Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

As of September 30, 2022, White Mountains conducted its operations through four segments: (1) HG Global/BAM, (2) Ark, (3) Kudu, and (4) Other Operations. As a result of the NSM Transaction, the results of operations for NSM, previously reported as a segment, have been classified as discontinued operations in the statements of operations and comprehensive income through the closing of the transaction. Prior period amounts have been reclassified to conform to the current period’s presentation. See Note 19 — “Held for Sale and Discontinued Operations.”

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		Kudu		Other Operations		Total
Three Months Ended September 30, 2022
Earned insurance premiums	$	7.1	$	346.1	$	—	$	—	$	353.2
Net investment income	5.7		4.9		14.8		8.5		33.9
Net realized and unrealized investment    gains (losses)	(38.8)		(14.4)		41.1		(17.3)		(29.4)
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		(18.6)		(18.6)
Commission revenues	—		—		—		3.2		3.2
Other revenues	1.3		6.6		—		33.0		40.9
Total revenues	(24.7)		343.2		55.9		8.8		383.2
Loss and loss adjustment expenses	—		213.7		—		—		213.7
Insurance and reinsurance acquisition expenses	1.7		74.8		—		—		76.5
Cost of sales	—		—		—		25.0		25.0
General and administrative expenses	15.8		26.9		4.5		39.9		87.1
Amortization of other intangible assets	—		—		—		1.4		1.4
Interest expense	2.0		3.7		4.2		.6		10.5
Total expenses	19.5		319.1		8.7		66.9		414.2
Pre-tax income (loss) from continuing operations	$	(44.2)	$	24.1	$	47.2	$	(58.1)	$	(31.0)

Millions	HG Global/ BAM		Ark		Kudu		Other Operations		Total
Three Months Ended September 30, 2021
Earned insurance premiums	$	6.7	$	213.4	$	—	$	—	$	220.1
Net investment income	4.4		.6		9.5		5.0		19.5
Net realized and unrealized investment    gains (losses)	(4.0)		.3		18.9		15.3		30.5
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		(396.8)		(396.8)
Commission revenues	—		—		—		2.4		2.4
Other revenues	.3		3.4		.1		28.1		31.9
Total revenues	7.4		217.7		28.5		(346.0)		(92.4)
Losses and loss adjustment expenses	—		129.2		—		—		129.2
Insurance and reinsurance acquisition expenses	3.0		53.7		—		—		56.7
Cost of sales	—		—		—		24.0		24.0
General and administrative expenses	12.4		21.8		3.3		14.4		51.9
Amortization of other intangible assets	—		—		—		2.0		2.0
Interest expense	—		2.1		1.9		.4		4.4
Total expenses	15.4		206.8		5.2		40.8		268.2
Pre-tax income (loss) from continuing operations	$	(8.0)	$	10.9	$	23.3	$	(386.8)	$	(360.6)

Millions	HG Global/ BAM		Ark		Kudu		Other Operations		Total
Nine Months Ended September 30, 2022
Earned insurance premiums	$	26.0	$	757.8	$	—	$	—	$	783.8
Net investment income	15.1		9.7		41.2		13.6		79.6
Net realized and unrealized investment    gains (losses)	(114.0)		(76.5)		45.8		2.8		(141.9)
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		(113.3)		(113.3)
Commission revenues	—		—		—		8.7		8.7
Other revenues	3.7		10.1		—		89.6		103.4
Total revenues	(69.2)		701.1		87.0		1.4		720.3
Loss and loss adjustment expenses	—		456.2		—		—		456.2
Insurance and reinsurance acquisition expenses	9.5		174.9		—		—		184.4
Cost of sales	—		—		—		68.8		68.8
General and administrative expenses	49.5		79.8		10.2		118.9		258.4
Amortization of other intangible assets	—		—		.2		3.2		3.4
Interest expense	5.4		10.6		10.3		1.2		27.5
Total expenses	64.4		721.5		20.7		192.1		998.7
Pre-tax income (loss) from continuing operations	$	(133.6)	$	(20.4)	$	66.3	$	(190.7)	$	(278.4)

Millions	HG Global/ BAM		Ark		Kudu		Other Operations		Total
Nine Months Ended September 30, 2021
Earned insurance premiums	$	19.6	$	435.8	$	—	$	—	$	455.4
Net investment income	13.2		1.8		26.1		16.1		57.2
Net realized and unrealized investment    gains (losses)	(15.6)		10.3		62.5		34.0		91.2
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		(325.5)		(325.5)
Commission revenues	—		—		—		7.0		7.0
Other revenues	.9		9.4		.2		57.6		68.1
Total revenues	18.1		457.3		88.8		(210.8)		353.4
Losses and loss adjustment expenses	—		247.8		—		—		247.8
Insurance and reinsurance acquisition expenses	6.5		124.4		—		—		130.9
Cost of sales	—		—		—		45.9		45.9
General and administrative expenses	42.7		84.4		9.0		79.4		215.5
Amortization of other intangible assets	—		—		.2		2.9		3.1
Interest expense	—		4.5		9.2		1.1		14.8
Total expenses	49.2		461.1		18.4		129.3		658.0
Pre-tax income (loss) from continuing operations	$	(31.1)	$	(3.8)	$	70.4	$	(340.1)	$	(304.6)