White Mountains Reports Tangible Book Value Per Share of $422
HAMILTON, Bermuda, Aug. 2 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. ended the second quarter with a fully diluted tangible book value per share of $422, an increase of 2.2% for the quarter, 4.9% for the year to date, and 21.0% for the past twelve months, including dividends.
Ray Barrette, Chairman and CEO, said "Once again, our results for the quarter were OK. Our investment team continues to deliver superior results. On the underwriting front, White Mountains Re had a good quarter with a 90% combined ratio. Esurance had a 113% combined ratio reflecting some reserve increases but grew premiums by 42% at target loss ratios. OneBeacon grew its ABVPS including dividends by 3.7% driven by a 97% combined ratio and superior investment returns. We remain focused on delivering mid-teens or higher tangible book value per share growth for the full year."
Adjusted comprehensive net income for the second quarter of 2007 was $90 million, compared to $50 million in the second quarter of last year. Adjusted comprehensive net income for the first six months of 2007 was $193 million, up from $166 million in the first six months of last year. 2006 results were negatively impacted by the adverse developments on KRW reserves at White Mountains Re.
Net income for the second quarter was $103 million, compared to $116 million. Net income for the first six months of 2007 was $195 million, down from $212 million.
OneBeacon
OneBeacon's pre-tax income for the second quarter of 2007 was $94 million, compared to $92 million, while the GAAP combined ratio was 97%, compared with 94%. For the first six months of 2007, pre-tax income was $180 million, compared to $140 million, while the GAAP combined ratio was 97%, compared with 96%.
Mike Miller, CEO of OneBeacon, said "Specialty and Commercial Lines had strong results for the quarter while Personal Lines, especially AutoOne, continued to be challenged. We continue to invest in specialized teams of people, having recently bolstered our Commercial Lines presence in the Midwest and Mountain States regions. For the balance of 2007, we will remain focused on maintaining our underwriting discipline, taking appropriate steps to manage our expenses, and continuing to look for new specialized opportunities."
Net written premiums were $485 million for the second quarter and $925 million for the first six months, a decrease of 6% and 7% from the comparable periods of 2006. Excluding the Agri business that was sold in September 2006, net written premiums decreased 2% from the comparable periods of 2006. Strong growth in OneBeacon's Specialty Lines almost offset lower Personal Lines premiums for both periods.
White Mountains Re
White Mountains Re's pre-tax income for the second quarter of 2007 was $85 million, compared to a loss of $63 million, while the GAAP combined ratio was 90%, compared to 141%. For the first six months of 2007, pre-tax income was $143 million, compared to $22 million, while the GAAP combined ratio was 95%, compared to 116%. 2006 results were negatively impacted by the adverse developments on KRW reserves.
The first six months of 2007 includes $60 million of pre-tax catastrophe losses, net of reinstatements and reinsurance, most of which relates to first quarter European windstorms Kyrill and Hanno. Results for the second quarter and the first six months of 2006 included $50 million and $86 million, respectively, in pre-tax catastrophe losses, net of reinstatements and reinsurance, from KRW, as well as $137 million of pre-tax losses related to the reimbursement of Olympus Re.
Allan Waters, CEO of White Mountains Re, said, "Our underwriting results indicate that our core business remains attractive. However, we continue to see softening across most of our lines. Our principal challenge is to maintain discipline as market conditions change. Our management initiatives and capital structuring activities progressed at pace in the quarter, and our efforts to reduce our catastrophe exposures since KRW have improved our financial strength."
Net written premiums were down 17% and 11% for the second quarter and first six months from the comparable periods of 2006. These declines reflects lower property and casualty volume, mainly as a result of changing pricing, terms and conditions which no longer meet White Mountains Re's underwriting guidelines, and increased ceding company retentions.
In May 2007, White Mountains Re issued $250 million non-cumulative perpetual preference shares with a $1,000 per share liquidation preference. Net proceeds of $246 million will be used to further capitalize White Mountains Re's reinsurance subsidiaries, including expansion of the Bermuda platform.
Esurance
Esurance's pre-tax loss for the second quarter of 2007 was $13 million, compared to pre-tax income of $2 million, while the GAAP combined ratio was 113%, compared to 106%. For the first six months of 2007, Esurance's pre-tax loss was $21 million, compared to $2 million, while the GAAP combined ratio was 112%, compared to 108%. The increases in the loss and combined ratios for both periods were primarily due to reserve increases for bodily injury claims and lower prices. The expense ratio for the quarter and for the first six months was 35%, compared to 35% and 36% in the comparable periods of 2006.
Gary Tolman, CEO of Esurance, stated, "In the second quarter, Esurance faced an increasingly challenging environment. Competition for new business increased as many of our competitors, along with Esurance, have reduced rates and continue to spend heavily on advertising. While our rate of growth remains strong, it will not be as strong as previous years. Additionally, we increased our reserves by $6 million during the quarter, primarily for bodily injury claims for prior accident years. Overall, we remain very excited about our position in the market and our performance. The current accident year loss results look good, and we have grown our policyholder base by more than 50% in the last 12 months."
Net written premiums were $186 million for the second quarter and $393 million for the first six months, an increase of 42% and 45% from the comparable periods of 2006. Net written premiums for the last 12 months were $718 million. At June 30, 2007, Esurance had 457,000 policies in force. With the addition of Alabama, Kentucky, and Louisiana in the second quarter, Esurance writes business in 28 states, comprising 85% of total written premiums for the personal automobile insurance industry in the United States.
Other Operations
White Mountains' Other Operations segment's pre-tax income for the second quarter of 2007 was $10 million, compared to $41 million. For the first six months of 2007, pre-tax income was $6 million, compared to $29 million. The decrease in pre-tax income for both periods is primarily due to the realization in the second quarter of 2006 of a $21 million gain from the redemption of a private equity investment, offset somewhat by higher investment income in 2007.
Investment Activities
The GAAP total return on invested assets for the second quarter and the first six months of 2007 was 1.6% and 3.5% compared to 1.6% and 2.8% in the comparable periods of 2006. Net investment income was $127 million in the second quarter and $245 million in the first six months, up from $104 million and $203 million.
Mark Dorcus, President of White Mountains Advisors, said "Our absolute returns in 2007 have been solid, while our performance relative to industry benchmarks has been outstanding. The bond portfolio performed particularly well versus its benchmarks in the second quarter. Our short duration, avoidance of the sub-prime mortgage mess, and superior security selection provided positive bond returns in a rising interest rate and escalating risk premium environment."
Additional Information
On July 17, 2006, in connection with the initial public offering of OneBeacon Insurance Group, Ltd. ("OBIG"), White Mountains undertook an internal reorganization and formed OBIG for the purpose of holding certain of its property and casualty insurance businesses. As a result of the reorganization, certain of White Mountains' businesses that had been historically reported as part of its Other Operations segment are now owned by OBIG, and accordingly are now included within the OneBeacon segment. In addition, certain other businesses of White Mountains that are no longer owned by OBIG are now presented as part of the Other Operations segment. Prior period segment information has been restated to conform to the current presentation.
As a result of the sale of OneBeacon shares, there is a significant minority interest in OneBeacon. Accordingly, prior periods in the Company's financial statements have been reclassified to show the Company's minority interest in certain limited partnership investments.
White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange and the Bermuda Stock Exchange under the symbol WTM. Additional financial information and other items of interest are available at the Company's website located at www.whitemountains.com. The Company expects to file its Form 10-Q with the Securities and Exchange Commission on or before August 9, 2007 and urges shareholders to refer to that document for more complete information concerning White Mountains' financial results.
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 and 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 8.
Fully diluted tangible book value per share is a non-GAAP measure which is derived by expanding the GAAP book value per share calculation to include the effects of assumed conversion of all in-the-money convertible securities and to exclude any unamortized goodwill and net unrealized gains/(losses) from Symetra's fixed maturity portfolio. In addition, for periods subsequent to December 31, 2006, the number of common shares outstanding used in the calculation of fully diluted tangible 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. This adjustment was not made to fully diluted tangible book value per share for periods prior to December 31, 2006 as the impact was not significant. The reconciliation of fully diluted tangible book value per share to book value per share is included on page 7.
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 amounts) June 30, March 31,
2007 2007
OneBeacon book value per share numerators:
OneBeacon common shareholders' equity $1,861.3 $1,825.7
Remaining accretion of subsidiary
preferred stock to face value (40.8) (49.5)
Adjusted OneBeacon common shareholders' equity 1,820.5 1,776.2
OneBeacon common shares outstanding 100.0 100.0
OneBeacon book value per common share $18.61 $18.26
OneBeacon adjusted book value per common share $18.21 $17.76
Growth in adjusted book value per common
share in the quarter (1) 3.7%
(1)Includes $.21 dividend per common share paid in June 2007.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This earnings release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to White Mountains':
-- growth in book value per share or return on equity;
-- business strategy;
-- financial and operating targets or plans;
-- incurred losses and the adequacy of its loss and loss adjustment
expense reserves and related reinsurance;
-- projections of revenues, income (or loss), earnings (or loss) per
share, dividends, market share or other financial forecasts;
-- expansion and growth of our business and operations; and
-- future capital expenditures.
These statements are based on certain assumptions and analyses made by White Mountains in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:
-- the risks associated with Item 1A of White Mountains' 2006 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)
June 30, December 31, June 30,
2007 2006 2006
Assets
Fixed maturity investments $7,524.9 $7,475.3 $6,944.1
Common equity securities 1,402.7 1,212.6 1,147.0
Short-term investments 1,152.9 1,344.9 873.5
Other investments 558.5 524.8 469.6
Convertible fixed maturity
investments 544.7 436.2 359.5
Investments held in trust 312.0 338.9 -
Total investments 11,495.7 11,332.7 9,793.7
Reinsurance recoverable on unpaid
losses 3,693.2 4,015.7 4,660.9
Reinsurance recoverable on paid
losses 57.7 159.4 116.0
Funds held by ceding companies 366.7 452.8 554.7
Insurance and reinsurance premiums
receivable 1,007.3 913.6 1,062.4
Securities lending collateral 554.0 649.8 453.1
Investments in unconsolidated
affiliates 381.0 335.5 412.0
Deferred acquisition costs 351.6 320.3 324.9
Ceded unearned premiums 130.9 87.9 167.1
Accounts receivable on unsettled
investment sales 24.3 8.5 23.6
Other assets 1,121.9 1,167.5 1,159.6
Total assets $19,184.3 $19,443.7 $18,728.0
Liabilities
Loss and loss adjustment expense
reserves $8,364.7 $8,777.2 $9,775.3
Unearned insurance and reinsurance
premiums 1,735.7 1,584.9 1,730.7
Debt 1,183.6 1,106.7 838.2
Securities lending payable 554.0 649.8 453.1
Preferred stock subject to
mandatory redemption 259.2 262.3 247.3
Ceded reinsurance payable 125.4 138.4 166.9
Funds held under reinsurance treaties 110.4 141.6 130.1
Reserves for structured contracts 87.3 147.1 214.2
Accounts payable on unsettled
investment purchases 32.0 66.8 63.7
Other liabilities 1,269.1 1,510.4 1,143.4
Total liabilities 13,721.4 14,385.2 14,762.9
Minority interest - OneBeacon
Insurance Group, Ltd. 526.0 490.7 -
Minority interest - White
Mountains Re Group, Ltd.
Preference Shares 250.0 - -
Minority interest - consolidated
limited partnerships 111.6 112.5 100.8
Total minority interest 887.6 603.2 100.8
Common Shareholders' Equity
Common shares and paid-in surplus 1,731.9 1,727.5 1,726.4
Retained earnings 2,647.5 2,496.0 2,077.7
Accumulated other comprehensive
income (loss), after tax:
Net unrealized gains on investments 182.5 198.1 122.1
Equity in net unrealized losses
from Symetra's fixed maturity
portfolio (38.5) (4.1) (69.0)
Net unrealized foreign currency
translation gains and other 51.9 37.8 7.1
Total common shareholders' equity 4,575.3 4,455.3 3,864.3
Total liabilities, minority
interest and common shareholders'
equity $19,184.3 $19,443.7 $18,728.0
Common shares outstanding (000's) 10,843 10,783 10,780
Common and equivalent shares
outstanding (000's) 10,806 10,812 10,814
WHITE MOUNTAINS INSURANCE GROUP, LTD.
FULLY DILUTED TANGIBLE BOOK VALUE PER COMMON AND EQUIVALENT SHARE
(Unaudited)
June March December June
30, 31, 31, 30
2007 2007 2006 2006
Book value per share
numerators (in millions):
Common shareholders' equity $4,575.3 $4,542.9 $4,455.3 $3,864.3
Benefits to be received from
share obligations under
employee benefit plans 2.3 4.1 4.7 5.1
Remaining adjustment of
preferred stock subj. to
mandatory redemption to face
value (29.3)(1) (35.5)(1) (41.8)(1) (72.7)
Book value per share numerator 4,548.3 4,511.5 4,418.2 3,796.7
Equity in net unrealized
(gains) losses from Symetra's
fixed maturity portfolio 38.5 (1.8) 4.1 69.0
Goodwill (28.4) (29.2) (32.5) (25.2)
Fully diluted tangible book value
per common and equivalent share
numerator $4,558.4 $4,480.5 $4,389.8 $3,840.5
Book value per share
denominators
(in thousands of shares):
Common Shares outstanding 10,842.6 10,833.8 10,782.8 10,780.1
Unearned restricted shares (50.6) (52.7) - -
Share obligations under
employee benefits plans 14.4 25.3 29.5 33.4
Fully diluted tangible book
value per common and
equivalent share denominator 10,806.4 10,806.4 10,812.3 10,813.5
Book value per common and
equivalent share $420.90 $417.47 $408.62 $351.11
Fully diluted tangible book
value per common and
equivalent share $421.83 $414.61 $406.00 $355.16
(1) Remaining adjustment of subsidiary preferred stock to face value,
which is representative of White Mountains' ownership interest in
OneBeacon Insurance Group, Ltd. of 71.7% as of June 30, 2007, 71.8% as
of March 31, 2007 and 72.4% as of December 31, 2006.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(millions, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Revenues:
Earned insurance and
reinsurance premiums $960.7 $953.5 $1,898.7 $1,854.5
Net investment income 126.7 104.4 244.7 202.9
Net realized investment gains 89.1 106.5 163.0 135.0
Other revenue 34.1 36.5 70.3 66.3
Total revenues 1,210.6 1,200.9 2,376.7 2,258.7
Expenses:
Loss and loss adjustment
expenses 592.1 763.8 1,205.4 1,327.8
Insurance and reinsurance
acquisition expenses 203.6 187.7 396.2 373.3
Other underwriting expenses 136.2 122.8 273.9 238.7
General and administrative
expenses 62.4 22.3 115.3 66.9
Accretion of fair value
adjustment to loss and loss
adjustment expense reserves 5.5 6.4 10.6 11.6
Interest expense on debt 18.3 11.9 35.1 23.6
Interest expense - dividends
on preferred stock subject to
mandatory redemption 7.5 7.5 15.1 15.1
Interest expense - accretion
on preferred stock subject to
mandatory redemption 8.8 6.9 17.0 13.3
Total expenses 1,034.4 1,129.3 2,068.6 2,070.3
Pre-tax income 176.2 71.6 308.1 188.4
Income tax benefit (provision) (55.8) 29.3 (87.0) 2.4
Income before equity in earnings
of unconsolidated affiliates
and minority interest 120.4 100.9 221.1 190.8
Equity in earnings of
unconsolidated affiliates 8.6 14.8 19.1 23.8
Minority interest (26.4) .1 (45.4) (2.8)
Net income 102.6 115.8 194.8 211.8
Change in net unrealized gains
on investments (70.7) (114.5) (50.0) (171.6)
Change in foreign currency
translation and other 17.9 11.9 14.1 32.9
Comprehensive net income 49.8 13.2 158.9 73.1
Change in net unrealized gains
and losses from Symetra's
fixed maturity portfolio 40.3 36.4 34.4 93.2
Adjusted comprehensive net
income $90.1 $49.6 $193.3 $166.3
Basic earnings per share $9.51 $10.75 $18.07 $19.67
Diluted earnings per share $9.49 $10.72 $18.03 $19.61
Dividends declared and paid per
common share $2.00 $2.00 $4.00 $4.00
WHITE MOUNTAINS INSURANCE GROUP, LTD.
YTD SEGMENT INCOME STATEMENTS
(in millions)
(Unaudited)
For the Six Months Ended
June 30, 2007
OneBeacon WMRe Esurance Other Total
Revenues:
Earned insurance
and reinsurance
premiums $933.9 $605.1 $359.7 $- $1,898.7
Net investment
income 105.2 101.1 13.6 24.8 244.7
Net realized
investment gains 112.0 42.1 2.5 6.4 163.0
Other revenue 5.5 (5.5) 6.1 64.2 70.3
Total revenues 1,156.6 742.8 381.9 95.4 2,376.7
Expenses:
Loss and loss
adjustment
expenses 571.3 367.4 277.4 (10.7) 1,205.4
Insurance and
reinsurance
acquisition expenses 156.6 144.6 95.0 - 396.2
Other underwriting
expenses 180.5 61.2 30.6 1.6 273.9
General and
administrative expenses 5.1 16.2 .2 93.8 115.3
Accretion of fair value
adjustment to loss and
lae reserves 8.0 2.6 - - 10.6
Interest expense on debt 22.7 8.0 - 4.4 35.1
Interest expense
- dividends and
accretion on preferred
stock 32.1 - - - 32.1
Total expenses 976.3 600.0 403.2 89.1 2,068.6
Pre-tax income(loss) $180.3 $142.8 $(21.3) $6.3 $308.1
For the Six Months Ended June 30, 2006
OneBeacon WMRe Esurance Other Total
Revenues:
Earned insurance
and reinsurance
premiums $965.5 $658.0 $231.0 $- $1,854.5
Net investment income 96.0 84.5 8.4 14.0 202.9
Net realized investment
gains 66.0 41.2 3.5 24.3 135.0
Other revenue 11.8 6.9 3.9 43.7 66.3
Total revenues 1,139.3 790.6 246.8 82.0 2,258.7
Expenses:
Loss and loss adjustment
expenses 599.3 564.2 165.1 (.8) 1,327.8
Insurance and
reinsurance
acquisition expenses 160.8 151.2 61.3 - 373.3
Other underwriting
expenses 169.9 45.5 22.4 .9 238.7
General and
administrative
expenses 6.7 7.1 - 53.1 66.9
Accretion of fair value
adjustment to loss and
lae reserves 11.5 .1 - - 11.6
Interest expense
on debt 22.8 .8 - - 23.6
Interest expense
- dividends and
accretion on preferred
stock 28.4 - - - 28.4
Total expenses 999.4 768.9 248.8 53.2 2,070.3
Pre-tax income (loss) $139.9 $21.7 $(2.0) $28.8 $188.4
WHITE MOUNTAINS INSURANCE GROUP, LTD.
QTD SEGMENT INCOME STATEMENTS
(in millions)
(Unaudited)
For the Three Months Ended June 30, 2007
OneBeacon WMRe Esurance Other Total
Revenues:
Earned insurance
and reinsurance
premiums $465.0 $306.8 $188.9 $- $960.7
Net investment income 54.6 53.0 7.4 11.7 126.7
Net realized investment
gains 57.1 22.2 1.5 8.3 89.1
Other revenue 2.4 (1.9) 3.1 30.5 34.1
Total revenues 579.1 380.1 200.9 50.5 1,210.6
Expenses:
Loss and loss adjustment
expenses 283.1 172.8 147.1 (10.9) 592.1
Insurance and
reinsurance
acquisition expenses 78.3 75.0 50.3 - 203.6
Other underwriting
expenses 89.6 29.9 15.9 .8 136.2
General and
administrative expenses 2.7 9.6 .1 50.0 62.4
Accretion of fair value
adjustment to loss and
lae reserves 4.0 1.5 - - 5.5
Interest expense on debt 11.3 6.8 - .2 18.3
Interest expense
- dividends and
accretion on preferred
stock 16.3 - - - 16.3
Total expenses 485.3 295.6 213.4 40.1 1,034.4
Pre-tax income
(loss) $93.8 $84.5 $(12.5) $10.4 $176.2
For the Three Months Ended June 30, 2006
OneBeacon WMRe Esurance Other Total
Revenues:
Earned insurance and
reinsurance premiums $485.3 $342.4 $125.8 $- $953.5
Net investment
income 50.9 43.4 4.8 5.3 104.4
Net realized
investment gains 38.9 38.7 2.6 26.3 106.5
Other revenue 6.3 2.5 1.8 25.9 36.5
Total revenues 581.4 427.0 135.0 57.5 1,200.9
Expenses:
Loss and loss
adjustment expenses 295.6 377.6 89.9 .7 763.8
Insurance and
reinsurance
acquisition expenses 74.5 80.9 32.3 - 187.7
Other underwriting
expenses 86.0 25.1 11.3 .4 122.8
General and
administrative expenses 2.3 4.9 - 15.1 22.3
Accretion of fair value
adjustment to loss and
lae reserves 5.7 .7 - - 6.4
Interest expense on debt 11.4 .4 - .1 11.9
Interest expense
- dividends and
accretion on preferred
stock 14.4 - - - 14.4
Total expenses 489.9 489.6 133.5 16.3 1,129.3
Pre-tax income (loss)$91.5 $(62.6) $1.5 $41.2 $71.6
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SUMMARY OF GAAP RATIOS AND PREMIUMS
(Unaudited)
Six Months Ended June 30, 2007
OneBeacon WMRe Esurance
Specialty Personal Commercial Total
(1) (2)
GAAP Ratios
Loss and LAE 57% 64% 56% 61% 61% 77%
Expense 32% 37% 37% 36% 34% 35%
Total Combined 89% 101% 93% 97% 95% 112%
Dollars in millions
Net written premiums $207.6 $353.2 $364.2 $925.1 $683.0 $393.4
Earned premiums $215.2 $370.3 $348.4 $933.9 $605.1 $359.7
Six Months Ended June 30, 2006
OneBeacon WMRe Esurance
Specialty Personal Commercial Total
(1) (2)
GAAP Ratios
Loss and LAE 56% 64% 59% 62% 86% 72%
Expense 31% 31% 38% 34% 30% 36%
Total Combined 87% 95% 97% 96% 116% 108%
Dollars in millions
Net written premiums $207.6 $419.8 $362.5 $989.9 $767.2 $271.6
Earned premiums $210.0 $419.2 $336.3 $965.4 $658.0 $231.0
Three Months Ended June 30, 2007
OneBeacon WMRe Esurance
Specialty Personal Commercial Total
(1) (2)
GAAP Ratios
Loss and LAE 57% 63% 57% 61% 56% 78%
Expense 32% 36% 37% 36% 34% 35%
Total Combined 89% 99% 94% 97% 90% 113%
Dollars in millions
Net written premiums $110.8 $180.4 $193.6 $484.8 $279.4 $185.7
Earned premiums $108.2 $180.5 $176.4 $465.0 $306.8 $188.9
Three Months Ended June 30, 2006
OneBeacon WMRe Esurance
Specialty Personal Commercial Total
(1) (2)
GAAP Ratios
Loss and LAE 58% 61% 58% 61% 110% 71%
Expense 31% 29% 38% 33% 31% 35%
Total Combined 89% 90% 96% 94% 141% 106%
Dollars in millions
Net written premiums $105.6 $217.4 $195.7 $515.4 $338.5 $130.7
Earned premiums $108.0 $209.7 $171.0 $485.3 $342.4 $125.8
Contact:
David Foy
(203)458-5850
SOURCE White Mountains Insurance Group, Ltd.
CONTACT: David Foy, +1-203-458-5850 for White Mountains Insurance Group,