Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of total income tax benefit (expense)

December 31, 2023, 2022 and 2021:


	Year Ended December 31,
Millions	2023		2022		2021
Current income tax (expense) benefit:
U.S. federal	$	(12.6)	$	(16.9)	$	(4.8)
State	(2.2)		(4.5)		(2.1)
Non-U.S.	(16.6)		(7.1)		(2.8)
Total current income tax (expense) benefit	(31.4)		(28.5)		(9.7)
Deferred income tax (expense) benefit:
U.S. federal	(13.2)		(7.3)		(13.9)
State	(3.8)		(1.8)		(7.0)
Non-U.S.	63.9		(3.8)		(13.8)
Total deferred income tax (expense) benefit	46.9		(12.9)		(34.7)
Total income tax (expense) benefit	$	15.5	$	(41.4)	$	(44.4)

Schedule of U.S. federal statutory income tax rate and actual effective tax rate on pre-tax income

The following table presents a reconciliation of taxes calculated for 2023, 2022 and 2021 using the 21% U.S. federal statutory rate (the tax rate at which the majority of White Mountains’s worldwide operations are taxed) to the income tax (expense) benefit on pre-tax income (loss):


	Year Ended December 31,
Millions	2023		2022		2021
Tax (expense) benefit at the U.S. statutory rate	$	(118.7)	$	31.4	$	57.5
Differences in taxes resulting from:
Non-U.S. earnings, net of foreign taxes	103.7		(41.2)		(78.2)
Bermuda corporate income tax	68.0		—		—
Change in valuation allowance	(30.2)		(19.6)		(2.0)
State taxes	(8.2)		(2.8)		(7.3)
Noncontrolling interest	6.8		3.4		2.1
Member’s surplus contributions	(5.7)		(6.2)		(5.6)
Withholding tax	(4.1)		(3.1)		(.3)
Tax rate changes	(.6)		(.4)		(10.9)
Officer compensation	(.2)		(1.0)		(1.5)



Tax exempt interest and dividends	.2		.2		.2



Other, net	4.5		(2.1)		1.6


Total income tax (expense) benefit on pre-tax income (loss)	$	15.5	$	(41.4)	$	(44.4)

Schedule of components of deferred income tax assets and liabilities

The following table presents an outline of the significant components of White Mountains’s U.S. federal, state and non-U.S. deferred tax assets and liabilities:


	December 31,
Millions	2023		2022
Deferred tax assets related to:
U.S. federal and state net operating and capital loss carryforwards	$	87.6	$	85.4
Non-U.S. net operating loss carryforwards	68.2		36.1
Intangible assets	51.5		—
Incentive compensation	25.4		21.4
Unearned premiums	18.2		—
Accrued interest	10.1		8.8
Loss reserves	8.4		—
Deferred acquisition costs	3.7		8.0
Tax credit carryforwards	3.3		1.8
Net unrealized investment losses	—		4.7







Other items	1.0		1.3
Total gross deferred tax assets	277.4		167.5
Less: valuation allowances	116.1		94.3
Total net deferred tax assets	161.3		73.2
Deferred tax liabilities related to:

Member’s surplus contributions	82.2		71.3
Purchase accounting	43.9		43.9
Investment basis difference	40.9		33.9


Deferred underwriting	18.3		9.7
Net unrealized investment gains (losses)	15.5		—

Other items	1.2		2.2
Total deferred tax liabilities	202.0		161.0
Net deferred tax asset (liability)	$	(40.7)	$	(87.8)

Schedule of net operating and capital loss carryforwards

The following table presents net operating loss and capital loss carryforwards as of December 31, 2023, the expiration dates and the deferred tax assets thereon:


	December 31, 2023
Millions	United States		Luxembourg		United Kingdom		Israel		Total

2024-2028	$	—	$	—	$	—	$	—	$	—
2029-2033	90.8		—		—		—		90.8
2034-2043	304.1		188.1		—		—		492.2
No expiration date	1.9		—		3.2		89.1		94.2
Total	$	396.8	$	188.1	$	3.2	$	89.1	$	677.2
Gross deferred tax asset	$	87.6	$	46.9	$	.8	$	20.5	$	155.8
Valuation allowance	(87.6)		(46.9)		(.8)		(20.5)		(155.8)
Net deferred tax asset	$	—	$	—	$	—	$	—	$	—