Investments in Unconsolidated Entities

9 Months Ended

Sep. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

The following table presents the carrying values of White Mountains’s equity method eligible investments recorded within other long-term investments as of September 30, 2019 and December 31, 2018:



Millions	September 30, 2019		December 31, 2018
Equity method eligible investments, at fair value	$	673.2	$	269.7
Other ⁽¹⁾	100.5		55.9
Total other long-term investments	$	773.7	$	325.6

⁽¹⁾Consists of other long-term investments that are not equity method eligible.

The following table presents White Mountains’s significant equity method eligible investments as of September 30, 2019 and December 31, 2018:



	Basic Ownership Interest
Investee	September 30, 2019	December 31, 2018	Instrument Held
PassportCard/DavidShield	50.0%	50.0%	Common shares
MediaAlpha ⁽¹⁾	48.3%	n/a	Units
durchblicker	45.0%	45.0%	Common shares
Elementum Holdings, L.P.	30.0%	n/a	Limited partnership interest
Tuckerman Capital Funds ⁽²⁾	18.8 - 62.4%	18.5 - 62.3%	Limited and general partnership interests
Compare.com	18.4%	18.4%	Common shares
JAM Partners L.P.	11.1%	12.3%	Limited partnership interest
Enlightenment Capital Funds	10.0 - 36.5%	10.3 - 36.5%	Limited and general partnership interests
Kudu investments ⁽³⁾	3.2 - 30.0%	n/a	Revenue and earnings participations
Kudu ⁽³⁾	n/a	49.5%	Units

⁽¹⁾ As of December 31, 2018, MediaAlpha was a majority-owned consolidated subsidiary of White Mountains. See Note 2 — “Significant Transactions”

⁽²⁾ Includes White Mountains’s direct investment in Galvanic Applied Sciences.

⁽³⁾ As of September 30, 2019 White Mountains consolidates Kudu. See Note 2 — “Significant Transactions”.

As a result of the MediaAlpha Transaction, White Mountains reduced its ownership interest in MediaAlpha to 48.3% of the basic units outstanding (42.0% on a fully diluted, fully converted basis). White Mountains’s remaining ownership interest in MediaAlpha no longer meets the criteria for a controlling ownership interest and, accordingly, White Mountains deconsolidated MediaAlpha as of February 26, 2019. Upon deconsolidation, White Mountains’s investment in MediaAlpha met the criteria to be accounted for under the equity method or under the fair value option. White Mountains elected the fair value option and the investment in MediaAlpha was initially measured at its estimated fair value of $114.7 million as of March 31, 2019, with the change in fair value of $114.7 million recognized as an unrealized investment gain. For the three and nine months ended September 30, 2019, White Mountains recognized $35.3 million and $150.0 million in unrealized investment gains associated with its investment in MediaAlpha. White Mountains’s consolidated statement of comprehensive income and its segment disclosures include MediaAlpha’s results of operations for the period from January 1, 2019 through February 26, 2019. See Note 2 — “Significant Transactions”.

For the three months ended September 30, 2019, MediaAlpha’s total revenues, total expenses, gross profit and pre-tax income were $110.5 million, $102.1 million, $18.4 million and $8.4 million. For the period from February 26, 2019 to September 30, 2019, MediaAlpha’s total revenues, total expenses, gross profit and pre-tax income were $233.2 million, $217.9 million, $38.8 million and $15.3 million. As of September 30, 2019, MediaAlpha’s total assets and total liabilities were $103.4 million and $145.8 million.