Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

As of June 30, 2023, White Mountains conducted its operations through three reportable segments: (1) HG Global/BAM, (2) Ark/WM Outrigger, 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.

During the fourth quarter of 2022, Ark sponsored the formation of Outrigger Re Ltd. to provide reinsurance protection on Ark’s Bermuda global property catastrophe excess of loss portfolio written in calendar year 2023. White Mountains consolidates its segregated account of Outrigger Re Ltd., WM Outrigger Re, in its financial statements. WM Outrigger Re’s quota share reinsurance agreement with GAIL eliminates in White Mountains’s consolidated financial statements. WM Outrigger Re exclusively provides reinsurance protection to Ark. As a result, WM Outrigger Re was aggregated with Ark within the Ark/WM Outrigger segment starting in 2023. See Note 2 — “Significant Transactions.” 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. See Note 19 — “Held for Sale and Discontinued Operations.” Prior period amounts have been reclassified to conform to the current period’s presentation.

The following tables present the financial information for White Mountains’s segments for the three and six months ended June 30, 2023 and 2022:

	HG Global/BAM				Ark/WM Outrigger						Other Operations		Total
Millions	HG Global		BAM (1)		Ark		WM Outrigger Re		Kudu
Three Months Ended June 30, 2023
Earned insurance premiums	$	6.4	$	1.3	$	283.7	$	9.6	$	—	$	—	$	301.0
Net investment income	4.1		3.5		11.2		2.5		14.7		7.0		43.0
Net investment income (expense) - BAM    Surplus Note interest	6.5		(6.5)		—		—		—		—		—
Net realized and unrealized investment gains (losses)	(5.7)		(4.2)		18.0		—		4.6		76.0		88.7
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		(77.3)		(77.3)
Commission revenues	—		—		—		—		—		3.2		3.2
Other revenues	—		.5		(2.0)		—		—		21.3		19.8
Total revenues	11.3		(5.4)		310.9		12.1		19.3		30.2		378.4
Loss and loss adjustment expenses	—		—		167.1		.4		—		—		167.5
Acquisition expenses	1.8		(.3)		59.4		2.0		—		—		62.9
Cost of sales	—		—		—		—		—		11.6		11.6
General and administrative expenses	.3		14.6		34.9		—		4.0		48.8		102.6
Change in fair value of contingent consideration	—		—		2.2		—		—		—		2.2
Interest expense	2.5		—		5.2		—		5.3		1.2		14.2
Total expenses	4.6		14.3		268.8		2.4		9.3		61.6		361.0
Pre-tax income (loss) from continuing operations	$	6.7	$	(19.7)	$	42.1	$	9.7	$	10.0	$	(31.4)	$	17.4

(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.

	HG Global/BAM				Ark/WM Outrigger				Other Operations
Millions	HG Global		BAM (1)		Ark		Kudu				Total
Three Months Ended June 30, 2022
Earned insurance premiums	$	8.7	$	1.8	$	217.3	$	—	$	—	$	227.8
Net investment income	2.2		2.6		3.2		13.8		3.3		25.1
Net investment income (expense) - BAM    Surplus Note interest	3.0		(3.0)		—		—		—		—
Net realized and unrealized investment gains (losses)	(14.7)		(15.4)		(44.6)		(17.6)		(11.8)		(104.1)
Net realized and unrealized investment gains   (losses) from investment in MediaAlpha	—		—		—		—		(113.5)		(113.5)
Commission revenues	—		—		—		—		2.6		2.6
Other revenues	.1		1.5		6.3		—		30.9		38.8
Total revenues	(.7)		(12.5)		182.2		(3.8)		(88.5)		76.7
Losses and loss adjustment expenses	—		—		120.5		—		—		120.5
Acquisition expenses	3.4		1.4		50.2		—		—		55.0
Cost of sales	—		—		—		—		22.4		22.4
General and administrative expenses	.8		16.6		29.7		3.1		51.0		101.2
Change in fair value of contingent consideration	—		—		.1		—		—		.1
Interest expense	3.4		—		3.1		3.3		.3		10.1
Total expenses	7.6		18.0		203.6		6.4		73.7		309.3
Pre-tax income (loss) from continuing operations	$	(8.3)	$	(30.5)	$	(21.4)	$	(10.2)	$	(162.2)	$	(232.6)

(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.

	HG Global/BAM				Ark/WM Outrigger						Other Operations
Millions	HG Global		BAM (1)		Ark		WM Outrigger Re		Kudu				Total
Six Months Ended June 30, 2023
Earned insurance premiums	$	12.8	$	2.6	$	533.6	$	14.8	$	—	$	—	$	563.8
Net investment income	8.1		6.7		19.6		4.7		28.9		14.0		82.0
Net investment income (expense) -   BAM Surplus Note interest	13.1		(13.1)		—		—		—		—		—
Net realized and unrealized investment    gains (losses)	2.2		4.9		42.5		—		34.2		117.8		201.6
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		7.9		7.9
Commission revenues	—		—		—		—		—		6.5		6.5
Other revenues	—		1.3		(4.7)		—		—		51.9		48.5
Total revenues	36.2		2.4		591.0		19.5		63.1		198.1		910.3
Loss and loss adjustment expenses	—		—		314.7		.6		—		—		315.3
Acquisition expenses	3.6		.6		118.3		2.9		—		—		125.4
Cost of sales	—		—		—		—		—		25.5		25.5
General and administrative expenses	1.4		30.8		70.0		.1		7.8		88.5		198.6
Change in fair value of contingent consideration	—		—		(.2)		—		—		—		(.2)
Interest expense	7.0		—		10.2		—		10.0		2.0		29.2
Total expenses	12.0		31.4		513.0		3.6		17.8		116.0		693.8
Pre-tax income (loss) from continuing operations	$	24.2	$	(29.0)	$	78.0	$	15.9	$	45.3	$	82.1	$	216.5

(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.

	HG Global/BAM				Ark/WM Outrigger				Other Operations
Millions	HG Global		BAM (1)		Ark		Kudu				Total
Six Months Ended June 30, 2022
Earned insurance premiums	$	15.6	$	3.3	411.7		$	—	$	—	$	430.6
Net investment income	4.3		5.1		4.8		26.4		5.1		45.7
Net investment income (expense) -    BAM Surplus Note interest	5.9		(5.9)		—		—		—		—
Net realized and unrealized investment    gains (losses)	(38.2)		(37.0)		(62.1)		4.7		20.1		(112.5)
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		(94.7)		(94.7)
Commission revenues	—		—		—		—		5.5		5.5
Other revenues	.2		2.2		3.5		—		56.6		62.5
Total revenues	(12.2)		(32.3)		357.9		31.1		(7.4)		337.1
Losses and loss adjustment expenses	—		—		242.5		—		—		242.5
Acquisition expenses	6.0		1.8		100.1		—		—		107.9
Cost of sales	—		—		—		—		43.8		43.8
General and administrative expenses	1.5		32.2		50.7		5.9		80.8		171.1
Change in fair value of contingent consideration	—		—		2.2		—		—		2.2
Interest expense	3.4		—		6.9		6.1		.6		17.0
Total expenses	10.9		34.0		402.4		12.0		125.2		584.5
Pre-tax income (loss) from continuing operations	$	(23.1)	$	(66.3)	$	(44.5)	$	19.1	$	(132.6)	$	(247.4)

(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.