White Mountains Insurance : Form 8-K - Report of Material or Corporate Event

Published: 2025-05-07 08:36:10 ET WTM

Published on 05/07/2025 at 08:36

Date of Report (Date of earliest event reported)

(Exact name of registrant as specified in its charter)

(State or other jurisdiction of incorporation or organization)

(Commission file number)

(I.R.S. Employer Identification No.)

(Address of principal executive offices)

(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:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, par value $1.00 per share

WTM

WTM.BH

New York Stock Exchange

Bermuda Stock Exchange

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On May 7, 2025, White Mountains Insurance Group, Ltd. issued a press release announcing its results for the three months ended March 31, 2025. The press release furnished herewith is attached as Exhibit 99.1 to this Form 8-K.

Certain information included in the press release constitutes non-GAAP financial measures (as defined in Regulation G of the Securities and Exchange Commission). Specifically, there are 11 non-GAAP financial measures: (i) Kudu's EBITDA, (ii) Kudu's adjusted EBITDA, (iii) Kudu's annualized adjusted EBITDA, (iv) Kudu's annualized revenue, (v) Kudu's cash revenue yield, (vi) Bamboo's MGA pre-tax income (loss), (vii) Bamboo's MGA net income (loss), (viii) Bamboo's MGA EBITDA, (ix) Bamboo's MGA adjusted EBITDA, (x) total consolidated portfolio return excluding MediaAlpha and

(xi) total equity portfolio return excluding MediaAlpha. These non-GAAP financial measures have been reconciled from their most comparable GAAP financial measures.

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. The most directly comparable GAAP financial measure is net investment income revenue yield, which is derived using GAAP net investment income 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 16 of Exhibit 99.1 to this Form 8-K 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

2025

March 31,

Three

Months Ended 31, 2024

March

Bamboo's consolidated GAAP pre-tax income (loss)

6.3

Remove pre-tax (income) loss, Bamboo captive

3.9

MGA pre-tax income (loss)

10.2

1.5

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.

White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Bamboo's performance. See page 18 of Exhibit 99.1 to this Form 8-K 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 March 31, 2025 2024

Total consolidated portfolio return 1.7 % 4.6 %

Remove MediaAlpha 0.6 (3.4)

Total consolidated portfolio return excluding MediaAlpha 2.3 % 1.2 %

Three Months Ended March 31, 2025

Total equity portfolio return 1.6 %

Remove MediaAlpha 1.5

Total equity portfolio return excluding MediaAlpha 3.1 %

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits

99.1 Press Release of White Mountains Insurance Group, Ltd. dated May 7, 2025, 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.

WHITE MOUNTAINS INSURANCE GROUP, LTD.

May 7, 2025 By: /s/ MICHAELA J. HILDRETH

Michaela J. Hildreth Managing Director and Chief Accounting Officer

CONTACT: Rob Seelig

(603) 640-2212

WHITE MOUNTAINS REPORTS FIRST QUARTER RESULTS

HAMILTON, Bermuda (May 7, 2025) - White Mountains Insurance Group, Ltd. (NYSE: WTM) reported book value per share of $1,752 as of March 31, 2025, a slight increase for the first quarter of 2025, including dividends.

Manning Rountree, CEO, commented, "Book value per share ended the quarter at $1,752, up slightly. We had solid operating results and good investment returns, partially offset by the share price decline at MediaAlpha. Ark posted a 94% combined ratio and wrote $1.1 billion of gross written premiums, up 27% year-over-year. HG Global generated $7 million of gross written premiums and grew equity by 3% in the quarter. At Kudu, trailing 12 months EBITDA increased, and the fair value of the portfolio grew 4% on a same store basis. Bamboo delivered another great quarter, doubling managed premiums on a trailing 12 months basis and tripling MGA adjusted EBITDA year-over-year, while also successfully renewing its largest reinsurance program. MediaAlpha's share price declined 18% in the quarter, producing a $37 million mark-to-market loss. Excluding MediaAlpha, the investment portfolio returned 2.3%, with gains in both equities and fixed income. In April, we made new capital deployments into BroadStreet Partners and Enterprise Solutions, our first acquisition at WTM Partners. Including these deployments and expected operating company distributions, undeployed capital now stands at roughly $550 million."

Subsequent to the deconsolidation of BAM on July 1, 2024, the BAM surplus notes are carried at fair value under GAAP, and there is no longer a time value of money adjustment for adjusted book value purposes. As a result of this change, there was only one remaining adjustment to book value: the add back of the unearned premium reserve, net of deferred acquisition costs, at HG Global. Accordingly, White Mountains determined that it will no longer report adjusted book value per share beginning in 2025. The value of the net unearned premium reserve will continue to be disclosed within the HG Global segment reporting.

Comprehensive income attributable to common shareholders was $35 million in the first quarter of 2025 compared to $236 million in the first quarter of 2024. Results in the first quarter of 2025 included $37 million of unrealized investment losses from White Mountains's investment in MediaAlpha compared to $211 million of unrealized investment gains in the first quarter of 2024.

Ark/WM Outrigger

The Ark/WM Outrigger segment's combined ratio was 97% in the first quarter of 2025 compared to 91% in the first quarter of 2024. Ark/WM Outrigger reported gross written premiums of $1,108 million, net written premiums of $728 million and net earned premiums of

$358 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $598 million and net

earned premiums of $303 million in the first quarter of 2024.

Ark's combined ratio was 94% in both the first quarter of 2025 and 2024. Ark's combined ratio included 25 points of catastrophe losses in the first quarter of 2025, driven by losses related to the January 2025 California wildfires of $75 million on a net basis after reinsurance and reinstatement premiums, compared to minimal catastrophe losses in the first quarter of 2024. Ark's combined ratio included 14 points of net favorable prior year development in the first quarter of 2025 compared to slight net favorable prior year development in the first quarter of 2024. Net favorable development for the first quarter of 2025 was driven by the marine & energy and property lines of business.

Ark reported gross written premiums of $1,108 million, net written premiums of $690 million and net earned premiums of $346 million in the first quarter of 2025 compared to gross written premiums of $872 million, net written premiums of $564 million and net earned premiums of $293 million in the first quarter of 2024. Premium growth was driven primarily by property and specialty lines of business.

Ark reported pre-tax income of $52 million in the first quarter of 2025 compared to $33 million in the first quarter of 2024. Ark's results included net realized and unrealized investment gains of $30 million in the first quarter of 2025 compared to $11 million in the first quarter of 2024.

Ian Beaton, CEO of Ark, said, "We are off to a good start in 2025, with a combined ratio of 94%. Gross written premiums increased 27% over 2024, aided by the addition of new underwriting teams and lines of business. Market conditions remain attractive, despite rate declines in several lines of business."

WM Outrigger Re's combined ratio was 166% in the first quarter of 2025 compared to 32% in the first quarter of 2024. Catastrophe losses in 2025 included $19 million net of reinstatement premiums related to the California wildfires, while major catastrophe losses in 2024 were minimal. WM Outrigger Re reported gross and net written premiums of $38 million and net earned premiums of $12 million in the first quarter of 2025 compared to gross and net written premiums of $34 million and net earned premiums of $10 million in the first quarter of 2024. Gross and net written premiums increased due to White Mountains's larger capital commitment to WM Outrigger Re in 2025.

WM Outrigger Re reported pre-tax income (loss) of $(6) million in the first quarter of 2025, of which $4 million was attributable to the 2025 underwriting year and $(10) million to the 2024 underwriting year compared to $10 million in the first quarter of 2024, of which $7 million was attributable to the 2024 underwriting year and $3 million to the 2023 underwriting year. Through March 31, 2025, WM Outrigger Re generated pre-tax income of $29 million from the 2024 underwriting year. This included losses of $17 million net of reinstatement premiums related to the California wildfires.

HG Global reported gross written premiums of $7 million and earned premiums of $8 million in the first quarter of 2025 compared to gross written premiums of $9 million and earned premiums of $7 million in the first quarter of 2024. HG Global's total par value of policies assumed was $427 million in the first quarter of 2025 compared to $538 million in the first quarter of 2024. HG Global's total gross pricing was 157 basis points in the first quarter of 2025 compared to 165 basis points in the first quarter of 2024.

HG Global reported pre-tax income of $25 million in the first quarter of 2025 compared to $6 million in the first quarter of 2024. HG Global's results included net realized and unrealized investment gains (losses) of $10 million in the first quarter of 2025 compared to $(7) million in the first quarter of 2024, driven by the movement of interest rates. The fair value of the BAM surplus notes increased to $389 million as of March 31, 2025 compared to $382 million as of December 31, 2024, resulting from approximately $8 million of accrued interest.

Kevin Pearson, President of HG Global, said, "HG Global had a slow first quarter. Gross written premiums decreased by 25% year over year, driven primarily by lower primary market activity. However, secondary market volume increased year over year driven by increased credit market volatility, making a nice contribution to total pricing and gross written premiums."

We encourage you to read BAM's first 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 reported total revenues of $64 million, pre-tax income of $53 million and adjusted EBITDA of $16 million in the first quarter of 2025 compared to total revenues of $11 million, pre-tax income of $2 million and adjusted EBITDA of $14 million in the first quarter of 2024.

Total revenues, pre-tax income and adjusted EBITDA included $19 million of net investment income in the first quarter of 2025 compared to

$17 million in the first quarter of 2024. Total revenues and pre-tax income also included $44 million of net realized and unrealized investment gains (losses) in the first quarter of 2025 compared to $(7) million in the first quarter of 2024.

Rob Jakacki, CEO of Kudu, said, "Kudu's portfolio delivered strong results this quarter. On a trailing 12 months basis, return on equity increased to 13% and annualized adjusted EBITDA increased by 7% to $65 million. We are pleased to have completed our investment in Homestead, a California-based farmland equity and debt manager, which further diversifies our portfolio. Looking ahead, we continue to see a robust pipeline of opportunities and expect to remain active in deploying capital throughout 2025."

Bamboo reported commission and fee revenues of $44 million in the first quarter of 2025 compared to $22 million in the first quarter of 2024. Bamboo reported pre-tax income of $6 million in the first quarter of 2025 compared to $1 million in the first quarter of 2024. Bamboo reported MGA pre-tax income of $10 million and MGA adjusted EBITDA of $20 million in the first quarter of 2025, compared to $2 million and $6 million in the first quarter of 2024.

Managed premiums, which represent the total premiums placed by Bamboo, were $147 million in the first quarter of 2025 compared to $90 million in the first quarter of 2024. The increase in managed premiums was driven by growth in the renewal book as well as new business volume.

Bamboo estimates that losses to its programs from the January 2025 California wildfires total approximately $160 million. This includes the impact of the California FAIR plan assessment and a prudent, early estimate of subrogation recoveries. The bulk of the losses will be absorbed by Bamboo's catastrophe excess of loss and quota share reinsurance partners. Bamboo's captive insurance company retained approximately $4 million of the losses.

John Chu, CEO of Bamboo, said, "We are off to a strong start in 2025. Trailing 12 months managed premiums increased to $542 million, up 96% year-over-year, while trailing 12 months MGA adjusted EBITDA increased to $66 million, up over 3 times year-over-year. We are proud of how we delivered for policyholders amidst the California wildfires. Our programs incurred losses, but these remain well within our reinsurance covers. Our relative loss performance was excellent, and, as a result, we completed our April 1st treaty year renewal on favorable terms with strong demand from our reinsurance partners. We are well-positioned to drive continued profitable growth."

As of March 31, 2025, White Mountains owned 17.9 million shares of MediaAlpha, representing a 27% basic ownership interest (24% on a fully-diluted/fully-converted basis). As of March 31, 2025, MediaAlpha's share price was $9.24 per share, which decreased from $11.29 per share as of December 31, 2024. The carrying value of White Mountains's investment in MediaAlpha was $165 million as of March 31, 2025 compared to $202 million as of December 31, 2024. At our current level of ownership, each $1.00 per share increase or decrease in the share price of MediaAlpha will result in an approximate $7.00 per share increase or decrease in White Mountains's book value per share.

We encourage you to read MediaAlpha's first quarter earnings release and related shareholder letter, which is available on MediaAlpha's investor relations website at https://investors.mediaalpha.com.

White Mountains's Other Operations reported pre-tax income (loss) of $(59) million in the first quarter of 2025 compared to $202 million in the first quarter of 2024. Unrealized investment gains (losses) from White Mountains's investment in MediaAlpha were $(37) million in the first quarter of 2025 compared to $211 million in the first quarter of 2024. Excluding MediaAlpha, net realized and unrealized investment gains were $3 million in the first quarter of 2025 compared to $22 million in the first quarter of 2024. Net investment income was $10 million in both the first quarter of 2025 and 2024. White Mountains's Other Operations reported general and administrative expenses of $36 million in the first quarter of 2025 compared to $50 million in the first quarter of 2024. The decrease in general and administrative expenses in the first quarter of 2025 compared to the first quarter of 2024 was driven primarily by lower incentive compensation costs.

In the first quarter of 2025, White Mountains's Other Operations reported pre-tax loss of $8 million related to the Bamboo CRV. The results of the Bamboo CRV included $12 million of the losses related to the California wildfires.

In the first quarter of 2025, White Mountains repurchased and retired 5,097 of its common shares for $10 million at an average share price of

$1,945.06, or 110% of White Mountains's book value per share as of March 31, 2025. The shares were repurchased to satisfy employee income tax withholding pursuant to employee benefit plans.

In the first quarter of 2024, White Mountains repurchased and retired 5,269 of its common shares for $8 million at an average share price of

$1,505.01, or 86% of White Mountains's book value per share as of March 31, 2024. The shares were repurchased to satisfy employee income tax withholding pursuant to employee benefit plans.

The total consolidated portfolio return was 1.7% in the first quarter of 2025. Excluding MediaAlpha, the total consolidated portfolio return was 2.3% in the first quarter of 2025. The total consolidated portfolio return was 4.6% in the first quarter of 2024. Excluding MediaAlpha, the total consolidated portfolio return was 1.2% in the first quarter of 2024.

Mark Plourde, President of White Mountains Advisors, said, "Excluding MediaAlpha, the total portfolio was up 2.3%, a good absolute result but mixed versus benchmarks. The fixed income portfolio returned 1.7%, lagging the longer-duration Bloomberg Intermediate Aggregate Index return of 2.6% as interest rates declined in the quarter. The equity portfolio, excluding MediaAlpha, returned 3.1%, well ahead of the S&P 500 Index return of -4.3%."

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

WHITE MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED BALANCE SHEETS

(millions) (Unaudited)

March 31, 2025 December 31, 2024 March 31, 2024

Assets

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

Fixed maturity investments

1,582.1

1,565.1

946.9

Common equity securities

420.9

425.4

409.9

Short-term investments

625.2

601.4

835.3

Other long-term investments

586.8

547.8

485.0

Total investments

3,215.0

3,139.7

2,677.1

Cash (restricted $0.0, $14.1, $24.7)

160.5

141.2

129.1

Reinsurance recoverables

920.4

589.0

695.0

Insurance premiums receivable

1,272.6

768.6

1,001.5

Deferred acquisition costs

279.7

165.2

213.3

Goodwill and other intangible assets

292.5

Other assets

184.8

202.8

140.9

Total P&C Insurance and Reinsurance assets

6,325.5

5,299.0

5,149.4

Financial Guarantee (HG Global)

Fixed maturity investments

631.9

612.1

1,015.7

Short-term investments

54.1

55.5

54.7

Total investments

686.0

667.6

1,070.4

Cash

6.8

11.5

4.7

BAM surplus notes, at fair value

389.2

381.7

Insurance premiums receivable

7.6

4.4

5.8

Deferred acquisition costs

86.6

40.9

Other assets

26.9

27.6

36.8

Total Financial Guarantee assets

1,203.1

1,179.4

1,158.6

Asset Management (Kudu)

Short-term investments

11.9

27.9

19.8

Other long-term investments

1,126.2

1,014.0

889.9

Total investments

1,138.1

1,041.9

909.7

Cash

15.1

6.5

Accrued investment income

23.5

18.0

22.1

Goodwill and other intangible assets

7.9

8.0

8.2

Other assets

38.7

39.9

6.6

Total Asset Management assets

1,223.3

1,108.4

953.1

P&C Insurance Distribution (Bamboo)

Fixed maturity investments

44.9

40.7

24.6

Short-term investments

20.1

17.3

18.6

Total investments

65.0

58.0

43.2

Cash (restricted $77.0, $59.5, $58.3)

99.8

74.5

62.0

Premiums, commissions and fees receivable

67.4

70.0

43.3

Goodwill and other intangible assets

351.0

355.0

367.2

Other assets

31.8

27.1

12.4

Total P&C Insurance Distribution assets

615.0

584.6

528.1

Other Operations

Fixed maturity investments

293.1

293.7

267.4

Common equity securities

120.9

224.6

151.6

Investment in MediaAlpha

165.0

201.6

465.6

Short-term investments

293.3

262.1

126.1

Other long-term investments

574.9

588.4

617.0

Total investments

1,447.2

1,570.4

1,627.7

Cash

29.8

38.6

23.0

Insurance premiums receivable

14.9

15.3

Goodwill and other intangible assets

63.7

64.8

68.7

Other assets

82.4

65.1

81.7

Total Other Operations assets

1,638.0

1,754.2

1,801.1

Total assets

$ 11,004.9

9,925.6

9,590.3

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(millions) (Unaudited)

March 31, 2025 December 31, 2024 March 31, 2024

Liabilities

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

Loss and loss adjustment expense reserves

2,253.9

2,127.5

1,744.5

Unearned insurance premiums

1,500.6

853.3

1,234.7

Debt

156.1

154.5

155.4

Reinsurance payable

385.8

149.5

262.5

Contingent consideration

165.0

155.3

94.0

Other liabilities

196.7

224.7

190.1

Total P&C Insurance and Reinsurance liabilities

4,658.1

3,664.8

3,681.2

Financial Guarantee (HG Global)

Unearned insurance premiums

295.8

297.3

328.5

Debt

147.5

147.4

147.0

Other liabilities

20.0

19.4

43.8

Total Financial Guarantee liabilities

463.3

464.1

519.3

Asset Management (Kudu)

Debt

246.6

238.6

203.8

Other liabilities

84.0

78.1

61.8

Total Asset Management liabilities

330.6

316.7

265.6

P&C Insurance Distribution (Bamboo)

Loss and loss adjustment expense reserves

23.2

17.8

12.3

Unearned insurance premiums

34.2

31.5

25.7

Premiums and commissions payable

86.2

88.1

61.7

Debt

104.7

Other liabilities

34.4

30.3

18.6

Total P&C Insurance Distribution liabilities

282.7

167.7

118.3

Other Operations

Loss and loss adjustment expense reserves

13.4

12.1

Unearned insurance premiums

30.8

29.0

Debt

21.2

22.0

25.9

Accrued incentive compensation

28.2

79.3

47.6

Other liabilities

36.9

38.9

41.8

Total Other Operations liabilities

130.5

181.3

115.3

Total liabilities

5,865.2

4,794.6

4,699.7

Equity

White Mountains's common shareholders' equity

White Mountains's common shares and paid-in surplus

567.1

566.4

554.5

Retained earnings

3,943.0

3,919.0

3,917.7

Accumulated other comprehensive income (loss), after tax:

Net unrealized gains (losses) from foreign currency translation

(.5)

(1.7)

(1.8)

Total White Mountains's common shareholders' equity

4,509.6

4,483.7

4,470.4

Noncontrolling interests

630.1

647.3

420.2

Total equity

5,139.7

5,131.0

4,890.6

Total liabilities and equity

11,004.9

9,925.6

9,590.3

WHITE MOUNTAINS INSURANCE GROUP, LTD. BOOK VALUE PER SHARE

(Unaudited)

March 31, 2025 December 31, 2024 March 31, 2024

Book value per share numerator (in millions):

White Mountains's common shareholders' equity

$ 4,509.6

$ 4,483.7

$ 4,470.4

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

Common shares outstanding

2,573.7

2,568.1

2,565.7

Book value per share

$ 1,752.17

$ 1,745.87

$ 1,742.33

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

dividends:

0.4 %

(2.8)%

5.3 %

Year-to-date change in book value per share, including dividends:

0.4 %

5.5 %

5.3 %

Year-to-date dividends per share $ 1.00 $ 1.00 $ 1.00

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(millions) (Unaudited)

Three Months Ended March 31,

2025

2024

Revenues:

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

Earned insurance premiums

358.0

302.8

Net investment income

23.5

19.9

Net realized and unrealized investment gains (losses)

29.5

10.6

Other revenues

2.2

3.5

Total P&C Insurance and Reinsurance revenues

413.2

336.8

Financial Guarantee (HG Global)

Earned insurance premiums

8.2

7.8

Net investment income

6.3

9.7

Net realized and unrealized investment gains (losses)

10.0

(10.1)

Interest income from BAM surplus notes

7.5

Other revenues

Total Financial Guarantee revenues

32.1

7.9

Asset Management (Kudu)

Net investment income

19.4

17.2

Net realized and unrealized investment gains (losses)

44.0

(6.5)

Other revenues

Total Asset Management revenues

63.8

10.7

P&C Insurance Distribution (Bamboo)

Commission and fee revenues

44.2

21.9

Earned insurance premiums

14.9

8.4

Other revenues

2.3

Total P&C Insurance Distribution revenues

61.4

31.1

Other Operations

Earned insurance premiums

13.9

Net investment income

9.7

9.9

Net realized and unrealized investment gains (losses)

2.8

22.2

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

(36.6)

210.7

Commission and fee revenues

3.9

3.6

Other revenues

13.6

14.4

Total Other Operations revenues

7.3

260.8

Total revenues

577.8

647.3

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(millions) (Unaudited)

Three Months Ended March 31,

2025

2024

Expenses:

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

Loss and loss adjustment expenses

233.5

180.0

Acquisition expenses

83.5

66.3

General and administrative expenses

35.9

42.2

Change in fair value of contingent consideration

9.7

Interest expense

4.2

5.4

Total P&C Insurance and Reinsurance expenses

366.8

293.9

Financial Guarantee (HG Global)

Acquisition expenses

1.9

2.2

General and administrative expenses

17.3

Interest expense

4.6

3.5

Total Financial Guarantee expenses

7.1

23.0

Asset Management (Kudu)

General and administrative expenses

4.0

3.4

Interest expense

6.4

5.6

Total Asset Management expenses

10.4

9.0

P&C Insurance Distribution (Bamboo)

Broker commission expenses

15.5

9.3

Loss and loss adjustment expenses

10.9

5.8

Acquisition expenses

6.6

3.1

General and administrative expenses

20.0

12.0

Interest expense

2.1

Total P&C Insurance Distribution expenses

55.1

30.2

Other Operations

Loss and loss adjustment expenses

17.4

Acquisition expenses

5.1

Cost of sales

7.5

7.6

General and administrative expenses

35.5

50.3

Interest expense

Total Other Operations expenses

66.0

58.6

Total expenses

505.4

414.7

Pre-tax income (loss)

72.4

232.6

Income tax (expense) benefit

(9.6)

(10.8)

Net income (loss)

62.8

221.8

Net (income) loss attributable to noncontrolling interests

(28.9)

14.6

Net income (loss) attributable to White Mountains's common shareholders

33.9

$ 236.4

WHITE MOUNTAINS INSURANCE GROUP, LTD.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(millions) (Unaudited)

Three Months Ended March 31,

2025

2024

Net income (loss) attributable to White Mountains's common shareholders $

33.9

236.4

Other comprehensive income (loss), net of tax

2.0

(.3)

Comprehensive income (loss)

35.9

236.1

Other comprehensive (income) loss attributable to noncontrolling interests

(.8)

Comprehensive income (loss) attributable to White Mountains's common shareholders

35.1

236.2

WHITE MOUNTAINS INSURANCE GROUP, LTD. EARNINGS PER SHARE

(Unaudited)

2025

2024

Basic earnings (loss) per share

13.19

92.33

Diluted earnings (loss) per share

13.19

92.33

Dividends declared and paid per White Mountains's common share

1.00

WHITE MOUNTAINS INSURANCE GROUP, LTD.

YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS)

(millions) (Unaudited)

For the Three Months Ended March 31, 2025

Ark/WM

Outrigger

Ark

Outrigger Re

HG Global

Kudu

Bamboo

Other Operations

Total

Revenues:

Earned insurance premiums

$ 346.0

$ 12.0

$ 8.2

$ -

$ 14.9

$ 13.9

$ 395.0

Net investment income (1)

21.3

2.2

6.3

19.4

9.7

59.6

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

29.6

(.1)

10.0

44.0

2.8

86.6

Net realized and unrealized investment gains (losses)

from investment in MediaAlpha

(36.6)

Interest income from BAM surplus notes

- 7.5

7.5

Commission and fee revenues

- -

44.2

3.9

48.1

Other revenues

2.2

- .1

1.3

13.6

17.6

Total revenues

399.1

14.1 32.1

63.8

61.4

7.3

577.8

Expenses:

Loss and loss adjustment expenses

213.3

20.2

10.9

17.4

261.8

Acquisition expenses

83.8

(.3)

1.9

6.6

5.1

97.1

Cost of sales

7.5

Broker commission expenses

15.5

General and administrative expenses

35.8

4.0

20.0

35.5

96.0

Change in fair value of contingent consideration

9.7

Interest expense

4.2

4.6

6.4

2.1

17.8

Total expenses

346.8

20.0

7.1

10.4

55.1

66.0

505.4

Pre-tax income (loss)

$ 52.3

$ (5.9)

$ 25.0

$ 53.4

$ 6.3

$ (58.7)

$ 72.4

(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 Three Months Ended March 31, 2024 Ark/WM Outrigger HG Global

Other

$ 292.5

$ 10.3

$ 6.5

$ 1.3

$ -

$ 8.4

$ -

$ 319.0

17.0

2.9

5.4

4.3

17.2

9.9

57.0

10.6

(7.3)

(2.8)

(6.5)

(.1)

22.2

16.1

210.7

6.6

(6.6)

21.9

3.6

25.5

3.5

14.4

19.0

323.6

13.2

11.2

(3.3)

10.7

31.1

260.8

647.3

179.3

5.8

185.8

63.7

2.6

1.8

3.1

71.6

9.3

7.6

42.2

16.9

3.4

12.0

50.3

125.2

5.4

3.5

5.6

15.2

290.6

3.3

5.7

17.3

9.0

30.2

58.6

414.7

$ 33.0

$ 9.9

$ 5.5

$ (20.6)

$ 1.7

$ .9

$ 202.2

$ 232.6

Earned insurance premiums Net investment income

Net realized and unrealized investment gains (losses)

from investment in MediaAlpha

Interest income (expense) from BAM surplus notes

Commission and fee revenues Other revenues

Total revenues

Loss and loss adjustment expenses Acquisition expenses

Broker commission expenses Cost of sales

General and administrative expenses

Interest expense

Total expenses

Ark

Outrigger Re HG Global BAM Kudu Bamboo

Operations Total

WHITE MOUNTAINS INSURANCE GROUP, LTD. SELECTED FINANCIAL DATA (CONTINUED)

($ in millions) (Unaudited)

Ark

Outrigger Re

Elimination

Total

Insurance premiums:

Gross written premiums

$ 1,107.6

$ 37.5

$ (37.5)

$ 1,107.6

Net written premiums

$ 690.2

$ 37.5

$ -

$ 727.7

Net earned premiums

$ 346.0

$ 12.0

$ -

$ 358.0

Insurance expenses:

Loss and loss adjustment expenses

$ 213.3

$ 20.2

$ -

$ 233.5

Acquisition expenses

83.8

(.3)

83.5

Other underwriting expenses (1)

28.5

Total insurance expenses

$ 325.6

$ 19.9

$ -

$ 345.5

Insurance ratios:

Loss and loss adjustment expense

61.7 %

168.3 %

- %

65.2 %

Acquisition expense

24.2

(2.5)

23.3

Other underwriting expense

8.2

8.0

Combined Ratio

94.1 %

165.8 %

- %

96.5 %

(1) Included within general and administrative expenses in the consolidated statement of operations.

Ark

Outrigger Re

Elimination

Total

Insurance premiums:

Gross written premiums

$ 872.1

$ 34.3

$ (34.3)

$ 872.1

Net written premiums

$ 563.7

$ 34.3

$ -

$ 598.0

Net earned premiums

$ 292.5

$ 10.3

$ -

$ 302.8

Insurance expenses:

Loss and loss adjustment expenses

$ 179.3

$ .7

$ -

$ 180.0

Acquisition expenses

63.7

2.6

66.3

Other underwriting expenses (1)

30.5

Total insurance expenses

$ 273.5

$ 3.3

$ -

$ 276.8

Insurance ratios:

Loss and loss adjustment expense

61.3 %

6.8 %

- %

59.4 %

Acquisition expense

21.8

25.2

21.9

Other underwriting expense

10.4

10.1

Combined Ratio

93.5 %

32.0 %

- %

91.4 %

(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 March 31,

HG Global

2025

2024

Par value assumed:

Par value of primary market policies assumed (1)

327.0

482.6

Par value of secondary market policies assumed (1)

100.3

55.5

Total par value of policies assumed

427.3

538.1

Reinsurance premiums:

Gross written premiums from primary market

3.8

6.9

Gross written premiums from secondary market

2.9

2.0

Total gross written premiums

6.7

8.9

Ceding commission paid

2.0

2.6

Total gross written premiums net of ceding commission paid

4.7

6.3

Earned premiums

8.2

6.5

Pricing:

Gross pricing from primary market

116 bps

143 bps

Gross pricing from secondary market

289 bps

360 bps

Total gross pricing

157 bps

165 bps

Total pricing net of ceding commission paid

110 bps

117 bps

(1) For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds.

HG Global

As of March 31, 2025

As of

December 31, 2024

As of March 31, 2024

Unearned premiums

295.8

297.3

276.3

Deferred acquisition costs

86.6

79.7

Unearned premiums, net of deferred acquisition costs

209.2

210.7

196.6

WHITE MOUNTAINS INSURANCE GROUP, LTD. SELECTED FINANCIAL DATA (CONTINUED)

($ in millions) (Unaudited)

Kudu

Three Months Ended March 31, 2024

Three Months Ended March 31, 2025

Twelve Months Ended March 31, 2025

Net investment income (1)

17.2

19.4

68.9

Net realized and unrealized investment gains (losses)

(6.5)

44.0

101.8

Other revenues

1.2

Total revenues

10.7

63.8

171.9

General and administrative expenses

3.4

4.0

16.0

Interest expense

5.6

6.4

22.9

Total expenses

9.0

10.4

38.9

GAAP pre-tax income (loss)

1.7

53.4

133.0

Income tax (expense) benefit

(11.6)

(29.2)

GAAP net income (loss)

2.5

41.8

103.8

Add back:

Interest expense

5.6

6.4

22.9

Income tax expense (benefit)

(.8)

11.6

29.2

Depreciation expense

Amortization of other intangible assets

EBITDA

7.4

59.9

156.3

Exclude:

Net realized and unrealized investment (gains) losses

6.5

(44.0)

(101.8)

Non-cash equity-based compensation expense

Transaction expenses

(.1)

1.6

Adjusted EBITDA

13.9

15.8

56.4

Adjustment to annualize partial year revenues from participation contracts acquired

8.4

Adjustment to remove partial year revenues from participation contracts sold

(.1)

Annualized adjusted EBITDA

$ 64.7

GAAP net investment income (1)

$ 68.9

Adjustment to annualize partial year revenues from participation contracts acquired

8.4

Adjustment to remove partial year revenues from participation contracts sold

(.1)

Annualized revenue

$ 77.2

Net equity capital drawn

$ 485.5

Debt capital drawn

253.3

Total net capital drawn and invested (2)

$ 738.8

GAAP net investment income revenue yield

9.3%

Cash revenue yield

10.4%

Return on equity

13.1%

(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.

Disclaimer

White Mountains Insurance Group Ltd. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 12:35 UTC.