White Mountains Reports Fourth Quarter Results
Manning Rountree, CEO, commented, "We had a solid 4th quarter to cap off a satisfying year. Our investment portfolio was up 4% in the quarter, a strong result that included a
Comprehensive income attributable to common shareholders was
HG Global/BAM
BAM's gross written premiums and member surplus contributions (MSC) collected were
(1) See "Regulation G" on page 16.
Seán McCarthy, CEO of BAM, said, "BAM completed a successful year, posting record par insured in both the primary and secondary markets, albeit at lower pricing levels given the lower interest rate environment. In the primary market, BAM's par insured was up 19% versus 2018, as the low interest rate environment created significant opportunities for municipal bond issuers to save money by refinancing existing debt. In the secondary market, institutional investor demand drove par insured to
HG Global reported pre-tax income of
In
During the fourth quarter of 2019, White Mountains updated its debt service model for the BAM surplus notes to reflect (i) the cash payments of surplus note principal and interest made in
BAM is a mutual insurance company that is owned by its members. BAM's results are consolidated into White Mountains's GAAP financial statements and attributed to non-controlling interests.
NSM
NSM reported pre-tax loss of
Kudu
In the fourth quarter of 2019, Kudu reported total revenues of
In the fourth quarter of 2019, Kudu deployed
Other Operations
White Mountains's Other Operations segment reported pre-tax income of
Investments
The total return on invested assets was 3.9% in the fourth quarter of 2019 compared to -4.4% in the fourth quarter of 2018. The total return on invested assets was 20.4% for the year ended
Additional Information
White Mountains is a
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||||
(millions) |
||||||||||||
(Unaudited) |
||||||||||||
December 31, |
September 30, |
December 31, |
||||||||||
Assets |
||||||||||||
Financial Guarantee (HG Global/BAM) |
||||||||||||
Fixed maturity investments |
$ |
799.3 |
$ |
794.5 |
$ |
701.4 |
||||||
Short-term investments |
46.3 |
57.1 |
66.9 |
|||||||||
Total investments |
845.6 |
851.6 |
768.3 |
|||||||||
Cash |
24.2 |
11.3 |
12.5 |
|||||||||
Insurance premiums receivable |
6.7 |
6.7 |
6.4 |
|||||||||
Deferred acquisition costs |
22.1 |
21.4 |
19.0 |
|||||||||
Accrued investment income |
5.4 |
5.5 |
4.9 |
|||||||||
Other assets |
20.0 |
16.4 |
5.1 |
|||||||||
Total Financial Guarantee assets |
924.0 |
912.9 |
816.2 |
|||||||||
Specialty Insurance Distribution (NSM) |
||||||||||||
Cash (restricted $56.3, $67.0 and $50.0) |
89.7 |
105.7 |
66.2 |
|||||||||
Premium and commission receivable |
70.8 |
53.6 |
44.0 |
|||||||||
Goodwill and other intangible assets |
623.0 |
630.6 |
486.2 |
|||||||||
Other assets |
41.7 |
35.1 |
27.2 |
|||||||||
Total Specialty Insurance Distribution assets |
825.2 |
825.0 |
623.6 |
|||||||||
Global Asset and Wealth Management (Kudu) |
||||||||||||
Short-term investments |
.1 |
.1 |
— |
|||||||||
Other long-term investments |
266.5 |
219.3 |
— |
|||||||||
Total investments |
266.6 |
219.4 |
— |
|||||||||
Cash |
5.8 |
4.9 |
— |
|||||||||
Accrued investment income |
5.8 |
4.7 |
— |
|||||||||
Goodwill and other intangible assets |
9.6 |
9.6 |
— |
|||||||||
Other assets |
2.7 |
3.7 |
— |
|||||||||
Total Global Asset and Wealth Management assets |
290.5 |
242.3 |
— |
|||||||||
Marketing Technology (MediaAlpha) |
||||||||||||
Cash |
— |
— |
5.7 |
|||||||||
Goodwill and other intangible assets |
— |
— |
43.4 |
|||||||||
Accounts receivable from publishers and advertisers |
— |
— |
37.0 |
|||||||||
Other assets |
— |
— |
2.3 |
|||||||||
Total Marketing Technology assets |
— |
— |
88.4 |
|||||||||
Other Operations |
||||||||||||
Fixed maturity investments |
406.5 |
371.5 |
376.1 |
|||||||||
Short-term investments |
154.8 |
215.3 |
147.3 |
|||||||||
Common equity securities |
683.9 |
629.7 |
925.6 |
|||||||||
Other long-term investments |
589.8 |
554.4 |
325.6 |
|||||||||
Total investments |
1,835.0 |
1,770.9 |
1,774.6 |
|||||||||
Cash |
41.3 |
27.3 |
25.9 |
|||||||||
Accrued investment income |
5.7 |
5.1 |
5.5 |
|||||||||
Goodwill and other intangible assets |
22.1 |
20.7 |
7.9 |
|||||||||
Other assets |
36.4 |
29.3 |
17.2 |
|||||||||
Assets held for sale |
3.0 |
2.8 |
3.3 |
|||||||||
Total Other Operations assets |
1,943.5 |
1,856.1 |
1,834.4 |
|||||||||
Total assets |
$ |
3,983.2 |
$ |
3,836.3 |
$ |
3,362.6 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) |
||||||||||||
(millions) |
||||||||||||
(Unaudited) |
||||||||||||
December 31, |
September 30, |
December 31, |
||||||||||
Liabilities |
||||||||||||
Financial Guarantee (HG Global/BAM) |
||||||||||||
Unearned insurance premiums |
$ |
198.4 |
$ |
203.5 |
$ |
176.0 |
||||||
Accrued incentive compensation |
21.7 |
19.0 |
20.4 |
|||||||||
Other liabilities |
26.7 |
31.0 |
16.1 |
|||||||||
Total Financial Guarantee liabilities |
246.8 |
253.5 |
212.5 |
|||||||||
Specialty Insurance Distribution (NSM) |
||||||||||||
Debt |
219.2 |
219.4 |
178.5 |
|||||||||
Premiums payable |
102.3 |
92.6 |
77.2 |
|||||||||
Contingent consideration earnout liabilities |
20.6 |
28.7 |
20.2 |
|||||||||
Other liabilities |
59.0 |
60.1 |
38.9 |
|||||||||
Total Specialty Insurance Distribution liabilities |
401.1 |
400.8 |
314.8 |
|||||||||
Global Asset and Wealth Management (Kudu) |
||||||||||||
Debt |
53.6 |
— |
— |
|||||||||
Other liabilities |
3.4 |
5.3 |
— |
|||||||||
Total Global Asset and Wealth Management liabilities |
57.0 |
5.3 |
— |
|||||||||
Marketing Technology (MediaAlpha) |
||||||||||||
Debt |
— |
— |
14.2 |
|||||||||
Amounts due to publishers and advertisers |
— |
— |
27.0 |
|||||||||
Other liabilities |
— |
— |
5.7 |
|||||||||
Total Marketing Technology liabilities |
— |
— |
46.9 |
|||||||||
Other Operations |
||||||||||||
Debt |
10.7 |
10.8 |
— |
|||||||||
Accrued incentive compensation |
55.1 |
44.9 |
38.9 |
|||||||||
Other liabilities |
67.8 |
50.1 |
31.3 |
|||||||||
Total Other Operations liabilities |
133.6 |
105.8 |
70.2 |
|||||||||
Total liabilities |
838.5 |
765.4 |
644.4 |
|||||||||
Equity |
||||||||||||
White Mountains's common shareholder's equity |
||||||||||||
White Mountains's common shares and paid-in surplus |
596.3 |
593.2 |
584.0 |
|||||||||
Retained earnings |
2,672.4 |
2,611.5 |
2,264.9 |
|||||||||
Accumulated other comprehensive loss, after tax: |
||||||||||||
Net unrealized foreign currency translation losses and interest rate |
(7.2) |
(11.3) |
(5.8) |
|||||||||
Total White Mountains's common shareholders' equity |
3,261.5 |
3,193.4 |
2,843.1 |
|||||||||
Non-controlling interests |
(116.8) |
(122.5) |
(124.9) |
|||||||||
Total equity |
3,144.7 |
3,070.9 |
2,718.2 |
|||||||||
Total liabilities and equity |
$ |
3,983.2 |
$ |
3,836.3 |
$ |
3,362.6 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||
BOOK VALUE AND ADJUSTED BOOK VALUE PER SHARE |
||||||||||||||||
(Unaudited) |
||||||||||||||||
December 31, |
September 30, |
December 31, |
September 30, |
|||||||||||||
Book value per share numerators (in millions): |
||||||||||||||||
White Mountains's common shareholders' equity - |
$ |
3,261.5 |
$ |
3,193.4 |
$ |
2,843.1 |
$ |
2,984.0 |
||||||||
Time value of money discount on expected future payments on the |
(151.6) |
(132.8) |
(141.2) |
(146.3) |
||||||||||||
HG Global's unearned premium reserve (1) |
156.7 |
160.4 |
136.9 |
120.2 |
||||||||||||
HG Global's net deferred acquisition costs (1) |
(41.5) |
(42.0) |
(34.6) |
(29.4) |
||||||||||||
Adjusted book value per share numerator |
$ |
3,225.1 |
$ |
3,179.0 |
$ |
2,804.2 |
$ |
2,928.5 |
||||||||
Book value per share denominators (in thousands of shares): |
||||||||||||||||
Common shares outstanding - GAAP book value per share |
3,185.4 |
3,185.4 |
3,173.1 |
3,180.5 |
||||||||||||
Unearned restricted common shares |
(18.5) |
(21.5) |
(14.6) |
(18.5) |
||||||||||||
Adjusted book value per share denominator |
3,166.9 |
3,163.9 |
3,158.5 |
3,162.0 |
||||||||||||
GAAP book value per share |
$ |
1,023.91 |
$ |
1,002.53 |
$ |
896.00 |
$ |
938.19 |
||||||||
Adjusted book value per share |
$ |
1,018.41 |
$ |
1,004.76 |
$ |
887.85 |
$ |
926.14 |
||||||||
(1) Amount reflects White Mountains's preferred share ownership in HG Global of 96.9%. |
||||||||||||||||
December 31, |
September 30, |
December 31, |
September 30, |
|||||||||||||
Quarter-to-date change in GAAP book value per share, |
2.1 |
% |
1.6 |
% |
(4.5) |
% |
1.5 |
% |
||||||||
Quarter-to-date change in adjusted book value per share, |
1.4 |
% |
1.9 |
% |
(4.1) |
% |
1.5 |
% |
||||||||
Year-to-date change in GAAP book value per share, |
14.4 |
% |
12.0 |
% |
(3.7) |
% |
0.8 |
% |
||||||||
Year-to-date change in adjusted book value per share, |
14.8 |
% |
13.3 |
% |
(2.8) |
% |
1.4 |
% |
||||||||
Year-to-date dividends per share |
$ |
1.00 |
$ |
1.00 |
$ |
1.00 |
$ |
1.00 |
||||||||
December 31, |
September 30, |
December 31, |
September 30, |
|||||||||||||
Summary of goodwill and other intangible assets (in millions): |
||||||||||||||||
Goodwill: |
||||||||||||||||
NSM |
$ |
381.6 |
$ |
397.0 |
(1) |
$ |
354.3 |
(2) |
$ |
295.5 |
||||||
Kudu |
7.6 |
7.6 |
— |
— |
||||||||||||
MediaAlpha |
— |
— |
18.3 |
18.3 |
||||||||||||
Other Operations |
5.5 |
20.2 |
(1) |
7.3 |
7.6 |
|||||||||||
Total goodwill |
394.7 |
424.8 |
379.9 |
321.4 |
||||||||||||
Other intangible assets: |
||||||||||||||||
NSM |
241.4 |
233.6 |
(1) |
131.9 |
(2) |
135.5 |
||||||||||
Kudu |
2.0 |
2.0 |
— |
— |
||||||||||||
MediaAlpha |
— |
— |
25.1 |
27.6 |
||||||||||||
Other Operations |
16.6 |
.5 |
(1) |
.6 |
.7 |
|||||||||||
Total other intangible assets |
260.0 |
236.1 |
157.6 |
163.8 |
||||||||||||
Total goodwill and other intangible assets |
654.7 |
660.9 |
537.5 |
485.2 |
||||||||||||
Goodwill and other intangible assets attributed to |
(23.4) |
(25.0) |
(40.6) |
(40.6) |
||||||||||||
Goodwill and other intangible assets included in |
$ |
631.3 |
$ |
635.9 |
$ |
496.9 |
$ |
444.6 |
||||||||
(1) The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisition of Embrace and Other Operations had not yet been finalized at September 30, 2019. |
||||||||||||||||
(2) The relative fair values of goodwill and of other intangible assets recognized in connection with the acquisition of KBK had not yet been finalized at December 31, 2018. |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(millions) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Revenues: |
||||||||||||||||
Financial Guarantee (HG Global/BAM) |
||||||||||||||||
Earned insurance premiums |
$ |
2.6 |
$ |
4.2 |
$ |
16.3 |
$ |
13.9 |
||||||||
Net investment income |
5.5 |
4.2 |
21.6 |
16.7 |
||||||||||||
Net realized and unrealized investment (losses) gains |
(3.3) |
6.9 |
27.1 |
(7.5) |
||||||||||||
Other revenues |
.3 |
.4 |
1.6 |
1.2 |
||||||||||||
Total Financial Guarantee revenues |
5.1 |
15.7 |
66.6 |
24.3 |
||||||||||||
Specialty Insurance Distribution (NSM) |
||||||||||||||||
Commission revenues |
45.8 |
33.2 |
193.4 |
89.6 |
||||||||||||
Other revenues |
12.0 |
5.2 |
39.7 |
12.0 |
||||||||||||
Total Specialty Insurance Distribution revenues |
57.8 |
38.4 |
233.1 |
101.6 |
||||||||||||
Global Asset and Wealth Management (Kudu) |
||||||||||||||||
Net investment income |
6.1 |
— |
14.7 |
— |
||||||||||||
Net realized and unrealized investment gains |
3.2 |
— |
6.3 |
— |
||||||||||||
Other revenues |
— |
— |
.2 |
— |
||||||||||||
Total Global Asset and Wealth Management revenues |
9.3 |
— |
21.2 |
— |
||||||||||||
Marketing Technology (MediaAlpha) |
||||||||||||||||
Advertising and commission revenues |
— |
79.1 |
48.8 |
295.5 |
||||||||||||
Other revenues |
— |
— |
— |
1.6 |
||||||||||||
Total Marketing Technology revenues |
— |
79.1 |
48.8 |
297.1 |
||||||||||||
Other Operations |
||||||||||||||||
Net investment income |
12.7 |
9.9 |
43.4 |
42.3 |
||||||||||||
Net realized and unrealized investment gains (losses) |
85.5 |
(138.1) |
285.1 |
(100.8) |
||||||||||||
Realized gain and unrealized investment gain from the |
— |
— |
182.2 |
— |
||||||||||||
Advertising and commission revenues |
2.4 |
1.1 |
6.9 |
4.1 |
||||||||||||
Other revenues |
2.5 |
(.1) |
6.1 |
.5 |
||||||||||||
Total Other Operations revenues |
103.1 |
(127.2) |
523.7 |
(53.9) |
||||||||||||
Total revenues |
$ |
175.3 |
$ |
6.0 |
$ |
893.4 |
$ |
369.1 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) |
||||||||||||||||
(millions) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Expenses: |
||||||||||||||||
Financial Guarantee (HG Global/BAM) |
||||||||||||||||
Insurance acquisition expenses |
$ |
1.6 |
$ |
1.4 |
$ |
5.7 |
$ |
5.3 |
||||||||
Other underwriting expenses |
.1 |
.1 |
.4 |
.4 |
||||||||||||
General and administrative expenses |
11.4 |
11.5 |
50.5 |
48.0 |
||||||||||||
Total Financial Guarantee expenses |
13.1 |
13.0 |
56.6 |
53.7 |
||||||||||||
Specialty Insurance Distribution (NSM) |
||||||||||||||||
General and administrative expenses |
40.8 |
23.7 |
132.2 |
59.4 |
||||||||||||
Broker commission expenses |
15.9 |
11.3 |
64.8 |
28.4 |
||||||||||||
Change in fair value of contingent consideration earnout liabilities |
(3.5) |
.1 |
2.1 |
2.7 |
||||||||||||
Amortization of other intangible assets |
5.9 |
3.3 |
19.4 |
8.3 |
||||||||||||
Interest expense |
4.5 |
3.2 |
16.7 |
8.0 |
||||||||||||
Total Specialty Insurance Distribution expenses |
63.6 |
41.6 |
235.2 |
106.8 |
||||||||||||
Global Asset and Wealth Management (Kudu) |
||||||||||||||||
General and administrative expenses |
3.4 |
— |
10.1 |
— |
||||||||||||
Amortization of other intangible assets |
— |
— |
.2 |
— |
||||||||||||
Interest expense |
.1 |
— |
.1 |
— |
||||||||||||
Total Global Asset and Wealth Management expenses |
3.5 |
— |
10.4 |
— |
||||||||||||
Marketing Technology (MediaAlpha) |
||||||||||||||||
Cost of sales |
— |
65.9 |
40.6 |
245.0 |
||||||||||||
General and administrative expenses |
— |
10.5 |
12.5 |
31.7 |
||||||||||||
Amortization of other intangible assets |
— |
2.5 |
1.6 |
10.3 |
||||||||||||
Interest expense |
— |
.3 |
.2 |
1.2 |
||||||||||||
Total Marketing Technology expenses |
— |
79.2 |
54.9 |
288.2 |
||||||||||||
Other Operations |
||||||||||||||||
Cost of sales |
2.5 |
.8 |
7.5 |
3.7 |
||||||||||||
General and administrative expenses |
35.3 |
15.4 |
122.5 |
94.4 |
||||||||||||
Amortization of other intangible assets |
.5 |
.1 |
.6 |
.2 |
||||||||||||
Interest expense |
.3 |
— |
.6 |
.3 |
||||||||||||
Total Other Operations expenses |
38.6 |
16.3 |
131.2 |
98.6 |
||||||||||||
Total expenses |
118.8 |
150.1 |
488.3 |
547.3 |
||||||||||||
Pre-tax income (loss) from continuing operations |
56.5 |
(144.1) |
405.1 |
(178.2) |
||||||||||||
Income tax (expense) benefit |
(10.4) |
3.6 |
(29.3) |
4.0 |
||||||||||||
Net income (loss) from continuing operations |
46.1 |
(140.5) |
375.8 |
(174.2) |
||||||||||||
Net (loss) gain from sale of discontinued operations, net of tax |
(.8) |
— |
.8 |
(17.2) |
||||||||||||
Net income (loss) |
45.3 |
(140.5) |
376.6 |
(191.4) |
||||||||||||
Net loss attributable to non-controlling interests |
15.6 |
3.0 |
37.9 |
50.2 |
||||||||||||
Net income (loss) attributable to White Mountains's |
$ |
60.9 |
$ |
(137.5) |
$ |
414.5 |
$ |
(141.2) |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||||||||||
(millions) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Net income (loss) attributable to White Mountains's |
$ |
60.9 |
$ |
(137.5) |
$ |
414.5 |
$ |
(141.2) |
||||||||
Other comprehensive income (loss), net of tax |
4.4 |
(3.1) |
(1.4) |
(4.8) |
||||||||||||
Comprehensive income (loss) |
65.3 |
(140.6) |
413.1 |
(146.0) |
||||||||||||
Other comprehensive (income) loss attributable to non-controlling interests |
(.3) |
.1 |
— |
.3 |
||||||||||||
Comprehensive income (loss) attributable to White Mountains's |
$ |
65.0 |
$ |
(140.5) |
$ |
413.1 |
$ |
(145.7) |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||
EARNINGS PER SHARE |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Income (loss) per share attributable to White Mountains's common |
Three Months Ended |
Twelve Months Ended |
||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Basic earnings (loss) per share |
||||||||||||||||
Continuing operations |
$ |
19.37 |
$ |
(43.24) |
$ |
130.02 |
$ |
(36.67) |
||||||||
Discontinued operations |
(.25) |
— |
.25 |
(5.09) |
||||||||||||
Total consolidated operations |
$ |
19.12 |
$ |
(43.24) |
$ |
130.27 |
$ |
(41.76) |
||||||||
Diluted earnings (loss) per share |
||||||||||||||||
Continuing operations |
$ |
19.37 |
$ |
(43.24) |
$ |
130.02 |
$ |
(36.67) |
||||||||
Discontinued operations |
(.25) |
— |
.25 |
(5.09) |
||||||||||||
Total consolidated operations |
$ |
19.12 |
$ |
(43.24) |
$ |
130.27 |
$ |
(41.76) |
||||||||
Dividends declared per White Mountains's common share |
$ |
— |
$ |
— |
$ |
1.00 |
$ |
1.00 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||||||||||
QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) |
||||||||||||||||||||||||
(millions) |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
For the Three Months Ended December 31, 2019 |
HG Global/BAM |
|||||||||||||||||||||||
HG Global |
BAM |
NSM |
Kudu |
Other |
Total |
|||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Earned insurance premiums |
$ |
2.1 |
$ |
.5 |
$ |
— |
$ |
— |
$ |
— |
$ |
2.6 |
||||||||||||
Net investment income |
1.9 |
3.6 |
— |
6.1 |
12.7 |
24.3 |
||||||||||||||||||
Net investment income (expense) - |
6.8 |
(6.8) |
— |
— |
— |
— |
||||||||||||||||||
Net realized and unrealized investment (loss) gains |
(.1) |
(3.2) |
— |
3.2 |
85.5 |
85.4 |
||||||||||||||||||
Advertising and commission revenues |
— |
— |
45.8 |
— |
2.4 |
48.2 |
||||||||||||||||||
Other revenues |
— |
.3 |
12.0 |
— |
2.5 |
14.8 |
||||||||||||||||||
Total revenues |
10.7 |
(5.6) |
57.8 |
9.3 |
103.1 |
175.3 |
||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Insurance acquisition expenses |
.5 |
1.1 |
— |
— |
— |
1.6 |
||||||||||||||||||
Other underwriting expenses |
— |
.1 |
— |
— |
— |
.1 |
||||||||||||||||||
Cost of sales |
— |
— |
— |
— |
2.5 |
2.5 |
||||||||||||||||||
General and administrative expenses |
.4 |
11.0 |
40.8 |
3.4 |
35.3 |
90.9 |
||||||||||||||||||
Broker commission expenses |
— |
— |
15.9 |
— |
— |
15.9 |
||||||||||||||||||
Change in fair value of contingent consideration |
— |
— |
(3.5) |
— |
— |
(3.5) |
||||||||||||||||||
Amortization of other intangible assets |
— |
— |
5.9 |
— |
.5 |
6.4 |
||||||||||||||||||
Interest expense |
— |
— |
4.5 |
.1 |
.3 |
4.9 |
||||||||||||||||||
Total expenses |
.9 |
12.2 |
63.6 |
3.5 |
38.6 |
118.8 |
||||||||||||||||||
Pre-tax income (loss) |
$ |
9.8 |
$ |
(17.8) |
$ |
(5.8) |
$ |
5.8 |
$ |
64.5 |
$ |
56.5 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||||||||||
QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED) |
||||||||||||||||||||||||
(millions) |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
For the Three Months Ended December 31, 2018 |
HG Global/BAM |
|||||||||||||||||||||||
HG Global |
BAM |
NSM |
MediaAlpha |
Other |
Total |
|||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Earned insurance premiums |
$ |
3.4 |
.8 |
$ |
— |
$ |
— |
$ |
— |
$ |
4.2 |
|||||||||||||
Net investment income |
1.6 |
2.6 |
— |
— |
9.9 |
14.1 |
||||||||||||||||||
Net investment income (expense) - |
5.7 |
(5.7) |
— |
— |
— |
— |
||||||||||||||||||
Net realized and unrealized investment gains (losses) |
1.4 |
5.5 |
— |
— |
(138.1) |
(131.2) |
||||||||||||||||||
Advertising and commission revenues |
— |
— |
33.2 |
79.1 |
1.1 |
113.4 |
||||||||||||||||||
Other revenues |
— |
.4 |
5.2 |
— |
(.1) |
5.5 |
||||||||||||||||||
Total revenues |
12.1 |
3.6 |
38.4 |
79.1 |
(127.2) |
6.0 |
||||||||||||||||||
Expenses: |
||||||||||||||||||||||||
Insurance acquisition expenses |
.9 |
.5 |
— |
— |
— |
1.4 |
||||||||||||||||||
Other underwriting expenses |
— |
.1 |
— |
— |
— |
.1 |
||||||||||||||||||
Cost of sales |
— |
— |
— |
65.9 |
.8 |
66.7 |
||||||||||||||||||
General and administrative expenses |
.3 |
11.2 |
23.7 |
10.5 |
15.4 |
61.1 |
||||||||||||||||||
Broker commission expenses |
— |
— |
11.3 |
— |
— |
11.3 |
||||||||||||||||||
Change in fair value of contingent consideration |
— |
— |
.1 |
— |
— |
.1 |
||||||||||||||||||
Amortization of other intangible assets |
— |
— |
3.3 |
2.5 |
.1 |
5.9 |
||||||||||||||||||
Interest expense |
— |
— |
3.2 |
.3 |
— |
3.5 |
||||||||||||||||||
Total expenses |
1.2 |
11.8 |
41.6 |
79.2 |
16.3 |
150.1 |
||||||||||||||||||
Pre-tax income (loss) |
$ |
10.9 |
$ |
(8.2) |
$ |
(3.2) |
$ |
(.1) |
$ |
(143.5) |
$ |
(144.1) |
||||||||||||
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||||||||||||||
YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) |
||||||||||||||||||||||||||||
(millions) |
||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||
For the Twelve Months Ended December 31, 2019 |
HG Global/BAM |
|||||||||||||||||||||||||||
HG Global |
BAM |
NSM |
Kudu (1) |
MediaAlpha (2) |
Other |
Total |
||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||
Earned insurance premiums |
$ |
13.1 |
$ |
3.2 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
16.3 |
||||||||||||||
Net investment income |
7.5 |
14.1 |
— |
14.7 |
— |
43.4 |
79.7 |
|||||||||||||||||||||
Net investment income (expense) - |
27.4 |
(27.4) |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Net realized and unrealized |
11.0 |
16.1 |
— |
6.3 |
— |
285.1 |
318.5 |
|||||||||||||||||||||
Realized and unrealized gains from |
— |
— |
— |
— |
— |
182.2 |
182.2 |
|||||||||||||||||||||
Advertising and commission revenues |
— |
— |
193.4 |
— |
48.8 |
6.9 |
249.1 |
|||||||||||||||||||||
Other revenue |
— |
1.6 |
39.7 |
.2 |
— |
6.1 |
47.6 |
|||||||||||||||||||||
Total revenues |
59.0 |
7.6 |
233.1 |
21.2 |
48.8 |
523.7 |
893.4 |
|||||||||||||||||||||
Expenses: |
||||||||||||||||||||||||||||
Insurance acquisition expenses |
3.3 |
2.4 |
— |
— |
— |
— |
5.7 |
|||||||||||||||||||||
Other underwriting expenses |
— |
.4 |
— |
— |
— |
— |
.4 |
|||||||||||||||||||||
Cost of sales |
— |
— |
— |
— |
40.6 |
7.5 |
48.1 |
|||||||||||||||||||||
General and administrative expenses |
1.6 |
48.9 |
132.2 |
10.1 |
5.7 |
122.5 |
321.0 |
|||||||||||||||||||||
General and administrative expenses - |
— |
— |
— |
— |
6.8 |
— |
6.8 |
|||||||||||||||||||||
Broker commission expenses |
— |
— |
64.8 |
— |
— |
— |
64.8 |
|||||||||||||||||||||
Change in fair value of contingent |
— |
— |
2.1 |
— |
— |
— |
2.1 |
|||||||||||||||||||||
Amortization of other intangible assets |
— |
— |
19.4 |
.2 |
1.6 |
.6 |
21.8 |
|||||||||||||||||||||
Interest expense |
— |
— |
16.7 |
.1 |
.2 |
.6 |
17.6 |
|||||||||||||||||||||
Total expenses |
4.9 |
51.7 |
235.2 |
10.4 |
54.9 |
131.2 |
488.3 |
|||||||||||||||||||||
Pre-tax income (loss) |
$ |
54.1 |
$ |
(44.1) |
$ |
(2.1) |
$ |
10.8 |
$ |
(6.1) |
$ |
392.5 |
$ |
405.1 |
||||||||||||||
(1) Kudu's results are from April 4, 2019, the date White Mountains began consolidating Kudu, to December 31, 2019. |
||||||||||||||||||||||||||||
(2) MediaAlpha's results are from January 1, 2019 to February 26, 2019, the date of the MediaAlpha Transaction. |
WHITE MOUNTAINS INSURANCE GROUP, LTD. |
||||||||||||||||||||||||
YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED) |
||||||||||||||||||||||||
(millions) |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
For the Twelve Months Ended December 31, 2018 |
HG Global/BAM |
|||||||||||||||||||||||
HG Global |
BAM |
NSM (1) |
MediaAlpha |
Other |
Total |
|||||||||||||||||||
Revenues: |
& |