Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 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 values and book values as of December 31, 2015 and 2014:

	December 31, 2015				December 31, 2014
Millions	Fair Value		Carrying Value		Fair Value		Carrying Value
OBH Senior Notes	$	276.4	$	274.8	$	286.0	$	274.7
Tranzact Bank Facility	102.8		102.9		68.7		67.4
MediaAlpha Bank Facility	15.0		14.7		—		—

Schedule illustrating the valuation adjustments between par and fair value [Table Text Block]

Below is a table illustrating the valuation adjustments taken to arrive at the estimated fair value of the OneBeacon Surplus Notes as of December 23, 2014:

	Type of Surplus Note
Millions	Seller Priority			Pari Passu			Total
Par Value	$	57.9		$	43.1		$	101.0
Fair value adjustments to reflect:
Current market rates on public debt and contract-based repayments(1)	1.6			(8.4		)	(6.8		)
Regulatory approval(2)	(4.6		)	(8.0		)	(12.6		)
Liquidity adjustment (3)	(11.0		)	(5.7		)	(16.7		)
Total adjustments	(14.0		)	(22.1		)	(36.1		)
Fair value	$	43.9		$	21.0		$	64.9

⁽¹⁾  Represents the value of the OneBeacon Surplus Notes, at current market yields on 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.

⁽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.

⁽³⁾  Represents impact of liquidity spread to account for OneBeacon’s sole ownership of the surplus notes, lack of a trading market and ongoing regulatory approval risk.

Schedule of discontinued operations balance sheet, income statement, and cash flows

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:

	December 31,
Millions	2015		2014
Assets held for sale
Fixed maturity investments, at fair value	$	2,374.0	$	2,362.3
Short term	352.0		494.9
Common Equities	174.4		189.9
Other	72.2		95.6
Total Investments	2,972.6		3,142.7
Cash	143.9		111.5
Reinsurance recoverable on unpaid losses	283.1		322.2
Reinsurance recoverable on paid losses	10.2		11.4
Insurance premiums receivable	323.6		306.6
Deferred acquisition costs	74.6		69.9
Deferred tax asset	303.1		341.5
Ceded unearned insurance and reinsurance premiums	87.7		76.2
Accounts receivable on unsettled investment sales	29.0		18.7
Intangible assets	10.2		15.2
Other assets	169.0		156.6
Other assets - OneBeacon building	—		58.1
Total assets held for sale	$	4,407.0	$	4,630.6
Liabilities held for sale
Loss and loss adjustment expense reserves	$	1,644.4	$	1,809.8
Unearned insurance premiums	342.2		338.6
Debt	403.5		403.5
Deferred tax liability	263.6		282.8
Accrued incentive compensation	63.2		76.5
Ceded reinsurance payable	67.1		71.5
Funds held under reinsurance treaties	52.9		57.9
Accounts payable on unsettled investment purchases	—		2.1
Other liabilities	47.1		62.6
Total liabilities held for sale	2,884.0		3,105.3
Net assets held for sale	$	1,523.0	$	1,525.3

Net Income (Loss) 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.

	Year Ended December 31, 2015
Millions	Sirius Group			Other Disc Ops			Total
Revenues
Earned insurance premiums	$	847.0		$	—		$	847.0
Net investment income	40.7			—			40.7
Net realized and unrealized investment gains	15.1			—			15.1
Other revenue	(20.6		)	(.7		)	(21.3		)
Total revenues	882.2			(.7		)	881.5
Expenses
Loss and loss adjustment expenses	422.7			—			422.7
Insurance and reinsurance acquisition expenses	189.8			—			189.8
Other underwriting expenses	107.9			—			107.9
Interest expense on debt	26.6			—			26.6
General and administrative expenses	27.0			—			27.0
Total expenses	774.0			—			774.0
Pre-tax income (loss)	108.2			(.7		)	107.5
Income tax expense	(27.1		)	.2			(26.9		)
Net income (loss) from discontinued operations	81.1			(.5		)	80.6
Net gain from sales of discontinued operations - OneBeacon	—			.3			.3
Net gain from sales of discontinued operations - Esurance	—			17.9			17.9
Total income from discontinued operations	81.1			17.7			98.8
Change in foreign currency translation and    other from discontinued operations	(65.0		)	—			(65.0		)
Comprehensive income from discontinued operations	$	16.1		$	17.7		$	33.8

	Year Ended December 31, 2014
Millions	Sirius Group			Other Disc Ops			Total
Revenues
Earned insurance premiums	$	873.9		$	.1		$	874.0
Net investment income	40.9			—			40.9
Net realized and unrealized investment gains	205.4			—			205.4
Other revenue	(62.4		)	—			(62.4		)
Total revenues	1,057.8			.1			1,057.9
Expenses
Loss and loss adjustment expenses	345.3			(.7		)	344.6
Insurance and reinsurance acquisition expenses	193.6			.1			193.7
Other underwriting expenses	129.7			3.5			133.2
Interest expense on debt	26.3			—			26.3
General and administrative expenses	30.5			—			30.5
Total expenses	725.4			2.9			728.3
Pre-tax income (loss)	332.4			(2.8		)	329.6
Income tax (expense) benefit	(70.4		)	1.0			(69.4		)
Net income (loss) from discontinued operations	262.0			(1.8		)	260.2
Net gain from sales of discontinued operations - FFIC	—			14.0			14.0
Net losses from sales of discontinued operations - OneBeacon	—			(18.8		)	(18.8		)
Net gain from sales of discontinued operations - Esurance	—			3.2			3.2
Total income from discontinued operations	262.0			(3.4		)	258.6
Change in foreign currency translation and    other from discontinued operations	(169.5		)	—			(169.5		)
Comprehensive income (loss) from discontinued operations	$	92.5		$	(3.4	)	$	89.1

	Year Ended December 31, 2013
Millions	Sirius Group			Other Disc Ops			Total
Revenues
Earned insurance premiums	$	866.4		$	.8		$	867.2
Net investment income	46.7			—			46.7
Net realized and unrealized investment gains	27.8			—			27.8
Other revenue	16.8			10.8			27.6
Total revenues	957.7			11.6			969.3
Expenses
Loss and loss adjustment expenses	418.4			78.9			497.3
Insurance and reinsurance acquisition expenses	166.5			—			166.5
Other underwriting expenses	126.1			(.2		)	125.9
Interest expense on debt	26.3			—			26.3
General and administrative expenses	32.2			—			32.2
Total expenses	769.5			78.7			848.2
Pre-tax income (loss)	188.2			(67.1		)	121.1
Income tax (expense) benefit	(46.2		)	25.0			(21.2		)
Net income (loss) from discontinued operations	142.0			(42.1		)	99.9
Net gain from sales of discontinued operations	—			46.6			46.6
Total income from discontinued operations	142.0			4.5			146.5
Change in foreign currency translation and    other from discontinued operations	6.1			—			6.1
Comprehensive income from discontinued operations	$	148.1		$	4.5		$	152.6

Net Change in Cash from Discontinued Operations

The following summarizes the net change in cash associated with the businesses classified as discontinued operations:

	Year ended
	December 31,
Millions	2015			2014			2013
Net cash provided from (used for) operations	$	14.7		$	60.0		$	(61.5	)
Net cash provided from investing activities	31.3			35.8			148.7
Net cash used for financing activities	(9.1		)	(63.2		)	(87.5		)
Effect of exchange rate changes on cash	(4.5		)	(14.3		)	(.2		)
Net change in cash during the period	32.4			18.3			(.5		)
Cash balances at beginning of period	111.5			93.2			93.7
Cash balances at end of period	$	143.9		$	111.5		$	93.2

Discontinued operations, computation of earnings per share

The following table outlines the computation of earnings per share for discontinued operations for the years ended December 31, 2015, 2014 and 2013:

	Year Ended December 31,
	2015			2014			2013
Basic and diluted earnings per share numerators (in millions):
Net income attributable to White Mountains’s common shareholders	$	98.8		$	258.6		$	146.5
Allocation of income for participating unvested restricted common shares(1)	(1.1		)	(3.3		)	(2.2		)
Net income attributable to White Mountains’s common shareholders, net of    restricted common share amounts (2)	$	97.7		$	255.3		$	144.3
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period	5,879.2			6,104.9			6,200.4
Average unvested restricted common shares (3)	(68.0		)	(78.9		)	(91.4		)
Basic earnings per share denominator	5,811.2			6,026.0			6,109.0
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period	5,879.2			6,104.9			6,200.4
Average unvested restricted common shares(3)	(68.0		)	(78.9		)	(91.4		)
Average outstanding dilutive options to acquire common shares(4)	—			—			—
Diluted earnings per share denominator	5,811.2			6,026.0			6,109.0
Basic and diluted earnings per share (in dollars):	$	16.80		$	42.36		$	23.63

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

⁽²⁾  Net income (loss) attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the years ended December 31, 2015, 2014 and 2013.

⁽³⁾  Restricted common shares outstanding vest either in equal annual installments or upon a stated date (see Note 13 - “Employee Share-Based Incentive Compensation Plans”).

⁽⁴⁾  The diluted earnings (loss) per share denominator for the years ended December 31, 2015, 2014 and 2013 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.

Sirius Group

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 the Sirius Group financials instruments, the SIG Senior Notes and the SIG Preference Shares, as of December 31, 2015 and 2014:

	December 31, 2015				December 31, 2014
Millions	Fair Value		Carrying Value		Fair Value		Carrying Value
SIG Senior Notes	$	410.0	$	399.8	$	437.8	$	399.7
SIG Preference Shares	255.0		250.0		260.0		250.0

Interest Rate Cap | Sirius Group

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 table summarizes the change in the fair value of the Interest Rate Cap for the year ended December 31, 2015:

	December 31,
Millions	2015			2014
Beginning of period	$	4.1		$	11.1
Net realized and unrealized losses	(2.2		)	(7.0		)
End of period	$	1.9		$	4.1

Schedule of collateral

The following table summarizes the Interest Rate Cap collateral balances held by White Mountains and ratings by counterparty:

	December 31, 2015
Millions	Collateral Balances Held		Standard & Poor’s  Rating(1)
Barclays Bank Plc	$	1.3	A-
Nordea Bank Finland Plc	.6		AA-
Total	$	1.9

⁽¹⁾   Standard & Poor’s ratings as detailed above are: “A” (Strong, which is the sixth highest of twenty-one creditworthiness ratings) and “AA-” (Very Strong, which is the fourth highest of twenty-one creditworthiness ratings).