Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Informartion

Segment Information

White Mountains has determined that its reportable segments are OneBeacon, HG Global/BAM and Other Operations. As a result of the Sirius Group and Tranzact sales, the results of operations for Sirius Group, previously reported in its own segment, and Tranzact, previously reported in the Other Operations segment, have been classified as discontinued operations and are now presented, net of related income taxes, as such in the statement of operations and comprehensive income. Prior year amounts have been reclassified to conform to the current period’s presentation (See Note 17 - “Held for Sale and 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.

Significant intercompany transactions among White Mountains’s segments have been eliminated herein. Financial information for White Mountains’s segments follows:

			HG Global/BAM
Millions	OneBeacon		HG			BAM(1)			Other Operations				Total
Three Months Ended September 30, 2016
Earned insurance premiums	$	277.9	$	1.2		$	.3		$	1.9			$	281.3
Net investment income	11.8		.6			1.7			8.4				22.5
Net investment income (loss) - surplus note interest	—		4.5			(4.5		)	—				—
Net realized and unrealized investment gains (losses)	15.5		(.3		)	(1.6		)	12.8				26.4
Other revenue	1.8		—			.4			32.6			(2)	34.8
Total revenues	307.0		6.0			(3.7		)	55.7				365.0
Losses and LAE	162.8		—			—			2.2				165.0
Insurance acquisition expenses	55.1		.2			.6			.5				56.4
Other underwriting expenses	49.4		—			.1			.1				49.6
General and administrative expenses	3.2		.6			9.3			54.1			(3)	67.2
Amortization of other intangible assets	.3		—			—			2.7				3.0
Interest expense	3.3		—			—			.5				3.8
Total expenses	274.1		.8			10.0			60.1				345.0
Pre-tax income (loss)	$	32.9	$	5.2		$	(13.7	)	$	(4.4	)		$	20.0

			HG Global/BAM
Millions	OneBeacon		HG		BAM(1)			Other Operations				Total
Nine Months Ended September 30, 2016
Earned insurance premiums	$	827.9	$	3.1	$	1.0		$	6.1			$	838.1
Net investment income	38.3		1.6		5.1			14.6				59.6
Net investment income (loss) - surplus note interest	—		13.4		(13.4		)	—				—
Net realized and unrealized investment gains	56.8		2.3		6.5			18.4				84.0
Other revenue	3.5		—		.8			106.5			(2)	110.8
Total revenues	926.5		20.4		—			145.6				1,092.5
Losses and LAE	501.3		—		—			6.8				508.1
Insurance acquisition expenses	154.8		.6		1.9			1.9				159.2
Other underwriting expenses	155.6		—		.3			.1				156.0
General and administrative expenses	10.0		1.4		28.1			181.5			(3)	221.0
Amortization of other intangible assets	.9		—		—			8.5				9.4
Interest expense	9.8		—		—			2.6				12.4
Total expenses	832.4		2.0		30.3			201.4				1,066.1
Pre-tax income (loss)	$	94.1	$	18.4	$	(30.3	)	$	(55.8	)		$	26.4

				HG Global/BAM
Millions	OneBeacon			HG		BAM(1)			Other Operations				Total
Three Months Ended September 30, 2015
Earned insurance premiums	$	281.4		$	.6	$	.3		$	2.6			$	284.9
Net investment income	12.4			.5		1.1			2.8				16.8
Net investment income (loss) - surplus note interest	—			4.0		(4.0		)	—				—
Net realized and unrealized investment (losses) gains	(29.9		)	.6		1.7			(16.3		)		(43.9		)
Other revenue	3.9			—		.2			34.2			(2)	38.3
Total revenues	267.8			5.7		(.7		)	23.3				296.1
Losses and LAE	167.5			—		—			2.5				170.0
Insurance acquisition expenses	53.8			.1		.4			1.0				55.3
Other underwriting expenses	56.4			—		.1			—				56.5
General and administrative expenses	3.4			.4		9.4			81.5			(3)	94.7
Amortization of other intangible assets	.3			—		—			2.3				2.6
Interest expense	3.2			—		—			.7				3.9
Total expenses	284.6			.5		9.9			88.0				383.0
Pre-tax (loss) income	$	(16.8	)	$	5.2	$	(10.6	)	$	(64.7	)		$	(86.9	)

				HG Global/BAM
Millions	OneBeacon			HG		BAM(1)			Other Operations				Total
Nine Months Ended September 30, 2015
Earned insurance premiums	$	887.3		$	1.7	$	.6		$	6.4			$	896.0
Net investment income	33.0			1.4		2.9			5.3				42.6
Net investment income (loss) - surplus note interest	—			11.9		(11.9		)	—				—
Net realized and unrealized investment (losses) gains	(29.7		)	.3		2.8			(7.3		)		(33.9		)
Other (loss) revenue	(.4		)	—		.5			114.3			(2)	114.4
Total revenues	890.2			15.3		(5.1		)	118.7				1,019.1
Losses and LAE	527.9			—		—			6.2				534.1
Insurance acquisition expenses	161.2			.3		1.8			2.8				166.1
Other underwriting expenses	165.2			—		.3			—				165.5
General and administrative expenses	11.0			1.2		26.3			185.2			(3)	223.7
Amortization of other intangible assets	1.0			—		—			6.9				7.9
Interest expense	9.7			—		—			1.1				10.8
Total expenses	876.0			1.5		28.4			202.2				1,108.1
Pre-tax income (loss)	$	14.2		$	13.8	$	(33.5	)	$	(83.5	)		$	(89.0	)

⁽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⁾ Includes $27.6 and $88.4 from MediaAlpha for the three months and nine months ended September 30, 2016, and $28.3 and $81.2 from MediaAlpha for the three months and nine months ended September 30, 2015.

⁽³⁾ Includes $26.2 and $82.7 from MediaAlpha for the three months and nine months ended September 30, 2016, and $26.2 and $75.8 from MediaAlpha for the three months and nine months ended September 30, 2015.