WHITE MOUNTAINS REPORTS FIRST QUARTER RESULTS
Rhea-AI Summary
White Mountains (NYSE: WTM) reported book value per share of $2,170 as of March 31, 2026, down ~1% for Q1 2026 including dividends. Comprehensive loss attributable to common shareholders was $(27) million versus income of $35 million in Q1 2025. Key segment results: Ark combined ratio 91% with $1.091 billion gross written premiums; Kudu TTM ROE 12%. Investment portfolio return excluding MediaAlpha was 1.0% in Q1. Unrealized loss on MediaAlpha was $65 million. Undeployed capital after recent deployments is roughly $0.8 billion.
Positive
- Ark combined ratio improved to 91% in Q1 2026
- Ark reported $1.091B gross written premiums in Q1 2026
- Kudu trailing 12-month return on equity 12% as of March 31, 2026
- HG Global gross written premiums increased 24% year-over-year in Q1 2026
- Investment portfolio return excluding MediaAlpha of 1.0% in Q1 2026
Negative
- Comprehensive loss attributable to common shareholders of $(27)M in Q1 2026 versus $35M income in Q1 2025
- Unrealized investment losses from MediaAlpha of $65M in Q1 2026 reduced book value
- Other Operations reported pre-tax loss of $80M in Q1 2026
- White Mountains book value per share declined ~1% to $2,170 as of March 31, 2026
Key Figures
Market Reality Check
Peers on Argus
WTM was down 0.73% pre-earnings while close peers showed mixed moves, with names like HGTY and MCY up and KMPR and RLI down, pointing to stock-specific factors rather than a uniform sector trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 06 | Q4 2025 earnings | Positive | +2.8% | Strong 2025 book value growth and Bamboo sale-driven gains. |
| Nov 06 | Q3 2025 earnings | Positive | -0.3% | Steady BVPS growth and pending Bamboo sale benefits. |
| Aug 07 | Q2 2025 earnings | Positive | -1.8% | Strong underwriting, higher premiums, return to comprehensive income. |
| May 07 | Q1 2025 earnings | Neutral | +0.4% | Slight BVPS increase with mixed contributions across segments. |
| Feb 07 | Q4 2024 earnings | Negative | +0.3% | Quarterly BVPS decline and comprehensive loss despite full-year growth. |
Earnings reports have typically produced modest single-day reactions, with generally positive fundamentals sometimes met with flat or negative price moves.
Over the past year, White Mountains consistently highlighted growth in book value per share, rising from $1,752 in Q1 2025 to $2,188 by year-end 2025, helped by transactions like the Bamboo sale and strong segment performance at Ark, HG Global and Kudu. MediaAlpha’s volatility frequently weighed on results. Undeployed capital has remained sizable, supporting acquisitions such as Distinguished and other platforms. Today’s Q1 2026 update, with book value per share at $2,170 and MediaAlpha-driven losses, fits this pattern of solid operations offset by investment swings.
Historical Comparison
In the past year, WTM’s 5 earnings releases saw an average one-day move of 0.27%, so any sharp reaction to this Q1 2026 update would stand out versus typically muted responses.
Earnings updates show book value per share rising from $1,752 in Q1 2025 to $2,188 by Q4 2025, then easing to $2,170 in Q1 2026 as strong operations increasingly coexist with larger mark-to-market swings, notably from MediaAlpha.
Market Pulse Summary
This announcement highlighted resilient operating performance alongside investment headwinds. Book value per share slipped to $2,170, down 1%, as unrealized losses from MediaAlpha offset a 1.0% portfolio gain excluding that holding and solid results at Ark, Kudu, HG Global and Distinguished. The company also deployed capital, including $125M into Bishop Street and additional deals via WTM Partners, leaving about $0.8B undeployed. Investors may watch MediaAlpha exposure, catastrophe losses and future capital deployment in upcoming quarters.
Key Terms
combined ratio financial
net favorable prior year development technical
basis points financial
statutory financial statements regulatory
Form 10-Q regulatory
AI-generated analysis. Not financial advice.
Liam Caffrey, CEO, commented, "Book value per share ended the quarter at
Comprehensive income (loss) attributable to common shareholders was
Ark/WM Outrigger
The Ark/WM Outrigger segment's combined ratio was
Ark's combined ratio was
Ark has exposure to the war in
Ark reported gross written premiums of
Ark reported pre-tax income of
Ian Beaton, CEO of Ark, said, "We are off to a good start in 2026, producing a combined ratio of
WM Outrigger Re's combined ratio was
Through March 31, 2026, WM Outrigger Re has generated pre-tax income of
Kudu
Kudu reported total revenues of
Rob Jakacki, CEO of Kudu, said, "Despite heightened volatility in global financial markets, Kudu delivered a solid first quarter that reflects both the resilience of our portfolio and investment discipline. We closed one new deal in the quarter and continue to pursue an active pipeline."
HG Global
HG Global reported gross written premiums of
HG Global reported pre-tax income of
The fair value of the BAM surplus notes increased to
Kevin Pearson, President of HG Global, said, "HG Global had a strong start to the year, with gross written premiums increasing
We encourage you to read BAM's first quarter statutory financial statements and operating supplement, which will be available on BAM's website at https://bambonds.com/about-bam/credit-rating-and-financial-information/.
Distinguished
Distinguished reported managed premiums of
On a trailing 12 months basis, Distinguished reported managed premiums of
Jason Rotman, President of Distinguished, said "Distinguished had a flattish quarter. Overall ScaleCo growth was muted, with strong premium growth in the environmental program offset by a decline in the umbrella program amid continued market pressure. During the quarter, we continued to execute well on our inorganic de novo build strategy, launching one new program. We also continue to invest in technology and talent across the platform to drive organic growth over the medium-term."
MediaAlpha
As of March 31, 2026, White Mountains owned 17.9 million shares of MediaAlpha, representing a
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.
Other Operations
White Mountains's Other Operations reported pre-tax loss of
White Mountains's Other Operations reported other revenues of
White Mountains's Other Operations reported general and administrative expenses of
In the second quarter of 2026, WTM Partners closed two new acquisitions. The acquisition of BaseSix Systems LLC, a low voltage electrical systems integrator, closed on April 1, 2026 and represented an equity investment of approximately
Investments
The total consolidated portfolio return was
Mark Plourde, President of White Mountains Advisors, said, "Excluding MediaAlpha, the total portfolio returned
Additional Information
White Mountains is a
WHITE MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (millions) (Unaudited)
| ||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||
Assets | ||||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||||
Fixed maturity investments | $ 1,870.0 | $ 1,917.9 | $ 1,582.1 | |||
Common equity securities | 399.2 | 452.3 | 420.9 | |||
Short-term investments | 900.5 | 866.6 | 625.2 | |||
Other long-term investments | 737.7 | 689.7 | 586.8 | |||
Total investments | 3,907.4 | 3,926.5 | 3,215.0 | |||
Cash (restricted | 97.3 | 104.8 | 160.5 | |||
Reinsurance recoverables | 1,179.3 | 836.1 | 920.4 | |||
Insurance premiums receivable | 1,307.4 | 848.4 | 1,272.6 | |||
Deferred acquisition costs | 300.2 | 211.1 | 279.7 | |||
Goodwill and other intangible assets | 292.5 | 292.5 | 292.5 | |||
Other assets | 136.6 | 134.7 | 184.8 | |||
Total P&C Insurance and Reinsurance assets | 7,220.7 | 6,354.1 | 6,325.5 | |||
Asset Management (Kudu) | ||||||
Short-term investments | 20.9 | 21.9 | 11.9 | |||
Other long-term investments | 1,358.8 | 1,291.4 | 1,126.2 | |||
Total investments | 1,379.7 | 1,313.3 | 1,138.1 | |||
Cash | 13.8 | 34.5 | 15.1 | |||
Accrued investment income | 23.6 | 25.3 | 23.5 | |||
Goodwill and other intangible assets | 7.6 | 7.7 | 7.9 | |||
Other assets | 22.4 | 21.5 | 38.7 | |||
Total Asset Management assets | 1,447.1 | 1,402.3 | 1,223.3 | |||
Financial Guarantee (HG Global) | ||||||
Fixed maturity investments | 705.2 | 693.4 | 631.9 | |||
Short-term investments | 85.6 | 90.8 | 54.1 | |||
Total investments | 790.8 | 784.2 | 686.0 | |||
Cash | .2 | .1 | 6.8 | |||
BAM surplus notes, at fair value | 345.9 | 339.0 | 389.2 | |||
Insurance premiums receivable | 7.8 | 11.4 | 7.6 | |||
Deferred acquisition costs | 97.3 | 96.9 | 86.6 | |||
Other assets | 5.6 | 5.2 | 26.9 | |||
Total Financial Guarantee assets | 1,247.6 | 1,236.8 | 1,203.1 | |||
Specialty Insurance Distribution (Distinguished) | ||||||
Short-term investments | 66.1 | 94.0 | — | |||
Total investments | 66.1 | 94.0 | — | |||
Cash (restricted | .5 | 2.7 | — | |||
Premiums, commissions and fees receivable | 45.9 | 45.7 | — | |||
Goodwill and other intangible assets | 571.5 | 577.7 | — | |||
Other assets | 17.1 | 15.3 | — | |||
Total Specialty Insurance Distribution assets | 701.1 | 735.4 | — | |||
Other Operations | ||||||
Fixed maturity investments | 310.9 | 159.2 | 293.1 | |||
Common equity securities | 147.3 | 30.7 | 120.9 | |||
Investment in MediaAlpha | 166.1 | 231.2 | 165.0 | |||
Short-term investments | 428.1 | 807.4 | 290.8 | |||
Other long-term investments | 1,157.0 | 977.4 | 574.9 | |||
Total investments | 2,209.4 | 2,205.9 | 1,444.7 | |||
Cash | 24.1 | 42.8 | 29.6 | |||
Goodwill and other intangible assets | 140.1 | 142.3 | 63.7 | |||
Other assets | 174.3 | 181.9 | 92.9 | |||
Assets held for sale - Bamboo Group | — | — | 616.2 | |||
Assets held for sale - Other | 4.5 | 5.0 | 5.9 | |||
Total Other Operations assets | 2,552.4 | 2,577.9 | 2,253.0 | |||
Total assets | $ 13,168.9 | $ 12,306.5 | $ 11,004.9 | |||
WHITE MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (millions) (Unaudited)
| ||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||
Liabilities | ||||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||||
Loss and loss adjustment expense reserves | $ 2,585.6 | $ 2,481.0 | $ 2,253.9 | |||
Unearned insurance premiums | 1,613.5 | 1,026.1 | 1,500.6 | |||
Debt | 159.3 | 159.7 | 156.1 | |||
Reinsurance payable | 610.3 | 286.2 | 385.8 | |||
Contingent consideration | 338.3 | 328.3 | 165.0 | |||
Other liabilities | 234.4 | 247.2 | 196.7 | |||
Total P&C Insurance and Reinsurance liabilities | 5,541.4 | 4,528.5 | 4,658.1 | |||
Asset Management (Kudu) | ||||||
Debt | 350.6 | 350.4 | 246.6 | |||
Other liabilities | 105.4 | 96.5 | 84.0 | |||
Total Asset Management liabilities | 456.0 | 446.9 | 330.6 | |||
Financial Guarantee (HG Global) | ||||||
Unearned insurance premiums | 328.5 | 327.9 | 295.8 | |||
Debt | 147.9 | 147.8 | 147.5 | |||
Other liabilities | 23.4 | 23.8 | 20.0 | |||
Total Financial Guarantee liabilities | 499.8 | 499.5 | 463.3 | |||
Specialty Insurance Distribution (Distinguished) | ||||||
Debt | 140.8 | 140.8 | — | |||
Premiums and commissions payable | 76.3 | 81.3 | — | |||
Other liabilities | 67.5 | 85.0 | — | |||
Total Specialty Insurance Distribution liabilities | 284.6 | 307.1 | — | |||
Other Operations | ||||||
Loss and loss adjustment expense reserves | 12.2 | 13.6 | 13.4 | |||
Unearned insurance premiums | 10.8 | 9.6 | 30.8 | |||
Debt | 36.2 | 38.3 | 21.2 | |||
Accrued incentive compensation | 50.8 | 102.9 | 28.2 | |||
Other liabilities | 98.2 | 101.4 | 31.6 | |||
Liabilities held for sale - Bamboo Group | — | — | 282.7 | |||
Liabilities held for sale - Other | 2.9 | 3.6 | 5.3 | |||
Total Other Operations liabilities | 211.1 | 269.4 | 413.2 | |||
Total liabilities | 6,992.9 | 6,051.4 | 5,865.2 | |||
Redeemable noncontrolling interests | 131.5 | 131.5 | — | |||
Equity | ||||||
White Mountains's common shareholders' equity | ||||||
White Mountains's common shares and paid-in surplus | 581.3 | 579.0 | 567.1 | |||
Retained earnings | 4,790.8 | 4,845.6 | 3,943.0 | |||
Accumulated other comprehensive income (loss), after tax: | ||||||
Net unrealized gains (losses) from foreign currency translation | 1.4 | .8 | (.5) | |||
Total White Mountains's common shareholders' equity | 5,373.5 | 5,425.4 | 4,509.6 | |||
Nonredeemable noncontrolling interests | 671.0 | 698.2 | 630.1 | |||
Total equity | 6,044.5 | 6,123.6 | 5,139.7 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ 13,168.9 | $ 12,306.5 | $ 11,004.9 | |||
WHITE MOUNTAINS INSURANCE GROUP, LTD. BOOK VALUE PER SHARE (Unaudited)
| ||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||
Book value per share numerator (in millions): | ||||||
White Mountains's common shareholders' equity | $ 5,373.5 | $ 5,425.4 | $ 4,509.6 | |||
Book value per share denominator (in thousands): | ||||||
Common shares outstanding | 2,476.7 | 2,479.7 | 2,573.7 | |||
Book value per share | $ 2,169.66 | $ 2,187.97 | $ 1,752.17 | |||
Quarter-to-date change in book value per share, including dividends: | (0.8) % | 18.2 % | 0.4 % | |||
Year-to-date change in book value per share, including dividends: | (0.8) % | 25.4 % | 0.4 % | |||
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, | ||||
2026 | 2025 | |||
Revenues: | ||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||
Earned insurance premiums | $ 373.8 | $ 358.0 | ||
Net investment income | 28.7 | 23.5 | ||
Net realized and unrealized investment gains (losses) | (32.9) | 29.5 | ||
Other revenues | 6.7 | 2.2 | ||
Total P&C Insurance and Reinsurance revenues | 376.3 | 413.2 | ||
Asset Management (Kudu) | ||||
Net investment income | 20.8 | 19.4 | ||
Net realized and unrealized investment gains (losses) | 42.0 | 44.0 | ||
Other revenues | .2 | .4 | ||
Total Asset Management revenues | 63.0 | 63.8 | ||
Financial Guarantee (HG Global) | ||||
Earned insurance premiums | 7.7 | 8.2 | ||
Net investment income | 7.7 | 6.3 | ||
Net realized and unrealized investment gains (losses) | (5.2) | 10.0 | ||
Interest income from BAM surplus notes | 6.9 | 7.5 | ||
Other revenues | .1 | .1 | ||
Total Financial Guarantee revenues | 17.2 | 32.1 | ||
Specialty Insurance Distribution (Distinguished) | ||||
Commission and fee revenues | 39.6 | — | ||
Other revenues | .7 | — | ||
Total Specialty Insurance Distribution revenues | 40.3 | — | ||
P&C Insurance Distribution (Bamboo) | ||||
Commission and fee revenues | — | 44.2 | ||
Earned insurance premiums | — | 14.9 | ||
Other revenues | — | 2.3 | ||
Total P&C Insurance Distribution revenues | — | 61.4 | ||
Other Operations | ||||
Earned insurance premiums | 3.4 | 13.9 | ||
Net investment income | 13.5 | 9.7 | ||
Net realized and unrealized investment gains (losses) | 6.9 | 2.8 | ||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | (65.2) | (36.6) | ||
Commission and fee revenues | 3.6 | 3.9 | ||
Net gain on sale of the Bamboo Group | 2.4 | — | ||
Other revenues | 56.4 | 13.6 | ||
Total Other Operations revenues | 21.0 | 7.3 | ||
Total revenues | $ 517.8 | $ 577.8 | ||
WHITE MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED) (millions) (Unaudited)
| ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
Expenses: | ||||
P&C Insurance and Reinsurance (Ark/WM Outrigger) | ||||
Loss and loss adjustment expenses | $ 206.7 | $ 233.5 | ||
Acquisition expenses | 98.8 | 83.5 | ||
General and administrative expenses | 47.5 | 35.9 | ||
Change in fair value of contingent consideration | 10.0 | 9.7 | ||
Interest expense | 4.1 | 4.2 | ||
Total P&C Insurance and Reinsurance expenses | 367.1 | 366.8 | ||
Asset Management (Kudu) | ||||
General and administrative expenses | 4.2 | 4.0 | ||
Interest expense | 7.1 | 6.4 | ||
Total Asset Management expenses | 11.3 | 10.4 | ||
Financial Guarantee (HG Global) | ||||
Acquisition expenses | 2.1 | 1.9 | ||
General and administrative expenses | .7 | .6 | ||
Interest expense | 3.6 | 4.6 | ||
Total Financial Guarantee expenses | 6.4 | 7.1 | ||
Specialty Insurance Distribution (Distinguished) | ||||
Broker commission expenses | 17.2 | — | ||
General and administrative expenses | 37.2 | — | ||
Interest expense | 3.5 | — | ||
Total Specialty Insurance Distribution expenses | 57.9 | — | ||
P&C Insurance Distribution (Bamboo) | ||||
Broker commission expenses | — | 15.5 | ||
Loss and loss adjustment expenses | — | 10.9 | ||
Acquisition expenses | — | 6.6 | ||
General and administrative expenses | — | 20.0 | ||
Interest expense | — | 2.1 | ||
Total P&C Insurance Distribution expenses | — | 55.1 | ||
Other Operations | ||||
Loss and loss adjustment expenses | .3 | 17.4 | ||
Acquisition expenses | 1.3 | 5.1 | ||
Cost of sales | 42.7 | 7.5 | ||
General and administrative expenses | 55.3 | 35.5 | ||
Interest expense | 1.0 | .5 | ||
Total Other Operations expenses | 100.6 | 66.0 | ||
Total expenses | 543.3 | 505.4 | ||
Pre-tax income (loss) | (25.5) | 72.4 | ||
Income tax (expense) benefit | (.8) | (9.6) | ||
Net income (loss) | (26.3) | 62.8 | ||
Net (income) loss attributable to noncontrolling interests | (.9) | (28.9) | ||
Net income (loss) attributable to White Mountains's common shareholders | $ (27.2) | $ 33.9 | ||
WHITE MOUNTAINS INSURANCE GROUP, LTD. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (millions) (Unaudited)
| ||||
Three Months Ended March 31, | ||||
2026 | 2025 | |||
Net income (loss) attributable to White Mountains's common shareholders | $ (27.2) | $ 33.9 | ||
Other comprehensive income (loss), net of tax | 1.0 | 2.0 | ||
Comprehensive income (loss) | (26.2) | 35.9 | ||
Other comprehensive (income) loss attributable to noncontrolling interests | (.4) | (.8) | ||
Comprehensive income (loss) attributable to White Mountains's common shareholders | $ (26.6) | $ 35.1 | ||
WHITE MOUNTAINS INSURANCE GROUP, LTD. EARNINGS PER SHARE (Unaudited)
| ||||
Earnings (loss) per share attributable to White Mountains's common shareholders | Three Months Ended March 31, | |||
2026 | 2025 | |||
Basic earnings (loss) per share | $ (12.59) | $ 13.19 | ||
Diluted earnings (loss) per share | $ (12.59) | $ 13.19 | ||
Dividends declared and paid per White Mountains's common share | $ 1.00 | $ 1.00 | ||
WHITE MOUNTAINS INSURANCE GROUP, LTD. YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (millions) (Unaudited)
| ||||||||||||||
For the Three Months Ended March 31, 2026 | Ark/WM Outrigger | |||||||||||||
Ark | WM Outrigger | Kudu | HG Global | Distinguished | Other | Total | ||||||||
Revenues: | ||||||||||||||
Earned insurance premiums | $ 371.1 | $ 2.7 | $ — | $ 7.7 | $ — | $ 3.4 | $ 384.9 | |||||||
Net investment income (1) | 27.4 | 1.3 | 20.8 | 7.7 | .7 | 13.5 | 71.4 | |||||||
Net realized and unrealized investment gains (losses) | (32.8) | (.1) | 42.0 | (5.2) | — | 6.9 | 10.8 | |||||||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | — | — | — | — | — | (65.2) | (65.2) | |||||||
Interest income from BAM surplus notes | — | — | — | 6.9 | — | — | 6.9 | |||||||
Commission and fee revenues | — | — | — | — | 39.6 | 3.6 | 43.2 | |||||||
Net gain on sale of the Bamboo Group | — | — | — | — | — | 2.4 | 2.4 | |||||||
Other revenues | 6.7 | — | .2 | .1 | — | 56.4 | 63.4 | |||||||
Total revenues | 372.4 | 3.9 | 63.0 | 17.2 | 40.3 | 21.0 | 517.8 | |||||||
Expenses: | ||||||||||||||
Loss and loss adjustment expenses | 206.4 | .3 | — | — | — | .3 | 207.0 | |||||||
Acquisition expenses | 97.9 | .9 | — | 2.1 | — | 1.3 | 102.2 | |||||||
Cost of sales | — | — | — | — | — | 42.7 | 42.7 | |||||||
Broker commission expenses | — | — | — | — | 17.2 | — | 17.2 | |||||||
General and administrative expenses | 47.5 | — | 4.2 | .7 | 37.2 | 55.3 | 144.9 | |||||||
Change in fair value of contingent consideration | 10.0 | — | — | — | — | — | 10.0 | |||||||
Interest expense | 4.1 | — | 7.1 | 3.6 | 3.5 | 1.0 | 19.3 | |||||||
Total expenses | 365.9 | 1.2 | 11.3 | 6.4 | 57.9 | 100.6 | 543.3 | |||||||
Pre-tax income (loss) | $ 6.5 | $ 2.7 | $ 51.7 | $ 10.8 | $ (17.6) | $ (79.6) | $ (25.5) | |||||||
(1) Distinguished's net investment income is 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, 2025 | Ark/WM Outrigger | |||||||||||||
Ark | WM | Kudu | HG Global | Bamboo | Other | 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 | 19.4 | 6.3 | .7 | 9.7 | 59.6 | |||||||
Net realized and unrealized investment gains (losses) (1) | 29.6 | (.1) | 44.0 | 10.0 | .3 | 2.8 | 86.6 | |||||||
Net realized and unrealized investment gains (losses) from investment in MediaAlpha | — | — | — | — | — | (36.6) | (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 | — | .4 | .1 | 1.3 | 13.6 | 17.6 | |||||||
Total revenues | 399.1 | 14.1 | 63.8 | 32.1 | 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 | 7.5 | |||||||
Broker commission expenses | — | — | — | — | 15.5 | — | 15.5 | |||||||
General and administrative expenses | 35.8 | .1 | 4.0 | .6 | 20.0 | 35.5 | 96.0 | |||||||
Change in fair value of contingent consideration | 9.7 | — | — | — | — | — | 9.7 | |||||||
Interest expense | 4.2 | — | 6.4 | 4.6 | 2.1 | .5 | 17.8 | |||||||
Total expenses | 346.8 | 20.0 | 10.4 | 7.1 | 55.1 | 66.0 | 505.4 | |||||||
Pre-tax income (loss) | $ 52.3 | $ (5.9) | $ 53.4 | $ 25.0 | $ 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. SELECTED FINANCIAL DATA (CONTINUED) ($ in millions) (Unaudited)
| ||||||||
Ark/WM Outrigger | Three Months Ended March 31, 2026 | |||||||
Ark | WM Outrigger Re | Elimination | Total | |||||
Insurance premiums: | ||||||||
Gross written premiums | $ 1,090.9 | $ — | $ — | $ 1,090.9 | ||||
Net written premiums | $ 590.1 | $ — | $ — | $ 590.1 | ||||
Net earned premiums | $ 371.1 | $ 2.7 | $ — | $ 373.8 | ||||
Insurance expenses: | ||||||||
Loss and loss adjustment expenses | $ 206.4 | $ .3 | $ — | $ 206.7 | ||||
Acquisition expenses | 97.9 | .9 | — | 98.8 | ||||
Other underwriting expenses (1) | 34.9 | — | — | 34.9 | ||||
Total insurance expenses | $ 339.2 | $ 1.2 | $ — | $ 340.4 | ||||
Insurance ratios: | ||||||||
Loss and loss adjustment expense | 55.6 % | 11.1 % | — % | 55.3 % | ||||
Acquisition expense | 26.4 | 33.3 | — | 26.4 | ||||
Other underwriting expense | 9.4 | — | — | 9.4 | ||||
Combined Ratio | 91.4 % | 44.4 % | — % | 91.1 % | ||||
(1) Included within general and administrative expenses in the consolidated statement of operations. |
Ark/WM Outrigger | Three Months Ended March 31, 2025 | |||||||
Ark | WM 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 | — | — | 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. |
WHITE MOUNTAINS INSURANCE GROUP, LTD. SELECTED FINANCIAL DATA (CONTINUED) ($ in millions) (Unaudited)
| ||||||
Kudu | Three Months Ended | Three Months Ended | Twelve Months Ended March 31, 2026 | |||
Net investment income (1) | $ 19.4 | $ 20.8 | $ 80.1 | |||
Net realized and unrealized investment gains (losses) | 44.0 | 42.0 | 101.5 | |||
Other revenues | .4 | .2 | 1.0 | |||
Total revenues | 63.8 | 63.0 | 182.6 | |||
General and administrative expenses | 4.0 | 4.2 | 18.1 | |||
Interest expense | 6.4 | 7.1 | 26.6 | |||
Total expenses | 10.4 | 11.3 | 44.7 | |||
GAAP pre-tax income (loss) | 53.4 | 51.7 | 137.9 | |||
Income tax (expense) benefit | (11.6) | (13.8) | (26.4) | |||
GAAP net income (loss) | 41.8 | 37.9 | 111.5 | |||
Add back: | ||||||
Interest expense | 6.4 | 7.1 | 26.6 | |||
Income tax expense (benefit) | 11.6 | 13.8 | 26.4 | |||
Depreciation expense | — | — | .2 | |||
Amortization of other intangible assets | .1 | .1 | .3 | |||
EBITDA | 59.9 | 58.9 | 165.0 | |||
Exclude: | ||||||
Net realized and unrealized investment (gains) losses | (44.0) | (42.0) | (101.5) | |||
Non-cash equity-based compensation expense | — | — | .5 | |||
Transaction expenses | (.1) | — | 2.0 | |||
Adjusted EBITDA | $ 15.8 | $ 16.9 | $ 66.0 | |||
Adjustment to annualize partial year revenues from participation contracts acquired | 4.8 | |||||
Adjustment to remove partial year revenues from participation contracts sold | (1.5) | |||||
Annualized adjusted EBITDA | $ 69.3 | |||||
GAAP net investment income (1) | $ 80.1 | |||||
Adjustment to annualize partial year revenues from participation contracts acquired | 4.8 | |||||
Adjustment to remove partial year revenues from participation contracts sold | (1.5) | |||||
Annualized revenue | $ 83.4 | |||||
Net equity capital drawn | $ 489.3 | |||||
Debt capital drawn | 358.3 | |||||
Total net capital drawn and invested (2) | $ 847.6 | |||||
GAAP net investment income revenue yield | 9.5 % | |||||
Cash revenue yield | 9.8 % | |||||
Return on equity | 11.8 % | |||||
(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 March 31, | ||||
Kudu | 2026 | 2025 | ||
Beginning balance of Kudu's participation contracts (1) | $ 1,285.0 | $ 1,008.4 | ||
Contributions to participation contracts (2) | 25.4 | 68.0 | ||
Proceeds from participation contracts sold | — | — | ||
Net realized and unrealized investment gains (losses) on participation contracts sold and pending sale (3) | .3 | — | ||
Net unrealized investment gains (losses) on participation contracts - all other (4) | 41.5 | 44.0 | ||
Ending balance of Kudu's participation contracts (5) | $ 1,352.2 | $ 1,120.4 | ||
(1) As of December 31, 2025 and 2024, Kudu's other long-term investments also include | ||||
(2) Includes contributions to new and existing participation contracts. | ||||
(3) Includes net realized and unrealized investment gains (losses) recognized from participation contracts beginning in the quarter a contract is classified as pending sale. | ||||
(4) Includes net unrealized investment gains (losses) recognized from (i) ongoing participation contracts and (ii) participation contracts prior to classification as pending sale. | ||||
(5) As of March 31, 2026 and 2025, Kudu's other long-term investments also include |
WHITE MOUNTAINS INSURANCE GROUP, LTD. SELECTED FINANCIAL DATA (CONTINUED) ($ in millions) (Unaudited)
| ||||
Three Months Ended March 31, | ||||
HG Global | 2026 | 2025 | ||
Par value assumed: | ||||
Par value of primary market policies assumed (1) | $ 418.4 | $ 327.0 | ||
Par value of secondary market policies assumed (1) | 99.2 | 100.3 | ||
Total par value of policies assumed | $ 517.6 | $ 427.3 | ||
Reinsurance premiums: | ||||
Gross written premiums from primary market | $ 4.1 | $ 3.8 | ||
Gross written premiums from secondary market | 4.2 | 2.9 | ||
Total gross written premiums | 8.3 | 6.7 | ||
Ceding commission paid | 2.5 | 2.0 | ||
Total gross written premiums net of ceding commission paid | $ 5.8 | $ 4.7 | ||
Earned premiums | $ 7.7 | $ 8.2 | ||
Pricing: | ||||
Gross pricing from primary market | 98 bps | 116 bps | ||
Gross pricing from secondary market | 423 bps | 289 bps | ||
Total gross pricing | 160 bps | 157 bps | ||
Total pricing net of ceding commission paid | 112 bps | 110 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 | $ 328.5 | $ 327.9 | $ 295.8 | |||
Deferred acquisition costs | 97.3 | 96.9 | 86.6 | |||
Unearned premiums, net of deferred acquisition costs | $ 231.2 | $ 231.0 | $ 209.2 |
WHITE MOUNTAINS INSURANCE GROUP, LTD. SELECTED FINANCIAL DATA (CONTINUED) (millions) (Unaudited)
| ||
Distinguished | Three Months Ended | |
Commission and fee revenues | $ 39.6 | |
Other revenues | .7 | |
Total revenues | 40.3 | |
Broker commission expenses | 17.2 | |
General and administrative expenses | 37.2 | |
Interest expense | 3.5 | |
Total expenses | 57.9 | |
GAAP pre-tax income (loss) | (17.6) | |
Income tax (expense) benefit | 3.2 | |
GAAP net income (loss) | (14.4) | |
Exclude: | ||
Net (income) loss, GrowthCo | 7.8 | |
ScaleCo net income (loss) | (6.6) | |
Add back: | ||
Interest expense | 3.5 | |
Income tax expense (benefit) | (3.2) | |
Depreciation expense | .1 | |
Amortization of other intangible assets | 7.4 | |
ScaleCo EBITDA | 1.2 | |
Exclude: | ||
Non-cash equity-based compensation expense | 2.4 | |
Restructuring expenses | .8 | |
ScaleCo adjusted EBITDA | $ 4.4 | |
Regulation G
This earnings release includes non-GAAP financial measures that 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 14 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.
- Distinguished's ScaleCo net income (loss), ScaleCo EBITDA and ScaleCo adjusted EBITDA are non-GAAP financial measures.
ScaleCo net income (loss) is a non-GAAP financial measure that excludes the results of the GrowthCo vertical, which is consolidated under GAAP, from Distinguished's consolidated GAAP net income (loss).
ScaleCo 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 ScaleCo net income (loss).
ScaleCo adjusted EBITDA is a non-GAAP financial measure that excludes certain other items in GAAP net income (loss) in addition to those items added back to calculate ScaleCo EBITDA. The items relate to (i) non-cash equity-based compensation expense and (ii) restructuring expenses. A description of each item follows:
- Non-cash equity-based compensation expense - Represents non-cash expenses related to Distinguished's management compensation that are settled with equity units in Distinguished.
- Restructuring expenses - Represents costs directly related to Distinguished's corporate restructuring and capital planning activities.
White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Distinguished's performance. White Mountains also believes that excluding the results of the GrowthCo vertical, which Distinguished views as an investment in start-up programs, is useful to understanding the performance of Distinguished's established programs. See page 17 for the reconciliation of Distinguished's consolidated GAAP net income (loss) to ScaleCo net income (loss), ScaleCo EBITDA and ScaleCo 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, | ||||
2026 | 2025 | |||
Total consolidated portfolio return | 0.2 % | 1.7 % | ||
Remove MediaAlpha | 0.8 | 0.6 | ||
Total consolidated portfolio return excluding MediaAlpha | 1.0 % | 2.3 % | ||
Three Months Ended | ||
Total equity portfolio return | (0.3) % | |
Remove MediaAlpha | 1.9 | |
Total equity portfolio return excluding MediaAlpha | 1.6 % |
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 "may," "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 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 2025 Annual Report on Form 10-K;
- 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;
- 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 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
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SOURCE White Mountains Insurance Group, Ltd.