment
expense reserves $7,400.1 $7,936.8 $8,062.1
Unearned insurance and
reinsurance premiums 1,597.4 1,743.6 1,605.2
Debt 1,362.0 1,367.1 1,192.9
Securities lending payable 234.8 349.6 661.6
Deferred tax liability 306.0 369.2 353.2
Preferred stock subject
to mandatory redemption - - 278.4
Ceded reinsurance payable 101.3 77.4 101.8
Funds held under
reinsurance treaties 79.1 75.1 103.0
Accounts payable on unsettled
investment purchases 7.5 17.4 46.4
Other liabilities 1,312.2 1,064.8 1,097.2
------- ------- -------
Total liabilities 12,400.4 13,001.0 13,501.8
-------- -------- --------
Minority interest -
OneBeacon Insurance
Group, Ltd. 283.5 337.1 517.2
Minority interest -
White Mountains Re Group ,
Ltd. Preference Shares 250.0 250.0 250.0
Minority interest -
consolidated limited
partnerships 63.1 91.4 100.2
---- ---- -----
Total minority interest 596.6 678.5 867.4
----- ----- -----
Common Shareholders' Equity
Common shares and paid-
in surplus 1,428.2 1,687.1 1,691.2
Retained earnings 1,751.9 2,495.4 2,718.5
Accumulated other comprehensive
income (loss), after tax:
Net unrealized gains
on investments - - 208.9
Equity in unrealized (losses)
gains from investments in
unconsolidated affiliates (1.1) (.5) 3.7
Equity in net unrealized
losses from Symetra's fixed
maturity portfolio (197.3) (146.7) (5.6)
Net unrealized foreign
currency translation (losses)
gains and other (82.9) 26.6 96.7
----- ---- ----
Total common shareholders'
equity 2,898.8 4,061.9 4,713.4
------- ------- -------
Total liabilities,
minority interest and
common shareholders'
equity $15,895.8 $17,741.4 $19,082.6
========= ========= =========
Common shares
outstanding (000's) 8,809 10,442 10,554
Common and equivalent
shares outstanding (000's) 8,772 10,405 10,517
WHITE MOUNTAINS INSURANCE GROUP, LTD.
ADJUSTED BOOK VALUE PER COMMON AND EQUIVALENT SHARE
(Unaudited)
December 31, September 30, December 31, September 30,
2008 2008 2007 2007
---- ---- ---- ----
Book value per
share numerators
(in millions):
Common shareholders'
equity $2,898.8 $4,061.9 $4,713.4 $4,732.6
Benefits to be
received from
share obligations
under employee
benefit plans 1.1 1.3 1.7 2.4
Remaining adjustment
of preferred stock
subj. to mandatory
redemption to
face value - - (15.8)(1) (22.7)(1)
--- --- ----- -----
Book value per share
numerator 2,899.9 4,063.2 4,699.3 4,712.3
Equity in net
unrealized losses
from Symetra's
fixed maturity
portfolio 197.3 146.7 5.6 22.9
----- ----- --- ----
Adjusted book value
per common and
equivalent share
numerator $3,097.2 $4,209.9 $4,704.9 $4,735.2
======== ======== ======== ========
Book value per share
denominators (in
thousands of shares):
Common Shares
outstanding 8,808.8 10,442.0 10,553.6 10,842.6
Share obligations
under employee
benefits plans 6.0 7.8 9.9 14.4
--- --- --- ----
Book value per share
denominator 8,814.8 10,449.8 10,563.5 10,857.0
Unearned restricted
shares (42.6) (45.3) (46.5) (48.5)
----- ----- ----- -----
Adjusted book value
per common and
equivalent share
denominator 8,772.2 10,404.5 10,517.0 10,808.5
======= ======== ======== ========
Book value per
common and
equivalent share $328.97 $388.84 $444.86 $434.03
Adjusted book value
per common and
equivalent share $353.07 $404.62 $447.36 $438.10
======= ======= ======= =======
(1) Remaining adjustment of subsidiary preferred stock to face value,
which is representative of White Mountains' ownership interest in
OneBeacon Insurance Group, Ltd. of 72.9% as of December 31, 2007 and
71.9% as of September 30, 2007 .
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(millions, except per share amounts)
(Unaudited)
Three Months Year
Ended Ended
December 31, December 31,
---- ---- ---- ----
2008 2007 2008 2007
---- ---- ---- ----
Revenues:
Earned insurance and
reinsurance premiums $923.5 $948.7 $3,710.0 $3,783.7
Net investment income 76.1 159.4 410.3 533.0
Net realized investment
(losses) gains (421.8) 70.3 (568.7) 263.2
Net unrealized investment loss (108.3) - (588.4) -
Other revenue (108.9) 23.3 (7.5) 153.9
------ ---- ---- -----
Total revenues 360.6 1,201.7 2,955.7 4,733.8
----- ------- ------- -------
Expenses:
Loss and loss adjustment
expenses 537.4 609.1 2,506.4 2,406.4
Insurance and reinsurance
acquisition expenses 196.5 196.5 752.5 776.6
Other underwriting expenses 102.0 131.5 466.6 509.0
General and administrative
expenses 56.6 42.2 237.9 200.5
Accretion of fair value
adjustment to loss and loss
adjustment expense reserves 4.3 5.4 16.9 21.4
Interest expense on debt 20.6 18.1 82.1 73.0
Interest expense - dividends
on preferred stock subject to
mandatory redemption - 7.1 11.8 29.3
Interest expense - accretion
on preferred stock subject to
mandatory redemption - 9.9 21.6 36.1
--- --- ---- ----
Total expenses 917.4 1,019.8 4,095.8 4,052.3
----- ------- ------- -------
Pre-tax (loss) income (556.8) 181.9 (1,140.1) 681.5
Income tax benefit (provision) 311.6 (59.2) 498.7 (210.5)
----- ----- ----- ------
(Loss) income before equity in
(loss) earnings of
unconsolidated affiliates, (245.2) 122.7 (641.4) 471.0
extraordinary item, and
minority interest
Equity in (loss) earnings of
unconsolidated affiliates (1.4) 2.1 5.8 29.4
Excess of fair value of
acquired assets over cost - - 4.2 -
Minority interest 34.0 (23.6) 76.1 (93.0)
---- ----- ---- -----
Net (loss) income (212.6) 101.2 (555.3) 407.4
------ ----- ------ -----
Change in net unrealized
gains on investments - 5.8 - 15.2
Change in equity in net
unrealized (losses) gains
from investments in
unconsolidated affiliates (51.2) 16.9 (193.0) (2.2)
Change in foreign currency
translation and other (109.5) 20.4 (192.5) 58.9
------ ---- ------ ----
Comprehensive net (loss) income (373.3) 144.3 (940.8) 479.3
------ ----- ------ -----
Change in net unrealized
losses (gains) from Symetra's
fixed maturity portfolio 50.6 (17.3) 191.7 1.5
---- ----- ----- ---
Adjusted comprehensive net
(loss) income $(322.7) $127.0 $(749.1) $480.8
======= ====== ======= ======
Basic (loss) earnings per share $(22.89) $9.56 $(54.54) $37.96
Diluted (loss) earnings per
share $(22.92) $9.55 $(54.54) $37.89
Dividends declared and paid per
common share $- $2.00 $4.00 $8.00
WHITE MOUNTAINS INSURANCE GROUP, LTD.
YTD SEGMENT INCOME STATEMENTS
(in millions)
(Unaudited)
For the Year Ended December 31, 2008
OneBeacon WMRe Esurance Other Total
--------- ------- -------- ----- -----
Revenues:
Earned insurance
and reinsurance
premiums $1,879.0 $1,000.8 $830.2 $- $3,710.0
Net investment income 164.4 178.1 33.8 34.0 410.3
Net realized
investment losses (318.9) (180.5) (10.0) (59.3) (568.7)
Net unrealized
investment losses (444.7) (104.0) (36.1) (3.6) (588.4)
Other revenue -
foreign currency
translation loss - (58.6) - - (58.6)
Other revenue 13.8 42.6 43.3 (48.6) 51.1
------- ----- ----- ----- -------
Total revenues 1,293.6 878.4 861.2 (77.5) 2,955.7
------- ----- ----- ----- -------
Expenses:
Loss and loss adjustment
expenses 1,126.2 745.0 635.8 (.6) 2,506.4
Insurance and reinsurance
acquisition expenses 368.3 214.1 170.1 - 752.5
Other underwriting
expenses 290.8 100.4 73.2 2.2 466.6
General and administrative
expenses 20.3 40.5 32.1 129.0 221.9
Amortization of Answer
Financial purchase
accounting adjustments - - 16.0 - 16.0
Accretion of fair value
adjustment to loss and
lae reserves 12.0 4.9 - - 16.9
Interest expense on debt 44.9 26.6 .5 10.1 82.1
Interest expense -
dividends on
preferred stock 11.8 - - - 11.8
Interest expense -
accretion on
preferred stock 21.6 - - - 21.6
------- ------- ----- ----- -------
Total expenses 1,895.9 1,131.5 927.7 140.7 4,095.8
------- ------- ----- ----- -------
------- ------- ------ ------- ---------
Pre-tax loss $(602.3) $(253.1) $(66.5) $(218.2) $(1,140.1)
======= ======= ====== ======= =========
For the Year Ended December 31, 2007
OneBeacon WMRe Esurance Other Total
--------- ------- -------- ----- -----
Revenues:
Earned insurance
and reinsurance
premiums $1,873.6 $1,146.8 $763.3 $- $3,783.7
Net investment
income 208.5 210.5 29.6 84.4 533.0
Net realized
investment gains 173.7 63.7 4.5 21.3 263.2
Other revenue -
foreign currency
translation loss - (12.5) - - (12.5)
Other revenue 17.2 17.5 13.6 118.1 166.4
------- ------- ----- ----- -------
Total revenues 2,273.0 1,426.0 811.0 223.8 4,733.8
------- ------- ----- ----- -------
Expenses:
Loss and loss adjustment
expenses 1,089.8 701.0 622.4 (6.8) 2,406.4
Insurance and reinsurance
acquisition expenses 318.9 255.0 202.7 - 776.6
Other underwriting
expenses 329.4 118.5 58.4 2.7 509.0
General and administrative
expenses 9.8 26.2 .2 164.3 200.5
Accretion of fair value
adjustment to loss and
lae reserves 16.0 5.4 - - 21.4
Interest expense on debt 45.2 23.2 - 4.6 73.0
Interest expense -
dividends on
preferred stock 29.3 - - - 29.3
Interest expense -
accretion on
preferred stock 36.1 - - - 36.1
------- ------- ----- ----- -------
Total expenses 1,874.5 1,129.3 883.7 164.8 4,052.3
------- ------- ----- ----- -------
------ ------ ------ ----- ------
Pre-tax income (loss) $398.5 $296.7 $(72.7) $59.0 $681.5
====== ====== ====== ===== ======
WHITE MOUNTAINS INSURANCE GROUP, LTD.
QTD SEGMENT INCOME STATEMENTS
(in millions)
(Unaudited)
For the Three Months Ended December 31, 2008
OneBeacon WMRe Esurance Other Total
--------- ---- -------- ----- -----
Revenues:
Earned insurance and
reinsurance premiums $488.7 $231.8 $203.0 $- $923.5
Net investment income 26.6 36.2 8.7 4.6 76.1
Net realized
investment losses (259.7) (123.1) (5.4) (33.6) (421.8)
Net unrealized investment
(losses) gains (90.0) (8.0) (12.7) 2.4 (108.3)
Other revenue -
foreign currency
translation loss - (28.8) - - (28.8)
Other revenue 3.2 26.6 15.0 (124.9) (80.1)
----- ----- ----- ------ -----
Total revenues 168.8 134.7 208.6 (151.5) 360.6
----- ----- ----- ------ -----
Expenses:
Loss and loss adjustment
expenses 247.5 133.6 156.3 - 537.4
Insurance and reinsurance
acquisition expenses 106.7 50.4 39.4 - 196.5
Other underwriting
expenses 67.2 19.8 14.7 .3 102.0
General and administrative
expenses 4.3 14.7 9.7 22.5 51.2
Amortization of Answer
Financial purchase
accounting adjustments - - 5.4 - 5.4
Accretion of fair value
adjustment to loss and
lae reserves 3.0 1.3 - - 4.3
Interest expense on debt 11.0 5.8 - 3.8 20.6
----- ----- ----- ---- -----
Total expenses 439.7 225.6 225.5 26.6 917.4
----- ----- ----- ---- -----
------- ------ ------ ------- -------
Pre-tax loss $(270.9) $(90.9) $(16.9) $(178.1) $(556.8)
======= ====== ====== ======= =======
For the Three Months Ended December 31, 2007
OneBeacon WMRe Esurance Other Total
--------- ------ -------- ----- -----
Revenues:
Earned insurance and
reinsurance premiums $466.1 $275.9 $206.7 $- $948.7
Net investment income 51.8 54.8 8.1 44.7 159.4
Net realized investment
gains 31.0 18.8 1.7 18.8 70.3
Other revenue -
foreign currency
translation loss - (16.4) - - (16.4)
Other revenue .9 11.9 4.5 22.4 39.7
----- ----- ----- ---- -------
Total revenues 549.8 345.0 221.0 85.9 1,201.7
----- ----- ----- ---- -------
Expenses:
Loss and loss adjustment
expenses 262.7 163.3 179.2 3.9 609.1
Insurance and reinsurance
acquisition expenses 87.4 57.1 52.0 - 196.5
Other underwriting
expenses 82.5 32.1 16.5 .4 131.5
General and administrative
expenses 2.3 4.5 - 35.4 42.2
Accretion of fair value
adjustment to loss and
lae reserves 4.0 1.4 - - 5.4
Interest expense on debt 11.1 7.0 - - 18.1
Interest expense -
dividends on
preferred stock 7.1 - - - 7.1
Interest expense -
accretion on
preferred stock 9.9 - - - 9.9
----- ----- ----- ---- -------
Total expenses 467.0 265.4 247.7 39.7 1,019.8
----- ----- ----- ---- -------
----- ----- ------ ----- ------
Pre-tax income (loss) $82.8 $79.6 $(26.7) $46.2 $181.9
===== ===== ====== ===== ======
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SUMMARY OF GAAP RATIOS AND PREMIUMS
(Unaudited)
OneBeacon
---------
Three Months Ended December 31, 2008
------------------------------------
Specialty Commercial Personal Total (1)
--------- ---------- -------- ---------
GAAP Ratios
Loss and LAE 40% 49% 62% 50%
Expense 39% 35% 32% 36%
-- -- -- --
Total GAAP Combined 79% 84% 94% 86%
===================== == == == ==
Dollars in millions
------------------- ------ ------ ------ ------
Net written premiums $161.7 $170.2 $141.7 $473.7
Earned premiums $153.4 $179.8 $155.5 $488.7
--------------- ------ ------ ------ ------
OneBeacon Three Months Ended December 31, 2007
------------------------------------
Specialty Commercial Personal Total (1)
--------- ---------- -------- ---------
GAAP Ratios
Loss and LAE -18% 42% 46% 56%
Expense 31% 40% 35% 37%
-- -- -- --
Total Combined 13% 82% 81% 93%
=================== == == == ==
Dollars in millions
------------------- ----- ------ ------ ------
Net written premiums $99.5 $173.1 $154.7 $427.4
Earned premiums $111.2 $181.9 $172.9 $466.1
--------------- ------ ------ ------ ------
OneBeacon
---------
Year Ended December 31, 2008
----------------------------
Specialty Commercial Personal Total (1)
--------- ---------- -------- ---------
GAAP Ratios
Loss and LAE 51% 60% 64% 60%
Expense 36% 36% 32% 35%
-- -- -- --
Total GAAP Combined 87% 96% 96% 95%
===================== == == == ==
Dollars in millions
------------------- ------ ------ ------ --------
Net written premiums $621.9 $722.1 $618.7 $1,963.1
Earned premiums $512.7 $725.2 $640.8 $1,879.0
--------------- ------ ------ ------ --------
OneBeacon Year Ended December 31, 2007
----------------------------
Specialty Commercial Personal Total (1)
--------- ---------- -------- ---------
GAAP Ratios
Loss and LAE 38% 51% 57% 58%
Expense 30% 37% 34% 35%
-- -- -- --
Total Combined 68% 88% 91% 93%
=================== == == == ==
Dollars in millions
------------------- ------ ------ ------ --------
Net written premiums $440.3 $733.4 $690.4 $1,864.4
Earned premiums $433.3 $715.2 $725.0 $1,873.6
--------------- ------ ------ ------ --------
White Mountains Re Esurance
------------------ --------
Three Months Three Months
Ended Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
GAAP Ratios
Loss and LAE 58% 59% 77% 87%
Expense 30% 33% 27% 33%
-- -- -- --
Total Combined 88% 92% 104% 120%
=================== == == === ===
Dollars in millions
------------------- ------ ------ ------ ------
Gross written premiums $163.8 $222.0 $183.3 $197.9
Net written premiums $147.7 $190.4 $182.8 $197.1
Earned premiums $231.8 $275.9 $203.0 $206.7
White Mountains Re Esurance
------------------ --------
Year Ended Year Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
---- ---- ---- ----
GAAP Ratios
Loss and LAE 74% 61% 77% 82%
Expense 32% 33% 29% 34%
-- -- -- --
Total Combined 106% 94% 106% 116%
=================== === == === ===
Dollars in millions
------------------- -------- -------- ------ ------
Gross written premiums $1,076.1 $1,295.3 $826.4 $802.5
Net written premiums $931.1 $1,095.7 $823.4 $798.5
Earned premiums $1,000.8 $1,146.8 $830.2 $763.3
--------------- -------- -------- ------ ------
(1) Includes results from runoff operations.
CONTACT: David Foy
(203) 458-5850
SOURCE White Mountains Insurance Group, Ltd.