Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

As of March 31, 2024, White Mountains conducted its operations through four reportable segments: (1) Ark/WM Outrigger, (2) HG Global/BAM, (3) Kudu and (4) Bamboo, 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.

As a result of the Bamboo Transaction, White Mountains began consolidating Bamboo in its financial statements as of January 2, 2024. See Note 2 — “Significant Transaction”.

The following tables present the financial information for White Mountains’s segments for the three months ended March 31, 2024 and 2023:

	Ark/WM Outrigger				HG Global/BAM								Other Operations
Millions	Ark		WM Outrigger Re		HG Global		BAM (2)		Kudu		Bamboo				Total
Three Months Ended March 31, 2024
Earned insurance premiums (1)	$	292.5	$	10.3	$	6.5	$	1.3	$	—	$	8.4	$	—	$	319.0
Net investment income (3)	17.0		2.9		5.4		4.3		17.2		.3		9.9		57.0
Net investment income (expense) -   BAM Surplus Note interest	—		—		6.6		(6.6)		—		—		—		—
Net realized and unrealized investment    gains (losses) (3)	10.6		—		(7.3)		(2.8)		(6.5)		(.1)		22.2		16.1
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		—		210.7		210.7
Commission and fee revenues	—		—		—		—		—		21.9		3.6		25.5
Other revenues	3.5		—		—		.5		—		.6		14.4		19.0
Total revenues	323.6		13.2		11.2		(3.3)		10.7		31.1		260.8		647.3
Loss and loss adjustment expenses	179.3		.7		—		—		—		5.8		—		185.8
Acquisition expenses	63.7		2.6		1.8		.4		—		3.1		—		71.6
Cost of sales	—		—		—		—		—		—		7.6		7.6
Broker commission expenses	—		—		—		—		—		9.3		—		9.3
General and administrative expenses	42.2		—		.4		16.9		3.4		12.0		50.3		125.2
Change in fair value of contingent    consideration	—		—		—		—		—		—		—		—
Interest expense	5.4		—		3.5		—		5.6		—		.7		15.2
Total expenses	290.6		3.3		5.7		17.3		9.0		30.2		58.6		414.7
Pre-tax income (loss)	$	33.0	$	9.9	$	5.5	$	(20.6)	$	1.7	$	.9	$	202.2	$	232.6

(1) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $177.4 and $115.1.

(2) 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.

(3) Bamboo’s net investment income and net realized and unrealized investment gains (losses) are included in other revenues in the consolidated statement of operations.

	Ark/WM Outrigger				HG Global/BAM						Other Operations
Millions	Ark		WM Outrigger Re		HG Global		BAM (2)		Kudu				Total
Three Months Ended March 31, 2023
Earned insurance premiums (1)	$	249.9	$	5.2	$	6.4	$	1.3	$	—	$	—	$	262.8
Net investment income	8.4		2.2		4.0		3.2		14.2		7.0		39.0
Net investment income (expense) -    BAM Surplus Note interest	—		—		6.6		(6.6)		—		—		—
Net realized and unrealized investment    gains (losses)	24.5		—		7.9		9.1		29.6		41.8		112.9
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		85.2		85.2
Commission and fee revenues	—		—		—		—		—		3.3		3.3
Other revenues	(2.7)		—		—		.8		—		30.6		28.7
Total revenues	280.1		7.4		24.9		7.8		43.8		167.9		531.9
Loss and loss adjustment expenses	147.6		.2		—		—		—		—		147.8
Acquisition expenses	58.9		.9		1.8		.9		—		—		62.5
Cost of sales	—		—		—		—		—		13.9		13.9
General and administrative expenses	35.1		.1		1.1		16.2		3.8		39.7		96.0
Change in fair value of contingent consideration	(2.4)		—		—		—		—		—		(2.4)
Interest expense	5.0		—		4.5		—		4.7		.8		15.0
Total expenses	244.2		1.2		7.4		17.1		8.5		54.4		332.8
Pre-tax income (loss)	$	35.9	$	6.2	$	17.5	$	(9.3)	$	35.3	$	113.5	$	199.1

(1) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $146.0 and $104.0.

(2) 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.