Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

As of December 31, 2022, White Mountains conducted its operations through three reportable segments: (1) HG Global/BAM, (2) Ark, and (3) Kudu, with our remaining operating businesses, holding companies and other assets included in Other 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.

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 21 — “Held for Sale and Discontinued Operations.”

As a result of the Ark Transaction, White Mountains began consolidating Ark in its financial statements as of January 1, 2021. See Note 2 — “Significant Transactions”.

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

Millions	HG Global/BAM (1)		Ark		Kudu		Other Operations		Total
Year Ended December 31, 2022
Earned insurance premiums (2)	$	33.3	$	1,043.4	$	—	$	—	$	1,076.7
Net investment income	21.5		16.3		54.4		32.2		124.4
Net realized and unrealized investment gains (losses)	(105.8)		(55.2)		64.1		(1.6)		(98.5)
Net realized and unrealized investment gains (losses)    from investment in MediaAlpha	—		—		—		(93.0)		(93.0)
Commission revenues	—		—		—		11.5		11.5
Other revenues	4.6		5.0		—		127.2		136.8
Total revenues	(46.4)		1,009.5		118.5		76.3		1,157.9
Loss and loss adjustment expenses	—		536.4		—		—		536.4
Insurance acquisition expenses	11.2		239.4		—		—		250.6
Cost of sales	—		—		—		98.6		98.6
General and administrative expenses	69.1		123.5		14.4		169.2		376.2
Amortization of other intangible assets	—		—		.3		4.9		5.2
Interest expense	8.3		15.1		15.0		1.9		40.3
Total expenses	88.6		914.4		29.7		274.6		1,307.3
Pre-tax income (loss)	$	(135.0)	$	95.1	$	88.8	$	(198.3)	$	(149.4)

(1) BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.

(2) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $638.5 and $404.9.

Millions	HG Global/BAM (1)		Ark		Kudu		Other Operations		Total
Year Ended December 31, 2021
Earned insurance premiums (2)	$	26.9	$	637.3	$	—	$	—	$	664.2
Net investment income	17.5		2.9		43.9		18.2		82.5
Net realized and unrealized investment gains (losses)	(22.9)		16.5		89.9		50.7		134.2
Net realized and unrealized investment gains (losses)    from investment in MediaAlpha	—		—		—		(380.3)		(380.3)
Commission revenues	—		—		—		9.6		9.6
Other revenues	1.5		11.8		.2		90.7		104.2
Total revenues	23.0		668.5		134.0		(211.1)		614.4
Losses and loss adjustment expenses	—		314.8				—		314.8
Insurance acquisition expenses	8.3		178.0		—		—		186.3
Cost of sales	—		—		—		69.3		69.3
General and administrative expenses	57.1		115.5		14.5		105.4		292.5
Amortization of other intangible assets	—		—		.3		4.3		4.6
Interest expense	—		7.3		11.7		1.5		20.5
Total expenses	65.4		615.6		26.5		180.5		888.0
Pre-tax income (loss)	$	(42.4)	$	52.9	$	107.5	$	(391.6)	$	(273.6)

(1)    BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.

(2) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $459.3 and $178.0.

Millions	HG Global/BAM (1)		Kudu		Other Operations		Total
Year Ended December 31, 2020
Earned insurance premiums	$	22.8	$	—	$	—	$	22.8
Net investment income	19.5		29.5		82.0		131.0
Net realized and unrealized investment gains (losses)	23.7		15.9		(8.8)		30.8
Net realized and unrealized investment gains from    investment in MediaAlpha	—		—		686.0		686.0
Commission revenues	—		—		8.3		8.3
Other revenues	2.5		.3		13.9		16.7
Total revenues	68.5		45.7		781.4		895.6
Insurance acquisition expenses	7.0		—		—		7.0
Cost of sales	—		—		11.3		11.3
General and administrative expenses	56.8		11.8		139.3		207.9
Amortization of other intangible assets	—		.3		1.3		1.6
Interest expense	—		6.0		1.4		7.4
Total expenses	63.8		18.1		153.3		235.2
Pre-tax income (loss)	$	4.7	$	27.6	$	628.1	$	660.4

(1)    BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes the BAM Surplus Notes and is not reduced by accruals of interest expense on the BAM Surplus Notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the NYDFS.

Millions Selected Balance Sheet Data	HG Global/BAM			Ark		Kudu		Other Operations			Held for Sale		Total
December 31, 2022:
Total investments	$	975.8		$	1,761.9	$	695.9	$	1,736.4		$	—	$	5,170.0
Total assets	$	1,058.5	(1)	$	3,486.2	$	825.9	$	2,018.7	(2)	$	—	$	7,389.3
Total liabilities	$	501.8	(2)	$	2,520.9	$	273.3	$	158.3		$	—	$	3,454.3
Total White Mountains’s common    shareholders’ equity	$	712.0	(2)	$	717.4	$	477.5	$	1,840.0	(2)	$	—	$	3,746.9
Non-controlling interest	$	(155.3)		$	247.9	$	75.1	$	20.4		$	—	$	188.1
December 31, 2021:
Total investments	$	966.5		$	1,562.1	$	669.5	$	1,059.4		$	—	$	4,257.5
Total assets	$	1,044.8	(1)	$	3,027.0	$	727.1	$	1,196.7	(2)	$	1,005.1	$	7,000.7
Total liabilities	$	321.9	(2)	$	2,122.4	$	261.0	$	95.4		$	495.3	$	3,296.0
Total White Mountains’s common    shareholders’ equity	$	838.0	(2)	$	673.9	$	453.7	$	1,089.4	(2)	$	493.1	$	3,548.1
Non-controlling interest	$	(115.1)		$	230.7	$	12.4	$	11.9		$	16.7	$	156.6

(1) As of December 2022 and 2021, total assets in the HG Global/BAM segment reflected the elimination of $340.0 and $364.6 of BAM Surplus Notes issued to HG Global and its subsidiaries, and $157.9 and $157.6 in accrued interest related to the BAM Surplus Notes.

(2) HG Global preferred dividends payable to White Mountains’s subsidiaries is eliminated in White Mountains’s consolidated financial statements. For segment reporting, the HG Global preferred dividends payable to White Mountains’s subsidiaries included within the HG Global/BAM segment are eliminated against the offsetting receivable included within Other Operations and therefore added back to White Mountains’s common shareholders’ equity within the HG Global/BAM segment. As of December 31, 2022 and 2021, the HG Global preferred dividends payable to White Mountains’s subsidiaries was $341.4 and $400.5.