Note 19. Subsequent Events

Sale of Sirius Group

On July 27, 2015, White Mountains announced it signed a definitive agreement to sell Sirius Group to CM International Holding PTE Ltd., the Singapore-based investment arm of China Minsheng Investment Corp., Ltd. (“CMI”). The purchase price will be paid in cash in an amount equal to 127.3% of Sirius’s closing date tangible common shareholder’s equity plus $10.0 million. Based on Sirius's tangible common shareholder's equity at December 31, 2014, the purchase price would be $2.2 billion. White Mountains has the option to replenish Sirius’s tangible common shareholder’s equity to its December 31, 2014 level should it be below that level at closing. The transaction is expected to close within six months. It is subject to regulatory approval and other customary closing conditions.

In connection with the transaction, White Mountains caused Sirius Group to purchase several industry loss warranty (“ILW”) contracts to augment its overall retrocessional program in order to reduce the risk of loss from major catastrophes subsequent to the signing of the definitive agreement to sell Sirius Group. The cost and potential economic benefit provided by the coverage under the ILWs inures to White Mountains. The majority of the contracts expire in May or June of 2016. The following summarizes the ILW contracts in force:



Scope	Limit	Industry Loss Trigger
United States first event	$75.0 million	$40.0 billion
United States first event	$22.5 million	$50.0 billion
United States second event	$45.0 million	$15.0 billion
Japan first event	$25.0 million	$12.5 billion

OneBeacon Crop Business

On July 31, 2015, OneBeacon exited its multiple peril crop insurance (“MPCI”) and its related crop-hail businesses (collectively, “Crop Business”), due to the sale of its exclusive partner, Climate Crop Insurance Agency, to an affiliate of AmTrust Financial Services (“AmTrust”). As a result of the sale, OneBeacon and Climate Crop Insurance Agency agreed to terminate the existing 5 year agreement early and OneBeacon received a payment of $3.0 million in consideration. Also related to the sale, OneBeacon has withdrawn its 2016 Plan of Operations from the Federal Crop Insurance Corporation, which previously authorized it to write MPCI for the 2016 Reinsurance Year (July 1, 2015 to June 30, 2016) and affiliates of AmTrust will reinsure OneBeacon's remaining net Crop Business exposure for the 2015 reinsurance year (July 1, 2014 to June 30, 2015) under related 100% quota share reinsurance agreements. During the six months ended June 30, 2015, OneBeacon recorded net written premiums related to the Crop business of $26.6 million and a net pre-tax underwriting loss $1.3 million (excluding allocated other underwriting expenses of $1.5 million). During the year ended December 31, 2014, OneBeacon recorded net written premiums related to the Crop business of $35.1 million and a net pre-tax underwriting loss of $3.5 million (excluding allocated other underwriting expenses of $1.0 million).