Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Summary of the fair value and carrying value of financial instruments

The following table summarizes the fair value and carrying value of these financial instruments as of September 30, 2015 and December 31, 2014:

	September 30, 2015				December 31, 2014
Millions	Fair Value		Carrying Value		Fair Value		Carrying Value
2012 OBH Senior Notes	$	279.8	$	274.8	$	286.0	$	274.7
Tranzact Bank Facility	94.6		93.8		68.7		67.4

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet And Additional Disclosures

Summary of Reclassified Balances and Related Items

Net Assets Held for Sale

The following summarizes the assets and liabilities associated with the business classified as held for sale, which all relate to Sirius Group with the exception of the building held by OneBeacon at December 31, 2014:

Millions	September 30, 2015		December 31, 2014
Assets held for sale
Fixed maturity investments	$	2,394.3	$	2,362.3
Short-term investments	360.5		494.9
Common equity securities	164.3		189.9
Convertible fixed maturity and preferred investments	—		6.6
Other long-term investments	82.1		89.0
Total investments	3,001.2		3,142.7
Cash	147.4		111.5
Reinsurance recoverable on unpaid losses	276.5		322.2
Reinsurance recoverable on paid losses	11.0		11.4
Reinsurance premiums receivable	416.6		306.6
Funds held by ceding entities	81.1		91.9
Deferred acquisition costs	82.7		69.9
Deferred tax asset	309.6		341.5
Ceded unearned reinsurance premiums	118.4		76.2
Goodwill and intangible assets	10.2		15.2
Other assets	73.4		83.4
Other assets - OneBeacon building	—		58.1
Total assets held for sale	$	4,528.1	$	4,630.6
Liabilities held for sale
Loss and loss adjustment expense reserves	$	1,662.9	$	1,809.8
Unearned insurance premiums	429.4		338.6
Debt	403.5		403.5
Deferred tax liability	257.8		282.8
Accrued incentive compensation	55.5		76.5
Ceded reinsurance payable	131.4		71.5
Funds held under reinsurance treaties	45.1		57.9
Other liabilities	47.2		64.7
Total liabilities held for sale	$	3,032.8	$	3,105.3

Net Income from Discontinued Operations

The following summarizes the results of operations, including related income taxes associated with the business classified as discontinued operations. The results of Sirius Group through the closing date of the transaction inures to White Mountains.

	Three Months Ended									Three Months Ended
	September 30, 2015									September 30, 2014
Millions	Sirius Group			Other Disc Ops			Total			Sirius Group			Other Disc Ops			Total
Revenues
Earned insurance premiums	$	202.8		$	—		$	202.8		$	231.4		$	.3		$	231.7
Net investment income	10.5			—			10.5			9.7			—			9.7
Net realized and unrealized (losses) gains	(.9		)	—			(.9		)	48.3			—			48.3
Other revenue	1.8			(.1		)	1.7			(22.8		)	—			—
Total revenues	214.2			(.1		)	214.2			266.6			.3			266.9
Expenses
Loss and loss adjustment expenses	121.7			—			121.7			103.6			—			103.6
Insurance and reinsurance acquisition expenses	45.4			—			45.4			50.1			.1			50.2
Other underwriting expenses	24.8			—			24.8			29.7			.8			30.5
General and administrative expenses	9.4			—			9.4			6.3			—			6.3
Interest expense	6.6			—			6.6			6.6			—			6.6
Total expenses	207.9			—			207.9			196.3			.9			197.2
Pre-tax income (loss)	6.3			(.1		)	6.2			70.3			(.6		)	69.7
Income tax (expense) benefit	(2.3		)	—			(2.3		)	(13.1		)	.3			(12.8		)
Net income (loss) from discontinued operations	4.0			(.1		)	3.9			57.2			(.3		)	56.9
Net gain from sales of discontinued operations - FFIC	—			—			—			—			14.0			14.0
Net losses from sales of discontinued operations - OneBeacon	—			—			—			—			(7.0		)	(7.0		)
Net gain from sales of discontinued operations - Esurance	—			10.3			10.3			—			—			—
Total income from discontinued operations	$	4.0		$	10.2		$	14.2		$	57.2		$	6.7		$	63.9
Change in foreign currency translation and other    from discontinued operations	$	(18.4	)	$	—		$	(18.4	)	$	(64.1	)	$	—		$	(64.1	)
Comprehensive income from discontinued    operations	$	(14.4	)	$	10.2		$	(4.2	)	$	(6.9	)	$	6.7		$	(.2	)

	Nine Months Ended									Nine Months Ended
	September 30, 2015									September 30, 2014
Millions	Sirius Group			Other Disc Ops			Total			Sirius Group			Other Disc Ops			Total
Revenues
Earned insurance premiums	$	623.3		$	—		$	623.3		$	656.5		$	.1		$	656.6
Net investment income	28.6			—			28.6			30.0			—			30.0
Net realized and unrealized gains	31.4			—			31.4			134.1			—			134.1
Other revenue	(20.2		)	(.4		)	(20.6		)	(47.3		)	—			(47.3		)
Total revenues	663.1			(.4		)	662.7			773.3			.1			773.4
Expenses
Loss and loss adjustment expenses	311.3			—			311.3			273.8			(.7		)	$	273.1
Insurance and reinsurance acquisition expenses	135.5			—			135.5			146.3			.1			$	146.4
Other underwriting expenses	78.0			—			78.0			91.7			2.2			$	93.9
General and administrative expenses	22.4			—			22.4			21.6			—			$	21.6
Interest expense	20.0			—			20.0			19.8			—			$	19.8
Total expenses	567.2			—			567.2			553.2			1.6			554.8
Pre-tax income (loss)	95.9			(.4		)	95.5			220.1			(1.5		)	218.6
Income tax (expense) benefit	(22.2		)	—			(22.2		)	(52.4		)	.6			$	(51.8	)
Net income (loss) from discontinued operations	73.7			(.4		)	73.3			167.7			(.9		)	166.8
Net gain from sales of discontinued operations - FFIC	—			—			—			—			14.0			$	14.0
Net losses from sales of discontinued operations - OneBeacon	—			.3			.3			—			(7.5		)	$	(7.5	)
Net gain from sales of discontinued operations - Esurance	—			17.9			17.9			—			3.2			$	3.2
Total income from discontinued operations	$	73.7		$	17.8		$	91.5		$	167.7		$	8.8		$	176.5
Change in foreign currency translation and other    from discontinued operations	$	(62.1	)	$	—		$	(62.1	)	$	(99.9	)	$	—		$	(99.9	)
Comprehensive income from discontinued    operations	$	11.6		$	17.8		$	29.4		$	67.8		$	8.8		$	76.6

Net Change in Cash from Discontinued Operations

The following summarizes the net change in cash, including income tax (payment to) refund from national governments and interest paid associated with the business classified as discontinued operations:

	Nine Months Ended
	September 30,
(Millions)	2015			2014
Net cash provided from operations	$	6.7		$	49.8
Net cash provided from investing activities	35.7			47.5
Net cash used for financing activities	(2.4		)	(55.6		)
Effect of exchange rate changes on cash	(4.1		)	(10.6		)
Net change in cash during the period	35.9			31.1
Cash balances at beginning of period	111.5			93.2
Cash balances at end of period	$	147.4		$	124.3
Supplemental cash flows information:
Interest paid	$	(25.5	)	$	(34.9	)
Net income tax (payment to) refund from national governments	$	(30.3	)	$	7.5

Earnings Per Share

Basic earnings per share amounts are based on the weighted average number of common shares outstanding including unvested restricted shares that are considered participating securities.  Diluted earnings per share amounts are based on the weighted average number of common shares including unvested restricted shares and the net effect of potentially dilutive common shares outstanding. The following table outlines the computation of earnings per share for discontinued operations for the three and nine months endedSeptember 30, 2015 and 2014:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Basic and diluted earnings per share numerators (in millions):
Net income attributable to White Mountains’s common shareholders	$	14.2		$	63.9		$	91.5		$	176.5
Allocation of income for participating unvested restricted common shares(1)	(.2		)	(.9		)	(1.0		)	(2.2		)
Net income attributable to White Mountains’s common shareholders,    net of restricted common share amounts (2)	$	14.0		$	63.0		$	90.5		$	174.3
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period	5,890.1			6,091.4			5,951.1			6,140.9
Average unvested restricted common shares(3)	(70.9		)	(81.3		)	(67.1		)	(77.7		)
Basic earnings per share denominator	5,819.2			6,010.1			5,884.0			6,063.2
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period	5,890.1			6,091.4			5,951.1			6,140.9
Average unvested restricted common shares(3)	(70.9		)	(81.3		)	(67.1		)	(77.7		)
Average outstanding dilutive options to acquire common shares(4)	—			—			—			—
Diluted earnings per share denominator	5,819.2			6,010.1			5,884.0			6,063.2
Basic and diluted earnings per share (in dollars):	$	2.41		$	10.49		$	15.37		$	28.74

⁽¹⁾ Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities.

⁽²⁾ Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the three and nine months endedSeptember 30, 2015 and 2014.

⁽³⁾ Restricted common shares outstanding vest either in equal annual installments or upon a stated date. (See Note 15 - “Employee Share-Based Compensation Plans”).

⁽⁴⁾ The diluted earnings per share denominator for the three and nine months endedSeptember 30, 2015 and 2014 does not include the impact of 125,000 common shares issuable upon exercise of the non-qualified options outstanding as they are anti-dilutive to the calculation.

Interest Rate Cap [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Fair Value of Assets and Liabilities Measured on Recurring and Non-recurring Basis Table

The following tables summarize the changes in the fair value of the Interest Rate Cap for the three and nine months endedSeptember 30, 2015 and 2014:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Millions	2015			2014			2015			2014
Beginning of period	$	3.3		$	6.2		$	4.1		$	11.1
Net realized and unrealized losses	(1.1		)	(.8		)	(1.9		)	(5.7		)
End of period	$	2.2		$	5.4		$	2.2		$	5.4

Discontinued Operations [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Summary of the fair value and carrying value of financial instruments

The following table summarizes the fair value and carrying value of these financial instruments as of September 30, 2015 and December 31, 2014:

	September 30, 2015				December 31, 2014
Millions	Fair Value		Carrying Value		Fair Value		Carrying Value
SIG Senior Notes	$	423.6	$	399.8	$	437.8	$	399.7
SIG Preference Shares	252.5		250.0		260.0		250.0