Segment Information

3 Months Ended

Mar. 31, 2019

Segment Information

White Mountains has determined that its reportable segments are HG Global/BAM, NSM, MediaAlpha (through February 26, 2019) and Other 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.

White Mountains deconsolidated MediaAlpha on February 26, 2019. White Mountains’s segment disclosures include MediaAlpha’s results of operations for the period from January 1, 2019 through February 26, 2019. See Note 2 — “Significant Transactions”.

Significant intercompany transactions among White Mountains’s segments have been eliminated herein. The following table presents the financial information for White Mountains’s segments:



Millions	HG Global/ BAM		NSM			MediaAlpha ⁽¹⁾			Other Operations		Total
Three Months Ended March 31, 2019
Earned insurance premiums	$	4.2	$	—		$	—		$	—	$	4.2
Net investment income	5.3		—			—			10.7		16.0
Net realized and unrealized investment gains	11.8		—			—			119.1		130.9
Realized and unrealized gains from the MediaAlpha Transaction	—		—			—			182.2		182.2
Advertising and commission revenues ⁽¹⁾	—		43.3			48.8			1.3		93.4
Other revenue	.6		6.0			—			.3		6.9
Total revenues	21.9		49.3			48.8			313.6		433.6
Insurance acquisition expenses	1.3		—			—			—		1.3
Cost of sales	—		—			40.6			1.1		41.7
General and administrative expenses	14.4		25.1			12.5			29.4		81.4
Broker commission expense	—		15.7			—			—		15.7
Change in fair value of contingent consideration earnout liabilities	—		1.3			—			—		1.3
Amortization of other intangible assets	—		5.0			1.6			—		6.6
Interest expense	—		3.7			.2			—		3.9
Total expenses	15.7		50.8			54.9			30.5		151.9
Pre-tax income (loss)	$	6.2	$	(1.5	)	$	(6.1	)	$	283.1	$	281.7

⁽¹⁾ MediaAlpha’s results are from January 1, 2019 to February 26, 2019, the date of the MediaAlpha Transaction.



Millions	HG Global/BAM			MediaAlpha			Other Operations			Total
Three Months Ended March 31, 2018
Earned insurance premiums	$	3.0		$	—		$	—		$	3.0
Net investment income	3.7			—			16.0			19.7
Net realized and unrealized investment losses	(7.9		)	—			(45.8		)	(53.7		)
Advertising and commission revenues ⁽¹⁾	—			70.1			.9			71.0
Other revenue	.2			1.6			.3			2.1
Total revenues	(1.0		)	71.7			(28.6		)	42.1
Insurance acquisition expenses	1.4			—			—			1.4
Cost of sales	—			57.4			.7			58.1
General and administrative expenses	11.9			11.2			22.0			45.1
Amortization of other intangible assets	—			2.9			—			2.9
Interest expense	—			.4			.2			.6
Total expenses	13.3			71.9			22.9			108.1
Pre-tax loss	$	(14.3	)	$	(.2	)	$	(51.5	)	$	(66.0	)

⁽¹⁾

Approximately 31% of MediaAlpha’s advertising revenue for the three months ended March 31, 2018 was associated with one customer.