XML 60 R50.htm IDEA: XBRL DOCUMENT v2.4.0.6
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2012
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of asbestos and environmental loss and LAE reserve activities
Sirius Group
Net A&E Loss Reserve Activity
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
Millions
 
Gross
 
Net
 
Gross
 
Net
 
Gross
 
Net
Asbestos:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
185.1

 
$
146.2

 
$
191.9

 
$
151.5

 
$
187.0

 
$
146.6

Losses and LAE acquired
 
11.0

 
11.0

 
—

 
—

 
10.4

 
9.7

Incurred losses and LAE
 
46.8

 
46.4

 
13.6

 
10.3

 
9.0

 
7.3

Paid losses and LAE
 
(34.7
)
 
(29.4
)
 
(20.4
)
 
(15.6
)
 
(14.5
)
 
(12.1
)
Ending balance
 
208.2

 
174.2

 
185.1

 
146.2

 
191.9

 
151.5

Environmental:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
22.1

 
16.5

 
22.4

 
18.1

 
22.2

 
17.9

Losses and LAE acquired
 
0.7

 
0.7

 
—

 
—

 
3.5

 
2.4

Incurred losses and LAE
 
(0.1
)
 
(0.5
)
 
2.9

 
2.0

 
(2.5
)
 
(1.3
)
Paid losses and LAE
 
(2.3
)
 
(1.5
)
 
(3.2
)
 
(3.6
)
 
(.8
)
 
(.9
)
Ending balance
 
20.4

 
15.2

 
22.1

 
16.5

 
22.4

 
18.1

Total asbestos and environmental:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
207.2

 
162.7

 
214.3

 
169.6

 
209.2

 
164.5

Losses and LAE acquired
 
11.7

 
11.7

 
—

 
—

 
13.9

 
12.1

Incurred losses and LAE
 
46.7

 
45.9

 
16.5

 
12.3

 
6.5

 
6.0

Paid losses and LAE
 
(37.0
)
 
(30.9
)
 
(23.6
)
 
(19.2
)
 
(15.3
)
 
(13.0
)
Ending balance
 
$
228.6

 
$
189.4

 
$
207.2

 
$
162.7

 
$
214.3

 
$
169.6

The following tables summarize reported A&E loss and LAE reserve activities (gross and net of reinsurance) for
OneBeacon for the years ended December 31, 2012, 2011 and 2010, respectively.
Net A&E Loss 
 
Year Ended December 31,
Reserve Activity
 
2012
 
2011
 
2010
 
 
 
 
Pre-NICO
 
 
 
 
 
Pre-NICO
 
 
 
 
 
Pre-NICO
 
 
Millions
 
Gross
 
Net (1)
 
Net (2)
 
Gross
 
Net (1)
 
Net (2)
 
Gross
 
Net (1)
 
Net (2)
Asbestos:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,074.3

 
$
681.2

 
$
2.2

 
$
904.0

 
$
647.3

 
$
6.4

 
$
985.6

 
$
688.8

 
$
6.5

Incurred losses and LAE
 
(.3
)
 
(.5
)
 
(.5
)
 
256.8

 
32.2

 
(4.0
)
 
—

 
—

 
—

Paid losses and LAE
 
(144.6
)
 
(78.2
)
 
.7

 
(86.5
)
 
1.7

 
(.2
)
 
(81.6
)
 
(41.5
)
 
(.1
)
Ending balance
 
929.4

 
602.5

 
2.4

 
1,074.3

 
681.2

 
2.2

 
904.0

 
647.3

 
6.4

Environmental:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
279.8

 
151.6

 
9.0

 
119.0

 
93.8

 
9.2

 
350.7

 
218.6

 
7.6

Incurred losses and LAE
 
(.9
)
 
(.5
)
 
(.5
)
 
231.8

 
62.2

 
10.0

 
6.2

 
6.0

 
6.0

Paid losses and LAE
 
(45.9
)
 
(25.7
)
 
(2.1
)
 
(71.0
)
 
(4.4
)
 
(10.2
)
 
(237.9
)
 
(130.8
)
 
(4.4
)
Ending balance
 
233.0

 
125.4

 
6.4

 
279.8

 
151.6

 
9.0

 
119.0

 
93.8

 
9.2

Total asbestos and environmental:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
1,354.1

 
832.8

 
11.2

 
1,023.0

 
741.1

 
15.6

 
1,336.3

 
907.4

 
14.1

Incurred losses and LAE
 
(1.2
)
 
(1.0
)
 
(1.0
)
 
488.6

 
94.4

 
6.0

 
6.2

 
6.0

 
6.0

Paid losses and LAE
 
(190.5
)
 
(103.9
)
 
(1.4
)
 
(157.5
)
 
(2.7
)
 
(10.4
)
 
(319.5
)
 
(172.3
)
 
(4.5
)
Ending balance
 
$
1,162.4

 
$
727.9

 
$
8.8

 
$
1,354.1

 
$
832.8

 
$
11.2

 
$
1,023.0

 
$
741.1

 
$
15.6

(1) Represents A&E reserve activity, net of third-party reinsurance, but prior to the NICO Cover.
(2) Includes NICO cover
Schedule of discontinued operations balance sheet
The following summarizes the assets and liabilities associated with the businesses classified as held for sale:
 
 
 
December 31,
Millions
 
2012
 
2011
Assets held for sale
 
 
 
 
Fixed maturity investments, at fair value
 
$
338.1

 
$
111.8

Cash
 
—

 
5.5

Reinsurance recoverable on unpaid losses
 
1,840.8

 
—

Reinsurance recoverable on paid losses
 
15.6

 
—

Insurance premiums receivable
 
11.0

 
8.8

Deferred acquisition costs
 
—

 
2.2

Deferred tax asset
 
5.1

 
1.9

Other assets
 
16.2

 
2.4

Total assets held for sale
 
$
2,226.8

 
$
132.6

Liabilities held for sale
 
 
 
 
Loss and loss adjustment expense reserves
 
$
2,052.6

 
$
64.7

Unearned insurance premiums
 
.5

 
34.1

Ceded reinsurance payable
 
21.9

 
—

Other liabilities
 
151.8

 
8.8

Total liabilities held for sale
 
2,226.8

 
107.6

Net assets held for sale
 
$
—

 
$
25.0
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
 
2012
 
2011
 
2010
Revenues
 
 

 
 

 
 

Earned insurance premiums
 
$
10.6

 
$
731.2

 
$
1,133.4

Net investment income
 
—

 
12.0

 
19.6

Net realized and unrealized investment gains
 
—

 
.7

 
13.3

Other revenue
 
—

 
55.1

 
71.1

Total revenues
 
10.6

 
799.0

 
1,237.4

Expenses
 
 

 
 

 
 

Loss and loss adjustment expenses
 
48.4

 
574.9

 
851.4

Insurance and reinsurance acquisition expenses
 
(2.1
)
 
157.0

 
251.2

Other underwriting expenses
 
1.7

 
91.4

 
124.9

General and administrative expenses
 
—

 
38.3

 
48.7

Total expenses
 
48.0

 
861.6

 
1,276.2

Pre-tax loss
 
(37.4
)
 
(62.6
)
 
(38.8
)
Income tax benefit
 
13.4

 
25.9

 
8.7

Loss from discontinued operations
 
(24.0
)
 
(36.7
)
 
(30.1
)
Gain on sale of Esurance and AFI, net of tax
 
—

 
677.5

 
—

Loss on sale of AutoOne and Runoff Transaction, net of tax
 
(91.0
)
 
(19.2
)
 
—

Net (loss) income from discontinued operations
 
$
(115.0
)
 
$
621.6

 
$
(30.1
)
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, 2012, 2011 and 2010:

 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
Basic and diluted earnings (loss) per share numerators (in millions):
 
 

 
 

 
 
Net (loss) income attributable to White Mountains’ common shareholders
 
$
(115.0
)
 
$
621.6

 
$
(30.1
)
Allocation of income for participating unvested restricted common shares (1)
 
1.5

 
(5.4
)
 
.4

Net (loss) income attributable to White Mountains’ common shareholders, net of restricted common share amounts (3)
 
$
(113.5
)
 
$
616.2

 
$
(29.7
)
Basic earnings (loss) per share denominators (in thousands):
 
 
 
 

 
 

Total average common shares outstanding during the period
 
6,799.8

 
7,881.0

 
8,548.4

Average unvested restricted common shares (1)
 
(91.1
)
 
(69.4
)
 
(97.3
)
Basic earnings (loss) per share denominator
 
6,708.7

 
7,811.6

 
8,451.1

Diluted earnings (loss) per share denominator (in thousands):
 
 
 
 

 
 

Total average common shares outstanding during the period
 
6,799.8

 
7,881.0

 
8,548.4

Average unvested restricted common shares (1)
 
(91.1
)
 
(69.4
)
 
(97.3
)
Average outstanding dilutive options to acquire common shares (2)
 
—

 
—

 
.5

Diluted earnings (loss) per share denominator
 
6,708.7

 
7,811.6

 
8,451.6

Basic and diluted (loss) earnings per share (in dollars):
 
$
(16.91
)
 
$
78.88

 
$
(3.51
)
(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 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.
(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, 2012, 2011 and 2010.
(4) 
Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities.