Equity-Method Eligible Investments

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

White Mountains’s equity method eligible investments include certain investments in unconsolidated entities, Kudu’s Participation Contracts, private equity funds and hedge funds in which White Mountains has the ability to exert significant influence over the investee’s operating and financial policies.

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



	December 31,
Millions	2019		2018
Equity method eligible investments, at fair value	$	761.7	$	269.7
Other ⁽¹⁾	94.6		55.9
Total other long-term investments	$	856.3	$	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 December 31, 2019 and 2018:



	Basic Ownership Interest
Investee	December 31, 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
Compare.com	18.4%	18.4%	Common shares
Tuckerman Capital Funds ⁽²⁾	17.5 - 62.4%	18.5 - 62.3%	Limited and general partnership interests
JAM Partners L.P.	11.1%	12.3%	Limited partnership interest
Enlightenment Capital Funds	10.0 - 38.4%	10.3 - 36.5%	Limited and general partnership interests
Kudu’s Participation Contracts ⁽³⁾	3.2 - 30.0%	n/a	Revenue and earnings participation contracts
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⁾ As of December 31, 2018, includes White Mountains’s direct investment in Galvanic Applied Sciences.

⁽³⁾ As of December 31, 2019 White Mountains consolidates Kudu. See Note 2 — “Significant Transactions”.

The following tables present aggregated summarized financial information for White Mountains’s investments in equity method eligible unconsolidated entities, excluding MediaAlpha:



	December 31,
Millions	2019		2018
Balance sheet data ⁽¹⁾:
Total assets	$	1,959.2	$	1,373.3
Total liabilities	$	653.2	$	509.2

⁽¹⁾Financial data for White Mountains’s equity method eligible investees is generally reported on a one-quarter lag.



	Year Ended December 31,
Millions	2019		2018		2017
Income statement data ⁽¹⁾:
Revenues	$	344.6	$	226.0	$	143.3
Expenses	$	88.3	$	141.4	$	80.5
Net Income	$	255.1	$	83.6	$	65.3

⁽¹⁾Financial data for White Mountains’s equity method eligible investees is generally reported on a one-quarter lag.

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 twelve months ended December 31, 2019, White Mountains recognized $180.0 million in unrealized investment gains associated with its investment in MediaAlpha including changes in the fair value of White Mountains’s investment in MediaAlpha subsequent to the MediaAlpha Transaction. 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 period from February 26, 2019 to December 31, 2019, MediaAlpha’s total revenues, total expenses, gross profit and pre-tax income were $359.2 million, $334.3 million, $59.7 million and $24.9 million.

The following tables present summarized financial information for MediaAlpha:



	December 31,
Millions	2019		2018
Balance sheet data:
Total assets	$	106.9	$	88.5
Total liabilities	$	144.6	$	46.9



	Year Ended December 31,
Millions	2019		2018		2017
Income statement data:
Total revenues	$	407.9	$	297.1	$	163.2
Total expenses	$	389.0	$	288.2	$	163.5
Net income (loss)	$	18.9	$	8.9	$	(0.3	)