Held for Sale and Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2018

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of discontinued operations balance sheet, income statement, and cash flows

The following table presents the undistributed net earnings (losses) from continuing operations for the years ended December 31, 2018, 2017 and 2016. See Note 19 — “Held for Sale and Discontinued Operations”.

	Year Ended December 31,
Millions		2018			2017			2016
Undistributed net earnings - continuing operations:
Net (loss) income attributable to White Mountains’s common shareholders,      net of restricted common share amounts		$	(122.6	)	$	49.0		$	(120.1	)
Dividends declared, net of restricted common share amounts (1)		(3.7		)	(4.5		)	(5.4		)
Total undistributed net (losses) earnings, net of restricted common share amounts		$	(126.3	)	$	44.5		$	(125.5	)

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

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. 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

Net Change in Cash from Discontinued Operations

The transactions to purchase the investments in OneBeacon and other investments held by Sirius Group prior to the closing are presented in the statement of cash flows as net settlement of investment cash flows with 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
Net cash provided from operations	$	157.0		$	23.6
Net cash provided from (used for) investing activities	3.0			241.4
Net cash used for financing activities	(61.9		)	(93.8		)
Net change in cash during the period	98.1			171.2
Cash balances at beginning of period	70.5			245.4
Net change in cash held for sale	(.9		)	(.3		)
Cash sold as part of sale of consolidated subsidiaries	(167.7		)	(345.8		)
Cash balances at end of period	$	—		$	70.5

Discontinued operations, computation of earnings per share

The following table presents the Company’s computation of earnings per share for discontinued operations for the years ended December 31, 2018, 2017 and 2016:

	Year Ended December 31,
	2018			2017			2016
Basic and diluted earnings per share numerators (in millions):
Net (loss) income attributable to White Mountains’s common shareholders	$	(141.2	)	$	627.2		$	401.8
Less: total (loss) income from continuing operations, net of tax	(124.0		)	49.7			(121.6		)
Net (loss) income from discontinued operations attributable to White Mountains’s common shareholders	(17.2		)	577.5			523.4
Allocation of earnings (losses) to participating restricted common shares (1)	0.2			(7.3		)	(6.8		)
Basic and diluted (losses) earnings per share numerators	$	(17.0	)	$	570.2		$	516.6
Basic earnings per share denominators (in thousands):
Total average common shares outstanding during the period	$	3,382.5		$	4,293.8		$	5,014.9
Average unvested restricted common shares (3)	(40.1		)	(54.3		)	(64.8		)
Basic earnings (losses) per share denominator	$	3,342.4		$	4,239.5		$	4,950.1
Diluted earnings per share denominator (in thousands):
Total average common shares outstanding during the period	$	3,382.5		$	4,293.8		$	5,018.1
Average unvested restricted common shares (3)	(40.1		)	(54.3		)	(64.8		)
Diluted earnings (losses) per share denominator (4)	$	3,342.4		$	4,239.5		$	4,953.3
Basic (losses) earnings per share (in dollars) - discontinued operations:	$	(5.09	)	$	134.50		$	104.37
Diluted (losses) earnings per share (in dollars) - discontinued operations:	$	(5.09	)	$	134.50		$	104.32

⁽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 years ended December 31, 2018, 2017 and 2016.

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

⁽⁴⁾  The diluted earnings 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.

Summary of the fair value and carrying value of financial instruments

The following tables presents the fair value and carrying value of these financial instruments as of December 31, 2018 and December 31, 2017:

	December 31, 2018				December 31, 2017
Millions	Fair Value		Carrying Value		Fair Value		Carrying Value
NSM Bank Facility	$	176.1	$	176.6	$	—	$	—
MediaAlpha Bank Facility	$	14.6	$	14.2	$	23.9	$	23.8