Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

NOTE 15. Segment Information

White Mountains has determined that its reportable segments are OneBeacon, Sirius Group, HG Global/BAM and Other Operations. As a result of the Esurance Sale, the AutoOne Sale and the Runoff Business sale, the results of operations for Esurance, AutoOne and the Runoff Business have been classified as discontinued operations and are now presented, net of related income taxes, as such in the statement of comprehensive income. Prior year amounts have been reclassified to conform to the current period’s presentation (see Note 21).

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.

OneBeacon is a specialty property and casualty insurance writer that offers a wide range of insurance products through independent agencies, regional and national brokers, wholesalers and managing general agencies.

Sirius Group provides insurance and reinsurance products for property, accident and health, aviation and space, trade credit, marine, agriculture and certain other exposures on a worldwide basis.

The HG Global/BAM segment consists of White Mountains’ investment in HG Global and the consolidated results of BAM. BAM is a municipal bond insurer domiciled in New York that was established to provide insurance on bonds issued to support essential U.S. public purposes such as schools, utilities, core governmental functions and existing transportation facilities. HG Global, together with its subsidiaries, provided the initial capitalization of BAM through the purchase of BAM Surplus Notes. HG Global also provides 15%-of-par, first loss reinsurance protection for policies underwritten by BAM. BAM's results are attributed to non-controlling interests.

Other Operations consists of the Company, the Company’s intermediate holding companies, WM Advisors and WM Life Re as well as and various other entities not included in other segments. Significant intercompany transactions among White Mountains’ segments have been eliminated herein.

Financial information for White Mountains’ segments follows:

					HG Global/BAM
Millions	OneBeacon		Sirius Group		HG Global			BAM(1)			Other Operations		Total
Year Ended December 31, 2013
Earned insurance and reinsurance premiums	$	1,120.4	$	866.4	$	.4		$	.1		$	—	$	1,987.3
Net investment income	41.1		48.8		1.0			4.7			15.3		110.9
Net investment income (loss) - surplus note    interest	—		—		40.2			(40.2		)	—		—
Net realized and unrealized investment    gains (losses)	49.4		26.7		(2.0		)	(9.3		)	96.9		161.7
Other revenue	31.2		16.8		—			0.4			9.1		57.5
Total revenues	1,242.1		958.7		39.6			(44.3		)	121.3		2,317.4
Losses and LAE	622.1		418.4		—			—			—		1,040.5
Insurance and reinsurance acquisition expenses	208.9		166.5		0.1			1.4			—		376.9
Other underwriting expenses	204.8		126.1		—			.4			—		331.3
General and administrative expenses	12.0		32.2		1.4			32.5			103.2		181.3
Interest expense on debt	13.0		26.3		—			—			3.2		42.5
Total expenses	1,060.8		769.5		1.5			34.3			106.4		1,972.5
Pre-tax income (loss)	$	181.3	$	189.2	$	38.1		$	(78.6	)	$	14.9	$	344.9

						HG Global/BAM
Millions	OneBeacon			Sirius Group		HG Global		BAM(1)			Other Operations		Total
Year Ended December 31, 2012
Earned insurance and reinsurance premiums	$	1,132.0		$	931.6	$	—	$	—		$	—	$	2,063.6
Net investment income	53.6			65.0		.3		1.9			32.8		153.6
Net investment income (loss) - surplus note    interest	—			—		18.4		(18.4		)	—		—
Net realized and unrealized investment gains	55.7			17.3		—		—			45.2		118.2
Other (loss) revenue	(.5		)	70.6		—		—			30.2		100.3
Total revenues	1,240.8			1,084.5		18.7		(16.5		)	108.2		2,435.7
Losses and LAE	650.0			543.9		—		—			—		1,193.9
Insurance and reinsurance acquisition expenses	249.4			180.8		—		—			—		430.2
Other underwriting expenses	205.2			116.4		—		.2			—		321.8
General and administrative expenses	13.4			45.9		4.5		19.6			98.8		182.2
Interest expense on debt	16.9			26.2		—		—			1.7		44.8
Total expenses	1,134.9			913.2		4.5		19.8			100.5		2,172.9
Pre-tax income (loss)	$	105.9		$	171.3	$	14.2	$	(36.3	)	$	7.7	$	262.8

Millions	OneBeacon			Sirius Group		Other Operations			Total
Year Ended December 31, 2011
Earned insurance and reinsurance premiums	$	1,012.2		$	912.3	$	—		$	1,924.5
Net investment income	71.4			89.9		23.2			184.5
Net realized and unrealized investment gains	10.6			53.2		10.3			74.1
Other (loss) revenue	(12.4		)	4.1		(1.7		)	(10.0		)
Total revenues	1,081.8			1,059.5		31.8			2,173.1
Losses and LAE	548.3			626.0		—			1,174.3
Insurance and reinsurance acquisition expenses	221.2			181.0		—			402.2
Other underwriting expenses	162.3			105.8		—			268.1
General and administrative expenses	9.8			34.1		131.4			175.3
Interest expense on debt	20.5			31.6		3.1			55.2
Total expenses	962.1			978.5		134.5			2,075.1
Pre-tax income (loss)	$	119.7		$	81.0	$	(102.7	)	$	98.0

					HG Global/BAM
Selected Balance Sheet Data Millions	OneBeacon		Sirius Group		HG Global		BAM					Other Operations		Total
December 31, 2013:
Total investments	$	2,364.9	$	3,251.4	$	107.9	$	468.6				$	999.8	$	7,192.6
Reinsurance recoverable on paid and unpaid losses	89.9		363.6		—		—					—		453.5
Assets held for sale	1,880.1		—		—		—					—		1,880.1
Total assets	5,191.3		5,124.1		675.0		(77.9		)	(2	)	1,231.8		12,144.3
Loss and LAE reserves	1,054.3		2,025.0		—		—					—		3,079.3
Liabilities held for sale	1,880.1		—		—		—					—		1,880.1
Total liabilities	4,083.9		3,414.5		68.9		19.7					159.9		7,746.9
Total White Mountains’ common shareholders’    equity	830.6		1,459.6		589.5		—					1,025.8		3,905.5
Non-controlling interest	276.8		250.0		16.6		(97.6		)			46.1		491.9
December 31, 2012:
Total investments	$	2,291.5	$	3,534.3	$	101.5	$	472.4				$	878.4	$	7,278.1
Reinsurance recoverable on paid and unpaid losses	110.7		336.3		—		—					—		447.0
Assets held for sale	2,226.8		—		—		—					—		2,226.8
Total assets	5,382.3		5,962.0		623.6		(28.6		)	(2	)	956.1		12,895.4
Loss and LAE reserves	1,000.0		2,168.9		—		—					—		3,168.9
Liabilities held for sale	2,226.8		—		—		—					—		2,226.8
Total liabilities	4,365.0		4,123.2		0.9		7.4					140.7		8,637.2
Total White Mountains’ common shareholders’    equity	763.1		1,559.7		606.2		—					802.8		3,731.8
Non-controlling interest	254.2		279.1		16.6		(36.0		)			12.5		526.4

⁽¹⁾  BAM manages its affairs on a statutory accounting basis. BAM’s statutory surplus includes surplus notes and is not reduced by accruals of interest expense on the surplus notes. BAM’s statutory surplus is reduced only after a payment of principal or interest has been approved by the New York Department of Financial Services.

⁽²⁾  BAM total assets reflect the elimination of $503.0 in surplus notes issued to HG Global and its subsidiaries, and $58.6 and $18.4 in accrued interest related to those surplus notes as of December 31, 2013 and 2012.