White Mountains Insurance(WTM) - 2024 Q2 - Quarterly Results

Financial Performance - Ark reported gross written premiums of $697 million, up 15% year-over-year, with a combined ratio of 89% in Q2 2024[2][3]. - BAM's gross written premiums and member surplus contributions increased to $28 million in Q2 2024, up 7% year-over-year, with total insured municipal bonds reaching $5.3 billion[7][8]. - Kudu's total revenues increased to $70 million in Q2 2024, with pre-tax income rising to $61 million compared to $19 million and $10 million in Q2 2023[11]. - Bamboo's managed premiums tripled year-over-year to $120 million in Q2 2024, driven by strong new business volume and an expanding renewal book[13][15]. - Total revenues for the three months ended June 30, 2024, increased to $395.4 million from $378.4 million in the same period last year, representing a growth of 4.6%[29]. - Total P&C Insurance and Reinsurance revenues for the six months ended June 30, 2024, were $700.1 million, up from $610.5 million in the same period last year[29]. - Total revenues for the six months ended June 30, 2024, were $1,042.7 million, an increase from $910.3 million in the same period of 2023, representing a growth of approximately 14.5%[40]. Investment Performance - Total consolidated portfolio return was -0.1% in Q2 2024, but 2.2% excluding MediaAlpha[19][20]. - The company reported net realized and unrealized investment gains of $95.1 million for the six months ended June 30, 2024, compared to $201.6 million in 2023, indicating a decrease of about 52.8%[40]. - Net investment income for the three months ended June 30, 2024, was $22.3 million, up from $13.7 million in the same period last year[29]. - Net investment income for the six months ended June 30, 2024, was $114.4 million, compared to $82.0 million in 2023, reflecting an increase of approximately 39.5%[40]. Shareholder Equity and Book Value - Book value per share decreased by 1% to $1,722 and adjusted book value per share decreased by 1% to $1,777 as of June 30, 2024[1]. - The company's common shareholders' equity rose to $4,422.6 million as of June 30, 2024, up from $3,922.2 million a year ago, indicating a growth of 12.8%[26]. - GAAP book value per share decreased by 1.2% quarter-to-date to $1,722.02, while adjusted book value per share decreased by 1.1% to $1,776.89[28]. - Year-to-date change in GAAP book value per share, including dividends, was 4.0%[28]. Expenses and Losses - Total expenses for the three months ended June 30, 2024, increased to $430.1 million from $361.0 million in the same period last year[31]. - Loss and loss adjustment expenses for the three months ended June 30, 2024, were $175.7 million, compared to $167.5 million in the same period last year[31]. - Loss and loss adjustment expenses totaled $369.7 million for the six months ended June 30, 2024, compared to $315.3 million in 2023, marking an increase of about 17.2%[41]. - Acquisition expenses for the three months ended June 30, 2024, were $75.9 million, up from $62.9 million in the same period of 2023, reflecting an increase of approximately 21%[36][38]. Capital and Reserves - Undeployed capital stands at approximately $650 million as of Q2 2024[2]. - Loss and loss adjustment expense reserves for P&C Insurance and Reinsurance stood at $1,890.1 million as of June 30, 2024, compared to $1,421.0 million a year earlier, reflecting a 33.0% increase[27]. - Unearned insurance premiums for P&C Insurance and Reinsurance increased to $1,526.1 million as of June 30, 2024, from $1,376.5 million a year earlier, representing an increase of 10.9%[27]. - Total liabilities reached $5,294.7 million as of June 30, 2024, compared to $4,250.4 million a year earlier, indicating a year-over-year increase of 24.6%[27]. Market Conditions and Risks - White Mountains anticipates future capital expenditures to support business expansion and growth strategies[70]. - White Mountains' forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations[71]. - The company highlights potential claims arising from catastrophic events, including hurricanes and public health crises[71]. - There is a risk that recorded loss reserves may prove to be inadequate[71]. - The market value of White Mountains' investment in MediaAlpha is a point of concern[71]. - The ongoing trends and uncertainties from the COVID-19 pandemic may impact business opportunities[71]. - Actions taken by rating agencies could affect financial strength or credit ratings[71]. - The availability of capital and financing remains a critical factor for the company[71]. - Competitive forces and the conduct of other insurers are influencing market conditions[71]. - Changes in domestic or foreign laws or regulations could impact operations[71]. Dividends and Share Repurchases - The company declared dividends of $1.00 per common share for the six months ended June 30, 2024, consistent with the same period in 2023[34]. - White Mountains did not repurchase any common shares in Q2 2024, but repurchased 5,269 shares for $8 million in the first half of 2024[20]. - In Q2 2023, White Mountains repurchased 5,542 common shares for $7 million at an average price of $1,336.68, representing 85% of the adjusted book value per share[21]. - In the first half of 2023, the company repurchased 24,165 common shares for $33 million at an average price of $1,354.88, or 86% of the adjusted book value per share[21].