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

Financial Performance - As of June 30, 2024, White Mountains reported a book value per share of $1,722 and an adjusted book value per share of $1,777, both decreasing by 1% in Q2 2024 but increasing by 4% in the first six months of 2024[165]. - Total revenues for Q2 2024 reached $395.4 million, a 4.6% increase from $378.4 million in Q2 2023[174]. - Net income attributable to White Mountains's common shareholders for Q2 2024 was a loss of $54.6 million, compared to a profit of $19.6 million in Q2 2023[174]. - The company reported a pre-tax loss of $34.7 million for Q2 2024, compared to a pre-tax income of $17.4 million in Q2 2023[174]. - The company reported a pre-tax loss of $(23.1) million for the six months ended June 30, 2024, compared to a pre-tax loss of $(13.2) million for the same period in 2023, indicating a worsening of financial performance[206]. Revenue Growth - Kudu reported total revenues of $70 million and pre-tax income of $61 million in Q2 2024, significantly up from $19 million and $10 million respectively in Q2 2023[167]. - Bamboo's managed premiums increased to $120 million in Q2 2024 from $41 million in Q2 2023, driven by growth in new business volume[167]. - Asset Management revenues surged to $70.2 million in Q2 2024, compared to $19.3 million in Q2 2023, marking a significant growth[174]. - Financial Guarantee revenues increased to $15.7 million in Q2 2024, compared to $5.9 million in Q2 2023[174]. - Gross written premiums increased by 15% to $697 million in Q2 2024 compared to $606 million in Q2 2023, driven primarily by property, marine & energy, and specialty lines of business[189]. Investment Performance - White Mountains's total consolidated portfolio return on invested assets was -0.1% in Q2 2024, impacted by $139 million of net realized and unrealized investment losses from MediaAlpha[169]. - MediaAlpha's share price decreased to $13.17 per share as of June 30, 2024, down from $20.37 per share at the end of Q1 2024, leading to a decline in White Mountains's investment carrying value by $231 million[167]. - The portfolio returned -1.3% in Q2 2024, including $139 million of net realized and unrealized investment losses from MediaAlpha, compared to a return of 3.9% for the same period in 2023[244]. - For the first six months of 2024, the portfolio returned 8.1%, including $72 million of net realized and unrealized investment gains from MediaAlpha, compared to 9.1% in the first half of 2023[244]. Segment Performance - The Ark/WM Outrigger segment's combined ratio was 87% in Q2 2024, with gross written premiums of $697 million and net earned premiums of $318 million, compared to gross written premiums of $606 million in Q2 2023[165]. - The Ark segment reported pre-tax income of $50 million in Q2 2024, compared to $42 million in Q2 2023, with net realized and unrealized investment gains of $20 million[165]. - WM Outrigger Re's combined ratio was 27% in Q2 2024, with gross written premiums of $39 million, down from $58 million in Q2 2023 due to lower capital commitment[167]. - The Ark/WM Outrigger segment reported pre-tax income of $58.5 million for Q2 2024, an increase from $51.8 million in Q2 2023[177]. Expenses and Liabilities - Total expenses for Q2 2024 were $430.1 million, up from $361.0 million in Q2 2023, reflecting a 19.2% increase[174]. - Total liabilities as of June 30, 2024, were $4,203.0 million, reflecting an increase from $2,876.1 million as of December 31, 2023[200]. - The company reported a loss and loss adjustment expense reserve of $1,890.1 million as of June 30, 2024[199]. Capital and Equity - As of June 30, 2024, White Mountains's undeployed capital was approximately $650 million[165]. - Total equity for White Mountains's common shareholders was $363.5 million in June 2024, consistent with the previous period[218][220]. - White Mountains repurchased 5,269 common shares for $8 million at an average price of $1,505, approximately 85% of its adjusted book value per share as of June 30, 2024[260]. Future Outlook - The company plans to expand its marine & energy and accident & health lines of business, supported by new teams in London[198]. - White Mountains expects to meet requirements to be exempt from Bermuda corporate income tax until January 1, 2030, benefiting from a net deferred tax asset of $68 million recognized as of December 31, 2023[247]. - The company plans to continue focusing on market expansion and new product development to drive future growth[206].