Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2011

Discontinued Operations

Schedule of discontinued operations balance sheet

The following summarizes the assets and liabilities associated with the businesses classified as held for sale:

Millions	December 31, 2011		December 31, 2010
Assets held for sale
Fixed maturity investments, at fair value	$	111.8	$	593.8
Short-term investments, at amortized cost (which approximates fair value)	—		131.0
Common equity securities, at fair value	—		43.0
Convertible fixed maturity investments, at fair value	—		17.2
Other long-term investments	—		4.0
Total investments	111.8		789.0
Cash	5.5		39.8
Reinsurance recoverable on paid and unpaid losses	—		34.4
Insurance premiums receivable	8.8		102.9
Deferred acquisition costs	2.2		34.7
Deferred tax asset	1.9		67.8
Other assets	2.4		54.2
Total assets held for sale	$	132.6	$	1,122.8
Liabilities held for sale
Loss and loss adjustment expense reserves	$	64.7	$	450.4
Unearned insurance premiums	34.1		201.6
Accrued incentive compensation	—		19.1
Other liabilities	8.8		80.4
Total liabilities held for sale	107.6		751.5
Net assets held for sale	$	25.0	$	371.3

Schedule of discontinued operations income statement

The following summarizes the results of operations, including related income taxes associated with the businesses classified as discontinued operations:

	Year Ended December 31,
Millions, except per share amounts	2011			2010			2009
Revenues
Earned insurance premiums	$	727.9		$	910.6		$	882.8
Net investment income	12.0			19.6			22.3
Net realized and unrealized investment gains	.7			13.3			22.9
Other revenue	53.5			60.9			55.2
Total revenues	794.1			1,004.4			983.2
Expenses
Loss and loss adjustment expenses	542.3			678.8			695.0
Insurance and reinsurance acquisition expenses	159.2			191.7			170.1
Other underwriting expenses	80.4			87.9			98.7
General and administrative expenses	38.3			48.6			52.6
Total expenses	820.2			1,007.0			1,016.4
Pre-tax loss	(26.1		)	(2.6		)	(33.2		)
Income tax benefit (expense)	13.1			(4.0		)	5.4
Loss from discontinued operations	(13.0		)	(6.6		)	(27.8		)
Gain on sale of Esurance and AFI, net of tax	677.5			—			—
Loss on sale of AutoOne, net of tax	(19.2		)	—			—
Net income (loss) from discontinued operations	$	645.3		$	(6.6	)	$	(27.8	)

Discontinued operations, computation of earnings per share

The following table outlines the computation of earnings (loss) per share for discontinued operations for the years ended December 31, 2011, 2010 and 2009:

	Year Ended December 31,
	2011			2010			2009
Basic and diluted earnings (loss) per share numerators (in millions):
Net income (loss) attributable to White Mountains’ common shareholders	$	645.3		$	(6.6	)	$	(27.8	)
Allocation of income for participating unvested restricted common shares	(5.7		)	.1			.3
Net income (loss) attributable to White Mountains’ common shareholders, net of restricted common share amounts(3)	$	639.6		$	(6.5	)	$	(27.5	)
Basic earnings (loss) per share denominators (in thousands):
Total average common shares outstanding during the period	7,881.0			8,548.4			8,849.4
Average unvested restricted common shares (1)	(69.4		)	(97.3		)	(85.3		)
Basic earnings (loss) per share denominator	7,811.6			8,451.1			8,764.1
Diluted earnings (loss) per share denominator (in thousands):
Total average common shares outstanding during the period	7,881.0			8,548.4			8,849.4
Average unvested restricted common shares (1)	(69.4		)	(97.3		)	(85.3		)
Average outstanding dilutive options to acquire common shares (2)	—			.5			1.5
Diluted earnings (loss) per share denominator	7,811.6			8,451.6			8,765.6
Basic and diluted earnings (loss) per share (in dollars):	$	81.88		$	(.77	)	$	(3.14	)

(1) Restricted common shares outstanding vest either in equal annual installments or upon a stated date (see Note 11).

(2) The diluted earnings per share denominator for the year ended December 31, 2010 includes 1,200 common shares issuable upon exercise of incentive options at an average strike price of $189.31 per common share. The diluted earnings per share denominator for the year ended December 31, 2009 includes 5,280 common shares issuable upon exercise of incentive options at an average strike price of $183.03 per common share.  The non-qualified options were not included in the diluted earnings per share denominator for any of the periods presented as their inclusion would be anti-dilutive (See Note 11).

(3) Net income (loss) attributable to White Mountains’ common shareholders, net of restricted share amounts, is equal to undistributed earnings (loss) for the years ended December 31, 2011, 2010, and 2009.