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Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets

White Mountains accounts for purchases of businesses using the acquisition method. Under the acquisition method, White Mountains recognizes and measures the assets acquired, liabilities assumed and any noncontrolling interest in the acquired entities at their acquisition date fair values. The estimated acquisition date fair values, generally consisting of intangible assets and liabilities for contingent consideration, may be recorded at provisional amounts in circumstances where the information necessary to complete the acquisition accounting is not available at the reporting date. Any such provisional amounts are finalized as measurement period adjustments within one year of the acquisition date.
The following table presents the acquisition date fair values, accumulated amortization and net carrying values for other intangible assets and goodwill, by company as of March 31, 2020 and December 31, 2019:
$ in Millions
 
Weighted Average Economic
 Life
(in years)
 
March 31, 2020
 
December 31, 2019
 
Acquisition Date Fair Value
 
Accumulated Amortization
 
Net Carrying Value
 
Acquisition Date Fair Value
 
Accumulated Amortization
 
Impairments
 
Net Carrying Value
Goodwill:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NSM (1)
 
N/A
 
$
379.1

 
$
—

 
$
379.1

 
$
381.6

 
$
—

 
$
—

 
$
381.6

Kudu
 
N/A
 
7.6

 
—

 
7.6

 
7.6

 
—

 
—

 
7.6

Other Operations
 
N/A
 
5.7

 
—

 
5.7

 
13.1

 
—

 
7.6

 
5.5

Total goodwill
 
 
 
392.4

 
—

 
392.4

 
402.3

 
—

 
7.6

 
394.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NSM (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Customer relationships
 
9
 
120.1

 
23.5

 
96.6

 
121.7

 
19.8

 
1.4

 
100.5

   Trade names
 
19
 
61.2

 
5.8

 
55.4

 
61.9

 
5.3

 
.4

 
56.2

   Information
      technology platform
 
5
 
3.1

 
1.3

 
1.8

 
3.9

 
1.4

 
.6

 
1.9

Renewal rights
 
12
 
82.5

 
1.0

 
81.5

 
82.5

 
.7

 
—

 
81.8

Other
 
3
 
1.7

 
.9

 
.8

 
1.7

 
.7

 
—

 
1.0

      Subtotal
 
 
 
268.6

 
32.5

 
236.1

 
271.7

 
27.9

 
2.4

 
241.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Kudu
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Trade names
 
7
 
2.2

 
.3

 
1.9

 
2.2

 
.2

 
—

 
2.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Trade names
 
10
 
1.0

 
.1

 
.9

 
1.7

 
.5

 
.2

 
1.0

   Customer relationships
 
11
 
7.2

 
.5

 
6.7

 
7.2

 
.4

 
—

 
6.8

   Information
      technology platform
 
5
 
—

 
—

 
—

 
.5

 
.3

 
.2

 
—

Insurance Licenses
 
N/A
 
8.6

 
—

 
8.6

 
8.6

 
—

 
—

 
8.6

Other
 
5
 
.2

 
—

 
.2

 
.2

 
—

 
—

 
.2

       Subtotal
 
 
 
17.0

 
.6

 
16.4

 
18.2

 
1.2

 
.4

 
16.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total other intangible assets
 
287.8

 
33.4

 
254.4

 
292.1

 
29.3

 
2.8

 
260.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total goodwill and other
   intangible assets 
 
$
680.2

 
$
33.4

 
646.8

 
$
694.4

 
$
29.3

 
10.4

 
654.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and other intangible assets attributed to
   non-controlling interests
 
(23.5
)
 
 
 
 
 
 
 
(23.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and other intangible assets included in
   White Mountains’s common shareholders’ equity
 
$
623.3

 
 
 
 
 
 
 
$
631.3

(1) As of March 31, 2020, NSM’s goodwill and intangible assets included $(2.5) and $(0.5) of the effect of foreign currency translation. As of December 31, 2019, NSM’s goodwill and intangible assets included $1.4 and $0.7 of the effect of foreign currency translation.


The goodwill recognized for the entities shown above is attributed to expected future cash flows. The acquisition date fair values of other intangible assets with finite lives are estimated using income approach techniques, which use future expected cash flows to develop a discounted present value amount.
The multi-period-excess-earnings method estimates fair value using the present value of the incremental after-tax cash flows attributable solely to the other intangible asset over its remaining life. This approach was used to estimate the fair value of other intangible assets associated with trade names, customer relationships and contracts and information technology.
The relief-from-royalty method was used to estimate fair value for other intangible assets that relate to rights that could be obtained via a license from a third-party owner. Under this method, the fair value is estimated using the present value of license fees avoided by owning rather than leasing the asset. This technique was used to estimate the fair value of domain names, certain trademarks and brand names.
The with-or-without method estimates the fair value of an other intangible asset that provides an incremental benefit. Under this method, the fair value of the other intangible asset is calculated by comparing the value of the entity with and without the other intangible asset. This approach was used to estimate the fair value of favorable lease terms.
The following table presents a summary of the acquisition date fair values of goodwill and other intangible assets for
acquisitions completed from January 1, 2019 through March 31, 2020:

$ in Millions
 
 
 
 
Acquisition of subsidiary/ asset
 
Goodwill and
Other intangible asset (1) 
 
Acquisition Date
Embrace (2)
 
$
67.6

 
April 1, 2019
Renewal Rights (3)
 
82.5

 
June 28, 2019
Total NSM segment
 
$
150.1

 
 
Kudu Transaction
 
$
9.8

 
April 4, 2019
Other Operations
 
$
22.6

 
Various
(1) Acquisition date fair values include the effect of adjustments during the measurement period and excludes the effect of foreign currency translation subsequent to the acquisition date.
(2) Exclude $3.4 of software classified within other assets.
(3) NSM’s purchase of the Renewal Rights from AIG was an asset acquisition.

On an annual basis beginning no later than the interim period included in the one-year anniversary of an acquisition, White Mountains evaluates goodwill for potential impairment. Between annual evaluations, White Mountains considers changes in circumstances or events subsequent to the most recent evaluation that may indicate that an impairment may exist and, if necessary will perform an interim review for potential impairment. There were no impairments recognized during the three month periods ended March 31, 2020 and 2019 and no events or changes in circumstances that would indicate the existence of an impairment of goodwill or other intangible asset for any acquired entity.
The following tables presents the change in goodwill and other intangible assets for the three months ended March 31, 2020 and 2019:
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Millions
 
Goodwill
 
Other Intangible Assets
 
Total Goodwill and Other Intangible Assets
 
Goodwill
 
Other Intangible Assets
 
Total Goodwill and Other Intangible Assets
Beginning balance
 
$
394.7

 
$
260.0

 
654.7

 
$
379.9

 
$
157.6

 
$
537.5

Deconsolidation of MediaAlpha
 
—

 
—

 
—

 
(18.3
)
 
(23.5
)
 
(41.8
)
Attribution of acquisition date fair value estimates
   between goodwill and other intangible assets
 
—

 
—

 
—

 
(26.8
)
 
26.8

 
—

Acquisitions of businesses
 
—

 
—

 
—

 
13.4

 
—

 
13.4

Foreign currency translation
 
(2.5
)
 
(.5
)
 
(3.0
)
 
1.2

 
.3

 
1.5

Adjustments to reflect acquisition date fair value
 
.2

 
—

 
.2

 
.3

 
5.9

 
6.2

Amortization
 
—

 
(5.1
)
 
(5.1
)
 
—

 
(6.6
)
 
(6.6
)
Ending balance
 
$
392.4

 
$
254.4

 
$
646.8

 
$
349.7

 
$
160.5

 
$
510.2