UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 2, 2006
Date of Report (Date of earliest event reported)
WHITE MOUNTAINS INSURANCE GROUP, LTD.
(Exact name of registrant as specified in its charter)
|
Bermuda |
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1-8993 |
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94-2708455 |
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(State or
other jurisdiction of |
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(Commission
file |
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(I.R.S.
Employer |
Harborside Financial Center, Suite 1720
17th Floor, Jersey City, New
Jersey 07311-1114
(Address of principal executive offices)
(201) 631-3300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
White Mountains Insurance Group, Ltd. (“White Mountains”) hereby amends its 8-K filing dated February 2, 2006, in which it furnished its earnings release and unaudited financial statements for the three months and year ended December 31, 2005.
The financial statements in this amendment reflect an increase in White Mountains’ 2005 net income of $21.1 million and a decrease in White Mountains’ after-tax unrealized investment gains of an equal amount. This change has no impact on White Mountains’ fully converted tangible book value per share, its shareholders’ equity or its adjusted comprehensive net income for 2005. The amended financial statements reflect EITF Topic D-46, “Accounting for Limited Partnership Investments”, whereby changes in the value of limited partnership investments over which White Mountains is deemed to have influence (generally by virtue of an ownership interest greater than five percent) are accounted for under the equity method. As a result, changes in the value of White Mountains’ interests in these limited partnership interests have been reclassified to realized investment gains from unrealized investment gains. The revised financial statements are furnished in Exhibit 99.1 to this Form 8-K/A.
Certain information included in the financial statements constitutes a non-GAAP financial measure (as defined in Regulation G of the Securities and Exchange Commission). Specifically, the non-GAAP financial measure disclosed in the financial statements is adjusted comprehensive net income. White Mountains believes this measure to be more relevant than the comparable GAAP measure in evaluating White Mountains’ financial performance.
Adjusted comprehensive net income is a non-GAAP measure that excludes the change in net unrealized gains from Symetra’s fixed maturity portfolio from comprehensive net income. GAAP requires these assets to be marked-to-market, which results in gains during periods when interest rates fall and losses in periods when interest rates rise. Because the liabilities related to the life insurance and structured settlement products that these assets support are not marked-to-market, it is likely that the economic impact on Symetra would be the opposite of that shown under GAAP (i.e., in general, Symetra’s intrinsic value increases when interest rates rise and decreases when interest rates fall). A schedule is included in Exhibit 99.1 to this Form 8-K/A that reconciles White Mountains’ comprehensive net income and adjusted comprehensive net income.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
99.1 Selected financial statements of White Mountains Insurance Group, Ltd., furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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WHITE MOUNTAINS INSURANCE GROUP, LTD. |
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DATED: February 17, 2006 |
By: |
/s/ |
J. BRIAN PALMER |
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J. Brian Palmer |
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2
Exhibit 99.1
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions, except share amounts)
(Unaudited)
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|||
|
|
|
2005 |
|
2005 |
|
2004 |
|
|||
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Assets |
|
|
|
|
|
|
|
|||
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|
|
|
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|
|||
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Fixed maturity investments |
|
$ |
7,582.7 |
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$ |
7,594.2 |
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$ |
7,900.0 |
|
|
Short-term investments |
|
727.8 |
|
1,027.3 |
|
1,058.2 |
|
|||
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Common equity securities |
|
967.8 |
|
1,000.1 |
|
1,043.9 |
|
|||
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Other investments |
|
588.1 |
|
507.1 |
|
527.4 |
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|||
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|
|
|
|
|
|
|||
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Total investments |
|
9,866.4 |
|
10,128.7 |
|
10,529.5 |
|
|||
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|
|
|
|
|
|
|
|
|||
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Reinsurance recoverable on unpaid losses |
|
5,025.7 |
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4,824.0 |
|
3,797.4 |
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|||
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Reinsurance recoverable on paid losses |
|
77.0 |
|
103.3 |
|
92.0 |
|
|||
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Funds held by ceding companies |
|
620.4 |
|
707.6 |
|
943.8 |
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|||
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Insurance and reinsurance premiums receivable |
|
1,014.3 |
|
1,039.7 |
|
942.2 |
|
|||
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Securities lending collateral |
|
674.9 |
|
786.9 |
|
593.3 |
|
|||
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Investments in unconsolidated insurance affiliates |
|
479.7 |
|
486.8 |
|
466.6 |
|
|||
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Deferred acquisition costs |
|
288.4 |
|
308.3 |
|
308.2 |
|
|||
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Ceded unearned premiums |
|
200.7 |
|
242.2 |
|
224.1 |
|
|||
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Accounts receivable on unsettled investment sales |
|
21.7 |
|
27.0 |
|
19.9 |
|
|||
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Other assets |
|
1,148.9 |
|
1,141.3 |
|
1,098.1 |
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|||
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|
|
|
|
|
|
|
|||
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Total assets |
|
$ |
19,418.1 |
|
$ |
19,795.8 |
|
$ |
19,015.1 |
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|
|
|
|
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|||
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Liabilities |
|
|
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|
|||
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Loss and loss adjustment expense reserves |
|
$ |
10,231.2 |
|
$ |
10,102.6 |
|
$ |
9,398.5 |
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Reserves for structured contracts |
|
224.6 |
|
268.3 |
|
375.9 |
|
|||
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Unearned insurance and reinsurance premiums |
|
1,582.0 |
|
1,717.9 |
|
1,739.4 |
|
|||
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Debt |
|
779.1 |
|
775.2 |
|
783.3 |
|
|||
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Securities lending payable |
|
674.9 |
|
786.9 |
|
593.3 |
|
|||
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Preferred stock subject to mandatory redemption |
|
234.0 |
|
227.9 |
|
211.9 |
|
|||
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Ceded reinsurance payable |
|
204.5 |
|
219.1 |
|
201.4 |
|
|||
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Funds held under reinsurance treaties |
|
171.4 |
|
169.9 |
|
155.4 |
|
|||
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Accounts payable on unsettled investment purchases |
|
43.4 |
|
162.8 |
|
30.9 |
|
|||
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Other liabilities |
|
1,439.8 |
|
1,482.4 |
|
1,641.2 |
|
|||
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|
|
|
|
|
|
|
|
|||
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Total liabilities |
|
15,584.9 |
|
15,913.0 |
|
15,131.2 |
|
|||
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|
|
|
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|
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|
|||
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Common Shareholders’ Equity |
|
|
|
|
|
|
|
|||
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|
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|
|
|
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|
|||
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Common shares and paid-in surplus |
|
1,725.3 |
|
1,726.9 |
|
1,725.8 |
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|||
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Retained earnings |
|
1,899.8 |
|
1,888.0 |
|
1,695.9 |
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|||
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Accumulated other comprehensive income (loss), after tax: |
|
|
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|
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|
|||
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Net unrealized gains on investments |
|
209.7 |
|
249.4 |
|
359.5 |
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|||
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Equity in net unrealized gains from Symetra’s fixed maturity portfolio |
|
24.2 |
|
39.4 |
|
56.6 |
|
|||
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Net unrealized foreign currency translation gains (losses) and other |
|
(25.8 |
) |
(20.9 |
) |
46.1 |
|
|||
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|
|
|
|
|
|
|||
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Total common shareholders’ equity |
|
3,833.2 |
|
3,882.8 |
|
3,883.9 |
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|||
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|
|
|
|
|
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|||
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Total liabilities and common shareholders’ equity |
|
$ |
19,418.1 |
|
$ |
19,795.8 |
|
$ |
19,015.1 |
|
|
|
|
|
|
|
|
|
|
|||
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Common shares outstanding (000’s) |
|
10,779 |
|
10,774 |
|
10,773 |
|
|||
|
Common and equivalent shares outstanding (000’s) |
|
10,814 |
|
10,818 |
|
10,819 |
|
|||
1
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(millions, except per share amounts)
(Unaudited)
|
|
|
Three Months Ended |
|
Year Ended |
|
||||||||
|
|
|
2005 |
|
2004 |
|
2005 |
|
2004 |
|
||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
||||
|
Earned insurance and reinsurance premiums |
|
$ |
917.8 |
|
$ |
999.1 |
|
$ |
3,798.6 |
|
$ |
3,820.5 |
|
|
Net investment income |
|
102.2 |
|
113.3 |
|
491.5 |
|
360.9 |
|
||||
|
Net realized investment gains (losses) |
|
(6.7 |
) |
71.3 |
|
112.6 |
|
181.1 |
|
||||
|
Other revenue |
|
44.8 |
|
64.4 |
|
229.2 |
|
190.5 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total revenues |
|
1,058.1 |
|
1,248.1 |
|
4,631.9 |
|
4,553.0 |
|
||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Loss and loss adjustment expenses |
|
739.1 |
|
656.6 |
|
2,858.2 |
|
2,591.1 |
|
||||
|
Insurance and reinsurance acquisition expenses |
|
188.3 |
|
199.2 |
|
761.2 |
|
744.4 |
|
||||
|
Other underwriting expenses |
|
72.7 |
|
133.7 |
|
428.9 |
|
520.4 |
|
||||
|
General and administrative expenses |
|
18.1 |
|
106.9 |
|
156.8 |
|
309.3 |
|
||||
|
Accretion of fair value adjustment to loss and loss adjustment expense reserves |
|
8.8 |
|
10.2 |
|
36.9 |
|
43.3 |
|
||||
|
Interest expense on debt |
|
9.7 |
|
13.5 |
|
44.5 |
|
49.1 |
|
||||
|
Interest expense - dividends on preferred stock subject to mandatory redemption |
|
7.6 |
|
7.6 |
|
30.3 |
|
30.3 |
|
||||
|
Interest expense - accretion on preferred stock subject to mandatory redemption |
|
6.0 |
|
4.7 |
|
22.1 |
|
17.3 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total expenses |
|
1,050.3 |
|
1,132.4 |
|
4,338.9 |
|
4,305.2 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Pretax income (loss) |
|
7.8 |
|
115.7 |
|
293.0 |
|
247.8 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income tax benefit (provision) |
|
19.6 |
|
18.7 |
|
(36.5 |
) |
(47.0 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income before equity in earnings of unconsolidated affiliates and extraordinary item |
|
27.4 |
|
134.4 |
|
256.5 |
|
200.8 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Equity in earnings of unconsolidated insurance affiliates |
|
5.9 |
|
10.6 |
|
33.6 |
|
37.4 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income before extraordinary item |
|
33.3 |
|
145.0 |
|
290.1 |
|
238.2 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Excess of fair value of acquired net assets over cost |
|
— |
|
19.8 |
|
— |
|
180.5 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income |
|
33.3 |
|
164.8 |
|
290.1 |
|
418.7 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Change in net unrealized gains on investments |
|
(54.9 |
) |
38.9 |
|
(182.2 |
) |
130.1 |
|
||||
|
Change in foreign currency translation and other |
|
(4.9 |
) |
37.8 |
|
(71.9 |
) |
46.4 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Comprehensive net income (loss) |
|
(26.5 |
) |
241.5 |
|
36.0 |
|
595.2 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Deduct: Change in net unrealized gains and losses from Symetra’s fixed maturity portfolio |
|
15.2 |
|
(8.5 |
) |
32.4 |
|
(56.6 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted comprehensive net income (loss) |
|
$ |
(11.3 |
) |
$ |
233.0 |
|
$ |
68.4 |
|
$ |
538.6 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic earnings per share: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income before extraordinary item |
|
$ |
3.10 |
|
$ |
13.48 |
|
$ |
26.96 |
|
$ |
24.05 |
|
|
Net income |
|
3.10 |
|
15.31 |
|
26.96 |
|
42.28 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted earnings per share: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income before extraordinary item |
|
$ |
2.82 |
|
$ |
13.48 |
|
$ |
26.56 |
|
$ |
22.67 |
|
|
Net income |
|
2.82 |
|
15.31 |
|
26.56 |
|
39.92 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Dividends declared and paid per common share |
|
$ |
2.00 |
|
$ |
— |
|
$ |
8.00 |
|
$ |
1.00 |
|
2
WHITE MOUNTAINS INSURANCE GROUP, LTD.
YTD SEGMENT INCOME STATEMENT
(in millions)
(Unaudited)
For the Year Ended December 31, 2005
|
|
|
OneBeacon |
|
WM Re |
|
Esurance |
|
Other |
|
Total |
|
|||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earned insurance and reinsurance premiums |
|
$ |
2,118.4 |
|
$ |
1,371.6 |
|
$ |
306.8 |
|
$ |
1.8 |
|
$ |
3,798.6 |
|
|
Net investment income |
|
238.1 |
|
148.9 |
|
9.8 |
|
94.7 |
|
491.5 |
|
|||||
|
Net realized investment gains (losses) |
|
123.8 |
|
76.8 |
|
2.1 |
|
(90.1 |
) |
112.6 |
|
|||||
|
Other revenue |
|
134.0 |
|
33.5 |
|
3.0 |
|
58.7 |
|
229.2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total revenues |
|
2,614.3 |
|
1,630.8 |
|
321.7 |
|
65.1 |
|
4,631.9 |
|
|||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loss and loss adjustment expenses |
|
1,401.5 |
|
1,237.9 |
|
206.2 |
|
12.6 |
|
2,858.2 |
|
|||||
|
Insurance and reinsurance acquisition expenses |
|
390.7 |
|
279.6 |
|
90.8 |
|
0.1 |
|
761.2 |
|
|||||
|
Other underwriting expenses |
|
283.1 |
|
107.0 |
|
37.2 |
|
1.6 |
|
428.9 |
|
|||||
|
General and administrative expenses |
|
88.4 |
|
12.4 |
|
— |
|
56.0 |
|
156.8 |
|
|||||
|
Accretion of fair value adjustment to loss and lae reserves |
|
— |
|
10.9 |
|
— |
|
26.0 |
|
36.9 |
|
|||||
|
Interest expense on debt |
|
1.4 |
|
0.4 |
|
— |
|
42.7 |
|
44.5 |
|
|||||
|
Interest expense - dividends and accretion on preferred stock subject to mandatory redemption |
|
— |
|
— |
|
— |
|
52.4 |
|
52.4 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total expenses |
|
2,165.1 |
|
1,648.2 |
|
334.2 |
|
191.4 |
|
4,338.9 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Pretax income (loss) |
|
$ |
449.2 |
|
$ |
(17.4 |
) |
$ |
(12.5 |
) |
$ |
(126.3 |
) |
$ |
293.0 |
|
For the Year Ended December 31, 2004
|
|
|
OneBeacon |
|
WM Re |
|
Esurance |
|
Other |
|
Total |
|
|||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earned insurance and reinsurance premiums |
|
$ |
2,378.5 |
|
$ |
1,265.5 |
|
$ |
176.5 |
|
$ |
— |
|
$ |
3,820.5 |
|
|
Net investment income |
|
221.4 |
|
98.5 |
|
3.5 |
|
37.5 |
|
360.9 |
|
|||||
|
Net realized investment gains |
|
129.6 |
|
29.6 |
|
1.1 |
|
20.8 |
|
181.1 |
|
|||||
|
Other revenue |
|
141.8 |
|
36.1 |
|
2.2 |
|
10.4 |
|
190.5 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total revenues |
|
2,871.3 |
|
1,429.7 |
|
183.3 |
|
68.7 |
|
4,553.0 |
|
|||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loss and loss adjustment expenses |
|
1,545.2 |
|
918.9 |
|
122.4 |
|
4.6 |
|
2,591.1 |
|
|||||
|
Insurance and reinsurance acquisition expenses |
|
442.3 |
|
271.8 |
|
30.3 |
|
— |
|
744.4 |
|
|||||
|
Other underwriting expenses |
|
369.2 |
|
122.9 |
|
26.8 |
|
1.5 |
|
520.4 |
|
|||||
|
General and administrative expenses |
|
122.2 |
|
15.1 |
|
— |
|
172.0 |
|
309.3 |
|
|||||
|
Accretion of fair value adjustment to loss and lae reserves |
|
— |
|
10.1 |
|
— |
|
33.2 |
|
43.3 |
|
|||||
|
Interest expense on debt |
|
1.0 |
|
3.8 |
|
— |
|
44.3 |
|
49.1 |
|
|||||
|
Interest expense - dividends and accretion on preferred stock subject to mandatory redemption |
|
— |
|
— |
|
— |
|
47.6 |
|
47.6 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total expenses |
|
2,479.9 |
|
1,342.6 |
|
179.5 |
|
303.2 |
|
4,305.2 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Pretax income (loss) |
|
$ |
391.4 |
|
$ |
87.1 |
|
$ |
3.8 |
|
$ |
(234.5 |
) |
$ |
247.8 |
|
3
WHITE MOUNTAINS INSURANCE GROUP, LTD.
QTD SEGMENT INCOME STATEMENT
(in millions)
(Unaudited)
For the Three Months Ended December 31, 2005
|
|
|
OneBeacon |
|
WM Re |
|
Esurance |
|
Other |
|
Total |
|
|||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earned insurance and reinsurance premiums |
|
$ |
496.4 |
|
$ |
327.6 |
|
$ |
93.8 |
|
$ |
— |
|
$ |
917.8 |
|
|
Net investment income |
|
46.4 |
|
39.8 |
|
3.3 |
|
12.7 |
|
102.2 |
|
|||||
|
Net realized investment gains (losses) |
|
(22.8 |
) |
45.8 |
|
(1.2 |
) |
(28.5 |
) |
(6.7 |
) |
|||||
|
Other revenue |
|
35.1 |
|
3.1 |
|
0.7 |
|
5.9 |
|
44.8 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total revenues |
|
555.1 |
|
416.3 |
|
96.6 |
|
(9.9 |
) |
1,058.1 |
|
|||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loss and loss adjustment expenses |
|
341.0 |
|
323.1 |
|
64.7 |
|
10.3 |
|
739.1 |
|
|||||
|
Insurance and reinsurance acquisition expenses |
|
90.7 |
|
68.8 |
|
28.8 |
|
— |
|
188.3 |
|
|||||
|
Other underwriting expenses |
|
35.3 |
|
24.9 |
|
12.2 |
|
0.3 |
|
72.7 |
|
|||||
|
General and administrative expenses |
|
35.7 |
|
3.4 |
|
— |
|
(21.0 |
) |
18.1 |
|
|||||
|
Accretion of fair value adjustment to loss and lae reserves |
|
— |
|
2.3 |
|
— |
|
6.5 |
|
8.8 |
|
|||||
|
Interest expense on debt |
|
0.3 |
|
(1.3 |
) |
— |
|
10.7 |
|
9.7 |
|
|||||
|
Interest expense - dividends and accretion on preferred stock subject to mandatory redemption |
|
— |
|
— |
|
— |
|
13.6 |
|
13.6 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total expenses |
|
503.0 |
|
421.2 |
|
105.7 |
|
20.4 |
|
1,050.3 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Pretax income (loss) |
|
$ |
52.1 |
|
$ |
(4.9 |
) |
$ |
(9.1 |
) |
$ |
(30.3 |
) |
$ |
7.8 |
|
For the Three Months Ended December 31, 2004
|
|
|
OneBeacon |
|
WM Re |
|
Esurance |
|
Other |
|
Total |
|
|||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earned insurance and reinsurance premiums |
|
$ |
584.0 |
|
$ |
362.1 |
|
$ |
53.0 |
|
$ |
— |
|
$ |
999.1 |
|
|
Net investment income |
|
59.7 |
|
38.3 |
|
1.3 |
|
14.0 |
|
113.3 |
|
|||||
|
Net realized investment gains |
|
22.6 |
|
20.6 |
|
0.5 |
|
27.6 |
|
71.3 |
|
|||||
|
Other revenue |
|
48.8 |
|
13.1 |
|
0.9 |
|
1.6 |
|
64.4 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total revenues |
|
715.1 |
|
434.1 |
|
55.7 |
|
43.2 |
|
1,248.1 |
|
|||||
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Loss and loss adjustment expenses |
|
365.0 |
|
263.6 |
|
33.4 |
|
(5.4 |
) |
656.6 |
|
|||||
|
Insurance and reinsurance acquisition expenses |
|
114.2 |
|
74.6 |
|
10.4 |
|
— |
|
199.2 |
|
|||||
|
Other underwriting expenses |
|
85.2 |
|
39.8 |
|
8.5 |
|
0.2 |
|
133.7 |
|
|||||
|
General and administrative expenses |
|
31.4 |
|
3.5 |
|
(0.3 |
) |
72.3 |
|
106.9 |
|
|||||
|
Accretion of fair value adjustment to loss and lae reserves |
|
— |
|
3.7 |
|
— |
|
6.5 |
|
10.2 |
|
|||||
|
Interest expense on debt |
|
0.3 |
|
1.1 |
|
— |
|
12.1 |
|
13.5 |
|
|||||
|
Interest expense - dividends and accretion on preferred stock subject to mandatory redemption |
|
— |
|
— |
|
— |
|
12.3 |
|
12.3 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total expenses |
|
596.1 |
|
386.3 |
|
52.0 |
|
98.0 |
|
1,132.4 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Pretax income (loss) |
|
$ |
119.0 |
|
$ |
47.8 |
|
$ |
3.7 |
|
$ |
(54.8 |
) |
$ |
115.7 |
|
4