Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

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 three months ended June 30, 2018 and 2017. See Note 16 — “Held for Sale and Discontinued Operations”.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Basic and diluted earnings per share numerators (in millions):
Net income (loss) attributable to White Mountains’s    common shareholders	$	3.5		$	13.6		$	(44.5	)	$	42.6
Less: total income from discontinued operations, net of tax	—			2.8			.1			34.1
Net loss from continuing operations attributable to    White Mountains’s common shareholders	$	3.5		$	10.8		$	(44.6	)	$	8.5
Allocation of earnings to participating restricted common shares(1)	—			(.1		)	.4			(.2		)
Basic and diluted earnings per share numerators	$	3.5		$	10.7		$	(44.2	)	$	8.3
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period	3,432.0			4,572.1			3,588.2			4,568.4
Average unvested restricted common shares(2)	(41.5		)	(57.2		)	(38.7		)	(54.9		)
Basic earnings per share denominator	3,390.5			4,514.9			3,549.5			4,513.5
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period	3,432.0			4,572.1			3,588.2			4,568.4
Average unvested restricted common shares(2)	(41.5		)	(57.2		)	(38.7		)	(54.9		)
Diluted earnings per share denominator	3,390.5			4,514.9			3,549.5			4,513.5
Basic and diluted earnings per share (in dollars) - continuing operations:
Distributed earnings - dividends declared and paid	$	—		$	—		$	1.00		$	1.00
Undistributed earnings (losses)	1.02			2.36			(13.44		)	.84
Basic and diluted earnings per share	$	1.02		$	2.36		$	(12.44	)	$	1.84

⁽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”

Disposal Groups, Including Discontinued Operations

The following table presents the undistributed net earnings (losses) from continuing operations for the three months ended June 30, 2018 and 2017. See Note 16 — “Held for Sale and Discontinued Operations”.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Millions	2018		2017		2018			2017
Undistributed net income (losses) - continuing operations:
Net income (loss) attributable to White Mountains’s common shareholders,      net of restricted common share amounts	$	3.5	$	10.7	$	(44.2	)	$	8.3
Dividends declared net of restricted common share amounts (1)	—		—		(3.7		)	(4.5		)
Total undistributed net losses, net of restricted common      share amounts	$	3.5	$	10.7	$	(47.9	)	$	3.8

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

Net Income (Loss) from Discontinued Operations

For the six months ended June 30, 2018, the $0.1 million gain recorded within discontinued operations relates to Sirius Group. The following table presents the results of operations, including related income taxes, associated with the business classified as discontinued operations for the three and six months ended June 30, 2017. For the three and six months endedJune 30, 2017, the amounts presented relate to OneBeacon and Tranzact. The results of discontinued operations from Sirius Group and Tranzact up to the closing date of the transaction inured to White Mountains. Given the fixed price nature of the OneBeacon Transaction, OneBeacon’s results were economically transferred to the buyer at signing.

	Three Months Ended									Six Months Ended
	June 30, 2017									June 30, 2017
Millions	OneBeacon			Sirius Group			Total			OneBeacon		Sirius Group			Other Disc Ops			Total
Revenues
Earned insurance premiums	$	277.4		$	—		$	277.4		$	539.2	$	—		$	—		$	539.2
Net investment income	14.5			—			14.5			26.7		—			—			26.7
Net realized and unrealized gains	12.3			—			12.3			27.3		—			—			27.3
Other revenue	2.1			—			2.1			5.5		—			—			5.5
Total revenues	306.3			—			306.3			598.7		—			—			598.7
Expenses
Loss and loss adjustment expenses	188.6			—			188.6			339.2		—			—			339.2
Insurance and reinsurance acquisition expenses	48.4			—			48.4			93.7		—			—			93.7
Other underwriting expenses	59.6			—			59.6			111.3		—			—			111.3
General and administrative expenses	8.8			—			8.8			13.8		—			—			13.8
Interest expense	3.3			—			3.3			6.6		—			—			6.6
Total expenses	308.7			—			308.7			564.6		—			—			564.6
Pre-tax (loss) income	(2.4		)	—			(2.4		)	34.1		—			—			34.1
Income tax expense	5.8			—			5.8			1.6		—			—			1.6
Net income from discontinued operations	3.4			—			3.4			35.7		—			—			35.7
Net loss from sale of discontinued operations	—			(.6		)	(.6		)	—		(.6		)	(1.0		)	(1.6		)
Total income (loss) from    discontinued operations	3.4			(.6		)	2.8			35.7		(.6		)	(1.0		)	34.1
Change in foreign currency translation and    other from discontinued operations	.2			—			.2			.3		—			—			.3
Comprehensive income (loss)    from discontinued operations	$	3.6		$	(.6	)	$	3.0		$	36.0	$	(.6	)	$	(1.0	)	$	34.4

Net Change in Cash from Discontinued Operations

The following tables presents the net change in cash, including income tax payments to national governments and interest paid associated with the business classified as discontinued operations:

	Six Months Ended
	June 30,
Millions	2018			2017
Net cash provided from (used for) operations	$	.1		$	87.3
Net cash (used for) provided from investing activities	(.1		)	(43.6		)
Net cash used for financing activities	—			(42.0		)
Net change in cash during the period	—			1.7
Cash balances at beginning of period	—			70.5
Net change in cash held for sale, excluding discontinued operations	—			(.9		)
Cash balances at end of period	$	—		$	71.3
Supplemental cash flows information:
Interest paid	$	—		$	(6.3	)
Net income tax payment to national governments	$	—		$	—

Earnings Per Share from Discontinued Operations

White Mountains calculates earnings per share using the two-class method, which allocates earnings between common and unvested restricted common shares. Both classes of shares participate equally in earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. Diluted earnings per share amounts are also impacted by the net effect of potentially dilutive common shares outstanding.

The following table presents the Company’s computation of earnings per share for discontinued operations for the three and six months endedJune 30, 2018 and 2017:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Basic and diluted earnings per share numerators (in millions):
Net income (loss) attributable to White Mountains’s    common shareholders	$	3.5		$	13.6		$	(44.5	)	$	42.6
Less total loss from continuing operations, net of tax	3.5			10.8			(44.6		)	8.5
Net income from discontinued operations attributable to    White Mountains’s common shareholders	$	—		$	2.8		$	.1		$	34.1
Allocation of earnings to participating restricted    common shares (1)	—			—			—			(.4		)
Basic and diluted earnings per share numerators	$	—		$	2.8		$	.1		$	33.7
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period	3,432.0			4,572.1			3,588.2			4,568.4
Average unvested restricted common shares (3)	(41.5		)	(57.2		)	(38.7		)	(54.9		)
Basic earnings per share denominator	3,390.5			4,514.9			3,549.5			4,513.5
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period	3,432.0			4,572.1			3,588.2			4,568.4
Average unvested restricted common shares (3)	(41.5		)	(57.2		)	(38.7		)	(54.9		)
Diluted earnings per share denominator	3,390.5			4,514.9			3,549.5			4,513.5
Basic and diluted earnings per share (in dollars) -    discontinued operations:	$	—		$	.61		$	.03		$	7.47

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

⁽²⁾ Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the three and six months endedJune 30, 2018 and 2017.

⁽³⁾ Restricted common shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans”.