Segment Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Informartion

Segment Information

White Mountains has determined that its reportable segments are HG Global/BAM, MediaAlpha and Other Operations. As a result of the Sirius Group and Tranzact sales and the OneBeacon Transaction, the results of operations for Sirius Group and OneBeacon, previously reported in their own respective segments, 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. Beginning in the second quarter of 2017, MediaAlpha’s results have been presented as a separate segment within White Mountains’s consolidated financial statements. Prior year amounts have been reclassified to conform to the current period’s presentation. See Note 15 — “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	HG Global		BAM(1)			MediaAlpha			Other Operations		Total
Three Months Ended September 30, 2017
Earned insurance premiums	$	1.8	$	.6		$	—		$	—	$	2.4
Net investment income	1.0		2.3			—			8.9		12.2
Net investment income (loss) - BAM Surplus Note interest	4.8		(4.8		)	—			—		—
Net realized and unrealized investment gains	.1		.7			—			31.7		32.5
Advertising and commission revenues	—		—			37.9			.9		38.8
Other revenue	—		.2			—			1.4		1.6
Total revenues	7.7		(1.0		)	37.9			42.9		87.5
Insurance acquisition expenses	.4		.5			—			—		.9
Other underwriting expenses	—		.1			—			—		.1
Cost of sales	—		—			32.2			.9		33.1
General and administrative expenses	.3		10.3			6.1			27.4		44.1
Interest expense	—		—			.1			.8		.9
Total expenses	.7		10.9			38.4			29.1		79.1
Pre-tax income (loss)	$	7.0	$	(11.9	)	$	(.5	)	$	13.8	$	8.4

⁽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.

	HG Global/BAM
Millions	HG Global		BAM(1)			MediaAlpha			Other Operations		Total
Nine Months Ended September 30, 2017
Earned insurance premiums	$	5.0	$	1.6		$	—		$	1.0	$	7.6
Net investment income	2.4		6.5			—			30.8		39.7
Net investment income (loss) - BAM Surplus Note interest	14.3		(14.3		)	—			—		—
Net realized and unrealized investment gains	.4		2.8			—			99.3		102.5
Advertising and commission revenues	—		—			101.2			2.7		103.9
Other revenue	—		.8			—			5.3		6.1
Total revenues	22.1		(2.6		)	101.2			139.1		259.8
Losses and loss adjustment expenses	—		—			—			1.1		1.1
Insurance acquisition expenses	1.0		2.0			—			.1		3.1
Other underwriting expenses	—		.3			—			—		.3
Cost of sales	—		—			86.0			2.7		88.7
General and administrative expenses	.8		30.7			17.9			112.8		162.2
Interest expense	—		—			.6			1.2		1.8
Total expenses	1.8		33.0			104.5			117.9		257.2
Pre-tax income (loss)	$	20.3	$	(35.6	)	$	(3.3	)	$	21.2	$	2.6

⁽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.

	HG Global/BAM
Millions	HG Global			BAM(1)			MediaAlpha			Other Operations			Total
Three Months Ended September 30, 2016
Earned insurance premiums	$	1.2		$	.3		$	—		$	1.9		$	3.4
Net investment income	.6			1.7			—			7.3			9.6
Net investment income (loss) - BAM Surplus Note interest	4.5			(4.5		)	—			—			—
Net realized and unrealized investment (losses) gains	(.3		)	(1.6		)	—			12.8			10.9
Advertising and commission revenues	—			—			27.6			.6			28.2
Other revenue	—			.4			—			4.3			4.7
Total revenues	6.0			(3.7		)	27.6			26.9			56.8
Losses and loss adjustment expenses	—			—			—			2.2			2.2
Insurance acquisition expenses	.2			.6			—			.5			1.3
Other underwriting expenses	—			.1			—			.1			.2
Cost of sales	—			—			23.0			1.0			24.0
General and administrative expenses	.6			9.3			5.7			26.8			42.4
Interest expense	—			—			.2			.3			.5
Total expenses	.8			10.0			28.9			30.9			70.6
Pre-tax income (loss)	$	5.2		$	(13.7	)	$	(1.3	)	$	(4.0	)	$	(13.8	)

⁽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.

	HG Global/BAM
Millions	HG Global		BAM(1)			MediaAlpha			Other Operations			Total
Nine Months Ended September 30, 2016
Earned insurance premiums	$	3.1	$	1.0		$	—		$	6.1		$	10.2
Net investment income	1.6		5.1			—			11.5			18.2
Net investment income (loss) - BAM Surplus Note interest	13.4		(13.4		)	—			—			—
Net realized and unrealized investment gains	2.3		6.5			—			18.4			27.2
Advertising and commission revenues	—		—			88.4			1.2			89.6
Other revenue	—		.8			—			17.2			18.0
Total revenues	20.4		—			88.4			54.4			163.2
Losses and loss adjustment expenses	—		—			—			6.8			6.8
Insurance acquisition expenses	.6		1.9			—			1.9			4.4
Other underwriting expenses	—		.3			—			.1			.4
Cost of sales	—		—			74.0			2.9			76.9
General and administrative expenses	1.4		28.1			16.3			99.1			144.9
Interest expense	—		—			.7			1.9			2.6
Total expenses	2.0		30.3			91.0			112.7			236.0
Pre-tax income (loss)	$	18.4	$	(30.3	)	$	(2.6	)	$	(58.3	)	$	(72.8	)

⁽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.