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Share Name | Share Symbol | Market | Type |
---|---|---|---|
White Moutains Insurance Group Ltd | NYSE:WTM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1,860.01 | 370 | 12:41:45 |
Bermuda
|
|
94-2708455
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
|
|
|
80 South Main Street,
|
|
03755-2053
|
Hanover, New Hampshire
|
|
(Zip Code)
|
(Address of principal executive offices)
|
|
|
Large accelerated filer
ý
|
Accelerated filer
o
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
Emerging growth company
o
|
|
|
Page No.
|
|
|
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Consolidated Balance Sheets,
June 30, 2017 and December 31, 2016
|
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|
|
|
Three and Six Months Ended June 30, 2017 and 2016
|
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|
|
|
|
Consolidated Statements of Changes in Equity, Six Months Ended June 30, 2017 and 2016
|
|
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|
|
Consolidated Statements of Cash Flows, Six Months Ended June 30, 2017 and 2016
|
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||
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|
|
|
|
Results of Operations for the Three and Six Months Ended June 30, 2017 and 2016
|
|
|
|
|
|
||
|
|
|
|
||
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|
|
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||
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|
|
Item 1.
|
Financial Statements
|
(Millions, except share amounts)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Assets
|
|
Unaudited
|
|
|
|
|||
Fixed maturity investments, at fair value
|
|
$
|
1,566.9
|
|
|
$
|
2,081.1
|
|
Short-term investments, at amortized cost (which approximates fair value)
|
|
71.6
|
|
|
174.9
|
|
||
Common equity securities, at fair value
|
|
827.9
|
|
|
285.6
|
|
||
Other long-term investments
|
|
226.5
|
|
|
172.8
|
|
||
Total investments
|
|
2,692.9
|
|
|
2,714.4
|
|
||
Cash
|
|
53.3
|
|
|
80.2
|
|
||
Insurance premiums receivable
|
|
2.8
|
|
|
1.6
|
|
||
Deferred acquisition costs
|
|
13.0
|
|
|
10.6
|
|
||
Accrued investment income
|
|
16.0
|
|
|
14.8
|
|
||
Accounts receivable on unsettled investment sales
|
|
199.5
|
|
|
4.8
|
|
||
Goodwill and other intangible assets
|
|
49.5
|
|
|
54.7
|
|
||
Other assets
|
|
62.8
|
|
|
64.1
|
|
||
Assets held for sale
|
|
3,696.4
|
|
|
3,599.5
|
|
||
Total assets
|
|
$
|
6,786.2
|
|
|
$
|
6,544.7
|
|
Liabilities
|
|
|
|
|
|
|
||
Unearned insurance premiums
|
|
$
|
109.9
|
|
|
$
|
82.9
|
|
Debt
|
|
10.6
|
|
|
12.7
|
|
||
Accrued incentive compensation
|
|
63.3
|
|
|
95.7
|
|
||
Accounts payable on unsettled investment purchases
|
|
114.6
|
|
|
—
|
|
||
Other liabilities
|
|
44.9
|
|
|
46.9
|
|
||
Liabilities held for sale
|
|
2,678.8
|
|
|
2,569.3
|
|
||
Total liabilities
|
|
3,022.1
|
|
|
2,807.5
|
|
||
Equity
|
|
|
|
|
|
|
||
White Mountains’s common shareholders’ equity
|
|
|
|
|
|
|
||
White Mountains’s common shares at $1 par value per share - authorized 50,000,000 shares;
|
|
|
|
|
|
|
||
issued and outstanding 4,571,625 and 4,563,814 shares
|
|
4.6
|
|
|
4.6
|
|
||
Paid-in surplus
|
|
810.5
|
|
|
806.1
|
|
||
Retained earnings
|
|
2,835.2
|
|
|
2,797.2
|
|
||
Accumulated other comprehensive loss, after tax:
|
|
|
|
|
||||
Net unrealized foreign currency translation losses
|
|
—
|
|
|
(1.4
|
)
|
||
Accumulated other comprehensive loss from net change
in benefit plan assets and obligations
|
|
(3.0
|
)
|
|
(3.2
|
)
|
||
Total White Mountains’s common shareholders’ equity
|
|
3,647.3
|
|
|
3,603.3
|
|
||
Non-controlling interests
|
|
116.8
|
|
|
133.9
|
|
||
Total equity
|
|
3,764.1
|
|
|
3,737.2
|
|
||
Total liabilities and equity
|
|
$
|
6,786.2
|
|
|
$
|
6,544.7
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
(Millions, except per share amounts)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Earned insurance premiums
|
|
$
|
2.2
|
|
|
$
|
3.3
|
|
|
$
|
5.2
|
|
|
$
|
6.8
|
|
Net investment income
|
|
14.7
|
|
|
6.1
|
|
|
27.5
|
|
|
8.6
|
|
||||
Net realized and unrealized investment gains
|
|
33.7
|
|
|
3.4
|
|
|
70.0
|
|
|
16.3
|
|
||||
Advertising and commission revenues
|
|
33.2
|
|
|
29.2
|
|
|
71.7
|
|
|
63.0
|
|
||||
Other revenue
|
|
1.6
|
|
|
7.2
|
|
|
4.5
|
|
|
13.3
|
|
||||
Total revenues
|
|
85.4
|
|
|
49.2
|
|
|
178.9
|
|
|
108.0
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss and loss adjustment expenses
|
|
—
|
|
|
2.3
|
|
|
1.1
|
|
|
4.6
|
|
||||
Insurance acquisition expenses
|
|
.9
|
|
|
1.4
|
|
|
2.2
|
|
|
3.1
|
|
||||
Other underwriting expenses
|
|
.1
|
|
|
.1
|
|
|
.2
|
|
|
.2
|
|
||||
Cost of sales
|
|
26.8
|
|
|
24.4
|
|
|
55.6
|
|
|
52.9
|
|
||||
General and administrative expenses
|
|
57.5
|
|
|
45.2
|
|
|
117.9
|
|
|
99.9
|
|
||||
Interest expense
|
|
.5
|
|
|
.9
|
|
|
.9
|
|
|
2.1
|
|
||||
Total expenses
|
|
85.8
|
|
|
74.3
|
|
|
177.9
|
|
|
162.8
|
|
||||
Pre-tax (loss) income from continuing operations
|
|
(.4
|
)
|
|
(25.1
|
)
|
|
1.0
|
|
|
(54.8
|
)
|
||||
Income tax benefit
|
|
1.0
|
|
|
4.0
|
|
|
1.3
|
|
|
5.6
|
|
||||
Net income (loss) from continuing operations
|
|
.6
|
|
|
(21.1
|
)
|
|
2.3
|
|
|
(49.2
|
)
|
||||
(Loss) gain from sale of other discontinued operations, net of tax
|
|
(.6
|
)
|
|
366.6
|
|
|
(1.6
|
)
|
|
366.6
|
|
||||
Net income from discontinued operations, net of tax
|
|
3.4
|
|
|
17.0
|
|
|
35.7
|
|
|
64.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
3.4
|
|
|
362.5
|
|
|
36.4
|
|
|
381.8
|
|
||||
Net loss (income) attributable to non-controlling interests
|
|
12.1
|
|
|
(21.4
|
)
|
|
13.4
|
|
|
(27.7
|
)
|
||||
Net income attributable to White Mountains’s common shareholders
|
|
15.5
|
|
|
341.1
|
|
|
49.8
|
|
|
354.1
|
|
||||
Comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in foreign currency translation
|
|
.6
|
|
|
(.2
|
)
|
|
1.4
|
|
|
(.1
|
)
|
||||
Comprehensive income from discontinued operations, net of tax
|
|
.2
|
|
|
108.3
|
|
|
.3
|
|
|
145.5
|
|
||||
Comprehensive income
|
|
16.3
|
|
|
449.2
|
|
|
51.5
|
|
|
499.5
|
|
||||
Other comprehensive income attributable to non-controlling interests
|
|
(.1
|
)
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
||||
Comprehensive income attributable to White Mountains’s
common shareholders |
|
$
|
16.2
|
|
|
$
|
449.2
|
|
|
$
|
51.4
|
|
|
$
|
499.5
|
|
Income per share attributable to White Mountains’s common shareholders
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic income (loss) per share
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
|
$
|
2.78
|
|
|
$
|
(8.34
|
)
|
|
$
|
3.42
|
|
|
$
|
(14.47
|
)
|
Discontinued operations
|
|
.61
|
|
|
75.27
|
|
|
7.47
|
|
|
81.04
|
|
||||
Total consolidated operations
|
|
$
|
3.39
|
|
|
$
|
66.93
|
|
|
$
|
10.89
|
|
|
$
|
66.57
|
|
Diluted income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
||||||
Continuing operations
|
|
$
|
2.78
|
|
|
$
|
(8.32
|
)
|
|
$
|
3.42
|
|
|
$
|
(14.46
|
)
|
Discontinued operations
|
|
.61
|
|
|
75.11
|
|
|
7.47
|
|
|
80.96
|
|
||||
Total consolidated operations
|
|
$
|
3.39
|
|
|
$
|
66.79
|
|
|
$
|
10.89
|
|
|
$
|
66.50
|
|
Dividends declared per White Mountains’s common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
|
White Mountains’s Common Shareholders’ Equity
|
|
|
|
|
||||||||||||||||||
(Millions)
|
|
Common shares and paid-in surplus
|
|
Retained earnings
|
|
AOCI, after tax
|
|
Total
|
|
Non-controlling interest
|
|
Total Equity
|
||||||||||||
Balance at January 1, 2017
|
|
$
|
810.7
|
|
|
$
|
2,797.2
|
|
|
$
|
(4.6
|
)
|
|
$
|
3,603.3
|
|
|
$
|
133.9
|
|
|
$
|
3,737.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
|
—
|
|
|
49.8
|
|
|
—
|
|
|
49.8
|
|
|
(13.4
|
)
|
|
36.4
|
|
||||||
Net change in foreign currency translation and
benefit plan assets and obligations
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
1.6
|
|
|
.1
|
|
|
1.7
|
|
||||||
Total comprehensive income
|
|
—
|
|
|
49.8
|
|
|
1.6
|
|
|
51.4
|
|
|
(13.3
|
)
|
|
38.1
|
|
||||||
Dividends declared on common shares
|
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
(4.6
|
)
|
||||||
Dividends to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.1
|
)
|
|
(12.1
|
)
|
||||||
Repurchases and retirements of common shares
|
|
(2.0
|
)
|
|
(7.2
|
)
|
|
—
|
|
|
(9.2
|
)
|
|
(5.2
|
)
|
|
(14.4
|
)
|
||||||
Issuances of common shares
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
||||||
Deconsolidation of non-controlling interests
associated with the sale of Star & Shield
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
|
(4.4
|
)
|
||||||
Issuance of shares to non-controlling interests
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
4.8
|
|
|
—
|
|
||||||
Net contributions from non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.6
|
|
|
12.6
|
|
||||||
Amortization of restricted share awards
|
|
9.6
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|
.5
|
|
|
10.1
|
|
||||||
Balance at June 30, 2017
|
|
$
|
815.1
|
|
|
$
|
2,835.2
|
|
|
$
|
(3.0
|
)
|
|
$
|
3,647.3
|
|
|
$
|
116.8
|
|
|
$
|
3,764.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
White Mountains’s Common Shareholders’ Equity
|
|
|
|
|
||||||||||||||||||
(Millions)
|
|
Common shares and paid-in surplus
|
|
Retained earnings
|
|
AOCI, after tax
|
|
Total
|
|
Non-controlling interest
|
|
Total Equity
|
||||||||||||
Balance at January 1, 2016
|
|
$
|
978.2
|
|
|
$
|
3,084.9
|
|
|
$
|
(149.9
|
)
|
|
$
|
3,913.2
|
|
|
$
|
454.8
|
|
|
$
|
4,368.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
|
—
|
|
|
354.1
|
|
|
—
|
|
|
354.1
|
|
|
27.7
|
|
|
381.8
|
|
||||||
Net change in foreign currency translation and
benefit plan assets and obligations
|
|
—
|
|
|
—
|
|
|
32.1
|
|
|
32.1
|
|
|
—
|
|
|
32.1
|
|
||||||
Recognition of foreign currency translation and
other accumulated comprehensive items from
the sale of Sirius Group
|
|
—
|
|
|
—
|
|
|
113.3
|
|
|
113.3
|
|
|
—
|
|
|
113.3
|
|
||||||
Total comprehensive income
|
|
—
|
|
|
354.1
|
|
|
145.4
|
|
|
499.5
|
|
|
27.7
|
|
|
527.2
|
|
||||||
Dividends declared on common shares
|
|
—
|
|
|
(5.4
|
)
|
|
—
|
|
|
(5.4
|
)
|
|
—
|
|
|
(5.4
|
)
|
||||||
Dividends to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12.1
|
)
|
|
(12.1
|
)
|
||||||
Repurchases and retirements of common shares
|
|
(120.4
|
)
|
|
(427.0
|
)
|
|
—
|
|
|
(547.4
|
)
|
|
—
|
|
|
(547.4
|
)
|
||||||
Issuance of common shares
|
|
9.1
|
|
|
—
|
|
|
—
|
|
|
9.1
|
|
|
—
|
|
|
9.1
|
|
||||||
Deconsolidation of non-controlling interests
associated with the sale of Sirius Group
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250.0
|
)
|
|
(250.0
|
)
|
||||||
Acquisition from non-controlling interests -
OneBeacon
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
(8.8
|
)
|
|
(11.5
|
)
|
||||||
Issuances of shares to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.3
|
|
|
.3
|
|
||||||
Net contributions from non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.9
|
|
|
11.9
|
|
||||||
Amortization of restricted share awards
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
|
.4
|
|
|
9.3
|
|
||||||
Balance at June 30, 2016
|
|
$
|
873.1
|
|
|
$
|
3,006.6
|
|
|
$
|
(4.5
|
)
|
|
$
|
3,875.2
|
|
|
$
|
224.2
|
|
|
$
|
4,099.4
|
|
|
|
Six Months Ended June 30,
|
||||||
(Millions)
|
|
2017
|
|
2016
|
||||
Cash flows from operations:
|
|
|
|
|
||||
Net income
|
|
$
|
36.4
|
|
|
$
|
381.8
|
|
Charges (credits) to reconcile net income to net cash used for operations:
|
|
|
|
|
|
|
||
Net realized and unrealized investment gains
|
|
(70.0
|
)
|
|
(16.3
|
)
|
||
Deferred income benefit
|
|
(4.8
|
)
|
|
(6.4
|
)
|
||
Net income from discontinued operations
|
|
(35.7
|
)
|
|
(64.4
|
)
|
||
Net loss (gain) from sale of discontinued operations, net of tax
|
|
1.6
|
|
|
(366.6
|
)
|
||
Amortization and depreciation
|
|
19.2
|
|
|
8.8
|
|
||
Other operating items:
|
|
|
|
|
|
|||
Net change in unearned insurance premiums
|
|
27.6
|
|
|
12.8
|
|
||
Net change in deferred acquisition costs
|
|
(2.4
|
)
|
|
(1.8
|
)
|
||
Net change in restricted cash
|
|
—
|
|
|
5.8
|
|
||
Net change in other assets and liabilities, net
|
|
(38.1
|
)
|
|
(74.6
|
)
|
||
Net cash used for operations - continuing operations
|
|
(66.2
|
)
|
|
(120.9
|
)
|
||
Net cash provided from (used for) operations - discontinued operations
|
|
87.3
|
|
|
(61.2
|
)
|
||
Net cash provided from (used for) operations
|
|
21.1
|
|
|
(182.1
|
)
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
||
Net change in short-term investments
|
|
102.8
|
|
|
(162.3
|
)
|
||
Sales of fixed maturity and convertible investments
|
|
1,199.7
|
|
|
1,253.0
|
|
||
Maturities, calls and paydowns of fixed maturity and convertible investments
|
|
113.8
|
|
|
87.0
|
|
||
Sales of common equity securities
|
|
183.9
|
|
|
676.9
|
|
||
Distributions, settlements and redemptions of other long-term investments
|
|
1.9
|
|
|
3.0
|
|
||
Sales of unconsolidated affiliates and consolidated subsidiaries, net of cash sold
|
|
—
|
|
|
2,248.5
|
|
||
Net settlement of investment cash flows and contributions with discontinued operations
|
|
—
|
|
|
(409.7
|
)
|
||
Purchases of other long-term investments
|
|
(55.1
|
)
|
|
(12.9
|
)
|
||
Purchases of common equity securities
|
|
(681.9
|
)
|
|
(31.9
|
)
|
||
Purchases of fixed maturity and convertible investments
|
|
(777.3
|
)
|
|
(3,017.6
|
)
|
||
Purchases of unconsolidated affiliates and consolidated subsidiaries, net of cash acquired
|
|
—
|
|
|
(8.1
|
)
|
||
Net change in unsettled investment purchases and sales
|
|
(80.1
|
)
|
|
47.8
|
|
||
Net acquisitions of property and equipment
|
|
(.1
|
)
|
|
(1.6
|
)
|
||
Net cash provided from investing activities - continuing operations
|
|
7.6
|
|
|
672.1
|
|
||
Net cash (used for) provided from investing activities - discontinued operations
|
|
(43.6
|
)
|
|
276.8
|
|
||
Net cash (used for) provided from investing activities
|
|
(36.0
|
)
|
|
948.9
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
||
Draw down of debt and revolving line of credit
|
|
11.0
|
|
|
102.5
|
|
||
Repayment of debt and revolving line of credit
|
|
(13.3
|
)
|
|
(150.5
|
)
|
||
Proceeds from issuances of common shares
|
|
—
|
|
|
3.7
|
|
||
Cash dividends paid to the Company’s common shareholders
|
|
(4.6
|
)
|
|
(5.4
|
)
|
||
Common shares repurchased
|
|
—
|
|
|
(541.5
|
)
|
||
Distribution to non-controlling interest shareholders
|
|
(.5
|
)
|
|
(.7
|
)
|
||
Contributions from discontinued operations
|
|
30.1
|
|
|
27.1
|
|
||
Payments of contingent consideration related to purchases of consolidated subsidiaries
|
|
—
|
|
|
(7.8
|
)
|
||
Capital contributions from BAM members
|
|
17.3
|
|
|
16.7
|
|
||
Other financing activities, net
|
|
(9.2
|
)
|
|
(5.8
|
)
|
||
Net cash provided from (used for) financing activities - continuing operations
|
|
30.8
|
|
|
(561.7
|
)
|
||
Net cash used for financing activities - discontinued operations
|
|
(42.0
|
)
|
|
(43.1
|
)
|
||
Net cash used for financing activities
|
|
(11.2
|
)
|
|
(604.8
|
)
|
||
Net change in cash during the period - continuing operations
|
|
(27.8
|
)
|
|
(10.5
|
)
|
||
Cash balances at beginning of period (excludes restricted cash balances of $0.0 and $5.8 and discontinued operations cash balances of $70.5 and $245.4)
|
|
80.2
|
|
|
72.0
|
|
||
Add: cash held for sale, excluding discontinued operations, at the beginning of period
|
|
.9
|
|
|
1.2
|
|
||
Less: cash held for sale, excluding discontinued operations, at the end of period
|
|
—
|
|
|
.6
|
|
||
Cash balances at end of period (excludes restricted cash balances of $0.0 and $0.0 and discontinued operations cash balances of $71.3 and $74.2)
|
|
$
|
53.3
|
|
|
$
|
62.1
|
|
Supplemental cash flows information:
|
|
|
|
|
|
|
||
Interest paid
|
|
$
|
(.4
|
)
|
|
$
|
(.5
|
)
|
Net income tax refund from national governments
|
|
$
|
—
|
|
|
$
|
—
|
|
Gain from sale of Tranzact reported in discontinued operations
|
|
$
|
51.9
|
|
Add back reclassification from continuing operations for the release of a tax valuation allowance
|
|
30.2
|
|
|
Increase to White Mountains’s book value from sale of Tranzact
|
|
$
|
82.1
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
Millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Investment income:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity investments
|
|
$
|
11.2
|
|
|
$
|
5.7
|
|
|
$
|
23.1
|
|
|
$
|
8.1
|
|
Short-term investments
|
|
.2
|
|
|
.5
|
|
|
.3
|
|
|
.6
|
|
||||
Common equity securities
|
|
3.7
|
|
|
.3
|
|
|
5.0
|
|
|
.5
|
|
||||
Other long-term investments
|
|
.4
|
|
|
.1
|
|
|
.4
|
|
|
.4
|
|
||||
Total investment income
|
|
15.5
|
|
|
6.6
|
|
|
28.8
|
|
|
9.6
|
|
||||
Third-party investment expenses
|
|
(.8
|
)
|
|
(.5
|
)
|
|
(1.3
|
)
|
|
(1.0
|
)
|
||||
Net investment income, pre-tax
|
|
$
|
14.7
|
|
|
$
|
6.1
|
|
|
$
|
27.5
|
|
|
$
|
8.6
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
Millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net realized investment gains, pre-tax
|
|
$
|
13.4
|
|
|
$
|
1.6
|
|
|
$
|
14.0
|
|
|
$
|
264.3
|
|
Net unrealized investment gains (losses), pre-tax
|
|
20.3
|
|
|
1.8
|
|
|
56.0
|
|
|
(248.0
|
)
|
||||
Net realized and unrealized investment gains, pre-tax
|
|
33.7
|
|
|
3.4
|
|
|
70.0
|
|
|
16.3
|
|
||||
Income tax expense attributable to net realized and
unrealized investment gains
|
|
(1.7
|
)
|
|
(1.4
|
)
|
|
(5.5
|
)
|
|
(3.9
|
)
|
||||
Net realized and unrealized investment gains, after tax
|
|
$
|
32.0
|
|
|
$
|
2.0
|
|
|
$
|
64.5
|
|
|
$
|
12.4
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||
Millions
|
|
Net
realized gains |
|
Net
foreign currency gains (losses) |
|
Total net realized
gains (losses) reflected in earnings |
|
Net
realized gains |
|
Net
foreign currency gains (losses) |
|
Total net realized
gains reflected in earnings |
||||||||||||
Fixed maturity investments
|
|
$
|
.1
|
|
|
$
|
1.3
|
|
|
$
|
1.4
|
|
|
$
|
1.4
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
Short-term investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
.1
|
|
||||||
Common equity securities
|
|
12.8
|
|
|
.5
|
|
|
13.3
|
|
|
.1
|
|
|
—
|
|
|
.1
|
|
||||||
Other long-term investments
|
|
.4
|
|
|
(1.7
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net realized investment gains, pre-tax
|
|
13.3
|
|
|
.1
|
|
|
13.4
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
||||||
Income tax expense attributable to
net realized investment gains
|
|
(2.7
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
(.1
|
)
|
|
—
|
|
|
(.1
|
)
|
||||||
Net realized investment
gains, after tax
|
|
$
|
10.6
|
|
|
$
|
.1
|
|
|
$
|
10.7
|
|
|
$
|
1.5
|
|
|
$
|
—
|
|
|
$
|
1.5
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||
Millions
|
|
Net
realized (losses) gains |
|
Net
foreign currency gains (losses) |
|
Total net realized
gains (losses) reflected in earnings |
|
Net
realized gains |
|
Net
foreign currency gains (losses) |
|
Total net realized
gains reflected in earnings |
||||||||||||
Fixed maturity investments
|
|
$
|
(1.0
|
)
|
|
$
|
1.4
|
|
|
$
|
.4
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
|
$
|
1.7
|
|
Short-term investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
.2
|
|
||||||
Common equity securities
|
|
13.6
|
|
|
.6
|
|
|
14.2
|
|
|
262.4
|
|
|
—
|
|
|
262.4
|
|
||||||
Other long-term investments
|
|
1.1
|
|
|
(1.7
|
)
|
|
(.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net realized investment gains, pre-tax
|
|
13.7
|
|
|
.3
|
|
|
14.0
|
|
|
264.3
|
|
|
—
|
|
|
264.3
|
|
||||||
Income tax expense attributable to
net realized investment gains
|
|
(2.9
|
)
|
|
—
|
|
|
(2.9
|
)
|
|
(44.9
|
)
|
|
—
|
|
|
(44.9
|
)
|
||||||
Net realized investment
gains, after tax
|
|
$
|
10.8
|
|
|
$
|
.3
|
|
|
$
|
11.1
|
|
|
$
|
219.4
|
|
|
$
|
—
|
|
|
$
|
219.4
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||
Millions
|
|
Net
unrealized
gains
|
|
Net
foreign currency
gains (losses)
|
|
Total net unrealized gains (losses)
reflected in
earnings
|
|
Net
unrealized gains (losses)
|
|
Net
foreign currency losses |
|
Total net unrealized
gains (losses)
reflected in
earnings
|
||||||||||||
Fixed maturity investments
|
|
$
|
7.3
|
|
|
$
|
5.8
|
|
|
$
|
13.1
|
|
|
$
|
8.6
|
|
|
$
|
—
|
|
|
$
|
8.6
|
|
Common equity securities
|
|
7.8
|
|
|
2.6
|
|
|
10.4
|
|
|
(5.1
|
)
|
|
—
|
|
|
(5.1
|
)
|
||||||
Other long-term investments
|
|
4.7
|
|
|
(7.9
|
)
|
|
(3.2
|
)
|
|
(1.5
|
)
|
|
(.2
|
)
|
|
(1.7
|
)
|
||||||
Net unrealized investment gains (losses), pre-tax
|
|
19.8
|
|
|
.5
|
|
|
20.3
|
|
|
2.0
|
|
|
(.2
|
)
|
|
1.8
|
|
||||||
Income tax benefit (expense)
attributable to net unrealized
investment gains (losses)
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
(1.3
|
)
|
|
—
|
|
|
(1.3
|
)
|
||||||
Net unrealized investment
gains (losses), after tax
|
|
$
|
20.8
|
|
|
$
|
.5
|
|
|
$
|
21.3
|
|
|
$
|
.7
|
|
|
$
|
(.2
|
)
|
|
$
|
.5
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||
Millions
|
|
Net
unrealized
gains
|
|
Net
foreign currency
gains (losses)
|
|
Total net unrealized gains (losses)
reflected in
earnings
|
|
Net
unrealized gains (losses)
|
|
Net
foreign currency gains |
|
Total net unrealized
gains (losses)
reflected in
earnings
|
||||||||||||
Fixed maturity investments
|
|
$
|
17.5
|
|
|
$
|
7.4
|
|
|
$
|
24.9
|
|
|
$
|
15.3
|
|
|
$
|
—
|
|
|
$
|
15.3
|
|
Common equity securities
|
|
26.9
|
|
|
3.1
|
|
|
30.0
|
|
|
(264.6
|
)
|
|
2.4
|
|
|
(262.2
|
)
|
||||||
Other long-term investments
|
|
11.7
|
|
|
(10.6
|
)
|
|
1.1
|
|
|
(1.3
|
)
|
|
.2
|
|
|
(1.1
|
)
|
||||||
Net unrealized investment gains (losses), pre-tax
|
|
56.1
|
|
|
(.1
|
)
|
|
56.0
|
|
|
(250.6
|
)
|
|
2.6
|
|
|
(248.0
|
)
|
||||||
Income tax (expense) benefit
attributable to net unrealized
investment gains (losses)
|
|
(2.6
|
)
|
|
—
|
|
|
(2.6
|
)
|
|
41.0
|
|
|
—
|
|
|
41.0
|
|
||||||
Net unrealized investment
gains (losses), after tax
|
|
$
|
53.5
|
|
|
$
|
(.1
|
)
|
|
$
|
53.4
|
|
|
$
|
(209.6
|
)
|
|
$
|
2.6
|
|
|
$
|
(207.0
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
Millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Fixed maturity investments
|
|
$
|
—
|
|
|
$
|
.1
|
|
|
$
|
—
|
|
|
$
|
.1
|
|
Other long-term investments
|
|
(1.7
|
)
|
|
.9
|
|
|
(1.5
|
)
|
|
1.6
|
|
||||
Total unrealized investment (losses) gains, pre-tax - Level 3 investments
|
|
$
|
(1.7
|
)
|
|
$
|
1.0
|
|
|
$
|
(1.5
|
)
|
|
$
|
1.7
|
|
|
|
June 30, 2017
|
||||||||||||||||||
Millions
|
|
Cost or
amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Net foreign
currency
gains
|
|
Carrying
value
|
||||||||||
U.S. Government and agency obligations
|
|
$
|
59.5
|
|
|
$
|
—
|
|
|
$
|
(.3
|
)
|
|
$
|
—
|
|
|
$
|
59.2
|
|
Debt securities issued by corporations
|
|
705.4
|
|
|
4.9
|
|
|
(1.8
|
)
|
|
9.5
|
|
|
718.0
|
|
|||||
Mortgage and asset-backed securities
|
|
514.7
|
|
|
1.2
|
|
|
(4.5
|
)
|
|
—
|
|
|
511.4
|
|
|||||
Municipal obligations
|
|
272.6
|
|
|
2.6
|
|
|
(.8
|
)
|
|
—
|
|
|
274.4
|
|
|||||
Foreign government, agency and provincial obligations
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|||||
Total fixed maturity investments
|
|
$
|
1,556.1
|
|
|
$
|
8.7
|
|
|
$
|
(7.4
|
)
|
|
$
|
9.5
|
|
|
$
|
1,566.9
|
|
|
|
December 31, 2016
|
||||||||||||||||||
Millions
|
|
Cost or
amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Net foreign
currency
gains
|
|
Carrying
value
|
||||||||||
U.S. Government and agency obligations
|
|
$
|
112.1
|
|
|
$
|
—
|
|
|
$
|
(1.1
|
)
|
|
$
|
—
|
|
|
$
|
111.0
|
|
Debt securities issued by corporations
|
|
752.0
|
|
|
2.3
|
|
|
(10.1
|
)
|
|
2.1
|
|
|
746.3
|
|
|||||
Mortgage and asset-backed securities
|
|
986.9
|
|
|
.8
|
|
|
(7.9
|
)
|
|
—
|
|
|
979.8
|
|
|||||
Municipal obligations
|
|
238.7
|
|
|
1.1
|
|
|
(1.3
|
)
|
|
—
|
|
|
238.5
|
|
|||||
Foreign government, agency and provincial obligations
|
|
12.0
|
|
|
.1
|
|
|
—
|
|
|
—
|
|
|
12.1
|
|
|||||
Total fixed maturity investments
|
|
$
|
2,101.7
|
|
|
$
|
4.3
|
|
|
$
|
(20.4
|
)
|
|
$
|
2.1
|
|
|
$
|
2,087.7
|
|
Less: fixed maturity investments reclassified to assets
held for sale related to SSIE
|
|
|
|
|
|
|
|
|
|
(6.6
|
)
|
|||||||||
Total fixed maturity investments
|
|
|
|
|
|
|
|
|
|
$
|
2,081.1
|
|
|
|
June 30, 2017
|
||||||||||||||||||
Millions
|
|
Cost or
amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Net foreign
currency gains (losses) |
|
Carrying
value
|
||||||||||
Common equity securities
|
|
$
|
770.8
|
|
|
$
|
57.2
|
|
|
$
|
(3.2
|
)
|
|
$
|
3.1
|
|
|
$
|
827.9
|
|
Other long-term investments
|
|
$
|
246.6
|
|
|
$
|
10.6
|
|
|
$
|
(16.3
|
)
|
|
$
|
(14.4
|
)
|
|
$
|
226.5
|
|
|
|
December 31, 2016
|
||||||||||||||||||
Millions
|
|
Cost or
amortized cost |
|
Gross
unrealized gains |
|
Gross
unrealized losses |
|
Net foreign
currency (losses) |
|
Carrying
value
|
||||||||||
Common equity securities
|
|
$
|
258.6
|
|
|
$
|
29.0
|
|
|
$
|
(2.0
|
)
|
|
$
|
—
|
|
|
$
|
285.6
|
|
Other long-term investments
|
|
$
|
194.0
|
|
|
$
|
7.9
|
|
|
$
|
(25.2
|
)
|
|
$
|
(3.9
|
)
|
|
$
|
172.8
|
|
|
|
Carrying Value at
|
||||||
Millions
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Hedge funds and private equity funds, at fair value
|
|
$
|
148.5
|
|
|
$
|
82.6
|
|
Private equity securities and limited liability companies, at fair value
(1)(2)
|
|
58.5
|
|
|
57.6
|
|
||
Private convertible preferred securities, at fair value
(1)
|
|
28.3
|
|
|
30.6
|
|
||
Forward Contracts
|
|
(12.5
|
)
|
|
(1.2
|
)
|
||
Other
|
|
3.7
|
|
|
3.2
|
|
||
Total other-long term investments
|
|
$
|
226.5
|
|
|
$
|
172.8
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
Millions
|
|
Fair Value
|
|
Unfunded
Commitments
|
|
Fair Value
|
|
Unfunded
Commitments
|
||||||||
Hedge funds
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Long/short banks and financials
|
|
$
|
53.8
|
|
|
$
|
—
|
|
|
$
|
21.5
|
|
|
$
|
—
|
|
Long/short equity REIT
|
|
18.3
|
|
|
—
|
|
|
19.9
|
|
|
—
|
|
||||
Total hedge funds
|
|
72.1
|
|
|
—
|
|
|
41.4
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Private equity funds
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Manufacturing/Industrial
|
|
45.2
|
|
|
13.1
|
|
|
19.4
|
|
|
22.9
|
|
||||
Aerospace/Defense/Government
|
|
24.6
|
|
|
23.6
|
|
|
19.4
|
|
|
25.9
|
|
||||
Direct lending
|
|
5.1
|
|
|
25.0
|
|
|
1.4
|
|
|
28.6
|
|
||||
Financial Services
|
|
1.5
|
|
|
4.5
|
|
|
1.0
|
|
|
5.0
|
|
||||
Insurance
|
|
—
|
|
|
41.2
|
|
|
—
|
|
|
41.2
|
|
||||
Total private equity funds
|
|
76.4
|
|
|
107.4
|
|
|
41.2
|
|
|
123.6
|
|
||||
Total hedge funds and private equity funds
included in other long-term investments
|
|
$
|
148.5
|
|
|
$
|
107.4
|
|
|
$
|
82.6
|
|
|
$
|
123.6
|
|
|
|
Notice Period
|
||||||||||
Millions
Redemption frequency
|
|
30-59 days
notice
|
|
60-89 days
notice
|
|
Total
|
||||||
Monthly
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Quarterly
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Semi-annual
|
|
53.8
|
|
|
18.3
|
|
|
72.1
|
|
|||
Annual
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
53.8
|
|
|
$
|
18.3
|
|
|
$
|
72.1
|
|
Millions
|
|
1-3 years
|
|
3 – 5 years
|
|
5 – 10 years
|
|
>10 years
|
|
Total
|
Private Equity Funds — expected lock-up period remaining
|
|
$3.6
|
|
$20.9
|
|
$29.7
|
|
$22.2
|
|
$76.4
|
|
|
June 30, 2017
|
||||||||||||||
Millions
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Fixed maturity investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government and agency obligations
|
|
$
|
59.2
|
|
|
$
|
49.7
|
|
|
$
|
9.5
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt securities issued by corporations:
|
|
|
|
|
|
|
|
|
|
|||||||
Utilities
|
|
155.1
|
|
|
—
|
|
|
155.1
|
|
|
—
|
|
||||
Consumer
|
|
140.5
|
|
|
—
|
|
|
140.5
|
|
|
—
|
|
||||
Health Care
|
|
106.0
|
|
|
—
|
|
|
106.0
|
|
|
—
|
|
||||
Communications
|
|
84.2
|
|
|
—
|
|
|
84.2
|
|
|
—
|
|
||||
Materials
|
|
79.7
|
|
|
—
|
|
|
79.7
|
|
|
—
|
|
||||
Financials
|
|
61.6
|
|
|
—
|
|
|
61.6
|
|
|
—
|
|
||||
Technology
|
|
51.2
|
|
|
—
|
|
|
51.2
|
|
|
—
|
|
||||
Industrial
|
|
34.6
|
|
|
—
|
|
|
30.2
|
|
|
4.4
|
|
||||
Energy
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
||||
Total debt securities issued by corporations
|
|
718.0
|
|
|
—
|
|
|
713.6
|
|
|
4.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Mortgage and asset-backed securities
|
|
511.4
|
|
|
—
|
|
|
501.7
|
|
|
9.7
|
|
||||
Municipal obligations
|
|
274.4
|
|
|
—
|
|
|
274.4
|
|
|
—
|
|
||||
Foreign government, agency and provincial obligations
|
|
3.9
|
|
|
—
|
|
|
3.9
|
|
|
—
|
|
||||
Total fixed maturity investments
|
|
1,566.9
|
|
|
49.7
|
|
|
1,503.1
|
|
|
14.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Short-term investments
(1)
|
|
71.6
|
|
|
55.7
|
|
|
15.9
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Common equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exchange traded funds
(2)
|
|
598.5
|
|
|
542.9
|
|
|
55.6
|
|
|
—
|
|
||||
Consumer
|
|
32.7
|
|
|
32.7
|
|
|
—
|
|
|
—
|
|
||||
Health Care
|
|
27.8
|
|
|
27.8
|
|
|
—
|
|
|
—
|
|
||||
Industrial
|
|
18.9
|
|
|
18.9
|
|
|
—
|
|
|
—
|
|
||||
Financials
|
|
18.6
|
|
|
18.6
|
|
|
—
|
|
|
—
|
|
||||
Technology
|
|
14.7
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
||||
Communications
|
|
13.0
|
|
|
13.0
|
|
|
—
|
|
|
—
|
|
||||
Energy
|
|
7.6
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
||||
Materials
|
|
4.0
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
||||
Utilities
|
|
1.1
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
91.0
|
|
|
—
|
|
|
91.0
|
|
|
—
|
|
||||
Total common equity securities
|
|
827.9
|
|
|
681.3
|
|
|
146.6
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other long-term investments
(3)(4)
|
|
90.5
|
|
|
—
|
|
|
—
|
|
|
90.5
|
|
||||
Total investments
|
|
$
|
2,556.9
|
|
|
$
|
786.7
|
|
|
$
|
1,665.6
|
|
|
$
|
104.6
|
|
|
|
December 31, 2016
|
||||||||||||||
Millions
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Fixed maturity investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government and agency obligations
|
|
$
|
111.0
|
|
|
$
|
101.5
|
|
|
$
|
9.5
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt securities issued by corporations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consumer
|
|
190.8
|
|
|
—
|
|
|
190.8
|
|
|
—
|
|
||||
Utilities
|
|
140.8
|
|
|
—
|
|
|
140.8
|
|
|
—
|
|
||||
Health Care
|
|
114.9
|
|
|
—
|
|
|
114.9
|
|
|
—
|
|
||||
Financials
|
|
79.7
|
|
|
—
|
|
|
79.7
|
|
|
—
|
|
||||
Communications
|
|
72.0
|
|
|
—
|
|
|
72.0
|
|
|
—
|
|
||||
Materials
|
|
65.0
|
|
|
—
|
|
|
65.0
|
|
|
—
|
|
||||
Technology
|
|
48.8
|
|
|
—
|
|
|
48.8
|
|
|
—
|
|
||||
Industrial
|
|
28.2
|
|
|
—
|
|
|
28.2
|
|
|
—
|
|
||||
Energy
|
|
6.1
|
|
|
—
|
|
|
6.1
|
|
|
—
|
|
||||
Total debt securities issued by corporations
|
|
746.3
|
|
|
—
|
|
|
746.3
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Mortgage and asset-backed securities
|
|
979.8
|
|
|
—
|
|
|
979.8
|
|
|
—
|
|
||||
Municipal obligations
|
|
238.5
|
|
|
—
|
|
|
238.5
|
|
|
—
|
|
||||
Foreign government, agency and provincial obligations
|
|
12.1
|
|
|
—
|
|
|
12.1
|
|
|
—
|
|
||||
Total fixed maturity investments
(1)
|
|
2,087.7
|
|
|
101.5
|
|
|
1,986.2
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Short-term investments
(1)(2)
|
|
175.0
|
|
|
162.3
|
|
|
12.7
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Common equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exchange traded funds
(3)
|
|
157.2
|
|
|
129.4
|
|
|
27.8
|
|
|
—
|
|
||||
Health Care
|
|
13.9
|
|
|
13.9
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
|
8.6
|
|
|
8.6
|
|
|
—
|
|
|
—
|
|
||||
Financials
|
|
7.7
|
|
|
7.7
|
|
|
—
|
|
|
—
|
|
||||
Technology
|
|
7.3
|
|
|
7.3
|
|
|
—
|
|
|
—
|
|
||||
Communications
|
|
7.0
|
|
|
7.0
|
|
|
—
|
|
|
—
|
|
||||
Energy
|
|
2.5
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
||||
Industrial
|
|
1.5
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
79.9
|
|
|
—
|
|
|
79.9
|
|
|
—
|
|
||||
Total common equity securities
|
|
285.6
|
|
|
177.9
|
|
|
107.7
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other long-term investments
(4)(5)
|
|
91.4
|
|
|
—
|
|
|
—
|
|
|
91.4
|
|
||||
Total investments
(1)
|
|
$
|
2,639.7
|
|
|
$
|
441.7
|
|
|
$
|
2,106.6
|
|
|
$
|
91.4
|
|
|
|
Fair Value at
|
||||||
Millions
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
AA
|
|
$
|
19.0
|
|
|
$
|
37.3
|
|
A
|
|
170.8
|
|
|
212.8
|
|
||
BBB
|
|
300.6
|
|
|
335.6
|
|
||
BB
|
|
210.1
|
|
|
143.2
|
|
||
B
|
|
17.5
|
|
|
17.4
|
|
||
Debt securities issued by corporations
(1)
|
|
$
|
718.0
|
|
|
$
|
746.3
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
Millions
|
|
Fair Value
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
|
Level 2
|
|
Level 3
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agency:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
GNMA
|
|
$
|
71.1
|
|
|
$
|
71.1
|
|
|
$
|
—
|
|
|
$
|
70.3
|
|
|
$
|
70.3
|
|
|
$
|
—
|
|
FNMA
|
|
161.1
|
|
|
161.1
|
|
|
—
|
|
|
235.5
|
|
|
235.5
|
|
|
—
|
|
||||||
FHLMC
|
|
74.5
|
|
|
74.5
|
|
|
—
|
|
|
59.5
|
|
|
59.5
|
|
|
—
|
|
||||||
Total Agency
(1)
|
|
306.7
|
|
|
306.7
|
|
|
—
|
|
|
365.3
|
|
|
365.3
|
|
|
—
|
|
||||||
Non-agency:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential
|
|
92.6
|
|
|
84.9
|
|
|
7.7
|
|
|
70.3
|
|
|
70.3
|
|
|
—
|
|
||||||
Commercial
|
|
10.4
|
|
|
8.4
|
|
|
2.0
|
|
|
3.9
|
|
|
3.9
|
|
|
—
|
|
||||||
Total Non-agency
|
|
103.0
|
|
|
93.3
|
|
|
9.7
|
|
|
74.2
|
|
|
74.2
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total mortgage-backed securities
|
|
409.7
|
|
|
400.0
|
|
|
9.7
|
|
|
439.5
|
|
|
439.5
|
|
|
—
|
|
||||||
Other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit card receivables
|
|
41.8
|
|
|
41.8
|
|
|
—
|
|
|
214.2
|
|
|
214.2
|
|
|
—
|
|
||||||
Vehicle receivables
|
|
35.4
|
|
|
35.4
|
|
|
—
|
|
|
205.9
|
|
|
205.9
|
|
|
—
|
|
||||||
Other
|
|
24.5
|
|
|
24.5
|
|
|
—
|
|
|
120.2
|
|
|
120.2
|
|
|
—
|
|
||||||
Total other asset-backed securities
|
|
101.7
|
|
|
101.7
|
|
|
—
|
|
|
540.3
|
|
|
540.3
|
|
|
—
|
|
||||||
Total mortgage and asset-backed securities
|
|
$
|
511.4
|
|
|
$
|
501.7
|
|
|
$
|
9.7
|
|
|
$
|
979.8
|
|
|
$
|
979.8
|
|
|
$
|
—
|
|
|
|
|
|
|
|
Security Issuance Year
|
|
|
|
|
|
|
|||||||||||||||||
Millions
|
|
Fair Value
|
|
2004
|
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
||||||||||||||
Non-agency
RMBS
|
|
$
|
92.6
|
|
|
$
|
.3
|
|
|
|
$
|
1.3
|
|
|
$
|
21.4
|
|
|
$
|
51.3
|
|
|
$
|
2.3
|
|
|
$
|
16.0
|
|
Non-agency
CMBS
|
|
10.4
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
|
6.6
|
|
|||||||
Total
|
|
$
|
103.0
|
|
|
$
|
.3
|
|
|
|
$
|
1.3
|
|
|
$
|
21.4
|
|
|
$
|
51.3
|
|
|
$
|
6.1
|
|
|
$
|
22.6
|
|
Millions
|
|
Fair Value
|
|
Super Senior
(1)
|
|
Senior
(2)
|
|
Subordinate
(3)
|
||||||||
Prime
|
|
$
|
92.6
|
|
|
$
|
69.7
|
|
|
$
|
22.9
|
|
|
$
|
—
|
|
Non-prime
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Sub-prime
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
92.6
|
|
|
$
|
69.7
|
|
|
$
|
22.9
|
|
|
$
|
—
|
|
Millions
|
|
Fair Value
|
|
Super Senior
(1)
|
|
Senior
(2)
|
|
Subordinate
(3)
|
||||||||
Fixed rate CMBS
|
|
$
|
7.8
|
|
|
$
|
—
|
|
|
$
|
6.2
|
|
|
$
|
1.6
|
|
Floating rate CMBS
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
||||
Total
|
|
$
|
10.4
|
|
|
$
|
—
|
|
|
$
|
6.2
|
|
|
$
|
4.2
|
|
|
|
|
Level 3 Investments
|
|
||||||||||||||||
Millions
|
Level 1 investments
|
Level 2
investments
|
Fixed
maturity investments
|
Other long-term
investments
|
Hedge Funds and Private Equity Funds measured at NAV
(3)
|
|
Total
|
|
||||||||||||
Balance at January 1, 2017
|
$
|
279.5
|
|
$
|
2,093.8
|
|
$
|
—
|
|
$
|
91.4
|
|
$
|
82.6
|
|
|
$
|
2,547.3
|
|
(1)(2)(4)
|
Net realized and unrealized gains (losses)
|
30.4
|
|
39.0
|
|
.1
|
|
(1.5
|
)
|
15.0
|
|
|
83.0
|
|
|
||||||
Amortization/Accretion
|
—
|
|
(4.7
|
)
|
—
|
|
—
|
|
—
|
|
|
(4.7
|
)
|
|
||||||
Purchases
|
665.0
|
|
770.7
|
|
25.6
|
|
2.6
|
|
52.5
|
|
|
1,516.4
|
|
|
||||||
Sales
|
(243.9
|
)
|
(1,255.0
|
)
|
(.5
|
)
|
(2.0
|
)
|
(1.6
|
)
|
|
(1,503.0
|
)
|
|
||||||
Deconsolidation of SSIE
|
—
|
|
(5.2
|
)
|
—
|
|
—
|
|
—
|
|
|
(5.2
|
)
|
|
||||||
Transfers in
|
—
|
|
11.1
|
|
—
|
|
—
|
|
—
|
|
|
11.1
|
|
|
||||||
Transfers out
|
—
|
|
—
|
|
(11.1
|
)
|
—
|
|
—
|
|
|
(11.1
|
)
|
|
||||||
Balance at June 30, 2017
|
$
|
731.0
|
|
$
|
1,649.7
|
|
$
|
14.1
|
|
$
|
90.5
|
|
$
|
148.5
|
|
|
$
|
2,633.8
|
|
(1)(2)
|
|
|
|
Level 3 Investments
|
|
|
|
|||||||||||||
Millions
|
Level 1 investments
|
Level 2
investments
|
Fixed
maturity investments
|
Other long-term
investments
|
Hedge Funds and Private Equity Funds measured at NAV
(2)
|
Total
|
|
||||||||||||
Balance at January 1, 2016
|
$
|
789.0
|
|
$
|
585.6
|
|
$
|
—
|
|
$
|
103.6
|
|
$
|
65.3
|
|
$
|
1,543.5
|
|
(1)(3)
|
Net realized and unrealized gains (losses)
|
3.6
|
|
13.7
|
|
.1
|
|
1.6
|
|
(2.7
|
)
|
16.3
|
|
|
||||||
Amortization/Accretion
|
.1
|
|
(2.1
|
)
|
—
|
|
—
|
|
—
|
|
(2.0
|
)
|
|
||||||
Purchases
|
1,312.9
|
|
1,668.7
|
|
67.9
|
|
2.0
|
|
15.2
|
|
3,066.7
|
|
|
||||||
Sales
|
(1,809.9
|
)
|
(207.0
|
)
|
—
|
|
—
|
|
(3.0
|
)
|
(2,019.9
|
)
|
|
||||||
Transfers in
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
||||||
Transfers out
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
||||||
Balance at June 30, 2016
|
$
|
295.7
|
|
$
|
2,058.9
|
|
$
|
68.0
|
|
$
|
107.2
|
|
$
|
74.8
|
|
$
|
2,604.6
|
|
(1)(3)
|
|
||||||||||
Description
|
|
June 30, 2017
|
||||||||
$ in millions, except share price
|
|
Rating
(2)
|
|
Valuation Technique(s)
|
|
Fair
Value (1) |
|
Unobservable Input
|
||
Non-agency commercial mortgage-
backed securities
|
|
A-
|
|
Broker pricing
|
|
$2.0
|
|
Broker quote
|
|
100.03
|
Non-agency residential mortgage-
backed securities
|
|
AAA
|
|
Broker pricing
|
|
$7.7
|
|
Broker quote
|
|
102.03
|
Debt securities issued
by corporations
|
|
BBB
|
|
Broker pricing
|
|
$4.4
|
|
Broker quote
|
|
127.46
|
Private equity security
|
|
NR
|
|
Share price of most recent transaction
|
|
$21.0
|
|
Share price
|
-
|
$1.00
|
Private equity security
|
|
NR
|
|
Discounted cash flow
|
|
$22.1
|
|
Discount rate
|
-
|
25.0%
|
Private equity security
|
|
NR
|
|
Share price of most recent transaction
|
|
$3.4
|
|
Share price
|
-
|
$2.52
|
Private convertible preferred security
|
|
NR
|
|
Multiple of EBITDA
|
|
$1.3
|
|
EBITDA multiple
|
-
|
6.00
|
Private convertible preferred security
|
|
NR
|
|
Share price of most recent transaction
|
|
$27.0
|
|
Share price
|
-
|
$3.83
|
Private equity security
|
|
NR
|
|
Discounted cash flow/
Option pricing method
|
|
$10.0
|
|
Discount rate
|
-
|
21.0%
|
|
|
|
|
|
|
|
|
Time until expiration
|
-
|
4 years
|
|
|
|
|
|
|
Volatility/Standard deviation
|
-
|
50.0%
|
||
|
|
|
|
|
|
Risk free rate
|
-
|
1.00%
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
Millions
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
|
Goodwill
|
|
Other intangible assets
|
|
Total
|
|
Goodwill
|
|
Other intangible assets
|
|
Total
|
||||||||||||
Beginning balance
|
|
$
|
31.7
|
|
|
$
|
20.4
|
|
|
$
|
52.1
|
|
|
$
|
24.1
|
|
|
$
|
30.1
|
|
|
$
|
54.2
|
|
Add: Amounts held for sale at
beginning of the period
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.3
|
|
|
.3
|
|
||||||
Amortization, including foreign
currency translation
|
|
—
|
|
|
(2.6
|
)
|
|
(2.6
|
)
|
|
—
|
|
|
(3.0
|
)
|
|
(3.0
|
)
|
||||||
Ending balance
|
|
$
|
31.7
|
|
|
$
|
17.8
|
|
|
$
|
49.5
|
|
|
$
|
24.1
|
|
|
$
|
27.4
|
|
|
$
|
51.5
|
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
Millions
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
|
Goodwill
|
|
Other intangible assets
|
|
Total
|
|
Goodwill
|
|
Other intangible assets
|
|
Total
|
||||||||||||
Beginning balance
|
|
$
|
31.7
|
|
|
$
|
23.0
|
|
|
$
|
54.7
|
|
|
$
|
24.1
|
|
|
$
|
28.9
|
|
|
$
|
53.0
|
|
Add: Amounts held for sale at
beginning of the period
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
.4
|
|
|
.4
|
|
||||||
Acquisitions of intangible assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
3.9
|
|
||||||
Amortization, including foreign
currency translation
|
|
—
|
|
|
(5.2
|
)
|
|
(5.2
|
)
|
|
—
|
|
|
(5.8
|
)
|
|
(5.8
|
)
|
||||||
Ending balance
|
|
$
|
31.7
|
|
|
$
|
17.8
|
|
|
$
|
49.5
|
|
|
$
|
24.1
|
|
|
$
|
27.4
|
|
|
$
|
51.5
|
|
Millions
|
|
June 30,
2017 |
|
Effective
Rate
(1)
|
|
December 31,
2016 |
|
Effective
Rate
(1)
|
||||
WTM Bank Facility
|
|
$
|
—
|
|
|
N/A
|
|
$
|
—
|
|
|
N/A
|
Unamortized issue costs
|
|
—
|
|
|
|
|
—
|
|
|
|
||
WTM Bank Facility, carrying value
|
|
—
|
|
|
|
|
—
|
|
|
|
||
MediaAlpha Bank Facility
|
|
10.6
|
|
|
5.4%
|
|
—
|
|
|
N/A
|
||
Unamortized issuance cost
|
|
—
|
|
|
|
|
—
|
|
|
|
||
MediaAlpha Bank Facility, carrying value
|
|
10.6
|
|
|
|
|
—
|
|
|
|
||
Previous MediaAlpha Bank Facility
|
|
—
|
|
|
N/A
|
|
12.9
|
|
|
5.7%
|
||
Unamortized issuance cost
|
|
—
|
|
|
|
|
(.2
|
)
|
|
|
||
Previous MediaAlpha Bank Facility, carrying value
|
|
—
|
|
|
|
|
12.7
|
|
|
|
||
Total debt
|
|
$
|
10.6
|
|
|
|
|
$
|
12.7
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
Millions
|
|
June 30, 2016
|
|
June 30, 2016
|
||||
Fees, included in other revenue
|
|
$
|
.3
|
|
|
$
|
1.2
|
|
Change in fair value of variable annuity liability, included in other revenue
|
|
.1
|
|
|
(.3
|
)
|
||
Change in fair value of derivatives, included in other revenue
|
|
(.3
|
)
|
|
(2.0
|
)
|
||
Foreign exchange, included in other revenue
|
|
.4
|
|
|
1.3
|
|
||
Total revenue
|
|
.5
|
|
|
.2
|
|
||
Death benefit claims paid, included in general and administrative expenses
|
|
(.2
|
)
|
|
(.3
|
)
|
||
General and administrative expenses
|
|
(1.2
|
)
|
|
(1.9
|
)
|
||
Pre-tax loss
|
|
$
|
(.9
|
)
|
|
$
|
(2.0
|
)
|
|
|
Gains (losses)
|
|
Carrying Value
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
As of
|
||||||
Millions
|
|
June 30, 2016
|
|
June 30, 2016
|
|
December 31, 2016
|
||||||
Fixed income/interest rate
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
$
|
—
|
|
Foreign exchange
|
|
(.6
|
)
|
|
(4.8
|
)
|
|
—
|
|
|||
Equity
|
|
.3
|
|
|
1.0
|
|
|
—
|
|
|||
Total
|
|
$
|
(.3
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
—
|
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||
|
|
Variable Annuity
Liabilities
|
|
Derivative Instruments
|
||||||||||||||||
Millions
|
|
Level 3
|
|
Level 3
(1)
|
|
Level 2
(1)(2)
|
|
Level 1
(3)
|
|
Total
|
||||||||||
Beginning of period
|
|
$
|
(.1
|
)
|
|
$
|
2.6
|
|
|
$
|
10.3
|
|
|
$
|
.2
|
|
|
$
|
13.1
|
|
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Realized and unrealized gains (losses)
|
|
.1
|
|
|
1.7
|
|
|
(1.8
|
)
|
|
(.2
|
)
|
|
(.3
|
)
|
|||||
Transfers in
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Sales/settlements
|
|
—
|
|
|
(4.3
|
)
|
|
(8.5
|
)
|
|
—
|
|
|
(12.8
|
)
|
|||||
End of period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||
|
|
Variable Annuity
Liabilities
|
|
Derivative Instruments
|
||||||||||||||||
Millions
|
|
Level 3
|
|
Level 3
(1)
|
|
Level 2
(1)(2)
|
|
Level 1
(3)
|
|
Total
|
||||||||||
Beginning of period
|
|
$
|
.3
|
|
|
$
|
2.7
|
|
|
$
|
16.5
|
|
|
$
|
.9
|
|
|
$
|
20.1
|
|
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Realized and unrealized (losses) gains
|
|
(.3
|
)
|
|
2.9
|
|
|
(.7
|
)
|
|
(4.2
|
)
|
|
(2.0
|
)
|
|||||
Transfers in
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Sales/settlements
|
|
—
|
|
|
(5.6
|
)
|
|
(15.8
|
)
|
|
3.3
|
|
|
(18.1
|
)
|
|||||
End of period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
June 30, 2017
|
||||||||
Millions
|
|
Notional Amount
(1)
|
|
Carrying Value
|
|
Standard & Poor's Rating
(2)
|
||||
Barclays Bank PLC
|
|
$
|
187.3
|
|
|
$
|
(8.2
|
)
|
|
A-
|
JP Morgan
|
|
114.7
|
|
|
(4.3
|
)
|
|
A+
|
||
Total
|
|
$
|
302.0
|
|
|
$
|
(12.5
|
)
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Contracts outstanding
|
|
5,564
|
|
|
4,807
|
|
||
Remaining weighted average contract period outstanding (in years)
|
|
10.9
|
|
|
10.8
|
|
||
Contractual debt service outstanding (in millions):
|
|
|
|
|
||||
Principal
|
|
$
|
37,619.7
|
|
|
$
|
33,057.3
|
|
Interest
|
|
19,012.8
|
|
|
16,396.6
|
|
||
Total debt service outstanding
|
|
$
|
56,632.5
|
|
|
$
|
49,453.9
|
|
|
|
|
|
|
||||
Gross unearned insurance premiums
|
|
$
|
109.9
|
|
|
$
|
82.9
|
|
Millions
|
|
June 30, 2017
|
||
July 1, 2017 - December 31, 2017
|
|
$
|
4.6
|
|
|
|
|
||
January 1, 2018 - March 31, 2018
|
|
2.3
|
|
|
April 1, 2018 - June 30, 2018
|
|
2.3
|
|
|
July 1, 2018 - September 30, 2018
|
|
2.2
|
|
|
October 1, 2018 - December 31, 2018
|
|
2.2
|
|
|
|
|
9.0
|
|
|
|
|
|
||
2019
|
|
8.6
|
|
|
2020
|
|
8.2
|
|
|
2021
|
|
7.8
|
|
|
2022 and thereafter
|
|
71.7
|
|
|
Total gross unearned insurance premiums
|
|
$
|
109.9
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Basic and diluted earnings per share numerators (in millions):
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations attributable to
White Mountains’s common shareholders
|
|
$
|
12.7
|
|
|
$
|
(42.5
|
)
|
|
$
|
15.7
|
|
|
$
|
(76.9
|
)
|
Allocation of income for unvested restricted common shares
|
|
(.2
|
)
|
|
.6
|
|
|
(.1
|
)
|
|
.9
|
|
||||
Dividends declared on participating restricted common shares
(1)
|
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
(.1
|
)
|
||||
Total allocation to restricted common shares
|
|
(.2
|
)
|
|
.6
|
|
|
(.2
|
)
|
|
.8
|
|
||||
Net income (loss) attributable to White Mountains’s common shareholders,
net of restricted common share amounts
|
|
$
|
12.5
|
|
|
$
|
(41.9
|
)
|
|
$
|
15.5
|
|
|
$
|
(76.1
|
)
|
Undistributed net earnings (in millions):
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to White Mountains’s common shareholders,
net of restricted common share amounts
|
|
$
|
12.5
|
|
|
$
|
(41.9
|
)
|
|
$
|
15.5
|
|
|
$
|
(76.1
|
)
|
Dividends declared net of restricted common share amounts
(1)
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|
(5.9
|
)
|
||||
Total undistributed net earnings (loss), net of restricted common share amounts
|
|
$
|
12.5
|
|
|
$
|
(41.9
|
)
|
|
$
|
11.0
|
|
|
$
|
(82.0
|
)
|
Basic earnings per share denominators (in thousands):
|
|
|
|
|
|
|
|
|
||||||||
Total average common shares outstanding during the period
|
|
4,572.1
|
|
|
5,096.1
|
|
|
4,568.4
|
|
|
5,317.8
|
|
||||
Average unvested restricted common shares
(2)
|
|
(57.2
|
)
|
|
(66.5
|
)
|
|
(54.9
|
)
|
|
(60.2
|
)
|
||||
Basic earnings per share denominator
|
|
4,514.9
|
|
|
5,029.6
|
|
|
4,513.5
|
|
|
5,257.6
|
|
||||
Diluted earnings per share denominator (in thousands):
|
|
|
|
|
|
|
|
|
||||||||
Total average common shares outstanding during the period
(3)
|
|
4,572.1
|
|
|
5,107.0
|
|
|
4,568.4
|
|
|
5,324.0
|
|
||||
Average unvested restricted common shares
(2)
|
|
(57.2
|
)
|
|
(66.5
|
)
|
|
(54.9
|
)
|
|
(60.2
|
)
|
||||
Diluted earnings per share denominator
(3)
|
|
4,514.9
|
|
|
5,040.5
|
|
|
4,513.5
|
|
|
5,263.8
|
|
||||
Basic earnings per share (in dollars):
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to White Mountains’s common shareholders
|
|
$
|
2.78
|
|
|
$
|
(8.34
|
)
|
|
$
|
3.42
|
|
|
$
|
(14.47
|
)
|
Dividends declared and paid
|
|
—
|
|
|
—
|
|
|
(1.00
|
)
|
|
(1.00
|
)
|
||||
Undistributed earnings (loss)
|
|
$
|
2.78
|
|
|
$
|
(8.34
|
)
|
|
$
|
2.42
|
|
|
$
|
(15.47
|
)
|
Diluted earnings per share (in dollars):
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to White Mountains’s common shareholders
|
|
$
|
2.78
|
|
|
$
|
(8.32
|
)
|
|
$
|
3.42
|
|
|
$
|
(14.46
|
)
|
Dividends declared and paid
|
|
—
|
|
|
—
|
|
|
(1.00
|
)
|
|
(1.00
|
)
|
||||
Undistributed earnings (loss)
|
|
$
|
2.78
|
|
|
$
|
(8.32
|
)
|
|
$
|
2.42
|
|
|
$
|
(15.46
|
)
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
$ in millions
|
|
Non-controlling Percentage
|
|
Non-controlling Equity
|
|
Non-controlling Percentage
|
|
Non-controlling Equity
|
||||||
OneBeacon Ltd.
|
|
24.2
|
%
|
|
$
|
247.0
|
|
|
23.9
|
%
|
|
$
|
244.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Other, excluding mutuals and reciprocals
|
|
|
|
|
|
|
|
|
||||||
HG Global
|
|
3.1
|
|
|
16.3
|
|
|
3.1
|
|
|
16.6
|
|
||
MediaAlpha
|
|
40.0
|
|
|
10.1
|
|
|
40.0
|
|
|
11.7
|
|
||
Buzzmove
|
|
29.1
|
|
|
2.6
|
|
|
29.1
|
|
|
2.9
|
|
||
Wobi
|
|
5.0
|
|
|
.9
|
|
|
5.0
|
|
|
.7
|
|
||
Dewar
(1)
|
|
11.4
|
|
|
(.4
|
)
|
|
18.8
|
|
|
3.9
|
|
||
Total other, excluding mutuals and reciprocals
|
|
|
|
29.5
|
|
|
|
|
35.8
|
|
||||
Mutuals and reciprocals
|
|
|
|
|
|
|
|
|
||||||
BAM
|
|
100.0
|
|
|
(159.7
|
)
|
|
100.0
|
|
|
(150.9
|
)
|
||
SSIE
|
|
—
|
|
|
—
|
|
|
100.0
|
|
|
4.4
|
|
||
Total mutuals and reciprocals
|
|
|
|
(159.7
|
)
|
|
|
|
(146.5
|
)
|
||||
Total non-controlling interests
|
|
|
|
|
$
|
116.8
|
|
|
|
|
$
|
133.9
|
|
|
|
HG Global/BAM
|
|
|
|
|
|
|
||||||||||||
Millions
|
|
HG Global
|
|
BAM
(1)
|
|
MediaAlpha
|
|
Other Operations
|
|
Total
|
||||||||||
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earned insurance premiums
|
|
$
|
1.7
|
|
|
$
|
.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.2
|
|
Net investment income
|
|
.8
|
|
|
2.2
|
|
|
—
|
|
|
11.7
|
|
|
14.7
|
|
|||||
Net investment income (loss) - BAM Surplus Note interest
|
|
4.7
|
|
|
(4.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net realized and unrealized investment gains
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
32.6
|
|
|
33.7
|
|
|||||
Advertising and commission revenues
|
|
—
|
|
|
—
|
|
|
30.8
|
|
|
2.4
|
|
|
33.2
|
|
|||||
Other revenue
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
1.4
|
|
|
1.6
|
|
|||||
Total revenues
|
|
7.2
|
|
|
(.7
|
)
|
|
30.8
|
|
|
48.1
|
|
|
85.4
|
|
|||||
Insurance acquisition expenses
|
|
.3
|
|
|
.6
|
|
|
—
|
|
|
—
|
|
|
.9
|
|
|||||
Other underwriting expenses
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
|||||
Cost of sales
|
|
—
|
|
|
—
|
|
|
26.1
|
|
|
.7
|
|
|
26.8
|
|
|||||
General and administrative expenses
|
|
.2
|
|
|
10.1
|
|
|
6.2
|
|
|
41.0
|
|
|
57.5
|
|
|||||
Interest expense
|
|
—
|
|
|
—
|
|
|
.3
|
|
|
.2
|
|
|
.5
|
|
|||||
Total expenses
|
|
.5
|
|
|
10.8
|
|
|
32.6
|
|
|
41.9
|
|
|
85.8
|
|
|||||
Pre-tax income (loss)
|
|
$
|
6.7
|
|
|
$
|
(11.5
|
)
|
|
$
|
(1.8
|
)
|
|
$
|
6.2
|
|
|
$
|
(.4
|
)
|
|
|
HG Global/BAM
|
|
|
|
|
|
|
||||||||||||
Millions
|
|
HG Global
|
|
BAM
(1)
|
|
MediaAlpha
|
|
Other Operations
|
|
Total
|
||||||||||
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earned insurance premiums
|
|
$
|
3.2
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
|
$
|
5.2
|
|
Net investment income
|
|
1.4
|
|
|
4.2
|
|
|
—
|
|
|
21.9
|
|
|
27.5
|
|
|||||
Net investment income (loss) - BAM Surplus Note interest
|
|
9.5
|
|
|
(9.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net realized and unrealized investment gains
|
|
.3
|
|
|
2.1
|
|
|
—
|
|
|
67.6
|
|
|
70.0
|
|
|||||
Advertising and commission revenues
|
|
—
|
|
|
—
|
|
|
63.3
|
|
|
8.4
|
|
|
71.7
|
|
|||||
Other revenue
|
|
—
|
|
|
.6
|
|
|
—
|
|
|
3.9
|
|
|
4.5
|
|
|||||
Total revenues
|
|
14.4
|
|
|
(1.6
|
)
|
|
63.3
|
|
|
102.8
|
|
|
178.9
|
|
|||||
Losses and LAE
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
|||||
Insurance acquisition expenses
|
|
.6
|
|
|
1.5
|
|
|
—
|
|
|
.1
|
|
|
2.2
|
|
|||||
Other underwriting expenses
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
—
|
|
|
.2
|
|
|||||
Cost of sales
|
|
—
|
|
|
—
|
|
|
53.8
|
|
|
1.8
|
|
|
55.6
|
|
|||||
General and administrative expenses
|
|
.5
|
|
|
20.4
|
|
|
11.8
|
|
|
85.2
|
|
|
117.9
|
|
|||||
Interest expense
|
|
—
|
|
|
—
|
|
|
.5
|
|
|
.4
|
|
|
.9
|
|
|||||
Total expenses
|
|
1.1
|
|
|
22.1
|
|
|
66.1
|
|
|
88.6
|
|
|
177.9
|
|
|||||
Pre-tax income (loss)
|
|
$
|
13.3
|
|
|
$
|
(23.7
|
)
|
|
$
|
(2.8
|
)
|
|
$
|
14.2
|
|
|
$
|
1.0
|
|
|
|
HG Global/BAM
|
|
|
|
|
|
|
||||||||||||
Millions
|
|
HG Global
|
|
BAM
(1)
|
|
MediaAlpha
|
|
Other Operations
|
|
Total
|
||||||||||
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earned insurance premiums
|
|
$
|
1.0
|
|
|
$
|
.4
|
|
|
$
|
—
|
|
|
$
|
1.9
|
|
|
$
|
3.3
|
|
Net investment income
|
|
.5
|
|
|
1.8
|
|
|
—
|
|
|
3.8
|
|
|
6.1
|
|
|||||
Net investment income (loss) - BAM Surplus Note interest
|
|
4.4
|
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net realized and unrealized investment gains (losses)
|
|
.5
|
|
|
3.2
|
|
|
—
|
|
|
(.3
|
)
|
|
3.4
|
|
|||||
Advertising and commission revenues
|
|
—
|
|
|
—
|
|
|
28.1
|
|
|
1.1
|
|
|
29.2
|
|
|||||
Other revenue
|
|
—
|
|
|
.3
|
|
|
—
|
|
|
6.9
|
|
|
7.2
|
|
|||||
Total revenues
|
|
6.4
|
|
|
1.3
|
|
|
28.1
|
|
|
13.4
|
|
|
49.2
|
|
|||||
Losses and LAE
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
2.3
|
|
|||||
Insurance acquisition expenses
|
|
.2
|
|
|
.6
|
|
|
—
|
|
|
.6
|
|
|
1.4
|
|
|||||
Other underwriting expenses
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
|||||
Cost of sales
|
|
—
|
|
|
—
|
|
|
23.3
|
|
|
1.1
|
|
|
24.4
|
|
|||||
General and administrative expenses
|
|
.3
|
|
|
9.6
|
|
|
5.3
|
|
|
30.0
|
|
|
45.2
|
|
|||||
Interest expense
|
|
—
|
|
|
—
|
|
|
.2
|
|
|
.7
|
|
|
.9
|
|
|||||
Total expenses
|
|
.5
|
|
|
10.3
|
|
|
28.8
|
|
|
34.7
|
|
|
74.3
|
|
|||||
Pre-tax income (loss)
|
|
$
|
5.9
|
|
|
$
|
(9.0
|
)
|
|
$
|
(.7
|
)
|
|
$
|
(21.3
|
)
|
|
$
|
(25.1
|
)
|
|
|
HG Global/BAM
|
|
|
|
|
|
|
||||||||||||
Millions
|
|
HG Global
|
|
BAM
(1)
|
|
MediaAlpha
|
|
Other Operations
|
|
Total
|
||||||||||
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earned insurance premiums
|
|
$
|
1.9
|
|
|
$
|
.7
|
|
|
$
|
—
|
|
|
$
|
4.2
|
|
|
$
|
6.8
|
|
Net investment income
|
|
1.0
|
|
|
3.4
|
|
|
—
|
|
|
4.2
|
|
|
8.6
|
|
|||||
Net investment income (loss) - BAM Surplus Note interest
|
|
8.9
|
|
|
(8.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net realized and unrealized investment gains
|
|
2.6
|
|
|
8.1
|
|
|
—
|
|
|
5.6
|
|
|
16.3
|
|
|||||
Advertising and commission revenues
|
|
—
|
|
|
—
|
|
|
60.8
|
|
|
2.2
|
|
|
63.0
|
|
|||||
Other revenue
|
|
—
|
|
|
.4
|
|
|
—
|
|
|
12.9
|
|
|
13.3
|
|
|||||
Total revenues
|
|
14.4
|
|
|
3.7
|
|
|
60.8
|
|
|
29.1
|
|
|
108.0
|
|
|||||
Losses and LAE
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|
4.6
|
|
|||||
Insurance acquisition expenses
|
|
.4
|
|
|
1.3
|
|
|
—
|
|
|
1.4
|
|
|
3.1
|
|
|||||
Other underwriting expenses
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
—
|
|
|
.2
|
|
|||||
Cost of sales
|
|
—
|
|
|
—
|
|
|
51.0
|
|
|
1.9
|
|
|
52.9
|
|
|||||
General and administrative expenses
|
|
.8
|
|
|
18.8
|
|
|
10.6
|
|
|
69.7
|
|
|
99.9
|
|
|||||
Interest expense
|
|
—
|
|
|
—
|
|
|
.5
|
|
|
1.6
|
|
|
2.1
|
|
|||||
Total expenses
|
|
1.2
|
|
|
20.3
|
|
|
62.1
|
|
|
79.2
|
|
|
162.8
|
|
|||||
Pre-tax income (loss)
|
|
$
|
13.2
|
|
|
$
|
(16.6
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(50.1
|
)
|
|
$
|
(54.8
|
)
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Millions, except share amounts
|
|
Target Performance
Shares Outstanding |
|
Accrued
Expense
|
|
Target Performance
Shares Outstanding |
|
Accrued
Expense
|
|
Target
Performance
Shares
Outstanding
|
|
Accrued
Expense
|
|
Target
Performance
Shares
Outstanding
|
|
Accrued
Expense
|
||||||||||||
Beginning of period
|
|
56,805
|
|
|
$
|
24.0
|
|
|
108,683
|
|
|
$
|
71.3
|
|
|
80,353
|
|
|
$
|
42.4
|
|
|
93,654
|
|
|
$
|
57.7
|
|
Shares paid
(1)
|
|
(671
|
)
|
|
(.8
|
)
|
|
(36,294
|
)
|
|
(41.3
|
)
|
|
(30,838
|
)
|
|
(21.6
|
)
|
|
(36,294
|
)
|
|
(41.3
|
)
|
||||
New grants
|
|
1,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,510
|
|
|
—
|
|
|
16,215
|
|
|
—
|
|
||||
Forfeitures and cancellations
(2)
|
|
(6,609
|
)
|
|
(3.3
|
)
|
|
908
|
|
|
.9
|
|
|
(16,450
|
)
|
|
(9.0
|
)
|
|
(278
|
)
|
|
.3
|
|
||||
Expense recognized
|
|
—
|
|
|
11.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
19.4
|
|
|
—
|
|
|
15.5
|
|
||||
End of period
(3)
|
|
50,575
|
|
|
$
|
31.2
|
|
|
73,297
|
|
|
$
|
32.2
|
|
|
50,575
|
|
|
$
|
31.2
|
|
|
73,297
|
|
|
$
|
32.2
|
|
Millions, except share amounts
|
|
Target Performance
Shares Outstanding
|
|
Accrued
Expense
|
|||
Performance cycle:
|
|
|
|
|
|
|
|
2015 – 2017
|
|
18,470
|
|
|
$
|
18.3
|
|
2016 – 2018
|
|
16,315
|
|
|
10.3
|
|
|
2017 – 2019
|
|
16,560
|
|
|
3.1
|
|
|
Sub-total
|
|
51,345
|
|
|
31.7
|
|
|
Assumed forfeitures
|
|
(770
|
)
|
|
(.5
|
)
|
|
June 30, 2017
|
|
50,575
|
|
|
$
|
31.2
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Millions, except share amounts
|
|
Restricted
Shares |
|
Unamortized
Issue Date Fair Value |
|
Restricted
Shares |
|
Unamortized
Issue Date Fair Value |
|
Restricted
Shares
|
|
Unamortized
Issue Date
Fair Value
|
|
Restricted
Shares
|
|
Unamortized
Issue Date
Fair Value
|
||||||||||||
Non-vested,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of period
|
|
60,140
|
|
|
$
|
29.1
|
|
|
66,470
|
|
|
$
|
29.2
|
|
|
70,620
|
|
|
$
|
19.7
|
|
|
70,675
|
|
|
$
|
15.7
|
|
Issued
|
|
1,050
|
|
|
.9
|
|
|
—
|
|
|
—
|
|
|
17,785
|
|
|
16.7
|
|
|
21,215
|
|
|
16.3
|
|
||||
Vested
|
|
(6,571
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,586
|
)
|
|
—
|
|
|
(24,620
|
)
|
|
—
|
|
||||
Forfeited
|
|
(804
|
)
|
|
(.7
|
)
|
|
—
|
|
|
—
|
|
|
(6,004
|
)
|
|
(3.5
|
)
|
|
(800
|
)
|
|
.2
|
|
||||
Expense recognized
|
|
—
|
|
|
(5.8
|
)
|
|
—
|
|
|
(5.0
|
)
|
|
—
|
|
|
(9.4
|
)
|
|
—
|
|
|
(8.0
|
)
|
||||
End of period
(1)
|
|
53,815
|
|
|
$
|
23.5
|
|
|
66,470
|
|
|
$
|
24.2
|
|
|
53,815
|
|
|
$
|
23.5
|
|
|
66,470
|
|
|
$
|
24.2
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
Millions
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
||||||||
MediaAlpha Bank Facility
|
|
$
|
10.6
|
|
|
$
|
10.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Previous MediaAlpha Bank Facility
|
|
—
|
|
|
—
|
|
|
13.0
|
|
|
12.7
|
|
Millions
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Assets held for sale
|
|
|
|
|
||||
Fixed maturity investments, at fair value
|
|
$
|
2,288.6
|
|
|
$
|
2,175.7
|
|
Short-term investments, at amortized cost (which approximates fair value)
|
|
55.5
|
|
|
112.3
|
|
||
Common equity securities, at fair value
|
|
205.5
|
|
|
188.7
|
|
||
Other long-term investments
|
|
134.1
|
|
|
150.5
|
|
||
Total investments
|
|
2,683.7
|
|
|
2,627.2
|
|
||
Cash
|
|
71.3
|
|
|
70.5
|
|
||
Reinsurance recoverable on unpaid and paid losses
|
|
198.0
|
|
|
179.8
|
|
||
Insurance and reinsurance premiums receivable
|
|
245.4
|
|
|
229.8
|
|
||
Deferred acquisition costs
|
|
106.9
|
|
|
96.3
|
|
||
Deferred tax asset
|
|
130.1
|
|
|
126.7
|
|
||
Ceded unearned insurance and reinsurance premiums
|
|
56.6
|
|
|
44.2
|
|
||
Accounts receivable on unsettled investment sales
|
|
5.8
|
|
|
1.4
|
|
||
Goodwill and other intangible assets
|
|
.6
|
|
|
1.2
|
|
||
Other assets
|
|
198.0
|
|
|
222.4
|
|
||
Total assets held for sale
|
|
$
|
3,696.4
|
|
|
$
|
3,599.5
|
|
Liabilities held for sale
|
|
|
|
|
||||
Loss and loss adjustment expense reserves
|
|
$
|
1,411.2
|
|
|
$
|
1,370.6
|
|
Unearned insurance and reinsurance premiums
|
|
595.2
|
|
|
576.3
|
|
||
Debt
|
|
273.3
|
|
|
273.2
|
|
||
Accrued incentive compensation
|
|
39.5
|
|
|
44.3
|
|
||
Funds held under reinsurance treaties
|
|
210.2
|
|
|
153.0
|
|
||
Accounts payable on unsettled investment purchases
|
|
9.3
|
|
|
—
|
|
||
Other liabilities
|
|
140.1
|
|
|
151.9
|
|
||
Total liabilities held for sale
|
|
2,678.8
|
|
|
2,569.3
|
|
||
Net assets held for sale
|
|
$
|
1,017.6
|
|
|
$
|
1,030.2
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||||||
Millions
|
|
OneBeacon
|
|
Sirius Group
|
|
Total
|
|
OneBeacon
|
|
Sirius Group
|
|
Other Disc Ops
|
|
Total
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earned insurance premiums
|
|
$
|
277.4
|
|
|
$
|
—
|
|
|
$
|
277.4
|
|
|
$
|
271.4
|
|
|
$
|
37.7
|
|
|
$
|
—
|
|
|
$
|
309.1
|
|
Net investment income
|
|
14.5
|
|
|
—
|
|
|
14.5
|
|
|
12.1
|
|
|
2.2
|
|
|
—
|
|
|
14.3
|
|
|||||||
Net realized and unrealized gains
|
|
12.3
|
|
|
—
|
|
|
12.3
|
|
|
24.7
|
|
|
7.3
|
|
|
—
|
|
|
32.0
|
|
|||||||
Other revenue
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
.8
|
|
|
4.7
|
|
|
47.0
|
|
|
52.5
|
|
|||||||
Total revenues
|
|
306.3
|
|
|
—
|
|
|
306.3
|
|
|
309.0
|
|
|
51.9
|
|
|
47.0
|
|
|
407.9
|
|
|||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss and loss adjustment expenses
|
|
188.6
|
|
|
—
|
|
|
188.6
|
|
|
179.7
|
|
|
41.2
|
|
|
—
|
|
|
220.9
|
|
|||||||
Insurance and reinsurance acquisition expenses
|
|
48.4
|
|
|
—
|
|
|
48.4
|
|
|
48.7
|
|
|
10.6
|
|
|
—
|
|
|
59.3
|
|
|||||||
Other underwriting expenses
|
|
59.6
|
|
|
—
|
|
|
59.6
|
|
|
50.9
|
|
|
4.2
|
|
|
—
|
|
|
55.1
|
|
|||||||
General and administrative expenses
|
|
8.8
|
|
|
—
|
|
|
8.8
|
|
|
3.5
|
|
|
2.3
|
|
|
47.1
|
|
|
52.9
|
|
|||||||
Interest expense
|
|
3.3
|
|
|
—
|
|
|
3.3
|
|
|
3.2
|
|
|
1.3
|
|
|
1.3
|
|
|
5.8
|
|
|||||||
Total expenses
|
|
308.7
|
|
|
—
|
|
|
308.7
|
|
|
286.0
|
|
|
59.6
|
|
|
48.4
|
|
|
394.0
|
|
|||||||
Pre-tax (loss) income
|
|
(2.4
|
)
|
|
—
|
|
|
(2.4
|
)
|
|
23.0
|
|
|
(7.7
|
)
|
|
(1.4
|
)
|
|
13.9
|
|
|||||||
Income tax benefit (expense)
|
|
5.8
|
|
|
—
|
|
|
5.8
|
|
|
2.0
|
|
|
2.2
|
|
|
(1.1
|
)
|
|
3.1
|
|
|||||||
Net income (loss) from discontinued operations
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
|
25.0
|
|
|
(5.5
|
)
|
|
(2.5
|
)
|
|
17.0
|
|
|||||||
Net (loss) gain from sale of discontinued
operations
|
|
—
|
|
|
(.6
|
)
|
|
(.6
|
)
|
|
—
|
|
|
366.6
|
|
|
—
|
|
|
366.6
|
|
|||||||
Total (loss) income from discontinued
operations
|
|
3.4
|
|
|
(.6
|
)
|
|
2.8
|
|
|
25.0
|
|
|
361.1
|
|
|
(2.5
|
)
|
|
383.6
|
|
|||||||
Change in foreign currency translation and other
from discontinued operations
|
|
.2
|
|
|
—
|
|
|
.2
|
|
|
.2
|
|
|
(5.2
|
)
|
|
—
|
|
|
(5.0
|
)
|
|||||||
Change in foreign currency translation and other
from sale of Sirius Group
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113.3
|
|
|
—
|
|
|
113.3
|
|
|||||||
Comprehensive (loss) income from discontinued
operations
|
|
$
|
3.6
|
|
|
$
|
(.6
|
)
|
|
$
|
3.0
|
|
|
$
|
25.2
|
|
|
$
|
469.2
|
|
|
$
|
(2.5
|
)
|
|
$
|
491.9
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||||||||||
Millions
|
|
OneBeacon
|
|
Sirius Group
|
|
Other Disc Ops
|
|
Total
|
|
OneBeacon
|
|
Sirius Group
|
|
Other Disc Ops
|
|
Total
|
||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earned insurance premiums
|
|
$
|
539.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
539.2
|
|
|
$
|
550.0
|
|
|
$
|
240.1
|
|
|
$
|
—
|
|
|
$
|
790.1
|
|
Net investment income
|
|
26.7
|
|
|
—
|
|
|
—
|
|
|
26.7
|
|
|
26.5
|
|
|
14.4
|
|
|
—
|
|
|
40.9
|
|
||||||||
Net realized and unrealized gains (losses)
|
|
27.3
|
|
|
—
|
|
|
—
|
|
|
27.3
|
|
|
41.3
|
|
|
(1.5
|
)
|
|
—
|
|
|
39.8
|
|
||||||||
Other revenue
|
|
5.5
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
|
1.7
|
|
|
.6
|
|
|
104.8
|
|
|
107.1
|
|
||||||||
Total revenues
|
|
598.7
|
|
|
—
|
|
|
—
|
|
|
598.7
|
|
|
619.5
|
|
|
253.6
|
|
|
104.8
|
|
|
977.9
|
|
||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loss and loss adjustment expenses
|
|
339.2
|
|
|
—
|
|
|
—
|
|
|
339.2
|
|
|
338.5
|
|
|
154.9
|
|
|
—
|
|
|
493.4
|
|
||||||||
Insurance and reinsurance
acquisition expenses
|
|
93.7
|
|
|
—
|
|
|
—
|
|
|
93.7
|
|
|
99.7
|
|
|
59.0
|
|
|
—
|
|
|
158.7
|
|
||||||||
Other underwriting expenses
|
|
111.3
|
|
|
—
|
|
|
—
|
|
|
111.3
|
|
|
106.2
|
|
|
30.9
|
|
|
—
|
|
|
137.1
|
|
||||||||
General and administrative expenses
|
|
13.8
|
|
|
—
|
|
|
—
|
|
|
13.8
|
|
|
7.4
|
|
|
10.4
|
|
|
100.5
|
|
|
118.3
|
|
||||||||
Interest expense
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
6.5
|
|
|
7.9
|
|
|
2.7
|
|
|
17.1
|
|
||||||||
Total expenses
|
|
564.6
|
|
|
—
|
|
|
—
|
|
|
564.6
|
|
|
558.3
|
|
|
263.1
|
|
|
103.2
|
|
|
924.6
|
|
||||||||
Pre-tax income (loss)
|
|
34.1
|
|
|
—
|
|
|
—
|
|
|
34.1
|
|
|
61.2
|
|
|
(9.5
|
)
|
|
1.6
|
|
|
53.3
|
|
||||||||
Income tax benefit (expense)
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
10.1
|
|
|
3.1
|
|
|
(2.1
|
)
|
|
11.1
|
|
||||||||
Net income (loss) from
discontinued operations
|
|
35.7
|
|
|
—
|
|
|
—
|
|
|
35.7
|
|
|
71.3
|
|
|
(6.4
|
)
|
|
(.5
|
)
|
|
64.4
|
|
||||||||
(Loss) gain from sale of discontinued
operations
|
|
—
|
|
|
(.6
|
)
|
|
(1.0
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
366.6
|
|
|
—
|
|
|
366.6
|
|
||||||||
Total income (loss) from discontinued
operations
|
|
35.7
|
|
|
(.6
|
)
|
|
(1.0
|
)
|
|
34.1
|
|
|
71.3
|
|
|
360.2
|
|
|
(.5
|
)
|
|
431.0
|
|
||||||||
Change in foreign currency translation and
other from discontinued operations
|
|
.3
|
|
|
—
|
|
|
—
|
|
|
.3
|
|
|
.2
|
|
|
32.0
|
|
|
—
|
|
|
32.2
|
|
||||||||
Change in foreign currency translation and
other from sale of Sirius Group
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113.3
|
|
|
—
|
|
|
113.3
|
|
||||||||
Comprehensive (loss) income from
discontinued operations
|
|
$
|
36.0
|
|
|
$
|
(.6
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
34.4
|
|
|
$
|
71.5
|
|
|
$
|
505.5
|
|
|
$
|
(.5
|
)
|
|
$
|
576.5
|
|
|
|
Six Months Ended
|
||||||
|
|
June 30,
|
||||||
(Millions)
|
|
2017
|
|
2016
|
||||
Net cash provided from (used for) operations
|
|
$
|
87.3
|
|
|
$
|
(61.2
|
)
|
Net cash (used for) provided from investing activities
|
|
(43.6
|
)
|
|
276.8
|
|
||
Net cash used for financing activities
|
|
(42.0
|
)
|
|
(43.1
|
)
|
||
Net change in cash during the period
|
|
1.7
|
|
|
172.5
|
|
||
Cash balances at beginning of period
|
|
70.5
|
|
|
245.4
|
|
||
Net change in cash held for sale, excluding discontinued operations
|
|
(.9
|
)
|
|
(.6
|
)
|
||
Cash sold as part of sale of consolidated subsidiaries
|
|
—
|
|
|
343.1
|
|
||
Cash balances at end of period
|
|
$
|
71.3
|
|
|
$
|
74.2
|
|
Supplemental cash flows information:
|
|
|
|
|
||||
Interest paid
|
|
$
|
(6.3
|
)
|
|
$
|
(1.4
|
)
|
Net income tax payment to national governments
|
|
$
|
—
|
|
|
$
|
(18.3
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Basic and diluted earnings per share numerators (in millions):
|
|
|
|
|
|
|
|
|
|
|||||||
Net income attributable to White Mountains’s
common shareholders
|
|
$
|
2.8
|
|
|
$
|
383.6
|
|
|
$
|
34.1
|
|
|
$
|
431.0
|
|
Allocation of income for participating unvested restricted common shares
(1)
|
|
—
|
|
|
(5.0
|
)
|
|
(.4
|
)
|
|
(4.9
|
)
|
||||
Net income attributable to White Mountains’s
common shareholders |
|
$
|
2.8
|
|
|
$
|
378.6
|
|
|
$
|
33.7
|
|
|
$
|
426.1
|
|
Basic earnings per share denominators (in thousands):
|
|
|
|
|
|
|
|
|
|
|||||||
Total average common shares outstanding during the period
|
|
4,572.1
|
|
|
5,096.1
|
|
|
4,568.4
|
|
|
5,317.8
|
|
||||
Average unvested restricted common shares
(3)
|
|
(57.2
|
)
|
|
(66.5
|
)
|
|
(54.9
|
)
|
|
(60.2
|
)
|
||||
Basic earnings per share denominator
|
|
4,514.9
|
|
|
5,029.6
|
|
|
4,513.5
|
|
|
5,257.6
|
|
||||
Diluted earnings per share denominator (in thousands):
|
|
|
|
|
|
|
|
|
|
|||||||
Total average common shares outstanding during the period
(4)
|
|
4,572.1
|
|
|
5,107.0
|
|
|
4,568.4
|
|
|
5,324.0
|
|
||||
Average unvested restricted common shares
(3)
|
|
(57.2
|
)
|
|
(66.5
|
)
|
|
(54.9
|
)
|
|
(60.2
|
)
|
||||
Diluted earnings per share denominator
(4)
|
|
4,514.9
|
|
|
5,040.5
|
|
|
4,513.5
|
|
|
5,263.8
|
|
||||
Basic earnings per share (in dollars):
|
|
$
|
.61
|
|
|
$
|
75.27
|
|
|
$
|
7.47
|
|
|
$
|
81.04
|
|
Diluted earnings per share (in dollars):
|
|
$
|
.61
|
|
|
$
|
75.11
|
|
|
$
|
7.47
|
|
|
$
|
80.96
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
Millions
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
||||||||
OBH Senior Notes
|
|
$
|
282.4
|
|
|
$
|
273.3
|
|
|
$
|
274.2
|
|
|
$
|
273.2
|
|
|
|
Type of Surplus Note
|
|
Total as of June 30, 2017
|
|
Total as of December 31, 2016
|
||||||||||
Millions
|
|
Seller Priority
|
|
Pari Passu
|
|
|||||||||||
Par Value
|
|
$
|
57.9
|
|
|
$
|
43.1
|
|
|
$
|
101.0
|
|
|
$
|
101.0
|
|
Fair value adjustments to reflect:
|
|
|
|
|
|
|
|
|
||||||||
Current market rates on public debt and contract-based repayments
(1)
|
|
7.9
|
|
|
2.1
|
|
|
10.0
|
|
|
5.1
|
|
||||
Regulatory approval
(2)
|
|
2.7
|
|
|
(13.7
|
)
|
|
(11.0
|
)
|
|
(15.6
|
)
|
||||
Liquidity adjustment
(3)
|
|
(19.6
|
)
|
|
(9.9
|
)
|
|
(29.5
|
)
|
|
(18.6
|
)
|
||||
Total adjustments
|
|
(9.0
|
)
|
|
(21.5
|
)
|
|
(30.5
|
)
|
|
(29.1
|
)
|
||||
Fair value
(4)
|
|
$
|
48.9
|
|
|
$
|
21.6
|
|
|
$
|
70.5
|
|
|
$
|
71.9
|
|
(1)
|
Represents the value of the surplus notes, at current market yields on comparable publicly traded debt, and assuming issuer is allowed to make principal and interest payments when its financial capacity is available, as measured by statutory capital in excess of a
250%
RBC score under the National Association of Insurance Commissioners’ risk-based capital standards for property and casualty companies. The favorable year-to-date change in impact is due principally to the narrowing of non-investment grade credit spreads as well as the time value of money benefit from moving three months closer to modeled cash receipts.
|
(2)
|
Represents anticipated delay in securing regulatory approvals of interest and principal payments to reflect graduated changes in Issuer's statutory surplus. The monetary impact of the anticipated delay is measured based on credit spreads of public securities with roughly equivalent percentages of discounted payments missed. The favorable year-to-date change in impact is driven primarily by the narrowing of non-investment grade credit spreads, which causes negative valuation impact from the anticipated delay in securing regulatory approval to be lower.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
|
|
June 30, 2017
|
|
March 31, 2017
|
|
December 31, 2016
|
|
June 30, 2016
|
||||||||
Book value per share numerators (in millions):
|
|
|
|
|
|
|
|
|
|
|
||||||
White Mountains’s common shareholders’ equity
|
|
$
|
3,647.3
|
|
|
$
|
3,625.2
|
|
|
$
|
3,603.3
|
|
|
$
|
3,875.2
|
|
Future proceeds from options
(1)
|
|
—
|
|
|
—
|
|
|
29.7
|
|
|
89.0
|
|
||||
Time-value of money discount on expected future payments
on the BAM Surplus Notes
(2)
|
|
(166.7
|
)
|
|
N/A
|
|
N/A
|
|
N/A
|
|||||||
HG Global’s unearned premium reserve
(2)
|
|
81.5
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|||||||
HG Global’s net deferred acquisition costs
(2)
|
|
(17.6
|
)
|
|
N/A
|
|
N/A
|
|
N/A
|
|||||||
Adjusted book value per share numerator
|
|
$
|
3,544.5
|
|
|
$
|
3,625.2
|
|
|
$
|
3,633.0
|
|
|
$
|
3,964.2
|
|
Book value per share denominators (in thousands of shares):
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common shares outstanding
|
|
4,571.6
|
|
|
4,572.8
|
|
|
4,563.8
|
|
|
4,963.9
|
|
||||
Unearned restricted shares
|
|
(27.4
|
)
|
|
(34.7
|
)
|
|
(25.9
|
)
|
|
(33.2
|
)
|
||||
Options assumed issued
(1)
|
|
—
|
|
|
—
|
|
|
40.0
|
|
|
120.0
|
|
||||
Adjusted book value per share denominator
|
|
4,544.2
|
|
|
4,538.1
|
|
|
4,577.9
|
|
|
5,050.7
|
|
||||
GAAP book value per share
|
|
$
|
797.80
|
|
|
$
|
792.77
|
|
|
$
|
789.53
|
|
|
$
|
780.67
|
|
Adjusted book value per share
|
|
$
|
780.00
|
|
|
$
|
798.83
|
|
|
$
|
793.58
|
|
|
$
|
784.90
|
|
Year-to-date dividends paid per share
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
Millions
|
|
June 30, 2017
|
|
December 31, 2016
|
|
June 30, 2016
|
||||||
Goodwill
|
|
|
|
|
|
|
||||||
MediaAlpha
|
|
$
|
18.3
|
|
|
$
|
18.3
|
|
|
$
|
18.3
|
|
Other
|
|
13.4
|
|
|
13.4
|
|
|
5.8
|
|
|||
Total goodwill
|
|
31.7
|
|
|
31.7
|
|
|
24.1
|
|
|||
Other intangible assets
|
|
|
|
|
|
|
||||||
MediaAlpha
|
|
13.4
|
|
|
18.3
|
|
|
23.3
|
|
|||
Other
|
|
4.4
|
|
|
4.7
|
|
|
4.1
|
|
|||
Total other intangible assets
|
|
17.8
|
|
|
23.0
|
|
|
27.4
|
|
|||
Total goodwill and other intangible assets
(1)
|
|
49.5
|
|
|
54.7
|
|
|
51.5
|
|
|||
Goodwill and other intangible assets held for sale
|
|
.6
|
|
|
1.2
|
|
|
316.9
|
|
|||
Goodwill and other intangible assets attributed to non-controlling interests
|
|
(15.8
|
)
|
|
(17.6
|
)
|
|
(131.5
|
)
|
|||
Goodwill and other intangible assets included in White Mountains's
common shareholders' equity |
|
$
|
34.3
|
|
|
$
|
38.3
|
|
|
$
|
236.9
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
Millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Gross written premiums
|
|
$
|
12.4
|
|
|
$
|
12.4
|
|
|
$
|
32.0
|
|
|
$
|
23.6
|
|
Net written premiums
|
|
$
|
12.4
|
|
|
$
|
10.6
|
|
|
$
|
32.8
|
|
|
$
|
19.6
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
||||||
Earned insurance premiums
|
|
$
|
2.2
|
|
|
$
|
3.3
|
|
|
$
|
5.2
|
|
|
$
|
6.8
|
|
Net investment income
|
|
14.7
|
|
|
6.1
|
|
|
27.5
|
|
|
8.6
|
|
||||
Net realized and unrealized investment gains
|
|
33.7
|
|
|
3.4
|
|
|
70.0
|
|
|
16.3
|
|
||||
Advertising and commission revenues
|
|
33.2
|
|
|
29.2
|
|
|
71.7
|
|
|
63.0
|
|
||||
Other revenue
|
|
1.6
|
|
|
7.2
|
|
|
4.5
|
|
|
13.3
|
|
||||
Total revenues
|
|
85.4
|
|
|
49.2
|
|
|
178.9
|
|
|
108.0
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss and loss adjustment expenses
|
|
—
|
|
|
2.3
|
|
|
1.1
|
|
|
4.6
|
|
||||
Insurance acquisition expenses
|
|
.9
|
|
|
1.4
|
|
|
2.2
|
|
|
3.1
|
|
||||
Other underwriting expenses
|
|
.1
|
|
|
.1
|
|
|
.2
|
|
|
.2
|
|
||||
Cost of sales
|
|
26.8
|
|
|
24.4
|
|
|
55.6
|
|
|
52.9
|
|
||||
General and administrative expenses
|
|
54.9
|
|
|
42.2
|
|
|
112.7
|
|
|
94.1
|
|
||||
General and administrative expenses—intangible asset amortization
|
|
2.6
|
|
|
3.0
|
|
|
5.2
|
|
|
5.8
|
|
||||
Interest expense
|
|
.5
|
|
|
.9
|
|
|
.9
|
|
|
2.1
|
|
||||
Total expenses
|
|
85.8
|
|
|
74.3
|
|
|
177.9
|
|
|
162.8
|
|
||||
Pre-tax (loss) income from continuing operations
|
|
(.4
|
)
|
|
(25.1
|
)
|
|
1.0
|
|
|
(54.8
|
)
|
||||
Income tax benefit
|
|
1.0
|
|
|
4.0
|
|
|
1.3
|
|
|
5.6
|
|
||||
Net income (loss) from continuing operations
|
|
.6
|
|
|
(21.1
|
)
|
|
2.3
|
|
|
(49.2
|
)
|
||||
(Loss) income on sale of discontinued operations, net of tax
|
|
(.6
|
)
|
|
366.6
|
|
|
(1.6
|
)
|
|
366.6
|
|
||||
Net income from discontinued operations, net of tax
|
|
3.4
|
|
|
17.0
|
|
|
35.7
|
|
|
64.4
|
|
||||
Net income
|
|
3.4
|
|
|
362.5
|
|
|
36.4
|
|
|
381.8
|
|
||||
Net loss (income) attributable to non-controlling interests
|
|
12.1
|
|
|
(21.4
|
)
|
|
13.4
|
|
|
(27.7
|
)
|
||||
Net income attributable to White Mountains’s common shareholders
|
|
15.5
|
|
|
341.1
|
|
|
49.8
|
|
|
354.1
|
|
||||
Change in foreign currency translation and pension liability, net of tax
|
|
.6
|
|
|
(.2
|
)
|
|
1.4
|
|
|
(.1
|
)
|
||||
Change in foreign currency translation and other from
discontinued operations, net of tax
|
|
.2
|
|
|
108.3
|
|
|
.3
|
|
|
145.5
|
|
||||
Comprehensive income
|
|
16.3
|
|
|
449.2
|
|
|
51.5
|
|
|
499.5
|
|
||||
Comprehensive income attributable to non-controlling interests
|
|
(.1
|
)
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
||||
Comprehensive income attributable to White Mountains’s
common shareholders
|
|
$
|
16.2
|
|
|
$
|
449.2
|
|
|
$
|
51.4
|
|
|
$
|
499.5
|
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||
Millions
|
|
HG Global
|
|
BAM
|
|
Eliminations
|
|
Total
|
||||||||
Gross written premiums
|
|
$
|
—
|
|
|
$
|
12.4
|
|
|
$
|
—
|
|
|
$
|
12.4
|
|
Assumed (ceded) written premiums
|
|
13.8
|
|
|
(13.8
|
)
|
|
—
|
|
|
—
|
|
||||
Net written premiums
|
|
$
|
13.8
|
|
|
$
|
(1.4
|
)
|
|
$
|
—
|
|
|
$
|
12.4
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned insurance premiums
|
|
$
|
1.7
|
|
|
$
|
.5
|
|
|
$
|
—
|
|
|
$
|
2.2
|
|
Net investment income
|
|
.8
|
|
|
2.2
|
|
|
—
|
|
|
3.0
|
|
||||
Net investment income - BAM Surplus Notes
|
|
4.7
|
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
||||
Net realized and unrealized investment gains
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
||||
Other revenue
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
.2
|
|
||||
Total revenues
|
|
7.2
|
|
|
4.0
|
|
|
(4.7
|
)
|
|
6.5
|
|
||||
Insurance acquisition expenses
|
|
.3
|
|
|
.6
|
|
|
—
|
|
|
.9
|
|
||||
Other underwriting expenses
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
.1
|
|
||||
General and administrative expenses
|
|
.2
|
|
|
10.1
|
|
|
—
|
|
|
10.3
|
|
||||
Interest expense - BAM Surplus Notes
|
|
—
|
|
|
4.7
|
|
|
(4.7
|
)
|
|
—
|
|
||||
Total expenses
|
|
.5
|
|
|
15.5
|
|
|
(4.7
|
)
|
|
11.3
|
|
||||
Pre-tax income (loss)
|
|
$
|
6.7
|
|
|
$
|
(11.5
|
)
|
|
$
|
—
|
|
|
$
|
(4.8
|
)
|
Supplemental information:
|
|
|
|
|
|
|
|
|
||||||||
Member Surplus Contributions
(1)
|
|
$
|
—
|
|
|
$
|
7.7
|
|
|
$
|
—
|
|
|
$
|
7.7
|
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||
Millions
|
|
HG Global
|
|
BAM
|
|
Eliminations
|
|
Total
|
||||||||
Gross written premiums
|
|
$
|
—
|
|
|
$
|
8.9
|
|
|
$
|
—
|
|
|
$
|
8.9
|
|
Assumed (ceded) written premiums
|
|
6.7
|
|
|
(6.7
|
)
|
|
—
|
|
|
—
|
|
||||
Net written premiums
|
|
$
|
6.7
|
|
|
$
|
2.2
|
|
|
$
|
—
|
|
|
$
|
8.9
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned insurance premiums
|
|
$
|
1.0
|
|
|
$
|
.4
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
Net investment income
|
|
.5
|
|
|
1.8
|
|
|
—
|
|
|
2.3
|
|
||||
Net investment income - BAM Surplus Notes
|
|
4.4
|
|
|
—
|
|
|
(4.4
|
)
|
|
—
|
|
||||
Net realized and unrealized investment gains
|
|
.5
|
|
|
3.2
|
|
|
—
|
|
|
3.7
|
|
||||
Other revenue
|
|
—
|
|
|
.3
|
|
|
—
|
|
|
.3
|
|
||||
Total revenues
|
|
6.4
|
|
|
5.7
|
|
|
(4.4
|
)
|
|
7.7
|
|
||||
Insurance acquisition expenses
|
|
.2
|
|
|
.6
|
|
|
—
|
|
|
.8
|
|
||||
Other underwriting expenses
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
.1
|
|
||||
General and administrative expenses
|
|
.3
|
|
|
9.6
|
|
|
—
|
|
|
9.9
|
|
||||
Interest expense - BAM Surplus Notes
|
|
—
|
|
|
4.4
|
|
|
(4.4
|
)
|
|
—
|
|
||||
Total expenses
|
|
.5
|
|
|
14.7
|
|
|
(4.4
|
)
|
|
10.8
|
|
||||
Pre-tax income (loss)
|
|
$
|
5.9
|
|
|
$
|
(9.0
|
)
|
|
$
|
—
|
|
|
$
|
(3.1
|
)
|
Supplemental information:
|
|
|
|
|
|
|
|
|
||||||||
Member Surplus Contributions
(1)
|
|
$
|
—
|
|
|
$
|
10.0
|
|
|
$
|
—
|
|
|
$
|
10.0
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||
Millions
|
|
HG Global
|
|
BAM
|
|
Eliminations
|
|
Total
|
||||||||
Gross written premiums
|
|
$
|
—
|
|
|
$
|
31.1
|
|
|
$
|
—
|
|
|
$
|
31.1
|
|
Assumed (ceded) written premiums
|
|
26.4
|
|
|
(26.4
|
)
|
|
—
|
|
|
—
|
|
||||
Net written premiums
|
|
$
|
26.4
|
|
|
$
|
4.7
|
|
|
$
|
—
|
|
|
$
|
31.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned insurance premiums
|
|
$
|
3.2
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
4.2
|
|
Net investment income
|
|
1.4
|
|
|
4.2
|
|
|
—
|
|
|
5.6
|
|
||||
Net investment income - BAM Surplus Notes
|
|
9.5
|
|
|
—
|
|
|
(9.5
|
)
|
|
—
|
|
||||
Net realized and unrealized investment gains
|
|
.3
|
|
|
2.1
|
|
|
—
|
|
|
2.4
|
|
||||
Other revenue
|
|
—
|
|
|
.6
|
|
|
—
|
|
|
.6
|
|
||||
Total revenues
|
|
14.4
|
|
|
7.9
|
|
|
(9.5
|
)
|
|
12.8
|
|
||||
Insurance acquisition expenses
|
|
.6
|
|
|
1.5
|
|
|
—
|
|
|
2.1
|
|
||||
Other underwriting expenses
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
.2
|
|
||||
General and administrative expenses
|
|
.5
|
|
|
20.4
|
|
|
—
|
|
|
20.9
|
|
||||
Interest expense - BAM Surplus Notes
|
|
—
|
|
|
9.5
|
|
|
(9.5
|
)
|
|
—
|
|
||||
Total expenses
|
|
1.1
|
|
|
31.6
|
|
|
(9.5
|
)
|
|
23.2
|
|
||||
Pre-tax income (loss)
|
|
$
|
13.3
|
|
|
$
|
(23.7
|
)
|
|
$
|
—
|
|
|
$
|
(10.4
|
)
|
Supplemental information:
|
|
|
|
|
|
|
|
|
||||||||
Member Surplus Contributions
(1)
|
|
$
|
—
|
|
|
$
|
17.3
|
|
|
$
|
—
|
|
|
$
|
17.3
|
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||
Millions
|
|
HG Global
|
|
BAM
|
|
Eliminations
|
|
Total
|
||||||||
Gross written premiums
|
|
$
|
—
|
|
|
$
|
15.7
|
|
|
$
|
—
|
|
|
$
|
15.7
|
|
Assumed (ceded) written premiums
|
|
11.8
|
|
|
(11.8
|
)
|
|
—
|
|
|
—
|
|
||||
Net written premiums
|
|
$
|
11.8
|
|
|
$
|
3.9
|
|
|
$
|
—
|
|
|
$
|
15.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earned insurance premiums
|
|
$
|
1.9
|
|
|
$
|
.7
|
|
|
$
|
—
|
|
|
$
|
2.6
|
|
Net investment income
|
|
1.0
|
|
|
3.4
|
|
|
—
|
|
|
4.4
|
|
||||
Net investment income - BAM Surplus Notes
|
|
8.9
|
|
|
—
|
|
|
(8.9
|
)
|
|
—
|
|
||||
Net realized and unrealized investment gains
|
|
2.6
|
|
|
8.1
|
|
|
—
|
|
|
10.7
|
|
||||
Other revenue
|
|
—
|
|
|
.4
|
|
|
—
|
|
|
.4
|
|
||||
Total revenues
|
|
14.4
|
|
|
12.6
|
|
|
(8.9
|
)
|
|
18.1
|
|
||||
Insurance acquisition expenses
|
|
.4
|
|
|
1.3
|
|
|
—
|
|
|
1.7
|
|
||||
Other underwriting expenses
|
|
—
|
|
|
.2
|
|
|
—
|
|
|
.2
|
|
||||
General and administrative expenses
|
|
.8
|
|
|
18.8
|
|
|
—
|
|
|
19.6
|
|
||||
Interest expense - BAM Surplus Notes
|
|
—
|
|
|
8.9
|
|
|
(8.9
|
)
|
|
—
|
|
||||
Total expenses
|
|
1.2
|
|
|
29.2
|
|
|
(8.9
|
)
|
|
21.5
|
|
||||
Pre-tax income (loss)
|
|
$
|
13.2
|
|
|
$
|
(16.6
|
)
|
|
$
|
—
|
|
|
$
|
(3.4
|
)
|
Supplemental information:
|
|
|
|
|
|
|
|
|
||||||||
Member Surplus Contributions
(1)
|
|
$
|
—
|
|
|
$
|
16.7
|
|
|
$
|
—
|
|
|
$
|
16.7
|
|
Millions
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Policyholders’ surplus
|
|
$
|
431.5
|
|
|
$
|
431.5
|
|
Contingency reserve
|
|
28.5
|
|
|
22.7
|
|
||
Qualified statutory capital
|
|
460.0
|
|
|
454.2
|
|
||
Net unearned premiums
|
|
26.9
|
|
|
23.2
|
|
||
Present value of future installment premiums
|
|
6.4
|
|
|
3.3
|
|
||
Collateral trusts
|
|
182.6
|
|
|
163.0
|
|
||
Claims paying resources
|
|
$
|
675.9
|
|
|
$
|
643.7
|
|
Millions
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Policyholders’ surplus
|
|
$
|
432.5
|
|
|
$
|
437.2
|
|
Contingency reserve
|
|
17.3
|
|
|
12.4
|
|
||
Qualified statutory capital
|
|
449.8
|
|
|
449.6
|
|
||
Net unearned statutory premiums
|
|
16.1
|
|
|
12.5
|
|
||
Present value of future installment premiums
|
|
3.2
|
|
|
2.6
|
|
||
Collateral trusts
|
|
148.1
|
|
|
136.6
|
|
||
Claims paying resources
|
|
$
|
617.2
|
|
|
$
|
601.3
|
|
|
|
June 30, 2017
|
||||||||||||||
Millions
|
|
HG Global
|
|
BAM
|
|
Eliminations and Segment Adjustment
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity investments
|
|
$
|
174.1
|
|
|
$
|
467.5
|
|
|
$
|
—
|
|
|
$
|
641.6
|
|
Short-term investments
|
|
7.3
|
|
|
16.8
|
|
|
—
|
|
|
24.1
|
|
||||
Total investments
|
|
181.4
|
|
|
484.3
|
|
|
—
|
|
|
665.7
|
|
||||
Cash
|
|
1.2
|
|
|
14.3
|
|
|
—
|
|
|
15.5
|
|
||||
BAM Surplus Notes
|
|
503.0
|
|
|
—
|
|
|
(503.0
|
)
|
|
—
|
|
||||
Accrued interest receivable on BAM Surplus Notes
|
|
117.5
|
|
|
—
|
|
|
(117.5
|
)
|
|
—
|
|
||||
Other assets
|
|
20.4
|
|
|
7.0
|
|
|
(3.7
|
)
|
|
23.7
|
|
||||
Total assets
|
|
$
|
823.5
|
|
|
$
|
505.6
|
|
|
$
|
(624.2
|
)
|
|
$
|
704.9
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
BAM Surplus Notes
(1)
|
|
$
|
—
|
|
|
$
|
503.0
|
|
|
$
|
(503.0
|
)
|
|
$
|
—
|
|
Accrued interest payable on BAM Surplus Notes
(2)
|
|
—
|
|
|
117.5
|
|
|
(117.5
|
)
|
|
—
|
|
||||
Preferred dividends payable to White Mountains’s subsidiaries
(3)
|
|
203.7
|
|
|
—
|
|
|
—
|
|
|
203.7
|
|
||||
Preferred dividends payable to non-controlling interests
|
|
6.9
|
|
|
—
|
|
|
—
|
|
|
6.9
|
|
||||
Other liabilities
|
|
84.6
|
|
|
44.8
|
|
|
(3.7
|
)
|
|
125.7
|
|
||||
Total liabilities
|
|
295.2
|
|
|
665.3
|
|
|
(624.2
|
)
|
|
336.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Equity
|
|
|
|
|
|
|
|
|
||||||||
White Mountains’s common shareholders’ equity
|
|
512.0
|
|
|
—
|
|
|
—
|
|
|
512.0
|
|
||||
Non-controlling interests
|
|
16.3
|
|
|
(159.7
|
)
|
|
—
|
|
|
(143.4
|
)
|
||||
Total equity
|
|
528.3
|
|
|
(159.7
|
)
|
|
—
|
|
|
368.6
|
|
||||
Total liabilities and equity
|
|
$
|
823.5
|
|
|
$
|
505.6
|
|
|
$
|
(624.2
|
)
|
|
$
|
704.9
|
|
|
|
December 31, 2016
|
||||||||||||||
Millions
|
|
HG Global
|
|
BAM
|
|
Eliminations and Segment Adjustment
|
|
Total Segment
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity investments
|
|
$
|
155.2
|
|
|
$
|
430.0
|
|
|
$
|
—
|
|
|
$
|
585.2
|
|
Short-term investments
|
|
6.4
|
|
|
38.1
|
|
|
—
|
|
|
44.5
|
|
||||
Total investments
|
|
161.6
|
|
|
468.1
|
|
|
—
|
|
|
629.7
|
|
||||
Cash
|
|
1.9
|
|
|
25.1
|
|
|
—
|
|
|
27.0
|
|
||||
BAM Surplus Notes
|
|
503.0
|
|
|
—
|
|
|
(503.0
|
)
|
|
—
|
|
||||
Accrued interest receivable on BAM Surplus Notes
|
|
108.0
|
|
|
—
|
|
|
(108.0
|
)
|
|
—
|
|
||||
Other assets
|
|
12.5
|
|
|
39.9
|
|
|
(1.0
|
)
|
|
51.4
|
|
||||
Total assets
|
|
$
|
787.0
|
|
|
$
|
533.1
|
|
|
$
|
(612.0
|
)
|
|
$
|
708.1
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
BAM Surplus Notes
(1)
|
|
$
|
—
|
|
|
$
|
503.0
|
|
|
$
|
(503.0
|
)
|
|
$
|
—
|
|
Accrued interest payable on BAM Surplus Notes
(2)
|
|
—
|
|
|
108.0
|
|
|
(108.0
|
)
|
|
—
|
|
||||
Preferred dividends payable to White Mountains’s subsidiaries
(3)
|
|
180.5
|
|
|
—
|
|
|
—
|
|
|
180.5
|
|
||||
Preferred dividends payable to non-controlling interests
|
|
5.7
|
|
|
—
|
|
|
—
|
|
|
5.7
|
|
||||
Other liabilities
|
|
61.4
|
|
|
73.0
|
|
|
(1.0
|
)
|
|
133.4
|
|
||||
Total liabilities
|
|
247.6
|
|
|
684.0
|
|
|
(612.0
|
)
|
|
319.6
|
|
||||
Equity
|
|
|
|
|
|
|
|
|
||||||||
White Mountains’s common shareholders’ equity
|
|
522.8
|
|
|
—
|
|
|
—
|
|
|
522.8
|
|
||||
Non-controlling interests
|
|
16.6
|
|
|
(150.9
|
)
|
|
—
|
|
|
(134.3
|
)
|
||||
Total equity
|
|
539.4
|
|
|
(150.9
|
)
|
|
—
|
|
|
388.5
|
|
||||
Total liabilities and equity
|
|
$
|
787.0
|
|
|
$
|
533.1
|
|
|
$
|
(612.0
|
)
|
|
$
|
708.1
|
|
(1)
|
Under GAAP, the BAM Surplus Notes are classified as debt by the issuer. Under U.S. Statutory accounting, they are classified as Surplus.
|
(2)
|
Under GAAP, interest accrues daily on the BAM Surplus Notes. Under U.S. Statutory accounting, interest is not accrued on the BAM Surplus Notes until it has been approved for payment by insurance regulators.
|
(3)
|
Dividends on HG Global preferred shares payable to White Mountains's subsidiaries are eliminated in White Mountains's consolidated financial statements.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
Millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Gross par value of primary market policies issued
|
|
$
|
2,574.3
|
|
|
$
|
3,083.6
|
|
|
$
|
4,615.3
|
|
|
$
|
5,180.4
|
|
Gross par value of secondary market policies issued
|
|
118.6
|
|
|
255.7
|
|
|
456.7
|
|
|
337.5
|
|
||||
Total gross par value of policies issued
|
|
2,692.9
|
|
|
3,339.3
|
|
|
5,072.0
|
|
|
5,517.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Gross par value of policies priced yet to close
|
|
163.7
|
|
|
861.7
|
|
|
163.7
|
|
|
861.7
|
|
||||
Less: Gross par value of policies closed that were previously priced
|
|
(328.4
|
)
|
|
(724.5
|
)
|
|
(353.3
|
)
|
|
(298.6
|
)
|
||||
Total gross par value of policies priced
|
|
$
|
2,528.2
|
|
|
$
|
3,476.5
|
|
|
$
|
4,882.4
|
|
|
$
|
6,081.0
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Million
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Advertising and commission revenues
|
|
$
|
30.8
|
|
|
$
|
28.1
|
|
|
$
|
63.3
|
|
|
$
|
60.8
|
|
Cost of sales
|
|
26.1
|
|
|
23.3
|
|
|
53.8
|
|
|
51.0
|
|
||||
Gross profit
|
|
4.7
|
|
|
4.8
|
|
|
9.5
|
|
|
9.8
|
|
||||
General and administrative expenses—other
|
|
3.7
|
|
|
2.7
|
|
|
6.9
|
|
|
5.5
|
|
||||
General and administrative expenses—amortization of intangible assets
|
|
2.5
|
|
|
2.6
|
|
|
4.9
|
|
|
5.1
|
|
||||
Interest expense
|
|
.3
|
|
|
.2
|
|
|
.5
|
|
|
.5
|
|
||||
GAAP pre-tax loss
|
|
(1.8
|
)
|
|
(.7
|
)
|
|
(2.8
|
)
|
|
(1.3
|
)
|
||||
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
GAAP net loss
|
|
(1.8
|
)
|
|
(.7
|
)
|
|
(2.8
|
)
|
|
(1.3
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Add back:
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
.3
|
|
|
.2
|
|
|
.5
|
|
|
.5
|
|
||||
Income tax expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
General and administrative expenses—depreciation
|
|
.1
|
|
|
.1
|
|
|
.1
|
|
|
.1
|
|
||||
General and administrative expenses—amortization of intangible assets
|
|
2.5
|
|
|
2.6
|
|
|
4.9
|
|
|
5.1
|
|
||||
EBITDA
|
|
$
|
1.1
|
|
|
$
|
2.2
|
|
|
$
|
2.7
|
|
|
$
|
4.4
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
Millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Earned insurance premiums
|
|
$
|
—
|
|
|
$
|
1.9
|
|
|
$
|
1.0
|
|
|
$
|
4.2
|
|
Net investment income
|
|
11.7
|
|
|
3.8
|
|
|
21.9
|
|
|
4.2
|
|
||||
Net realized and unrealized investment gains (losses)
|
|
32.6
|
|
|
(.3
|
)
|
|
67.6
|
|
|
5.6
|
|
||||
Advertising and commission revenues
|
|
2.4
|
|
|
1.1
|
|
|
8.4
|
|
|
2.2
|
|
||||
Other revenues
|
|
1.4
|
|
|
6.9
|
|
|
3.9
|
|
|
12.9
|
|
||||
Total revenues
|
|
48.1
|
|
|
13.4
|
|
|
102.8
|
|
|
29.1
|
|
||||
Loss and loss adjustment expenses
|
|
—
|
|
|
2.3
|
|
|
1.1
|
|
|
4.6
|
|
||||
Insurance acquisition expenses
|
|
—
|
|
|
.6
|
|
|
.1
|
|
|
1.4
|
|
||||
Cost of sales
|
|
.7
|
|
|
1.1
|
|
|
1.8
|
|
|
1.9
|
|
||||
General and administrative expenses—other
|
|
40.9
|
|
|
29.6
|
|
|
84.9
|
|
|
69.0
|
|
||||
General and administrative expenses—amortization of intangible assets
|
|
.1
|
|
|
.4
|
|
|
.3
|
|
|
.7
|
|
||||
Interest expense
|
|
.2
|
|
|
.7
|
|
|
.4
|
|
|
1.6
|
|
||||
Total expenses
|
|
41.9
|
|
|
34.7
|
|
|
88.6
|
|
|
79.2
|
|
||||
Pre-tax income (loss)
|
|
$
|
6.2
|
|
|
$
|
(21.3
|
)
|
|
$
|
14.2
|
|
|
$
|
(50.1
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Short-term investments
|
|
0.2
|
%
|
|
0.1
|
%
|
|
0.3
|
%
|
|
0.6
|
%
|
Investment grade fixed maturity investments
|
|
1.0
|
%
|
|
0.9
|
%
|
|
1.9
|
%
|
|
2.6
|
%
|
High-yield fixed maturity investments
|
|
3.0
|
%
|
|
N/A
|
|
|
5.2
|
%
|
|
N/A
|
|
Total GAAP fixed income investments
|
|
1.1
|
%
|
|
0.8
|
%
|
|
2.1
|
%
|
|
2.4
|
%
|
Total fixed income investments, excluding high-yield fixed maturity investments:
|
|
1.0
|
%
|
|
0.8
|
%
|
|
1.8
|
%
|
|
2.4
|
%
|
Bloomberg Barclays U.S. Intermediate Aggregate Index
|
|
0.9
|
%
|
|
1.4
|
%
|
|
1.6
|
%
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
||||
Common equity securities
|
|
4.2
|
%
|
|
(0.7
|
)%
|
|
9.6
|
%
|
|
2.0
|
%
|
Other long-term investments
|
|
(1.4
|
)%
|
|
3.9
|
%
|
|
(0.5
|
)%
|
|
3.9
|
%
|
Total GAAP common equity securities and other long-term investments
|
|
2.5
|
%
|
|
1.1
|
%
|
|
6.3
|
%
|
|
2.6
|
%
|
Total common equity securities, other long-term investments and high-yield fixed
maturity investments
|
|
2.6
|
%
|
|
1.1
|
%
|
|
6.0
|
%
|
|
2.6
|
%
|
S&P 500 Index
|
|
3.1
|
%
|
|
2.5
|
%
|
|
9.3
|
%
|
|
3.8
|
%
|
Bloomberg Barclays U.S. High Yield Ba 2% Issuer Capped (minus Energy & Financials)
|
|
2.7
|
%
|
|
N/A
|
|
|
4.7
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
||||
Total consolidated portfolio
|
|
1.4
|
%
|
|
0.8
|
%
|
|
2.9
|
%
|
|
2.4
|
%
|
$ in millions
|
|
|
|
Fair Value of Investment Portfolio
|
|
Gross Foreign Currency Forward Contract Exposure
|
||||
Investment Mandate
|
|
Currency
|
|
(in USD)
|
|
(in USD)
|
||||
LGIM
|
|
GBP
|
|
$
|
262.8
|
|
|
$
|
(260.5
|
)
|
Lazard
|
|
EUR
|
|
60.4
|
|
|
(62.2
|
)
|
||
|
|
Totals
|
$
|
323.2
|
|
|
$
|
(322.7
|
)
|
($ in millions)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
WTM Bank Facility
|
|
$
|
—
|
|
|
$
|
—
|
|
MediaAlpha Bank Facility, carrying value
|
|
10.6
|
|
|
—
|
|
||
Previous MediaAlpha Bank Facility, carrying value
|
|
—
|
|
|
12.7
|
|
||
Total debt in continuing operations
|
|
10.6
|
|
|
12.7
|
|
||
Debt included in discontinued operations
|
|
273.3
|
|
|
273.2
|
|
||
Total debt
|
|
283.9
|
|
|
285.9
|
|
||
Non-controlling interest—OneBeacon Ltd.
|
|
247.0
|
|
|
244.6
|
|
||
Non-controlling interests—other, excluding mutuals and reciprocals
|
|
29.5
|
|
|
35.8
|
|
||
Total White Mountains’s common shareholders’ equity
|
|
3,647.3
|
|
|
3,603.3
|
|
||
Total capital
|
|
4,207.7
|
|
|
4,169.6
|
|
||
Time-value discount on expected future payments on the BAM Surplus Notes
(1)
|
|
(166.7
|
)
|
|
—
|
|
||
HG Global’s unearned premium reserve
(1)
|
|
81.5
|
|
|
—
|
|
||
HG Global’s net deferred acquisition costs
(1)
|
|
(17.6
|
)
|
|
—
|
|
||
Total adjusted capital
|
|
$
|
4,104.9
|
|
|
$
|
4,169.6
|
|
|
|
|
|
|
||||
Total debt to total adjusted capital
|
|
7
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
Average price per share as % of
|
|||||||||
Dates
|
|
Shares Repurchased
|
|
Cost (millions)
|
|
Average price per share
|
|
Adjusted book value per share
(1)
|
|
Adjusted book value per share, including estimated
transaction gains
(2)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
1st quarter 2017
|
|
7,699
|
|
|
$
|
6.4
|
|
|
$
|
836.05
|
|
|
105
|
%
|
|
N/A
|
|
2nd quarter 2017
|
|
3,184
|
|
|
2.8
|
|
|
869.70
|
|
|
112
|
%
|
|
97
|
%
|
||
Year-to-date June 30, 2017
|
|
10,883
|
|
|
9.2
|
|
|
845.89
|
|
|
108
|
%
|
|
94
|
%
|
||
July 2017
|
|
235,000
|
|
|
199.8
|
|
|
850.00
|
|
|
109
|
%
|
|
95
|
%
|
||
Year-to-date July 31, 2017
(3)
|
|
245,883
|
|
|
$
|
209.0
|
|
|
$
|
849.82
|
|
|
109
|
%
|
|
95
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
1st quarter 2016
|
|
228,688
|
|
|
$
|
172.7
|
|
|
$
|
755.36
|
|
|
107
|
%
|
|
95
|
%
|
2nd quarter 2016
|
|
463,276
|
|
|
374.7
|
|
|
808.76
|
|
|
103
|
%
|
|
101
|
%
|
||
Year-to-date June 30, 2016
|
|
691,964
|
|
|
547.4
|
|
|
791.11
|
|
|
101
|
%
|
|
99
|
%
|
||
July 2016
|
|
32,983
|
|
|
27.0
|
|
|
819.67
|
|
|
104
|
%
|
|
102
|
%
|
||
Year-to-date July 31, 2016
(3)
|
|
724,947
|
|
|
$
|
574.4
|
|
|
$
|
792.41
|
|
|
101
|
%
|
|
99
|
%
|
•
|
Adjusted book value per share is a non-GAAP financial measure, which is derived by adjusting the GAAP book value per share numerator to (i) include a discount for the time value of money on the BAM Surplus Notes and (ii) add back the unearned premium reserve, net of deferred acquisition costs, at HG Global. In addition, the number of common shares outstanding used in the calculation of adjusted book value per share are adjusted to exclude unearned restricted common shares, the compensation cost of which, at the date of calculation, has yet to be amortized. The calculation of adjusted book value per share also includes the dilutive effects of outstanding non-qualified options for periods prior to January 20, 2017, the expiration date of the non-qualified options.
|
•
|
T
he growth in adjusted book value per share included on page 45 includes the estimated gain from the OneBeacon Transaction and excludes the impact of the new adjustments related to HG Global/BAM. A reconciliation from GAAP to the reported percentage is as follows:
|
|
|
As of
June 30, 2017
|
|
As of
March 31, 2017
|
|
Growth %
|
||||||
GAAP book value per share
|
|
$
|
797.80
|
|
|
|
$
|
792.77
|
|
|
0.6
|
%
|
Adjustments to book value per share (see reconciliation on page 47)
|
|
(17.80
|
)
|
|
|
6.06
|
|
|
|
|||
Adjusted book value per share
|
|
780.00
|
|
|
|
798.83
|
|
|
-2.4
|
%
|
||
Estimated gain from OneBeacon Transaction
|
|
116.00
|
|
|
|
107.00
|
|
|
|
|||
Adjusted book value per share including the
estimated gain from the OneBeacon Transaction
|
|
896.00
|
|
|
|
905.83
|
|
|
-1.1
|
%
|
||
Reverse new adjustments related to HG Global/BAM (see page 47)
|
|
22.62
|
|
|
|
N/A
|
|
|
||||
Adjusted book value per share including the estimated
gain from the OneBeacon Transaction and excluding
the new adjustments related to HG Global/BAM
|
|
$
|
918.62
|
|
|
|
$
|
905.83
|
|
|
1.4
|
%
|
•
|
Total capital at White Mountains is comprised of White Mountains’s common shareholders’ equity, debt and non-controlling interests other than non-controlling interests attributable to mutuals and reciprocals. Total adjusted capital is a non-GAAP financial measure, which is derived by adjusting total capital to (i) include a discount for the time value of money on the BAM Surplus Notes and (ii) add back the unearned premium reserve, net of deferred acquisition costs, at HG Global. The reconciliation of total capital to total adjusted capital is included on page 62.
|
•
|
In the third quarter of 2016, White Mountains purchased high-yield fixed maturity investments, which are U.S. dollar denominated publicly traded and 144A debt securities issued by corporations with generally at least one rating between “B-” and “BB+” inclusive by S&P or similar ratings from other rating agencies. Given the risk profile of these investments, the returns on high-yield fixed maturity investments have been included with the returns on common equity securities and other long-term investments and excluded from the returns on fixed income investments. A reconciliation of GAAP returns to the reported returns are as follows:
|
|
|
June 30, 2017
|
||||||||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
|
GAAP return
|
|
Impact of high-yield fixed maturity investments
(1)
|
|
Reported return
|
|
GAAP return
|
|
Impact of high-yield fixed maturity investments
(1)
|
|
Reported return
|
||||||||||||
Common equity securities and other long-term investment returns
|
|
2.5
|
|
%
|
|
0.1
|
|
%
|
|
2.6
|
|
%
|
|
6.3
|
|
%
|
|
(0.3
|
)
|
%
|
|
6.0
|
|
%
|
Fixed income investment returns
|
|
1.1
|
|
%
|
|
(0.1
|
)
|
%
|
|
1.0
|
|
%
|
|
2.1
|
|
%
|
|
(0.3
|
)
|
%
|
|
1.8
|
|
%
|
•
|
In the second quarter of 2017, MediaAlpha became a reportable segment, and White Mountains has included MediaAlpha’s EBITDA calculation as a non-GAAP financial measure. EBITDA is defined as net income (loss) excluding interest expense on debt, income tax benefit (expense), depreciation and amortization. White Mountains believes that this non-GAAP financial measure is useful to management and investors in analyzing MediaAlpha’s economic performance without the effects of interest rates, levels of debt, effective tax rates, depreciation and amortization resulting from purchase accounting. In addition, White Mountains believes that investors use EBITDA as a supplemental measurement to evaluate the overall operating performance of companies within the same industry. See page 55 for the reconciliation of MediaAlpha’s GAAP net income to EBITDA.
|
•
|
changes in 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, dividends, market share or other financial forecasts;
|
•
|
expansion and growth of its business and operations; and
|
•
|
future capital expenditures.
|
•
|
the risk that OneBeacon’s proposed merger with Intact Financial Corporation (the “Transaction”) may not be completed on the currently contemplated timeline or at all;
|
•
|
the possibility that any or all of the various conditions to the consummation of the Transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals);
|
•
|
the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement dated May 2, 2017, among OneBeacon, Intact Financial Corporation and the other parties thereto (the “Merger Agreement”), including in circumstances which would require OneBeacon to pay a termination fee or other expenses;
|
•
|
risks related to diverting management’s attention from White Mountains’s or OneBeacon’s ongoing business operations and other risks related to the announcement or pendency of the Transaction, including on White Mountains’s or OneBeacon’s ability to retain and hire key personnel, their ability to maintain relationships with their customers, policyholders, brokers, service providers and others with whom they do business and their operating results and business generally;
|
•
|
the risk that shareholder litigation in connection with the transactions contemplated by the Merger Agreement may result in significant costs of defense, indemnification and liability;
|
•
|
the risks associated with Item 1A of White Mountains’s 2016 Annual Report on Form 10-K;
|
•
|
claims arising from catastrophic events, such as hurricanes, earthquakes, floods, fires, terrorist attacks or severe winter weather;
|
•
|
the continued availability of capital and financing;
|
•
|
general economic, market or business conditions;
|
•
|
business opportunities (or lack thereof) that may be presented to it and pursued;
|
•
|
competitive forces, including the conduct of other property and casualty insurers and reinsurers;
|
•
|
changes in domestic or foreign laws or regulations, or their interpretation, applicable to White Mountains, its competitors or its customers;
|
•
|
an economic downturn or other economic conditions adversely affecting its financial position;
|
•
|
recorded loss reserves subsequently proving to have been inadequate;
|
•
|
actions taken by ratings agencies from time to time, such as financial strength or credit ratings downgrades or placing ratings on negative watch; and
|
•
|
other factors, most of which are beyond White Mountains’s control.
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures
.
|
Part II.
|
OTHER INFORMATION
|
Item 1.
|
Legal Proceedings
.
|
Item 2.
|
Issuer Purchases of Equity Securities.
|
Months
|
|
Total Number of
Shares Purchased
|
|
Average Price
Paid per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced Plan
(1)
|
|
Maximum Number
of Shares that May
Yet Be Purchased
Under the Plan
(1)
|
|||||
April 1-April 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
878,130
|
|
May 1-May 31, 2017
|
|
3,184
|
|
|
$
|
869.70
|
|
|
—
|
|
|
878,130
|
|
June 1-June 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
878,130
|
|
Total
|
|
3,184
|
|
|
$
|
869.70
|
|
|
—
|
|
|
878,130
|
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Other Information
.
|
Item 6.
|
Exhibits
.
|
(a)
|
|
Exhibit number
|
|
|
|
Name
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
—
|
|
|
|
|
|
10.2
|
|
—
|
|
|
|
|
|
11
|
|
—
|
|
|
|
|
|
31.1
|
|
—
|
|
|
|
|
|
31.2
|
|
—
|
|
|
|
|
|
32.1
|
|
—
|
|
|
|
|
|
32.2
|
|
—
|
|
|
|
|
|
101
|
|
—
|
|
|
The following financial information from White Mountains’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 formatted in XBRL: (i) Consolidated Balance Sheets, June 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Operations and Comprehensive Income, Three and Six Months Ended June 30, 2017 and 2016; (iii) Consolidated Statements of Changes in Equity, Six Months Ended June 30, 2017 and 2016; (iv) Consolidated Statements of Cash Flows, Six Months Ended June 30, 2017 and 2016; and (v) Notes to Consolidated Financial Statements. *
|
*
|
Included herein
|
**
|
Not included as an exhibit as the information is contained elsewhere within this report. See
Note 9 — “Earnings Per Share”
of the Notes to Consolidated Financial Statements.
|
|
|
|
WHITE MOUNTAINS INSURANCE GROUP, LTD.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date:
|
August 4, 2017
|
|
|
By: /s/ J. Brian Palmer
|
|
|
|
|
J. Brian Palmer
|
|
|
|
|
Managing Director and Chief Accounting Officer
|
1 Year White Moutains Insurance Chart |
1 Month White Moutains Insurance Chart |
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