Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

White Mountains has determined that its reportable segments are OneBeacon, HG Global/BAM and Other Operations. As a result of the Sirius sale, the results of operations for Sirius Group have been classified as discontinued operations and are now presented as such, net of related income taxes, in the statement of operations and comprehensive income. Prior year amounts have been reclassified to conform to the current period’s presentation (See Note 22 - “Discontinued Operations”).

White Mountains has made its segment determination based on consideration of the following criteria: (i) the nature of the business activities of each of the Company’s subsidiaries and affiliates; (ii) the manner in which the Company’s subsidiaries and affiliates are organized; (iii) the existence of primary managers responsible for specific subsidiaries and affiliates; and (iv) the organization of information provided to the chief operating decision makers and the Board of Directors.

OneBeacon is a specialty property and casualty insurance writer that offers a wide range of insurance products through independent agencies, regional and national brokers, wholesalers and managing general agencies.

The HG Global/BAM segment consists of White Mountains’s investment in HG Global and the consolidated results of BAM. BAM is a municipal bond insurer domiciled in New York that was established to provide insurance on bonds issued to support essential U.S. public purposes such as schools, utilities, core governmental functions and existing transportation facilities. HG Global, together with its subsidiaries, provided the initial capitalization of BAM through the purchase of BAM Surplus Notes. HG Global also provides 15%-of-par, first loss reinsurance protection for policies underwritten by BAM. BAM's results are attributed to non-controlling interests.

Other Operations consists of the Company, the Company’s intermediate holding companies, WM Advisors, WM Life Re, Tranzact, Wobi, MediaAlpha, Star & Shield, SSIE, White Mountains’s investment in Symetra and various other entities and investments. Significant intercompany transactions among White Mountains’s segments have been eliminated herein. SSIE’s results are attributed to non-controlling interests.

Financial information for White Mountains’s segments follows:

				HG Global/BAM
Millions	OneBeacon			HG Global			BAM(1)			Other Operations			Total
Year Ended December 31, 2015
Earned insurance and reinsurance premiums	$	1,176.2		$	2.5		$	.8		$	8.7		$	1,188.2
Net investment income	45.9			1.9			4.2			8.8			60.8
Net investment income (loss) - surplus note interest	—			15.8			(15.8		)	—			—
Net realized and unrealized investment (losses) gains	(35.1		)	(.3		)	.9			259.9		(2)	225.4
Other (expense) revenue	(.6		)	—			.7			334.1		(4)	334.2
Total revenues (3)	1,186.4			19.9			(9.2		)	611.5			1,808.6
Losses and LAE	700.7			—			—			8.2			708.9
Insurance and reinsurance acquisition expenses	213.8			.6			2.3			3.4			220.1
Other underwriting expenses	218.2			—			.4			—			218.6
General and administrative expenses	14.1			1.4			35.4			408.0		(5)	458.9
Amortization of intangible assets	1.3			—			—			27.3			28.6
Interest expense	13.0			—			—			5.6			18.6
Total expenses	1,161.1			2.0			38.1			452.5			1,653.7
Pre-tax income (loss)	$	25.3		$	17.9		$	(47.3	)	$	159.0		$	154.9

			HG Global/BAM
Millions	OneBeacon		HG Global		BAM(1)			Other Operations				Total
Year Ended December 31, 2014
Earned insurance and reinsurance premiums	$	1,177.1	$	1.4	$	.4		$	6.1			$	1,185.0
Net investment income	43.4		1.4		5.7			9.0				59.5
Net investment income (loss) - surplus note interest	—		15.7		(15.7		)	—				—
Net realized and unrealized investment gains	40.4		1.7		6.6			29.8				78.5
Other revenue	5.8		—		.6			124.7			(4)	131.1
Total revenues(3)	1,266.7		20.2		(2.4		)	169.6				1,454.1
Losses and LAE	815.1		—		—			8.9				824.0
Insurance and reinsurance acquisition expenses	203.3		.3		1.8			.8				206.2
Other underwriting expenses	179.2		—		.4			—				179.6
General and administrative expenses	12.4		1.6		35.9			196.1				246.0
Amortization of intangible assets	1.4		—		—			10.3				11.7
Interest expense	13.0		—		—			2.6				15.6
Total expenses	1,224.4		1.9		38.1			218.7				1,483.1
Pre-tax income (loss)	$	42.3	$	18.3	$	(40.5	)	$	(49.1	)		$	(29.0	)

			HG Global/BAM
Millions	OneBeacon		HG Global			BAM(1)			Other Operations		Total
Year Ended December 31, 2013
Earned insurance and reinsurance premiums	$	1,120.4	$	.4		$	.1		$	—	$	1,120.9
Net investment income	43.0		1.0			4.7			11.1		59.8
Net investment income (loss) - surplus note interest	—		40.2			(40.2		)	—		—
Net realized and unrealized investment gains (losses)	49.4		(2.0		)	(9.3		)	95.8		133.9
Other revenue	31.2		—			.4			15.4		47.0
Total revenues(3)	1,244.0		39.6			(44.3		)	122.3		1,361.6
Losses and LAE	622.1		—			—			—		622.1
Insurance and reinsurance acquisition expenses	208.9		.1			1.4			—		210.4
Other underwriting expenses	204.8		—			.4			—		205.2
General and administrative expenses	10.6		1.4			32.5			103.2		147.7
Amortization of intangible assets	1.4		—			—			—		1.4
Interest expense	13.0		—			—			3.2		16.2
Total expenses	1,060.8		1.5			34.3			106.4		1,203.0
Pre-tax income (loss)	$	183.2	$	38.1		$	(78.6	)	$	15.9	$	158.6

⁽¹⁾  BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes surplus notes and is not reduced by accruals of interest expense on the surplus notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the New York Department of Financial Services.

⁽²⁾   Net realized and unrealized investment gains (losses) in the Other Operations segment includes the unrealized gain of $258.8 related to the investment in Symetra common shares, representing the difference between the carrying value under the equity method at November 5, 2015 and the fair value at December 31, 2015. (See Note 17 - “Investments in Unconsolidated Affiliates”).

⁽³⁾ Total revenues includes both revenues from customers as well as investment performance.

⁽⁴⁾ Includes $186.9 from Tranzact and $105.5 from MediaAlpha for the year ended December 31, 2015; and $43.2 from Tranzact and $65.3 from MediaAlpha for the year ended December 31, 2014.

⁽⁵⁾ Includes $167.3 from Tranzact and $99.0 from MediaAlpha for the year ended December 31, 2015; and $37.4 from Tranzact and $60.6 from MediaAlpha for the year ended December 31, 2014.

			HG Global/BAM
Selected Balance Sheet Data Millions	OneBeacon		HG Global		BAM					Other Operations		Discontinued Operations			Total
December 31, 2015:
Total investments	$	2,591.4	$	136.2	$	460.3				$	1,092.8	$	—		$	4,280.7
Reinsurance recoverable on paid and unpaid losses	193.5		—		—					.5		—			194.0
Assets held for sale	—		—		—					—		4,407.0			4,407.0
Total assets	3,602.7		739.0		(91.1		)	(1	)	1,626.9		4,407.0			10,284.5
Loss and LAE reserves	1,389.8		—		—					6.0		—			1,395.8
Liabilities held for sale	—		—		—					—		2,884.0			2,884.0
Total liabilities	2,598.2		181.2		48.9					204.2		2,884.0			5,916.5
Total White Mountains’s common shareholders’ equity	755.2		540.7		—					1,344.3		1,273.0			3,913.2
Non-controlling interest	249.3		17.1		(140.0		)			78.4		—		(2)	204.8
December 31, 2014:
Total investments	$	2,525.8	$	121.0	$	454.2				$	641.4	$	—		$	3,742.4
Reinsurance recoverable on paid and unpaid losses	173.8		—		—					.1		—			173.9
Assets held for sale	58.1		—		—					—		4,572.5			4,630.6
Total assets	3,559.8		704.4		(89.4		)	(1	)	1,708.4		4,572.5			10,455.7
Loss and LAE reserves	1,342.2		—		—					7.8		—			1,350.0
Liabilities held for sale	—		—		—					—		3,105.3			3,105.3
Total liabilities	2,510.5		121.0		32.5					148.0		3,105.3			5,917.3
Total White Mountains’s common shareholders’ equity	787.5		565.5		—					1,425.5		1,217.2			3,995.7
Non-controlling interest	261.8		17.9		(121.9		)			134.9		—		(2)	292.7

⁽¹⁾  BAM total assets reflect the elimination of $503.0 in surplus notes issued to HG Global and its subsidiaries, and $90.2 and $74.4 in accrued interest related to those surplus notes as of December 31, 2015 and 2014.

⁽²⁾ Excludes $250.0 related to SIG Preference Shares (See Note 14 - “Common Shareholders’ Equity and Non-controlling Interests”)