Investments in Unconsolidated Entities

6 Months Ended

Jun. 30, 2020

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 June 30, 2020 and December 31, 2019:



Millions	June 30, 2020		December 31, 2019
Equity method eligible investments, at fair value	$	815.3	$	761.7
Other, at fair value ⁽¹⁾	82.8		94.6
Total other long-term investments	$	898.1	$	856.3

⁽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 June 30, 2020 and December 31, 2019:



	Basic Ownership Interest
Investee	June 30, 2020	December 31, 2019	Instrument Held
PassportCard/DavidShield ⁽¹⁾	53.8%	50.0%	Common shares
MediaAlpha	48.3%	48.3%	Units
durchblicker	45.0%	45.0%	Common shares
Elementum	30.0%	30.0%	Limited partnership interest
Tuckerman Capital Funds	14.3 - 62.3%	17.5 - 62.4%	Limited and general partnership interests
Enlightenment Capital Funds	9.4 - 36.5%	10.0 - 38.4%	Limited and general partnership interests
JAM Partners L.P.	—	11.1%	Limited partnership interest
Kudu Participation Contracts	3.2 - 35.0%	3.2 - 30.0%	Revenue and earnings participation contracts

⁽¹⁾During the three months ending June 30, 2020, White Mountains made an additional $15 investment in PassportCard/DavidShield. See Note 2 — “Significant Transactions”.

As a result of the MediaAlpha Transaction, White Mountains reduced its ownership interest of the basic units outstanding of MediaAlpha from 61.0% to 48.3% (58.9% to 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. For the three and six months ended June 30, 2020, White Mountains recognized $15.0 million and $45.0 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 period from February 26, 2019 to June 30, 2019, MediaAlpha was considered a significant subsidiary. For the period from February 26, 2019 to June 30, 2019, MediaAlpha’s total revenues, total expenses, and net income were $122.7 million, $115.8 million, and $6.9 million.

The following tables present summarized financial information for White Mountains’s combined equity-method eligible investees, including MediaAlpha, Tuckerman IV Fund, L.P., and certain Kudu Participation Contracts, which are considered significant subsidiaries for the six months ending June 30, 2020:



Millions	June 30, 2020		December 31, 2019
Balance sheet data ⁽¹⁾:
Total assets	$	420.5	$	457.0
Total liabilities	$	200.2	$	199.0

⁽¹⁾Financial data for Tuckerman IV Fund, L.P. and Kudu Participation Contracts is reported on a one-quarter lag.



	Three Months Ended					Six Months Ended
	June 30,					June 30,
Millions	2020			2019		2020		2019
Income statement data ⁽¹⁾:
Total revenues	$	118.7		$	93.7	$	307.2	$	178.4
Total expenses	$	131.9		$	83.6	$	273.8	$	171.1
Net income (loss)	$	(21.8	)	$	10.1	$	21.8	$	7.3

⁽¹⁾ Financial data for Tuckerman IV Fund, L.P. and Kudu Participation Contracts is reported on a one-quarter lag.