Equity-Method Eligible Investments

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

White Mountains’s equity method eligible investments include certain 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 September 30, 2020 and December 31, 2019:



Millions	September 30, 2020		December 31, 2019
Equity method eligible investments, at fair value	$	1,087.0	$	761.7
Other, at fair value ⁽¹⁾	84.2		94.6
Total other long-term investments	$	1,171.2	$	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 September 30, 2020 and December 31, 2019:



	Basic Ownership Interest
Investee	September 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	14.5 - 62.2%	17.5 - 62.4%	Limited and general partnership interests
Enlightenment Capital Funds	9.6 - 66.7%	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 nine months ending September 30, 2020, White Mountains made an additional $15 million 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 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 including changes in the fair value of White Mountains’s investment in MediaAlpha subsequent to the MediaAlpha Transaction. For the three and nine months ended September 30, 2020, White Mountains recognized $250.0 million and $295.0 million in unrealized investment gains associated with its investment in MediaAlpha.

On October 30, 2020, MediaAlpha completed an initial public offering. As a result, the valuation of White Mountains’s investment in MediaAlpha will be based on the market value of MediaAlpha’s common stock in periods subsequent to the IPO. See Note 18 — “Subsequent Events”.

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 September 30, 2019, MediaAlpha was considered a significant subsidiary. For the period from February 26, 2019 to September 30, 2019, MediaAlpha’s total revenues, total expenses, and net income were $233.1 million, $220.6 million, and $12.5 million.

The following tables present summarized financial information for MediaAlpha which is considered a significant subsidiary for the nine months ending September 30, 2020:



Millions	September 30, 2020		December 31, 2019
Balance sheet data:
Total assets	$	135.7	$	105.4
Total liabilities	$	460.8	$	144.9



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Millions	2020			2019			2020			2019
Income statement data:
Total revenues	$	151.5		$	110.4		$	394.6		$	281.9
Total expenses	$	(144.1	)	$	(102.6	)	$	(368.2	)	$	(274.5	)
Net income	$	7.4		$	7.8		$	26.4		$	7.4