White Mountains Reports Adjusted Book Value Per Share Of $664
Adjusted comprehensive loss was
OneBeacon
OneBeacon's book value per share increased 2% for the first quarter of 2015, including dividends. OneBeacon's GAAP combined ratio was 95% for the first quarter of 2015 compared to 89% for the first quarter last year. The increase was partially driven by a higher current accident year loss ratio. The first quarter also included 2 points of catastrophe losses primarily related to winter storms in the
Net written premiums were
In the first quarter of 2015, gross written premiums decreased 6% to
HG Global/BAM
In the first quarter of 2015, BAM insured
HG Global reported pre-tax income of
Cochran continued, "BAM's commitment to promoting transparency and disclosure by municipal issuers reached a milestone in February, when we published our 1,500th Obligor Disclosure Brief ("ODB") - the credit summaries we make available on our web site for every insured exposure, updated annually. The ODBs provide unique value for investors who are seeking to monitor the underlying credit quality of their municipal bond portfolios, as well as for regional dealers and issuers who are paying more attention to compliance with
Other Operations
White Mountains's Other Operations segment reported pre-tax losses of
Investment in Symetra Common Shares
During the first quarter of 2015, White Mountains recorded
Investment Activities
The GAAP total return on invested assets was -0.1% for the first quarter of 2015, which included 1.0% of currency losses. This compared to a return of 1.1% for the first quarter of 2014. Currency translation did not meaningfully impact the first quarter of 2014.
Additional Information
White Mountains is a
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's financial performance.
Adjusted book value per share is a non-GAAP financial measure which is derived by expanding the calculation of GAAP book value per share to exclude equity in net unrealized gains (losses) from Symetra's fixed maturity portfolio, net of applicable taxes, from book value. In addition, the number of common shares outstanding used in the calculation of adjusted book value per White Mountains's common share are adjusted to exclude unearned restricted common shares, the compensation cost of which, at the date of calculation, has yet to be amortized. The reconciliation of adjusted book value per share to GAAP book value per share is included on page 7.
Adjusted comprehensive income (loss) is a non-GAAP financial measure that excludes the change in equity in net unrealized gains (losses) from Symetra's fixed maturity portfolio, net of applicable taxes, from comprehensive income (loss) attributable to White Mountains's common shareholders. The reconciliation of adjusted comprehensive income (loss) to GAAP comprehensive income (loss) attributable to White Mountains's common shareholders is included on page 8.
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 White Mountains expects or anticipates 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's:
- change in adjusted book value per share or return on equity;
- business strategy;
- financial and operating targets or plans;
- incurred loss and loss adjustment expenses 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 its 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 its 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's 2014 Annual Report on Form 10-K;
- claims arising from catastrophic events, such as hurricanes, earthquakes, floods, fires, terrorist attacks or severe winter weather;
- 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 customers;
- an economic downturn or other economic conditions adversely affecting its financial position;
- recorded loss reserves subsequently proving to have been inadequate;
- actions taken by ratings agencies from time to time, such as financial strength or credit ratings downgrades or placing ratings on negative watch; and
- other factors, most of which are beyond White Mountains's 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) |
||||||||||||
(Unaudited) |
||||||||||||
March 31, |
December 31, |
March 31, |
||||||||||
Assets |
||||||||||||
Fixed maturity investments |
$ |
4,771.9 |
$ |
4,784.3 |
$ |
4,988.7 |
||||||
Short-term investments |
929.2 |
871.7 |
674.0 |
|||||||||
Common equity securities |
786.9 |
801.6 |
1,174.6 |
|||||||||
Convertible fixed maturity and preferred investments |
15.8 |
20.5 |
73.8 |
|||||||||
Other long-term investments |
402.6 |
407.0 |
301.5 |
|||||||||
Total investments |
6,906.4 |
6,885.1 |
7,212.6 |
|||||||||
Cash |
335.8 |
373.2 |
338.6 |
|||||||||
Reinsurance recoverable on paid and unpaid losses |
466.7 |
507.5 |
440.4 |
|||||||||
Insurance and reinsurance premiums receivable |
706.9 |
547.7 |
734.8 |
|||||||||
Funds held by ceding entities |
99.6 |
129.0 |
93.8 |
|||||||||
Investments in unconsolidated affiliates |
450.8 |
414.4 |
373.3 |
|||||||||
Deferred acquisition costs |
192.0 |
177.1 |
190.0 |
|||||||||
Deferred tax asset |
417.9 |
456.1 |
484.9 |
|||||||||
Ceded unearned insurance and reinsurance premiums |
145.1 |
94.0 |
149.5 |
|||||||||
Accounts receivable on unsettled investment sales |
12.0 |
56.5 |
19.9 |
|||||||||
Goodwill and intangible assets |
362.6 |
366.4 |
86.2 |
|||||||||
Other assets |
354.0 |
390.6 |
488.5 |
|||||||||
Assets held for sale |
58.0 |
58.1 |
1,803.1 |
|||||||||
Total assets |
$ |
10,507.8 |
$ |
10,455.7 |
$ |
12,415.6 |
||||||
Liabilities |
||||||||||||
Loss and loss adjustment expense reserves |
$ |
3,035.0 |
$ |
3,159.8 |
$ |
3,048.4 |
||||||
Unearned insurance and reinsurance premiums |
1,102.5 |
955.3 |
1,116.6 |
|||||||||
Debt |
749.8 |
746.6 |
677.6 |
|||||||||
Deferred tax liability |
254.0 |
282.8 |
353.9 |
|||||||||
Ceded reinsurance payable |
151.8 |
105.7 |
157.9 |
|||||||||
Funds held under insurance and reinsurance contracts |
143.3 |
138.9 |
127.8 |
|||||||||
Accounts payable on unsettled investment purchases |
92.6 |
2.6 |
80.9 |
|||||||||
Other liabilities |
439.0 |
525.6 |
522.3 |
|||||||||
Liabilities held for sale |
— |
— |
1,803.1 |
|||||||||
Total liabilities |
5,968.0 |
5,917.3 |
7,888.5 |
|||||||||
Equity |
||||||||||||
White Mountains's common shareholders' equity |
||||||||||||
White Mountains's common shares and paid-in surplus |
1,038.7 |
1,034.7 |
1,052.9 |
|||||||||
Retained earnings |
3,080.8 |
3,010.5 |
2,880.2 |
|||||||||
Accumulated other comprehensive income (loss), after tax: |
||||||||||||
Equity in net unrealized gains (losses) from investments in Symetra common shares |
63.8 |
34.9 |
(3.9) |
|||||||||
Net unrealized foreign currency translation (losses) gains |
(167.6) |
(79.8) |
80.5 |
|||||||||
Pension liability and other |
(4.4) |
(4.6) |
4.2 |
|||||||||
Total White Mountains's common shareholders' equity |
4,011.3 |
3,995.7 |
4,013.9 |
|||||||||
Non-controlling interests |
||||||||||||
Non-controlling interest - OneBeacon Ltd. |
258.8 |
258.4 |
279.0 |
|||||||||
Non-controlling interest - SIG Preference Shares |
250.0 |
250.0 |
250.0 |
|||||||||
Non-controlling interest - mutuals and reciprocals |
(140.5) |
(134.3) |
(107.3) |
|||||||||
Non-controlling interest - other |
160.2 |
168.6 |
91.5 |
|||||||||
Total non-controlling interests |
528.5 |
542.7 |
513.2 |
|||||||||
Total equity |
4,539.8 |
4,538.4 |
4,527.1 |
|||||||||
Total liabilities and equity |
$ |
10,507.8 |
$ |
10,455.7 |
$ |
12,415.6 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||
BOOK VALUE AND ADJUSTED BOOK VALUE PER SHARE |
||||||||||||
(Unaudited) |
||||||||||||
March 31, |
December 31, |
March 31, |
||||||||||
Book value per share numerators (in millions): |
||||||||||||
White Mountains's common shareholders' equity - book value per share numerator (1) |
$ |
4,011.3 |
$ |
3,995.7 |
$ |
4,013.9 |
||||||
Equity in net unrealized losses (gains) from Symetra's fixed maturity portfolio, net of applicable taxes |
(63.8) |
(34.9) |
3.9 |
|||||||||
Adjusted book value per share numerator (1) |
$ |
3,947.5 |
$ |
3,960.8 |
$ |
4,017.8 |
||||||
Book value per share denominators (in thousands of shares): |
||||||||||||
Common shares outstanding - book value per share denominator (1) |
5,991.6 |
5,986.2 |
6,174.4 |
|||||||||
Unearned restricted common shares |
(43.4) |
(25.7) |
(45.7) |
|||||||||
Adjusted book value per share denominator (1) |
5,948.2 |
5,960.5 |
6,128.7 |
|||||||||
Book value per share |
$ |
669.48 |
$ |
667.48 |
$ |
650.09 |
||||||
Adjusted book value per share |
$ |
663.64 |
$ |
664.50 |
$ |
655.57 |
||||||
(1) Excludes out-of-the-money stock options. |
||||||||||||
March 31, |
December 31, |
March 31, |
||||||||||
YTD |
YTD |
YTD |
||||||||||
Growth in adjusted book value per share, including dividends |
0.0 |
% |
3.6 |
% |
2.2 |
% |
||||||
Dividends per share |
$ |
1.00 |
$ |
1.00 |
$ |
1.00 |
||||||
Summary of goodwill and intangible assets (in millions): |
March 31, |
December 31, |
March 31, |
|||||||||
Goodwill: |
||||||||||||
Tranzact |
$ |
145.1 |
$ |
145.1 |
$ |
— |
||||||
QuoteLab |
18.3 |
18.3 |
18.3 |
|||||||||
Wobi |
5.8 |
5.5 |
5.5 |
|||||||||
Total goodwill |
169.2 |
168.9 |
23.8 |
|||||||||
Intangible assets: |
||||||||||||
Tranzact |
138.5 |
142.8 |
— |
|||||||||
QuoteLab |
30.5 |
32.5 |
38.5 |
|||||||||
Other |
24.4 |
22.2 |
23.9 |
|||||||||
Total intangible assets |
193.4 |
197.5 |
62.4 |
|||||||||
Total goodwill and intangible assets |
362.6 |
366.4 |
86.2 |
|||||||||
Goodwill and intangible assets attributed to non-controlling interest |
(128.8) |
(141.8) |
(27.2) |
|||||||||
Goodwill and intangible assets included in adjusted book value |
$ |
233.8 |
$ |
224.6 |
$ |
59.0 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||||||
(millions, except per share amounts) |
||||||||
(Unaudited) |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2015 |
2014 |
|||||||
Revenues: |
||||||||
Earned insurance and reinsurance premiums |
$ |
494.3 |
$ |
493.6 |
||||
Net investment income |
23.3 |
24.7 |
||||||
Net realized and unrealized investment gains |
103.4 |
63.8 |
||||||
Other revenue |
35.8 |
(3.4) |
||||||
Total revenues |
656.8 |
578.7 |
||||||
Expenses: |
||||||||
Loss and loss adjustment expenses |
265.4 |
229.3 |
||||||
Insurance and reinsurance acquisition expenses |
95.6 |
95.1 |
||||||
Other underwriting expenses |
81.5 |
81.4 |
||||||
General and administrative expenses |
109.5 |
50.0 |
||||||
Intangible amortization |
6.9 |
.3 |
||||||
Interest expense |
11.1 |
10.1 |
||||||
Total expenses |
570.0 |
466.2 |
||||||
Pre-tax income from continuing operations |
86.8 |
112.5 |
||||||
Income tax expense |
(25.0) |
(30.9) |
||||||
Net income from continuing operations |
61.8 |
81.6 |
||||||
Net income (loss) from discontinued operations, net of tax |
7.9 |
(.5) |
||||||
Income before equity in earnings of unconsolidated affiliates |
69.7 |
81.1 |
||||||
Equity in earnings of unconsolidated affiliates, net of tax |
7.3 |
13.8 |
||||||
Net income |
77.0 |
94.9 |
||||||
Net loss attributable to non-controlling interests |
7.3 |
.6 |
||||||
Net income attributable to White Mountains's common shareholders |
84.3 |
95.5 |
||||||
Comprehensive income (loss), net of tax: |
||||||||
Change in equity in net unrealized gains from investments in Symetra common shares, net of tax |
28.9 |
36.5 |
||||||
Change in foreign currency translation, pension liability and other |
(87.6) |
(7.8) |
||||||
Comprehensive income |
25.6 |
124.2 |
||||||
Comprehensive loss (income) attributable to non-controlling interests |
— |
— |
||||||
Comprehensive income attributable to White Mountains's common shareholders |
25.6 |
124.2 |
||||||
Change in equity in net unrealized gains from Symetra's fixed maturity portfolio, net of applicable taxes |
(28.9) |
(36.5) |
||||||
Adjusted comprehensive (loss) income |
$ |
(3.3) |
$ |
87.7 |
||||
Income (loss) per share attributable to White Mountains's common shareholders |
||||||||
Basic income (loss) per share |
||||||||
Continuing operations |
$ |
12.77 |
$ |
15.56 |
||||
Discontinued operations |
1.32 |
(.08) |
||||||
Total consolidated operations |
$ |
14.09 |
$ |
15.48 |
||||
Diluted income (loss) per share |
||||||||
Continuing operations |
$ |
12.77 |
$ |
15.56 |
||||
Discontinued operations |
1.32 |
(.08) |
||||||
Total consolidated operations |
$ |
14.09 |
$ |
15.48 |
||||
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
|||||||||||||||||||||||
YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) |
|||||||||||||||||||||||
(millions) |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
For the Three Months Ended March 31, 2015 |
HG Global/BAM |
||||||||||||||||||||||
OneBeacon |
Sirius Group |
HG Global |
BAM |
Other |
Total |
||||||||||||||||||
Revenues: |
|||||||||||||||||||||||
Earned insurance and reinsurance premiums |
$ |
286.6 |
$ |
205.0 |
$ |
.5 |
$ |
.2 |
$ |
2.0 |
$ |
494.3 |
|||||||||||
Net investment income |
10.5 |
8.0 |
.4 |
1.0 |
3.4 |
23.3 |
|||||||||||||||||
Net investment income (loss) - surplus note interest |
— |
— |
4.0 |
(4.0) |
— |
— |
|||||||||||||||||
Net realized and unrealized investment gains |
14.2 |
79.9 |
1.1 |
3.0 |
5.2 |
103.4 |
|||||||||||||||||
Other revenue - foreign currency translation losses |
— |
(24.6) |
— |
— |
— |
(24.6) |
|||||||||||||||||
Other (losses) revenue |
(3.1) |
(2.8) |
— |
.1 |
66.2 |
60.4 |
|||||||||||||||||
Total revenues |
308.2 |
265.5 |
6.0 |
.3 |
76.8 |
656.8 |
|||||||||||||||||
Expenses: |
|||||||||||||||||||||||
Loss and loss adjustment expenses |
165.9 |
97.5 |
— |
— |
2.0 |
265.4 |
|||||||||||||||||
Insurance and reinsurance acquisition expenses |
51.0 |
42.6 |
.1 |
.8 |
1.1 |
95.6 |
|||||||||||||||||
Other underwriting expenses |
55.9 |
25.5 |
— |
.1 |
— |
81.5 |
|||||||||||||||||
General and administrative expenses |
3.8 |
6.2 |
.4 |
8.2 |
90.9 |
109.5 |
|||||||||||||||||
Intangible asset amortization |
.3 |
— |
— |
— |
6.6 |
6.9 |
|||||||||||||||||
Interest expense |
3.2 |
6.8 |
— |
— |
1.1 |
11.1 |
|||||||||||||||||
Total expenses |
280.1 |
178.6 |
.5 |
9.1 |
101.7 |
570.0 |
|||||||||||||||||
Pre-tax income (loss) |
$ |
28.1 |
$ |
86.9 |
$ |
5.5 |
$ |
(8.8) |
$ |
(24.9) |
$ |
86.8 |
For the Three Months Ended March 31, 2014 |
HG Global/BAM |
|||||||||||||||||||||||
OneBeacon |
Sirius Group |
HG Global |
BAM |
Other |
Total |
|||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Earned insurance and reinsurance premiums |
$ |
276.5 |
$ |
215.5 |
$ |
.2 |
$ |
.1 |
$ |
1.3 |
$ |
493.6 |
||||||||||||
Net investment income |
10.4 |
8.7 |
.3 |
1.4 |
3.9 |
24.7 |
||||||||||||||||||
Net investment income (loss) - surplus note interest |
— |
— |
3.9 |
(3.9) |
— |
— |
||||||||||||||||||
Net realized and unrealized investment gains |
18.9 |
28.1 |
.7 |
3.0 |
13.1 |
63.8 |
||||||||||||||||||
Other revenue - foreign currency translation losses |
— |
(3.9) |
— |
— |
— |
(3.9) |
||||||||||||||||||
Other revenue (losses) |
1.0 |
(1.4) |
— |
.2 |
.7 |
.5 |
||||||||||||||||||
Total revenues |
306.8 |
247.0 |
5.1 |
0.8 |
19.0 |
578.7 |
||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Loss and loss adjustment expenses |
149.4 |
78.8 |
— |
— |
1.1 |
229.3 |
||||||||||||||||||
Insurance and reinsurance acquisition expenses |
46.7 |
47.4 |
.1 |
.4 |
.5 |
95.1 |
||||||||||||||||||
Other underwriting expenses |
49.4 |
31.8 |
— |
.1 |
.1 |
81.4 |
||||||||||||||||||
General and administrative expenses |
3.0 |
8.4 |
.4 |
8.9 |
29.3 |
50.0 |
||||||||||||||||||
Intangible asset amortization |
.3 |
— |
— |
— |
— |
.3 |
||||||||||||||||||
Interest expense |
3.2 |
6.6 |
— |
— |
.3 |
10.1 |
||||||||||||||||||
Total expenses |
252.0 |
173.0 |
.5 |
9.4 |
31.3 |
466.2 |
||||||||||||||||||
Pre-tax income (loss) |
$ |
54.8 |
$ |
74.0 |
$ |
4.6 |
$ |
(8.6) |
$ |
(12.3) |
$ |
112.5 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||
SELECTED FINANCIAL DATA |
||||||||
(Dollars in millions) |
||||||||
(Unaudited) |
||||||||
Three Months Ended March 31, |
||||||||
OneBeacon |
2015 |
2014 |
||||||
GAAP Ratios |
||||||||
Loss and LAE |
58 |
% |
54 |
% |
||||
Expense |
37 |
% |
35 |
% |
||||
Combined |
95 |
% |
89 |
% |
||||
Net written premiums |
$ |
287.1 |
$ |
311.1 |
||||
Earned premiums |
$ |
286.6 |
$ |
276.5 |
Three Months Ended |
||||||||
Sirius Group |
2015 |
2014 |
||||||
GAAP Ratios |
||||||||
Loss and LAE |
48 |
% |
36 |
% |
||||
Expense |
33 |
% |
37 |
% |
||||
Combined |
81 |
% |
73 |
% |
||||
Gross written premiums |
$ |
423.3 |
$ |
452.7 |
||||
Net written premiums |
$ |
303.2 |
$ |
333.3 |
||||
Earned premiums |
$ |
205.0 |
$ |
215.5 |
Three Months Ended |
||||||||
BAM |
2015 |
2014 |
||||||
Gross par value of primary market policies priced |
$ |
2,439.8 |
$ |
1,335.2 |
||||
Gross par value of secondary market policies priced |
85.7 |
177.8 |
||||||
Total gross par value of market policies priced |
$ |
2,525.5 |
$ |
1,513.0 |
||||
Gross par value of primary and secondary market policies issued |
$ |
2,103.9 |
$ |
1,329.0 |
||||
Gross written premiums |
$ |
4.2 |
$ |
4.8 |
||||
Member surplus contributions collected |
$ |
4.6 |
$ |
4.8 |
As of March 31, 2015 |
As of December 31, 2014 |
|||||||||||
Policyholders' surplus |
$ |
444.3 |
$ |
448.7 |
||||||||
Contingency reserve |
6.2 |
4.7 |
||||||||||
Qualified statutory capital |
450.5 |
453.4 |
||||||||||
Net unearned premiums |
7.5 |
6.4 |
||||||||||
Present value of future installment premiums |
1.4 |
1.4 |
||||||||||
Collateral trusts |
122.6 |
120.0 |
||||||||||
Claims paying resources |
$ |
582.0 |
$ |
581.2 |
Three Months Ended |
||||||||
HG Global |
2015 |
2014 |
||||||
Net written premiums |
$ |
3.2 |
$ |
3.7 |
||||
Earned premiums |
$ |
.5 |
$ |
.2 |
As of March 31, 2015 |
As of December 31, 2014 |
|||||||||||
Unearned premiums |
$ |
23.9 |
$ |
21.2 |
||||||||
Deferred acquisition costs |
$ |
5.2 |
$ |
4.6 |
CONTACT:
(203) 458-5850
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/white-mountains-reports-adjusted-book-value-per-share-of-664-300076500.html
SOURCE