WHITE MOUNTAINS REPORTS SECOND QUARTER RESULTS
HAMILTON, Bermuda, Aug. 7, 2025 /PRNewswire/ -- White Mountains Insurance Group, Ltd. (NYSE:WTM) reported book value per share of $1,804 as of June 30, 2025, an increase of 3% for both the second quarter of 2025 and the first six months of 2025, including dividends.
Manning Rountree, CEO, commented, "BVPS was up 3% in the quarter. We had sound results at our operating companies and good investment returns. Ark produced an 85% combined ratio and $815 million of gross written premiums in the quarter, up 17% year-over-year. HG Global generated $19 million of gross written premiums, a record second quarter, and grew book value by 2%. Kudu managed flattish results under volatile market conditions. Bamboo had a record quarter, with significant growth in managed premiums and adjusted EBITDA. MediaAlpha's share price increased 19% in the quarter, producing a $31 million mark-to-market gain. Excluding MediaAlpha, our investment portfolio was up 2.3%. In July, we announced our acquisition of Distinguished Programs and closed our transaction with BroadStreet Partners. Including these deployments, undeployed capital now stands at roughly $300 million."
Comprehensive income (loss) attributable to common shareholders was $124 million and $159 million in the second quarter and first six months of 2025 compared to $(55) million and $182 million in the second quarter and first six months of 2024. Results in the second quarter and first six months of 2025 included $31 million and $(6) million of unrealized investment gains (losses) from White Mountains's investment in MediaAlpha compared to $(139) million and $72 million of net realized and unrealized investment gains (losses) in the second quarter and first six months of 2024.
Ark/WM Outrigger
The Ark/WM Outrigger segment's combined ratio was 84% and 90% in the second quarter and first six months of 2025 compared to 87% and 89% in the second quarter and first six months of 2024. Ark/WM Outrigger reported gross written premiums of $815 million and $1,923 million, net written premiums of $579 million and $1,306 million and net earned premiums of $364 million and $722 million in the second quarter and first six months of 2025 compared to gross written premiums of $697 million and $1,569 million, net written premiums of $503 million and $1,101 million and net earned premiums of $318 million and $621 million in the second quarter and first six months of 2024.
Ark's combined ratio was 85% and 90% in the second quarter and first six months of 2025 compared to 89% and 91% in the second quarter and first six months of 2024. Ark's combined ratio in the first six months of 2025 included 13 points of catastrophe losses, driven by losses related to the January 2025 California wildfires. Ark's combined ratio included five points and nine points of net favorable prior year development in the second quarter and first six months of 2025, driven by the property, marine & energy and specialty lines of business, which more than offset six points of unfavorable development in the second quarter related to aviation losses from the conflict in Ukraine. This compares to two points and one point of net favorable prior year development in the second quarter and first six months of 2024, driven primarily by the property line of business.
Ark reported gross written premiums of $815 million and $1,923 million, net written premiums of $536 million and $1,226 million and net earned premiums of $357 million and $703 million in the second quarter and first six months of 2025 compared to gross written premiums of $697 million and $1,569 million, net written premiums of $464 million and $1,028 million and net earned premiums of $311 million and $603 million in the second quarter and first six months of 2024. Premium growth in the second quarter and first six months of 2025 was driven primarily by the property and specialty lines of business.
Ark reported pre-tax income of $91 million and $144 million in the second quarter and first six months of 2025 compared to $50 million and $83 million in the second quarter and first six months of 2024. Ark's results included net realized and unrealized investment gains of $51 million and $81 million in the second quarter and first six months of 2025 compared to $20 million and $31 million in the second quarter and first six months of 2024.
Ian Beaton, CEO of Ark, said, "We enjoyed good results for the first half of 2025. Ark's combined ratio was 85% for the second quarter and 90% year to date, both better than prior year. Gross written premiums in the quarter were up 17% year-over-year, aided by the addition of new underwriting teams and classes of business."
WM Outrigger Re's combined ratio was 44% and 120% in the second quarter and first six months of 2025 compared to 27% and 30% in the second quarter and first six months of 2024. Catastrophe losses in the first six months of 2025 included $19 million of losses related to the California wildfires (net of reinstatement premiums). WM Outrigger Re reported gross and net written premiums of $43 million and $80 million and net earned premiums of $7 million and $19 million in the second quarter and first six months of 2025 compared to gross and net written premiums of $39 million and $73 million and net earned premiums of $8 million and $18 million in the second quarter and first six months of 2024. The increase in gross and net written premiums was driven by White Mountains's larger capital commitment to WM Outrigger Re for the 2025 underwriting year.
WM Outrigger Re reported pre-tax income of $6 million in the second quarter of 2025. Results in the second quarter of 2025 included pre-tax income (loss) of $7 million for the 2025 underwriting year and $(1) million for the 2024 underwriting year. WM Outrigger Re reported pre-tax income of $8 million in the second quarter of 2024. Results in the second quarter of 2024 included pre-tax income of $7 million for the 2024 underwriting year and $1 million for the 2023 underwriting year. WM Outrigger Re reported pre-tax income of $0.3 million in the first six months of 2025. Results in the first six months of 2025 included pre-tax income (loss) of $10 million for the 2025 underwriting year and $(10) million for the 2024 underwriting year. WM Outrigger Re reported pre-tax income of $18 million in the first six months of 2024. Results in the first six months of 2024 included pre-tax income of $14 million for the 2024 underwriting year and $4 million for the 2023 underwriting year.
Through June 30, 2025, WM Outrigger Re generated pre-tax income of $10 million from the 2025 underwriting year, $28 million from the 2024 underwriting year and $76 million from the 2023 underwriting year.
HG Global
HG Global reported gross written premiums of $19 million and $26 million and earned premiums of $7 million and $15 million in the second quarter and first six months of 2025 compared to gross written premiums of $12 million and $21 million and earned premiums of $8 million and $14 million in the second quarter and first six months of 2024. HG Global's total par value of policies assumed was $931 million and $1,358 million in the second quarter and first six months of 2025 compared to $786 million and $1,324 million in the second quarter and first six months of 2024. HG Global's total gross pricing was 206 and 191 basis points in the second quarter and first six months of 2025 compared to 148 and 155 basis points in the second quarter and first six months of 2024.
HG Global reported pre-tax income of $17 million and $42 million in the second quarter and first six months of 2025 compared to $11 million and $17 million in the second quarter and first six months of 2024. HG Global's results included net realized and unrealized investment gains (losses) of $3 million and $13 million in the second quarter and first six months of 2025 compared to $(2) million and $(9) million in the second quarter and first six months of 2024, driven by the movement of interest rates. The fair value of the BAM surplus notes increased to $397 million as of June 30, 2025 compared to $389 million as of March 31, 2025, resulting from approximately $8 million of accrued interest.
Kevin Pearson, President of HG Global, said, "HG Global had a strong second quarter. Gross written premiums increased 66% year-over-year. Par value assumed increased 18% year-over-year, driven by higher issuance of municipal bonds, and total gross pricing increased 39% year-over-year, reflecting higher primary market pricing."
We encourage you to read BAM's second quarter statutory financial statements and operating supplement, which will be available on BAM's website at https://bambonds.com/about-bam/credit-rating-and-finanical-information/.
Kudu
Kudu reported total revenues of $20 million, pre-tax income of $11 million and adjusted EBITDA of $16 million in the second quarter of 2025 compared to total revenues of $70 million, pre-tax income of $61 million and adjusted EBITDA of $12 million in the second quarter of 2024. Total revenues, pre-tax income and adjusted EBITDA included $19 million of net investment income in the second quarter of 2025 compared to $16 million in the second quarter of 2024. Total revenues and pre-tax income also included $1 million of net realized and unrealized investment gains in the second quarter of 2025 compared to $55 million in the second quarter of 2024. On a trailing 12 months basis, return on equity was 8% as of June 30, 2025, down from 13% as of March 31, 2025 due to lower net realized and unrealized investment gains.
Kudu reported total revenues of $84 million, pre-tax income of $64 million and adjusted EBITDA of $32 million in the first six months of 2025 compared to total revenues of $81 million, pre-tax income of $63 million and adjusted EBITDA of $26 million in the first six months of 2024. Total revenues, pre-tax income and adjusted EBITDA included $39 million of net investment income in the first six months of 2025 compared to $33 million in the first six months of 2024. Total revenues and pre-tax income also included $45 million of net realized and unrealized investment gains in the first six months of 2025 compared to $48 million in the first six months of 2024.
Rob Jakacki, CEO of Kudu, said, "Kudu had an okay quarter. GAAP ROE dipped to 8%, reflecting lower realized and unrealized gains, while annualized adjusted EBITDA increased 1%, reflecting continued underlying growth. The fair value of our portfolio was flat, holding up well under volatile market conditions. Our pipeline remains active, and we anticipate continued capital deployment through the rest of 2025."
Bamboo
Bamboo reported commission and fee revenues of $59 million and pre-tax income of $16 million in the second quarter of 2025 compared to commission and fee revenues of $33 million and pre-tax income of $6 million in the second quarter of 2024. Bamboo reported MGA pre-tax income of $15 million and MGA adjusted EBITDA of $26 million in the second quarter of 2025 compared to MGA pre-tax income of $6 million and MGA adjusted EBITDA of $12 million in the second quarter of 2024. Managed premiums, which represent the total premiums placed by Bamboo, were $191 million in the second quarter of 2025 compared to $120 million in the second quarter of 2024. The increase in managed premiums was driven by growth in the renewal book as well as new business volume.
Bamboo reported commission and fee revenues of $103 million and pre-tax income of $22 million in the first six months of 2025 compared to commission and fee revenues of $55 million and pre-tax income of $7 million in the first six months of 2024. Bamboo reported MGA pre-tax income of $25 million and MGA adjusted EBITDA of $46 million in the first six months of 2025 compared to MGA pre-tax income of $7 million and MGA adjusted EBITDA of $18 million in the first six months of 2024. Managed premiums were $338 million in the first six months of 2025 compared to $209 million in the first six months of 2024. The increase in managed premiums was driven by growth in the renewal book as well as new business volume.
Bamboo's estimates for losses to its programs from the January 2025 California wildfires remain unchanged at approximately $160 million as of June 30, 2025.
John Chu, CEO of Bamboo, said, "Bamboo had an excellent quarter. We once again achieved record financial performance across our key financial metrics. Trailing 12 months managed premiums increased to $613 million, up 72% year-over-year, while trailing 12 months MGA adjusted EBITDA increased to $80 million, up 3x year-over-year. Looking ahead, we see continuing opportunities to drive robust, profitable growth in the second half of 2025 and beyond."
MediaAlpha
As of June 30, 2025, White Mountains owned 17.9 million shares of MediaAlpha, representing a 26% basic ownership interest (24% on a fully-diluted/fully-converted basis). As of June 30, 2025, MediaAlpha's share price was $10.95 per share, which increased from $9.24 per share as of March 31, 2025. The carrying value of White Mountains's investment in MediaAlpha was $196 million as of June 30, 2025 compared to $165 million as of March 31, 2025. At our current level of ownership, each $1.00 per share increase or decrease in the share price of MediaAlpha will result in an approximate $7.00 per share increase or decrease in White Mountains's book value per share.
We encourage you to read MediaAlpha's second 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 income (loss) of $36 million and $(23) million in the second quarter and first six months of 2025 compared to $(153) million and $49 million in the second quarter and first six months of 2024. Unrealized investment gains (losses) from White Mountains's investment in MediaAlpha were $31 million and $(6) million in the second quarter and first six months of 2025 compared to net realized and unrealized investment gains (losses) of $(139) million and $72 million in the second quarter and first six months of 2024. Excluding MediaAlpha, net realized and unrealized investment gains were $32 million and $35 million in the second quarter and first six months of 2025 compared to $9 million and $31 million in the second quarter and first six months of 2024. Net investment income was $9 million and $18 million in the second quarter and first six months of 2025 compared to $8 million and $18 million in the second quarter and first six months of 2024.
White Mountains's Other Operations reported other revenues of $57 million and $70 million in the second quarter and first six months of 2025 compared to $15 million and $29 million in the second quarter and first six months of 2024. White Mountains's Other Operations reported cost of sales of $42 million and $50 million in the second quarter and first six months of 2025 compared to $7 million and $15 million in the second quarter and first six months of 2024. The increases in other revenues and cost of sales were driven primarily by the acquisition of Enterprise Solutions by WTM Partners in the second quarter of 2025.
White Mountains's Other Operations reported general and administrative expenses of $54 million and $89 million in the second quarter and first six months of 2025 compared to $43 million and $94 million in the second quarter and first six months of 2024. The increase in general and administrative expenses in the second quarter of 2025 compared to the second quarter of 2024 was driven primarily by parent company transaction costs as well as the acquisition of Enterprise Solutions.
In the second quarter and first six months of 2025, White Mountains's Other Operations reported pre-tax income (loss) of $1 million and $(7) million related to the Bamboo CRV. The results of the Bamboo CRV for the first six months of 2025 included $12 million of losses related to the January 2025 California wildfires. In both the second quarter and first six months of 2024, White Mountains's Other Operations reported pre-tax income of $2 million related to the Bamboo CRV.
Investments
The total consolidated portfolio return was 2.7% in the second quarter of 2025. Excluding MediaAlpha, the total consolidated portfolio return was 2.3% in the second quarter of 2025. The total consolidated portfolio return was -0.1% in the second quarter of 2024. Excluding MediaAlpha, the total consolidated portfolio return was 2.2% in the second quarter of 2024.
The total consolidated portfolio return was 4.5% in the first six months of 2025. Excluding MediaAlpha, the total consolidated portfolio return was 4.7% in the first six months of 2025. The total consolidated portfolio return was 4.5% in the first six months of 2024. Excluding MediaAlpha, the total consolidated portfolio return was 3.5% in the first six months of 2024.
Mark Plourde, President of White Mountains Advisors, said, "Excluding MediaAlpha, the total portfolio was up 2.3% in the quarter, a solid absolute result but mixed versus benchmarks. Our fixed income portfolio returned 1.5%, in-line with the Bloomberg Intermediate Aggregate Index return. The equity portfolio, excluding MediaAlpha, returned 3.4%, behind the S&P 500 Index return of 10.9% in a strong up quarter for common stocks. Equity results were driven by lower relative returns from our market neutral positions and other long-term investments."
Additional Information
White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange under the symbol WTM and the Bermuda Stock Exchange under the symbol WTM.BH. Additional financial information and other items of interest are available at the Company's website located at 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.
CONTACT: Rob Seelig(603) 640-2212
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
(Unaudited)
June 30, 2025
December 31, 2024
June 30, 2024
Assets
P&C Insurance and Reinsurance (Ark/WM Outrigger)
Fixed maturity investments
$ 1,755.8
$ 1,565.1
$ 1,005.5
Common equity securities
435.0
425.4
422.3
Short-term investments
611.4
601.4
904.5
Other long-term investments
609.1
547.8
491.3
Total investments
3,411.3
3,139.7
2,823.6
Cash (restricted $4.6, $14.1, $3.6)
162.7
141.2
156.3
Reinsurance recoverables
1,044.1
589.0
863.8
Insurance premiums receivable
1,451.4
768.6
1,175.4
Deferred acquisition costs
344.8
165.2
245.3
Goodwill and other intangible assets
292.5
292.5
292.5
Other assets
198.7
202.8
147.0
Total P&C Insurance and Reinsurance assets
6,905.5
5,299.0
5,703.9
Financial Guarantee (HG Global)
Fixed maturity investments
670.8
612.1
1,039.4
Short-term investments
42.9
55.5
51.3
Total investments
713.7
667.6
1,090.7
Cash
9.2
11.5
5.0
BAM surplus notes, at fair value
396.7
381.7
—
Insurance premiums receivable
8.0
4.4
6.4
Deferred acquisition costs
90.4
86.6
41.7
Other assets
26.5
27.6
36.3
Total Financial Guarantee assets
1,244.5
1,179.4
1,180.1
Asset Management (Kudu)
Short-term investments
42.3
27.9
37.6
Other long-term investments
1,127.2
1,014.0
907.1
Total investments
1,169.5
1,041.9
944.7
Cash
5.7
.6
1.1
Accrued investment income
24.1
18.0
15.1
Goodwill and other intangible assets
7.8
8.0
8.1
Other assets
23.6
39.9
35.4
Total Asset Management assets
1,230.7
1,108.4
1,004.4
P&C Insurance Distribution (Bamboo)
Fixed maturity investments
39.3
40.7
33.2
Short-term investments
26.6
17.3
19.8
Total investments
65.9
58.0
53.0
Cash (restricted $94.9, $59.5, $60.5)
117.6
74.5
68.9
Premiums, commissions and fees receivable
54.4
70.0
58.0
Goodwill and other intangible assets
347.0
355.0
363.0
Other assets
34.6
27.1
18.8
Total P&C Insurance Distribution assets
619.5
584.6
561.7
Other Operations
Fixed maturity investments
170.0
293.7
266.7
Common equity securities
—
224.6
208.5
Investment in MediaAlpha
195.5
201.6
235.2
Short-term investments
501.9
262.1
192.3
Other long-term investments
570.8
588.4
624.0
Total investments
1,438.2
1,570.4
1,526.7
Cash
42.6
38.6
23.9
Goodwill and other intangible assets
158.1
64.8
67.4
Other assets
183.8
80.4
98.8
Total Other Operations assets
1,822.7
1,754.2
1,716.8
Total assets
$ 11,822.9
$ 9,925.6
$ 10,166.9
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(millions)
(Unaudited)
June 30, 2025
December 31, 2024
June 30, 2024
Liabilities
P&C Insurance and Reinsurance (Ark/WM Outrigger)
Loss and loss adjustment expense reserves
$ 2,288.5
$ 2,127.5
$ 1,890.1
Unearned insurance premiums
1,847.3
853.3
1,526.1
Debt
158.9
154.5
155.0
Reinsurance payable
463.8
149.5
367.3
Contingent consideration
193.4
155.3
107.3
Other liabilities
221.6
224.7
157.2
Total P&C Insurance and Reinsurance liabilities
5,173.5
3,664.8
4,203.0
Financial Guarantee (HG Global)
Unearned insurance premiums
307.9
297.3
333.2
Debt
147.6
147.4
147.2
Other liabilities
32.8
19.4
52.1
Total Financial Guarantee liabilities
488.3
464.1
532.5
Asset Management (Kudu)
Debt
246.8
238.6
203.3
Other liabilities
82.4
78.1
67.9
Total Asset Management liabilities
329.2
316.7
271.2
P&C Insurance Distribution (Bamboo)
Loss and loss adjustment expense reserves
28.8
17.8
16.6
Unearned insurance premiums
12.9
31.5
23.6
Premiums and commissions payable
93.9
88.1
78.8
Debt
104.6
—
—
Other liabilities
41.0
30.3
28.2
Total P&C Insurance Distribution liabilities
281.2
167.7
147.2
Other Operations
Loss and loss adjustment expense reserves
14.2
12.1
3.9
Unearned insurance premiums
9.4
29.0
22.6
Debt
36.7
22.0
24.7
Accrued incentive compensation
41.0
79.3
58.5
Other liabilities
109.2
38.9
31.1
Total Other Operations liabilities
210.5
181.3
140.8
Total liabilities
6,482.7
4,794.6
5,294.7
Equity
White Mountains's common shareholders' equity
White Mountains's common shares and paid-in surplus
576.6
566.4
561.3
Retained earnings
4,067.6
3,919.0
3,863.1
Accumulated other comprehensive income (loss), after tax:
Net unrealized gains (losses) from foreign currency translation
.3
(1.7)
(1.8)
Total White Mountains's common shareholders' equity
4,644.5
4,483.7
4,422.6
Noncontrolling interests
695.7
647.3
449.6
Total equity
5,340.2
5,131.0
4,872.2
Total liabilities and equity
$ 11,822.9
$ 9,925.6
$ 10,166.9
WHITE MOUNTAINS INSURANCE GROUP, LTD.
BOOK VALUE PER SHARE
(Unaudited)
June 30, 2025
March 31, 2025
December 31, 2024
June 30, 2024
Book value per share numerator (in millions):
White Mountains's common shareholders' equity
$ 4,644.5
$ 4,509.6
$ 4,483.7
$ 4,422.6
Book value per share denominator (in thousands of shares):
Common shares outstanding
2,575.1
2,573.7
2,568.1
2,568.3
Book value per share
$ 1,803.57
$ 1,752.17
$ 1,745.87
$ 1,722.02
Quarter-to-date change in book value per share, including dividends:
2.9 %
0.4 %
(2.8) %
(1.2) %
Year-to-date change in book value per share, including dividends:
3.4 %
0.4 %
5.5 %
4.0 %
Year-to-date dividends per share
$ 1.00
$ 1.00
$ 1.00
$ 1.00
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenues:
P&C Insurance and Reinsurance (Ark/WM Outrigger)
Earned insurance premiums
$ 364.2
$ 318.3
$ 722.2
$ 621.1
Net investment income
26.3
22.3
49.8
42.2
Net realized and unrealized investment gains (losses)
51.1
20.3
80.6
30.9
Other revenues
6.3
2.4
8.5
5.9
Total P&C Insurance and Reinsurance revenues
447.9
363.3
861.1
700.1
Financial Guarantee (HG Global)
Earned insurance premiums
7.1
9.0
15.3
16.8
Net investment income
6.5
10.4
12.8
20.1
Net realized and unrealized investment gains (losses)
3.1
(4.3)
13.1
(14.4)
Interest income from BAM surplus notes
7.5
—
15.0
—
Other revenues
—
.6
.1
1.1
Total Financial Guarantee revenues
24.2
15.7
56.3
23.6
Asset Management (Kudu)
Net investment income
19.3
15.7
38.7
32.9
Net realized and unrealized investment gains (losses)
.8
54.5
44.8
48.0
Other revenues
.3
—
.7
—
Total Asset Management revenues
20.4
70.2
84.2
80.9
P&C Insurance Distribution (Bamboo)
Commission and fee revenues
59.1
32.7
103.3
54.6
Earned insurance premiums
1.6
8.0
16.5
16.4
Other revenues
1.8
1.3
4.1
2.1
Total P&C Insurance Distribution revenues
62.5
42.0
123.9
73.1
Other Operations
Earned insurance premiums
2.3
8.6
16.2
8.6
Net investment income
8.6
8.4
18.3
18.3
Net realized and unrealized investment gains (losses)
31.8
8.5
34.6
30.7
Net realized and unrealized investment gains (losses) from
investment in MediaAlpha
30.5
(139.2)
(6.1)
71.5
Commission and fee revenues
4.2
3.4
8.1
7.0
Other revenues
56.8
14.5
70.4
28.9
Total Other Operations revenues
134.2
(95.8)
141.5
165.0
Total revenues
$ 689.2
$ 395.4
$ 1,267.0
$ 1,042.7
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Expenses:
P&C Insurance and Reinsurance (Ark/WM Outrigger)
Loss and loss adjustment expenses
$ 164.0
$ 175.7
$ 397.5
$ 355.7
Acquisition expenses
97.2
68.2
180.7
134.5
General and administrative expenses
56.5
42.9
92.4
