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White Mountains Reports Second Quarter Results

August 7, 2024 at 8:00 AM EDT

HAMILTON, Bermuda, Aug. 7, 2024 /PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) reported book value per share of $1,722 and adjusted book value per share of $1,777 as of June 30, 2024.  Book value per share and adjusted book value per share both decreased 1% in the second quarter of 2024 and increased 4% in the first six months of 2024, including dividends. 

Manning Rountree, CEO, commented, "ABVPS was down 1% in the quarter, due primarily to our investment in MediaAlpha.  Excluding MediaAlpha, ABVPS was up 2%, driven by solid results at our operating companies and good investment returns.  Ark produced an 89% combined ratio and $697 million of gross written premiums in the quarter, up 15% year-over-year.  BAM generated $28 million of total gross written premiums and member surplus contributions in the quarter, up 7% year-over-year due to strong primary market volume. At Kudu, trailing 12 months adjusted EBITDA increased, while the value of the continuing portfolio grew 7%.  Bamboo had another strong quarter, once again tripling managed premiums year-over-year and growing adjusted EBITDA.  MediaAlpha's share price declined 35% in the quarter, producing a $139 million loss.  Excluding MediaAlpha, investment returns were good on an absolute and relative basis.  Undeployed capital now stands at roughly $650 million." 

Comprehensive income (loss) attributable to common shareholders was $(55) million and $182 million in the second quarter and first six months of 2024 compared to $21 million and $201 million in the second quarter and first six months of 2023.  Results in the second quarter and first six months of 2024 included $(139) million and $72 million of net realized and unrealized investment gains (losses) from White Mountains's investment in MediaAlpha compared to $(77) million and $8 million of unrealized investment gains (losses) in the second quarter and first six months of 2023. 

Ark/WM Outrigger

The Ark/WM Outrigger segment's combined ratio was 87% and 89% in the second quarter and first six months of 2024 compared to 87% and 89% in the second quarter and first six months of 2023.  Ark/WM Outrigger reported gross written premiums of $697 million and $1,569 million, net written premiums of $503 million and $1,101 million and net earned premiums of $318 million and $621 million in the second quarter and first six months of 2024 compared to gross written premiums of $606 million and $1,416 million, net written premiums of $461 million and $1,075 million and net earned premiums of $293 million and $548 million in the second quarter and first six months of 2023. 

Ark's combined ratio was 89% and 91% in the second quarter and first six months of 2024 compared to 89% and 91% in the second quarter and first six months of 2023.  Ark's combined ratio in the second quarter and first six months of 2024 included minimal catastrophe losses compared to five points and three points of catastrophe losses in the second quarter and first six months of 2023.  Non-catastrophe losses in the second quarter of 2024 included $19 million related to a political risk claim, $14 million related to tornado damage in Oklahoma and $13 million related to two satellite losses, all on a net basis.  Ark's combined ratio in the second quarter and first six months of 2024 included two points and one point of net favorable prior year development, primarily due to property lines of business, compared to four points of net unfavorable prior year development in both the second quarter and first six months of 2023, primarily due to Winter Storm Elliott and three large claims in the property and marine & energy lines of business. 

Ark reported gross written premiums of $697 million and $1,569 million, net written premiums of $464 million and $1,028 million and net earned premiums of $311 million and $603 million in the second quarter and first six months of 2024 compared to gross written premiums of $606 million and $1,416 million, net written premiums of $403 million and $973 million and net earned premiums of $284 million and $534 million in the second quarter and first six months of 2023. 

Ark reported pre-tax income of $50 million and $83 million in the second quarter and first six months of 2024 compared to $42 million and $78 million in the second quarter and first six months of 2023.  Ark's results included net realized and unrealized investment gains of $20 million and $31 million in the second quarter and first six months of 2024 compared to $18 million and $43 million in the second quarter and first six months of 2023.

Ian Beaton, CEO of Ark, said, "We are off to a good start through the first half of 2024.  Ark's combined ratio was 89% for the second quarter and 91% year to date, both in line with prior year.  Gross written premiums were up 15% over prior year in the quarter.  Risk adjusted rate change was flat overall.  We are seeing good growth in select lines of business, including Marine & Energy and Accident & Health, and in new product classes."

WM Outrigger Re's combined ratio was 27% and 30% in the second quarter and first six months of 2024 compared to 25% and 24% in the second quarter and first six months of 2023.  Catastrophe losses were minimal in all periods.  WM Outrigger Re reported gross and net written premiums of $39 million and $73 million and net earned premiums of $8 million and $18 million in the second quarter and first six months of 2024 compared to gross and net written premiums of $58 million and $102 million and net earned premiums of $10 million and $15 million in the second quarter and first six months of 2023.  Gross and net written premiums decreased due to White Mountains's lower capital commitment to WM Outrigger Re in 2024.  WM Outrigger Re reported pre-tax income of $8 million and $18 million in the second quarter and first six months of 2024 compared to $10 million and $16 million in the second quarter and first six months of 2023.

HG Global/BAM

BAM's gross written premiums and member surplus contributions (MSC) collected were $28 million and $50 million in the second quarter and first six months of 2024 compared to $26 million and $47 million in the second quarter and first six months of 2023.  BAM insured municipal bonds with par value of $5.3 billion and $8.8 billion in the second quarter and first six months of 2024 compared to $3.4 billion and $6.3 billion in the second quarter and first six months of 2023.  Total pricing was 54 and 57 basis points in the second quarter and first six months of 2024 compared to 77 and 75 basis points in the second quarter and first six months of 2023.  BAM's total claims paying resources were $1,525 million as of June 30, 2024 compared to $1,501 million as of December 31, 2023 and $1,451 million as of June 30, 2023.  On May 29, 2024, S&P Global Ratings affirmed BAM's AA rating and Stable outlook.

Seán McCarthy, CEO of BAM, said, "BAM had a solid quarter and first half.  Primary market par insured totaled $7.9 billion for the first half, up 55% from 2023 and a record result.  This included 18 transactions of $100 million or more, reflecting strong demand from retail and institutional buyers in the primary market.  Total pricing decreased year-over-year, in part because of the volume of large, higher-credit issuance.  Secondary market activity was up 20% year-over-year in the quarter, as heightened interest rate volatility created opportunities."

HG Global reported pre-tax income of $11 million and $17 million in the second quarter and first six months of 2024 compared to $7 million and $24 million in the second quarter and first six months of 2023.  HG Global's results included net realized and unrealized investment gains (losses) of $(2) million and $(9) million in the second quarter and first six months of 2024 compared to $(6) million and $2 million in the second quarter and first six months of 2023, driven by the movement of interest rates.

White Mountains reported pre-tax loss related to BAM of $19 million and $40 million in the second quarter and first six months of 2024 compared to $20 million and $29 million in the second quarter and first six months of 2023.  BAM's results included net realized and unrealized investment gains (losses) of $(2) million and $(5) million in the second quarter and first six months of 2024 compared to $(4) million and $5 million in the second quarter and first six months of 2023, driven by the movement of interest rates.

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 noncontrolling interests. 

Kudu

Kudu reported total revenues of $70 million, pre-tax income of $61 million and adjusted EBITDA of $12 million in the second quarter of 2024 compared to total revenues of $19 million, pre-tax income of $10 million and adjusted EBITDA of $12 million in the second quarter of 2023.  Total revenues, pre-tax income and adjusted EBITDA included $16 million of net investment income in the second quarter of 2024 compared to $15 million in the second quarter of 2023.  Total revenues and pre-tax income also included $55 million of net realized and unrealized investment gains in the second quarter of 2024 compared to $5 million in the second quarter of 2023.

Kudu reported total revenues of $81 million, pre-tax income of $63 million and adjusted EBITDA of $26 million in the first six months of 2024 compared to total revenues of $63 million, pre-tax income of $45 million and adjusted EBITDA of $23 million in the first six months of 2023.  Total revenues, pre-tax income and adjusted EBITDA included $33 million of net investment income in the first six months of 2024 compared to $29 million in the first six months of 2023.  Total revenues and pre-tax income also included $48 million of net realized and unrealized investment gains in the first six months of 2024 compared to $34 million in the first six months of 2023.

Rob Jakacki, CEO of Kudu, said, "We had a good quarter.  Trailing 12 months adjusted EBITDA increased to $60 million, while the fair value of our continuing portfolio grew 7%.  Kudu's portfolio continues to perform well, and we have robust dry powder and deployment opportunities heading into the second half of 2024."

Bamboo

Bamboo reported commission and fee revenues of $33 million and $55 million and pre-tax income of $6 million and $7 million for the second quarter and first six months of 2024.  Bamboo reported MGA pre-tax income of $6 million and $7 million and MGA adjusted EBITDA of $12 million and $18 million for the second quarter and first six months of 2024. 

Managed premiums, which represent the total premiums placed by Bamboo, were $120 million and $209 million for the second quarter and first six months of 2024 compared to $41 million and $69 million for the second quarter and first six months of 2023.  The increase in managed premiums was driven primarily by growth in new business volume as well as a growing renewal book.

John Chu, CEO of Bamboo, said, "Bamboo delivered a strong second quarter, achieving new highs for managed premiums and earnings.  Managed premiums tripled year-over-year to $120 million, and MGA Adjusted EBITDA increased to a record $12 million.  Growth was driven by continued strong new business volume and an expanding renewal book.  We see continuing opportunities to drive robust, profitable growth."

MediaAlpha 

On May 10, 2024, MediaAlpha completed a secondary offering of 7.6 million shares at $19.00 per share ($18.24 per share net of underwriting fees).  In the secondary offering, White Mountains sold 5.0 million shares for net proceeds of $91 million.  Following the completion of the offering, White Mountains owns 17.9 million shares of MediaAlpha, representing a 27% basic ownership interest (25% on a fully-diluted/fully-converted basis). 

As of June 30, 2024, MediaAlpha's share price was $13.17 per share, which decreased from $20.37 per share as of March 31, 2024.  The carrying value of White Mountains's investment in MediaAlpha was $235 million as of June 30, 2024 compared to $466 million at March 31, 2024.  The $231 million decline in MediaAlpha's carrying value resulted from $139 million of net realized and unrealized losses in the quarter and $91 million of net proceeds received from the secondary offering.  At our current level of ownership, each $1.00 per share increase or decrease in the share price of MediaAlpha will result in an approximate $7.00 per share increase or decrease in White Mountains's book value per share and adjusted book value per share.  We encourage you to read MediaAlpha's second quarter earnings release and related shareholder letter, which is available on MediaAlpha's investor relations website at www.investors.mediaalpha.com.

Other Operations

White Mountains's Other Operations reported pre-tax income (loss) of $(153) million and $49 million in the second quarter and first six months of 2024 compared to $(31) million and $82 million in the second quarter and first six months of 2023.  Net realized and unrealized investment gains (losses) from White Mountains's investment in MediaAlpha were $(139) million and $72 million in the second quarter and first six months of 2024 compared to $(77) million and $8 million in the second quarter and first six months of 2023.  Excluding MediaAlpha, net realized and unrealized investment gains were $9 million and $31 million in the second quarter and first six months of 2024 compared to $76 million and $118 million in the second quarter and first six months of 2023.  Net investment income was $8 million and $18 million in the second quarter and first six months of 2024 compared to $7 million and $14 million in the second quarter and first six months of 2023.  White Mountains's Other Operations reported general and administrative expenses of $43 million and $94 million in the second quarter and first six months of 2024 compared to $49 million and $89 million in the second quarter and first six months of 2023.

Investments  

The total consolidated portfolio return was -0.1% in the second quarter of 2024.  Excluding MediaAlpha, the total consolidated portfolio return was 2.2% in the second quarter of 2024.  The total consolidated portfolio return was 0.9% in the second quarter of 2023.  Excluding MediaAlpha, the total consolidated portfolio return was 3.0% in the second quarter of 2023.

The total consolidated portfolio return was 4.5% in the first six months of 2024. Excluding MediaAlpha, the total consolidated portfolio return was 3.5% in the first six months of 2024.  The total consolidated portfolio return was 5.5% in the first six months of 2023.  Excluding MediaAlpha, the total consolidated portfolio return was 6.1% in the first six months of 2023.

Mark Plourde, President of White Mountains Advisors, said, "Excluding MediaAlpha, the total portfolio was up 2.2% in the quarter, a good result on both an absolute and relative basis.  Our short duration fixed income portfolio returned 1.0%, ahead of the BBIA Index return of 0.5%.  The equity portfolio, excluding MediaAlpha, returned 3.9%, slightly behind the S&P 500 Index return of 4.3%."

Share Repurchases

White Mountains did not repurchase any of its common shares in the second quarter of 2024.  In the first six months of 2024, White Mountains repurchased and retired 5,269 of its common shares for $8 million at an average share price of $1,505.01, or 85% of White Mountains's adjusted book value per share as of June 30, 2024.

In the second quarter of 2023, White Mountains repurchased and retired 5,542 of its common shares for $7 million at an average share price of $1,336.68, or 85% of White Mountains's adjusted book value per share as of June 30, 2023.  In the first six months of 2023, White Mountains repurchased and retired 24,165 of its common shares for $33 million at an average share price of $1,354.88, or 86% of White Mountains's adjusted book value per share as of June 30, 2023.

Additional Information

White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange under the symbol WTM and the Bermuda Stock Exchange under the symbol WTM.BH.  Additional financial information and other items of interest are available at the Company's website located at www.whitemountains.com.  White Mountains expects to file its Form 10-Q today with the Securities and Exchange Commission and urges shareholders to refer to that document for more complete information concerning its financial results.

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(millions)

(Unaudited)

 
   

June 30, 2024

 

December 31, 2023

 

June 30, 2023

Assets

           

P&C Insurance and Reinsurance (Ark/WM Outrigger)

           

Fixed maturity investments

 

$                    1,005.5

 

$                       866.8

 

$                       755.8

Common equity securities

 

422.3

 

400.6

 

382.6

Short-term investments

 

904.5

 

962.8

 

640.3

Other long-term investments

 

491.3

 

440.9

 

410.7

Total investments

 

2,823.6

 

2,671.1

 

2,189.4

       Cash (restricted $3.6, $0.7, $2.1)

 

156.3

 

90.5

 

101.7

Reinsurance recoverables

 

863.8

 

442.0

 

669.7

Insurance premiums receivable

 

1,175.4

 

612.2

 

1,077.2

Deferred acquisition costs

 

245.3

 

145.3

 

232.1

Goodwill and other intangible assets

 

292.5

 

292.5

 

292.5

Other assets

 

147.0

 

125.0

 

69.4

Total P&C Insurance and Reinsurance assets

 

5,703.9

 

4,378.6

 

4,632.0

Financial Guarantee (HG Global/BAM)

           

Fixed maturity investments

 

1,039.4

 

1,012.3

 

932.9

Short-term investments

 

51.3

 

70.6

 

67.5

Total investments

 

1,090.7

 

1,082.9

 

1,000.4

Cash

 

5.0

 

6.7

 

2.9

Insurance premiums receivable

 

6.4

 

5.5

 

6.4

Deferred acquisition costs

 

41.7

 

40.1

 

37.4

Other assets

 

36.3

 

36.8

 

25.3

Total Financial Guarantee assets

 

1,180.1

 

1,172.0

 

1,072.4

Asset Management (Kudu)

           

Short-term investments

 

37.6

 

29.3

 

4.1

Other long-term investments

 

907.1

 

896.3

 

737.1

Total investments

 

944.7

 

925.6

 

741.2

Cash (restricted $0.0, $0.0, $13.4)

 

1.1

 

1.4

 

25.0

Accrued investment income

 

15.1

 

17.6

 

13.1

Goodwill and other intangible assets

 

8.1

 

8.3

 

8.4

Other assets

 

35.4

 

6.5

 

10.0

Total Asset Management assets

 

1,004.4

 

959.4

 

797.7

P&C Insurance Distribution (Bamboo)

           

Fixed maturity investments

 

33.2

 

 

Short-term investments

 

19.8

 

 

Total investments

 

53.0

 

 

Cash (restricted $60.5, $0.0, $0.0)

 

68.9

 

 

Premiums, commissions and fees receivable

 

58.0

 

 

Goodwill and other intangible assets

 

363.0

 

 

Other assets

 

18.8

 

 

Total P&C Insurance Distribution assets

 

561.7

 

 

   Other Operations

           

Fixed maturity investments

 

266.7

 

230.2

 

252.0

Common equity securities

 

208.5

 

137.8

 

272.5

Investment in MediaAlpha

 

235.2

 

254.9

 

235.7

Short-term investments

 

192.3

 

425.2

 

274.2

Other long-term investments

 

624.0

 

661.0

 

667.2

Total investments

 

1,526.7

 

1,709.1

 

1,701.6

Cash

 

23.9

 

23.8

 

24.9

Insurance premiums receivable

 

21.7

 

 

Goodwill and other intangible assets

 

67.4

 

69.8

 

72.7

Other assets

 

77.1

 

73.2

 

75.0

Total Other Operations assets

 

1,716.8

 

1,875.9

 

1,874.2

Total assets

 

$                   10,166.9

 

$                    8,385.9

 

$                    8,376.3

 

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(millions)

(Unaudited)

 
   

June 30, 2024

 

December 31, 2023

 

June 30, 2023

Liabilities

           

P&C Insurance and Reinsurance (Ark/WM Outrigger)

           

Loss and loss adjustment expense reserves

 

$                   1,890.1

 

$                   1,605.1

 

$                   1,421.0

Unearned insurance premiums

 

1,526.1

 

743.6

 

1,376.5

Debt

 

155.0

 

185.5

 

185.1

Reinsurance payable

 

367.3

 

81.1

 

247.0

Contingent consideration

 

107.3

 

94.0

 

45.1

Other liabilities

 

157.2

 

166.8

 

116.6

Total P&C Insurance and Reinsurance liabilities

 

4,203.0

 

2,876.1

 

3,391.3

Financial Guarantee (HG Global/BAM)

           

Unearned insurance premiums

 

333.2

 

325.8

 

303.7

Debt

 

147.2

 

146.9

 

146.7

Accrued incentive compensation

 

17.3

 

27.2

 

14.7

Other liabilities

 

34.8

 

31.8

 

34.6

Total Financial Guarantee liabilities

 

532.5

 

531.7

 

499.7

Asset Management (Kudu)

           

Debt

 

203.3

 

203.8

 

203.7

Other liabilities

 

67.9

 

71.6

 

51.0

Total Asset Management liabilities

 

271.2

 

275.4

 

254.7

P&C Insurance Distribution (Bamboo)

           

Loss and loss adjustment expense reserves

 

16.6

 

 

Unearned insurance premiums

 

23.6

 

 

Premiums and commissions payable

 

78.8

 

 

Other liabilities

 

28.2

 

 

Total P&C Insurance Distribution liabilities

 

147.2

 

 

   Other Operations

           

Loss and loss adjustment expense reserves

 

3.9

 

 

Unearned insurance premiums

 

22.6

 

 

Debt

 

24.7

 

28.4

 

30.6

Accrued incentive compensation

 

58.5

 

87.7

 

51.0

Other liabilities

 

31.1

 

25.0

 

23.1

Total Other Operations liabilities

 

140.8

 

141.1

 

104.7

Total liabilities

 

5,294.7

 

3,824.3

 

4,250.4

             

Equity

           

White Mountains's common shareholder's equity

           

  White Mountains's common shares and paid-in surplus

 

561.3

 

551.3

 

543.2

     Retained earnings

 

3,863.1

 

3,690.8

 

3,380.7

 Accumulated other comprehensive income (loss), after tax:

           

 Net unrealized gains (losses) from foreign currency translation

 

(1.8)

 

(1.6)

 

(1.7)

Total White Mountains's common shareholders' equity

 

4,422.6

 

4,240.5

 

3,922.2

Noncontrolling interests

 

449.6

 

321.1

 

203.7

Total equity

 

4,872.2

 

4,561.6

 

4,125.9

Total liabilities and equity

 

$                 10,166.9

 

$                   8,385.9

 

$                   8,376.3

 

WHITE MOUNTAINS INSURANCE GROUP, LTD.

BOOK VALUE AND ADJUSTED BOOK VALUE PER SHARE

(Unaudited)

 
   

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

June 30, 2023

Book value per share numerators (in millions):

               

White Mountains's common shareholders' equity -

   GAAP book value per share numerator

$           4,422.6

 

$           4,470.4

 

$           4,240.5

 

$           3,922.2

HG Global's unearned premium reserve (1)

 

271.7

 

267.7

 

265.4

 

246.8

HG Global's net deferred acquisition costs (1)

 

(78.5)

 

(77.3)

 

(76.5)

 

(70.7)

Time value of money discount on expected future payments on the

   BAM surplus notes (1)

 

(84.7)

 

(86.3)

 

(87.9)

 

(91.8)

Adjusted book value per share numerator

 

$           4,531.1

 

$           4,574.5

 

$           4,341.5

 

$           4,006.5

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

               

Common shares outstanding - GAAP book value per share

   denominator

 

2,568.3

 

2,565.7

 

2,560.5

 

2,560.5

Unearned restricted common shares

 

(18.3)

 

(20.3)

 

(12.4)

 

(19.1)

Adjusted book value per share denominator

 

2,550.0

 

2,545.4

 

2,548.1

 

2,541.4

GAAP book value per share

 

$         1,722.02

 

$         1,742.33

 

$         1,656.14

 

$         1,531.84

Adjusted book value per share

 

$         1,776.89

 

$         1,797.17

 

$         1,703.82

 

$         1,576.46

(1) Amount reflects White Mountains's preferred share ownership in HG Global of 96.9%.

                 
   

June 30, 2024

 

March 31, 2024

 

December 31, 2023

 

June 30, 2023

Quarter-to-date change in GAAP book value per share,

   including dividends:

 

(1.2) %

 

5.3 %

 

7.4 %

 

0.7 %

Quarter-to-date change in adjusted book value per share,

   including dividends:

 

(1.1) %

 

5.5 %

 

7.3 %

 

0.6 %

Year-to-date change in GAAP book value per share,

   including dividends:

 

4.0 %

 

5.3 %

 

13.8 %

 

5.2 %

Year-to-date change in adjusted book value per share,

   including dividends:

 

4.3 %

 

5.5 %

 

14.0 %

 

5.5 %

Year-to-date dividends per share

 

$               1.00

 

$               1.00

 

$               1.00

 

$               1.00

 

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(millions)

(Unaudited)

 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2024

 

2023

 

2024

 

2023

Revenues:

               

P&C Insurance and Reinsurance (Ark/WM Outrigger)

               

Earned insurance premiums

 

$              318.3

 

$              293.3

 

$              621.1

 

$              548.4

Net investment income

 

22.3

 

13.7

 

42.2

 

24.3

Net realized and unrealized investment gains (losses)

 

20.3

 

18.0

 

30.9

 

42.5

Other revenues

 

2.4

 

(2.0)

 

5.9

 

(4.7)

Total P&C Insurance and Reinsurance revenues

 

363.3

 

323.0

 

700.1

 

610.5

Financial Guarantee (HG Global/BAM)

               

Earned insurance premiums

 

9.0

 

7.7

 

16.8

 

15.4

Net investment income

 

10.4

 

7.6

 

20.1

 

14.8

Net realized and unrealized investment gains (losses)

 

(4.3)

 

(9.9)

 

(14.4)

 

7.1

Other revenues

 

.6

 

.5

 

1.1

 

1.3

Total Financial Guarantee revenues

 

15.7

 

5.9

 

23.6

 

38.6

Asset Management (Kudu)

               

Net investment income

 

15.7

 

14.7

 

32.9

 

28.9

Net realized and unrealized investment gains (losses)

 

54.5

 

4.6

 

48.0

 

34.2

Total Asset Management revenues

 

70.2

 

19.3

 

80.9

 

63.1

P&C Insurance Distribution (Bamboo)

               

Commission and fee revenues

 

32.7

 

 

54.6

 

Earned insurance premiums

 

8.0

 

 

16.4

 

Other revenues

 

1.3

 

 

2.1

 

Total P&C Insurance Distribution revenues

 

42.0

 

 

73.1

 

Other Operations

               

Earned insurance premiums

 

8.6

 

 

8.6

 

Net investment income

 

8.4

 

7.0

 

18.3

 

14.0

Net realized and unrealized investment gains (losses)

 

8.5

 

76.0

 

30.7

 

117.8

Net realized and unrealized investment gains (losses) from

   investment in MediaAlpha

 

(139.2)

 

(77.3)

 

71.5

 

7.9

Commission and fee revenues

 

3.4

 

3.2

 

7.0

 

6.5

Other revenues

 

14.5

 

21.3

 

28.9

 

51.9

Total Other Operations revenues

 

(95.8)

 

30.2

 

165.0

 

198.1

Total revenues

 

$              395.4

 

$              378.4

 

$           1,042.7

 

$              910.3

 

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(millions)

(Unaudited)

 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2024

 

2023

 

2024

 

2023

Expenses:

               

P&C Insurance and Reinsurance (Ark/WM Outrigger)

               

Loss and loss adjustment expenses

 

$             175.7

 

$             167.5

 

$             355.7

 

$             315.3

Acquisition expenses

 

68.2

 

61.4

 

134.5

 

121.2

General and administrative expenses

 

42.9

 

34.9

 

85.1

 

70.1

Change in fair value of contingent consideration

 

13.3

 

2.2

 

13.3

 

(.2)

Interest expense

 

4.7

 

5.2

 

10.1

 

10.2

Total P&C Insurance and Reinsurance expenses

 

304.8

 

271.2

 

598.7

 

516.6

Financial Guarantee (HG Global/BAM)

               

Acquisition expenses

 

2.2

 

1.5

 

4.4

 

4.2

General and administrative expenses

 

17.2

 

14.9

 

34.5

 

32.2

 Interest expense

 

4.1

 

2.5

 

7.6

 

7.0

Total Financial Guarantee expenses

 

23.5

 

18.9

 

46.5

 

43.4

Asset Management (Kudu)

               

General and administrative expenses

 

3.5

 

4.0

 

6.9

 

7.8

Interest expense

 

5.4

 

5.3

 

11.0

 

10.0

Total Asset Management expenses

 

8.9

 

9.3

 

17.9

 

17.8

P&C Insurance Distribution (Bamboo)

               

Broker commission expenses

 

12.7

 

 

22.0

 

Loss and loss adjustment expenses

 

4.3

 

 

10.1

 

Acquisition expenses

 

2.9

 

 

6.0

 

General and administrative expenses

 

15.7

 

 

27.7

 

Total P&C Insurance Distribution expenses

 

35.6

 

 

65.8

 

Other Operations

               

Loss and loss adjustment expenses

 

3.9

 

 

3.9

 

Acquisition expenses

 

2.6

 

 

2.6

 

Cost of sales

 

7.0

 

11.6

 

14.6

 

25.5

General and administrative expenses

 

43.2

 

48.8

 

93.5

 

88.5

Interest expense

 

.6

 

1.2

 

1.3

 

2.0

Total Other Operations expenses

 

57.3

 

61.6

 

115.9

 

116.0

Total expenses

 

430.1

 

361.0

 

844.8

 

693.8

Pre-tax income (loss)

 

(34.7)

 

17.4

 

197.9

 

216.5

 Income tax (expense) benefit

 

(6.5)

 

(.2)

 

(17.3)

 

(12.1)

Net income (loss)

 

(41.2)

 

17.2

 

180.6

 

204.4

 Net (income) loss attributable to noncontrolling interests

 

(13.4)

 

2.4

 

1.2

 

(5.3)

Net income (loss) attributable to White Mountains's

   common shareholders

 

$             (54.6)

 

$               19.6

 

$             181.8

 

$             199.1

 

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(millions)

(Unaudited)

 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2024

 

2023

 

2024

 

2023

Net income (loss) attributable to White Mountains's

   common shareholders

 

$             (54.6)

 

$               19.6

 

$             181.8

 

$             199.1

Other comprehensive income (loss), net of tax

 

.1

 

1.4

 

(.2)

 

2.6

Comprehensive income (loss)

 

(54.5)

 

21.0

 

181.6

 

201.7

Other comprehensive (income) loss attributable to

   noncontrolling interests

 

(.1)

 

(.4)

 

 

(.8)

Comprehensive income (loss) attributable to White Mountains's

   common shareholders

$             (54.6)

 

$               20.6

 

$             181.6

 

$             200.9

 

WHITE MOUNTAINS INSURANCE GROUP, LTD. 

EARNINGS PER SHARE 

(Unaudited) 

 

Earnings (loss) per share attributable to White Mountains's

   common shareholders

 

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2024

 

2023

 

2024

 

2023

Basic earnings (loss) per share

               

Continuing operations

 

$           (21.24)

 

$               7.65

 

$             70.93

 

$             77.57

Discontinued operations

 

 

 

 

Total consolidated operations

 

$           (21.24)

 

$               7.65

 

$             70.93

 

$             77.57

                 

Diluted earnings (loss) per share

               

Continuing operations

 

$           (21.24)

 

$               7.65

 

$             70.93

 

$             77.57

Discontinued operations

 

 

 

 

Total consolidated operations

 

$           (21.24)

 

$               7.65

 

$             70.93

 

$             77.57

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 June 30, 2024

 

Ark/WM Outrigger

 

HG Global/BAM

               
   

Ark

 

WM
Outrigger Re

 

HG
Global

 

BAM

 

Kudu

 

Bamboo

 

Other
Operations

 

Total

Revenues:

                               

Earned insurance premiums

 

$     310.8

 

$             7.5

 

$         7.5

 

$         1.5

 

$          —

 

$           8.0

 

$           8.6

 

$      343.9

Net investment income (1)

 

19.3

 

3.0

 

5.9

 

4.5

 

15.7

 

.6

 

8.4

 

57.4

Net investment income (expense) -

 BAM surplus note interest

 

 

 

6.6

 

(6.6)

 

 

 

 

 Net realized and unrealized
     investment gains (losses) (1)

 

20.3

 

 

(2.0)

 

(2.3)

 

54.5

 

 

8.5

 

79.0

 Net realized and unrealized
     investment gains (losses) from
     investment in MediaAlpha

 

 

 

 

 

 

 

(139.2)

 

(139.2)

Commission and fee revenues

 

 

 

 

 

 

32.7

 

3.4

 

36.1

Other revenues

 

2.4

 

 

 

.6

 

 

.7

 

14.5

 

18.2

Total revenues

 

352.8

 

10.5

 

18.0

 

(2.3)

 

70.2

 

42.0

 

(95.8)

 

395.4

Expenses:

                               

Loss and loss adjustment expenses

 

176.0

 

(.3)

 

 

 

 

4.3

 

3.9

 

183.9

Acquisition expenses

 

65.9

 

2.3

 

2.2

 

 

 

2.9

 

2.6

 

75.9

Cost of sales

 

 

 

 

 

 

 

7.0

 

7.0

Broker commission expenses

 

 

 

 

 

 

12.7

 

 

12.7

General and administrative expenses

 

42.8

 

.1

 

.6

 

16.6

 

3.5

 

15.7

 

43.2

 

122.5

Change in fair value of contingent

   consideration

 

13.3

 

 

 

 

 

 

 

13.3

Interest expense

 

4.7

 

 

4.1

 

 

5.4

 

 

.6

 

14.8

Total expenses

 

302.7

 

2.1

 

6.9

 

16.6

 

8.9

 

35.6

 

57.3

 

430.1

Pre-tax income (loss)

 

$       50.1

 

$             8.4

 

$       11.1

 

$     (18.9)

 

$       61.3

 

$           6.4

 

$     (153.1)

 

$      (34.7)

   

(1)

Bamboo's net investment income and net realized and unrealized investment gains (losses) are included in other revenues in the consolidated statement of operations.

 

WHITE MOUNTAINS INSURANCE GROUP, LTD. 

QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED) 

(millions) 

(Unaudited) 

 

For the Three Months Ended June 30, 2023

 

Ark/WM Outrigger

 

HG Global/BAM

           
   

Ark

 

WM
Outrigger Re

 

HG Global

 

BAM

 

Kudu

 

Other
Operations

 

Total

Revenues:

                           

Earned insurance premiums

 

$      283.7

 

$              9.6

 

$            6.4

 

$            1.3

 

$          —

 

$             —

 

$     301.0

Net investment income

 

11.2

 

2.5

 

4.1

 

3.5

 

14.7

 

7.0

 

43.0

Net investment income (expense) -

 BAM surplus note interest

 

 

 

6.5

 

(6.5)

 

 

 

Net realized and unrealized

   investment gains (losses)

 

18.0

 

 

(5.7)

 

(4.2)

 

4.6

 

76.0

 

88.7

   Net realized and unrealized

investment gains (losses)

     from investment in MediaAlpha

 

 

 

 

 

 

(77.3)

 

(77.3)

Commission and fee revenues

 

 

 

 

 

 

3.2

 

3.2

Other revenues

 

(2.0)

 

 

 

.5

 

 

21.3

 

19.8

Total revenues

 

310.9

 

12.1

 

11.3

 

(5.4)

 

19.3

 

30.2

 

378.4

Expenses:

                           

Loss and loss adjustment expenses

 

167.1

 

.4

 

 

 

 

 

167.5

Acquisition expenses

 

59.4

 

2.0

 

1.8

 

(.3)

 

 

 

62.9

Cost of sales

 

 

 

 

 

 

11.6

 

11.6

General and administrative expenses

 

34.9

 

 

.3

 

14.6

 

4.0

 

48.8

 

102.6

 Change in fair value of contingent
     consideration

 

2.2

 

 

 

 

 

 

2.2

Interest expense

 

5.2

 

 

2.5

 

 

5.3

 

1.2

 

14.2

Total expenses

 

268.8

 

2.4

 

4.6

 

14.3

 

9.3

 

61.6

 

361.0

Pre-tax income (loss)

 

$        42.1

 

$              9.7

 

$            6.7

 

$        (19.7)

 

$       10.0

 

$        (31.4)

 

$       17.4

 

WHITE MOUNTAINS INSURANCE GROUP, LTD. 

YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) 

(millions) 

(Unaudited) 

 

For the Six Months Ended June 30, 2024

 

Ark/WM Outrigger

 

HG Global/BAM

               
   

Ark

 

WM
Outrigger
Re

 

HG
Global

 

BAM

 

Kudu

 

Bamboo

 

Other
Operations

 

Total

Revenues:

                               

Earned insurance premiums

 

$     603.3

 

$      17.8

 

$       14.0

 

$         2.8

 

$          —

 

$       16.4

 

$           8.6

 

$      662.9

Net investment income (1)

 

36.3

 

5.9

 

11.3

 

8.8

 

32.9

 

.9

 

18.3

 

114.4

Net investment income (expense) -

 BAM surplus note interest

 

 

 

13.2

 

(13.2)

 

 

 

 

Net realized and unrealized investment gains

   (losses) (1)

 

30.9

 

 

(9.3)

 

(5.1)

 

48.0

 

(.1)

 

30.7

 

95.1

   Net realized and unrealized investment gains

     (losses) from investment in MediaAlpha

 

 

 

 

 

 

 

71.5

 

71.5

Commission and fee revenues

 

 

 

 

 

 

54.6

 

7.0

 

61.6

Other revenues

 

5.9

 

 

 

1.1

 

 

1.3

 

28.9

 

37.2

Total revenues

 

676.4

 

23.7

 

29.2

 

(5.6)

 

80.9

 

73.1

 

165.0

 

1,042.7

Expenses:

                               

Loss and loss adjustment expenses

 

355.3

 

.4

 

 

 

 

10.1

 

3.9

 

369.7

Acquisition expenses

 

129.6

 

4.9

 

4.0

 

.4

 

 

6.0

 

2.6

 

147.5

Cost of sales

 

 

 

 

 

 

 

14.6

 

14.6

Broker commission expenses

 

 

 

 

 

 

22.0

 

 

22.0

General and administrative expenses

 

85.0

 

.1

 

1.0

 

33.5

 

6.9

 

27.7

 

93.5

 

247.7

Change in fair value of contingent

   consideration

 

13.3

 

 

 

 

 

 

 

13.3

Interest expense

 

10.1

 

 

7.6

 

 

11.0

 

 

1.3

 

30.0

Total expenses

 

593.3

 

5.4

 

12.6

 

33.9

 

17.9

 

65.8

 

115.9

 

844.8

Pre-tax income (loss)

 

$       83.1

 

$      18.3

 

$       16.6

 

$     (39.5)

 

$       63.0

 

$         7.3

 

$         49.1

 

$      197.9

   

(1)

Bamboo's net investment income and net realized and unrealized investment gains (losses) are included in other revenues in the consolidated statement of operations.

 

WHITE MOUNTAINS INSURANCE GROUP, LTD. 

YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED) 

(millions) 

(Unaudited) 

 

For the Six Months Ended June 30, 2023

 

Ark/WM Outrigger

 

HG Global/BAM

           
   

Ark

 

WM
Outrigger
Re

 

HG
Global

 

BAM

 

Kudu

 

Other
Operations

 

Total

Revenues:

                           

Earned insurance premiums

 

$      533.6

 

$        14.8

 

$        12.8

 

$          2.6

 

$             —

 

$               —

 

$          563.8

Net investment income

 

19.6

 

4.7

 

8.1

 

6.7

 

28.9

 

14.0

 

82.0

Net investment income (expense) -

 BAM surplus note interest

 

 

 

13.1

 

(13.1)

 

 

 

Net realized and unrealized investment gains

   (losses)

 

42.5

 

 

2.2

 

4.9

 

34.2

 

117.8

 

201.6

Net realized and unrealized investment gains

   (losses) from investment in MediaAlpha

 

 

 

 

 

 

7.9

 

7.9

Commission and fee revenues

 

 

 

 

 

 

6.5

 

6.5

Other revenues

 

(4.7)

 

 

 

1.3

 

 

51.9

 

48.5

Total revenues

 

591.0

 

19.5

 

36.2

 

2.4

 

63.1

 

198.1

 

910.3

Expenses:

                           

Loss and loss adjustment expenses

 

314.7

 

.6

 

 

 

 

 

315.3

Acquisition expenses

 

118.3

 

2.9

 

3.6

 

.6

 

 

 

125.4

Cost of sales

 

 

 

 

 

 

25.5

 

25.5

General and administrative expenses

 

70.0

 

.1

 

1.4

 

30.8

 

7.8

 

88.5

 

198.6

 Change in fair value of contingent