Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Computation of earnings per share

The following table presents the Company’s computation of earnings per share from continuing operations for the years ended December 31, 2017, 2016 and 2015. See Note 19— “Held for Sale and Discontinued Operations”.

	Year Ended December 31,
	2017			2016			2015
Basic and diluted earnings per share numerators (in millions):
Net income attributable to White Mountains’s common shareholders	$	627.2		$	401.8		$	295.2
Less: total income from discontinued operations, net of tax	577.5			523.4			135.1
Net income (loss) from continuing operations attributable to    White Mountains’s common shareholders	49.7			(121.6		)	160.1
Allocation of earnings to participating restricted common shares (1)	(.7		)	1.5			(1.9		)
Basic and diluted earnings per share numerators	$	49.0		$	(120.1	)	$	158.2
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period	4,293.8			5,014.9			5,879.2
Average unvested restricted common shares (2)	(54.3		)	(64.8		)	(68.0		)
Basic earnings per share denominator	4,239.5			4,950.1			5,811.2
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period	4,293.8			5,018.1			5,879.2
Average unvested restricted common shares (2)	(54.3		)	(64.8		)	(68.0		)
Diluted earnings per share denominator (3)	4,239.5			4,953.3			5,811.2
Basic and diluted earnings per share (in dollars) - continuing operations:
Distributed earnings - dividends declared and paid	$	1.00		$	1.00		$	1.00
Undistributed earnings (losses)	$	10.56		$	(25.26	)	$	26.22
Basic and diluted earnings per share	$	11.56		$	(24.26	)	$	27.22

⁽¹⁾  Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.

⁽²⁾  Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans”.

⁽³⁾  The diluted earnings (loss) per share denominator for the year ended December 31, 2016, includes the impact of 40,000 common shares issuable upon exercise of the non-qualified options outstanding, which resulted in 3,217 incremental shares outstanding over the period. Prior periods do 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.

Schedule of Undistributed Net Earnings

The following table presents the undistributed net earnings (losses) from continuing operations for the years ended December 31, 2017, 2016 and 2015. See Note 19 — “Held for Sale and Discontinued Operations”.

	Year Ended December 31,
Millions		2017			2016			2015
Undistributed net earnings - continuing operations:
Net income (loss) attributable to White Mountains’s common shareholders,      net of restricted common share amounts		$	49.0		$	(120.1	)	$	158.2
Dividends declared, net of restricted common share amounts (1)		(4.5		)	(5.4		)	(5.9		)
Total undistributed net earnings (losses), net of restricted common      share amounts		$	44.5		$	(125.5	)	$	152.3

⁽¹⁾ Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.

Net Assets Held for Sale

The following table presents the assets and liabilities associated with business classified as held for sale as of December 31, 2016. Amounts presented relate to OneBeacon, Star & Shield and SSIE and the Company’s Guilford, Connecticut property. Assets held for sale as of December 31, 2017 consist solely of the Company’s Guilford, Connecticut property, which is recorded at the amount of its estimated fair value, net of estimated costs of disposal, of $3.3 million. The related writedown of $3.7 million has been recorded within other expenses.

Millions	December 31, 2016
Assets held for sale
Fixed maturity investments, at fair value	$	2,175.7
Short-term investments, at amortized cost (which approximates fair value)	112.3
Common equity securities, at fair value	188.7
Other long-term investments	150.5
Total investments	2,627.2
Cash	70.5
Reinsurance recoverable on unpaid losses	179.8
Insurance and reinsurance premiums receivable	229.8
Deferred acquisition costs	96.3
Deferred tax asset	126.7
Ceded unearned insurance and reinsurance premiums	44.2
Accounts receivable on unsettled investment sales	1.4
Goodwill and other intangible assets	1.2
Accrued investment income	11.3
Other assets	218.0
Total assets held for sale	$	3,606.4
Liabilities held for sale
Loss and loss adjustment expense reserves	$	1,370.6
Unearned insurance and reinsurance premiums	576.3
Debt	273.2
Accrued incentive compensation	44.3
Funds held under reinsurance treaties	153.0
Other liabilities	151.9
Total liabilities held for sale	2,569.3
Net assets held for sale	$	1,037.1

Net Income (Loss) from Discontinued Operations

The following tables present the results of operations, including related income taxes associated with the business classified as discontinued operations. For the year ended December 31, 2017 and 2016, the amounts presented relate to OneBeacon, Sirius Group and Tranzact. For the year ended December 31, 2015, the amounts presented relate to OneBeacon, Sirius Group, Tranzact and Esurance. The results of discontinued operations from Sirius Group and Tranzact up to the closing date of the transaction inure to White Mountains.

	Year Ended December 31, 2017
Millions	OneBeacon		Sirius Group			Tranzact		Total
Revenues
Earned insurance premiums	$	807.6	$	—		$	—	$	807.6
Net investment income	39.7		—			—		39.7
Net realized and unrealized investment gains	38.8		—			—		38.8
Other revenues	7.7		—			—		7.7
Total revenues	893.8		—			—		893.8
Expenses
Loss and loss adjustment expenses	546.0		—			—		546.0
Insurance and reinsurance acquisition expenses	145.6		—			—		145.6
Other underwriting expenses	156.2		—			—		156.2
General and administrative expenses	21.2		—			—		21.2
Interest expense	10.0							10.0
Total expenses	879.0		—			—		879.0
Pre-tax income	14.8		—			—		14.8
Income tax benefit	5.7		—			—		5.7
Net income from discontinued operations	20.5		—			—		20.5
Gain (loss) from sale of discontinued operations, net of tax	554.5		(.7		)	3.2		557.0
Total income (loss) from discontinued operations	575.0		(.7		)	3.2		577.5
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax	.3		—			—		.3
Recognition of benefit plan assets and obligations from the sale of     OneBeacon, net of tax	2.9		—			—		2.9
Comprehensive income (loss) from discontinued operations	$	578.2	$	(.7	)	$	3.2	$	580.7

	Year Ended December 31, 2016
Millions	OneBeacon		Sirius Group			Tranzact			Total
Revenues
Earned insurance premiums	$	1,100.6	$	240.1		$	—		$	1,340.7
Net investment income	50.6		14.4			—			65.0
Net realized and unrealized investment gains (losses)	37.7		(1.5		)	—			36.2
Other revenues	5.5		.6			119.6			125.7
Total revenues	1,194.4		253.6			119.6			1,567.6
Expenses
Loss and loss adjustment expenses	656.0		154.9			—			810.9
Insurance and reinsurance acquisition expenses	206.0		59.0			—			265.0
Other underwriting expenses	209.0		30.9			—			239.9
General and administrative expenses	14.2		10.4			116.7			141.3
Interest expense	13.1		7.9			3.2			24.2
Total expenses	1,098.3		263.1			119.9			1,481.3
Pre-tax income (loss)	96.1		(9.5		)	(.3		)	86.3
Income tax benefit	12.5		3.1			6.4			22.0
Net income (loss) from discontinued operations	108.6		(6.4		)	6.1			108.3
Gain from sale of discontinued operations, net of tax	—		363.2			51.9			415.1
Total income from discontinued operations	108.6		356.8			58.0			523.4
Change in foreign currency translation and      other comprehensive income from discontinued operations,      net of tax	1.0		32.0			—			33.0
Recognition of foreign currency translation from sale of     Sirius Group, net of tax	—		113.3			—			113.3
Comprehensive income from discontinued operations	$	109.6	$	502.1		$	58.0		$	669.7

	Year Ended December 31, 2015
Millions	OneBeacon			Sirius Group			Other Disc Ops			Total
Revenues
Earned insurance premiums	$	1,176.2		$	847.0		$	—		$	2,023.2
Net investment income	45.9			40.7			—			86.6
Net realized and unrealized investment (losses) gains	(35.1		)	15.1			—			(20.0		)
Other (loss) revenues	(.6		)	(20.6		)	186.2			165.0
Total revenues	1,186.4			882.2			186.2			2,254.8
Expenses
Loss and loss adjustment expenses	700.7			422.7			—			1,123.4
Insurance and reinsurance acquisition expenses	213.8			189.8			—			403.6
Other underwriting expenses	218.2			107.9			—			326.1
Interest expense	15.4			26.6			4.0			46.0
General and administrative expenses	13.0			27.0			185.3			225.3
Total expenses	1,161.1			774.0			189.3			2,124.4
Pre-tax income (loss)	25.3			108.2			(3.1		)	130.4
Income tax benefit (expense)	12.9			(27.1		)	.7			(13.5		)
Net income (loss) from discontinued operations	38.2			81.1			(2.4		)	116.9
Gain from sale of OneBeacon runoff, net of tax	.3			—			—			.3
Gain from sale of Esurance, net of tax	—			—			17.9			17.9
Total income from discontinued operations	38.5			81.1			15.5			135.1
Change in foreign currency translation and other comprehensive income from discontinued operations, net of tax	—			(65.0		)	—			(65.0		)
Comprehensive income from discontinued operations	$	38.5		$	16.1		$	15.5		$	70.1

Net Change in Cash from Discontinued Operations

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

	Year ended December 31,
Millions	2017			2016			2015
Net cash provided from operations	$	157.0		$	23.6		$	248.4
Net cash provided from (used for) investing activities	3.0			241.4			(100.5		)
Net cash used for financing activities	(61.9		)	(93.8		)	(100.7		)
Effect of exchange rate changes on cash	—			—			(4.5		)
Net change in cash during the period	98.1			171.2			42.7
Cash balances at beginning of period	70.5			245.4			203.8
Net change in cash held for sale	(.9		)	(.3		)	(1.1		)
Cash sold as part of sale of consolidated subsidiaries	(167.7		)	(345.8		)	—
Cash balances at end of period	$	—		$	70.5		$	245.4