Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

As of March 31, 2022, White Mountains conducted its operations through five segments: (1) HG Global/BAM, (2) Ark, (3) NSM, (4) Kudu and (5) Other Operations. A discussion of White Mountains’s consolidated investment operations is included after the discussion of operations by segment.

White Mountains has made its segment determination based on consideration of the following criteria: (i) the nature of the business activities of each of the Company’s subsidiaries and affiliates; (ii) the manner in which the Company’s subsidiaries and affiliates are organized; (iii) the existence of primary managers responsible for specific subsidiaries and affiliates; and (iv) the organization of information provided to the chief operating decision makers and the Board of Directors. Significant intercompany transactions among White Mountains’s segments have been eliminated herein.

The following tables present the financial information for White Mountains’s segments:

Millions	HG Global/ BAM		Ark		NSM		Kudu		Other Operations		Total
Three Months Ended March 31, 2022
Earned insurance premiums	$	8.4	$	194.4	$	—	$	—	$	—	$	202.8
Net investment income	4.6		1.6		—		12.6		1.8		20.6
Net realized and unrealized investment    gains (losses)	(45.1)		(17.5)		—		22.3		31.9		(8.4)
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		18.8		18.8
Commission revenues	—		—		70.1		—		2.9		73.0
Other revenues	.8		(2.8)		18.4		—		25.7		42.1
Total revenues	(31.3)		175.7		88.5		34.9		81.1		348.9
Loss and loss adjustment expenses	—		122.0		—		—		—		122.0
Insurance and reinsurance acquisition expenses	3.0		49.9		—		—		—		52.9
Cost of sales	—		—		—		—		21.4		21.4
General and administrative expenses	16.3		23.1		54.0		2.7		28.9		125.0
Broker commission expense	—		—		20.6		—		—		20.6
Change in fair value of contingent consideration	—		—		.1		—		—		.1
Amortization of other intangible assets	—		—		9.1		.1		.9		10.1
Loss on assets held for sale	—		—		—		—		—		—
Interest expense	—		3.8		2.1		2.8		.3		9.0
Total expenses	19.3		198.8		85.9		5.6		51.5		361.1
Pre-tax income (loss)	$	(50.6)	$	(23.1)	$	2.6	$	29.3	$	29.6	$	(12.2)

Millions	HG Global/ BAM		Ark		NSM		Kudu		Other Operations		Total
Three Months Ended March 31, 2021
Earned insurance premiums	$	6.4	$	104.6	$	—	$	—	$	—	$	111.0
Net investment income	4.5		.8		—		8.2		7.1		20.6
Net realized and unrealized investment    gains (losses)	(17.9)		1.1		—		15.8		2.1		1.1
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		(41.7)		(41.7)
Commission revenues	—		—		59.6		—		2.3		61.9
Other revenues	.3		2.6		15.2		.1		7.1		25.3
Total revenues	(6.7)		109.1		74.8		24.1		(23.1)		178.2
Losses and loss adjustment expenses	—		66.0		—		—		—		66.0
Insurance and reinsurance acquisition expenses	1.9		36.7		—		—		—		38.6
Cost of sales	—		—		—		—		4.0		4.0
General and administrative expenses	16.4		37.8		46.0		2.5		35.7		138.4
Broker commission expense	—		—		18.9		—		—		18.9
Amortization of other intangible assets	—		—		8.6		.1		.5		9.2
Loss on assets held for sale	—		—		28.7		—		—		28.7
Interest expense	—		1.1		5.9		5.8		.3		13.1
Total expenses	18.3		141.6		108.1		8.4		40.5		316.9
Pre-tax income (loss)	$	(25.0)	$	(32.5)	$	(33.3)	$	15.7	$	(63.6)	$	(138.7)

In compliance with ASC 606, Revenues from Contracts with Customers, the following tables present White Mountains’s total revenues by revenue source for the three months ended March 31, 2022 and 2021:

Millions	HG Global/BAM		Ark		NSM		Kudu		Other Operations		Total
Three Months Ended March 31, 2022
Commission and other revenue
Specialty Transportation	$	—	$	—	$	26.5	$	—	$	—	$	26.5
Pet	—		—		23.4		—		—		23.4
United Kingdom	—		—		12.6		—		—		12.6
Real Estate	—		—		10.5		—		—		10.5
Social Services	—		—		7.0		—		—		7.0
Diversified B2B	—		—		8.5		—		—		8.5
Other	—		—		—		—		2.9		2.9
Total commission and other revenue	—		—		88.5		—		2.9		91.4
Product and service revenues	—		—		—		—		26.4		26.4
Revenues from contracts with customers	—		—		88.5		—		29.3		117.8
Other (1)	(31.3)		175.7		—		34.9		51.8		231.1
Total revenues	$	(31.3)	$	175.7	$	88.5	$	34.9	$	81.1	$	348.9

(1)    Other consists of earned insurance premiums, net investment income, net realized and unrealized investment gains (losses) and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers.

Millions	HG Global/BAM		Ark		NSM		Kudu		Other Operations		Total
Three Months Ended March 31, 2021
Commission and other revenue
Specialty Transportation	$	—	$	—	$	20.7	$	—	$	—	$	20.7
Pet	—		—		17.1		—		—		17.1
United Kingdom	—		—		13.1		—		—		13.1
Real Estate	—		—		9.8		—		—		9.8
Social Services	—		—		6.7		—		—		6.7
Diversified B2B	—		—		7.4		—		—		7.4
Other	—		—		—		—		2.3		2.3
Total commission and other revenue	—		—		74.8		—		2.3		77.1
Product revenues	—		—		—		—		6.5		6.5
Revenues from contracts with customers	—		—		74.8		—		8.8		83.6
Other (1)	(6.7)		109.1		—		24.1		(31.9)		94.6
Total revenues	$	(6.7)	$	109.1	$	74.8	$	24.1	$	(23.1)	$	178.2

(1) Other consists of earned insurance premiums, net investment income, net realized and unrealized investment gains (losses) and other revenues outside the scope of ASC 606, Revenues from Contracts with Customers.