HAMILTON, Bermuda, Nov. 5, 2026 /PRNewswire/ -- White Mountains Insurance Group, Ltd. $(WTM)$ reported book value per share of $2,243 as of September 30, 2026, a decrease of 1% for the third quarter of 2026 and an increase of 3% for the first nine months of 2026, including dividends.
Liam Caffrey, CEO, commented, "Book value per share was down 1% in the quarter. Higher interest rates and a lower share price at MediaAlpha drove unrealized investment losses, which offset an otherwise solid quarter for operating results. Ark produced a 75% combined ratio and $386 million of gross written premiums, leading to strong growth in tangible book value. Kudu grew adjusted EBITDA, but its trailing 12 months return on equity declined to 8% as higher interest rates reduced the fair value of its portfolio. HG Global generated a record $19 million of gross written premiums in the quarter, but book value returns were negatively impacted by higher interest rates. Distinguished had a solid quarter, growing both managed premiums and ScaleCo adjusted EBITDA. WTM Partners experienced good top and bottom-line growth. MediaAlpha's share price declined 24% in the quarter, producing $54 million of mark-to-market losses for our remaining position. Our consolidated investment portfolio, excluding MediaAlpha, was flat overall, with fixed income weighing down the result. Undeployed capital remains at roughly $0.8 billion."
Comprehensive income (loss) attributable to common shareholders was $(39) million and $134 million in the third quarter and first nine months of 2026 compared to $114 million and $272 million in the third quarter and first nine months of 2025. Results in the third quarter and first nine months of 2026 included $(69) million and $92 million of net realized and unrealized investment gains (losses) compared to $76 million and $250 million in the third quarter and first nine months of 2025. Results in the third quarter and first nine months of 2026 also included $(54) million and $(60) million of unrealized investment gains (losses) from White Mountains's investment in MediaAlpha compared to $8 million and $2 million in the third quarter and first nine months of 2025.
Ark/WM Outrigger
Ark's combined ratio was 75% and 83% in the third quarter and first nine months of 2026 compared to 76% and 84% in the third quarter and first nine months of 2025. Ark's combined ratio in the third quarter and first nine months of 2026 included two points and four points of catastrophe losses, driven primarily by losses related to the war in Iran. This compares to minimal catastrophe losses in the third quarter of 2025 and seven points of catastrophe losses in the first nine months of 2025, driven primarily by losses related to the California wildfires. Ark's combined ratio included four points and five points of net favorable prior year development in the third quarter and first nine months of 2026, driven primarily by the property and specialty lines of business. This compares to zero points and five points of net favorable prior year development in the third quarter and first nine months of 2025, also driven primarily by the property and specialty lines of business.
Ark has ongoing exposure to the war in Iran, primarily through the specialty and marine & energy lines of business. In the third quarter and first nine months of 2026, Ark recorded estimated losses of $10 million and $52 million (net of reinsurance and reinstatement premiums) related to the war.
Hurricane Isaias made U.S. landfall in October 2026. Ark does not expect its losses related to the storm to be significant.
Ark reported gross written premiums of $386 million and $2,254 million, net written premiums of $338 million and $1,466 million and net earned premiums of $510 million and $1,256 million in the third quarter and first nine months of 2026 compared to gross written premiums of $366 million and $2,289 million, net written premiums of $283 million and $1,510 million and net earned premiums of $499 million and $1,202 million in the third quarter and first nine months of 2025. The increase in gross written premiums in the third quarter of 2026 was driven primarily by a change in the timing of recognition of certain delegated authority business as well as growth in the specialty and accident & health lines of business, partially offset by reduced writings in property as a result of softening market conditions. The timing of recognition of certain delegated authority business had no impact on the timing of recognition of Ark's earned premiums. The decrease in gross written premiums in the first nine months of 2026 was driven primarily by reduced writings in property as a result of the softening market conditions, partially offset by growth in the specialty, casualty and accident & health lines of business.
Ark reported pre-tax income of $64 million and $149 million in the third quarter and first nine months of 2026 compared to $97 million and $240 million in the third quarter and first nine months of 2025. Ark's results included net realized and unrealized investment gains (losses) of $(40) million and $(43) million in the third quarter and first nine months of 2026 compared to $18 million and $99 million in the third quarter and first nine months of 2025.
Ark reported book value of $1,673 million as of September 30, 2026, an increase of 4% in the third quarter of 2026 and 8% in the first nine months of 2026, including dividends. Ark reported tangible book value of $1,825 million as of September 30, 2026, an increase of 5% in the third quarter of 2026 and 12% in the first nine months of 2026, including dividends. Ark's book value includes goodwill and other intangible assets, net of tax, and White Mountains's contingent consideration liability, which are excluded from Ark's tangible book value.
Ian Beaton, CEO of Ark, said, "We have enjoyed good results for the first three quarters of 2026. Ark's combined ratio was 75% for the third quarter and 83% year to date, both one point better than prior year. Gross written premiums were $2.3 billion year to date, slightly down year-over-year as growth in specialty and other classes was offset by continued headwinds in the property market."
During the fourth quarter of 2025, Ark renewed Outrigger Re Ltd. for the 2026 underwriting year, but WM Outrigger Re did not participate. Accordingly, WM Outrigger Re's results are not material to White Mountains's consolidated financial statements for the third quarter and first nine months of 2026.
Kudu
Kudu reported total revenues of $(5) million, pre-tax loss of $15 million and adjusted EBITDA of $18 million in the third quarter of 2026 compared to total revenues of $54 million, pre-tax income of $44 million and adjusted EBITDA of $15 million in the third quarter of 2025. Total revenues, pre-tax income (loss) and adjusted EBITDA included $21 million of net investment income in the third quarter of 2026 compared to $18 million in the third quarter of 2025. Total revenues and pre-tax income (loss) also included $(26) million of net realized and unrealized investment gains (losses) in the third quarter of 2026 compared to $36 million in the third quarter of 2025. The decrease in net realized and unrealized investment gains was driven by a decrease in the fair value of Kudu's participation contracts, primarily due to the impact of higher interest rates on discount rates, partially offset by growth in assets under management at several managers. On a trailing 12 months basis, return on equity was 8% as of September 30, 2026, down from 15% as of June 30, 2026, primarily due to lower unrealized investment gains.
Kudu reported total revenues of $127 million, pre-tax income of $93 million and adjusted EBITDA of $50 million in the first nine months of 2026 compared to total revenues of $139 million, pre-tax income of $108 million and adjusted EBITDA of $47 million in the first nine months of 2025. Total revenues, pre-tax income and adjusted EBITDA included $61 million of net investment income in the first nine months of 2026 compared to $57 million in the first nine months of 2025. Total revenues and pre-tax income also included $66 million of net realized and unrealized investment gains in the first nine months of 2026 compared to $81 million in the first nine months of 2025. The decrease in net realized and unrealized investment gains was driven primarily by the impact of higher interest rates on discount rates and foreign currency movements on the fair value of Kudu's participation contracts, partially offset by step-ups in valuation related to certain sale transactions.
Rob Jakacki, CEO of Kudu, said, "The fair value of our portfolio was down 2% in the quarter as interest rates spiked; however, our underlying portfolio fundamentals remain sound, supported by the continued strength and resilience of our partner firms. Trailing 12 months adjusted EBITDA grew to $69 million, aided by two new acquisitions this year. We remain focused on disciplined capital deployment, prudent portfolio management and positioning the business to capitalize on opportunities in the marketplace."
HG Global
HG Global reported gross written premiums of $19 million and $39 million and earned premiums of $9 million and $24 million in the third quarter and first nine months of 2026 compared to gross written premiums of $16 million and $42 million and earned premiums of $8 million and $23 million in the third quarter and first nine months of 2025. HG Global's total par value of policies assumed was $929 million and $2,264 million in the third quarter and first nine months of 2026 compared to $850 million and $2,208 million in the third quarter and first nine months of 2025. HG Global's total gross pricing was 208 and 170 basis points in the third quarter and first nine months of 2026 compared to 187 and 189 basis points in the third quarter and first nine months of 2025.
HG Global reported pre-tax income (loss) of $(28) million and $(7) million in the third quarter and first nine months of 2026 compared to $22 million and $64 million in the third quarter and first nine months of 2025. HG Global's results included net realized and unrealized investment gains (losses) of $(29) million and $(36) million in the third quarter and first nine months of 2026 compared to $7 million and $20 million in the third quarter and first nine months of 2025. Investment losses in the third quarter and first nine months of 2026 were driven by the impact of higher interest rates leading to unrealized losses on HG Global's fixed income portfolio.
The fair value of the BAM surplus notes decreased to $336 million as of September 30, 2026 compared to $353 million as of June 30, 2026. The decrease was driven by a $16 million decrease in fair value and an $8 million cash payment of principal and interest, partially offset by $7 million of accrued interest. The decrease in fair value was driven primarily by the impact of higher interest rates on the discount rate.
Kevin Pearson, President of HG Global, said, "HG Global had a record third quarter for production with gross written premiums of $19 million, up 21% year-over-year, driven primarily by performance in the primary market. The spike in interest rates resulted in $29 million of unrealized investment losses and a decrease in the fair value of the BAM surplus notes, but the underlying fundamentals of these assets remain unchanged."
We encourage you to read BAM's third quarter statutory financial statements and operating supplement, which will be available on BAM's website at https://bambonds.com/about-bam/credit-rating-and-financial-information/.
Distinguished
Distinguished reported managed premiums of $159 million and $480 million, commission and fee revenues of $55 million and $151 million, pre-tax loss of $13 million and $41 million and ScaleCo adjusted EBITDA of $5 million and $22 million for the third quarter and first nine months of 2026. Distinguished reported managed premiums of $43 million, commission and fee revenues of $14 million, pre-tax loss of $3 million and ScaleCo adjusted EBITDA of $1 million for the period from September 2, 2025 through September 30, 2025. On a trailing 12 months basis, Distinguished reported managed premiums of $625 million and ScaleCo adjusted EBITDA of $30 million.
Jason Rotman, President of Distinguished, said, "We had another solid quarter. On a trailing 12 months basis, managed premiums grew 5% quarter-over-quarter to a new high of $625 million, and ScaleCo adjusted EBITDA grew 5% to $30 million. We enjoyed particularly strong growth in our environmental and surety programs, partially offset by continued headwinds in our umbrella program. GrowthCo continues to mature nicely, and the pipeline of new opportunities remains robust."
WTM Partners
WTM Partners reported total revenues of $107 million and $243 million, pre-tax income of $1 million and $3 million and adjusted EBITDA of $9 million and $19 million in the third quarter and first nine months of 2026 compared to total revenues of $54 million and $97 million, pre-tax loss of $1 million and $3 million and adjusted EBITDA of $2 million and $4 million in the third quarter and first nine months of 2025. The increases were driven primarily by organic growth at Enterprise Solutions and the acquisitions of Basesix and Hawkeye Electric in the second quarter of 2026.
John Daly, CEO of WTM Partners, said, "WTM Partners had a solid quarter generating $9 million of adjusted EBITDA. Enterprise Solutions, including recently acquired Hawkeye Electric, generated solid growth and made good progress on integration initiatives. Our other recent acquisition, low voltage systems integration platform Basesix, has performed ahead of expectations. We have roughly $200 million of equity capital deployed into these businesses and are working an active pipeline of new platform and tuck-in opportunities."
MediaAlpha
As of September 30, 2026, White Mountains owned 17.9 million shares of MediaAlpha, representing a 29% basic ownership interest based on the total class A and class B common shares outstanding. As of September 30, 2026, MediaAlpha's share price was $9.57 per share, which decreased from $12.57 per share as of June 30, 2026. The carrying value of White Mountains's investment in MediaAlpha was $171 million as of September 30, 2026 compared to $225 million as of June 30, 2026.
On November 4, 2026, White Mountains agreed to sell 5.5 million shares of MediaAlpha for $13.90 per share. White Mountains will own 12.4 million shares of MediaAlpha after the sale, representing a 21% ownership interest based on the class A and class B common shares outstanding as of October 26, 2026. At this level of ownership, each $1.00 per share increase or decrease in the share price of MediaAlpha will result in an approximate $5.00 per share increase or decrease in White Mountains's book value per share.
We encourage you to read MediaAlpha's third quarter earnings release and related shareholder letter, which are available on MediaAlpha's investor relations website at https://investors.mediaalpha.com.
Other Operations
White Mountains's Other Operations reported pre-tax income (loss) of $(33) million and $5 million in the third quarter and first nine months of 2026 compared to $(24) million and $(45) million in the third quarter and first nine months of 2025. The results of White Mountains's Other Operations for the third quarter of 2026 were largely driven by the decline in MediaAlpha's share price. Unrealized investment gains (losses) from White Mountains's investment in MediaAlpha were $(54) million and $(60) million in the third quarter and first nine months of 2026 compared to $8 million and $2 million in the third quarter and first nine months of 2025. Excluding MediaAlpha, net realized and unrealized investment gains were $25 million and $105 million in the third quarter and first nine months of 2026 compared to $15 million and $50 million in the third quarter and first nine months of 2025. Net investment income was $14 million and $43 million in the third quarter and first nine months of 2026 compared to $6 million and $25 million in the third quarter and first nine months of 2025. White Mountains's Other Operations reported general and administrative expenses of $28 million and $118 million in the third quarter and first nine months of 2026 compared to $66 million and $170 million in the third quarter and first nine months of 2025. The decrease in general and administrative expenses in the third quarter and first nine months of 2026 was driven primarily by lower incentive compensation costs and loss and loss adjustment expenses in 2026 compared to 2025.
Share Repurchases
In the first nine months of 2026, White Mountains repurchased and retired 103,827 of its common shares for $217 million at an average share price of $2,088.39, or 93% of White Mountains's September 30, 2026 book value per share. Share repurchases in the third quarter of 2026 were minimal.
Investments
The total consolidated portfolio return was -0.6% in the third quarter of 2026. Excluding MediaAlpha, the total consolidated portfolio return was flat in the third quarter of 2026. The total consolidated portfolio return was 2.1% in the third quarter of 2025. Excluding MediaAlpha, the total consolidated portfolio return was 2.0% in the third quarter of 2025.
The total consolidated portfolio return was 3.0% in the first nine months of 2026. Excluding MediaAlpha, the total consolidated portfolio return was 3.9% in the first nine months of 2026. The total consolidated portfolio return was 6.6% in the first nine months of 2025. Excluding MediaAlpha, the total consolidated portfolio return was 6.8% in the first nine months of 2025.
Mark Plourde, President of White Mountains Advisors, said, "Excluding MediaAlpha, the total portfolio was flat in the quarter. Results were impacted by mark-to-market losses due to rising interest rates, offset by net investment income. Our short duration fixed income portfolio returned -0.7%, ahead of the Bloomberg Intermediate Aggregate Index return of -2.6%. Excluding MediaAlpha, the equity portfolio returned 0.8%, behind the S&P 500 Index return of 2.3%. Equity results were driven by lower relative returns from our market neutral positions and certain other long-term investments."
Additional Information
White Mountains is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange under the symbol WTM and the Bermuda Stock Exchange under the symbol WTM.BH. Additional financial information and other items of interest are available at the Company's website located at www.whitemountains.com. White Mountains expects to file its Form 10-Q today with the Securities and Exchange Commission and urges shareholders to refer to that document for more complete information concerning its financial results.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(millions)
(Unaudited)
September 30, 2026 December 31, 2025 September 30, 2025
-------------------------- -------------------------- --------------------------
Assets
P&C Insurance and
Reinsurance (Ark/WM
Outrigger)
Fixed maturity
investments $ 1,971.4 $ 1,917.9 $ 1,834.6
Common equity
securities 345.0 452.3 437.6
Short-term
investments 633.1 866.6 745.4
Other long-term
investments 868.0 689.7 676.5
-------------------------- -------------------------- --------------------------
Total investments 3,817.5 3,926.5 3,694.1
Cash (restricted
$28.6, $1.1, $8.0) 129.7 104.8 289.9
Reinsurance
recoverables 1,076.1 836.1 924.8
Insurance premiums
receivable 1,222.1 848.4 1,149.7
Deferred acquisition
costs 264.8 211.1 281.2
Goodwill and other
intangible assets 292.5 292.5 292.5
Other assets 344.6 134.7 164.6
-------------------------- -------------------------- --------------------------
Total P&C
Insurance and
Reinsurance
assets 7,147.3 6,354.1 6,796.8
-------------------------- -------------------------- --------------------------
Asset Management
(Kudu)
Short-term
investments 120.9 21.9 24.6
Other long-term
investments 1,319.1 1,291.4 1,214.4
-------------------------- -------------------------- --------------------------
Total investments 1,440.0 1,313.3 1,239.0
Cash 1.0 34.5 4.8
Accrued investment
income 22.0 25.3 24.2
Goodwill and other
intangible assets 7.6 7.7 7.7
Other assets 7.6 21.5 23.1
-------------------------- -------------------------- --------------------------
Total Asset
Management
assets 1,478.2 1,402.3 1,298.8
-------------------------- -------------------------- --------------------------
Financial Guarantee
(HG Global)
Fixed maturity
investments 707.6 693.4 686.5
Short-term
investments 40.7 90.8 56.2
-------------------------- -------------------------- --------------------------
Total investments 748.3 784.2 742.7
Cash .6 .1 .2
BAM surplus notes,
at fair value 335.5 339.0 396.2
Insurance premiums
receivable 13.6 11.4 7.7
Deferred acquisition
costs 102.0 96.9 93.2
Other assets 5.7 5.2 26.1
-------------------------- -------------------------- --------------------------
Total Financial
Guarantee assets 1,205.7 1,236.8 1,266.1
-------------------------- -------------------------- --------------------------
Specialty Insurance
Distribution
(Distinguished)
Short-term
investments 70.6 94.0 62.6
-------------------------- -------------------------- --------------------------
Total investments 70.6 94.0 62.6
Cash (restricted
$3.8, $0.1, $0.4) 4.3 2.7 1.5
Premiums,
commissions and
fees receivable 52.2 45.7 42.2
Goodwill and other
intangible assets 558.7 577.7 595.4
Other assets 35.1 15.3 12.0
-------------------------- -------------------------- --------------------------
Total Specialty
Insurance
Distribution
assets 720.9 735.4 713.7
-------------------------- -------------------------- --------------------------
Services,
Industrial and
Consumer (WTM
Partners)
Short-term
investments, at
fair value .6 .5 .5
-------------------------- -------------------------- --------------------------
Total investments .6 .5 .5
Cash 10.2 4.4 4.8
Accounts receivable 88.7 39.5 35.7
Contract assets 37.1 17.8 19.0
Goodwill and other
intangible assets 262.7 91.5 92.8
Other assets 42.2 28.7 29.2
-------------------------- -------------------------- --------------------------
Total Services,
Industrial and
Consumer
assets 441.5 182.4 182.0
-------------------------- -------------------------- --------------------------
Other Operations
Fixed maturity
investments 361.8 159.2 159.6
Common equity
securities 204.0 30.7 --
Investment in
MediaAlpha 170.9 231.2 203.2
Short-term
investments 236.8 806.9 198.6
Other long-term
investments 1,230.4 977.4 698.3
-------------------------- -------------------------- --------------------------
Total
investments 2,203.9 2,205.4 1,259.7
Cash 21.2 38.4 36.2
Goodwill and other
intangible assets 47.9 50.8 61.5
Other assets 91.1 95.9 62.6
Assets held for sale
- Bamboo Group -- -- 662.0
Assets held for sale
- Other 4.9 5.0 6.2
-------------------------- -------------------------- --------------------------
Total Other
Operations
assets 2,369.0 2,395.5 2,088.2
-------------------------- -------------------------- --------------------------
Total assets $ 13,362.6 $ 12,306.5 $ 12,345.6
========================== ========================== ==========================
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(millions)
(Unaudited)
September 30, 2026 December 31, 2025 September 30, 2025
-------------------------- -------------------------- --------------------------
Liabilities
P&C Insurance and
Reinsurance (Ark/WM
Outrigger)
Loss and loss
adjustment expense
reserves $ 2,747.4 $ 2,481.0 $ 2,477.9
Unearned insurance
premiums 1,427.4 1,026.1 1,427.6
Debt 159.0 159.7 159.7
Reinsurance payable 492.3 286.2 404.7
Contingent
consideration 400.0 328.3 229.5
Other liabilities 233.7 247.2 249.0
-------------------------- -------------------------- --------------------------
Total P&C
Insurance and
Reinsurance
liabilities 5,459.8 4,528.5 $ 4,948.4
-------------------------- -------------------------- --------------------------
Asset Management
(Kudu)
Debt 350.9 350.4 274.3
Other liabilities 122.6 96.5 85.0
-------------------------- -------------------------- --------------------------
Total Asset
Management
liabilities 473.5 446.9 359.3
-------------------------- -------------------------- --------------------------
Financial Guarantee
(HG Global)
Unearned insurance
premiums 342.5 327.9 316.3
Debt 197.4 147.8 147.7
Other liabilities 26.7 23.8 24.5
-------------------------- -------------------------- --------------------------
Total Financial
Guarantee
liabilities 566.6 499.5 488.5
-------------------------- -------------------------- --------------------------
Specialty Insurance
Distribution
(Distinguished)
Debt 140.9 140.8 148.7
Premiums and
commissions
payable 87.9 81.3 67.9
Other liabilities 88.6 85.0 59.4
-------------------------- -------------------------- --------------------------
Total Specialty
Insurance
Distribution
liabilities 317.4 307.1 276.0
-------------------------- -------------------------- --------------------------
Services,
Industrial and
Consumer (WTM
Partners)
Debt 63.1 19.4 15.6
Contract liabilities 43.2 24.8 23.1
Other liabilities 87.3 47.2 52.3
-------------------------- -------------------------- --------------------------
Total Services,
Industrial and
Consumer
liabilities 193.6 91.4 91.0
-------------------------- -------------------------- --------------------------
Other Operations
Debt 17.3 18.9 19.8
Accrued incentive
compensation 55.4 100.1 72.8
Other liabilities 49.0 55.4 56.1
Liabilities held for
sale - Bamboo
Group -- -- 312.3
Liabilities held for
sale - Other 3.7 3.6 4.3
-------------------------- -------------------------- --------------------------
Total Other
Operations
liabilities 125.4 178.0 465.3
-------------------------- -------------------------- --------------------------
Total liabilities 7,136.3 6,051.4 6,628.5
-------------------------- -------------------------- --------------------------
Redeemable
noncontrolling
interests 131.5 131.5 132.4
-------------------------- -------------------------- --------------------------
Equity
White Mountains's
common shareholders'
equity
White Mountains's
common shares and
paid-in surplus 574.7 579.0 584.6
Retained earnings 4,777.1 4,845.6 4,183.0
Accumulated other
comprehensive
income (loss),
after tax:
Net unrealized gains
(losses) from
foreign currency
translation 1.3 .8 --
-------------------------- -------------------------- --------------------------
Total White
Mountains's
common
shareholders'
equity 5,353.1 5,425.4 4,767.6
Nonredeemable
noncontrolling
interests 741.7 698.2 817.1
-------------------------- -------------------------- --------------------------
Total equity 6,094.8 6,123.6 5,584.7
-------------------------- -------------------------- --------------------------
Total liabilities,
redeemable
noncontrolling
interests and
equity $ 13,362.6 $ 12,306.5 $ 12,345.6
========================== ========================== ==========================
WHITE MOUNTAINS INSURANCE GROUP, LTD.
BOOK VALUE PER SHARE
(Unaudited)
September 30, 2026 June 30, 2026 December 31, 2025 September 30, 2025
-------------------- -------------------- -------------------- --------------------
Book value per
share numerator
(in millions):
White
Mountains's
common
shareholders'
equity $ 5,353.1 $ 5,388.3 $ 5,425.4 $ 4,767.6
Book value per
share
denominator (in
thousands):
Common shares
outstanding 2,386.8 2,386.7 2,479.7 2,575.2
Book value per
share $ 2,242.76 $ 2,257.60 $ 2,187.97 $ 1,851.33
-------------------- -------------------- -------------------- --------------------
Quarter-to-date
change in book
value per share,
including
dividends: (0.7) % 4.1 % 18.2 % 2.6 %
Year-to-date
change in book
value per share,
including
dividends: 2.6 % 3.2 % 25.4 % 6.1 %
-------------------- -------------------- -------------------- --------------------
Year-to-date
dividends per
share $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------- -------------------- -------------------- --------------------
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(millions)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------------------
2026 2025 2026 2025
--------------------- --------------------- --------------------- ---------------------
Revenues:
P&C Insurance and
Reinsurance (Ark/WM
Outrigger)
Earned insurance
premiums $ 508.8 $ 542.2 $ 1,258.8 $ 1,264.4
Net investment
income 27.8 27.2 84.5 77.0
Net realized and
unrealized
investment gains
(losses) (40.3) 17.8 (42.7) 98.4
Other revenues 4.5 2.3 16.1 10.8
--------------------- --------------------- --------------------- ---------------------
Total P&C Insurance
and Reinsurance
revenues 500.8 589.5 1,316.7 1,450.6
--------------------- --------------------- --------------------- ---------------------
Asset Management
(Kudu)
Net investment
income 20.7 18.0 60.5 56.7
Net realized and
unrealized
investment gains
(losses) (25.7) 36.1 66.0 80.9
Other revenues -- .3 .4 1.0
--------------------- --------------------- --------------------- ---------------------
Total Asset
Management
revenues (5.0) 54.4 126.9 138.6
--------------------- --------------------- --------------------- ---------------------
Financial Guarantee
(HG Global)
Earned insurance
premiums 8.6 7.5 24.0 22.8
Net investment
income 7.9 7.0 23.4 19.8
Net realized and
unrealized
investment gains
(losses) (28.8) 7.2 (36.0) 20.3
Interest income
from BAM surplus
notes 6.8 7.5 20.6 22.5
Change in fair
value of BAM
surplus notes (16.1) -- (16.1) --
Other revenues .1 .1 .2 .2
--------------------- --------------------- --------------------- ---------------------
Total Financial
Guarantee
revenues (21.5) 29.3 16.1 85.6
--------------------- --------------------- --------------------- ---------------------
Specialty Insurance
Distribution
(Distinguished)
Commission and fee
revenues 55.2 14.1 151.4 14.1
Other revenues .8 .2 2.3 .2
--------------------- --------------------- --------------------- ---------------------
Total Specialty
Insurance
Distribution
revenues 56.0 14.3 153.7 14.3
--------------------- --------------------- --------------------- ---------------------
Services,
Industrial and
Consumer (WTM
Partners)
Product and service
revenues 106.8 54.0 243.3 96.8
--------------------- --------------------- --------------------- ---------------------
Total Services,
Industrial and
Consumer revenues 106.8 54.0 243.3 96.8
--------------------- --------------------- --------------------- ---------------------
P&C Insurance
Distribution
(Bamboo)
Commission and fee
revenues -- 63.9 -- 167.2
Earned insurance
premiums -- 5.2 -- 21.7
Other revenues -- 2.3 -- 6.4
--------------------- --------------------- --------------------- ---------------------
Total P&C Insurance
Distribution
revenues -- 71.4 -- 195.3
--------------------- --------------------- --------------------- ---------------------
Other Operations
Net investment
income 13.5 6.2 42.5 24.5
Net realized and
unrealized
investment gains
(losses) 25.4 14.9 104.7 49.5
Net realized and
unrealized
investment gains
(losses) from
investment in
MediaAlpha (53.6) 7.7 (60.4) 1.6
Product and service
revenues 14.3 14.8 41.8 41.9
Net gain on sale
of the Bamboo
Group -- -- 2.4 --
Other revenues 4.4 7.7 15.8 32.5
--------------------- --------------------- --------------------- ---------------------
Total Other
Operations
revenues 4.0 51.3 146.8 150.0
--------------------- --------------------- --------------------- ---------------------
Total revenues $ 641.1 $ 864.2 $ 2,003.5 $ 2,131.2
===================== ===================== ===================== =====================
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(millions)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
---------------------------------------------- --------------------------------------------
2026 2025 2026 2025
----------------------- --------------------- --------------------- ---------------------
Expenses:
P&C Insurance and
Reinsurance (Ark/WM
Outrigger)
Loss and loss
adjustment
expenses $ 230.1 $ 254.6 $ 612.4 $ 652.1
Insurance
acquisition
expenses 113.1 106.8 315.6 287.5
General and
administrative
expenses 59.5 61.7 151.4 154.1
Change in fair
value of
contingent
consideration 30.0 36.1 71.7 74.2
Interest expense 4.2 4.4 12.4 12.9
----------------------- --------------------- --------------------- ---------------------
Total P&C Insurance
and Reinsurance
expenses 436.9 463.6 1,163.5 1,180.8
----------------------- --------------------- --------------------- ---------------------
Asset Management
(Kudu)
General and
administrative
expenses 2.9 4.7 11.8 12.3
Interest expense 7.4 6.1 21.7 18.6
----------------------- --------------------- --------------------- ---------------------
Total Asset
Management
expenses 10.3 10.8 33.5 30.9
----------------------- --------------------- --------------------- ---------------------
Financial Guarantee
(HG Global)
Insurance
acquisition
expenses 2.1 2.0 6.3 5.9
General and
administrative
expenses .4 1.0 5.3 2.6
Interest expense 3.8 4.3 11.1 13.4
----------------------- --------------------- --------------------- ---------------------
Total Financial
Guarantee
expenses 6.3 7.3 22.7 21.9
----------------------- --------------------- --------------------- ---------------------
Specialty Insurance
Distribution
(Distinguished)
Broker commission
expenses 22.0 5.5 62.5 5.5
General and
administrative
expenses 43.3 10.2 121.5 10.2
Interest expense 3.4 1.3 10.5 1.3
----------------------- --------------------- --------------------- ---------------------
Total Specialty
Insurance
Distribution
expenses 68.7 17.0 194.5 17.0
----------------------- --------------------- --------------------- ---------------------
Services,
Industrial and
Consumer (WTM
Partners)
Cost of sales 84.1 47.1 192.8 82.3
General and
administrative
expenses 20.1 7.8 45.4 17.2
Interest expense 1.2 .3 2.1 .6
----------------------- --------------------- --------------------- ---------------------
Total Services,
Industrial and
Consumer expenses 105.4 55.2 240.3 100.1
----------------------- --------------------- --------------------- ---------------------
P&C Insurance
Distribution
(Bamboo)
Broker commission
expenses -- 21.5 -- 56.8
Loss and loss
adjustment
expenses -- 3.3 -- 15.9
Insurance
acquisition
expenses -- 2.0 -- 8.0
General and
administrative
expenses -- 26.8 -- 69.4
Interest expense -- 2.8 -- 7.8
----------------------- --------------------- --------------------- ---------------------
Total P&C Insurance
Distribution
expenses -- 56.4 -- 157.9
----------------------- --------------------- --------------------- ---------------------
Other Operations
Cost of sales 7.7 8.2 21.8 22.9
General and
administrative
expenses 28.3 66.2 117.9 170.3
Interest expense .7 .7 2.0 1.7
----------------------- --------------------- --------------------- ---------------------
Total Other
Operations
expenses 36.7 75.1 141.7 194.9
----------------------- --------------------- --------------------- ---------------------
Total expenses 664.3 685.4 1,796.2 1,703.5
----------------------- --------------------- --------------------- ---------------------
Pre-tax income
(loss) (23.2) 178.8 207.3 427.7
Income tax
(expense) benefit (6.4) (17.1) (32.0) (39.6)
----------------------- --------------------- --------------------- ---------------------
Net income (loss) (29.6) 161.7 175.3 388.1
Net (income) loss
attributable to
noncontrolling
interests (9.4) (47.9) (42.0) (117.5)
----------------------- --------------------- --------------------- ---------------------
Net income (loss)
attributable to
White Mountains's
common
shareholders $ (39.0) $ 113.8 $ 133.3 $ 270.6
======================= ===================== ===================== =====================
WHITE MOUNTAINS INSURANCE GROUP, LTD.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(millions)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------------------
2026 2025 2026 2025
---------------------- -------------------- -------------------- --------------------
Net income (loss)
attributable to
White
Mountains's
common
shareholders $ (39.0) $ 113.8 $ 133.3 $ 270.6
Other
comprehensive
income (loss),
net of tax .1 (.6) .6 2.5
---------------------- -------------------- -------------------- --------------------
Comprehensive
income (loss) (38.9) 113.2 133.9 273.1
Other
comprehensive
(income) loss
attributable to
noncontrolling
interests (.1) .3 (.1) (.8)
---------------------- -------------------- -------------------- --------------------
Comprehensive
income (loss)
attributable to
White
Mountains's
common
shareholders $ (39.0) $ 113.5 $ 133.8 $ 272.3
====================== ==================== ==================== ====================
WHITE MOUNTAINS INSURANCE GROUP, LTD.
EARNINGS PER SHARE
(Unaudited)
Earnings
(loss) per
share
attributable
to White
Mountains's
common
shareholders Three Months Ended September 30, Nine Months Ended September 30,
------------------------------------------------ -------------------------------------------
2026 2025 2026 2025
----------------------- ----------------------- -------------------- ---------------------
Basic
earnings
(loss) per
share $ (17.71) $ 44.18 $ 50.62 $ 105.18
Diluted
earnings
(loss) per
share $ (17.71) $ 44.18 $ 50.62 $ 105.18
Dividends
declared and
paid per
White
Mountains's
common
share $ -- $ -- $ 1.00 $ 1.00
----------------------- ----------------------- -------------------- ---------------------
WHITE MOUNTAINS INSURANCE GROUP, LTD.
QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS)
(millions)
(Unaudited)
For the Three
Months Ended
September 30,
2026 Ark/WM Outrigger
---------------------------
WM
Outrigger WTM Other
Ark Re Kudu HG Global Distinguished Partners Operations Total
----------- -------------- ------------ --------------- ------------------- ------------ ---------------- ------------
Revenues:
Earned insurance
premiums (1) $ 509.6 $ (.8) $ -- $ 8.6 $ -- $ -- $ .3 $ 517.7
Net investment
income (2) 27.2 .6 20.7 7.9 .7 -- 13.5 70.6
Net realized and
unrealized
investment
gains (losses) (40.3) -- (25.7) (28.8) -- -- 25.4 (69.4)
Net realized and
unrealized
investment
gains (losses)
from
investment in
MediaAlpha -- -- -- -- -- -- (53.6) (53.6)
Interest income
from BAM
surplus notes -- -- -- 6.8 -- -- -- 6.8
Change in fair
value of BAM
surplus notes -- -- -- (16.1) -- -- -- (16.1)
Commission and
fee revenues
(1) -- -- -- -- 55.2 -- 4.1 59.3
Product and
services
revenues -- -- -- -- -- 106.8 14.3 121.1
Other revenues
(1) (2) 4.5 -- -- .1 .1 -- -- 4.7
----------- -------------- ------------ --------------- ------------------- ------------ ---------------- ------------
Total
revenues 501.0 (.2) (5.0) (21.5) 56.0 106.8 4.0 641.1
----------- -------------- ------------ --------------- ------------------- ------------ ---------------- ------------
Expenses:
Loss and loss
adjustment
expenses (3) 230.1 -- -- -- -- -- .3 230.4
Insurance
acquisition
expenses (3) 113.4 (.3) -- 2.1 -- -- .1 115.3
Cost of sales -- -- -- -- -- 84.1 7.7 91.8
Broker commission
expenses -- -- -- -- 22.0 -- -- 22.0
Amortization of
other intangible
assets (4) -- -- -- -- 6.4 5.1 1.0 12.5
General and
administrative
expenses (3) (4)
(5) 59.5 -- 2.9 .4 36.9 15.0 26.9 141.6
Change in fair
value of
contingent
consideration 30.0 -- -- -- -- -- -- 30.0
Interest expense 4.2 -- 7.4 3.8 3.4 1.2 .7 20.7
----------- -------------- ------------ --------------- ------------------- ------------ ---------------- ------------
Total
expenses 437.2 (.3) 10.3 6.3 68.7 105.4 36.7 664.3
----------- -------------- ------------ --------------- ------------------- ------------ ---------------- ------------
Pre-tax income
(loss) $ 63.8 $ .1 $ (15.3) $ (27.8) $ (12.7) $ 1.4 $ (32.7) $ (23.2)
=========== ============== ============ =============== =================== ============ ================ ============
(1) Other Operations's earned insurance premiums and commission and fee
revenues are included in other revenues in the consolidated statement of
operations.
(2) Distinguished's net investment income is included in other revenues in
the consolidated statement of operations.
(3) Other Operations's loss and loss adjustment expenses and insurance
acquisition expenses are included in general and administrative expenses
in the consolidated statement of operations.
(4) Amortization of other intangible assets is included in general and
administrative expenses in the consolidated statement of operations.
(5) Ark's general and administrative expenses include $40.4 of other
underwriting expenses.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
QTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED)
(millions)
(Unaudited)
For the Three
Months Ended
September 30,
2025 Ark/WM Outrigger
---------------------
WM
Outrigger WTM Other
Ark Re Kudu HG Global Distinguished (1) Partners Bamboo Operations Total
--------- ---------- --------- ------------ ---------------------- ---------- ---------- ------------- --------
Revenues:
Earned insurance
premiums (2) $ 498.6 $ 43.6 $ -- $ 7.5 $ -- $ -- $ 5.2 $ 2.9 $ 557.8
Net investment
income (3) 24.8 2.4 18.0 7.0 .2 -- .6 6.2 59.2
Net realized and
unrealized
investment
gains (losses)
(3) 17.8 -- 36.1 7.2 -- -- .2 14.9 76.2
Net realized
and unrealized
investment
gains (losses)
from
investment in
MediaAlpha -- -- -- -- -- -- -- 7.7 7.7
Interest income
from BAM
surplus notes -- -- -- 7.5 -- -- -- -- 7.5
Commission and
fee revenues
(2) -- -- -- -- 14.1 -- 63.9 4.3 82.3
Product and
services
revenues -- -- -- -- -- 54.0 -- 14.8 68.8
Other revenues
(2) (3) 2.3 -- .3 .1 -- -- 1.5 .5 4.7
--------- ---------- --------- ------------ ---------------------- ---------- ---------- ------------- --------
Total
revenues 543.5 46.0 54.4 29.3 14.3 54.0 71.4 51.3 864.2
--------- ---------- --------- ------------ ---------------------- ---------- ---------- ------------- --------
Expenses:
Loss and loss
adjustment
expenses (4) 252.4 2.2 -- -- -- -- 3.3 .6 258.5
Insurance
acquisition
expenses (4) 92.4 14.4 -- 2.0 -- -- 2.0 1.0 111.8
Cost of sales -- -- -- -- -- 47.1 -- 8.2 55.3
Broker
commission
expenses -- -- -- -- 5.5 -- 21.5 -- 27.0
Amortization of
other
intangible
assets (5) -- -- -- -- -- 2.5 4.0 1.3 7.8
General and
administrative
expenses (4)
(5) (6) 61.7 -- 4.7 1.0 10.2 5.3 22.8 63.3 169.0
Change in fair
value of
contingent
consideration 36.1 -- -- -- -- -- -- -- 36.1
Interest expense 4.4 -- 6.1 4.3 1.3 .3 2.8 .7 19.9
--------- ---------- --------- ------------ ---------------------- ---------- ---------- ------------- --------
Total
expenses 447.0 16.6 10.8 7.3 17.0 55.2 56.4 75.1 685.4
--------- ---------- --------- ------------ ---------------------- ---------- ---------- ------------- --------
Pre-tax income
(loss) $ 96.5 $ 29.4 $ 43.6 $ 22.0 $ (2.7) $ (1.2) $ 15.0 $ (23.8) $ 178.8
========= ========== ========= ============ ====================== ========== ========== ============= ========
(1) Distinguished's results are from September 2, 2025, the date of
acquisition, through September 30, 2025.
(2) Other Operations's earned insurance premiums and commission and fee
revenues are included in other revenues in the consolidated statement of
operations.
(3) Net investment income and net realized and unrealized investment gains
(losses) for both Distinguished and Bamboo are included in other revenues
in the consolidated statement of operations.
(4) Other Operations's loss and loss adjustment expenses and insurance
acquisition expenses are included in general and administrative expenses
in the consolidated statement of operations.
(5) Amortization of other intangible assets is included in general and
administrative expenses in the consolidated statement of operations.
(6) Ark's general and administrative expenses include $33.6 of other
underwriting expenses.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS)
(millions)
(Unaudited)
For the Nine
Months Ended
September 30,
2026 Ark/WM Outrigger
--------------------------
WM
Outrigger WTM Other
Ark Re Kudu HG Global Distinguished Partners Operations Total
----------- ------------- -------------- -------------- ------------------- -------------- ------------- -----------
Revenues:
Earned insurance
premiums (1) $ 1,256.1 $ 2.7 $ -- $ 24.0 $ -- $ -- $ 4.4 $ 1,287.2
Net investment
income (2) 81.5 3.0 60.5 23.4 2.0 -- 42.5 212.9
Net realized and
unrealized
investment
gains (losses) (42.6) (.1) 66.0 (36.0) -- -- 104.7 92.0
Net realized and
unrealized
investment
gains (losses)
from
investment in
MediaAlpha -- -- -- -- -- -- (60.4) (60.4)
Interest income
from BAM
surplus notes -- -- -- 20.6 -- -- -- 20.6
Change in fair
value of BAM
surplus notes -- -- -- (16.1) -- -- -- (16.1)
Commission and fee
revenues (1) -- -- -- -- 151.4 -- 11.5 162.9
Product and
services
revenues -- -- -- -- -- 243.3 41.8 285.1
Net gain on sale
of the Bamboo
Group -- -- -- -- -- -- 2.4 2.4
Other revenues (1)
(2) 16.1 -- .4 .2 .3 -- (.1) 16.9
----------- ------------- -------------- -------------- ------------------- -------------- ------------- -----------
Total
revenues 1,311.1 5.6 126.9 16.1 153.7 243.3 146.8 2,003.5
----------- ------------- -------------- -------------- ------------------- -------------- ------------- -----------
Expenses:
Loss and loss
adjustment
expenses (3) 612.2 .2 -- -- -- -- .7 613.1
Insurance
acquisition
expenses (3) 314.7 .9 -- 6.3 -- -- 1.7 323.6
Cost of sales -- -- -- -- -- 192.8 21.8 214.6
Broker commission
expenses -- -- -- -- 62.5 -- -- 62.5
Amortization of
other intangible
assets (4) -- -- .1 -- 20.2 7.6 2.9 30.8
General and
administrative
expenses (3) (4)
(5) 151.4 -- 11.7 5.3 101.3 37.8 112.6 420.1
Change in fair
value of
contingent
consideration 71.7 -- -- -- -- -- -- 71.7
Interest expense 12.4 -- 21.7 11.1 10.5 2.1 2.0 59.8
----------- ------------- -------------- -------------- ------------------- -------------- ------------- -----------
Total
expenses 1,162.4 1.1 33.5 22.7 194.5 240.3 141.7 1,796.2
----------- ------------- -------------- -------------- ------------------- -------------- ------------- -----------
Pre-tax income
(loss) $ 148.7 $ 4.5 $ 93.4 $ (6.6) $ (40.8) $ 3.0 $ 5.1 $ 207.3
=========== ============= ============== ============== =================== ============== ============= ===========
(1) Other Operations's earned insurance premiums and commission and fee
revenues are included in other revenues in the consolidated statement of
operations.
(2) Distinguished's net investment income is included in other revenues in
the consolidated statement of operations.
(3) Other Operations's loss and loss adjustment expenses and insurance
acquisition expenses are included in general and administrative expenses
in the consolidated statement of operations.
(4) Amortization of other intangible assets is included in general and
administrative expenses in the consolidated statement of operations.
(5) Ark's general and administrative expenses include $111.6 of other
underwriting expenses.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
YTD SEGMENT STATEMENTS OF PRE-TAX INCOME (LOSS) (CONTINUED)
(millions)
(Unaudited)
For the Nine Months
Ended September 30,
2025 Ark/WM Outrigger
---------------------
WM
Outrigger WTM Other
Ark Re Kudu HG Global Distinguished (1) Partners Bamboo Operations Total
--------- ---------- ------- ----------- ---------------------- ----------- --------- ------------ ---------
Revenues:
Earned insurance
premiums (2) $ 1,201.7 $ 62.7 $ -- $ 22.8 $ -- $ -- $ 21.7 $ 19.1 $ 1,328.0
Net investment
income (3) 70.2 6.8 56.7 19.8 .2 -- 2.0 24.5 180.2
Net realized and
unrealized
investment gains
(losses) (3) 98.5 (.1) 80.9 20.3 -- -- .5 49.5 249.6
Net realized and
unrealized
investment gains
(losses) from
investment in
MediaAlpha -- -- -- -- -- -- -- 1.6 1.6
Interest income from
BAM surplus notes -- -- -- 22.5 -- -- -- -- 22.5
Commission and fee
revenues (2) -- -- -- -- 14.1 -- 167.2 12.4 193.7
Product and services
revenues -- -- -- -- -- 96.8 -- 41.9 138.7
Other revenues (2)
(3) 10.8 -- 1.0 .2 -- -- 3.9 1.0 16.9
--------- ---------- ------- ----------- ---------------------- ----------- --------- ------------ ---------
Total revenues 1,381.2 69.4 138.6 85.6 14.3 96.8 195.3 150.0 2,131.2
--------- ---------- ------- ----------- ---------------------- ----------- --------- ------------ ---------
Expenses:
Loss and loss
adjustment expenses
(4) 628.0 24.1 -- -- -- -- 15.9 18.8 686.8
Insurance
acquisition
expenses (4) 272.0 15.5 -- 5.9 -- -- 8.0 7.0 308.4
Cost of sales -- -- -- -- -- 82.3 -- 22.9 105.2
Broker commission
expenses -- -- -- -- 5.5 -- 56.8 -- 62.3
Amortization of
other intangible
assets (5) -- -- .2 -- -- 2.5 12.0 3.4 18.1
General and
administrative
expenses (4) (5)
(6) 154.0 .1 12.1 2.6 10.2 14.7 57.4 141.1 392.2
Change in fair value
of contingent
consideration 74.2 -- -- -- -- -- -- -- 74.2
Interest expense 12.9 -- 18.6 13.4 1.3 .6 7.8 1.7 56.3
--------- ---------- ------- ----------- ---------------------- ----------- --------- ------------ ---------
Total expenses 1,141.1 39.7 30.9 21.9 17.0 100.1 157.9 194.9 1,703.5
--------- ---------- ------- ----------- ---------------------- ----------- --------- ------------ ---------
Pre-tax income (loss) $ 240.1 $ 29.7 $ 107.7 $ 63.7 $ (2.7) $ (3.3) $ 37.4 $ (44.9) $ 427.7
========= ========== ======= =========== ====================== =========== ========= ============ =========
(1) Distinguished's results are from September 2, 2025, the date of
acquisition, through September 30, 2025.
(2) Other Operations's earned insurance premiums and commission and fee
revenues are included in other revenues in the consolidated statement of
operations.
(3) Net investment income and net realized and unrealized investment gains
(losses) for both Distinguished and Bamboo are included in other revenues
in the consolidated statement of operations.
(4) Other Operations's loss and loss adjustment expenses and insurance
acquisition expenses are included in general and administrative expenses
in the consolidated statement of operations.
(5) Amortization of other intangible assets is included in general and
administrative expenses in the consolidated statement of operations.
(6) Ark's general and administrative expenses include $108.4 of other
underwriting expenses.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SELECTED FINANCIAL DATA
($ in millions)
(Unaudited)
Ark/WM
Outrigger Three Months Ended September 30, 2026
-------------- ------------------------------------------------------------
WM
Ark Outrigger Re Elimination Total
------------ --------------- --------------- ------------
Insurance
premiums:
Gross written
premiums $ 386.0 $ (.8) $ .8 $ 386.0
Net written
premiums $ 337.9 $ (.8) $ -- $ 337.1
Net earned
premiums $ 509.6 $ (.8) $ -- $ 508.8
Insurance
expenses:
Loss and loss
adjustment
expenses $ 230.1 $ -- $ -- $ 230.1
Insurance
acquisition
expenses 113.4 (.3) -- 113.1
Other
underwriting
expenses (1) 40.4 -- -- 40.4
------------ --------------- --------------- ------------
Total
insurance
expenses $ 383.9 $ (.3) $ -- $ 383.6
============ =============== =============== ============
Insurance
ratios:
Loss and loss
adjustment
expenses 45.2 % -- % -- % 45.2 %
Insurance
acquisition
expenses 22.3 37.5 -- 22.2
Other
underwriting
expenses 7.8 -- -- 8.0
------------ --------------- --------------- ------------
Combined Ratio 75.3 % 37.5 % -- % 75.4 %
============ =============== =============== ============
(1) Included within general and administrative expenses in the consolidated
statement of operations.
Ark/WM
Outrigger Three Months Ended September 30, 2025
-------------- ------------------------------------------------------------
WM
Ark Outrigger Re Elimination Total
------------ --------------- --------------- ------------
Insurance
premiums:
Gross written
premiums $ 366.4 $ 3.6 $ (3.6) $ 366.4
Net written
premiums $ 283.4 $ 3.6 $ -- $ 287.0
Net earned
premiums $ 498.6 $ 43.6 $ -- $ 542.2
Insurance
expenses:
Loss and loss
adjustment
expenses $ 252.4 $ 2.2 $ -- $ 254.6
Insurance
acquisition
expenses 92.4 14.4 -- 106.8
Other
underwriting
expenses (1) 33.6 -- -- 33.6
------------ --------------- --------------- ------------
Total
insurance
expenses $ 378.4 $ 16.6 $ -- $ 395.0
============ =============== =============== ============
Insurance
ratios:
Loss and loss
adjustment
expense 50.6 % 5.0 % -- % 47.0 %
Insurance
acquisition
expenses 18.5 33.1 -- 19.7
Other
underwriting
expense 6.7 -- -- 6.2
------------ --------------- --------------- ------------
Combined Ratio 75.8 % 38.1 % -- % 72.9 %
============ =============== =============== ============
(1) Included within general and administrative expenses in the consolidated
statement of operations.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SELECTED FINANCIAL DATA (CONTINUED)
($ in millions)
(Unaudited)
Ark/WM
Outrigger Nine Months Ended September 30, 2026
-------------- -----------------------------------------------------------
WM
Ark Outrigger Re Elimination Total
------------ --------------- -------------- ------------
Insurance
premiums:
Gross written
premiums $ 2,254.4 $ (1.2) $ 1.2 $ 2,254.4
Net written
premiums $ 1,465.8 $ (1.2) $ -- $ 1,464.6
Net earned
premiums $ 1,256.1 $ 2.7 $ -- $ 1,258.8
Insurance
expenses:
Loss and loss
adjustment
expenses $ 612.2 $ .2 $ -- $ 612.4
Insurance
acquisition
expenses 314.7 .9 -- 315.6
Other
underwriting
expenses (1) 111.6 -- -- 111.6
------------ --------------- -------------- ------------
Total
insurance
expenses $ 1,038.5 $ 1.1 $ -- $ 1,039.6
============ =============== ============== ============
Insurance
ratios:
Loss and loss
adjustment
expense 48.7 % 7.4 % -- % 48.6 %
Insurance
acquisition
expenses 25.1 33.3 -- 25.1
Other
underwriting
expense 8.9 -- -- 8.9
------------ --------------- -------------- ------------
Combined Ratio 82.7 % 40.7 % -- % 82.6 %
============ =============== ============== ============
(1) Included within general and administrative expenses in the consolidated
statement of operations.
Ark/WM
Outrigger Nine Months Ended September 30, 2025
-------------- -----------------------------------------------------------
WM
Ark Outrigger Re Elimination Total
------------ --------------- -------------- ------------
Insurance
premiums:
Gross written
premiums $ 2,289.2 $ 83.7 $ (83.7) $ 2,289.2
Net written
premiums $ 1,509.6 $ 83.7 $ -- $ 1,593.3
Net earned
premiums $ 1,201.7 $ 62.7 $ -- $ 1,264.4
Insurance
expenses:
Loss and loss
adjustment
expenses $ 628.0 $ 24.1 $ -- $ 652.1
Insurance
acquisition
expenses 272.0 15.5 -- 287.5
Other
underwriting
expenses (1) 108.4 -- -- 108.4
------------ --------------- -------------- ------------
Total
insurance
expenses $ 1,008.4 $ 39.6 $ -- $ 1,048.0
============ =============== ============== ============
Insurance
ratios:
Loss and loss
adjustment
expense 52.3 % 38.4 % -- % 51.6 %
Insurance
acquisition
expenses 22.6 24.8 -- 22.7
Other
underwriting
expense 9.0 -- -- 8.6
------------ --------------- -------------- ------------
Combined Ratio 83.9 % 63.2 % -- % 82.9 %
============ =============== ============== ============
(1) Included within general and administrative expenses in the consolidated
statement of operations.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SELECTED FINANCIAL DATA (CONTINUED)
($ in millions)
(Unaudited)
Three Months Three Months Nine Months Nine Months Twelve Months
Ended Ended Ended Ended Ended
September 30, September 30, September 30, September 30, September 30,
Kudu 2025 2026 2025 2026 2026
--------------- ------------------- ------------------- ------------------- ------------------- ---------------
Net investment
income (1) $ 18.0 $ 20.7 $ 56.7 $ 60.5 $ 82.5
Net realized and
unrealized
investment
gains (losses) 36.1 (25.7) 80.9 66.0 88.6
Other revenues .3 -- 1.0 .4 .6
------------------- ------------------- ------------------- ------------------- ---------------
Total revenues 54.4 (5.0) 138.6 126.9 171.7
General and
administrative
expenses 4.7 2.9 12.3 11.8 17.4
Interest expense 6.1 7.4 18.6 21.7 29.0
------------------- ------------------- ------------------- ------------------- ---------------
Total expenses 10.8 10.3 30.9 33.5 46.4
------------------- ------------------- ------------------- ------------------- ---------------
GAAP pre-tax
income (loss) 43.6 (15.3) 107.7 93.4 125.3
Income tax
(expense)
benefit (1.9) (6.1) (12.5) (34.9) (46.6)
------------------- ------------------- ------------------- ------------------- ---------------
GAAP net income
(loss) 41.7 (21.4) 95.2 58.5 78.7
Add back:
Interest expense 6.1 7.4 18.6 21.7 29.0
Income tax
expense
(benefit) 1.9 6.1 12.5 34.9 46.6
Depreciation .1 -- .1 .1 .2
Amortization of
other
intangible
assets -- -- .2 .1 .2
------------------- ------------------- ------------------- ------------------- ---------------
EBITDA 49.8 (7.9) 126.6 115.3 154.7
Exclude:
Net realized and
unrealized
investment
(gains) losses (36.1) 25.7 (80.9) (66.0) (88.6)
Non-cash
equity-based
compensation
expense -- -- -- -- .5
Transaction
expenses 1.0 -- 1.0 1.1 2.0
------------------- ------------------- ------------------- ------------------- ---------------
Adjusted EBITDA $ 14.7 $ 17.8 $ 46.7 $ 50.4 $ 68.6
=================== =================== =================== ===================
Adjustment to annualize partial year revenues from participation contracts acquired 2.1
Adjustment to remove partial year revenues from participation contracts sold (1.4)
---------------
Annualized
adjusted
EBITDA $ 69.3
===============
GAAP net
investment
income (1) $ 82.5
Adjustment to annualize partial year revenues from participation contracts acquired 2.1
Adjustment to remove partial year revenues from participation contracts sold (1.4)
---------------
Annualized
revenue $ 83.2
===============
Net equity
capital drawn $ 480.6
Debt capital
drawn 358.3
---------------
Total net
capital drawn
and invested
(2) $ 838.9
===============
GAAP net
investment
income revenue
yield 9.8 %
===============
Cash revenue
yield 9.9 %
===============
Return on equity
(3) 8.1 %
===============
(1) Net investment income includes revenues from participation contracts and
income from short-term and other long-term investments.
(2) Total net capital drawn represents equity and debt capital drawn and
invested less cumulative distributions.
(3) Return on equity is calculated based on the GAAP net income (loss)
divided by the average of Kudu's beginning and ending GAAP equity.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SELECTED FINANCIAL DATA (CONTINUED)
(millions)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
---------------------------------------- ----------------------------------------
Kudu 2026 2025 2026 2025
----------------- ------------------- ------------------- ------------------- -------------------
Beginning balance
of Kudu's
participation
contracts (1) $ 1,344.6 $ 1,121.1 $ 1,285.0 $ 1,008.4
Contributions to
participation
contracts
(2)(3) .2 51.1 43.5 119.3
Proceeds from
participation
contracts sold
(3) -- -- (75.1) --
Net realized and
unrealized
investment gains
(losses) on
participation
contracts sold
and pending
sale (4) 1.3 .8 27.8 9.9
Net unrealized
investment gains
(losses) on
participation
contracts -
all other (5) (27.0) 35.2 37.9 70.6
------------------- ------------------- ------------------- -------------------
Ending balance of
Kudu's
participation
contracts (6) $ 1,319.1 $ 1,208.2 $ 1,319.1 $ 1,208.2
=================== =================== =================== ===================
(1) As of June 30, 2025, December 31, 2025 and 2024, Kudu's other long-term
investments also include $6.1, $6.4 and $5.6 related to a private debt
instrument.
(2) Includes contributions to new and existing participation contracts.
(3) Includes $3.5 of non-cash contributions to (proceeds from) participation
contracts for the nine months ended September 30, 2026.
(4) Includes net realized and unrealized investment gains (losses) recognized
from participation contracts beginning in the quarter a contract is
classified as pending sale.
(5) Includes net unrealized investment gains (losses) recognized from (i)
ongoing participation contracts and (ii) participation contracts prior to
classification as pending sale.
(6) As of September 30, 2025, Kudu's other long-term investments also include
$6.2 related to a private debt instrument.
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SELECTED FINANCIAL DATA (CONTINUED)
($ in millions)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------------------- ------------------------------------------
HG Global 2026 2025 2026 2025
------------- --------------------- --------------------- -------------------- --------------------
Par value
assumed:
Par value of
primary
market
policies
assumed (1) $ 755.5 $ 692.9 $ 1,914.9 $ 1,860.0
Par value of
secondary
market
policies
assumed (1) 173.4 157.5 349.2 348.2
--------------------- --------------------- -------------------- --------------------
Total par
value of
policies
assumed $ 928.9 $ 850.4 $ 2,264.1 $ 2,208.2
===================== ===================== ==================== ====================
Reinsurance
premiums:
Gross written
premiums from
primary
market $ 15.4 $ 8.9 $ 28.4 $ 29.4
Gross written
premiums from
secondary
market 3.9 7.0 10.2 12.4
--------------------- --------------------- -------------------- --------------------
Total gross
written
premiums 19.3 15.9 38.6 41.8
Ceding
commission
paid 5.7 4.8 11.4 12.5
--------------------- --------------------- -------------------- --------------------
Total gross
written
premiums
net of
ceding
commission
paid $ 13.6 $ 11.1 $ 27.2 $ 29.3
===================== ===================== ==================== ====================
Earned
premiums $ 8.6 $ 7.5 $ 24.0 $ 22.8
Pricing:
Gross pricing 204 bps 128 bps 148 bps 158 bps
from primary
market
Gross pricing 225 bps 444 bps 292 bps 356 bps
from
secondary
market
Total gross 208 bps 187 bps 170 bps 189 bps
pricing
--------------------- --------------------- -------------------- --------------------
Total pricing 146 bps 131 bps 120 bps 133 bps
net of
ceding
commission
paid
--------------------- --------------------- -------------------- --------------------
(1) For capital appreciation bonds, par is adjusted to the estimated
equivalent par value for current interest paying bonds.
As of As of As of As of
HG Global September 30, 2026 June 30, 2026 December 31, 2025 September 30, 2025
-------------- ------------------------ ------------------------ ------------------------ ------------------------
Unearned
premiums $ 342.5 $ 331.8 $ 327.9 $ 316.3
Deferred
acquisition
costs 102.0 98.5 96.9 93.2
------------------------ ------------------------ ------------------------ ------------------------
Unearned
premiums,
net of
deferred
acquisition
costs $ 240.5 $ 233.3 $ 231.0 $ 223.1
======================== ======================== ======================== ========================
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SELECTED FINANCIAL DATA (CONTINUED)
(millions)
(Unaudited)
September 2, 2025 - Three Months Ended Nine Months Ended Twelve Months Ended
Distinguished September 30, 2025 September 30, 2026 September 30, 2026 September 30, 2026
--------------- -------------------------- ----------------------------- ------------------------ -------------------------
Commission and
fee revenues $ 14.1 $ 55.2 $ 151.4 $ 194.0
Other revenues .2 .8 2.3 3.1
-------------------------- ----------------------------- ------------------------ -------------------------
Total revenues 14.3 56.0 153.7 197.1
-------------------------- ----------------------------- ------------------------ -------------------------
Broker
commission
expenses 5.5 22.0 62.5 79.1
General and
administrative
expenses 10.2 43.3 121.5 158.3
Interest
expense 1.3 3.4 10.5 14.3
-------------------------- ----------------------------- ------------------------ -------------------------
Total expenses 17.0 68.7 194.5 251.7
-------------------------- ----------------------------- ------------------------ -------------------------
GAAP pre-tax
income
(loss) (2.7) (12.7) (40.8) (54.6)
Income tax
(expense)
benefit -- .7 4.6 7.2
-------------------------- ----------------------------- ------------------------ -------------------------
GAAP net
income
(loss) (2.7) (12.0) (36.2) (47.4)
Exclude:
Net (income)
loss,
GrowthCo 1.2 5.6 23.8 32.5
-------------------------- ----------------------------- ------------------------ -------------------------
ScaleCo net
income
(loss) (1.5) (6.4) (12.4) (14.9)
Add back:
Interest
expense 1.3 3.4 10.5 14.3
Income tax
expense
(benefit) -- (.7) (4.6) (7.2)
Depreciation .1 .2 .4 .5
Amortization of
other
intangible
assets -- 6.4 20.2 28.0
-------------------------- ----------------------------- ------------------------ -------------------------
ScaleCo EBITDA (.1) 2.9 14.1 20.7
Exclude:
Non-cash
equity-based
compensation
expense .8 1.6 6.3 7.7
Restructuring
expenses -- .1 .9 .9
Transaction
expenses -- -- -- .5
Software
impairment -- .1 .1 .1
Legal
settlement
expenses -- -- .1 .1
-------------------------- ----------------------------- ------------------------ -------------------------
ScaleCo
adjusted
EBITDA $ .7 $ 4.7 $ 21.5 $ 30.0
========================== ============================= ======================== =========================
WHITE MOUNTAINS INSURANCE GROUP, LTD.
SELECTED FINANCIAL DATA (CONTINUED)
(millions)
(Unaudited)
WTM Partners Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Twelve Months Ended
(1) September 30, 2025 September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2026
--------------- -------------------------- -------------------------- ------------------------ ----------------------- --------------------------
Product and
service
revenues $ 54.0 $ 106.8 $ 96.8 $ 243.3 $ 290.5
-------------------------- -------------------------- ------------------------ ----------------------- --------------------------
Total revenues 54.0 106.8 96.8 243.3 290.5
Cost of sales 47.1 84.1 82.3 192.8 231.6
General and
administrative
expenses 7.8 20.1 17.2 45.4 53.1
Interest expense .3 1.2 .6 2.1 2.4
-------------------------- -------------------------- ------------------------ ----------------------- --------------------------
Total expenses 55.2 105.4 100.1 240.3 287.1
-------------------------- -------------------------- ------------------------ ----------------------- --------------------------
GAAP pre-tax
income (loss) (1.2) 1.4 (3.3) 3.0 3.4
Income tax
(expense)
benefit -- (.6) .2 (1.3) (1.6)
-------------------------- -------------------------- ------------------------ ----------------------- --------------------------
GAAP net income
(loss) (1.2) .8 (3.1) 1.7 1.8
Add back:
Interest
expense .3 1.2 .6 2.1 2.4
Income tax
expense
(benefit) -- .6 (.2) 1.3 1.6
Depreciation .3 .5 .6 1.3 1.6
Amortization of
other
intangible
assets 2.5 5.1 2.5 7.6 8.8
-------------------------- -------------------------- ------------------------ ----------------------- --------------------------
EBITDA 1.9 8.2 .4 14.0 16.2
Exclude:
Transaction
expenses .3 .4 3.3 5.0 5.1
Restructuring
and
integration
expenses -- .2 -- .3 .3
-------------------------- -------------------------- ------------------------ ----------------------- --------------------------
Adjusted EBITDA $ 2.2 $ 8.8 $ 3.7 $ 19.3 $ 21.6
========================== ========================== ======================== ======================= ==========================
(1) Includes results for periods subsequent to the acquisitions of Enterprise
Solutions on April 1, 2025, Basesix on April 1, 2026 and Hawkeye Electric
on May 1, 2026.
Regulation G
This earnings release includes non-GAAP financial measures that have been reconciled from their most comparable GAAP financial measures.
-- Ark's tangible book value and growth in tangible book value are non-GAAP
financial measures.
Tangible book value is a non-GAAP financial measure derived by adjusting GAAP book value to exclude (i) goodwill and other intangible assets, (ii) the deferred tax liability on other intangible assets and (iii) the contingent consideration liability. The contingent consideration liability represents the estimated fair value of the additional shares that could be earned by management rollover shareholders if and to the extent that White Mountains achieves certain multiple of invested capital return thresholds. If earned, these additional shares would result in a reallocation of economics among Ark's shareholders, which is reflected in the fair value of the contingent consideration liability recorded by White Mountains, but would have no impact on Ark's stand-alone book value or tangible book value.
Growth in tangible book value equals the change in tangible book value plus dividends for the period divided by beginning tangible book value.
White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Ark's enterprise value.
The following table presents the reconciliation of Ark's GAAP book value to tangible book value.
September 30, June 30, December 31,
$ in millions 2026 2026 2025
---------------- ------------------- ------------------- -----------------
Ark's GAAP book
value $ 1,673.2 $ 1,615.0 $ 1,593.9
Less: goodwill
and other
intangible
assets, net
(1) (248.6) (248.6) (248.6)
Plus:
contingent
consideration 400.0 370.0 328.3
------------------- ------------------- -----------------
Ark's tangible
book value $ 1,824.6 $ 1,736.4 $ 1,673.6
=================== =================== =================
Year-to-date
dividends
declared $ 50.5 $ 50.5 $ 41.5
------------------- ------------------- -----------------
Quarter-to-date
growth in GAAP
book value,
including
dividends: 3.6 % 4.4 % (2.1) %
Quarter-to-date
growth in
tangible book
value, including
dividends: 5.1 % 6.1 % 4.0 %
Year-to-date
growth in GAAP
book value,
including
dividends: 8.1 % 4.5 % 13.7 %
Year-to-date
growth in
tangible book
value, including
dividends: 12.0 % 6.8 % 27.6 %
----------------- ------------------- ------------------- -----------------
(1) Amounts are net of deferred tax liabilities related to other intangible
assets of $43.9.
-- Kudu's EBITDA, adjusted EBITDA, annualized adjusted EBITDA, annualized
revenue and cash revenue yield are non-GAAP financial measures.
EBITDA is a non-GAAP financial measure that adds back interest expense on debt, income tax (expense) benefit, depreciation and amortization of other intangible assets to GAAP net income (loss).
Adjusted EBITDA is a non-GAAP financial measure that excludes certain other items in GAAP net income (loss) in addition to those added back to calculate EBITDA. The items relate to (i) net realized and unrealized investment gains (losses) on Kudu's revenue and earnings participation contracts, (ii) non-cash equity-based compensation expense and (iii) transaction expenses. A description of each item follows:
-- Net realized and unrealized investment gains (losses) - Represents
net unrealized investment gains and losses recorded on Kudu's
revenue and earnings participation contracts, which are recorded
at fair value under GAAP, and realized investment gains and losses
from participation contracts sold during the period.
-- Non-cash equity-based compensation expense - Represents non-cash
expenses related to Kudu's management compensation that are
settled with equity units in Kudu.
-- Transaction expenses - Represents costs directly related to Kudu's
mergers and acquisitions activity, such as external lawyer, banker,
consulting and placement agent fees, which are not capitalized and
are expensed under GAAP.
Annualized adjusted EBITDA is a non-GAAP financial measure that (i) annualizes partial year revenues related to Kudu's revenue and earnings participation contracts acquired during the previous 12-month period and (ii) removes partial year revenues related to revenue and earnings participation contracts sold during the previous 12-month period.
Annualized revenue is a non-GAAP financial measure that adds the adjustments for annualized adjusted EBITDA to GAAP net investment income.
Cash revenue yield is a non-GAAP financial measure that is derived using annualized revenue as a percentage of total net capital drawn and invested. The most directly comparable GAAP financial measure is net investment income revenue yield, which is derived using GAAP net investment income as a percentage of total net capital drawn and invested.
White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Kudu's underlying performance. White Mountains also believes that annualized adjusted EBITDA is useful to management and investors in understanding the full earnings profile of Kudu's business as of the end of any 12-month period. See page 18 for the reconciliation of Kudu's GAAP net income (loss) to EBITDA, adjusted EBITDA and annualized adjusted EBITDA, and the reconciliation of Kudu's GAAP net investment income to annualized revenue.
-- Distinguished's ScaleCo net income (loss), ScaleCo EBITDA and ScaleCo
adjusted EBITDA are non-GAAP financial measures.
ScaleCo net income (loss) is a non-GAAP financial measure that excludes the results of the GrowthCo vertical, which is consolidated under GAAP, from Distinguished's consolidated GAAP net income (loss).
ScaleCo EBITDA is a non-GAAP financial measure that adds back interest expense on debt, income tax (expense) benefit, depreciation and amortization of other intangible assets to ScaleCo net income (loss).
ScaleCo adjusted EBITDA is a non-GAAP financial measure that excludes certain other items in GAAP net income (loss) in addition to those items added back to calculate ScaleCo EBITDA. The items relate to (i) non-cash equity-based compensation expense, (ii) restructuring expenses, (iii) transaction expenses, (iv) software impairment and (v) legal settlement expenses. A description of each item follows:
-- Non-cash equity-based compensation expense - Represents non-cash
expenses related to Distinguished's management compensation that
are settled with equity units in Distinguished.
-- Restructuring expenses - Represents costs related to
Distinguished's corporate restructuring and capital planning
activities.
-- Transaction expenses - Represents costs directly related to
transaction activities at Distinguished, which are not capitalized
and are expensed under GAAP.
-- Software impairment - Represents expense related to
Distinguished's write-off of capitalized software that is no
longer in use.
-- Legal settlement expenses - Represents amounts incurred related to
legal settlements.
White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating Distinguished's underlying performance. White Mountains also believes that excluding the results of the GrowthCo vertical, which Distinguished views as an investment in start-up programs, is useful to understanding the underlying performance of Distinguished's established programs. See page 21 for the reconciliation of Distinguished's consolidated GAAP net income (loss) to ScaleCo net income (loss), ScaleCo EBITDA and ScaleCo adjusted EBITDA.
-- WTM Partners's EBITDA and adjusted EBITDA are non-GAAP financial
measures. EBITDA is a non-GAAP financial measure that adds back interest
expense on debt, income tax (expense) benefit, depreciation and
amortization of other intangible assets to GAAP net income (loss).
Adjusted EBITDA is a non-GAAP financial measure that excludes certain
other items in GAAP net income (loss) in addition to those added back to
calculate EBITDA. The items relate to (i) transaction expenses and (ii)
restructuring and integration expenses. A description of each item
follows:
-- Transaction expenses - Represents costs directly related to WTM
Partners's mergers and acquisitions activity, such as external
lawyer, banker, consulting and placement agent fees, which are not
capitalized and are expensed under GAAP.
-- Restructuring and integration expenses - Represents costs related
to WTM Partners's corporate restructuring and mergers and
acquisitions integration activities.
White Mountains believes that these non-GAAP financial measures are useful to management and investors in evaluating WTM Partners's underlying performance. See page 22 for the reconciliation of WTM Partners's GAAP net income (loss) to EBITDA and adjusted EBITDA.
-- Total consolidated portfolio return excluding MediaAlpha and total equity
portfolio return excluding MediaAlpha are non-GAAP financial measures
that remove the net investment income and net realized and unrealized
investment gains (losses) from White Mountains's investment in
MediaAlpha. White Mountains believes these measures to be useful to
management and investors by showing the underlying performance of White
Mountains's investment portfolio and equity portfolio without regard to
White Mountains's investment in MediaAlpha. The following tables present
reconciliations from GAAP to the reported percentages:
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2026 2025 2026 2025
-------------------------- ----------- ------- --------- --------
Total consolidated
portfolio return (0.6) % 2.1 % 3.0 % 6.6 %
Remove MediaAlpha 0.6 (0.1) 0.9 0.2
----------- ------- --------- --------
Total consolidated
portfolio return
excluding MediaAlpha -- % 2.0 % 3.9 % 6.8 %
=========================== =========== ======= ========= ========
Three Months Ended
September 30, 2026
---------------------------------------------------- -------------------
Total equity portfolio return (0.5) %
Remove MediaAlpha 1.3
-------------------
Total equity portfolio return excluding MediaAlpha 0.8 %
===================================================== ===================
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This earnings release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which White Mountains expects or anticipates will or may occur in the future are forward-looking statements. The words "may," "could," "will," "believe, " "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to White Mountains's:
-- change in book value per share or return on equity;
-- business strategy;
-- financial and operating targets or plans;
-- incurred loss and loss adjustment expenses and the adequacy of its loss
and loss adjustment expense reserves and related reinsurance;
-- projections of revenues, income (or loss), earnings (or loss) per share,
EBITDA, adjusted EBITDA, dividends, market share or other financial
forecasts of White Mountains or its businesses;
-- expansion and growth of its business and operations; and
-- future capital expenditures.
These statements are based on certain assumptions and analyses made by White Mountains in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to its expectations and predictions is subject to risks and uncertainties that could cause actual results to differ materially from expectations, including:
-- the risks that are described from time to time in White Mountains's
filings with the Securities and Exchange Commission, including but not
limited to White Mountains's 2025 Annual Report on Form 10-K;
-- claims arising from catastrophic events, such as hurricanes, windstorms,
earthquakes, floods, wildfires, tornadoes, tsunamis, severe weather,
public health crises, terrorist attacks, war and war-like actions,
explosions, infrastructure failures or cyber attacks;
-- recorded loss reserves subsequently proving to have been inadequate;
-- the market value of White Mountains's investment in MediaAlpha;
-- business opportunities (or lack thereof) that may be presented to it and
pursued;
-- actions taken by rating agencies, such as financial strength or credit
ratings downgrades or placing ratings on negative watch;
-- the continued availability of capital and financing;
-- the continued availability of fronting and reinsurance capacity;
-- deterioration of general economic, market or business conditions,
including due to war and war-like actions and outbreaks of contagious
disease and corresponding mitigation efforts;
-- competitive forces, including the conduct of other insurers;
-- changes in domestic or foreign laws or regulations, or their
interpretation, applicable to White Mountains, its competitors or its
customers; and
-- other factors, most of which are beyond White Mountains's control.
Consequently, all of the forward-looking statements made in this earnings release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by White Mountains will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, White Mountains or its business or operations. White Mountains assumes no obligation to publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Rob Seelig
(603) 640-2212
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SOURCE White Mountains Insurance Group, Ltd.
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