Third-Party Reinsurance (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2023 and 2022:


Millions	Three Months Ended September 30,					Nine Months Ended September 30,
	2023			2022		2023			2022
Written premiums:
Direct	$	189.4		$	118.6	$	727.1		$	563.8
Assumed	61.8			96.9		939.6			688.7
Gross written premiums	251.2			215.5		1,666.7			1,252.5
Ceded	(20.2)		(1)	(22.9)		(360.3)		(1)	(246.0)
Net written premiums	$	231.0		$	192.6	$	1,306.4		$	1,006.5
Earned premiums:
Direct	$	273.1		$	193.5	$	624.1		$	492.9
Assumed	370.0			261.4		684.6			473.7
Gross earned premiums	643.1			454.9		1,308.7			966.6
Ceded	(144.2)		(2)	(108.8)		(261.4)		(2)	(208.8)
Net earned premiums	$	498.9		$	346.1	$	1,047.3		$	757.8
Losses and LAE:
Gross	$	269.3		$	391.4	$	627.5		$	712.9
Ceded	(3.5)		(3)	(177.7)		(46.4)		(3)	(256.7)
Net losses and LAE	$	265.8		$	213.7	$	581.1		$	456.2

(1) The ceded written premiums exclude $6.0 and $108.4 ceded by Ark to WM Outrigger Re for the three and nine months ended September 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded earned premiums exclude $60.6 and $75.4 ceded by Ark to WM Outrigger Re for the three and nine months ended September 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

(3) The ceded loss and LAE exclude $7.3 and $7.9 ceded by Ark to WM Outrigger Re for the three and nine months ended September 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 September 30, 2023 and December 31, 2022:


Millions	September 30, 2023			December 31, 2022
Reinsurance recoverables on unpaid losses	$	352.4	(1)	$	505.0	(3)
Reinsurance recoverables on paid losses	26.3			31.1
Ceded unearned premiums	159.7		(2)	59.2
Reinsurance recoverables	$	538.4		$	595.3

(1) The reinsurance recoverables on unpaid losses exclude $7.9 ceded by Ark to WM Outrigger Re as of September 30, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded unearned premiums exclude $33.0 ceded by Ark to WM Outrigger Re as of September 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 a schedule of written premiums and earned premiums included in the HG Global/BAM segment for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,			Nine Months Ended September 30,
Millions		2023		2022		2023		2022
Written premiums:
Direct		$	16.5	$	18.4	$	37.3	$	44.9
Assumed		—		1.3		—		1.3
Gross written premiums (1)		$	16.5	$	19.7	$	37.3	$	46.2
Earned premiums:
Direct		$	7.4	$	6.5	$	21.4	$	22.0
Assumed		.5		.6		1.9		4.0
Gross earned premiums (1)		$	7.9	$	7.1	$	23.3	$	26.0

(1) There are no ceded premium amounts in the periods presented, and gross earned premiums are equivalent to net written premiums and net earned premiums.

Gross and net reinsurance recoverables by reinsurers ratings

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 September 30, 2023:


$ in Millions	As of September 30, 2023
A.M. Best Rating(1)	Gross			Collateral			Net		% of Total
A+ or better	$	203.7		$	—		$	203.7	69.6	%
A- to A	78.8			—			78.8		26.9
B++ or lower and not rated	96.2		(2)	85.9		(2)	10.3		3.5
Total	$	378.7		$	85.9		$	292.8	100.0	%

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

(2) Excludes $7.9 ceded by Ark to WM Outrigger Re as of September 30, 2023, which eliminates in White Mountains’s consolidated financial statements.