CONTACT: Todd Pozefsky
WHITE MOUNTAINS REPORTS THIRD QUARTER RESULTS
HAMILTON, Bermuda (November 8, 2017) - White Mountains Insurance Group, Ltd. (NYSE: WTM) reported book value per share of $925 and adjusted book value per share of $906 as of September 30, 2017. Book value per share increased 17% and 18% for the third quarter and first nine months of 2017, including dividends, and adjusted book value per share increased 17% and 15% for the third quarter and first nine months of 2017, including dividends.
On September 28, 2017, Intact Financial Corporation completed its previously announced acquisition of OneBeacon in an all-cash transaction for $18.10 per share (the “OneBeacon Transaction”). As of June 30, 2017, including the then estimated net gain from the OneBeacon Transaction, book value per share would have been approximately $908 and adjusted book value per share would have been approximately $890.
Manning Rountree, CEO, commented, “With the successful closing of the OneBeacon Transaction, we ended the quarter with adjusted book value per share of $906. Our underlying growth in ABVPS was 1.8%(1), driven by solid investment results, with our portfolio up 1.4% in the quarter. BAM’s par insured dipped in the quarter, while its pricing levels improved meaningfully. During the quarter, we repurchased roughly 822,000 White Mountains common shares for $715 million, leaving us with $2.3 billion in undeployed capital. In October, we announced bolt-on acquisitions at both MediaAlpha and PassportCard, where we see exciting potential. On the other hand, we made small but nevertheless disappointing downward revisions to our prior period financials relating to Wobi, one of our overseas portfolio companies, as discussed further below.”
Comprehensive income attributable to common shareholders was $565 million and $608 million in the third quarter and first nine months of 2017, compared to $91 million and $586 million in the third quarter and first nine months of 2016. Net income attributable to common shareholders was $562 million and $605 million in the third quarter and first nine months of 2017, compared to $91 million and $441 million in the third quarter and first nine months of 2016.
On September 28, 2017, White Mountains received $1.3 billion in cash proceeds from the OneBeacon Transaction and recorded a gain of $555 million, net of transaction costs. As a result of the OneBeacon Transaction, OneBeacon’s results have been reported as discontinued operations within White Mountains’s GAAP financial statements. Because the OneBeacon Transaction was a fixed price deal, OneBeacon’s results were economically transferred to the buyer at signing.
White Mountains reported a net loss from OneBeacon of $15 million in discontinued operations in the third quarter of 2017, driven primarily by underwriting losses. OneBeacon’s combined ratio for the third quarter of 2017 was 113%, driven by 9 points of net unfavorable loss reserve development, primarily in the Program, Healthcare and Government Risk businesses, and 9 points of catastrophe losses, primarily due to losses from Hurricane Harvey.
(1) See “Regulation G” on page 12.
The following information was filed by White Mountains Insurance Group Ltd (WTM) on Wednesday, November 8, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.