White Mountains Insurance Group Ltd (WTM) 10-Q Quarterly Report May 2022

reported book value per share of $1,183 and adjusted book value per share of $1,204 as of March 31, 2022. Book value per share and adjusted book value per share both increased 1% in the first quarter of 2022.

Manning Rountree, CEO, commented, “We had a good first quarter, with ABVPS up 1%. Rising interest rates were a headwind in our fixed income portfolio. This was more than offset by positive results from our operating companies and positive returns in our equity portfolio. BAM produced $22 million of total premiums and member surplus contributions in the quarter, driven by strong secondary market activity. Ark produced break-even underwriting results in the quarter, reflecting the impact of estimated losses emanating from the conflict in Ukraine. Ark wrote $633 million of gross written premiums in the quarter, up 57% year over year, with risk adjusted rate change up 9% year over year. NSM produced healthy growth in both pro forma controlled premiums and pro forma adjusted EBITDA. Kudu posted growth in adjusted EBITDA and recognized $22 million of mark-to-market gains in the fair value of its portfolio of participation contracts. MediaAlpha’s share price was up 7% in the quarter, producing a $19 million mark-to-market gain. Excluding MediaAlpha, the investment portfolio returned 0.3% in the quarter, as gains in equities more than offset mark-to-market losses in fixed income. We completed $39 million of share repurchases in the quarter. Including the dividend received from HG Global in May, undeployed capital now stands at roughly $400 million.”

Comprehensive income (loss) attributable to common shareholders was $31 million in the first quarter of 2022 compared to $(74) million in the first quarter of 2021. Results in the first quarter of 2022 included $19 million of unrealized investment gains from White Mountains’s investment in MediaAlpha. Results in the first quarter of 2021 included $42 million of net realized and unrealized investment losses from White Mountains’s investment in MediaAlpha and a loss of $29 million related to NSM’s sale of its Fresh Insurance motor business.

HG Global/BAM

BAM’s gross written premiums and member surplus contributions (MSC) collected were $22 million in the first quarter of 2022 compared to $26 million in the first quarter of 2021. BAM insured municipal bonds with par value of $3.5 billion in the first quarter of 2022 compared to $3.5 billion in the first quarter of 2021, which included $806 million from an assumed reinsurance transaction. Total pricing was 63 basis points in the first quarter of 2022 compared to 74 basis points in the first quarter of 2021. BAM’s total claims paying resources were $1,201 million at March 31, 2022 compared to $1,192 million at December 31, 2021 and $1,144 million at March 31, 2021.

Seán McCarthy, CEO of BAM, said, “BAM insured primary and secondary market volume reached a new record high for first-quarter activity, up 27% year over year. Pricing was in line with full-year 2021 levels. Interest rates were higher and more volatile during the quarter, supporting increased investor demand for insured bonds.”

Through the COVID-19 pandemic, BAM’s portfolio has performed well. All BAM-insured bond payments due through May 1, 2022 have been made by insureds, and there are no credits on BAM’s watchlist.

The following information was filed by White Mountains Insurance Group Ltd (WTM) on Friday, May 6, 2022 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.

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Inside White Mountains Insurance Group Ltd's 10-Q Quarterly Report:

Financial - Shares Highlight
The following discussion also includes twelve non-GAAP financial measures: (i) adjusted book value per share, (ii) BAM's gross written premiums and member surplus contributions ("MSC") from new business, (iii) Ark's adjusted loss and LAE ratio, (iv) Ark's adjusted insurance acquisition expense ratio, (v) Ark's adjusted other underwriting expense ratio, (vi) Ark's adjusted combined ratio (vii) NSM's earnings before interest, taxes, depreciation and amortization ("EBITDA"), (viii) NSM's adjusted EBITDA, (ix) Kudu's EBITDA, (x) Kudu's adjusted EBITDA, (xi) total consolidated portfolio returns excluding MediaAlpha and (xii) adjusted capital, that have been reconciled from their most comparable GAAP financial measures on page 72.

M & A - Other Highlight
Ark's adjusted loss and LAE, adjusted insurance acquisition expense, adjusted other underwriting expense and adjusted combined ratios Ark's adjusted loss and LAE ratio, adjusted insurance acquisition expense ratio, adjusted other underwriting expense ratio and adjusted combined ratio are non-GAAP financial measures, which are derived by adjusting the GAAP ratios to add back the impact of whole-account quota-share reinsurance arrangements attributable to TPC Providers for the Syndicates.
Financial - Shares Highlight
Book value per share and adjusted book value per share both increased 1% in the first quarter of 2022, including dividends.
Financial - Shares Highlight
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 LAE and the adequacy of its loss and LAE 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.
Revenue - Product Highlight
The increases in Kudu's total revenues, pre-tax income and adjusted EBITDA were driven primarily by amounts earned from $225 million in new deployments, including transaction costs, that Kudu made during 2021.
Other - Other
49 Goodwill and Other Intangible...Read more
M & A - Other
58 The following table presents...Read more
M & A - Other
In addition to the acquisition...Read more
Revenue - Product
Specialty Transportation: NSM's specialty transportation...Read more
Financial - Expense
Impairments of intangible assets -...Read more
Financial - Shares
Adjusted book value per share...Read more
Financial - Dividend
Dividend Capacity Following is a...Read more
Financial - Expense
By insuring the timely payment...Read more
Financial - Expense
The decreases in general and...Read more
Financial - Income
The effective tax rate was...Read more
Revenue - Product
Ark's gross written premiums in...Read more
Legal - Other
The increase in claims paying...Read more
Revenue - Product
Gross written premiums increased 57%...Read more
Legal - Other
Incurred losses related to Ukraine...Read more
Other - Other
71 NON-GAAP FINANCIAL MEASURES This...Read more
Financial - Expense
NSM's general and administrative expenses...Read more
Financial - Shares
White Mountains's portfolio of common...Read more
Other - Other
All statements, other than statements...Read more
M & A - Other
62 Kudu Kudu provides capital...Read more
Financial - Dividend
For segment reporting, the HG...Read more
Financial - Dividend
For segment reporting, the HG...Read more
Revenue - Product
Social Services: NSM's social services...Read more
Other - Other
Investment results from Kudu's Participation...Read more
Financial - Dividend
As of March 31, 2022,...Read more
Revenue - Product
A portion of the premium...Read more
Financial - Shares
Adjusted Book Value Per Share...Read more
Financial - Shares
As of March 31, 2022,...Read more
Other - Other
Under its agreements with HG...Read more
Other - Other
A description of each adjustment...Read more
Legal - Other
The GAAP combined ratio for...Read more
Financial - Earnings
The following table presents the...Read more
Financial - Shares
As of March 31, 2022,...Read more
Financial - Expense
The decrease in cash used...Read more
Financial - Expense
If one or more of...Read more
Other - Other
White Mountains believes these adjustments...Read more
Other - Other
White Mountains believes that these...Read more
Other - Other
White Mountains believes that these...Read more
Revenue - Product
The increase in controlled premium...Read more
Revenue - Product
Pet: NSM's pet controlled premium...Read more
Other - Other
The results in the first...Read more
Financial - Expense
EBITDA is a non-GAAP financial...Read more
Financial - Expense
EBITDA is a non-GAAP financial...Read more
Other - Other
These statements are based on...Read more
Financial - Expense
For purposes of discussing rates...Read more
Financial - Income
Investment returns for the first...Read more
Financial - Income
Investment returns in the first...Read more
Financial - Income
Results in the first quarter...Read more
Other - Other
White Mountains believes these measures...Read more
Other - Other
The words "could", "will", "believe",...Read more
Financial - Shares
White Mountains's portfolio of common...Read more
Revenue - Product
Diversified B2B: NSM's diversified B2B...Read more
Revenue - Product
NSM earns commissions based on...Read more
Revenue - Product
Total revenues and pre-tax income...Read more
Financial - Income
The relative results in the...Read more
Legal - Other
White Mountains's insurance and reinsurance...Read more
Other - Other
For the periods presented, the...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

White Mountains Insurance Group Ltd provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 10.2: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: WTM
CIK: 776867
Form Type: 10-Q Quarterly Report
Accession Number: 0000776867-22-000005
Submitted to the SEC: Fri May 06 2022 8:39:01 AM EST
Accepted by the SEC: Fri May 06 2022
Period: Thursday, March 31, 2022
Industry: Fire Marine And Casualty Insurance

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White Mountains Insurance Group Ltd (WTM) SEC Filing 10-Q Quarterly Report for the period ending Thursday, March 31, 2022

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