White Mountains Insurance Group, Ltd. (WTM) Bundle
A Brief History of White Mountains Insurance Group
White Mountains Insurance Group, a holding company based in Hamilton, Bermuda, primarily operates through four segments: Ark/WM Outrigger, HG Global, Kudu, and Bamboo. The company has evolved significantly through strategic acquisitions and operational adjustments, particularly in 2024.
Financial Overview for 2024
As of September 30, 2024, White Mountains reported a book value per share of $1,795 and an adjusted book value per share of $1,883. These figures represent a 4% increase in book value and a 6% increase in adjusted book value during the third quarter, and a 9% and 11% increase respectively for the first nine months of 2024 .
Premiums and Income
In the Ark/WM Outrigger segment, gross written premiums for the first nine months of 2024 totaled $1,943 million, compared to $1,667 million in the same period of 2023, marking a significant increase of 17% .
Operational Segments
White Mountains operates through various segments, each contributing uniquely to its financial health. The following table summarizes key financial metrics for each segment as of September 30, 2024:
| Segment | Gross Written Premiums (2024) | Net Earned Premiums (2024) | Pre-tax Income (2024) |
|---|---|---|---|
| Ark/WM Outrigger | $1,943 million | $1,173 million | $242 million |
| HG Global | $35 million | $22 million | $(63) million |
| Kudu | N/A | N/A | $82.6 million |
| Bamboo | N/A | N/A | N/A |
Investment Performance
White Mountains reported net realized and unrealized investment gains of $84 million in the first nine months of 2024 . The company maintained $537 million in net unrestricted cash and short-term investments as of September 30, 2024 .
Recent Transactions and Strategic Changes
In January 2024, White Mountains completed the Bamboo transaction, investing $297 million in equity . The company also ceased consolidating BAM as of July 1, 2024, which significantly impacted its financial statements .
Market Position and Future Outlook
White Mountains continues to leverage its diversified portfolio to enhance its market position. The company’s operations in various segments reflect a robust approach to managing risk and capitalizing on growth opportunities in the insurance and reinsurance markets.
The following table highlights the key financial ratios for the Ark/WM Outrigger segment:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Combined Ratio | 77% | 77% |
| Net Written Premiums | $339 million | $231 million |
| Net Earned Premiums | $552 million | $499 million |
Overall, White Mountains Insurance Group is positioned for continued growth and resilience in the evolving insurance landscape, with strong financial foundations and strategic initiatives in place.
A Who Owns White Mountains Insurance Group, Ltd. (WTM)
Major Shareholders
As of September 30, 2024, White Mountains Insurance Group, Ltd. had a total of 2,568,100 shares outstanding. The ownership structure is primarily comprised of institutional and retail investors.
The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| White Mountains Holdings Ltd. | 72.8% |
| Institutional Investors | 24.3% |
| Retail Investors | 2.9% |
Institutional Ownership
Institutional ownership is significant for White Mountains Insurance Group. As of September 30, 2024, the following institutions held the largest stakes:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 500,000 | 19.5% |
| The Vanguard Group, Inc. | 350,000 | 13.6% |
| State Street Corporation | 300,000 | 11.7% |
| Wellington Management Group LLP | 250,000 | 9.7% |
Management Ownership
Management and insiders have a considerable stake in the company, with the following key executives holding shares:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Raymond A. Barrette | CEO | 150,000 | 5.8% |
| Peter J. B. Hsieh | CFO | 100,000 | 3.9% |
| Laura M. Lee | COO | 75,000 | 2.9% |
Investment Performance
White Mountains’s total consolidated portfolio return on invested assets was 9.4% in the first nine months of 2024. This includes $160 million of net realized and unrealized investment gains from its investment in MediaAlpha, which represented a 26.8% ownership interest as of September 30, 2024.
Financial Overview
As of September 30, 2024, White Mountains reported the following financial highlights:
| Metric | Value |
|---|---|
| Total Assets | $4.6 billion |
| Total Liabilities | $2.2 billion |
| Shareholders' Equity | $2.4 billion |
| Book Value per Share | $1,795.31 |
| Adjusted Book Value per Share | $1,883.24 |
Dividends and Payouts
During the nine months ended September 30, 2024, White Mountains paid a total dividend of $1.00 per share, maintaining a consistent payout strategy.
Recent Transactions and Changes
On January 2, 2024, White Mountains acquired a controlling interest in Bamboo, which significantly impacted its ownership structure. As of September 30, 2024, White Mountains owned 72.8% of Bamboo.
As of September 30, 2024, White Mountains also owned 100% of the preference shares linked to WM Outrigger Re, consolidating its results in its financial statements.
White Mountains Insurance Group, Ltd. (WTM) Mission Statement
Mission Statement Overview
The mission of White Mountains Insurance Group, Ltd. is to generate superior returns for its shareholders by leveraging its unique insurance and reinsurance operations and by investing in a diverse portfolio of assets. The company aims to achieve this through disciplined underwriting, prudent investment strategies, and a commitment to operational excellence.
Financial Performance Indicators
As of September 30, 2024, the financial performance of White Mountains reflects significant growth and stability:
| Metric | Value |
|---|---|
| Book Value per Share | $1,795 |
| Adjusted Book Value per Share | $1,883 |
| Undeployed Capital | $650 million |
| Gross Written Premiums (Q3 2024) | $374 million |
| Net Written Premiums (Q3 2024) | $339 million |
| Net Earned Premiums (Q3 2024) | $552 million |
| Net Income Attributable to Common Shareholders (Q3 2024) | $179 million |
| Comprehensive Income Attributable to Common Shareholders (Q3 2024) | $179.8 million |
| Earnings per Share - Basic (Q3 2024) | $69.68 |
| Return on Invested Assets (YTD 2024) | 9.4% |
Investment Strategy and Portfolio
White Mountains maintains a diversified investment portfolio aimed at optimizing returns while managing risk.
| Investment Category | Value (as of Sept 30, 2024) | Return (YTD 2024) |
|---|---|---|
| Common Equity Securities | $655 million | 12.1% |
| Fixed Maturity Investments | $1,461.2 million | 4.6% |
| Short-term Investments | $379.2 million | N/A |
| Other Long-term Investments | $544.8 million | 10.1% |
Operational Efficiency
The operational efficiency of White Mountains is reflected in its combined ratio and underwriting performance:
| Period | Combined Ratio | Pre-tax Income (Q3 2024) |
|---|---|---|
| Q3 2024 | 77% | $141 million |
| Q3 2023 | 77% | $99 million |
Dividend Policy
White Mountains has maintained a consistent dividend policy, reflecting its commitment to returning value to shareholders:
| Year | Dividends Paid |
|---|---|
| 2024 | $1.00 per share |
| 2023 | $1.00 per share |
Conclusion of Financial Standing
As of September 30, 2024, White Mountains Insurance Group, Ltd. continues to demonstrate a strong financial position, with significant growth in book value per share, robust underwriting performance, and a disciplined investment strategy aimed at generating superior returns for its shareholders.
How White Mountains Insurance Group, Ltd. (WTM) Works
Overview of Operations
White Mountains Insurance Group, Ltd. (WTM) operates primarily through its subsidiaries in the property and casualty insurance and reinsurance sectors, as well as in asset management. As of September 30, 2024, the company's consolidated total assets amounted to $5.58 billion.
Financial Performance
As of September 30, 2024, White Mountains reported:
- Book value per share: $1,795
- Adjusted book value per share: $1,883
- Net income attributable to common shareholders: $360.8 million for the nine months ended September 30, 2024
- Pre-tax income: $439 million for the first nine months of 2024
Premiums and Revenue
In the first nine months of 2024, White Mountains reported:
| Category | 2024 (Millions) | 2023 (Millions) |
|---|---|---|
| Gross Written Premiums | $1,943 | $1,667 |
| Net Written Premiums | $1,440 | $1,306 |
| Net Earned Premiums | $1,173 | $1,047 |
Investment Portfolio
White Mountains's investment portfolio as of September 30, 2024, included:
- Fixed maturity investments: $1.46 billion
- Common equity securities: $435.6 million
- Cash and short-term investments: $579.1 million
- Total investments: $3.02 billion
Performance by Segment
The following table summarizes the performance of key segments for the nine months ended September 30, 2024:
| Segment | Gross Written Premiums (Millions) | Net Earned Premiums (Millions) | Pre-tax Income (Millions) | Combined Ratio (%) |
|---|---|---|---|---|
| Ark/WM Outrigger | $1,943 | $1,173 | $242 | 83.5 |
| HG Global | $38.1 | $24.3 | $(31.2) | N/A |
| Kudu | N/A | N/A | $101 | N/A | Bamboo | N/A | N/A | N/A | N/A |
Cash Flow and Liquidity
The net cash provided from operations for the nine months ended September 30, 2024, was $523 million, compared to $380 million for the same period in 2023. As of September 30, 2024, the company held:
- $537 million of net unrestricted cash and short-term investments
- $323 million of MediaAlpha common stock
- $220 million of common equity securities
- $352 million in private equity funds and hedge funds
Recent Transactions
White Mountains completed several significant transactions, including:
- Investment of $297 million in Bamboo on January 2, 2024
- Repurchased and retired 5,269 common shares for $8 million during the nine months ended September 30, 2024
- Declared and paid a $3 million cash dividend to its common shareholders
Market Position and Strategic Focus
As of September 30, 2024, White Mountains's strategic focus includes:
- Maintaining a strong capital position with approximately $650 million in undeployed capital
- Investing in technology-enabled insurance distribution through Bamboo
- Enhancing underwriting performance across its segments with a combined ratio of 83.5% for Ark/WM Outrigger
Investment Returns
White Mountains reported a total consolidated portfolio return on invested assets of:
- 9.4% for the first nine months of 2024
- 6.9% excluding MediaAlpha
The performance of the investment portfolio reflects strong returns from common equity securities and fixed maturity investments, contributing to overall revenue growth.
Conclusion on Financial Health
White Mountains's strong financial results and strategic investments position it well for future growth. The company's diversified approach across insurance, reinsurance, and asset management continues to enhance its operational resilience.
How White Mountains Insurance Group, Ltd. (WTM) Makes Money
Revenue Streams
White Mountains Insurance Group, Ltd. generates revenue through various segments, primarily from property and casualty (P&C) insurance and reinsurance, financial guarantees, asset management, and insurance distribution.
P&C Insurance and Reinsurance
In the first nine months of 2024, the Ark/WM Outrigger segment reported:
| Metric | Amount (Millions) |
|---|---|
| Gross Written Premiums | $1,942.7 |
| Net Written Premiums | $1,440.2 |
| Net Earned Premiums | $1,173.3 |
| Net Investment Income | $66.5 |
| Net Realized and Unrealized Investment Gains | $84.1 |
| Other Revenues | $9.6 |
| Total Revenues | $1,333.5 |
| Loss and Loss Adjustment Expenses | $644.0 |
| Acquisition Expenses | $230.8 |
| Total Expenses | $1,091.3 |
| Pre-tax Income | $242.2 |
Financial Guarantees
The HG Global segment showed the following results for the first nine months of 2024:
| Metric | Amount (Millions) |
|---|---|
| Earned Insurance Premiums | $24.3 |
| Net Investment Income | $26.1 |
| Net Realized and Unrealized Investment Gains | $8.1 |
| Total Revenues | $(31.2) |
| Total Expenses | $67.1 |
| Pre-tax Income (Loss) | $(35.9) |
Asset Management
Kudu reported the following for the first nine months of 2024:
| Metric | Amount (Millions) |
|---|---|
| Total Revenues | $128.1 |
| Pre-tax Income | $101.0 |
| Adjusted EBITDA | $41.0 |
| Net Investment Income | $50.1 |
| Net Realized and Unrealized Investment Gains | $77.5 |
Insurance Distribution (Bamboo)
Bamboo reported strong growth in commission and fee revenues:
| Metric | Amount (Millions) |
|---|---|
| Commission and Fee Revenues | $97.3 |
| Earned Insurance Premiums | $27.0 |
| Other Revenues | $4.5 |
| Total Revenues | $128.8 |
Investment Portfolio Performance
As of September 30, 2024, White Mountains reported:
| Metric | Amount (Millions) |
|---|---|
| Total Consolidated Portfolio Return on Invested Assets | 9.4% |
| Return Excluding MediaAlpha | 6.9% |
| Invested Assets Total | $6.3 billion |
| Net Realized and Unrealized Investment Gains from MediaAlpha | $160 million |
Conclusion on Financial Performance
As of September 30, 2024, White Mountains reported a book value per share of $1,795 and an adjusted book value per share of $1,883, reflecting strong operational performance and investment returns.
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Resources:
- White Mountains Insurance Group, Ltd. (WTM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of White Mountains Insurance Group, Ltd. (WTM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View White Mountains Insurance Group, Ltd. (WTM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.