Core Viewpoint - White Mountains Insurance Group, Ltd. has initiated a "modified Dutch auction" self-tender offer to repurchase up to $300 million of its common shares, with a purchase price range set between $1,850 and $2,050 per share, expiring on December 19, 2025 [1][2]. Tender Offer Details - The self-tender offer allows shareholders to specify the number of shares and the price within the defined range they wish to tender. The company will determine the lowest purchase price that allows it to buy $300 million worth of shares [2]. - If more than $300 million in shares are tendered, the company may increase the number of shares sought by up to 2% of outstanding shares without extending the offer's expiration [2]. - All shares purchased will be at the same price, regardless of the price at which shareholders tendered their shares [2]. Share Purchase Potential - If the tender offer is fully subscribed, at the maximum price of $2,050, the company could buy approximately 146,341 shares, representing about 5.8% of outstanding shares. At the minimum price of $1,850, it could purchase around 162,162 shares, or about 6.4% of outstanding shares [3]. Conditions and Process - The tender offer is not contingent on financing or a minimum number of shares being tendered, but it will be subject to certain conditions outlined in the offer to purchase [4]. - Shareholders will receive detailed instructions and terms of the tender offer shortly after its commencement [4]. Information and Management - D.F. King & Co., Inc. will act as the information agent for the tender offer, while BofA Securities, Inc. and Barclays Capital Inc. will serve as dealer managers [6].

Financial Performance - White Mountains reported a book value per share of $1,851 as of September 30, 2025, reflecting a 3% increase for Q3 2025 and a 6% increase for the first nine months of 2025[237]. - Comprehensive income attributable to common shareholders was $114 million for Q3 2025, down from $180 million in Q3 2024, and $272 million for the first nine months of 2025, compared to $361 million in the same period of 2024[239]. - The net income attributable to White Mountains's common shareholders for the three months ended September 30, 2025, was $113.8 million, down from $179.0 million in 2024, indicating a decrease of 36.4%[260]. - The comprehensive income attributable to White Mountains's common shareholders for the three months ended September 30, 2025, was $113.5 million, down from $179.8 million in 2024, indicating a decrease of 36.8%[260]. - Total revenues for the three months ended September 30, 2025, were $864.2 million, a slight increase from $839.1 million in the same period of 2024, representing a growth of 3.8%[260]. - The total expenses for the three months ended September 30, 2025, were $685.4 million, an increase from $599.6 million in the same period of 2024, representing a rise of 14.3%[260]. - The total consolidated portfolio return on invested assets was 2.1% in Q3 2025, down from 4.6% in Q3 2024, driven by lower unrealized investment gains from MediaAlpha[255]. - The total consolidated portfolio return on invested assets for the first nine months of 2025 was 6.6%, compared to 9.4% in the same period of 2024[256]. Segment Performance - The Ark/WM Outrigger segment's combined ratio improved to 73% in Q3 2025 from 77% in Q3 2024, with gross written premiums of $366 million in Q3 2025 compared to $374 million in Q3 2024[244]. - Ark reported gross written premiums of $366 million and $2,289 million for Q3 and the first nine months of 2025, respectively, compared to $374 million and $1,943 million in the same periods of 2024[246]. - Pre-tax income for the P&C Insurance and Reinsurance segment was $125.9 million for the three months ended September 30, 2025, compared to $140.8 million in 2024, reflecting a decrease of 10.0%[260]. - The total net written premiums for the Ark/WM Outrigger segment were $287.0 million for the three months ended September 30, 2025, compared to $240.0 million in the previous year, reflecting a growth of 19.6%[265]. - Pre-tax income for the Ark/WM Outrigger segment increased to $270 million in the first nine months of 2025, up from $242 million in the same period of 2024[278]. - The combined ratio for the Ark/WM Outrigger segment improved to 83% in the first nine months of 2025 from 84% in the same period of 2024[278]. Revenue and Investment Highlights - Kudu reported total revenues of $54 million and $139 million for Q3 and the first nine months of 2025, respectively, compared to $47 million and $128 million in the same periods of 2024[250]. - Bamboo's commission and fee revenues increased to $64 million and $167 million for Q3 and the first nine months of 2025, respectively, compared to $43 million and $97 million in the same periods of 2024[252]. - The total goodwill and other intangible assets increased to $1,392.9 million as of September 30, 2025, compared to $805.4 million as of June 30, 2025, marking a significant rise of 73.0%[259]. - The total par value of policies assumed reached $2,208 million in the first nine months of 2025, compared to $2,012 million in 2024, indicating an increase of 9.7%[303]. - The total gross pricing for the first nine months of 2025 was 189 basis points, up from 171 basis points in 2024, reflecting a pricing increase of 10.5%[302]. Cash and Debt Management - White Mountains's common shareholders' equity rose to $4,767.6 million as of September 30, 2025, up from $4,644.5 million as of June 30, 2025, indicating an increase of 2.6%[258]. - Cash reserves as of September 30, 2025, were $289.9 million, a significant increase from $141.2 million as of December 31, 2024[289][290]. - White Mountains' total debt increased to $870.4 million as of September 30, 2025, up from $562.5 million as of December 31, 2024, resulting in a total debt to total capital ratio of 13.2%[379]. - Net cash provided from operations was $497 million for the nine months ended September 30, 2025, compared to $523 million for the same period in 2024[384]. Acquisitions and Strategic Transactions - The Bamboo Sale Transaction values Bamboo at an enterprise value of $1.75 billion, with expected net cash proceeds of approximately $840 million for White Mountains[240]. - White Mountains closed its acquisition of Distinguished on September 2, 2025, paying $224 million in cash consideration[388]. - Bamboo, acquired on January 2, 2024, is a tech-enabled insurance distribution platform focusing on homeowners' insurance in California, enhancing White Mountains's market presence[317]. Market and Economic Conditions - The company emphasizes the importance of market conditions and potential catastrophic events that could impact financial forecasts and operational performance[409]. - The adequacy of loss reserves and related reinsurance is critical for maintaining financial stability and meeting operational targets[409]. - Forward-looking statements indicate expectations for future developments, but actual results may differ due to various risks and uncertainties[406].

Financial Performance - Book value per share increased by 3% to $1,851 in Q3 2025, and by 6% for the first nine months of 2025[2]. - Total revenues for the three months ended September 30, 2025, were $864.2 million, up from $839.1 million in the same period of 2024, representing a growth of 3.9%[41]. - For the three months ended September 30, 2025, net income attributable to White Mountains's common shareholders was $113.8 million, a decrease of 36.5% from $179.0 million in the same period of 2024[44]. - The company reported total revenues of $864.2 million for the three months ended September 30, 2025, compared to $1,000.0 million in the same period of 2024, reflecting a decrease of 13.6%[49]. - For the nine months ended September 30, 2025, total revenues reached $2,131.2 million, driven by earned insurance premiums of $1,328.0 million[52]. - Pre-tax income for the nine-month period was $427.7 million, indicating strong financial performance[52]. - The company reported net investment income of $180.2 million for the nine months, alongside net realized and unrealized investment gains of $249.6 million[52]. Premiums and Underwriting - Ark reported gross written premiums of $366 million in Q3 2025, with a combined ratio of 76%, an improvement from 79% in Q3 2024[4][6]. - Bamboo's managed premiums reached $221 million in Q3 2025, up 49% from $148 million in Q3 2024, driven by growth in renewal and new business[18]. - Total gross written premiums for HG Global amounted to $41.8 million for the nine months ended September 30, 2025, up from $34.5 million in 2024, marking a growth of 21.1%[59]. - Gross written premiums for Ark/WM Outrigger reached $2,289.2 million for the nine months ended September 30, 2025, an increase from $1,942.7 million in the same period of 2024, representing a growth of 17.8%[57]. - The combined ratio for Ark/WM Outrigger improved to 82.9% for the nine months ended September 30, 2025, down from 83.5% in the same period of 2024, indicating better underwriting performance[57]. Expenses and Liabilities - Total expenses for the three months ended September 30, 2025, were $685.4 million, an increase of 14.3% compared to $599.6 million in the same period of 2024[43]. - General and administrative expenses rose to $72 million in Q3 2025 from $33 million in Q3 2024, primarily due to deal-related costs[28]. - Total liabilities increased to $6,628.5 million as of September 30, 2025, compared to $4,794.6 million on December 31, 2024, reflecting a growth of 38.3%[37]. - Total expenses for Bamboo for the nine months ended September 30, 2025, were $157.9 million, up from $106.0 million in 2024, an increase of 48.8%[65]. Investment Performance - The total consolidated portfolio return was 2.1% in Q3 2025, down from 4.6% in Q3 2024[30]. - Kudu's return on equity improved to 9% as of September 30, 2025, up from 8% as of June 30, 2025, due to higher investment gains[15]. - Total consolidated portfolio return excluding MediaAlpha for Q3 2025 was 2.0%, compared to 3.3% in Q3 2024[79]. - The return excluding MediaAlpha for the nine months ended September 30, 2025, was 6.8%, slightly up from 6.9% in 2024[79]. Strategic Developments - White Mountains expects an increase of $325 per share in book value upon closing the sale of approximately 77% of its equity interest in Bamboo[3]. - White Mountains acquired a controlling interest in Distinguished Programs for $224 million in cash, enhancing its portfolio in specialty property and casualty insurance[21]. - The company continues to focus on market expansion and new product development as part of its growth strategy[50]. Other Financial Metrics - Cash and cash equivalents rose to $289.9 million in Q3 2025 from $148.8 million in Q3 2024[35]. - Total equity rose to $5,584.7 million as of September 30, 2025, compared to $5,131.0 million at the end of 2024, an increase of 8.8%[37]. - Basic earnings per share for the three months ended September 30, 2025, were $44.18, down from $69.68 in the same period of 2024, a decline of 36.6%[46]. Forward-Looking Statements and Risks - Forward-looking statements include expectations regarding business strategy and financial targets, subject to various risks and uncertainties[80]. - Risks include potential inadequacies in loss reserves and the impact of catastrophic events on financial performance[83]. - The company does not guarantee that actual results will align with its forward-looking statements due to inherent uncertainties[82].

Core Insights - The London Company Small Cap Strategy reported a 1.9% appreciation in its small-cap portfolio for Q3 2025, underperforming the Russell 2000 Index which gained 12.4% [1] - The investor letter highlighted White Mountains Insurance Group, Ltd. (NYSE:WTM) as a key stock, noting its recent performance and market capitalization [2] Company Performance - White Mountains Insurance Group, Ltd. (NYSE:WTM) experienced a one-month return of -0.28% and a 52-week gain of 6.82%, with a closing stock price of $1,899.87 and a market cap of $4.892 billion as of November 3, 2025 [2] - The company faced challenges due to industry headwinds and investment volatility, impacting its stock performance [3] Investment Sentiment - Despite the challenges, The London Company expressed confidence in White Mountains Insurance Group's potential for growth in book value per share through prudent capital allocation [3] - The stock is not among the top 30 most popular stocks among hedge funds, with 20 hedge fund portfolios holding it at the end of Q2 2025, an increase from 19 in the previous quarter [4]

Core Viewpoint - White Mountains Insurance Group has agreed to sell a controlling stake in Bamboo, an insurance distribution platform, to CVC Capital Partners for $1.75 billion, focusing on the residential property market in California and Texas [1][4]. Group 1: Transaction Details - The deal is valued at $1.75 billion (€1.5 billion) and is expected to close by the end of the fourth quarter of 2025, pending regulatory approvals [1][4]. - White Mountains will retain approximately a 15% equity interest in Bamboo, which is valued at $250 million based on the sale price [4]. - The transaction is not contingent upon financing [5]. Group 2: Financial Implications - The sale is projected to yield White Mountains a gain of around $310 per share in book value and net cash proceeds of approximately $840 million [3]. - The transaction is described as beneficial for both White Mountains shareholders and Bamboo management and employees [4]. Group 3: Bamboo's Operations - Bamboo operates as a data-driven platform with a focus on the residential property market and encompasses a managing general agent business that includes product development, underwriting, marketing, policy issuance, and claims management [2]. - Additionally, Bamboo runs a retail agency providing third-party ancillary products and a captive reinsurer to share underwriting risk with its reinsurance partners [2].

Group 1 - U.S. stocks experienced an upward trend, with the Dow Jones index increasing by over 350 points on Friday [1] - White Mountains Insurance Group announced plans to sell a controlling interest in its technology-driven homeowners' insurance distribution platform, Bamboo, to CVC Capital Partners, leading to a significant rise in its stock price [1][2] - The deal values Bamboo at $1.75 billion, and the company specializes in data-enabled underwriting and distribution for the residential property market in California and Texas [2] Group 2 - White Mountains Insurance Group shares surged by 9.2%, reaching $1,817.83 on Friday following the announcement of the Bamboo deal [2] - Other notable stock gains included Anbio Biotechnology, which rose by 69.6% to $43.07, and Lithium Americas Corp., which increased by 29.1% to $8.85 [4] - USA Rare Earth, Inc. shares climbed 21.4% to $27.56 amid reports of discussions with the White House [4]

Core Viewpoint - White Mountains Insurance Group has signed a definitive agreement to sell a controlling interest in Bamboo, a data-enabled insurance distribution platform, to CVC Capital Partners, valuing Bamboo at $1.75 billion [1]. Group 1: Transaction Details - The transaction is expected to generate a gain of approximately $310 million to White Mountains' book value per share and net cash proceeds of around $840 million [1]. - White Mountains will retain a 15% fully-diluted equity stake in Bamboo post-closing, valued at $250 million based on the transaction [1]. - The transaction is anticipated to close by the end of the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions [4]. Group 2: Company Insights - Bamboo is described as a capital-light, tech- and data-enabled insurance distribution platform focused on homeowners' insurance in California and Texas, operating primarily through a full-service MGA business [6]. - Bamboo's business model includes managing the placement process for fronting and reinsurance partners, earning commissions based on volume and profitability [6]. - CVC views Bamboo as an optimal fit for its US portfolio due to its high growth, recurring revenue, and value to partners [4]. Group 3: Leadership Perspectives - White Mountains' CEO highlighted the rapid growth of Bamboo as a testament to its value and innovation in the homeowners' insurance market [2]. - Bamboo's CEO expressed gratitude for White Mountains' support and emphasized the milestone as a result of the team's dedication and hard work [4]. - White Mountains' M&A head noted the success of Bamboo during their ownership and the importance of partnering with talented management teams in the insurance sector [3].

Core Viewpoint - White Mountains Insurance Group has announced the appointment of Liam Caffrey as the new CEO, effective January 1, 2026, succeeding Manning Rountree, who will retire on December 31, 2025 [1][2]. Leadership Transition - Liam Caffrey, currently the President and CFO, will take over as CEO, while Manning Rountree will transition to a Senior Advisor role until January 1, 2028 [2][3]. - Caffrey joined White Mountains as CFO in 2022 and has prior experience at Aon PLC and McKinsey & Company [2]. - Rountree expressed confidence in Caffrey's leadership capabilities and noted that the succession was planned collaboratively over the past four years [4]. Board and Management Changes - Weston Hicks, Chairman of White Mountains, praised Caffrey's extensive insurance experience and acknowledged Rountree's 21 years of service as CEO [4]. - Michael Papamichael will succeed Caffrey as CFO on January 1, 2026, and has a background with Hamilton Insurance Group and Sirius Group [4]. - Giles Harrison will become President of White Mountains on January 1, 2026, having joined the company in June 2024 from Zurich Insurance Group [5].

Core Insights - White Mountains Insurance Group reported Q2 2025 earnings per share (GAAP) of $47.75, missing the analyst estimate of $57.00 by 16.2% [1] - Total revenue (GAAP) reached $689.2 million, a significant increase of 74.4% compared to Q2 2024 [1][2] - Book value per share rose to $1,803.57, up 4.7% from $1,722.02 a year earlier [1][2] Financial Metrics - Diluted EPS (GAAP) for Q2 2025 was $47.75, compared to $(21.24) in Q2 2024 [2] - Revenue (GAAP) was $689.2 million, up from $395.4 million in Q2 2024, reflecting a 74.4% year-over-year increase [2] - Book Value per Share increased to $1,803.57 from $1,722.02, marking a 4.7% rise [2] - Ark/WM Outrigger Combined Ratio improved to 84.4% from 87.0%, a decrease of 2.6 percentage points [2] - Gross Written Premiums for Ark/WM Outrigger were $815.2 million, up 17.0% from $697.0 million in Q2 2024 [2] - MGA Adjusted EBITDA for Bamboo reached $25.6 million, a 122.6% increase from $11.5 million in Q2 2024 [2] Company Overview - White Mountains Insurance Group operates as a diversified insurance holding company, focusing on property & casualty insurance, reinsurance, and specialty distribution [3] - Key subsidiaries include Ark, WM Outrigger, Bamboo, HG Global, and Kudu, each serving distinct roles in the insurance and investment sectors [3] Strategic Focus - Current priorities include disciplined underwriting, risk management, maximizing investment returns, and expanding through strategic acquisitions [4] - Growth in core businesses like Ark and Bamboo is emphasized, alongside maintaining a strong capital base [4] Segment Performance - Ark experienced significant premium growth with gross written premiums rising 17% year-over-year to $815 million, and the combined ratio improved to 85% [5] - WM Outrigger faced volatility due to catastrophe losses, impacting pre-tax income [5] - Bamboo reported record commission and fee revenue of $59 million, with managed premiums of $191 million, despite facing claims from California wildfires [5] - Kudu's revenue dropped to $20 million due to lower investment gains, while HG Global saw improvements in gross written premium and pre-tax income [6] Investment Performance - The consolidated portfolio returned 2.7%, underperforming compared to the S&P 500's 10.9% return [7] - MediaAlpha contributed positively to investment income as its share price increased [7] - Ark reported net realized and unrealized investment gains of $51 million, up from $20 million in Q2 2024 [7] Future Outlook - No specific financial outlook or guidance was provided for the upcoming quarter or fiscal 2025 [8] - Management highlighted opportunities for growth, particularly at Bamboo and Ark, with approximately $300 million in undeployed capital available for future investments [8]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's discussion and analysis for White Mountains Insurance Group, Ltd. for the period ended June 30, 2025 [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements of White Mountains Insurance Group, Ltd. for the period ended June 30, 2025, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with detailed notes explaining the basis of presentation, significant transactions, investment activities, debt, income taxes, and segment information [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a significant increase in total assets and liabilities from December 31, 2024, to June 30, 2025, primarily driven by growth in P&C Insurance and Reinsurance assets and liabilities, as well as increases in P&C Insurance Distribution and Other Operations assets | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :--------------------------------- | :----------------------- | :--------------------------- | :---------------- | :------- | | **Assets:** | | | | | | Total assets | $11,822.9 | $9,925.6 | $1,897.3 | 19.1% | | P&C Insurance and Reinsurance assets | $6,905.5 | $5,299.0 | $1,606.5 | 30.3% | | Financial Guarantee assets | $1,244.5 | $1,179.4 | $65.1 | 5.5% | | Asset Management assets | $1,230.7 | $1,108.4 | $122.3 | 11.0% | | P&C Insurance Distribution assets | $619.5 | $584.6 | $34.9 | 6.0% | | Other Operations assets | $1,822.7 | $1,754.2 | $68.5 | 3.9% | | **Liabilities:** | | | | | | Total liabilities | $6,482.7 | $4,794.6 | $1,688.1 | 35.2% | | P&C Insurance and Reinsurance liabilities | $5,173.5 | $3,664.8 | $1,508.7 | 41.2% | | Financial Guarantee liabilities | $488.3 | $464.1 | $24.2 | 5.2% | | Asset Management liabilities | $329.2 | $316.7 | $12.5 | 3.9% | | P&C Insurance Distribution liabilities | $281.2 | $167.7 | $113.5 | 67.7% | | Other Operations liabilities | $210.5 | $181.3 | $29.2 | 16.1% | | **Equity:** | | | | | | Total equity | $5,340.2 | $5,131.0 | $209.2 | 4.1% | | White Mountains's common shareholders' equity | $4,644.5 | $4,483.7 | $160.8 | 3.6% | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues significantly increased for both the three and six months ended June 30, 2025, compared to the same periods in 2024, primarily driven by strong performance in P&C Insurance and Reinsurance and a rebound in Other Operations, leading to a substantial improvement in pre-tax income and net income attributable to common shareholders | Metric (Millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Total revenues | $689.2 | $395.4 | 74.3% | $1,267.0 | $1,042.7 | 21.5% | | P&C Insurance and Reinsurance revenues | $447.9 | $363.3 | 23.3% | $861.1 | $700.1 | 23.0% | | Financial Guarantee revenues | $24.2 | $15.7 | 54.1% | $56.3 | $23.6 | 138.6% | | Asset Management revenues | $20.4 | $70.2 | -70.9% | $84.2 | $80.9 | 4.1% | | P&C Insurance Distribution revenues | $62.5 | $42.0 | 48.8% | $123.9 | $73.1 | 69.5% | | Other Operations revenues | $134.2 | $(95.8) | N/A | $141.5 | $165.0 | -14.3% | | Total expenses | $512.7 | $430.1 | 19.2% | $1,018.1 | $844.8 | 20.5% | | Pre-tax income (loss) | $176.5 | $(34.7) | N/A | $248.9 | $197.9 | 25.8% | | Net income (loss) attributable to White Mountains's common shareholders | $122.9 | $(54.6) | N/A | $156.8 | $181.8 | -13.7% | [Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Comprehensive income attributable to White Mountains's common shareholders saw a significant positive shift in Q2 2025 compared to a loss in Q2 2024, while the six-month period showed a slight decrease, and basic and diluted EPS also improved substantially in Q2 2025 | Metric (Millions, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Comprehensive income (loss) attributable to White Mountains's common shareholders | $123.7 | $(54.6) | N/A | $158.8 | $181.6 | -12.5% | | Basic earnings (loss) per share | $47.75 | $(21.24) | N/A | $60.99 | $70.93 | -14.0% | | Diluted earnings (loss) per share | $47.75 | $(21.24) | N/A | $60.99 | $70.93 | -14.0% | [Consolidated Statements of Changes in Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased by $209.2 million from January 1, 2025, to June 30, 2025, primarily due to net income and other comprehensive income, partially offset by dividends and net contributions/distributions from noncontrolling interests, with the acquisition of noncontrolling interests also contributing to the increase | Metric (Millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Total Equity (Beginning Balance) | $5,131.0 | $4,561.6 | | Net income (loss) | $226.4 | $180.6 | | Other comprehensive income (loss), net of tax | $3.1 | $(0.2) | | Dividends declared on common shares | $(2.6) | $(2.5) | | Dividends to noncontrolling interests | $(19.1) | $(9.3) | | Issuances of common shares | $2.6 | $2.9 | | Repurchases and retirements of common shares | $(9.9) | $(8.1) | | Amortization of restricted share awards | $8.7 | $7.5 | | Recognition of equity-based compensation expense of subsidiaries | $4.6 | $2.1 | | Net contributions (distributions) and dilution from other noncontrolling interests | $(35.3) | $0.5 | | Acquisition of noncontrolling interests | $30.7 | $111.1 | | Total Equity (Ending Balance) | $5,340.2 | $4,872.2 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided from operations decreased significantly in the first six months of 2025 compared to 2024, primarily due to changes in reinsurance recoverables and insurance premiums receivable, while investing activities shifted from providing cash to using cash, and financing activities provided cash in 2025, contrasting with cash usage in 2024 | Metric (Millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Net cash provided from (used for) operations | $137.3 | $253.3 | | Net cash provided from (used for) investing activities | $(156.5) | $(94.2) | | Net cash provided from (used for) financing activities | $90.6 | $(26.3) | | Net change in cash during the period | $71.4 | $132.8 | | Cash balance at end of period | $337.8 | $255.2 | [Note 1. Basis of Presentation and Significant Accounting Policies](index=11&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) White Mountains Insurance Group, Ltd. operates through four reportable segments: Ark/WM Outrigger (specialty P&C insurance/reinsurance), HG Global (financial guarantee), Kudu (asset management), and Bamboo (P&C insurance distribution), with remaining operations in 'Other Operations', and its financial statements are prepared under GAAP, with certain prior period reclassifications - White Mountains operates through four reportable segments: Ark/WM Outrigger, HG Global, Kudu, and Bamboo, with other businesses grouped under 'Other Operations'[32](index=32&type=chunk) - Ark/WM Outrigger focuses on specialty property and casualty insurance and reinsurance, including Lloyd's Syndicates and a collateralized reinsurance vehicle (WM Outrigger Re)[32](index=32&type=chunk) - HG Global provides financial guarantee services and, prior to July 1, 2024, consolidated Build America Mutual Assurance Company (BAM)[33](index=33&type=chunk)[35](index=35&type=chunk) - Kudu offers capital solutions for boutique asset and wealth managers through noncontrolling equity interests (Participation Contracts)[35](index=35&type=chunk) - Bamboo is a tech- and data-enabled P&C insurance distribution platform, primarily a managing general agent (MGA) for homeowners' insurance in California, and includes a captive reinsurer[36](index=36&type=chunk) - Other Operations include the parent company, investment management, interests in MediaAlpha, PassportCard/DavidShield, Elementum, and Enterprise Solutions (acquired April 1, 2025)[37](index=37&type=chunk) [Note 2. Significant Transactions](index=13&type=section&id=Note%202.%20Significant%20Transactions) White Mountains completed several significant transactions, including the acquisition of a controlling interest in Bamboo in January 2024 for $296.7 million, the deconsolidation of BAM in July 2024, and the acquisition of a majority interest in Enterprise Solutions in April 2025 for $58.3 million, while WM Outrigger Re also renewed its reinsurance agreements for the 2024 and 2025 underwriting years with varying capital commitments - White Mountains acquired a controlling interest in Bamboo on January 2, 2024, investing **$296.7 million** of equity, including **$36.0 million** to retire legacy debt and **$20.0 million** of primary capital, resulting in the recognition of **$371.4 million** in goodwill and other intangible assets[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - Effective July 1, 2024, White Mountains deconsolidated Build America Mutual Assurance Company (BAM) as it no longer held primary beneficiary status, with BAM Surplus Notes subsequently accounted for at fair value, resulting in an unrealized loss of **$114.5 million** on deconsolidation[44](index=44&type=chunk)[45](index=45&type=chunk) - WM Outrigger Re renewed its collateralized reinsurance agreements for the 2024 and 2025 underwriting years, with White Mountains's capital commitment at **$130.0 million** for 2024 and **$150.0 million** for 2025[47](index=47&type=chunk)[48](index=48&type=chunk) - On April 1, 2025, White Mountains acquired a majority interest in Enterprise Solutions for **$58.3 million** cash consideration, recognizing **$95.4 million** in goodwill and other intangible assets[51](index=51&type=chunk)[52](index=52&type=chunk) [Note 3. Investment Securities](index=15&type=section&id=Note%203.%20Investment%20Securities) White Mountains's investment portfolio, primarily fixed maturity and short-term investments, common equity securities, and other long-term investments, generated increased net investment income and significant net realized and unrealized investment gains in the first six months of 2025, with the portfolio's fair value measurements categorized into Level 1, 2, and 3, and Level 3 investments, particularly Kudu's Participation Contracts, showing substantial carrying values and growth Net Investment Income (Pre-tax) | Metric (Millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :------------------------ | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Fixed maturity investments | $26.8 | $23.2 | 15.5% | $53.8 | $43.9 | 22.6% | | Short-term investments | $12.0 | $16.0 | -25.0% | $22.6 | $32.0 | -29.4% | | Other long-term investments | $23.1 | $18.4 | 25.5% | $45.3 | $38.9 | 16.5% | | Total net investment income | $61.4 | $57.4 | 7.0% | $121.0 | $114.4 | 5.8% | Net Realized and Unrealized Investment Gains (Losses) | Metric (Millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Net realized investment gains (losses) | $37.8 | $120.9 | -68.8% | $78.1 | $115.2 | -32.2% | | Net unrealized investment gains (losses) | $79.5 | $(181.1) | N/A | $89.2 | $51.4 | 73.5% | | Total net realized and unrealized investment gains (losses) | $117.3 | $(60.2) | N/A | $167.3 | $166.6 | 0.4% | Total Investments by Fair Value Level (Millions) | Investment Type | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Total fixed maturity investments | $2,635.9 | $2,511.6 | | Total short-term investments | $1,225.1 | $964.2 | | Total common equity securities | $435.0 | $650.0 | | Investment in MediaAlpha | $195.5 | $201.6 | | Total other long-term investments | $2,307.1 | $2,150.2 | | **Total investments** | **$6,798.6** | **$6,477.6** | | Level 1 | $1,870.8 | $1,838.6 | | Level 2 | $2,652.7 | $2,512.3 | | Level 3 | $1,392.8 | $1,262.7 | | NAV (practical expedient) | $882.3 | $864.0 | - Kudu's Participation Contracts, a significant component of other long-term investments, had a fair value of **$1,121.1 million** as of June 30, 2025, up from **$1,008.4 million** at December 31, 2024, with a weighted average discount rate of **19%** and terminal cash flow exit multiple of **14x**[74](index=74&type=chunk)[87](index=87&type=chunk) [Note 4. Goodwill and Other Intangible Assets](index=27&type=section&id=Note%204.%20Goodwill%20and%20Other%20Intangible%20Assets) Total goodwill and other intangible assets increased to $805.4 million as of June 30, 2025, from $720.3 million at December 31, 2024, primarily due to the acquisition of Enterprise Solutions, which added $95.4 million in goodwill, while amortization of other intangible assets totaled $10.3 million for the six months ended June 30, 2025 Goodwill and Other Intangible Assets (Millions) | Asset Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total goodwill | $534.6 | $439.2 | | Total other intangible assets | $270.8 | $281.1 | | **Total goodwill and other intangible assets** | **$805.4** | **$720.3** | - The increase in goodwill for the six months ended June 30, 2025, was primarily due to the **$95.4 million** from the Enterprise Solutions Transaction, which was provisionally recorded entirely as goodwill[90](index=90&type=chunk) - Amortization of other intangible assets for the six months ended June 30, 2025, was **$10.3 million**[90](index=90&type=chunk) [Note 5. Loss and Loss Adjustment Expense Reserves](index=29&type=section&id=Note%205.%20Loss%20and%20Loss%20Adjustment%20Expense%20Reserves) The Ark/WM Outrigger segment reported net favorable prior year loss reserve development of $69.9 million for the six months ended June 30, 2025, driven by property, marine & energy, and specialty lines, partially offset by aviation losses, while P&C Insurance Distribution and Other Operations also recorded loss and LAE reserves and incurred expenses Ark/WM Outrigger Loss and LAE Reserve Activity (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Gross beginning balance | $2,253.9 | $1,744.5 | $2,127.5 | $1,605.1 | | Net incurred loss and LAE | $164.0 | $175.7 | $397.5 | $355.7 | | Net paid loss and LAE | $(133.5) | $(83.1) | $(292.5) | $(183.8) | | Net favorable prior year loss reserve development | $(17.1) | $(6.9) | $(69.9) | $(7.2) | | Gross ending balance | $2,288.5 | $1,890.1 | $2,288.5 | $1,890.1 | - HG Re had no outstanding loss and LAE reserves or incurred loss and LAE for the periods presented[93](index=93&type=chunk) - The Bamboo Captive recorded **$28.8 million** in loss and LAE reserves as of June 30, 2025, and incurred **$12.6 million** for the six months ended June 30, 2025[94](index=94&type=chunk) - The Bamboo CRV recorded **$14.2 million** in loss and LAE reserves as of June 30, 2025, and incurred **$18.2 million** for the six months ended June 30, 2025[95](index=95&type=chunk) [Note 6. Third-Party Reinsurance](index=30&type=section&id=Note%206.%20Third-Party%20Reinsurance) The Ark/WM Outrigger segment experienced increases in gross and net written premiums for the three and six months ended June 30, 2025, compared to 2024, while net loss and LAE decreased in Q2 2025 but increased for the six-month period, and reinsurance recoverables significantly increased, with a majority from highly-rated reinsurers Ark/WM Outrigger Premiums and Losses (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :-------------------- | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Gross written premiums | $815.2 | $697.0 | 16.9% | $1,922.8 | $1,569.1 | 22.5% | | Net written premiums | $578.6 | $502.8 | 15.1% | $1,306.3 | $1,100.8 | 18.7% | | Net earned premiums | $364.2 | $318.3 | 14.4% | $722.2 | $621.1 | 16.3% | | Net loss and LAE | $164.0 | $175.7 | -6.8% | $397.5 | $355.7 | 11.7% | Ark/WM Outrigger Reinsurance Recoverables (Millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Reinsurance recoverables on unpaid losses | $468.5 | $434.4 | | Reinsurance recoverables on paid losses | $69.5 | $57.5 | | Ceded unearned premiums | $506.1 | $97.1 | | **Total reinsurance recoverables** | **$1,044.1** | **$589.0** | Ark/WM Outrigger Reinsurance Recoverables by A.M. Best Rating (June 30, 2025) | A.M. Best Rating | Gross (Millions) | Collateral (Millions) | Net (Millions) | % of Total | | :----------------- | :--------------- | :-------------------- | :------------- | :--------- | | A+ or better | $319.1 | $— | $319.1 | 70.6% | | A- to A | $113.0 | $— | $113.0 | 25.0% | | B++ or lower and not rated | $105.9 | $86.1 | $19.8 | 4.4% | | **Total** | **$538.0** | **$86.1** | **$451.9** | **100.0%** | [Note 7. Debt](index=31&type=section&id=Note%207.%20Debt) White Mountains's total debt increased to $694.6 million as of June 30, 2025, from $562.5 million at December 31, 2024, primarily due to the new Bamboo Credit Facility and an increase in Other Operations debt, while Kudu also amended its credit facility to increase capacity and reduce borrowing costs, and all debt instruments were in compliance with covenants Debt Outstanding (Millions) | Debt Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Ark 2021 Subordinated Notes | $158.9 | $154.5 | | HG Global Senior Notes | $147.6 | $147.4 | | Kudu Credit Facility | $246.8 | $238.6 | | Bamboo Credit Facility | $104.6 | $— | | Other Operations debt | $36.7 | $22.0 | | **Total debt** | **$694.6** | **$562.5** | - The Bamboo Credit Facility was established on January 24, 2025, with a **$110 million** term loan and **$10 million** revolving credit, maturing in January 2031[125](index=125&type=chunk) - Kudu amended its Credit Facility on March 18, 2025, reducing the required interest reserve and lowering the minimum debt service coverage ratio to **2.5 times**, which lowered borrowing costs and increased capacity[118](index=118&type=chunk) - The increase in Other Operations debt was primarily driven by the Enterprise Solutions Transaction[128](index=128&type=chunk) - White Mountains was in compliance with all debt covenants as of June 30, 2025[129](index=129&type=chunk) [Note 8. Income Taxes](index=35&type=section&id=Note%208.%20Income%20Taxes) White Mountains's effective tax rate for the three and six months ended June 30, 2025, was 7.3% and 9.0%, respectively, lower than the U.S. statutory rate due to forecasted income in lower-tax jurisdictions, and the company expects to be exempt from Bermuda's 15% corporate income tax until January 1, 2030, and recorded a net deferred tax asset of $73.0 million related to an economic transition adjustment - White Mountains's effective tax rate was **7.3%** for Q2 2025 and **9.0%** for H1 2025, lower than the U.S. statutory rate of **21.0%** due to income in lower-tax jurisdictions[133](index=133&type=chunk) - The company expects to be exempt from Bermuda's **15%** corporate income tax until January 1, 2030, and recognized a net deferred tax asset of **$73.0 million** related to an economic transition adjustment[131](index=131&type=chunk) - Certain subsidiaries are subject to the OECD Pillar Two initiative, with a forecasted top-up tax of **$2.0 million** for the twelve months ended December 31, 2025[132](index=132&type=chunk) [Note 9. Derivatives](index=36&type=section&id=Note%209.%20Derivatives) White Mountains utilizes interest rate cap agreements for its HG Global Senior Notes, Kudu Credit Facility, and Bamboo Credit Facility to limit exposure to interest rate increases, and these derivatives are accounted for at fair value, with changes recognized in interest expense - HG Global has two interest rate cap agreements (2022 and 2024) for its **$150.0 million** Senior Notes, with the 2024 cap effective July 25, 2025, and a maximum interest rate of **10.76%** per annum[139](index=139&type=chunk)[140](index=140&type=chunk) - Kudu entered into an interest rate cap agreement for its **$150.0 million** Credit Facility, effective September 30, 2024, with a maximum interest rate of **8.95%** per annum[144](index=144&type=chunk) - Bamboo entered into an interest rate cap agreement for its **$80.0 million** Credit Facility, effective March 31, 2025, with a maximum interest rate of **10.0%** per annum[147](index=147&type=chunk) - For the six months ended June 30, 2025, White Mountains recognized net unrealized losses of **$1.7 million** for HG Global's caps, **$0.7 million** for Kudu's cap, and **$0.2 million** for Bamboo's cap[143](index=143&type=chunk)[146](index=146&type=chunk)[149](index=149&type=chunk) [Note 10. Municipal Bond Guarantee Reinsurance](index=37&type=section&id=Note%2010.%20Municipal%20Bond%20Guarantee%20Reinsurance) HG Global provides first-loss reinsurance protection to BAM through the FLRT, with obligations secured by Collateral Trusts totaling $984.1 million as of June 30, 2025, and the BAM Surplus Notes, valued at $396.7 million, accrue 10.0% interest, with HG Global receiving a $22.2 million distribution from the Supplemental Trust in H1 2025 - HG Re provides first-loss reinsurance protection of up to **15%-of-par outstanding** for each policy assumed from BAM under the FLRT[152](index=152&type=chunk) - HG Re's obligations are secured by two Collateral Trusts (Supplemental Trust and Regulation 114 Trust), which held total assets of **$984.1 million** as of June 30, 2025[158](index=158&type=chunk)[162](index=162&type=chunk) - The BAM Surplus Notes, held by HG Global, were valued at **$396.7 million** as of June 30, 2025, and accrue interest at **10.0%** effective July 1, 2024[163](index=163&type=chunk)[168](index=168&type=chunk) - For the six months ended June 30, 2025, HG Re received a **$22.2 million** distribution from the Supplemental Trust, including **$15.2 million** in assigned accrued interest on BAM Surplus Notes and **$7.0 million** in cash[160](index=160&type=chunk) HG Global Insured Obligations (Millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Contracts outstanding | 16,449 | 15,884 | | Remaining weighted average contract period (in years) | 11.4 | 11.2 | | Outstanding par value of policies assumed | $19,391.0 | $18,503.3 | | Gross unearned insurance premiums | $307.9 | $297.3 | [Note 11. Earnings Per Share](index=41&type=section&id=Note%2011.%20Earnings%20Per%20Share) Basic and diluted earnings per share for White Mountains's common shareholders significantly improved to $47.75 in Q2 2025 from a loss of $(21.24) in Q2 2024, while for the six-month period, EPS decreased to $60.99 in 2025 from $70.93 in 2024 Earnings Per Share Attributable to White Mountains's Common Shareholders | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss) attributable to White Mountains's common shareholders (Millions) | $122.9 | $(54.6) | $156.8 | $181.8 | | Basic earnings (loss) per share | $47.75 | $(21.24) | $60.99 | $70.93 | | Diluted earnings (loss) per share | $47.75 | $(21.24) | $60.99 | $70.93 | [Note 12. Employee Share-Based Incentive Compensation Plans](index=42&type=section&id=Note%2012.%20Employee%20Share-Based%20Incentive%20Compensation%20Plans) White Mountains's share-based incentive compensation plans, including performance shares and restricted shares, are designed to align employee interests with shareholder value, with performance shares tied to CVPS growth and typically paid in cash, while restricted shares vest over a 34-month service period, and the company granted 10,645 performance shares and restricted shares for the 2025-2027 cycle - Performance shares are conditional grants tied to company-wide performance targets, specifically the growth in compensation value per share (CVPS), and are typically paid in cash[180](index=180&type=chunk)[181](index=181&type=chunk) - Restricted shares are grants of common shares that generally vest at the end of a **34-month** service period[186](index=186&type=chunk) Performance Share Activity (Target Shares Outstanding) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Beginning of period | 32,392 | 34,007 | 34,859 | 37,031 | | New grants | — | 1,000 | 10,645 | 11,405 | | Shares paid or expired | — | — | (13,150) | (13,475) | | End of period | 32,392 | 34,992 | 32,392 | 34,992 | - For the 2022-2024 performance cycle, WTM performance share payments were made in March 2025 at **200%** of target[182](index=182&type=chunk) [Note 13. Noncontrolling Interests](index=44&type=section&id=Note%2013.%20Noncontrolling%20Interests) Noncontrolling interests in consolidated entities totaled $695.7 million as of June 30, 2025, an increase from $647.3 million at December 31, 2024, with Ark representing the largest portion of noncontrolling interests at $447.4 million, followed by Kudu and Bamboo Noncontrolling Interests (Millions) | Segment | June 30, 2025 Equity | June 30, 2025 Percentage | December 31, 2024 Equity | December 31, 2024 Percentage | | :---------------- | :------------------- | :----------------------- | :----------------------- | :--------------------------- | | Ark | $447.4 | 27.9% | $410.4 | 27.9% | | HG Global | $(12.4) | 3.1% | $(13.4) | 3.1% | | Kudu | $127.6 | 8.8% | $127.6 | 9.6% | | Bamboo | $93.1 | 27.2% | $113.6 | 27.2% | | Other | $40.0 | various | $9.1 | various | | **Total** | **$695.7** | | **$647.3** | | [Note 14. Segment Information](index=44&type=section&id=Note%2014.%20Segment%20Information) White Mountains's segments reported varied pre-tax financial results for the three and six months ended June 30, 2025, with Ark/WM Outrigger and Financial Guarantee showing strong pre-tax income growth, Asset Management maintaining consistent performance, P&C Insurance Distribution significantly improving, and Other Operations rebounding from a prior-year loss, and the majority of revenues from external customers originated in the United Kingdom and Bermuda Pre-tax Income (Loss) by Segment (Millions) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :-------------------------- | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Ark/WM Outrigger | $97.5 | $58.5 | 66.7% | $143.9 | $101.4 | 41.9% | | Financial Guarantee | $16.7 | $(7.8) | N/A | $41.7 | $(22.9) | N/A | | Asset Management | $10.7 | $61.3 | -82.5% | $64.1 | $63.0 | 1.7% | | P&C Insurance Distribution | $16.1 | $6.4 | 151.6% | $22.4 | $7.3 | 206.8% | | Other Operations | $35.5 | $(153.1) | N/A | $(23.2) | $49.1 | N/A | | **Total pre-tax income (loss)** | **$176.5** | **$(34.7)** | **N/A** | **$248.9** | **$197.9** | **25.8%** | Revenues from External Customers by Country (Millions) | Country | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | United States | $117.0 | $48.1 | $189.7 | $85.6 | | United Kingdom | $229.0 | $193.7 | $444.5 | $371.1 | | Bermuda | $144.6 | $148.7 | $309.2 | $289.0 | | Other | $4.2 | $3.4 | $8.1 | $7.0 | | **Total** | **$494.8** | **$393.9** | **$951.5** | **$752.7** | [Note 15. Variable Interest Entities](index=50&type=section&id=Note%2015.%20Variable%20Interest%20Entities) White Mountains consolidates WM Outrigger Re and Bamboo CRV as Variable Interest Entities (VIEs) where it is the primary beneficiary, but it does not consolidate BAM (deconsolidated July 1, 2024), PassportCard/DavidShield, Elementum, or other limited partnerships, as it is not deemed the primary beneficiary for these entities, despite holding significant influence or variable interests - White Mountains consolidates WM Outrigger Re and Bamboo CRV because it is the primary beneficiary, holding both the power to direct significant activities and the obligation to absorb losses or right to receive returns[198](index=198&type=chunk)[206](index=206&type=chunk) - BAM was deconsolidated effective July 1, 2024, as White Mountains concluded it no longer had the power to direct BAM's activities that most significantly impact its economic performance[201](index=201&type=chunk) - White Mountains does not consolidate PassportCard/DavidShield (**53.8%** ownership) or Elementum (**26.6%** ownership) as it does not have unilateral power to direct their operations, but accounts for them under the equity method with a fair value option[204](index=204&type=chunk)[205](index=205&type=chunk) - Investments in limited partnerships are generally considered VIEs but are not consolidated as White Mountains does not have unilateral power to direct their operations; they are accounted for at fair value using NAV[207](index=207&type=chunk) [Note 16. Equity Method Eligible Investments](index=52&type=section&id=Note%2016.%20Equity%20Method%20Eligible%20Investments) White Mountains's equity method eligible investments, including Kudu's Participation Contracts, MediaAlpha, PassportCard/DavidShield, and Elementum, totaled $1,768.6 million as of June 30, 2025, and these investments generated $36.9 million in dividend and income distributions for the six months ended June 30, 2025 Equity Method Eligible Investments (Millions) | Investment | Ownership Interest (June 30, 2025) | Carrying Value (June 30, 2025) | Ownership Interest (December 31, 2024) | Carrying Value (December 31, 2024) | | :-------------------------- | :--------------------------------- | :----------------------------- | :------------------------------------- | :----------------------------------- | | Kudu's Participation Contracts | 4.1% - 30.0% | $1,121.1 | 4.1% - 30.0% | $1,008.4 | | Investment in MediaAlpha | 26.3% | $195.5 | 26.6% | $201.6 | | PassportCard/DavidShield | 53.8% | $155.0 | 53.8% | $150.0 | | Elementum | 26.6% | $35.0 | 26.6% | $35.0 | | Other equity method eligible investments | Under 50.0% | $257.0 | Under 50.0% | $243.7 | | **Total** | | **$1,763.6** | | **$1,638.7** | - White Mountains received **$36.9 million** in dividend and income distributions from equity method eligible investments for the six months ended June 30, 2025[209](index=209&type=chunk) [Note 17. Fair Value of Financial Instruments](index=52&type=section&id=Note%2017.%20Fair%20Value%20of%20Financial%20Instruments) White Mountains records most financial instruments at fair value, except for debt obligations, which are recorded at face value less unamortized costs, and the fair value of debt obligations, determined using discounted cash flow analyses, increased to $694.6 million as of June 30, 2025, from $562.5 million at December 31, 2024 Fair Value and Carrying Value of Debt Obligations (Millions) | Debt Type | Fair Value (June 30, 2025) | Carrying Value (June 30, 2025) | Fair Value (December 31, 2024) | Carrying Value (December 31, 2024) | | :-------------------------- | :------------------------- | :----------------------------- | :----------------------------- | :--------------------------------- | | Ark 2021 Subordinated Notes | $179.8 | $158.9 | $173.9 | $154.5 | | HG Global Senior Notes | $154.9 | $147.6 | $157.2 | $147.4 | | Kudu Credit Facility | $260.8 | $246.8 | $253.3 | $238.6 | | Bamboo Credit Facility | $106.8 | $104.6 | $— | $— | | Other Operations debt | $37.9 | $36.7 | $23.1 | $22.0 | | **Total Debt** | **$740.2** | **$694.6** | **$607.5** | **$562.5** | - Fair value estimates for debt obligations are based on Level 3 measurements using discounted cash flow analyses[210](index=210&type=chunk) [Note 18. Commitments and Contingencies](index=53&type=section&id=Note%2018.%20Commitments%20and%20Contingencies) White Mountains is routinely involved in claims-related litigation and arbitration, with costs reflected in loss and LAE reserves, and the company has no current non-claims related litigation expected to materially impact its financial condition, results of operations, or cash flows - White Mountains is subject to routine claims-related litigation and arbitration, with estimated costs reflected in loss and LAE reserves[212](index=212&type=chunk) - No current non-claims related litigation is expected to have a material adverse effect on White Mountains's financial condition, results of operations, or cash flows[212](index=212&type=chunk) [Note 19. Subsequent events](index=53&type=section&id=Note%2019.%20Subsequent%20events) Subsequent to June 30, 2025, White Mountains entered into an agreement to acquire a 51.0% controlling interest in Distinguished Programs, a specialty P&C MGA, for approximately $230.0 million in cash, expected to close in Q3 2025, and additionally, White Mountains invested $150 million into BroadStreet Partners, Inc. on July 18, 2025 - On July 4, 2025, White Mountains agreed to acquire a **51.0%** controlling interest in Distinguished Programs, a full-service MGA and program administrator, for approximately **$230.0 million** in cash, with closing expected in Q3 2025[213](index=213&type=chunk)[214](index=214&type=chunk) - On July 18, 2025, White Mountains invested **$150 million** into BroadStreet Partners, Inc., an insurance brokerage company[224](index=224&type=chunk) - Following these deployments, White Mountains's undeployed capital stands at approximately **$300 million**[224](index=224&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) White Mountains reported a 3% increase in book value per share for both Q2 and H1 2025, driven by strong operating results and investment returns, with key activities including the acquisition of Enterprise Solutions and agreements to acquire Distinguished Programs and invest in BroadStreet, and segment performance was robust, with Ark/WM Outrigger and P&C Insurance Distribution showing significant growth, while overall investment returns were positive, excluding MediaAlpha's impact [Overview](index=54&type=section&id=Overview) White Mountains's book value per share increased by 3% in both Q2 and H1 2025, reaching $1,804, driven by sound operating results and good investment returns, with significant transactions including the acquisition of Enterprise Solutions, an agreement to acquire Distinguished Programs, and an investment in BroadStreet Partners, Inc., leaving approximately $300 million in undeployed capital - Book value per share increased by **3%** in both the second quarter and first six months of 2025, reaching **$1,804** as of June 30, 2025[219](index=219&type=chunk) - Comprehensive income attributable to common shareholders was **$124 million** in Q2 2025 (vs. **$(55) million** in Q2 2024) and **$159 million** in H1 2025 (vs. **$182 million** in H1 2024)[221](index=221&type=chunk) - Acquisitions include Enterprise Solutions (April 1, 2025), an agreement to acquire Distinguished Programs (July 4, 2025), and an investment in BroadStreet Partners, Inc. (July 18, 2025)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) - Undeployed capital stands at approximately **$300 million** after recent deployments[224](index=224&type=chunk) - Total consolidated portfolio return on invested assets was **2.7%** in Q2 2025 (excluding MediaAlpha: **2.3%**) and **4.5%** in H1 2025 (excluding MediaAlpha: **4.7%**)[234](index=234&type=chunk)[235](index=235&type=chunk) [Book Value Per Share](index=56&type=section&id=Book%20Value%20Per%20Share) White Mountains's book value per share increased to $1,803.57 as of June 30, 2025, from $1,745.87 at December 31, 2024, reflecting a 3.3% growth year-to-date, including dividends Book Value Per Share | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------- | :---------------- | :------------ | | White Mountains's common shareholders' equity (Millions) | $4,644.5 | $4,509.6 | $4,483.7 | $4,422.6 | | Common shares outstanding (Thousands) | 2,575.1 | 2,573.7 | 2,568.1 | 2,568.3 | | **Book value per share** | **$1,803.57** | **$1,752.17** | **$1,745.87** | **$1,722.02** | | Year-to-date dividends paid per share | $1.00 | $1.00 | $1.00 | $1.00 | [Goodwill and Other Intangible Assets](index=57&type=section&id=Goodwill%20and%20Other%20Intangible%20Assets) Goodwill and other intangible assets included in White Mountains's common shareholders' equity increased to $585.5 million as of June 30, 2025, from $529.8 million at December 31, 2024, primarily due to the acquisition of Enterprise Solutions Goodwill and Other Intangible Assets (Millions) | Asset Type | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------- | :---------------- | :------------ | | Total goodwill | $534.6 | $439.2 | $439.2 | $439.2 | | Total other intangible assets | $270.8 | $275.9 | $281.1 | $291.8 | | Total goodwill and other intangible assets | $805.4 | $715.1 | $720.3 | $731.0 | | Goodwill and other intangible assets included in White Mountains's common shareholders' equity | $585.5 | $525.9 | $529.8 | $537.8 | - The increase in goodwill for Other Operations to **$139.8 million** as of June 30, 2025, from **$44.4 million** at December 31, 2024, was due to the Enterprise Solutions Transaction[237](index=237&type=chunk) [Summary of Consolidated Results](index=58&type=section&id=Summary%20of%20Consolidated%20Results) White Mountains's consolidated results for Q2 and H1 2025 show significant revenue growth and a strong rebound in pre-tax income compared to 2024, with P&C Insurance and Reinsurance, Financial Guarantee, and P&C Insurance Distribution segments being key drivers of this improvement, while Other Operations also returned to profitability in Q2 2025 Consolidated Financial Results by Industry (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Total revenues | $689.2 | $395.4 | 74.3% | $1,267.0 | $1,042.7 | 21.5% | | Total expenses | $512.7 | $430.1 | 19.2% | $1,018.1 | $844.8 | 20.5% | | Total pre-tax income (loss) | $176.5 | $(34.7) | N/A | $248.9 | $197.9 | 25.8% | | Net income (loss) attributable to White Mountains's common shareholders | $122.9 | $(54.6) | N/A | $156.8 | $181.8 | -13.7% | | Comprehensive income (loss) attributable to White Mountains's common shareholders | $123.7 | $(54.6) | N/A | $158.8 | $181.6 | -12.5% | [I. SUMMARY OF OPERATIONS BY SEGMENT](index=59&type=section&id=I.%20SUMMARY%20OF%20OPERATIONS%20BY%20SEGMENT) This section provides a detailed breakdown of the financial performance for each of White Mountains's reportable segments: Ark/WM Outrigger, HG Global, Kudu, Bamboo, and Other Operations, highlighting key revenue drivers, expense trends, and pre-tax income contributions for the three and six months ended June 30, 2025 and 2024 [Ark/WM Outrigger](index=59&type=section&id=Ark%2FWM%20Outrigger) The Ark/WM Outrigger segment reported strong performance with combined ratios of 84% (Q2 2025) and 90% (H1 2025), driven by favorable prior year loss reserve development and premium growth, with gross written premiums increasing by 17% in Q2 2025 and 23% in H1 2025, primarily from new underwriting teams in property and specialty lines, and pre-tax income significantly increased to $97.5 million in Q2 2025 and $143.9 million in H1 2025 Ark/WM Outrigger Key Financials (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :-------------------- | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Gross written premiums | $815.2 | $697.0 | 16.9% | $1,922.8 | $1,569.1 | 22.5% | | Net earned premiums | $364.2 | $318.3 | 14.4% | $722.2 | $621.1 | 16.3% | | Pre-tax income (loss) | $97.5 | $58.5 | 66.7% | $143.9 | $101.4 | 41.9% | | Combined Ratio | 84.4% | 87.0% | -3.0% | 90.4% | 89.2% | 1.3% | - Ark's combined ratio included **five points** of net favorable prior year loss reserve development in Q2 2025 and **nine points** in H1 2025, primarily from property, marine & energy, and specialty lines, partially offset by aviation losses from the conflict in Ukraine[248](index=248&type=chunk)[258](index=258&type=chunk) - WM Outrigger Re's combined ratio was **44%** in Q2 2025 and **120%** in H1 2025, with H1 2025 including **$19 million** of catastrophe losses related to California wildfires[250](index=250&type=chunk)[261](index=261&type=chunk) - Ark's results for H1 2025 included a **$38 million** expense related to the increase in fair value of White Mountains's contingent consideration liability[260](index=260&type=chunk) [HG Global](index=68&type=section&id=HG%20Global) HG Global reported significant growth in gross written premiums and pre-tax income for both Q2 and H1 2025, with total par value of policies assumed increasing and gross pricing improving, especially in the primary market, and the fair value of BAM Surplus Notes increased, while HG Re received a $22 million distribution from the Supplemental Trust in H1 2025 HG Global Key Financials (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :-------------------- | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Gross written premiums | $19.2 | $11.6 | 65.5% | $25.9 | $20.5 | 26.3% | | Earned premiums | $7.1 | $7.5 | -5.3% | $15.3 | $14.0 | 9.3% | | Pre-tax income (loss) | $16.7 | $11.1 | 50.5% | $41.7 | $16.4 | 154.3% | | Total par value of policies assumed | $930.5 | $785.9 | 18.4% | $1,357.8 | $1,323.9 | 2.6% | | Total gross pricing | 206 bps | 148 bps | 39.2% | 191 bps | 155 bps | 23.2% | - The fair value of the BAM Surplus Notes increased to **$397 million** as of June 30, 2025, from **$389 million** as of March 31, 2025, due to accrued interest[279](index=279&type=chunk) - HG Re received a **$22 million** distribution from the Supplemental Trust in H1 2025, comprising **$15 million** in assigned accrued interest on BAM Surplus Notes and **$7 million** in cash[286](index=286&type=chunk) [Kudu](index=73&type=section&id=Kudu) Kudu reported total revenues of $20 million (Q2 2025) and $84 million (H1 2025), with pre-tax income of $11 million (Q2 2025) and $64 million (H1 2025), and adjusted EBITDA increased to $16 million (Q2 2025) and $32 million (H1 2025), driven by higher net investment income from new deployments and AUM growth, while Kudu deployed $69 million into one new asset management firm in 2025, bringing total deployments to $1.06 billion across 28 firms Kudu Key Financials (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :-------------------- | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Total revenues | $20.4 | $70.2 | -70.9% | $84.2 | $80.9 | 4.1% | | Pre-tax income (loss) | $10.7 | $61.3 | -82.5% | $64.1 | $63.0 | 1.7% | | Adjusted EBITDA | $16.2 | $12.4 | 30.6% | $32.0 | $26.3 | 21.7% | | Net investment income | $19.3 | $15.7 | 22.9% | $38.7 | $32.9 | 17.6% | - Kudu deployed **$69 million** into one new asset management firm in 2025, bringing total deployments to **$1.06 billion** across **28 firms** globally[292](index=292&type=chunk)[231](index=231&type=chunk) - The increase in net investment income was primarily due to higher dividends from existing participation contracts and amounts earned from **$171 million** of new deployments made subsequent to June 30, 2024[295](index=295&type=chunk)[296](index=296&type=chunk) [Bamboo](index=75&type=section&id=Bamboo) Bamboo reported significant growth in commission and fee revenues and pre-tax income for both Q2 and H1 2025, with MGA adjusted EBITDA more than doubling in both periods, and managed premiums increased by 59% in Q2 2025 and 61% in H1 2025, driven by renewal book growth and new business volume from additional fronted programs, while estimates for January 2025 California wildfires losses remain at $160 million Bamboo Key Financials (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :-------------------------- | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Commission and fee revenues | $59.1 | $32.7 | 80.7% | $103.3 | $54.6 | 89.2% | | Pre-tax income (loss) | $16.1 | $6.4 | 151.6% | $22.4 | $7.3 | 206.8% | | MGA adjusted EBITDA | $25.6 | $11.5 | 122.6% | $45.5 | $17.9 | 154.2% | | Managed premiums | $190.8 | $119.8 | 59.3% | $337.8 | $209.3 | 61.4% | - Bamboo's estimates for losses from the January 2025 California wildfires remain unchanged at approximately **$160 million** as of June 30, 2025[300](index=300&type=chunk) - Managed premiums increased due to strong client policy retention rates, approved rate increases, and the launch of additional fronted programs[302](index=302&type=chunk) [Other Operations](index=76&type=section&id=Other%20Operations) White Mountains's Other Operations reported a pre-tax income of $35.5 million in Q2 2025, a significant rebound from a $(153.1) million loss in Q2 2024, primarily due to unrealized investment gains from MediaAlpha and the acquisition of Enterprise Solutions, and for H1 2025, a pre-tax loss of $(23.2) million was reported, an improvement from the prior year's loss when excluding MediaAlpha's impact Other Operations Key Financials (Millions) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change (3 Months) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change (6 Months) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :------------------ | :--------------------------- | :--------------------------- | :------------------ | | Total revenues | $134.2 | $(95.8) | N/A | $141.5 | $165.0 | -14.3% | | Pre-tax income (loss) | $35.5 | $(153.1) | N/A | $(23.2) | $49.1 | N/A | | Unrealized investment gains (losses) from investment in MediaAlpha | $30.5 | $(139.2) | N/A | $(6.1) | $71.5 | N/A | | Other revenues | $56.8 | $14.5 | 291.7% | $70.4 | $28.9 | 143.6% | | Cost of sales | $42.4 | $7.0 | 505.7% | $49.9 | $14.6 | 241.8% | - The increases in other revenues and cost of sales were primarily driven by the acquisition of Enterprise Solutions by WTM Partners in Q2 2025[307](index=307&type=chunk)[311](index=311&type=chunk) - General and administrative expenses decreased in H1 2025 due to lower long-term incentive compensation costs, partially offset by parent company transaction costs and the Enterprise Solutions acquisition[312](index=312&type=chunk) - The Bamboo CRV reported a **$7 million** pre-tax loss in H1 2025, including approximately **$12 million** related to the January 2025 California wildfires[313](index=313&type=chunk) [II. Summary of Investment Results](index=78&type=section&id=II.%20Summary%20of%20Investment%20Results) White Mountains's total consolidated portfolio returned 2.7% in Q2 2025 and 4.5% in H1 2025, excluding MediaAlpha, returns were 2.3% and 4.7%, respectively, driven by fixed income and other long-term investments, and the fixed income portfolio outperformed its benchmark in Q2 2025, while common equity securities underperformed the S&P 500, and foreign currency exposure on net assets totaled $316 million as of June 30, 2025 Pre-tax Time-Weighted Investment Returns | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Fixed income investments | 1.5% | 1.0% | 3.3% | 1.7% | | Bloomberg U.S. Intermediate Aggregate Index | 1.5% | 0.5% | 4.2% | 0.0% | | Common equity securities | 4.5% | 3.3% | 6.4% | 7.8% | | Investment in MediaAlpha | 18.5% | -36.7% | -3.0% | 15.6% | | Other long-term investments | 3.0% | 4.1% | 6.4% | 5.6% | | Total consolidated portfolio | 2.7% | -0.1% | 4.5% | 4.5% | | Total consolidated portfolio - excluding MediaAlpha | 2.3% | 2.2% | 4.7% | 3.5% | - The fixed income portfolio, including short-term investments, totaled **$3.9 billion** as of June 30, 2025, with a duration of **1.6 years**[317](index=317&type=chunk) - The decrease in common equity securities in H1 2025 was due to the sale of White Mountains's ETF portfolio in preparation for near-term capital deployments[321](index=321&type=chunk) Foreign Denominated Net Assets (Liabilities) by Segment (Millions) as of June 30, 2025 | Currency | Ark/WM Outrigger | Kudu | Other Operations | Total Fair Value | % of Total Shareholders' Equity | | :--------- | :--------------- | :--- | :--------------- | :--------------- | :------------------------------ | | CAD | $95.3 | $57.1 | $— | $152.4 | 2.9% | | AUD | $48.1 | $69.6 | $— | $117.7 | 2.2% | | GBP | $48.8 | $— | $— | $48.8 | 0.9% | | EUR | $(35.7) | $32.0 | $— | $(3.7) | -0.1% | | All other | $— | $— | $0.9 | $0.9 | — | | **Total** | **$156.5** | **$158.7** | **$0.9** | **$316.1** | **5.9%** | [III. Income Taxes](index=80&type=section&id=III.%20Income%20Taxes) White Mountains's effective tax rate for Q2 and H1 2025 was 7% and 9%, respectively, lower than the U.S. statutory rate due to income in lower-tax jurisdictions, and the company expects to be exempt from Bermuda's 15% corporate income tax until January 1, 2030, and from Luxembourg and U.K. Pillar Two UTPR until January 1, 2029, and January 1, 2030, respectively, and a net deferred tax asset of $73 million related to Bermuda's economic transition adjustment is maintained, though its future impact is uncertain due to OECD guidance - Effective tax rates were **7%** for Q2 2025 and **9%** for H1 2025, lower than the U.S. statutory rate of **21.0%** due to forecasted income in lower-tax jurisdictions[335](index=335&type=chunk) - White Mountains expects to be exempt from Bermuda's **15%** corporate income tax until January 1, 2030[329](index=329&type=chunk) - A net deferred tax asset of **$73 million** related to Bermuda's economic transition adjustment is maintained, but its future impact is uncertain due to January 2025 OECD Administrative Guidance[329](index=329&type=chunk)[333](index=333&type=chunk) - The company expects deferrals from Luxembourg and U.K. Pillar Two UTPR until January 1, 2029, and January 1, 2030, respectively[331](index=331&type=chunk)[332](index=332&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=82&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) White Mountains maintains adequate liquidity through cash balances, operating cash flows, and investment sales, with dividend capacity varying by subsidiary, and Ark paying $30 million to White Mountains in H1 2025, while total debt increased to $694.6 million, with a debt-to-total capital ratio of 11.5%, and the company has authorized share repurchases and recently established a new $250 million revolving credit facility - Management believes cash balances, operating cash flows, and routine investment sales/maturities are adequate to meet expected cash requirements[342](index=342&type=chunk) - Ark paid **$30 million** in dividends to White Mountains during the six months ended June 30, 2025[344](index=344&type=chunk) Capital Structure (Millions) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total debt | $694.6 | $562.5 | | Noncontrolling interests | $695.7 | $647.3 | | Total White Mountains's common shareholders' equity | $4,644.5 | $4,483.7 | | **Total capital** | **$6,034.8** | **$5,693.5** | | Total debt to total capital | 11.5% | 9.9% | - A new **$250 million** senior unsecured revolving credit facility was established on July 16, 2025, currently undrawn[353](index=353&type=chunk) - White Mountains repurchased and retired **5,097** common shares for **$10 million** in H1 2025, primarily to satisfy employee income tax withholding[359](index=359&type=chunk) [NON-GAAP FINANCIAL MEASURES](index=84&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section defines and reconciles eight non-GAAP financial measures used by White Mountains to evaluate performance: Ark's tangible book value, Kudu's EBITDA and adjusted EBITDA, Bamboo's MGA pre-tax income (loss), MGA net income (loss), MGA EBITDA, MGA adjusted EBITDA, and total consolidated portfolio returns excluding MediaAlpha, and these measures provide insights into underlying business performance by adjusting for specific GAAP items - Ark's tangible book value adjusts GAAP book value by excluding goodwill, other intangible assets, related deferred tax liability, and contingent consideration liability[368](index=368&type=chunk) - Kudu's EBITDA and adjusted EBITDA are non-GAAP measures that add back interest, taxes, depreciation, and amortization, with adjusted EBITDA further excluding net realized/unrealized investment gains/losses, non-cash equity-based compensation, and transaction expenses[369](index=369&type=chunk)[370](index=370&type=chunk)[372](index=372&type=chunk) - Bamboo's MGA pre-tax income (loss), MGA net income (loss), MGA EBITDA, and MGA adjusted EBITDA exclude the results of the Bamboo Captive and other specific non-cash or restructuring expenses to focus on MGA performance[371](index=371&type=chunk)[373](index=373&type=chunk) - Total consolidated portfolio return excluding MediaAlpha removes the investment income and gains/losses from MediaAlpha to show underlying portfolio performance[374](index=374&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=87&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) For a complete discussion of White Mountains's critical accounting estimates, refer to the Company's 2024 Annual Report on Form 10-K - Refer to the Company's 2024 Annual Report on Form 10-K for a complete discussion regarding White Mountains's critical accounting estimates[376](index=376&type=chunk) [FORWARD-LOOKING STATEMENTS](index=88&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section contains forward-looking statements regarding White Mountains's future expectations, including financial targets, business strategy, and operational plans, and these statements are based on management's assumptions but are subject to various risks and uncertainties that could cause actual results to differ materially, such as catastrophic events, market value fluctuations, regulatory changes, and competitive forces - Forward-looking statements include expectations regarding book value per share, business strategy, financial targets, incurred losses, and business expansion[378](index=378&type=chunk)[381](index=381&type=chunk) - Actual results may differ materially due to risks such as catastrophic events, inadequate loss reserves, market value of MediaAlpha, rating agency actions, and changes in laws or regulations[381](index=381&type=chunk) - White Mountains assumes no obligation to publicly update any forward-looking statements[380](index=380&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) For detailed quantitative and qualitative disclosures about market risk, refer to White Mountains's 2024 Annual Report on Form 10-K, specifically Item 7A - Refer to White Mountains's 2024 Annual Report on Form 10-K, Item 7A, for detailed disclosures about market risk[382](index=382&type=chunk) [Item 4. Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) White Mountains's Principal Executive Officer and Principal Financial Officer evaluated the effectiveness of its disclosure controls and procedures as of June 30, 2025, concluding they are adequate and effective, and no material changes to internal control over financial reporting occurred during Q2 2025 - The PEO and PFO concluded that White Mountains's disclosure controls and procedures were adequate and effective as of June 30, 2025[382](index=382&type=chunk) - No material changes to internal control over financial reporting occurred during the second quarter of 2025[383](index=383&type=chunk) [PART II. OTHER INFORMATION](index=87&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, issuer purchases of equity securities, defaults upon senior securities, other information, and a list of exhibits [Items 1 through 6.](index=89&type=section&id=Items%201%20through%206.) This section addresses legal proceedings, risk factors, equity security purchases, senior security defaults, other information, and exhibits, noting no material changes or share repurchases in Q2 2025 [Item 1. Legal Proceedings](index=89&type=section&id=Item%201.%20Legal%20Proceedings) There are no legal proceedings to report - No legal proceedings to report[384](index=384&type=chunk) [Item 1A. Risk Factors](index=89&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Registrant's 2024 Annual Report on Form 10-K - No material changes to risk factors previously disclosed in the 2024 Annual Report on Form 10-K[385](index=385&type=chunk) [Item 2. Issuer Purchases of Equity Securities](index=89&type=section&id=Item%202.%20Issuer%20Purchases%20of%20Equity%20Securities) White Mountains did not repurchase any common shares under its publicly announced plans during the second quarter of 2025, and as of June 30, 2025, the company may repurchase an additional 301,014 shares under existing Board authorizations Issuer Purchases of Equity Securities (Q2 2025) | Months | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares that May Yet Be Purchased Under the Plans | | :----------------------- | :----------------------------- | :--------------------------- | :----------------------------------------------------------------- | :--------------------------------------------------------------- | | April 1 - April 30, 2025 | — | $— | — | 301,014 | | May 1 - May 31, 2025 | — | $— | — | 301,014 | | June 1 - June 30, 2025 | — | $— | — | 301,014 | | **Total** | **—** | **$—** | **—** | **301,014** | - The Board of Directors' repurchase authorizations do not have a stated expiration date[386](index=386&type=chunk) [Item 3. Defaults Upon Senior Securities](index=89&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report - No defaults upon senior securities[387](index=387&type=chunk) [Item 4. Mine Safety Disclosures](index=89&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There are no mine safety disclosures to report - No mine safety disclosures[388](index=388&type=chunk) [Item 5. Other Information](index=90&type=section&id=Item%205.%20Other%20Information) White Mountains has an Insider Trading Policy designed to ensure compliance with relevant laws and regulations, and no trading plans under Rule 10b5-1(c) were adopted or terminated by directors or officers during Q2 2025 - The Company has an Insider Trading Policy to promote compliance with insider trading laws[389](index=389&type=chunk) - No Rule 10b5-1(c) trading plans were adopted or terminated by directors or officers during the second quarter of 2025[390](index=390&type=chunk) [Item 6. Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including credit agreements, amendments to incentive plans, a unit purchase agreement, and officer certifications - Exhibits include the Credit Agreement dated July 16, 2025, amendments to the Long-Term Incentive Plan, the Unit Purchase Agreement for AQ Phoenix Parent, L.P., and officer certifications[391](index=391&type=chunk) [SIGNATURES](index=90&type=section&id=SIGNATURES) The report is duly signed on behalf of White Mountains Insurance Group, Ltd. by Michaela J. Hildreth, Managing Director and Chief Accounting Officer, on August 7, 2025 - The report was signed by Michaela J. Hildreth, Managing Director and Chief Accounting Officer, on August 7, 2025[394](index=394&type=chunk)