HAMILTON, Bermuda, May 9, 2023
/PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM)
reported book value per share of $1,522 and adjusted book value per share of
$1,567 as of March 31, 2023. Book value per share and
adjusted book value per share both increased 5% in the first
quarter of 2023.
Manning Rountree, CEO, commented, "We had a good first
quarter. ABVPS was up 5%, driven by positive returns from our
investment portfolio and solid results at our operating
companies. BAM produced $21
million of gross written premiums and member surplus
contributions in the quarter. Ark achieved a 94% combined
ratio and, supported by increased reinsurance capacity from
Outrigger Re, wrote $809 million of
gross written premiums, up 28% year over year. Kudu closed on
one new deployment and two value-adding sales transactions in the
quarter, while growing the fair value of its continuing portfolio
by $32 million. MediaAlpha's
share price increased roughly $5 in
the quarter, producing an $85 million
mark-to-market gain. Excluding MediaAlpha, the investment
portfolio returned 3.0% in the quarter, with gains in both equities
and fixed income. We completed $25
million of share repurchases in the quarter.
Reflecting additional commitments to Kudu and our new deployment at
Doxa, undeployed capital now stands at roughly $720 million."
Comprehensive income attributable to common shareholders was
$180 million in the first quarter of
2023 compared to $31 million in the
first quarter of 2022. Results in the first quarter of 2023
and 2022 were driven primarily by $85
million and $19 million of net
realized and unrealized investment gains from White Mountains's
investment in MediaAlpha.
During the fourth quarter of 2022, Ark sponsored the formation
of Outrigger Re Ltd., a Bermuda
registered special purpose insurer and segregated accounts company,
to provide collateralized reinsurance protection on Ark's
Bermuda global property
catastrophe excess of loss portfolio written in calendar year
2023. As a result, in the first quarter of 2023, White
Mountains began reporting the results of Ark and WM Outrigger Re,
its own segregated account, together in the Ark/WM Outrigger
segment.
HG Global/BAM
BAM's gross written premiums and member surplus contributions
(MSC) collected were $21 million in
the first quarter of 2023 compared to $22
million in the first quarter of 2022. BAM insured
municipal bonds with par value of $2.9
billion in the first quarter of 2023 compared to
$3.5 billion in the first quarter of
2022. Total pricing was 73 basis points in the first quarter
of 2023 compared to 63 basis points in the first quarter of
2022. BAM's total claims paying resources were $1,433 million at March
31, 2023 compared to $1,423
million at December 31, 2022
and $1,201 million at March 31, 2022.
Seán McCarthy, CEO of BAM, said, "BAM had a solid start to the
year. In the quarter, primary municipal market new issuance
was down more than 20% year over year, and BAM's par insured was
lower as a result. However, insurance utilization was steady
and pricing was stronger, with continuing volatility driving demand
for insured bonds in both the primary and secondary markets.
Investors were active in insuring higher-quality bonds--with
underlying ratings in the double-A category--as part of their
overall portfolio management strategies."
HG Global reported pre-tax income (loss) of $18 million in the first quarter of 2023 compared
to $(15) million in the first quarter
of 2022. HG Global's results included net realized and
unrealized investment gains (losses) of $8
million in the first quarter of 2023 compared to
$(24) million in the first quarter of
2022.
White Mountains reported pre-tax loss related to BAM of
$9 million in the first quarter of
2023 compared to $36 million in the
first quarter of 2022. BAM's results included net realized
and unrealized investment gains (losses) of $9 million in the first quarter of 2023 compared
to $(22) million in the first quarter
of 2022.
BAM is a mutual insurance company that is owned by its
members. BAM's results are consolidated into White
Mountains's GAAP financial statements and attributed to
noncontrolling interests.
Ark/WM Outrigger
The Ark/WM Outrigger segment's combined ratio was 92% in the
first quarter of 2023. Ark/WM Outrigger reported gross
written premiums of $809 million, net
written premiums of $614 million and
net earned premiums of $255 million
in the first quarter of 2023. Ark/WM Outrigger reported
pre-tax income of $42 million in the
first quarter of 2023.
Ark's combined ratio was 94% in the first quarter of 2023
compared to 100% in the first quarter of 2022. Ark's combined
ratio in the first quarter of 2023 included three points of
unfavorable prior year development, primarily due to Winter Storm Elliot, compared to two points of
favorable prior year development in the first quarter of
2022. Ark's combined ratio in the first quarter of 2023
included negligible catastrophe losses compared to 17 points of
catastrophe losses, driven primarily by losses from the conflict in
Ukraine, in the first quarter of
2022. Ark reported gross written premiums of $809 million, net written premiums of
$570 million and net earned premiums
of $250 million in the first quarter
of 2023 compared to gross written premiums of $633 million, net written premiums of
$544 million and net earned premiums
of $194 million in the first quarter
of 2022. Ark reported pre-tax income (loss) of $36 million in the first quarter of 2023 compared
to $(23) million in first quarter of
2022. Ark's results included net realized and unrealized
investment gains (losses) of $25
million in the first quarter of 2023 compared to
$(18) million in the first quarter of
2022.
Ian Beaton, CEO of Ark, said, "We
are off to a good start in 2023 amidst a continuing strong rate
environment, particularly in property and specialty. Driven
by January renewals, gross written premiums were up 28% from 2022,
with risk adjusted rate change up 14%. Looking forward,
mid-year renewals are going well while market conditions remain
attractive, and we are optimistic about continued profitable growth
in the book."
WM Outrigger Re's combined ratio was 21% in the first quarter of
2023. WM Outrigger Re reported gross and net written premiums
of $44 million and net earned
premiums of $5 million in the first
quarter of 2023.
Kudu
Kudu reported total revenues of $44
million, pre-tax income of $35
million and adjusted EBITDA of $11
million in the first quarter of 2023 compared to total
revenues of $35 million, pre-tax
income of $29 million and adjusted
EBITDA of $10 million in the first
quarter of 2022. Total revenues and pre-tax income included
$14 million of net investment income
and $30 million of net realized and
unrealized investment gains in the first quarter of 2023 compared
to $13 million and $22 million in the first quarter of
2022.
Rob Jakacki, CEO of Kudu, said,
"Kudu had a strong first quarter. Trailing 12 months revenues
from participation contracts increased 3% quarter-over-quarter to
$56 million. Annualized
adjusted EBITDA finished the quarter at $37
million, reflecting the impact of exits from two
businesses. We are pleased to have closed our transaction
with Variant Investments, an alternative credit investment manager,
which further diversifies the Kudu portfolio. Kudu continues
to support our network of partner firms, and our pipeline for new
deployments remains robust."
MediaAlpha
White Mountains owns 16.9 million shares of MediaAlpha,
representing a 27% basic ownership interest (24% on a
fully-diluted/fully-converted basis). As of March 31, 2023, MediaAlpha's closing price was
$14.98 per share, which increased
from $9.95 per share at December 31, 2022. As of March 31, 2023, the value of White Mountains's
investment in MediaAlpha was $254
million, which increased from $169
million at December 31,
2022. 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 $6.60 per share increase or decrease in White
Mountains's book value per share and adjusted book value per
share. At the April 2023
month-end closing price of $7.40 per
share, the fair value of White Mountains's investment in MediaAlpha
was $125 million. We encourage
you to read MediaAlpha's first quarter earnings release and related
shareholder letter scheduled for May 4,
2023, which will be available on MediaAlpha's investor
relations website at www.investors.mediaalpha.com.
Other Operations
White Mountains's Other Operations reported pre-tax income of
$114 million in the first quarter of
2023 compared to $30 million in the
first quarter of 2022. Net realized and unrealized investment
gains (losses) from White Mountains's investment in MediaAlpha were
$85 million in the first quarter of
2023 compared to $19 million in the
first quarter of 2022. Excluding MediaAlpha, net realized and
unrealized investment gains (losses) were $42 million in the first quarter of 2023 compared
to $32 million in the first quarter
of 2022. Net investment income was $7
million in the first quarter of 2023 compared to
$2 million in the first quarter of
2022. The increase in net investment income in the first
quarter of 2023 compared to the first quarter of 2022 was driven
primarily by the increase in invested assets resulting from the
sale of NSM in the third quarter of 2022.
White Mountains's Other Operations reported general and
administrative expenses of $40
million in the first quarter of 2023 compared to
$30 million in the first quarter of
2022, driven by higher long-term incentive compensation costs,
primarily in connection with the sale of NSM and a higher share
price.
Share Repurchases
In the first quarter of 2023, White Mountains repurchased
and retired 18,623 of its common shares for $25 million at an average share price of
$1,360.30, or 87% of White
Mountains's adjusted book value per share at March 31, 2023.
In the first quarter of 2022, White Mountains repurchased and
retired 37,435 of its common shares for $39
million at an average share price of $1,038.82, or 86% of White Mountains's adjusted
book value per share at March 31,
2022.
Investments
The total consolidated portfolio return was 4.5% in the first
quarter of 2023. Excluding MediaAlpha, the total consolidated
portfolio return was 3.0% in the first quarter of 2023. The
total consolidated portfolio return was 0.8% in the first quarter
of 2022. Excluding MediaAlpha, the total consolidated
portfolio return was 0.3% in the first quarter of 2022.
Mark Plourde, President of White
Mountains Advisors, said, "Excluding MediaAlpha, the total
portfolio was up 3.0%, a good absolute result but generally lagging
benchmarks. The fixed income portfolio returned 1.9%, lagging
the longer duration BBIA Index return of 2.4% as interest rates
fell in the quarter. The equity portfolio returned
7.6%. Excluding MediaAlpha, the equity portfolio returned
4.4%, compared to the S&P 500 Index return of 7.5%."
Additional Information
White Mountains is a Bermuda-domiciled financial services holding
company traded on the New York Stock Exchange and the Bermuda Stock
Exchange under the symbol WTM. Additional financial
information and other items of interest are available at the
Company's website located at www.whitemountains.com. 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,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
|
|
|
|
|
|
|
Financial
Guarantee (HG Global/BAM)
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
$
924.8
|
|
$
909.9
|
|
$
873.8
|
Short-term
investments
|
|
65.9
|
|
65.9
|
|
36.5
|
Total
investments
|
|
990.7
|
|
975.8
|
|
910.3
|
Cash
|
|
4.8
|
|
18.2
|
|
22.3
|
Insurance premiums
receivable
|
|
6.3
|
|
6.6
|
|
6.9
|
Deferred acquisition
costs
|
|
36.9
|
|
36.0
|
|
33.1
|
Other
assets
|
|
21.6
|
|
21.9
|
|
18.4
|
Total Financial
Guarantee assets
|
|
1,060.3
|
|
1,058.5
|
|
991.0
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
765.0
|
|
772.8
|
|
692.4
|
Common equity
securities
|
|
340.4
|
|
334.6
|
|
290.1
|
Short-term
investments
|
|
553.7
|
|
484.6
|
|
198.0
|
Other long-term
investments
|
|
393.9
|
|
373.6
|
|
334.5
|
Total
investments
|
|
2,053.0
|
|
1,965.6
|
|
1,515.0
|
Cash
|
|
132.6
|
|
101.5
|
|
115.5
|
Reinsurance
recoverables
|
|
570.6
|
|
595.3
|
|
499.5
|
Insurance premiums
receivable
|
|
909.7
|
|
544.1
|
|
759.6
|
Deferred acquisition
costs
|
|
208.5
|
|
127.2
|
|
179.8
|
Goodwill and other
intangible assets
|
|
292.5
|
|
292.5
|
|
292.5
|
Other
assets
|
|
71.5
|
|
65.2
|
|
73.3
|
Total P&C
Insurance and Reinsurance assets
|
|
4,238.4
|
|
3,691.4
|
|
3,435.2
|
Asset Management
(Kudu)
|
|
|
|
|
|
|
Other long-term
investments
|
|
683.2
|
|
695.9
|
|
691.8
|
Cash (restricted
$13.0, $12.2, $4.5)
|
|
36.6
|
|
101.4
|
|
25.4
|
Accrued
investment income
|
|
19.1
|
|
12.4
|
|
11.8
|
Goodwill and
other intangible assets
|
|
8.5
|
|
8.6
|
|
8.9
|
Other
assets
|
|
20.6
|
|
7.6
|
|
9.6
|
Total Asset Management
assets
|
|
768.0
|
|
825.9
|
|
747.5
|
Other Operations
|
|
|
|
|
|
|
Fixed maturity
investments
|
|
266.1
|
|
238.2
|
|
249.3
|
Short-term
investments
|
|
264.6
|
|
373.6
|
|
87.0
|
Common equity
securities
|
|
357.4
|
|
333.8
|
|
—
|
Investment in
MediaAlpha
|
|
253.8
|
|
168.6
|
|
280.4
|
Other long-term
investments
|
|
565.9
|
|
418.5
|
|
402.2
|
Total
investments
|
|
1,707.8
|
|
1,532.7
|
|
1,018.9
|
Cash
|
|
28.7
|
|
33.9
|
|
50.3
|
Goodwill and
other intangible assets
|
|
75.2
|
|
91.3
|
|
38.1
|
Other
assets
|
|
80.7
|
|
155.6
|
|
81.8
|
Assets held for
sale - NSM Group
|
|
—
|
|
—
|
|
978.0
|
Assets held for
sale
|
|
—
|
|
—
|
|
15.9
|
Total Other Operations
assets
|
|
1,892.4
|
|
1,813.5
|
|
2,183.0
|
Total
assets
|
|
$
7,959.1
|
|
$
7,389.3
|
|
$
7,356.7
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
(millions)
|
(Unaudited)
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
Liabilities
|
|
|
|
|
|
|
Financial
Guarantee (HG Global/BAM)
|
|
|
|
|
|
|
Unearned insurance
premiums
|
|
$
299.8
|
|
$
298.3
|
|
$
267.3
|
Debt
|
|
146.6
|
|
146.5
|
|
—
|
Accrued incentive
compensation
|
|
12.1
|
|
28.0
|
|
11.2
|
Other
liabilities
|
|
30.1
|
|
29.0
|
|
28.3
|
Total Financial
Guarantee liabilities
|
|
488.6
|
|
501.8
|
|
306.8
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
|
|
Loss and loss
adjustment expense reserves
|
|
1,345.6
|
|
1,296.5
|
|
999.6
|
Unearned insurance
premiums
|
|
1,123.5
|
|
623.2
|
|
883.1
|
Debt
|
|
184.5
|
|
183.7
|
|
184.8
|
Reinsurance
payable
|
|
193.0
|
|
251.1
|
|
348.9
|
Contingent
consideration
|
|
42.9
|
|
45.3
|
|
30.1
|
Other
liabilities
|
|
143.8
|
|
122.3
|
|
108.4
|
Total P&C
Insurance and Reinsurance liabilities
|
|
3,033.3
|
|
2,522.1
|
|
2,554.9
|
Asset Management
(Kudu)
|
|
|
|
|
|
|
Debt
|
|
191.6
|
|
208.3
|
|
218.2
|
Other
liabilities
|
|
54.8
|
|
65.0
|
|
42.3
|
Total Asset Management
liabilities
|
|
246.4
|
|
273.3
|
|
260.5
|
Other Operations
|
|
|
|
|
|
|
Debt
|
|
33.6
|
|
36.7
|
|
17.3
|
Accrued incentive
compensation
|
|
40.0
|
|
86.1
|
|
25.3
|
Other
liabilities
|
|
24.4
|
|
34.3
|
|
28.6
|
Liabilities held for sale - NSM Group
|
|
—
|
|
—
|
|
494.0
|
Total Other Operations
liabilities
|
|
98.0
|
|
157.1
|
|
565.2
|
Total
liabilities
|
|
3,866.3
|
|
3,454.3
|
|
3,687.4
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
White Mountains's
common shareholder's equity
|
|
|
|
|
|
|
White
Mountains's common shares and paid-in surplus
|
|
537.8
|
|
538.6
|
|
586.3
|
Retained
earnings
|
|
3,367.3
|
|
3,211.8
|
|
2,956.2
|
Accumulated
other comprehensive income (loss), after tax:
|
|
|
|
|
|
|
Net unrealized
gains (losses) from foreign currency translation and
interest rate swap
|
|
(2.7)
|
|
(3.5)
|
|
(.4)
|
Total White
Mountains's common shareholders' equity
|
|
3,902.4
|
|
3,746.9
|
|
3,542.1
|
Noncontrolling
interests
|
|
190.4
|
|
188.1
|
|
127.2
|
Total
equity
|
|
4,092.8
|
|
3,935.0
|
|
3,669.3
|
Total liabilities
and equity
|
|
$
7,959.1
|
|
$
7,389.3
|
|
$
7,356.7
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
BOOK VALUE AND
ADJUSTED BOOK VALUE PER SHARE
|
(Unaudited)
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
Book value per share
numerators (in millions):
|
|
|
|
|
|
|
White Mountains's
common shareholders' equity -
GAAP book value
per share numerator
|
|
$
3,902.4
|
|
$
3,746.9
|
|
$
3,542.1
|
Time value of money
discount on expected future payments on the
BAM
Surplus Notes (1)
|
|
(93.4)
|
|
(95.1)
|
|
(120.9)
|
HG Global's unearned
premium reserve (1)
|
|
243.3
|
|
242.1
|
|
215.8
|
HG Global's net
deferred acquisition costs (1)
|
|
(69.4)
|
|
(69.0)
|
|
(60.6)
|
Adjusted book value per
share numerator
|
|
$
3,982.9
|
|
$
3,824.9
|
|
$
3,576.4
|
Book value per share
denominators (in thousands of shares):
|
|
|
|
|
|
|
Common shares
outstanding - GAAP book value per share denominator
|
|
2,564.5
|
|
2,572.1
|
|
2,994.2
|
Unearned restricted
common shares
|
|
(22.3)
|
|
(14.1)
|
|
(24.2)
|
Adjusted book value per
share denominator
|
|
2,542.2
|
|
2,558.0
|
|
2,970.0
|
GAAP book value per
share
|
|
$
1,521.73
|
|
$
1,456.74
|
|
$
1,183.00
|
Adjusted book value
per share
|
|
$
1,566.73
|
|
$
1,495.28
|
|
$
1,204.17
|
(1) Amount
reflects White Mountains's preferred share ownership in HG Global
of 96.9%.
|
|
|
|
|
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
|
March 31,
2022
|
Quarter-to-date
change in GAAP book value per share,
including dividends:
|
|
4.5 %
|
|
1.2 %
|
|
0.7 %
|
Quarter-to-date
change in adjusted book value per share,
including dividends:
|
|
4.8 %
|
|
1.7 %
|
|
1.2 %
|
Year-to-date change
in GAAP book value per share,
including dividends:
|
|
4.5 %
|
|
24.0 %
|
|
0.7 %
|
Year-to-date change
in adjusted book value per share,
including dividends:
|
|
4.8 %
|
|
25.7 %
|
|
1.2 %
|
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,
|
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
Financial
Guarantee (HG Global/BAM)
|
|
|
|
|
Earned insurance
premiums
|
|
$
7.7
|
|
$
8.4
|
Net investment
income
|
|
7.2
|
|
4.6
|
Net realized and
unrealized investment gains (losses)
|
|
17.0
|
|
(45.1)
|
Other
revenues
|
|
.8
|
|
.8
|
Total Financial
Guarantee revenues
|
|
32.7
|
|
(31.3)
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
Earned insurance
premiums
|
|
255.1
|
|
194.4
|
Net investment
income
|
|
10.6
|
|
1.6
|
Net realized and
unrealized investment gains (losses)
|
|
24.5
|
|
(17.5)
|
Other
revenues
|
|
(2.7)
|
|
(2.8)
|
Total P&C
Insurance and Reinsurance revenues
|
|
287.5
|
|
175.7
|
Asset Management
(Kudu)
|
|
|
|
|
Net investment
income
|
|
14.2
|
|
12.6
|
Net realized and
unrealized investment gains (losses)
|
|
29.6
|
|
22.3
|
Total Asset Management
revenues
|
|
43.8
|
|
34.9
|
Other
Operations
|
|
|
|
|
Net investment
income
|
|
7.0
|
|
1.8
|
Net realized and
unrealized investment gains (losses)
|
|
41.8
|
|
31.9
|
Net realized and
unrealized investment gains (losses)
from
investment in MediaAlpha
|
|
85.2
|
|
18.8
|
Commission
revenues
|
|
3.3
|
|
2.9
|
Other
revenues
|
|
30.6
|
|
25.7
|
Total Other Operations
revenues
|
|
167.9
|
|
81.1
|
Total
revenues
|
|
$
531.9
|
|
$
260.4
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
|
(millions)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Expenses:
|
|
|
|
|
Financial
Guarantee (HG Global/BAM)
|
|
|
|
|
Acquisition
expenses
|
|
$
2.7
|
|
$
3.0
|
General and
administrative expenses
|
|
17.3
|
|
16.3
|
Interest
expense
|
|
4.5
|
|
—
|
Total Financial
Guarantee expenses
|
|
24.5
|
|
19.3
|
P&C Insurance
and Reinsurance (Ark/WM Outrigger)
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
147.8
|
|
122.0
|
Acquisition
expenses
|
|
59.8
|
|
49.9
|
General and
administrative expenses
|
|
35.2
|
|
21.0
|
Change in fair value of
contingent consideration
|
|
(2.4)
|
|
2.1
|
Interest
expense
|
|
5.0
|
|
3.8
|
Total P&C
Insurance and Reinsurance expenses
|
|
245.4
|
|
198.8
|
Asset Management
(Kudu)
|
|
|
|
|
General and
administrative expenses
|
|
3.8
|
|
2.8
|
Interest
expense
|
|
4.7
|
|
2.8
|
Total Asset Management
expenses
|
|
8.5
|
|
5.6
|
Other
Operations
|
|
|
|
|
Cost of
sales
|
|
13.9
|
|
21.4
|
General and
administrative expenses
|
|
39.7
|
|
29.8
|
Interest
expense
|
|
.8
|
|
.3
|
Total Other Operations
expenses
|
|
54.4
|
|
51.5
|
Total
expenses
|
|
332.8
|
|
275.2
|
Pre-tax income
(loss) from continuing operations
|
|
199.1
|
|
(14.8)
|
Income tax
(expense) benefit
|
|
(11.9)
|
|
2.7
|
Net income (loss)
from continuing operations
|
|
187.2
|
|
(12.1)
|
Net income (loss) from
discontinued operations, net of tax - NSM Group
|
|
—
|
|
3.7
|
Net income
(loss)
|
|
187.2
|
|
(8.4)
|
Net (income) loss
attributable to noncontrolling interests
|
|
(7.7)
|
|
41.8
|
Net income (loss)
attributable to White Mountains's common
shareholders
|
|
$
179.5
|
|
$
33.4
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
(millions)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Net income (loss)
attributable to White Mountains's common
shareholders
|
|
$
179.5
|
|
$
33.4
|
Other comprehensive
income (loss), net of tax
|
|
1.2
|
|
(.4)
|
Other comprehensive
income (loss) from discontinued operations,
net of
tax - NSM Group
|
|
—
|
|
(1.9)
|
Comprehensive income
(loss)
|
|
180.7
|
|
31.1
|
Other comprehensive
(income) loss attributable to
noncontrolling interests
|
|
(.4)
|
|
.2
|
Comprehensive income
(loss) attributable to
White
Mountains's common shareholders
|
|
$
180.3
|
|
$
31.3
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
EARNINGS PER
SHARE
|
(Unaudited)
|
|
Income (loss) per
share attributable to White Mountains's
common
shareholders
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Basic earnings
(loss) per share
|
|
|
|
|
Continuing
operations
|
|
$
69.83
|
|
$
9.90
|
Discontinued
operations
|
|
—
|
|
1.20
|
Total consolidated
operations
|
|
$
69.83
|
|
$
11.10
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
Continuing
operations
|
|
$
69.83
|
|
$
9.90
|
Discontinued
operations
|
|
—
|
|
1.20
|
Total consolidated
operations
|
|
$
69.83
|
|
$
11.10
|
Dividends declared
per White Mountains's common share
|
|
$
1.00
|
|
$
1.00
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
YTD SEGMENT
STATEMENTS OF PRE-TAX (LOSS) INCOME
|
(millions)
|
(Unaudited)
|
|
For the Three Months
Ended March 31, 2023
|
|
HG
Global/BAM
|
|
Ark/WM
Outrigger
|
|
|
|
|
|
|
|
|
HG
Global
|
|
BAM
|
|
Ark
|
|
WM
Outrigger Re
|
|
Kudu
|
|
Other
Operations
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
6.4
|
|
$
1.3
|
|
$ 249.9
|
|
$
5.2
|
|
$
—
|
|
$
—
|
|
$
262.8
|
Net investment
income
|
|
4.0
|
|
3.2
|
|
8.4
|
|
2.2
|
|
14.2
|
|
7.0
|
|
39.0
|
Net investment income
(expense) -
BAM surplus note
interest
|
|
6.6
|
|
(6.6)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Net realized and
unrealized investment gains (losses)
|
|
7.9
|
|
9.1
|
|
24.5
|
|
—
|
|
29.6
|
|
41.8
|
|
112.9
|
Net
realized investment gains (losses)
from investment in
MediaAlpha
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
85.2
|
|
85.2
|
Commission
revenues
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3.3
|
|
3.3
|
Other
revenues
|
|
—
|
|
.8
|
|
(2.7)
|
|
—
|
|
—
|
|
30.6
|
|
28.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
24.9
|
|
7.8
|
|
280.1
|
|
7.4
|
|
43.8
|
|
167.9
|
|
531.9
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
—
|
|
—
|
|
147.6
|
|
.2
|
|
—
|
|
—
|
|
147.8
|
Acquisition
expenses
|
|
1.8
|
|
.9
|
|
58.9
|
|
.9
|
|
—
|
|
—
|
|
62.5
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13.9
|
|
13.9
|
General and
administrative expenses
|
|
1.1
|
|
16.2
|
|
35.1
|
|
.1
|
|
3.8
|
|
39.7
|
|
96.0
|
Change in fair value
of contingent consideration
|
|
—
|
|
—
|
|
(2.4)
|
|
—
|
|
—
|
|
—
|
|
(2.4)
|
Interest
expense
|
|
4.5
|
|
—
|
|
5.0
|
|
—
|
|
4.7
|
|
.8
|
|
15.0
|
Total
expenses
|
|
7.4
|
|
17.1
|
|
244.2
|
|
1.2
|
|
8.5
|
|
54.4
|
|
332.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss)
|
|
$ 17.5
|
|
$
(9.3)
|
|
$ 35.9
|
|
$
6.2
|
|
$ 35.3
|
|
$
113.5
|
|
$
199.1
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
YTD SEGMENT
STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED)
|
(millions)
|
(Unaudited)
|
|
For the Three Months
Ended March 31, 2022
|
|
HG
Global/BAM
|
|
Ark/WM
Outrigger
|
|
|
|
|
|
|
|
|
HG
Global
|
|
BAM
|
|
Ark
|
|
Kudu
|
|
Other
Operations
|
|
Total
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Earned insurance
premiums
|
|
$
6.9
|
|
$
1.5
|
|
$
194.4
|
|
$
—
|
|
$
—
|
|
$
202.8
|
Net investment
income
|
|
2.1
|
|
2.5
|
|
1.6
|
|
12.6
|
|
1.8
|
|
20.6
|
Net investment income
(expense) -
BAM surplus note
interest
|
|
2.9
|
|
(2.9)
|
|
—
|
|
—
|
|
—
|
|
—
|
Net realized and
unrealized investment gains (losses)
|
|
(23.5)
|
|
(21.6)
|
|
(17.5)
|
|
22.3
|
|
31.9
|
|
(8.4)
|
Net realized and
unrealized investment gains (losses)
from
investment in MediaAlpha
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18.8
|
|
18.8
|
Commission
revenues
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2.9
|
|
2.9
|
Other
revenues
|
|
.1
|
|
.7
|
|
(2.8)
|
|
—
|
|
25.7
|
|
23.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
(11.5)
|
|
(19.8)
|
|
175.7
|
|
34.9
|
|
81.1
|
|
260.4
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
—
|
|
—
|
|
122.0
|
|
—
|
|
—
|
|
122.0
|
Acquisition
expenses
|
|
2.6
|
|
.4
|
|
49.9
|
|
—
|
|
—
|
|
52.9
|
Cost of
sales
|
|
—
|
|
—
|
|
—
|
|
—
|
|
21.4
|
|
21.4
|
General and
administrative expenses
|
|
.7
|
|
15.6
|
|
21.0
|
|
2.8
|
|
29.8
|
|
69.9
|
Change in fair value
of contingent consideration
|
|
—
|
|
—
|
|
2.1
|
|
—
|
|
—
|
|
2.1
|
Interest
expense
|
|
—
|
|
—
|
|
3.8
|
|
2.8
|
|
.3
|
|
6.9
|
Total
expenses
|
|
3.3
|
|
16.0
|
|
198.8
|
|
5.6
|
|
51.5
|
|
275.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income
(loss)
|
|
$
(14.8)
|
|
$
(35.8)
|
|
$
(23.1)
|
|
$
29.3
|
|
$
29.6
|
|
$
(14.8
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
SELECTED FINANCIAL
DATA
|
($ in
millions)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
BAM
|
|
2023
|
|
2022
|
Gross par value of
primary market policies issued
|
|
$
2,185.4
|
|
$
2,755.1
|
Gross par value of
secondary market policies issued
|
|
704.2
|
|
699.1
|
Total gross par value
of market policies issued
|
|
$
2,889.6
|
|
$
3,454.2
|
Gross written
premiums
|
|
$
9.2
|
|
$
9.4
|
MSC
collected
|
|
11.8
|
|
12.3
|
Total gross written
premiums and MSC collected
|
|
$
21.0
|
|
$
21.7
|
Total
pricing
|
|
73
bps
|
|
63 bps
|
|
|
As of
March 31, 2023
|
|
As of
December 31, 2022
|
|
As of
March 31, 2022
|
Policyholders'
surplus
|
|
$
279.9
|
|
$
283.4
|
|
$
294.7
|
Contingency
reserve
|
|
122.5
|
|
118.2
|
|
105.7
|
Qualified statutory
capital
|
|
402.4
|
|
401.6
|
|
400.4
|
Statutory net unearned
premiums
|
|
56.1
|
|
55.3
|
|
49.8
|
Present value of future
installment premiums and MSC
|
|
12.4
|
|
13.3
|
|
13.8
|
HG Re, Ltd collateral
trusts at statutory value
|
|
562.5
|
|
553.1
|
|
486.7
|
Fidus Re, Ltd
collateral trust at statutory value
|
|
400.0
|
|
400.0
|
|
250.0
|
Claims paying
resources
|
|
$
1,433.4
|
|
$
1,423.3
|
|
$
1,200.7
|
|
|
Three Months Ended
March 31,
|
HG
Global
|
|
2023
|
|
2022
|
Net written
premiums
|
|
$
7.7
|
|
$
8.1
|
Earned
premiums
|
|
$
6.4
|
|
$
6.9
|
|
|
As of
March 31, 2023
|
|
As of
December 31, 2022
|
|
As of
March 31, 2022
|
Unearned
premiums
|
|
$
251.1
|
|
$
249.8
|
|
$
222.6
|
Deferred acquisition
costs
|
|
$
71.7
|
|
$
71.2
|
|
$
62.6
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
SELECTED FINANCIAL
DATA (CONTINUED)
|
($ in
millions)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
Ark/WM
Outrigger
|
|
2023
|
|
2022
|
|
|
Ark
|
|
WM
Outrigger
Re
|
|
Elimination
|
|
Total
|
|
Ark
|
Insurance
premiums:
|
|
|
|
|
|
|
|
|
|
|
Gross written
premiums
|
|
$ 809.4
|
|
$
44.1
|
|
$
(44.1)
|
|
$
809.4
|
|
$
633.1
|
Net written
premiums
|
|
$ 570.1
|
|
$
44.1
|
|
$
—
|
|
$
614.2
|
|
$
543.8
|
Net earned
premiums
|
|
$ 249.9
|
|
$
5.2
|
|
$
—
|
|
$
255.1
|
|
$
194.4
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
expenses:
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expenses
|
|
$ 147.6
|
|
$
.2
|
|
$
—
|
|
$
147.8
|
|
$
122.0
|
Acquisition
expenses
|
|
58.9
|
|
.9
|
|
—
|
|
59.8
|
|
49.9
|
Other underwriting
expenses (1)
|
|
27.5
|
|
—
|
|
—
|
|
27.5
|
|
22.1
|
Total insurance
expenses
|
|
$ 234.0
|
|
$
1.1
|
|
$
—
|
|
$
235.1
|
|
$
194.0
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
ratios:
|
|
|
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense
|
|
59.0 %
|
|
3.9 %
|
|
— %
|
|
58.0 %
|
|
62.7 %
|
Acquisition
expense
|
|
23.6
|
|
17.3
|
|
—
|
|
23.4
|
|
25.7
|
Other underwriting
expense
|
|
11.0
|
|
—
|
|
—
|
|
10.8
|
|
11.4
|
Combined
Ratio
|
|
93.6 %
|
|
21.2 %
|
|
— %
|
|
92.2 %
|
|
99.8 %
|
|
(1) Included
within general and administrative expenses.
|
WHITE MOUNTAINS
INSURANCE GROUP, LTD.
|
SELECTED FINANCIAL
DATA (CONTINUED)
|
(millions)
|
(Unaudited)
|
|
Kudu
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2023
|
|
Twelve Months
Ended
March 31, 2023
|
Net investment income
(1)
|
|
$
12.6
|
|
$
14.2
|
|
$
56.0
|
Net realized and
unrealized investment gains (losses)
|
|
22.3
|
|
29.6
|
|
71.4
|
Total
revenues
|
|
34.9
|
|
43.8
|
|
127.4
|
General and
administrative expenses
|
|
2.8
|
|
3.8
|
|
15.7
|
Interest
expense
|
|
2.8
|
|
4.7
|
|
16.9
|
Total
expenses
|
|
5.6
|
|
8.5
|
|
32.6
|
GAAP pre-tax income
(loss)
|
|
29.3
|
|
35.3
|
|
94.8
|
Income tax (expense)
benefit
|
|
(6.1)
|
|
(7.5)
|
|
(28.3)
|
GAAP net income
(loss)
|
|
23.2
|
|
27.8
|
|
66.5
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
Interest
expense
|
|
2.8
|
|
4.7
|
|
16.9
|
Income tax expense
(benefit)
|
|
6.1
|
|
7.5
|
|
28.3
|
General and
administrative expenses – depreciation
|
|
—
|
|
—
|
|
.1
|
Amortization of other
intangible assets
|
|
.1
|
|
—
|
|
.2
|
EBITDA
|
|
32.2
|
|
40.0
|
|
112.0
|
|
|
|
|
|
|
|
Exclude:
|
|
|
|
|
|
|
Net realized and
unrealized investment (gains) losses
|
|
(22.3)
|
|
(29.6)
|
|
(71.4)
|
Non-cash equity-based
compensation
expense
|
|
.1
|
|
—
|
|
.1
|
Transaction
expenses
|
|
—
|
|
.5
|
|
2.0
|
Adjusted
EBITDA
|
|
$
10.0
|
|
$
10.9
|
|
42.7
|
|
|
|
|
|
|
|
Adjustment to annualize
partial year revenues from participation contracts
acquired
|
4.6
|
Adjustment to remove
partial year revenues from participation contracts sold
|
(10.6)
|
Annualized adjusted
EBITDA
|
|
|
|
|
|
$
36.7
|
|
|
|
|
|
|
|
GAAP net investment
income
|
|
|
|
|
|
$
56.0
|
Adjustment to annualize
partial year revenues from participation contracts
acquired
|
4.6
|
Adjustment to remove
partial year revenues from participation contracts sold
|
(10.6)
|
Annualized
revenue
|
|
|
|
|
|
$
50.0
|
|
|
|
|
|
|
|
Net equity capital
drawn
|
|
|
|
|
|
$
279.3
|
Debt capital
drawn
|
|
|
|
|
|
198.3
|
Total net capital drawn
and invested (2)
|
|
|
|
|
|
$
477.6
|
|
|
|
|
|
|
|
GAAP net investment
income revenue yield
|
|
|
|
|
|
11.7 %
|
|
|
|
|
|
|
|
Cash revenue
yield
|
|
|
|
|
|
10.5 %
|
|
|
|
|
|
|
|
(1)
|
Net investment income
represents revenues from participation contracts.
|
(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)
|
|
Kudu (continued)
|
|
Three Months
Ended
March 31, 2023
|
|
Three Months
Ended
March 31, 2022
|
Beginning balance of
Kudu's participation contracts
|
|
$
695.9
|
|
$
669.5
|
Contributions to participation contracts
|
|
66.7
|
|
—
|
Proceeds
from participation contracts sold (1)
|
|
(109.0)
|
|
—
|
Net realized and
unrealized investment gains on participation contracts sold and
pending sale (2)
|
|
(2.1)
|
|
3.5
|
Net unrealized
investment gains (losses) on participation contracts - all
other (3)
|
|
31.7
|
|
18.8
|
Ending balance of
Kudu's participation contracts
|
|
$
683.2
|
|
$
691.8
|
|
|
(1)
|
Includes $10.3 of
proceeds receivable from participation contracts sold during the
quarter.
|
(2)
|
Includes realized and
unrealized investment gains (losses) recognized from participation
contracts beginning in the quarter a contract is classified as
pending sale.
|
(3)
|
Includes unrealized
investment gains (losses) recognized from (i) ongoing participation
contracts and (ii) participation contracts prior to classification
as pending sale.
|
|
|
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) 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) to add back the unearned premium reserve,
net of deferred acquisition costs, at HG Global.
Under GAAP, White Mountains is required to carry the BAM surplus
notes, including accrued interest, at nominal value with no
consideration for time value of money. Based on a debt service
model that forecasts operating results for BAM through maturity of
the surplus notes, the present value of the BAM surplus notes,
including accrued interest and using an 8% discount rate, was
estimated to be $96 million,
$98 million and $125 million less than the nominal GAAP carrying
values as of March 31, 2023,
December 31, 2022 and March 31, 2022, respectively.
The value of HG Global's unearned premium reserve, net of deferred
acquisition costs, was $179 million,
$179 million and $160 million as of March
31, 2023, December 31, 2022
and March 31, 2022, respectively.
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 7.
- 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 excludes interest
expense on debt, income tax (expense) benefit, depreciation and
amortization of other intangible assets from 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
excluded from EBITDA. The adjustments 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 adjustment 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 15
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.
- 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,
|
|
|
2023
|
|
2022
|
Total consolidated
portfolio return
|
|
4.5 %
|
|
0.8 %
|
Remove
MediaAlpha
|
|
(1.5) %
|
|
(0.5) %
|
Total consolidated
portfolio return
excluding
MediaAlpha
|
|
3.0 %
|
|
0.3 %
|
|
|
Three Months
Ended
March 31, 2023
|
Total equity portfolio
return
|
|
7.6 %
|
Remove
MediaAlpha
|
|
(3.2) %
|
Total equity portfolio
return
excluding
MediaAlpha
|
|
4.4 %
|
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, 2022;
- claims arising from catastrophic events, such as hurricanes,
windstorms, earthquakes, floods, wildfires, tornadoes, tsunamis,
severe winter 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;
- 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.
CONTACT: Rob Seelig
(603) 640-2212
View original
content:https://www.prnewswire.com/news-releases/white-mountains-reports-first-quarter-results-301819382.html
SOURCE White Mountains Insurance Group, Ltd.