In the normal course of business, Ark may seek to limit losses that may arise from catastrophes or other events by reinsuring certain risks with third-party reinsurers. Ark remains liable for risks reinsured in the event that the reinsurer does not honor its obligations under reinsurance contracts.

The following table summarizes the effects of reinsurance on written and earned premiums and on loss and LAE for the Ark/WM Outrigger segment for the three months ended March 31, 2024 and 2023:


Millions	Three Months Ended March 31,
		2024		2023
Written premiums:
Direct		$	285.0	$	246.2
Assumed		587.1		563.2
Gross written premiums		872.1		809.4
Ceded (1)		(274.1)		(195.2)
Net written premiums		$	598.0	$	614.2
Earned premiums:
Direct		$	194.4	$	150.4
Assumed		192.4		162.1
Gross earned premiums		386.8		312.5
Ceded (2)		(84.0)		(57.4)
Net earned premiums		$	302.8	$	255.1
Loss and loss adjustment expenses:
Gross		$	253.3	$	162.4
Ceded (3)		(73.3)		(14.6)
Net loss and loss adjustment expenses		$	180.0	$	147.8

(1) The ceded written premiums exclude $34.3 and $44.1 ceded by Ark to WM Outrigger Re for the three months ended March 31, 2024 and 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded earned premiums exclude $10.3 and $5.2 ceded by Ark to WM Outrigger Re for the three months ended March 31, 2024 and 2023, which eliminate in White Mountains’s consolidated financial statements.

(3) The ceded loss and loss adjustment expenses exclude $0.7 and $0.2 ceded by Ark to WM Outrigger Re for the three months ended March 31, 2024 and 2023, which eliminate in White Mountains’s consolidated financial statements.

The following table presents the Ark/WM Outrigger segment’s reinsurance recoverables as of March 31, 2024 and December 31, 2023:


Millions	March 31, 2024		December 31, 2023
Reinsurance recoverables on unpaid losses (1)	$	404.5	$	340.8
Reinsurance recoverables on paid losses	20.7		27.4
Ceded unearned premiums (2)	269.8		73.8
Reinsurance recoverables	$	695.0	$	442.0

(1) The reinsurance recoverables on unpaid losses exclude $15.8 and $15.6 ceded by Ark to WM Outrigger Re as of March 31, 2024 and December 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded unearned premiums exclude $24.0 and $5.7 ceded by Ark to WM Outrigger Re as of March 31, 2024 and December 31, 2023,

As reinsurance contracts do not relieve Ark of its obligation to its policyholders, Ark seeks to reduce the credit risk associated with reinsurance balances by avoiding over-reliance on specific reinsurers through the application of concentration limits and thresholds. Ark is selective with its reinsurers, placing reinsurance with only those reinsurers having a strong financial condition. Ark monitors the financial strength of its reinsurers on an ongoing basis.

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 March 31, 2024:


$ in Millions	As of March 31, 2024
A.M. Best Rating(1)	Gross			Collateral			Net		% of Total
A+ or better	$	202.2		$	—		$	202.2	58.1	%
A- to A	139.1			—			139.1		40.0
B++ or lower and not rated	83.9		(2)	77.3		(2)	6.6		1.9
Total	$	425.2		$	77.3		$	347.9	100.0	%

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

(2) Excludes $15.8 ceded by Ark to WM Outrigger Re as of March 31, 2024, which eliminates in White Mountains’s consolidated financial statements.

Ark has an aggregate excess of loss contract with SiriusPoint Ltd. (“SiriusPoint”), which is accounted for using the deposit method and recorded within other assets. Ark earns an annual crediting rate of 3.0%, which is recorded within other revenue. As of March 31, 2024 and December 31, 2023, the carrying value of Ark’s deposit in SiriusPoint, including accrued interest, was $20.6 million and $20.4 million.

See Note 10 — “Municipal Bond Guarantee Insurance” for reinsurance contracts accounted for as deposits related to White Mountains’s financial guarantee business.