Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of total income tax benefit (expense)

The following table presents the total income tax (expense) benefit for the years ended December 31, 2025, 2024 and 2023:


	Year Ended December 31,
Millions	2025		2024		2023
Current income tax (expense) benefit:
U.S. federal	$	(12.2)	$	(6.3)	$	(12.6)
State	(2.4)		(.4)		(2.2)
Non-U.S.	(20.2)		(14.8)		(16.6)
Total current income tax (expense) benefit	(34.8)		(21.5)		(31.4)
Deferred income tax (expense) benefit:
U.S. federal	(10.7)		(18.8)		(13.2)
State	(10.1)		2.7		(3.8)
Non-U.S.	(71.3)		5.0		63.9
Total deferred income tax (expense) benefit	(92.1)		(11.1)		46.9
Total income tax (expense) benefit	$	(126.9)	$	(32.6)	$	15.5

Schedule of U.S. federal statutory income tax rate and actual effective tax rate on pre-tax income

The following table presents a reconciliation of taxes calculated for 2025, 2024 and 2023 using the 21% U.S. federal statutory rate (the tax rate at which the majority of White Mountains’s worldwide operations are taxed) to the income tax (expense) benefit on pre-tax income (loss):


	Year Ended December 31,
$ in Millions	2025				2024				2023
U.S. federal statutory tax rate	$	(279.0)	21.0	%	$	(66.5)	21.0	%	$	(118.7)	21.0	%
State income taxes, net of federal income tax effect	(11.1)		0.8		2.2		(0.7)		(5.8)		1.0
Effects of changes in tax laws or rates enacted in current period	—		—		—		—		—		—
Effect of cross-border tax laws
Withholding tax	(2.4)		0.2		(1.0)		0.3		(2.3)		0.4
Branch profits tax	(3.9)		0.3		(2.7)		0.8		(5.0)		0.9
Other	—		—		(.3)		0.1		—		—
Tax credits
Foreign tax credit	—		—		—		—		1.6		(0.3)
Changes in valuation allowances	(9.9)		0.8		(12.3)		3.9		(1.4)		0.3
Nontaxable or nondeductible items
Members surplus contribution	—		—		(2.8)		0.9		(5.7)		1.0
Noncontrolling interest	6.4		(0.5)		3.9		(1.2)		6.8		(1.2)
Non-taxable foreign income	16.0		(1.2)		1.4		(0.5)		2.5		(0.4)
Other	(6.6)		0.5		(4.0)		1.3		1.8		(0.3)
Changes in unrecognized tax benefits	—		—		—		—		—		—

Foreign tax effects
United Kingdom
Statutory tax rate difference between U.K. and U.S.	(3.2)		0.2		(2.6)		0.8		(2.0)		0.4
Other	(1.0)		0.1		2.9		(0.9)		(.2)		—
Luxembourg
Statutory tax rate difference between Luxembourg and U.S.	(25.3)		1.9		(.3)		0.1		(1.9)		0.3
Changes in valuation allowances	6.6		(0.5)		4.2		(1.3)		(31.6)		5.6
Nontaxable or nondeductible items
Participation exemption	207.9		(15.6)		—		—		8.5		(1.5)
Write-down of investment	—		—		—		—		35.4		(6.3)
Other	(.1)		—		(2.3)		0.7		(.2)		—
Bermuda
Statutory tax rate difference between Bermuda and U.S.	53.2		(4.0)		44.1		(13.9)		63.4		(11.2)
Enacted changes in tax laws or rates	—		—		5.0		(1.6)		68.0		(12.0)
Nontaxable or nondeductible items
Write-down of deferred tax asset	(73.0)		5.5		—		—		—		—
Other	—		—		—		—		(.1)		—
Other foreign jurisdictions	(1.5)		0.1		(1.5)		0.5		2.4		(0.4)
Effective rate	$	(126.9)	9.6	%	$	(32.6)	10.3	%	$	15.5	(2.7)	%

Schedule of income taxes paid

The following table presents an outline of the significant components of White Mountains’s U.S. federal, state and non-U.S. tax payments (refunds):


	December 31,
Millions	2025		2024		2023
U.S. federal taxes	$	11.1	$	12.6	$	22.9
State and local taxes
California	1.6		2.3		—
New York	—		.4		2.0
New York City	—		—		2.3
Pennsylvania	(.5)		.2		.6
Other States	.8		.6		1.4
Foreign taxes
United Kingdom	16.5		15.1		11.6
Other foreign	1.2		3.1		1.9
Total income taxes paid	$	30.7	$	34.3	$	42.7

Schedule of components of deferred income tax assets and liabilities

The following table presents an outline of the significant components of White Mountains’s U.S. federal, state and non-U.S. deferred tax assets and liabilities:


	December 31,
Millions	2025		2024
Deferred tax assets related to:
Non-U.S. net operating loss carryforwards	$	63.1	$	62.8
Incentive compensation	29.3		23.8
U.S. federal and state net operating and capital loss carryforwards	15.4		6.4
Accrued interest	6.0		.2
Tax credit carryforwards	3.7		2.8
Intangible assets	.4		51.5
Unearned premiums	—		20.5
Loss reserves	—		8.5

Other items	1.6		.9
Total gross deferred tax assets	119.5		177.4








Less: valuation allowances	95.8		89.2
Total net deferred tax assets	23.7		88.2
Deferred tax liabilities related to:
Investment basis difference	87.7		43.5
Purchase accounting	43.9		43.9

Deferred underwriting	27.5		24.3
Net unrealized investment gains	22.2		19.0
Deferred acquisition costs	—		6.5



Other items	2.0		1.2
Total deferred tax liabilities	183.3		138.4



Net deferred tax asset (liability)	$	(159.6)	$	(50.2)

Schedule of net operating and capital loss carryforwards

The following table presents net operating loss and capital loss carryforwards as of December 31, 2025, the expiration dates and the deferred tax assets thereon:


	December 31, 2025
Millions	United States		Luxembourg		United Kingdom		Israel		Total

2026-2030	$	3.7	$	—	$	—	$	—	$	3.7
2031-2035	.1		29.7		—		—		29.8
2035-2045	—		137.2		—		—		137.2
No expiration date	47.2		—		.4		100.7		148.3
Total	$	51.0	$	166.9	$	.4	$	100.7	$	319.0
Gross deferred tax asset	$	15.4	$	39.8	$	.1	$	23.2	$	78.5
Valuation allowance	(13.4)		(35.9)		(.1)		(23.2)		(72.6)
Net deferred tax asset	$	2.0	$	3.9	$	—	$	—	$	5.9