WHITE MOUNTAINS REPORTS THIRD QUARTER RESULTS
White Mountains Insurance Group (NYSE: WTM) reported strong Q3 2024 results with book value per share of $1,795 and adjusted book value per share of $1,883. The company saw increases of 4% and 6% respectively in Q3, and 9% and 11% in the first nine months of 2024. Ark achieved a 79% combined ratio and $374 million in gross written premiums, up 49% year-over-year. Comprehensive income attributable to shareholders was $180 million in Q3 and $361 million in the first nine months of 2024. The company maintains approximately $650 million in undeployed capital.
White Mountains Insurance Group (NYSE: WTM) ha riportato risultati solidi per il terzo trimestre del 2024, con un valore contabile per azione di $1.795 e un valore contabile rettificato per azione di $1.883. L'azienda ha registrato aumenti del 4% e del 6% rispettivamente nel terzo trimestre, e del 9% e dell'11% nei primi nove mesi del 2024. Ark ha raggiunto un rapporto combinato del 79% e $374 milioni in premi lordi scritti, in aumento del 49% rispetto all'anno precedente. Il reddito complessivo attribuibile agli azionisti è stato di $180 milioni nel terzo trimestre e di $361 milioni nei primi nove mesi del 2024. L'azienda mantiene circa $650 milioni in capitale non investito.
White Mountains Insurance Group (NYSE: WTM) reportó resultados sólidos en el tercer trimestre de 2024, con un valor en libros por acción de $1,795 y un valor en libros ajustado por acción de $1,883. La compañía vio aumentos del 4% y 6% respectivamente en el tercer trimestre, y del 9% y 11% en los primeros nueve meses de 2024. Ark logró una ratio combinada del 79% y $374 millones en primas brutas escritas, un aumento del 49% interanual. El ingreso integral atribuible a los accionistas fue de $180 millones en el tercer trimestre y $361 millones en los primeros nueve meses de 2024. La compañía mantiene aproximadamente $650 millones en capital no desplegado.
화이트 마운틴스 인슈어런스 그룹 (NYSE: WTM)는 2024년 3분기 실적이 우수하다고 보고하며, 주당 장부 가치가 $1,795이고 조정된 주당 장부 가치가 $1,883임을 발표했습니다. 회사는 3분기에 각각 4%와 6%의 증가를 보았으며, 2024년 첫 아홉 달 동안에는 9%와 11% 각각 증가했습니다. Ark는 79%의 결합 비율과 $374백만의 총 서면 보험료를 달성했으며, 이는 전년 대비 49% 증가한 수치입니다. 종합 소득은 3분기에 주주에게 $180백만, 2024년 첫 아홉 달 동안에는 $361백만이었습니다. 회사는 약 $650백만의 미배치 자본을 유지하고 있습니다.
White Mountains Insurance Group (NYSE: WTM) a rapporté de solides résultats au troisième trimestre 2024, avec une valeur comptable par action de 1 795 $ et une valeur comptable ajustée par action de 1 883 $. L'entreprise a enregistré des augmentations respectives de 4 % et 6 % au troisième trimestre, et de 9 % et 11 % au cours des neuf premiers mois de 2024. Ark a atteint un ratio combiné de 79 % et 374 millions de dollars de primes brutes souscrites, soit une augmentation de 49 % par rapport à l'année précédente. Le revenu global attribuable aux actionnaires s'élevait à 180 millions de dollars au troisième trimestre et à 361 millions de dollars au cours des neuf premiers mois de 2024. L'entreprise maintient environ 650 millions de dollars de capital non déployé.
White Mountains Insurance Group (NYSE: WTM) hat für das dritte Quartal 2024 starke Ergebnisse berichtet, mit einem Buchwert pro Aktie von 1.795 $ und einem angepassten Buchwert pro Aktie von 1.883 $. Das Unternehmen verzeichnete im dritten Quartal entsprechende Zuwächse von 4 % und 6 % sowie 9 % und 11 % in den ersten neun Monaten 2024. Ark erzielte eine kombinierte Quote von 79 % und 374 Millionen $ an brutto geschriebenen Prämien, ein Anstieg von 49 % im Jahresvergleich. Der umfassende Gewinn, der den Aktionären zuzurechnen ist, betrug im dritten Quartal 180 Millionen $ und in den ersten neun Monaten 2024 361 Millionen $. Das Unternehmen hält etwa 650 Millionen $ an nicht investiertem kapital.
- Comprehensive income increased to $180M in Q3 2024 from $23M in Q3 2023
- Ark's gross written premiums grew 49% YoY to $374M in Q3
- Book value per share increased 9% in first nine months of 2024
- Ark achieved strong 79% combined ratio in Q3
- MediaAlpha investment value increased 38% in Q3
- Pre-tax loss of $63M in HG Global segment for Q3 2024
- $99M pre-tax unrealized loss on BAM surplus notes in Q3
- Hurricane Milton represents significant industry loss event in Q4
Insights
White Mountains reported strong Q3 2024 results with notable growth across key segments. Book value per share increased 4% to
Key highlights include
The insurance operations demonstrate robust performance and market resilience. Ark's
HG Global's stable premium generation and Bamboo's dramatic growth in managed premiums highlight successful diversification. The company's ability to maintain strong performance across different insurance segments while managing catastrophe exposure (including Hurricane Milton) demonstrates effective risk management and operational execution.
As of July 1, 2024, White Mountains no longer consolidates BAM. As of September 30, 2024, the BAM surplus notes were fair valued in accordance with GAAP at
Manning Rountree, CEO, commented, "ABVPS was up
Comprehensive income attributable to common shareholders was
Ark/WM Outrigger
The Ark/WM Outrigger segment's combined ratio was
Ark's combined ratio was
Ark reported gross written premiums of
Ark reported pre-tax income of
Ian Beaton, CEO of Ark, said, "Ark had a good third quarter. The combined ratio was
WM Outrigger Re's combined ratio was
Hurricane Milton represents a significant industry loss event in the fourth quarter. Industry estimates are preliminary and range widely. Ark does not currently expect that Milton losses will cause full year 2024 actual catastrophe losses for Ark/WM Outrigger to diverge materially from full year 2024 planned catastrophe losses.
HG Global
Effective July 1, 2024, White Mountains no longer consolidates BAM. Upon deconsolidation, the BAM surplus notes were fair valued in accordance with GAAP at
HG Global reported gross written premiums of
HG Global reported pre-tax income (loss) of
Kevin Pearson, President of HG Global, said, "HG Global had a solid quarter with gross written premiums of
We encourage you to read BAM's third quarter statutory financial statements and operating supplement, which are available on BAM's website at https://bambonds.com/about-bam/credit-rating-and-finanical-information/.
Kudu
Kudu reported total revenues of
Kudu reported total revenues of
Rob Jakacki, CEO of Kudu, said, "We enjoyed another strong quarter. Trailing 12 months net investment income increased
Bamboo
Bamboo reported commission and fee revenues of
Managed premiums, which represent the total premiums placed by Bamboo, were
John Chu, CEO of Bamboo, said, "Bamboo had another strong quarter. Managed premiums doubled year-over-year to
MediaAlpha
As of September 30, 2024, White Mountains owned 17.9 million shares of MediaAlpha, representing a
We encourage you to read MediaAlpha's third 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
Investments
The total consolidated portfolio return was
The total consolidated portfolio return was
Mark Plourde, President of White Mountains Advisors, said, "Excluding MediaAlpha, the total portfolio was up
Additional Information
White Mountains is a
CONTACT: Rob Seelig
(603) 640-2212
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(millions) | ||||||
(Unaudited) | ||||||
September 30, 2024 | December 31, 2023 | September 30, 2023 | ||||
Assets | ||||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||||
Fixed maturity investments | $ 1,461.2 | $ 866.8 | $ 775.0 | |||
Common equity securities | 435.6 | 400.6 | 384.9 | |||
Short-term investments | 579.1 | 962.8 | 850.0 | |||
Other long-term investments | 544.8 | 440.9 | 416.6 | |||
Total investments | 3,020.7 | 2,671.1 | 2,426.5 | |||
Cash (restricted | 148.8 | 90.5 | 129.6 | |||
Reinsurance recoverables | 748.0 | 442.0 | 538.4 | |||
Insurance premiums receivable | 993.0 | 612.2 | 781.6 | |||
Deferred acquisition costs | 199.7 | 145.3 | 178.7 | |||
Goodwill and other intangible assets | 292.5 | 292.5 | 292.5 | |||
Other assets | 175.8 | 125.0 | 66.9 | |||
Total P&C Insurance and Reinsurance assets | 5,578.5 | 4,378.6 | 4,414.2 | |||
Financial Guarantee (HG Global) | ||||||
Fixed maturity investments | 636.1 | 1,012.3 | 932.2 | |||
Short-term investments | 34.6 | 70.6 | 80.1 | |||
Total investments | 670.7 | 1,082.9 | 1,012.3 | |||
Cash | 1.2 | 6.7 | 4.9 | |||
BAM surplus notes, at fair value | 411.1 | — | — | |||
Insurance premiums receivable | 7.9 | 5.5 | 5.5 | |||
Deferred acquisition costs | 83.2 | 40.1 | 38.5 | |||
Other assets | 27.8 | 36.8 | 22.2 | |||
Total Financial Guarantee assets | 1,201.9 | 1,172.0 | 1,083.4 | |||
Asset Management (Kudu) | ||||||
Short-term investments | 20.3 | 29.3 | 17.3 | |||
Other long-term investments | 936.8 | 896.3 | 780.7 | |||
Total investments | 957.1 | 925.6 | 798.0 | |||
Cash | 76.7 | 1.4 | 5.4 | |||
Accrued investment income | 15.7 | 17.6 | 15.8 | |||
Goodwill and other intangible assets | 8.0 | 8.3 | 8.4 | |||
Other assets | 36.6 | 6.5 | 8.3 | |||
Total Asset Management assets | 1,094.1 | 959.4 | 835.9 | |||
P&C Insurance Distribution (Bamboo) | ||||||
Fixed maturity investments | 38.9 | — | — | |||
Short-term investments | 14.6 | — | — | |||
Total investments | 53.5 | — | — | |||
Cash (restricted | 91.1 | — | — | |||
Premiums, commissions and fees receivable | 72.7 | — | — | |||
Goodwill and other intangible assets | 359.0 | — | — | |||
Other assets | 23.3 | — | — | |||
Total P&C Insurance Distribution assets | 599.6 | — | — | |||
Other Operations | ||||||
Fixed maturity investments | 286.1 | 230.2 | 270.7 | |||
Common equity securities | 219.8 | 137.8 | 252.1 | |||
Investment in MediaAlpha | 323.4 | 254.9 | 188.8 | |||
Short-term investments | 241.7 | 425.2 | 215.5 | |||
Other long-term investments | 589.5 | 661.0 | 698.5 | |||
Total investments | 1,660.5 | 1,709.1 | 1,625.6 | |||
Cash | 28.2 | 23.8 | 22.9 | |||
Insurance premiums receivable | 34.3 | — | — | |||
Goodwill and other intangible assets | 66.2 | 69.8 | 71.2 | |||
Other assets | 74.2 | 73.2 | 89.6 | |||
Total Other Operations assets | 1,863.4 | 1,875.9 | 1,809.3 | |||
Total assets | $ 10,337.5 | $ 8,385.9 | $ 8,142.8 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||
(millions) | ||||||
(Unaudited) | ||||||
September 30, 2024 | December 31, 2023 | September 30, 2023 | ||||
Liabilities | ||||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||||
Loss and loss adjustment expense reserves | $ 2,133.0 | $ 1,605.1 | $ 1,571.8 | |||
Unearned insurance premiums | 1,149.8 | 743.6 | 984.6 | |||
Debt | 156.8 | 185.5 | 184.6 | |||
Reinsurance payable | 230.2 | 81.1 | 146.3 | |||
Contingent consideration | 141.5 | 94.0 | 62.1 | |||
Other liabilities | 188.9 | 166.8 | 132.0 | |||
Total P&C Insurance and Reinsurance liabilities | 4,000.2 | 2,876.1 | 3,081.4 | |||
Financial Guarantee (HG Global) | ||||||
Unearned insurance premiums | 287.0 | 325.8 | 312.3 | |||
Debt | 147.3 | 146.9 | 146.8 | |||
Other liabilities | 19.6 | 59.0 | 59.9 | |||
Total Financial Guarantee liabilities | 453.9 | 531.7 | 519.0 | |||
Asset Management (Kudu) | ||||||
Debt | 218.5 | 203.8 | 203.7 | |||
Other liabilities | 75.9 | 71.6 | 53.6 | |||
Total Asset Management liabilities | 294.4 | 275.4 | 257.3 | |||
P&C Insurance Distribution (Bamboo) | ||||||
Loss and loss adjustment expense reserves | 17.7 | — | — | |||
Unearned insurance premiums | 29.9 | — | — | |||
Premiums and commissions payable | 93.7 | — | — | |||
Other liabilities | 30.7 | — | — | |||
Total P&C Insurance Distribution liabilities | 172.0 | — | — | |||
Other Operations | ||||||
Loss and loss adjustment expense reserves | 8.1 | — | — | |||
Unearned insurance premiums | 28.5 | — | — | |||
Debt | 22.3 | 28.4 | 29.6 | |||
Accrued incentive compensation | 64.5 | 87.7 | 64.0 | |||
Other liabilities | 33.8 | 25.0 | 27.3 | |||
Total Other Operations liabilities | 157.2 | 141.1 | 120.9 | |||
Total liabilities | 5,077.7 | 3,824.3 | 3,978.6 | |||
Equity | ||||||
White Mountains's common shareholder's equity | ||||||
White Mountains's common shares and paid-in surplus | 563.3 | 551.3 | 547.5 | |||
Retained earnings | 4,048.3 | 3,690.8 | 3,404.3 | |||
Accumulated other comprehensive income (loss), after tax: | ||||||
Net unrealized gains (losses) from foreign currency translation | (1.0) | (1.6) | (2.7) | |||
Total White Mountains's common shareholders' equity | 4,610.6 | 4,240.5 | 3,949.1 | |||
Noncontrolling interests | 649.2 | 321.1 | 215.1 | |||
Total equity | 5,259.8 | 4,561.6 | 4,164.2 | |||
Total liabilities and equity | $ 10,337.5 | $ 8,385.9 | $ 8,142.8 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
BOOK VALUE AND ADJUSTED BOOK VALUE PER SHARE | ||||||||
(Unaudited) | ||||||||
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | |||||
Book value per share numerators (in millions): | ||||||||
White Mountains's common shareholders' equity - GAAP book value per share numerator | $ 4,610.6 | $ 4,422.6 | $ 4,240.5 | $ 3,949.1 | ||||
HG Global's unearned premium reserve (1) | 278.1 | 271.7 | 265.4 | 254.2 | ||||
HG Global's net deferred acquisition costs (1) | (80.6) | (78.5) | (76.5) | (73.1) | ||||
Time value of money discount on expected future payments on the BAM surplus notes (1) (2) | — | (84.7) | (87.9) | (90.2) | ||||
Adjusted book value per share numerator | $ 4,808.1 | $ 4,531.1 | $ 4,341.5 | $ 4,040.0 | ||||
Book value per share denominators (in thousands of shares): | ||||||||
Common shares outstanding - GAAP book value per share denominator | 2,568.1 | 2,568.3 | 2,560.5 | 2,560.5 | ||||
Unearned restricted common shares | (15.0) | (18.3) | (12.4) | (15.7) | ||||
Adjusted book value per share denominator | 2,553.1 | 2,550.0 | 2,548.1 | 2,544.8 | ||||
GAAP book value per share | $ 1,795.31 | $ 1,722.02 | $ 1,656.14 | $ 1,542.36 | ||||
Adjusted book value per share | $ 1,883.24 | $ 1,776.89 | $ 1,703.82 | $ 1,587.59 | ||||
(1) Amount reflects White Mountains's preferred share ownership in HG Global of | ||||||||
(2) For periods subsequent to July 1, 2024, White Mountains carries the BAM surplus notes under GAAP at fair value, which incorporates time value into its estimate. | ||||||||
September 30, 2024 | June 30, 2024 | December 31, 2023 | September 30, 2023 | |||||
Quarter-to-date change in GAAP book value per share, including dividends: | 4.3 % | (1.2) % | 7.4 % | 0.7 % | ||||
Quarter-to-date change in adjusted book value per share, including dividends: | 6.0 % | (1.1) % | 7.3 % | 0.7 % | ||||
Year-to-date change in GAAP book value per share, including dividends: | 8.5 % | 4.0 % | 13.8 % | 5.9 % | ||||
Year-to-date change in adjusted book value per share, including dividends: | 10.6 % | 4.3 % | 14.0 % | 6.2 % | ||||
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 September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenues: | ||||||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||||||
Earned insurance premiums | $ 552.2 | $ 498.9 | $ 1,173.3 | $ 1,047.3 | ||||
Net investment income | 24.3 | 16.9 | 66.5 | 41.2 | ||||
Net realized and unrealized investment gains (losses) | 53.2 | (6.6) | 84.1 | 35.9 | ||||
Other revenues | 3.7 | 3.6 | 9.6 | (1.1) | ||||
Total P&C Insurance and Reinsurance revenues | 633.4 | 512.8 | 1,333.5 | 1,123.3 | ||||
Financial Guarantee (HG Global) | ||||||||
Earned insurance premiums | 7.5 | 7.9 | 24.3 | 23.3 | ||||
Net investment income | 6.0 | 8.1 | 26.1 | 22.9 | ||||
Net realized and unrealized investment gains (losses) | 22.5 | (24.1) | 8.1 | (17.0) | ||||
Interest income from BAM surplus notes | 7.9 | — | 7.9 | — | ||||
Change in fair value of BAM surplus notes | 15.8 | — | 15.8 | — | ||||
Unrealized loss on deconsolidation of BAM | (114.5) | — | (114.5) | — | ||||
Other revenues | — | .7 | 1.1 | 2.0 | ||||
Total Financial Guarantee revenues | (54.8) | (7.4) | (31.2) | 31.2 | ||||
Asset Management (Kudu) | ||||||||
Net investment income | 17.2 | 15.1 | 50.1 | 44.0 | ||||
Net realized and unrealized investment gains (losses) | 29.5 | 11.2 | 77.5 | 45.4 | ||||
Other revenues | .5 | — | .5 | — | ||||
Total Asset Management revenues | 47.2 | 26.3 | 128.1 | 89.4 | ||||
P&C Insurance Distribution (Bamboo) | ||||||||
Commission and fee revenues | 42.7 | — | 97.3 | — | ||||
Earned insurance premiums | 10.6 | — | 27.0 | — | ||||
Other revenues | 2.4 | — | 4.5 | — | ||||
Total P&C Insurance Distribution revenues | 55.7 | — | 128.8 | — | ||||
Other Operations | ||||||||
Earned insurance premiums | 11.2 | — | 19.8 | — | ||||
Net investment income | 9.6 | 8.0 | 27.9 | 22.0 | ||||
Net realized and unrealized investment gains (losses) | 29.7 | 8.0 | 60.4 | 125.8 | ||||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | 88.2 | (46.8) | 159.7 | (38.9) | ||||
Commission and fee revenues | 4.1 | 3.5 | 11.1 | 10.0 | ||||
Other revenues | 14.8 | 15.2 | 43.7 | 67.1 | ||||
Total Other Operations revenues | 157.6 | (12.1) | 322.6 | 186.0 | ||||
Total revenues | $ 839.1 | $ 519.6 | $ 1,881.8 | $ 1,429.9 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) | ||||||||
(millions) | ||||||||
(Unaudited) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Expenses: | ||||||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||||||
Loss and loss adjustment expenses | $ 288.3 | $ 265.8 | $ 644.0 | $ 581.1 | ||||
Acquisition expenses | 96.3 | 90.3 | 230.8 | 211.5 | ||||
General and administrative expenses | 68.9 | 35.4 | 154.0 | 105.5 | ||||
Change in fair value of contingent consideration | 34.2 | 17.0 | 47.5 | 16.8 | ||||
Interest expense | 4.9 | 5.5 | 15.0 | 15.7 | ||||
Total P&C Insurance and Reinsurance expenses | 492.6 | 414.0 | 1,091.3 | 930.6 | ||||
Financial Guarantee (HG Global) | ||||||||
Acquisition expenses | 1.9 | 2.1 | 6.3 | 6.3 | ||||
General and administrative expenses | .3 | 17.5 | 34.8 | 49.7 | ||||
Interest expense | 5.8 | 3.8 | 13.4 | 10.8 | ||||
Total Financial Guarantee expenses | 8.0 | 23.4 | 54.5 | 66.8 | ||||
Asset Management (Kudu) | ||||||||
General and administrative expenses | 3.6 | 4.5 | 10.5 | 12.3 | ||||
Interest expense | 5.7 | 5.5 | 16.7 | 15.5 | ||||
Total Asset Management expenses | 9.3 | 10.0 | 27.2 | 27.8 | ||||
P&C Insurance Distribution (Bamboo) | ||||||||
Broker commission expenses | 15.9 | — | 37.9 | — | ||||
Loss and loss adjustment expenses | 4.4 | — | 14.5 | — | ||||
Acquisition expenses | 3.7 | — | 9.7 | — | ||||
General and administrative expenses | 16.2 | — | 43.9 | — | ||||
Total P&C Insurance Distribution expenses | 40.2 | — | 106.0 | — | ||||
Other Operations | ||||||||
Loss and loss adjustment expenses | 4.2 | — | 8.1 | — | ||||
Acquisition expenses | 4.5 | — | 7.1 | — | ||||
Cost of sales | 7.6 | 8.0 | 22.2 | 33.5 | ||||
General and administrative expenses | 32.9 | 42.2 | 126.4 | 130.7 | ||||
Interest expense | .3 | .9 | 1.6 | 2.9 | ||||
Total Other Operations expenses | 49.5 | 51.1 | 165.4 | 167.1 | ||||
Total expenses | 599.6 | 498.5 | 1,444.4 | 1,192.3 | ||||
Pre-tax income (loss) | 239.5 | 21.1 | 437.4 | 237.6 | ||||
Income tax (expense) benefit | (11.6) | (7.3) | (28.9) | (19.4) | ||||
Net income (loss) | 227.9 | 13.8 | 408.5 | 218.2 | ||||
Net (income) loss attributable to noncontrolling interests | (48.9) | 9.8 | (47.7) | 4.5 | ||||
Net income (loss) attributable to White Mountains's common shareholders | $ 179.0 | $ 23.6 | $ 360.8 | $ 222.7 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
(millions) | ||||||||
(Unaudited) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Net income (loss) attributable to White Mountains's common shareholders | $ 179.0 | $ 23.6 | $ 360.8 | $ 222.7 | ||||
Other comprehensive income (loss), net of tax | 1.3 | (1.7) | 1.1 | .9 | ||||
Comprehensive income (loss) | 180.3 | 21.9 | 361.9 | 223.6 | ||||
Other comprehensive (income) loss attributable to noncontrolling interests | (.5) | .7 | (.5) | (.1) | ||||
Comprehensive income (loss) attributable to White Mountains's common shareholders | $ 179.8 | $ 22.6 | $ 361.4 | $ 223.5 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
EARNINGS PER SHARE | ||||||||
(Unaudited) | ||||||||
Earnings (loss) per share attributable to White Mountains's common shareholders | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Basic earnings (loss) per share | $ 69.68 | $ 9.19 | $ 140.66 | $ 86.82 | ||||
Diluted earnings (loss) per share | $ 69.68 | $ 9.19 | $ 140.66 | $ 86.82 | ||||
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 September 30, 2024 | Ark/WM Outrigger | |||||||||||||
Ark | WM | HG Global | Kudu | Bamboo | Other | Total | ||||||||
Revenues: | ||||||||||||||
Earned insurance premiums | $ 507.2 | $ 45.0 | $ 7.5 | $ — | $ 10.6 | $ 11.2 | $ 581.5 | |||||||
Net investment income (1) | 21.3 | 3.0 | 6.0 | 17.2 | .6 | 9.6 | 57.7 | |||||||
Net realized and unrealized investment gains (losses) (1) | 53.2 | — | 22.5 | 29.5 | .7 | 29.7 | 135.6 | |||||||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | — | — | — | — | — | 88.2 | 88.2 | |||||||
Interest income from BAM surplus notes | — | — | 7.9 | — | — | — | 7.9 | |||||||
Change in fair value of BAM surplus notes | — | — | 15.8 | — | — | — | 15.8 | |||||||
Unrealized loss on deconsolidation of BAM | — | — | (114.5) | — | — | — | (114.5) | |||||||
Commission and fee revenues | — | — | — | — | 42.7 | 4.1 | 46.8 | |||||||
Other revenues | 3.7 | — | — | .5 | 1.1 | 14.8 | 20.1 | |||||||
Total revenues | 585.4 | 48.0 | (54.8) | 47.2 | 55.7 | 157.6 | 839.1 | |||||||
Expenses: | ||||||||||||||
Loss and loss adjustment expenses | 275.1 | 13.2 | — | — | 4.4 | 4.2 | 296.9 | |||||||
Acquisition expenses | 83.3 | 13.0 | 1.9 | — | 3.7 | 4.5 | 106.4 | |||||||
Cost of sales | — | — | — | — | — | 7.6 | 7.6 | |||||||
Broker commission expenses | — | — | — | — | 15.9 | — | 15.9 | |||||||
General and administrative expenses | 68.9 | — | .3 | 3.6 | 16.2 | 32.9 | 121.9 | |||||||
Change in fair value of contingent consideration | 34.2 | — | — | — | — | — | 34.2 | |||||||
Interest expense | 4.9 | — | 5.8 | 5.7 | — | .3 | 16.7 | |||||||
Total expenses | 466.4 | 26.2 | 8.0 | 9.3 | 40.2 | 49.5 | 599.6 | |||||||
Pre-tax income (loss) | $ 119.0 | $ 21.8 | $ (62.8) | $ 37.9 | $ 15.5 | $ 108.1 | $ 239.5 |
(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 September 30, 2023 | Ark/WM Outrigger | HG Global | ||||||||||||
Ark | WM Outrigger Re | HG Global | BAM | Kudu | Other | Total | ||||||||
Revenues: | ||||||||||||||
Earned insurance premiums | $ 438.3 | $ 60.6 | $ 6.6 | $ 1.3 | $ — | $ — | $ 506.8 | |||||||
Net investment income | 13.9 | 3.0 | 4.3 | 3.8 | 15.1 | 8.0 | 48.1 | |||||||
Net realized and unrealized investment gains (losses) | (6.6) | — | (13.6) | (10.5) | 11.2 | 8.0 | (11.5) | |||||||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | — | — | — | — | — | (46.8) | (46.8) | |||||||
Interest income (expense) from BAM surplus notes | — | — | 6.6 | (6.6) | — | — | — | |||||||
Commission and fee revenues | — | — | — | — | — | 3.5 | 3.5 | |||||||
Other revenues | 3.6 | — | — | .7 | — | 15.2 | 19.5 | |||||||
Total revenues | 449.2 | 63.6 | 3.9 | (11.3) | 26.3 | (12.1) | 519.6 | |||||||
Expenses: | ||||||||||||||
Loss and loss adjustment expenses | 258.5 | 7.3 | — | — | — | — | 265.8 | |||||||
Acquisition expenses | 71.0 | 19.3 | 2.0 | .1 | — | — | 92.4 | |||||||
Cost of sales | — | — | — | — | — | 8.0 | 8.0 | |||||||
General and administrative expenses | 35.3 | .1 | .5 | 17.0 | 4.5 | 42.2 | 99.6 | |||||||
Change in fair value of contingent consideration | 17.0 | — | — | — | — | — | 17.0 | |||||||
Interest expense | 5.5 | — | 3.8 | — | 5.5 | .9 | 15.7 | |||||||
Total expenses | 387.3 | 26.7 | 6.3 | 17.1 | 10.0 | 51.1 | 498.5 | |||||||
Pre-tax income (loss) | $ 61.9 | $ 36.9 | $ (2.4) | $ (28.4) | $ 16.3 | $ (63.2) | $ 21.1 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||||||||||
YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) | ||||||||||||||||
(millions) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Nine Months Ended September 30, 2024 | Ark/WM Outrigger | HG Global | ||||||||||||||
Ark | WM Outrigger Re | HG Global | BAM | Kudu | Bamboo | Other | Total | |||||||||
Revenues: | ||||||||||||||||
Earned insurance premiums | $ 62.8 | $ 21.5 | $ 2.8 | $ — | $ 27.0 | $ 19.8 | $ 1,244.4 | |||||||||
Net investment income (1) | 57.6 | 8.9 | 17.3 | 8.8 | 50.1 | 1.5 | 27.9 | 172.1 | ||||||||
Net realized and unrealized investment gains (losses) (1) | 84.1 | — | 13.2 | (5.1) | 77.5 | .6 | 60.4 | 230.7 | ||||||||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | — | — | — | — | — | — | 159.7 | 159.7 | ||||||||
Interest income (expense) from BAM surplus notes | — | — | 21.1 | (13.2) | — | — | — | 7.9 | ||||||||
Change in fair value of BAM surplus notes | — | — | 15.8 | — | — | — | — | 15.8 | ||||||||
Unrealized loss on deconsolidation of BAM | — | — | (114.5) | — | — | — | — | (114.5) | ||||||||
Commission and fee revenues | — | — | — | — | — | 97.3 | 11.1 | 108.4 | ||||||||
Other revenues | 9.6 | — | — | 1.1 | .5 | 2.4 | 43.7 | 57.3 | ||||||||
Total revenues | 1,261.8 | 71.7 | (25.6) | (5.6) | 128.1 | 128.8 | 322.6 | 1,881.8 | ||||||||
Expenses: | ||||||||||||||||
Loss and loss adjustment expenses | 630.4 | 13.6 | — | — | — | 14.5 | 8.1 | 666.6 | ||||||||
Acquisition expenses | 212.9 | 17.9 | 5.9 | .4 | — | 9.7 | 7.1 | 253.9 | ||||||||
Cost of sales | — | — | — | — | — | — | 22.2 | 22.2 | ||||||||
Broker commission expenses | — | — | — | — | — | 37.9 | — | 37.9 | ||||||||
General and administrative expenses | 153.9 | .1 | 1.3 | 33.5 | 10.5 | 43.9 | 126.4 | 369.6 | ||||||||
Change in fair value of contingent consideration | 47.5 | — | — | — | — | — | — | 47.5 | ||||||||
Interest expense | 15.0 | — | 13.4 | — | 16.7 | — | 1.6 | 46.7 | ||||||||
Total expenses | 1,059.7 | 31.6 | 20.6 | 33.9 | 27.2 | 106.0 | 165.4 | 1,444.4 | ||||||||
Pre-tax income (loss) | $ 202.1 | $ 40.1 | $ (46.2) | $ (39.5) | $ 100.9 | $ 22.8 | $ 157.2 | $ 437.4 |
(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 Nine Months Ended September 30, 2023 | Ark/WM Outrigger | HG Global | ||||||||||||
Ark | WM | HG Global | BAM | Kudu | Other | Total | ||||||||
Revenues: | ||||||||||||||
Earned insurance premiums | $ 971.9 | $ 75.4 | $ 19.4 | $ 3.9 | $ — | $ — | $ 1,070.6 | |||||||
Net investment income | 33.5 | 7.7 | 12.4 | 10.5 | 44.0 | 22.0 | 130.1 | |||||||
Net realized and unrealized investment gains (losses) | 35.9 | — | (11.4) | (5.6) | 45.4 | 125.8 | 190.1 | |||||||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | — | — | — | — | — | (38.9) | (38.9) | |||||||
Interest income (expense) from BAM surplus notes | — | — | 19.7 | (19.7) | — | — | — | |||||||
Commission and fee revenues | — | — | — | — | — | 10.0 | 10.0 | |||||||
Other revenues | (1.1) | — | — | 2.0 | — | 67.1 | 68.0 | |||||||
Total revenues | 1,040.2 | 83.1 | 40.1 | (8.9) | 89.4 | 186.0 | 1,429.9 | |||||||
Expenses: | ||||||||||||||
Loss and loss adjustment expenses | 573.2 | 7.9 | — | — | — | — | 581.1 | |||||||
Acquisition expenses | 189.3 | 22.2 | 5.6 | .7 | — | — | 217.8 | |||||||
Cost of sales | — | — | — | — | — | 33.5 | 33.5 | |||||||
General and administrative expenses | 105.3 | .2 | 1.9 | 47.8 | 12.3 | 130.7 | 298.2 | |||||||
Change in fair value of contingent consideration | 16.8 | — | — | — | — | — | 16.8 | |||||||
Interest expense | 15.7 | — | 10.8 | — | 15.5 | 2.9 | 44.9 | |||||||
Total expenses | 900.3 | 30.3 | 18.3 | 48.5 | 27.8 | 167.1 | 1,192.3 | |||||||
Pre-tax income (loss) | $ 139.9 | $ 52.8 | $ 21.8 | $ (57.4) | $ 61.6 | $ 18.9 | $ 237.6 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
SELECTED FINANCIAL DATA | ||||||||
($ in millions) | ||||||||
(Unaudited) | ||||||||
Ark/WM Outrigger | Three Months Ended September 30, 2024 | |||||||
Ark | WM Outrigger Re | Elimination | Total | |||||
Insurance premiums: | ||||||||
Gross written premiums | $ 373.6 | $ 8.8 | $ (8.8) | $ 373.6 | ||||
Net written premiums | $ 330.6 | $ 8.8 | $ — | $ 339.4 | ||||
Net earned premiums | $ 507.2 | $ 45.0 | $ — | $ 552.2 | ||||
Insurance expenses: | ||||||||
Loss and loss adjustment expenses | $ 275.1 | $ 13.2 | $ — | $ 288.3 | ||||
Acquisition expenses | 83.3 | 13.0 | — | 96.3 | ||||
Other underwriting expenses (1) | 40.3 | — | — | 40.3 | ||||
Total insurance expenses | $ 398.7 | $ 26.2 | $ — | $ 424.9 | ||||
Insurance ratios: | ||||||||
Loss and loss adjustment expense | 54.2 % | 29.3 % | — % | 52.2 % | ||||
Acquisition expense | 16.4 | 28.9 | — | 17.4 | ||||
Other underwriting expense | 7.9 | — | — | 7.3 | ||||
Combined Ratio | 78.5 % | 58.2 % | — % | 76.9 % |
(1) | Included within general and administrative expenses in the consolidated statement of operations. |
Ark/WM Outrigger | Three Months Ended September 30, 2023 | |||||||
Ark | WM Outrigger Re | Elimination | Total | |||||
Insurance premiums: | ||||||||
Gross written premiums | $ 251.2 | $ 6.0 | $ (6.0) | $ 251.2 | ||||
Net written premiums | $ 225.0 | $ 6.0 | $ — | $ 231.0 | ||||
Net earned premiums | $ 438.3 | $ 60.6 | $ — | $ 498.9 | ||||
Insurance expenses: | ||||||||
Loss and loss adjustment expenses | $ 258.5 | $ 7.3 | $ — | $ 265.8 | ||||
Acquisition expenses | 71.0 | 19.3 | — | 90.3 | ||||
Other underwriting expenses (1) | 25.5 | — | — | 25.5 | ||||
Total insurance expenses | $ 355.0 | $ 26.6 | $ — | $ 381.6 | ||||
Insurance ratios: | ||||||||
Loss and loss adjustment expense | 59.0 % | 12.0 % | — % | 53.3 % | ||||
Acquisition expense | 16.2 | 31.8 | — | 18.1 | ||||
Other underwriting expense | 5.8 | — | — | 5.1 | ||||
Combined Ratio | 81.0 % | 43.8 % | — % | 76.5 % |
(1) | Included within general and administrative expenses in the consolidated statement of operations. |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
SELECTED FINANCIAL DATA (CONTINUED) | ||||||||
($ in millions) | ||||||||
(Unaudited) | ||||||||
Ark/WM Outrigger | Nine Months Ended September 30, 2024 | |||||||
Ark | WM Outrigger Re | Elimination | Total | |||||
Insurance premiums: | ||||||||
Gross written premiums | $ 1,942.7 | $ 82.0 | $ (82.0) | $ 1,942.7 | ||||
Net written premiums | $ 1,358.2 | $ 82.0 | $ — | $ 1,440.2 | ||||
Net earned premiums | $ 1,110.5 | $ 62.8 | $ — | $ 1,173.3 | ||||
Insurance expenses: | ||||||||
Loss and loss adjustment expenses | $ 630.4 | $ 13.6 | $ — | $ 644.0 | ||||
Acquisition expenses | 212.9 | 17.9 | — | 230.8 | ||||
Other underwriting expenses (1) | 103.9 | — | — | 103.9 | ||||
Total insurance expenses | $ 947.2 | $ 31.5 | $ — | $ 978.7 | ||||
Insurance ratios: | ||||||||
Loss and loss adjustment expense | 56.8 % | 21.7 % | — % | 54.9 % | ||||
Acquisition expense | 19.2 | 28.5 | — | 19.7 | ||||
Other underwriting expense | 9.4 | — | — | 8.9 | ||||
Combined Ratio | 85.4 % | 50.2 % | — % | 83.5 % |
(1) | Included within general and administrative expenses in the consolidated statement of operations. |
Ark/WM Outrigger | Nine Months Ended September 30, 2023 | |||||||
Ark | WM Outrigger Re | Elimination | Total | |||||
Insurance premiums: | ||||||||
Gross written premiums | $ 1,666.7 | $ 108.4 | $ (108.4) | $ 1,666.7 | ||||
Net written premiums | $ 1,198.0 | $ 108.4 | $ — | $ 1,306.4 | ||||
Net earned premiums | $ 971.9 | $ 75.4 | $ — | $ 1,047.3 | ||||
Insurance expenses: | ||||||||
Loss and loss adjustment expenses | $ 573.2 | $ 7.9 | $ — | $ 581.1 | ||||
Acquisition expenses | 189.3 | 22.2 | — | 211.5 | ||||
Other underwriting expenses (1) | 78.5 | — | — | 78.5 | ||||
Total insurance expenses | $ 841.0 | $ 30.1 | $ — | $ 871.1 | ||||
Insurance ratios: | ||||||||
Loss and loss adjustment expense | 59.0 % | 10.5 % | — % | 55.5 % | ||||
Acquisition expense | 19.5 | 29.4 | — | 20.2 | ||||
Other underwriting expense | 8.1 | — | — | 7.5 | ||||
Combined Ratio | 86.6 % | 39.9 % | — % | 83.2 % |
(1) | Included within general and administrative expenses in the consolidated statement of operations. |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
SELECTED FINANCIAL DATA (CONTINUED) | ||||||||
($ in millions) | ||||||||
(Unaudited) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
HG Global | 2024 | 2023 | 2024 | 2023 | ||||
Par value assumed: | ||||||||
Par value of primary market policies assumed (1) | $ 582.3 | $ 552.7 | $ 1,760.3 | $ 1,310.8 | ||||
Par value of secondary market policies assumed (1) | 106.1 | 91.6 | 252.0 | 283.1 | ||||
Total par value of policies assumed | $ 688.4 | $ 644.3 | $ 2,012.3 | $ 1,593.9 | ||||
Reinsurance premiums: | ||||||||
Gross written premiums from primary market | $ 9.8 | $ 8.6 | $ 23.5 | $ 19.4 | ||||
Gross written premiums from secondary market | 4.2 | 5.6 | 11.0 | 12.5 | ||||
Total gross written premiums | 14.0 | 14.2 | 34.5 | 31.9 | ||||
Ceding commission paid | $ 4.1 | $ 4.4 | $ 10.1 | $ 9.7 | ||||
Total gross written premiums net of ceding commission paid | $ 9.9 | $ 9.8 | $ 24.4 | $ 22.2 | ||||
Earned premiums | $ 7.5 | $ 6.6 | $ 21.5 | $ 19.4 | ||||
Pricing: | ||||||||
Gross pricing from primary market | 168 bps | 156 bps | 133 bps | 148 bps | ||||
Gross pricing from secondary market | 396 bps | 611 bps | 437 bps | 442 bps | ||||
Total gross pricing | 203 bps | 220 bps | 171 bps | 200 bps | ||||
Total pricing net of ceding commission paid | 144 bps | 152 bps | 121 bps | 139 bps | ||||
(1) | For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. |
HG Global | As of | As of | As of | |||
Unearned premiums | $ 287.0 | $ 273.9 | $ 262.3 | |||
Deferred acquisition costs | $ 83.2 | $ 79.0 | $ 75.4 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||||
SELECTED FINANCIAL DATA (CONTINUED) | ||||||||||
($ in millions) | ||||||||||
(Unaudited) | ||||||||||
Kudu | Three Months | Three Months | Nine Months | Nine Months | Twelve Months | |||||
Net investment income (1) | $ 15.1 | $ 17.2 | $ 44.0 | $ 50.1 | $ 77.1 | |||||
Net realized and unrealized investment gains (losses) | 11.2 | 29.5 | 45.4 | 77.5 | 138.2 | |||||
Other revenues | — | .5 | — | .5 | .5 | |||||
Total revenues | 26.3 | 47.2 | 89.4 | 128.1 | 215.8 | |||||
General and administrative expenses | 4.5 | 3.6 | 12.3 | 10.5 | 17.6 | |||||
Interest expense | 5.5 | 5.7 | 15.5 | 16.7 | 22.4 | |||||
Total expenses | 10.0 | 9.3 | 27.8 | 27.2 | 40.0 | |||||
GAAP pre-tax income (loss) | 16.3 | 37.9 | 61.6 | 100.9 | 175.8 | |||||
Income tax (expense) benefit | (4.6) | (9.2) | (13.9) | (18.3) | (36.3) | |||||
GAAP net income (loss) | 11.7 | 28.7 | 47.7 | 82.6 | 139.5 | |||||
Add back: | ||||||||||
Interest expense | 5.5 | 5.7 | 15.5 | 16.7 | 22.4 | |||||
Income tax expense (benefit) | 4.6 | 9.2 | 13.9 | 18.3 | 36.3 | |||||
Depreciation expense | .1 | .1 | .1 | .1 | .1 | |||||
Amortization of other intangible assets | — | — | .2 | .2 | .3 | |||||
EBITDA | 21.9 | 43.7 | 77.4 | 117.9 | 198.6 | |||||
Exclude: | ||||||||||
Net realized and unrealized investment (gains) losses | (11.2) | (29.5) | (45.4) | (77.5) | (138.2) | |||||
Non-cash equity-based compensation expense | — | — | — | — | 1.0 | |||||
Transaction expenses | 1.1 | .2 | 2.4 | .3 | 1.4 | |||||
Adjusted EBITDA | $ 11.8 | $ 14.4 | $ 34.4 | $ 40.7 | $ 62.8 | |||||
Adjustment to annualize partial year revenues from participation contracts acquired | 1.2 | |||||||||
Adjustment to remove partial year revenues from participation contracts sold | (1.2) | |||||||||
Annualized adjusted EBITDA | $ 62.8 | |||||||||
GAAP net investment income (1) | $ 77.1 | |||||||||
Adjustment to annualize partial year revenues from participation contracts acquired | 1.2 | |||||||||
Adjustment to remove partial year revenues from participation contracts sold | (1.2) | |||||||||
Annualized revenue | $ 77.1 | |||||||||
Net equity capital drawn | $ 351.6 | |||||||||
Debt capital drawn | 210.3 | |||||||||
Total net capital drawn and invested (2) | $ 561.9 | |||||||||
GAAP net investment income revenue yield | 13.7 % | |||||||||
Cash revenue yield | 13.7 % |
(1) | Net investment income includes revenues from participation contracts and income from short-term and other long-term investments. |
(2) | Total net capital drawn represents equity and debt capital drawn and invested less cumulative distributions. |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||||||
SELECTED FINANCIAL DATA (CONTINUED) | ||||||||
(millions) | ||||||||
(Unaudited) | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
Kudu | 2024 | 2023 | 2024 | 2023 | ||||
Beginning balance of Kudu's participation contracts (1) | $ 901.3 | $ 737.1 | $ 890.5 | $ 695.9 | ||||
Contributions to participation contracts (2) | — | 26.7 | .2 | 144.1 | ||||
Proceeds from participation contracts sold (2) (3) | — | — | (37.5) | (110.4) | ||||
Net realized and unrealized investment gains (losses) on participation contracts sold and pending sale (4) | — | (.6) | (6.3) | (1.8) | ||||
Net unrealized investment gains (losses) on participation contracts - all other (5) | 29.3 | 12.1 | 83.7 | 47.5 | ||||
Ending balance of Kudu's participation contracts (1) | $ 930.6 | $ 775.3 | $ 930.6 | $ 775.3 |
(1) | As of September 30,2023, January 1, 2024 and September 30, 2024, Kudu's other long-term investments also includes |
(2) | Includes |
(3) | Includes |
(4) | Includes realized and unrealized investment gains (losses) recognized from participation contracts beginning in the quarter a contract is classified as pending sale. |
(5) | Includes unrealized investment gains (losses) recognized from (i) ongoing participation contracts and (ii) participation contracts prior to classification as pending sale. |
WHITE MOUNTAINS INSURANCE GROUP, LTD. | ||||
SELECTED FINANCIAL DATA (CONTINUED) | ||||
(millions) | ||||
(Unaudited) | ||||
Bamboo | Three Months Ended | Nine Months Ended | ||
Commission and fee revenues | $ 42.7 | $ 97.3 | ||
Earned insurance premiums | 10.6 | 27.0 | ||
Other revenues | 2.4 | 4.5 | ||
Total revenues | 55.7 | 128.8 | ||
Broker commission expenses | 15.9 | 37.9 | ||
Loss and loss adjustment expenses | 4.4 | 14.5 | ||
Acquisition expenses | 3.7 | 9.7 | ||
General and administrative expenses | 16.2 | 43.9 | ||
Total expenses | 40.2 | 106.0 | ||
GAAP pre-tax income (loss) | 15.5 | 22.8 | ||
Income tax (expense) benefit | (2.7) | (4.2) | ||
GAAP net income (loss) | 12.8 | 18.6 | ||
Exclude: | ||||
Net (income) loss, Bamboo Captive | (1.9) | (1.9) | ||
MGA net income (loss) | 10.9 | 16.7 | ||
Add back: | ||||
Income tax expense (benefit) | 2.7 | 4.2 | ||
Depreciation expense | .1 | .1 | ||
Amortization of other intangible assets | 3.9 | 12.4 | ||
MGA EBITDA | 17.6 | 33.4 | ||
Exclude: | ||||
Non-cash equity-based compensation expense | .4 | 1.0 | ||
Software implementation expenses | .5 | 1.4 | ||
Restructuring expenses | .1 | .7 | ||
MGA adjusted EBITDA | $ 18.6 | $ 36.5 |
Regulation G
This earnings release includes non-GAAP financial measures that have been reconciled from their most comparable GAAP financial measures.
- Adjusted book value per share is a non-GAAP financial measure which is derived by adjusting (i) the GAAP book value per share numerator and (ii) the common shares outstanding denominator, as described below.
The GAAP book value per share numerator is adjusted (i) for periods prior to July 1, 2024, to include a discount for the time value of money arising from the modeled timing of cash payments of principal and interest on the BAM surplus notes and (ii) for all periods, to add back the unearned premium reserve, net of deferred acquisition costs, at HG Global.
Under GAAP, for periods prior to July 1, 2024, the BAM surplus notes, including accrued interest receivable, were classified as intercompany notes carried at nominal value with no consideration for time value of money and eliminated in consolidation. Based on a debt service model that forecasts operating results for BAM through maturity of the BAM surplus notes, the present value of the BAM surplus notes, including accrued interest and using an8% discount rate, was estimated to be ,$87 million and$91 million less than the nominal GAAP carrying values as of June 30, 2024, December 31, 2023 and September 30, 2023, respectively. For periods subsequent to July 1, 2024, White Mountains carries the BAM surplus notes under GAAP at fair value, and there is no longer a separate time value of money adjustment for adjusted book value purposes.$93 million
The value of HG Global's unearned premium reserve, net of deferred acquisition costs, was ,$204 million ,$199 million and$195 million as of September 30, 2024, June 30, 2024, December 31, 2023 and September 30, 2023, respectively.$187 million
White Mountains believes these adjustments are useful to management and investors in analyzing the intrinsic value of HG Global, including the value of the BAM surplus notes and the value of the in-force business at HG Re, HG Global's reinsurance subsidiary.
The denominator used in the calculation of adjusted book value per share equals the number of common shares outstanding adjusted to exclude unearned restricted common shares, the compensation cost of which, at the date of calculation, has yet to be amortized. Restricted common shares are earned on a straight-line basis over their vesting periods. The reconciliation of GAAP book value per share to adjusted book value per share is included on page 8.
- The value of the BAM surplus notes for adjusted book value purposes is a non-GAAP financial measure derived, for periods prior to July 1, 2024, by adjusting the nominal GAAP carrying value for a time value discount included in the calculation of adjusted book value per share prior to the deconsolidation of BAM. A reconciliation of the nominal GAAP carrying value to the value of the BAM surplus notes for adjusted book value purposes follows. The amounts disclosed are gross of noncontrolling interests. White Mountains believes this non-GAAP financial measure is useful to management and investors in analyzing the impact to White Mountains from the value of the BAM surplus notes pre- and post-deconsolidation.
Millions | June 30, 2024 | July 1, 2024 | September 30, 2024 | |||
Nominal GAAP carrying value (1) | $ 501.9 | $ 501.9 | $ 509.8 | |||
Less GAAP fair value discount | — | (114.5) | (98.7) | |||
GAAP carrying value | 501.9 | 387.4 | 411.1 | |||
Less time value discount as of June 30, 2024 (2) (3) | (87.4) | — | — | |||
Value of the BAM surplus notes for adjusted book value purposes (2) | $ 414.5 | $ 387.4 | $ 411.1 |
(1) | The nominal carrying value of the BAM surplus notes includes principal and accrued interest receivable. |
(2) | For periods subsequent to July 1, 2024, White Mountains carries the BAM surplus notes under GAAP at fair value, and there is no longer a separate time value of money adjustment for adjusted book value purposes. |
(3) | See adjusted book value per share non-GAAP measure on page 22. |
- Kudu's EBITDA, adjusted EBITDA, annualized adjusted EBITDA, annualized revenue and cash revenue yield are non-GAAP financial measures.
EBITDA is a non-GAAP financial measure that adds back interest expense on debt, income tax (expense) benefit, depreciation and amortization of other intangible assets to GAAP net income (loss).
Adjusted EBITDA is a non-GAAP financial measure that excludes certain other items in GAAP net income (loss) in addition to those added back to calculate EBITDA. The items relate to (i) net realized and unrealized investment gains (losses) on Kudu's revenue and earnings participation contracts, (ii) non-cash equity-based compensation expense and (iii) transaction expenses. A description of each item follows:- Net realized and unrealized investment gains (losses) - Represents net unrealized investment gains and losses recorded on Kudu's revenue and earnings participation contracts, which are recorded at fair value under GAAP, and realized investment gains and losses from participation contracts sold during the period.
- Non-cash equity-based compensation expense - Represents non-cash expenses related to Kudu's management compensation that are settled with equity units in Kudu.
- Transaction expenses - Represents costs directly related to Kudu's mergers and acquisitions activity, such as external lawyer, banker, consulting and placement agent fees, which are not capitalized and are expensed under GAAP.
Annualized adjusted EBITDA is a non-GAAP financial measure that (i) annualizes partial year revenues related to Kudu's revenue and earnings participation contracts acquired during the previous 12-month period and (ii) removes partial year revenues related to revenue and earnings participation contracts sold during the previous 12-month period.
Annualized revenue is a non-GAAP financial measure that adds the adjustments for annualized adjusted EBITDA to GAAP net investment income.
Cash revenue yield is a non-GAAP financial measure that is derived using annualized revenue as a percentage of total net capital drawn and invested.
White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Kudu's performance. White Mountains also believes that annualized adjusted EBITDA is useful to management and investors in understanding the full earnings profile of Kudu's business as of the end of any 12-month period. See page 19 for the reconciliation of Kudu's GAAP net income (loss) to EBITDA, adjusted EBITDA and annualized adjusted EBITDA, and the reconciliation of Kudu's GAAP net investment income to annualized revenue.
- Bamboo's MGA pre-tax income (loss), MGA net income (loss), MGA EBITDA and MGA adjusted EBITDA are non-GAAP financial measures.
MGA pre-tax income (loss) and MGA net income (loss) are non-GAAP financial measures that exclude the results of the Bamboo Captive, which is consolidated under GAAP, from Bamboo's consolidated GAAP pre-tax income (loss) and net income (loss). The following table presents the reconciliation from Bamboo's consolidated GAAP pre-tax income (loss) to MGA pre-tax income (loss):
Millions | Three Months Ended | Nine Months Ended | |
Bamboo's consolidated GAAP pre-tax income (loss) | $ 15.5 | $ 22.8 | |
Remove pre-tax (income) loss, Bamboo Captive | (1.9) | (1.9) | |
MGA pre-tax income (loss) | $ 13.6 | $ 20.9 |
MGA EBITDA is a non-GAAP financial measure that adds back interest expense on debt, income tax (expense) benefit, depreciation and amortization of other intangible assets to MGA net income (loss).
MGA adjusted EBITDA is a non-GAAP financial measure that excludes certain other items in GAAP net income (loss) in addition to those added back to calculate MGA EBITDA. The items relate to (i) non-cash equity-based compensation expense, (ii) software implementation expenses and (iii) restructuring expenses. A description of each item follows:
- Non-cash equity-based compensation expense - Represents non-cash expenses related to Bamboo's management compensation that are settled with equity units in Bamboo.
- Software implementation expenses - Represents costs directly related to Bamboo's implementation of new software.
- Restructuring expenses - Represents costs directly related to Bamboo's corporate restructuring and capital planning activities associated with the development of new markets.
White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Bamboo's performance. See page 21 for the reconciliation of Bamboo's consolidated GAAP net income (loss) to MGA net income (loss), MGA EBITDA and MGA adjusted EBITDA.
- Total consolidated portfolio return excluding MediaAlpha and total equity portfolio return excluding MediaAlpha are non-GAAP financial measures that remove the net investment income and net realized and unrealized investment gains (losses) from White Mountains's investment in MediaAlpha. White Mountains believes these measures to be useful to management and investors by showing the underlying performance of White Mountains's investment portfolio and equity portfolio without regard to White Mountains's investment in MediaAlpha. The following tables present reconciliations from GAAP to the reported percentages:
Three Months Ended | Nine Months Ended | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Total consolidated portfolio return | 4.6 % | (0.2) % | 9.4 % | 5.3 % | ||||
Remove MediaAlpha | (1.3) % | 0.8 % | (2.5) % | 1.0 % | ||||
Total consolidated portfolio return excluding MediaAlpha | 3.3 % | 0.6 % | 6.9 % | 6.3 % |
Three Months Ended | ||
Total equity portfolio return | 6.5 % | |
Remove MediaAlpha | (2.7) % | |
Total equity portfolio return excluding MediaAlpha | 3.8 % |
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This earnings release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which White Mountains expects or anticipates will or may occur in the future are forward-looking statements. The words "could", "will", "believe", "intend", "expect", "anticipate", "project", "estimate", "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to White Mountains's:
- change in book value per share, adjusted book value per share or return on equity;
- business strategy;
- financial and operating targets or plans;
- incurred loss and loss adjustment expenses and the adequacy of its loss and loss adjustment expense reserves and related reinsurance;
- projections of revenues, income (or loss), earnings (or loss) per share, EBITDA, adjusted EBITDA, dividends, market share or other financial forecasts of White Mountains or its businesses;
- expansion and growth of its business and operations; and
- future capital expenditures.
These statements are based on certain assumptions and analyses made by White Mountains in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to its expectations and predictions is subject to risks and uncertainties that could cause actual results to differ materially from expectations, including:
- the risks that are described from time to time in White Mountains's filings with the Securities and Exchange Commission, including but not limited to White Mountains's Annual Report on Form 10-K for the fiscal year ended December 31, 2023;
- claims arising from catastrophic events, such as hurricanes, windstorms, earthquakes, floods, wildfires, tornadoes, tsunamis, severe weather, public health crises, terrorist attacks, war and war-like actions, explosions, infrastructure failures or cyber-attacks;
- recorded loss reserves subsequently proving to have been inadequate;
- the market value of White Mountains's investment in MediaAlpha;
- the trends and uncertainties from the COVID-19 pandemic, including judicial interpretations on the extent of insurance coverage provided by insurers for COVID-19 pandemic related claims;
- business opportunities (or lack thereof) that may be presented to it and pursued;
- actions taken by rating agencies, such as financial strength or credit ratings downgrades or placing ratings on negative watch;
- the continued availability of capital and financing;
- the continued availability of fronting and reinsurance capacity;
- deterioration of general economic, market or business conditions, including due to outbreaks of contagious disease (including the COVID-19 pandemic) and corresponding mitigation efforts;
- competitive forces, including the conduct of other insurers;
- changes in domestic or foreign laws or regulations, or their interpretation, applicable to White Mountains, its competitors or its customers; and
- other factors, most of which are beyond White Mountains's control.
Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by White Mountains will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, White Mountains or its business or operations. White Mountains assumes no obligation to publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.
View original content:https://www.prnewswire.com/news-releases/white-mountains-reports-third-quarter-results-302297446.html
SOURCE White Mountains Insurance Group, Ltd.
FAQ
What was White Mountains (WTM) book value per share in Q3 2024?
How much did WTM's gross written premiums grow in Q3 2024?
What was White Mountains (WTM) comprehensive income in Q3 2024?