Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Financial information for White Mountains' segments

The following tables present the financial information for White Mountains’s segments:



Millions	HG Global/BAM ⁽¹⁾			NSM			MediaAlpha		Other Operations			Total
Year Ended December 31, 2018
Earned insurance premiums	$	13.9		$	—		$	—	$	—		$	13.9
Net investment income	16.7			—			—		42.3			59.0
Net realized and unrealized investment losses	(7.5		)	—			—		(100.8		)	(108.3		)
Advertising and commission revenues ⁽²⁾	—			94.7			295.5		4.1			394.3
Other revenues	1.2			6.9			1.6		.5			10.2
Total revenues	24.3			101.6			297.1		(53.9		)	369.1
Insurance acquisition expenses	5.3			—			—		—			5.3
Other underwriting expenses	.4			—			—		—			.4
Cost of sales	—			—			245.0		3.7			248.7
General and administrative expenses	48.0			61.6			31.7		94.4			235.7
Broker commission expense	—			28.9			—		—			28.9
Amortization of other intangible assets	—			8.3			10.3		.2			18.8
Interest expense	—			8.0			1.2		.3			9.5
Total expenses	53.7			106.8			288.2		98.6			547.3
Pre-tax (loss) income	$	(29.4	)	$	(5.2	)	$	8.9	$	(152.5	)	$	(178.2	)


⁽¹⁾	BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.


⁽²⁾	As of December 31, 2018, approximately 29% of MediaAlpha’s advertising revenue was associated with one customer.As of December 31, 2018, approximately 33% of NSM’s commission revenue was associated with one single carrier.



Millions	HG Global/BAM ⁽¹⁾			MediaAlpha			Other Operations		Total
Year Ended December 31, 2017
Earned insurance premiums	$	9.4		$	—		$	1.0	$	10.4
Net investment income	12.3			—			43.7		56.0
Net realized and unrealized investment gains	.6			—			132.7		133.3
Advertising and commission revenues⁽²⁾	—			163.2			3.8		167.0
Other revenues	1.0			—			6.1		7.1
Total revenues	23.3			163.2			187.3		373.8
Losses and LAE	—			—			1.1		1.1
Insurance acquisition expenses	4.0			—			.1		4.1
Other underwriting expenses	.4			—			—		.4
Cost of sales	—			135.9			3.5		139.4
General and administrative expenses	42.9			16.2			148.9		208.0
Amortization of other intangible assets	—			10.5			.2		10.7
Interest expense	—			1.0			1.3		2.3
Total expenses	47.3			163.6			155.1		366.0
Pre-tax (loss) income	$	(24.0	)	$	(.4	)	$	32.2	$	7.8


⁽¹⁾	BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.


⁽²⁾	As of December 31, 2017, approximately 27% of MediaAlpha’s advertising revenue was associated with one customer.



Millions	HG Global/BAM ⁽¹⁾			MediaAlpha			Other Operations			Total
Year Ended December 31, 2016
Earned insurance premiums	$	5.9		$	—		$	7.5		$	13.4
Net investment income	9.0			—			23.1			32.1
Net realized and unrealized investment gains (losses)	.7			—			(28.1		)	(27.4		)
Advertising and commission revenues ⁽²⁾	—			116.5			1.8			118.3
Other revenues	1.1			—			20.2			21.3
Total revenues	16.7			116.5			24.5			157.7
Losses and LAE	—			—			8.0			8.0
Insurance acquisition expenses	3.4			—			2.2			5.6
Other underwriting expenses	.4			—			—			.4
Cost of sales	—			97.8			4.2			102.0
General and administrative expenses	39.6			11.8			124.1			175.5
Amortization of other intangible assets	—			10.1			.4			10.5
Interest expense	—			.9			2.1			3.0
Total expenses	43.4			120.6			141.0			305.0
Pre-tax loss	$	(26.7	)	$	(4.1	)	$	(116.5	)	$	(147.3	)


⁽¹⁾	BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.


⁽²⁾	As of December 31, 2016, approximately 24% of MediaAlpha’s advertising revenue was associated with one customer.



Millions Selected Balance Sheet Data	HG Global/BAM				NSM		MediaAlpha		Other Operations			Held for Sale		Total
December 31, 2018:
Total investments	$	768.3			$	1.7	$	—	$	1,772.9		$	—	$	2,542.9
Total assets	$	816.2		⁽¹⁾	$	627.0	$	88.4	$	1,827.7	⁽²⁾	$	3.3	$	3,362.6
Total liabilities	$	212.5		⁽²⁾	$	314.8	$	46.9	$	70.2		$	—	$	644.4
Total White Mountains’s common shareholders’ equity	$	759.8		⁽²⁾	$	298.3	$	25.3	$	1,756.4	⁽²⁾	$	3.3	$	2,843.1
Non-controlling interest	$	(156.1	)		$	13.9	$	16.2	$	1.1		$	—	$	(124.9	)
December 31, 2017:
Total investments	$	693.4			$	—	$	—	$	2,687.3		$	—	$	3,380.7
Total assets	$	747.4		⁽¹⁾	$	—	$	96.5	$	2,812.0	⁽²⁾	$	3.3	$	3,659.2
Total liabilities	$	167.0		⁽²⁾	$	—	$	59.8	$	71.6		$	—	$	298.4
Total White Mountains’s common shareholders’ equity	$	727.7		⁽²⁾	$	—	$	23.6	$	2,737.9	⁽²⁾	$	3.3	$	3,492.5
Non-controlling interest	$	(147.3	)		$	—	$	13.1	$	2.5		$	—	$	(131.7	)

Schedule of selected balance sheet data by segment



Millions Selected Balance Sheet Data	HG Global/BAM				NSM		MediaAlpha		Other Operations			Held for Sale		Total
December 31, 2018:
Total investments	$	768.3			$	1.7	$	—	$	1,772.9		$	—	$	2,542.9
Total assets	$	816.2		⁽¹⁾	$	627.0	$	88.4	$	1,827.7	⁽²⁾	$	3.3	$	3,362.6
Total liabilities	$	212.5		⁽²⁾	$	314.8	$	46.9	$	70.2		$	—	$	644.4
Total White Mountains’s common shareholders’ equity	$	759.8		⁽²⁾	$	298.3	$	25.3	$	1,756.4	⁽²⁾	$	3.3	$	2,843.1
Non-controlling interest	$	(156.1	)		$	13.9	$	16.2	$	1.1		$	—	$	(124.9	)
December 31, 2017:
Total investments	$	693.4			$	—	$	—	$	2,687.3		$	—	$	3,380.7
Total assets	$	747.4		⁽¹⁾	$	—	$	96.5	$	2,812.0	⁽²⁾	$	3.3	$	3,659.2
Total liabilities	$	167.0		⁽²⁾	$	—	$	59.8	$	71.6		$	—	$	298.4
Total White Mountains’s common shareholders’ equity	$	727.7		⁽²⁾	$	—	$	23.6	$	2,737.9	⁽²⁾	$	3.3	$	3,492.5
Non-controlling interest	$	(147.3	)		$	—	$	13.1	$	2.5		$	—	$	(131.7	)


⁽¹⁾	As of December 2018 and 2017,BAM’s total assets reflected the elimination of $481.3 and $499.0 of BAM Surplus Notes issued to HG Global and its subsidiaries, and $143.7 and $126.0 in accrued interest related to the BAM Surplus Notes.

⁽²⁾

HG Global preferred dividends payable to White Mountains’s subsidiaries is eliminated in White Mountains’s consolidated financial statements. For segment reporting, the HG Global preferred dividends payable to White Mountains’s subsidiaries included within the HG Global/BAM segment are eliminated against the offsetting receivable included within the Other Operations segment and therefore added back to White Mountains’s common shareholders’ equity within the HG Global/BAM segment.