Segment Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

As of June 30, 2024, White Mountains conducted its operations through four reportable segments: (1) Ark/WM Outrigger, (2) HG Global/BAM, (3) Kudu and (4) Bamboo, with its 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 and six months ended June 30, 2024 and 2023:

	Ark/WM Outrigger				HG Global/BAM								Other Operations		Total
Millions	Ark		WM Outrigger Re		HG Global		BAM (1)		Kudu		Bamboo
Three Months Ended June 30, 2024
Earned insurance premiums (2)	$	310.8	$	7.5	$	7.5	$	1.5	$	—	$	8.0	$	8.6	$	343.9
Net investment income (3)	19.3		3.0		5.9		4.5		15.7		.6		8.4		57.4
Net investment income (expense) - BAM    Surplus Note interest	—		—		6.6		(6.6)		—		—		—		—
Net realized and unrealized investment    gains (losses) (3)	20.3		—		(2.0)		(2.3)		54.5		—		8.5		79.0
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		—		(139.2)		(139.2)
Commission and fee revenues	—		—		—		—		—		32.7		3.4		36.1
Other revenues	2.4		—		—		.6		—		.7		14.5		18.2
Total revenues	352.8		10.5		18.0		(2.3)		70.2		42.0		(95.8)		395.4
Loss and loss adjustment expenses	176.0		(.3)		—		—		—		4.3		3.9		183.9
Acquisition expenses	65.9		2.3		2.2		—		—		2.9		2.6		75.9
Cost of sales	—		—		—		—		—		—		7.0		7.0
Broker commission expenses	—		—		—		—		—		12.7		—		12.7
General and administrative expenses	42.8		.1		.6		16.6		3.5		15.7		43.2		122.5
Change in fair value of contingent consideration	13.3		—		—		—		—		—		—		13.3
Interest expense	4.7		—		4.1		—		5.4		—		.6		14.8
Total expenses	302.7		2.1		6.9		16.6		8.9		35.6		57.3		430.1
Pre-tax income (loss)	$	50.1	$	8.4	$	11.1	$	(18.9)	$	61.3	$	6.4	$	(153.1)	$	(34.7)

(1) 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.

(2) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $193.7 and $117.1.

(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 (1)		Kudu				Total
Three Months Ended June 30, 2023
Earned insurance premiums (2)	$	283.7	$	9.6	$	6.4	$	1.3	$	—	$	—	$	301.0
Net investment income	11.2		2.5		4.1		3.5		14.7		7.0		43.0
Net investment income (expense) - BAM    Surplus Note interest	—		—		6.5		(6.5)		—		—		—
Net realized and unrealized investment gains (losses)	18.0		—		(5.7)		(4.2)		4.6		76.0		88.7
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		(77.3)		(77.3)
Commission and fee revenues	—		—		—		—		—		3.2		3.2
Other revenues	(2.0)		—		—		.5		—		21.3		19.8
Total revenues	310.9		12.1		11.3		(5.4)		19.3		30.2		378.4
Loss and loss adjustment expenses	167.1		.4		—		—		—		—		167.5
Acquisition expenses	59.4		2.0		1.8		(.3)		—		—		62.9
Cost of sales	—		—		—		—		—		11.6		11.6
General and administrative expenses	34.9		—		.3		14.6		4.0		48.8		102.6
Change in fair value of contingent consideration	2.2		—		—		—		—		—		2.2
Interest expense	5.2		—		2.5		—		5.3		1.2		14.2
Total expenses	268.8		2.4		4.6		14.3		9.3		61.6		361.0
Pre-tax income (loss)	$	42.1	$	9.7	$	6.7	$	(19.7)	$	10.0	$	(31.4)	$	17.4

(1) 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.

(2) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $168.8 and $114.9.

	Ark/WM Outrigger				HG Global/BAM								Other Operations
Millions	Ark		WM Outrigger Re		HG Global		BAM (1)		Kudu		Bamboo				Total
Six Months Ended June 30, 2024
Earned insurance premiums (2)	$	603.3	$	17.8	$	14.0	$	2.8	$	—	$	16.4	$	8.6	$	662.9
Net investment income (3)	36.3		5.9		11.3		8.8		32.9		.9		18.3		114.4
Net investment income (expense) - BAM    Surplus Note interest	—		—		13.2		(13.2)		—		—		—		—
Net realized and unrealized investment    gains (losses) (3)	30.9		—		(9.3)		(5.1)		48.0		(.1)		30.7		95.1
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		—		71.5		71.5
Commission and fee revenues	—		—		—		—		—		54.6		7.0		61.6
Other revenues	5.9		—		—		1.1		—		1.3		28.9		37.2
Total revenues	676.4		23.7		29.2		(5.6)		80.9		73.1		165.0		1,042.7
Loss and loss adjustment expenses	355.3		.4		—		—		—		10.1		3.9		369.7
Acquisition expenses	129.6		4.9		4.0		.4		—		6.0		2.6		147.5
Cost of sales	—		—		—		—		—		—		14.6		14.6
Broker commission expenses	—		—		—		—		—		22.0		—		22.0
General and administrative expenses	85.0		.1		1.0		33.5		6.9		27.7		93.5		247.7
Change in fair value of contingent    consideration	13.3		—		—		—		—		—		—		13.3
Interest expense	10.1		—		7.6		—		11.0		—		1.3		30.0
Total expenses	593.3		5.4		12.6		33.9		17.9		65.8		115.9		844.8
Pre-tax income (loss)	$	83.1	$	18.3	$	16.6	$	(39.5)	$	63.0	$	7.3	$	49.1	$	197.9

(1) 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.

(2) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $371.1 and $232.2.

(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 (1)		Kudu				Total
Six Months Ended June 30, 2023
Earned insurance premiums (2)	$	533.6	$	14.8	$	12.8	$	2.6	$	—	$	—	$	563.8
Net investment income	19.6		4.7		8.1		6.7		28.9		14.0		82.0
Net investment income (expense) - BAM    Surplus Note interest	—		—		13.1		(13.1)		—		—		—
Net realized and unrealized investment    gains (losses)	42.5		—		2.2		4.9		34.2		117.8		201.6
Net realized and unrealized investment gains    (losses) from investment in MediaAlpha	—		—		—		—		—		7.9		7.9
Commission and fee revenues	—		—		—		—		—		6.5		6.5
Other revenues	(4.7)		—		—		1.3		—		51.9		48.5
Total revenues	591.0		19.5		36.2		2.4		63.1		198.1		910.3
Loss and loss adjustment expenses	314.7		.6		—		—		—		—		315.3
Acquisition expenses	118.3		2.9		3.6		.6		—		—		125.4
Cost of sales	—		—		—		—		—		25.5		25.5
General and administrative expenses	70.0		.1		1.4		30.8		7.8		88.5		198.6
Change in fair value of contingent consideration	(.2)		—		—		—		—		—		(.2)
Interest expense	10.2		—		7.0		—		10.0		2.0		29.2
Total expenses	513.0		3.6		12.0		31.4		17.8		116.0		693.8
Pre-tax income (loss)	$	78.0	$	15.9	$	24.2	$	(29.0)	$	45.3	$	82.1	$	216.5

(1) 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.

(2) Ark’s earned insurance premiums based on the location of Ark’s underwriting offices in the United Kingdom and Bermuda are $314.7 and $218.9.