Third-Party Reinsurance (Tables)

6 Months Ended

Jun. 30, 2023

The following table summarizes the effects of reinsurance on written and earned premiums and on losses and LAE for the Ark/WM Outrigger segment for the three and six months ended June 30, 2023 and 2022:


Millions	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
Written premiums:
Direct	$	291.5		$	214.3	$	537.7		$	445.2
Assumed	314.6			189.6		877.8			591.8
Gross written premiums	606.1			403.9		1,415.5			1,037.0
Ceded	(144.9)		(1)	(133.7)		(340.1)		(1)	(223.0)
Net written premiums	$	461.2		$	270.2	$	1,075.4		$	814.0
Earned premiums:
Direct	$	200.6		$	160.7	$	351.0		$	299.4
Assumed	152.5			105.7		314.6			212.3
Gross earned premiums	353.1			266.4		665.6			511.7
Ceded	(59.8)		(2)	(49.1)		(117.2)		(2)	(100.0)
Net earned premiums	$	293.3		$	217.3	$	548.4		$	411.7
Losses and LAE:
Gross	$	195.8		$	138.4	$	358.2		$	321.5


Ceded	(28.3)		(3)	(17.9)		(42.9)		(3)	(79.0)
Net losses and LAE	$	167.5		$	120.5	$	315.3		$	242.5

(1) The ceded written premiums exclude $58.3 and $102.4 ceded by Ark to WM Outrigger Re for the three and six months ended June 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded earned premiums exclude $9.6 and $14.8 ceded by Ark to WM Outrigger Re for the three months and six ended June 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

(3) The ceded loss and LAE exclude $0.4 and $0.6 ceded by Ark to WM Outrigger Re for the three months and six ended June 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

The following table presents the Ark/WM Outrigger segment’s reinsurance recoverables as of June 30, 2023 and December 31, 2022:


Millions	June 30, 2023			December 31, 2022
Reinsurance recoverables on unpaid losses	$	362.7	(1)	$	505.0	(3)
Reinsurance recoverables on paid losses	23.3			31.1
Ceded unearned premiums	283.7		(2)	59.2
Reinsurance recoverables	$	669.7		$	595.3

(1) The reinsurance recoverables on unpaid losses exclude $0.6 ceded by Ark to WM Outrigger Re as of June 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded unearned premiums exclude $87.6 ceded by Ark to WM Outrigger Re as of June 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

(3) The reinsurance recoverables on unpaid losses include $145.4 attributable to TPC Providers as of December 31, 2022, which are collateralized.

The following table presents the Ark/WM Outrigger segment’s gross and net reinsurance recoverables by the reinsurer’s A.M. Best Company, Inc (“A.M. Best”) ratings as of June 30, 2023:


$ in Millions	As of June 30, 2023
A.M. Best Rating(1)	Gross			Collateral			Net		% of Total
A+ or better	$	197.5		$	—		$	197.5	69.2	%
A- to A	78.3			—			78.3		27.4
B++ or lower and not rated	110.2		(2)	100.5		(2)	9.7		3.4
Total	$	386.0		$	100.5		$	285.5	100.0	%

(1) A.M. Best ratings as detailed above are: “A+ or better” (Superior) “A- to A” (Excellent), “B++” (Good).

(2) Excludes $0.6 ceded by Ark to WM Outrigger Re as of June 30, 2023, which eliminates in White Mountains’s consolidated financial statements.