Municipal Bond Guarantee Insurance (Tables)

9 Months Ended

Sep. 30, 2024

Guarantees [Abstract]

Schedule of municipal bond guarantee insured obligations

The following table presents a schedule of the HG Global segment’s insured obligations as of September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
Contracts outstanding	15,524		14,485
Remaining weighted average contract period (in years) (1)	12.3		12.2		(2)
Outstanding first loss exposure from policies assumed (in millions) (1)	$	17,667.2	$	16,341.0	(3)
Gross unearned insurance premiums (in millions)	$	287.0	$	273.9	(4)

(1) Under the FLRT, HG Re provides first loss protection of up to 15%-of-par outstanding for each policy assumed from BAM. For capital appreciation bonds, par is adjusted to the estimated equivalent par value for current interest paying bonds. Accordingly, HG Re has no exposure to future interest outstanding and HG Re’s remaining weighted average contract period is calculated using its outstanding first loss exposure from policies assumed.

(2) As of December 31, 2023, which was prior to the deconsolidation of BAM, HG Global/BAM’s remaining weighted average contract period was 11.1 years, calculated using HG Global/BAM’s total contractual debt service outstanding, including principal and interest.

(3) As of December 31, 2023, which was prior to the deconsolidation of BAM, HG Global/BAM’s total contractual debt service outstanding was $165,686.0, split between principal of $109,673.8 and interest of $56,012.2.

(4) As of December 31, 2023, which was prior to the deconsolidation of BAM, HG Global/BAM’s gross unearned insurance premiums was $325.8.

Financial guarantee insurance contracts, premium received over contract period

The following table presents a schedule of HG Global’s future premium revenues as of September 30, 2024:

Millions	September 30, 2024
October 1, 2024 - December 31, 2024	$	6.6
January 1, 2025 - March 31, 2025	6.4
April 1, 2025 - June 30, 2025	6.4
July 1, 2025 - September 30, 2025	6.2
October 1, 2025 - December 31, 2025	6.1
Total 2025	25.1
2026	23.7
2027	22.3
2028	20.8
2029	19.3
2030 and thereafter	169.2
Total gross unearned insurance premiums	$	287.0

Effects of reinsurance

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 and nine months ended September 30, 2024 and 2023:

Millions	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Written premiums:
Direct	$	239.0	$	189.4	$	863.4	$	727.1
Assumed	134.6		61.8		1,079.3		939.6
Gross written premiums	373.6		251.2		1,942.7		1,666.7
Ceded (1)	(34.2)		(20.2)		(502.5)		(360.3)
Net written premiums	$	339.4	$	231.0	$	1,440.2	$	1,306.4
Earned premiums:
Direct	$	317.6	$	273.1	$	731.5	$	624.1
Assumed	432.6		370.0		805.3		684.6
Gross earned premiums	750.2		643.1		1,536.8		1,308.7
Ceded (2)	(198.0)		(144.2)		(363.5)		(261.4)
Net earned premiums	$	552.2	$	498.9	$	1,173.3	$	1,047.3
Loss and loss adjustment expenses:
Gross	$	350.7	$	269.3	$	852.7	$	627.5
Ceded (3)	(62.4)		(3.5)		(208.7)		(46.4)
Net loss and loss adjustment expenses	$	288.3	$	265.8	$	644.0	$	581.1

(1) The three months ended September 30, 2024 and 2023 exclude $8.8 and $6.0, and the nine months ended September 30, 2024 and 2023 exclude $82.0 and $108.4 ceded by Ark to WM Outrigger Re, which eliminate in White Mountains’s consolidated financial statements.

(2) The three months ended September 30, 2024 and 2023 exclude $45.0 and $60.6, and the nine months ended September 30, 2024 and 2023 exclude $62.8 and $75.4, ceded by Ark to WM Outrigger Re, which eliminate in White Mountains’s consolidated financial statements.

(3) The three months ended September 30, 2024 and 2023 exclude $13.2 and $7.3, and the nine months ended September 30, 2024 and 2023 exclude $13.6 and $7.9, ceded by Ark to WM Outrigger Re, 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, 2024 and December 31, 2023:

Millions	September 30, 2024		December 31, 2023
Reinsurance recoverables on unpaid losses (1)	$	507.2	$	340.8
Reinsurance recoverables on paid losses	27.9		27.4
Ceded unearned premiums (2)	212.9		73.8
Reinsurance recoverables	$	748.0	$	442.0

(1) The reinsurance recoverables on unpaid losses exclude $28.0 and $15.6 ceded by Ark to WM Outrigger Re as of September 30, 2024 and December 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded unearned premiums exclude $25.0 and $5.7 ceded by Ark to WM Outrigger Re as of September 30, 2024 and December 31, 2023,

which eliminate in White Mountains’s consolidated financial statements.

The following tables present schedules of written premiums and earned premiums included in the HG Global segment for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended September 30, 2024
Millions	HG Global
Written premiums:
Direct	$	—
Assumed	14.0
Gross written premiums (1)	$	14.0
Earned premiums:
Direct	$	—
Assumed	7.5
Gross earned premiums (1)	$	7.5

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

	Three Months Ended September 30, 2023
Millions	HG Global		BAM		Eliminations		Total
Written premiums:
Direct	$	—	$	16.5	$	—	$	16.5
Assumed	14.2		—		(14.2)		—
Gross written premiums (1)	$	14.2	$	16.5	$	(14.2)	$	16.5
Earned premiums:
Direct	$	—	$	7.4	$	—	$	7.4
Assumed	6.6		.5		(6.6)		.5
Gross earned premiums (1)	$	6.6	$	7.9	$	(6.6)	$	7.9

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

	Nine Months Ended September 30, 2024
Millions	HG Global		BAM		Eliminations		Total
Written premiums:
Direct	$	—	$	24.1	$	—	$	24.1
Assumed	34.5		—		(20.5)		14.0
Gross written premiums (1)	$	34.5	$	24.1	$	(20.5)	$	38.1
Earned premiums:
Direct	$	—	$	15.8	$	—	$	15.8
Assumed	21.5		1.0		(14.0)		8.5
Gross earned premiums (1)	$	21.5	$	16.8	$	(14.0)	$	24.3

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

	Nine Months Ended September 30, 2023
Millions	HG Global		BAM		Eliminations		Total
Written premiums:
Direct	$	—	$	37.3	$	—	$	37.3
Assumed	31.9		—		(31.9)		—
Gross written premiums (1)	$	31.9	$	37.3	$	(31.9)	$	37.3
Earned premiums:
Direct	$	—	$	21.4	$	—	$	21.4
Assumed	19.4		1.9		(19.4)		1.9
Gross earned premiums (1)	$	19.4	$	23.3	$	(19.4)	$	23.3

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