White Mountains Insurance(WTM) - 2024 Q4 - Annual Results

Financial Performance - As of December 31, 2024, book value per share was $1,746 and adjusted book value per share was $1,834, both down 3% in Q4 2024 but up 6% and 8% for the year, respectively[2] - Comprehensive income attributable to common shareholders was $(131) million in Q4 2024, compared to $288 million in Q4 2023[3] - The company reported a net realized and unrealized investment loss of $34.0 million in Q4 2024, contrasting with a gain of $50.0 million in Q4 2023[40] - For the three months ended December 31, 2024, the net income attributable to White Mountains common shareholders was $(130.4) million, compared to $286.5 million for the same period in 2023[44] - The basic earnings per share for the three months ended December 31, 2024, was $(50.78), compared to $111.87 for the same period in 2023[46] - For the year ended December 31, 2024, total revenues amounted to $2,239.8 million, with earned insurance premiums at $1,691.6 million[52] - Pre-tax income for the year was $565.4 million, reflecting a strong performance across segments[54] Revenue and Premiums - Ark reported a combined ratio of 77% in Q4 2024, with gross written premiums of $264 million, a 14% increase year-over-year[3][4] - Bamboo's managed premiums increased to $127 million in Q4 2024, more than doubling to $484 million for the full year[20] - Earned insurance premiums for P&C Insurance and Reinsurance increased to $414.5 million in Q4 2024 from $362.4 million in Q4 2023[40] - Total P&C Insurance and Reinsurance revenues for the year ended December 31, 2024, were $1,750.9 million, up from $1,557.8 million in 2023[40] - The net earned premiums for the year ended December 31, 2024, were $28.9 million, up from $26.0 million in 2023, indicating a growth of approximately 11.2%[60] - Bamboo's total revenues for the year ended December 31, 2024, reached $179.8 million, up from $147.1 million in 2023, representing a growth of about 22.2%[66] Investment Performance - Kudu's total revenues were $(9) million in Q4 2024, down from $88 million in Q4 2023, reflecting a challenging market environment[16] - Kudu's portfolio value surpassed $1 billion, with a return on equity of 9% for the full year 2024[18] - The total consolidated portfolio return was -2.3% in Q4 2024, down from 5.8% in Q4 2023[27] - For the year ended December 31, 2024, the total consolidated portfolio return was 6.9%, compared to 11.4% in 2023[28] - The total equity portfolio return for the year ended December 31, 2024, was 10.0%, demonstrating strong performance despite market challenges[78] Expenses and Losses - The company reported general and administrative expenses of $43 million in Q4 2024, down from $52 million in Q4 2023[25] - Total expenses for the year ended December 31, 2024, were $1,923.1 million, an increase of 20% from $1,601.3 million in 2023[42] - The pre-tax loss for the three months ended December 31, 2024, was $(120.7) million, compared to a pre-tax income of $327.8 million in the same period of 2023[42] - Acquisition expenses for P&C Insurance and Reinsurance (Ark/WM Outrigger) increased to $76.3 million in Q4 2024 from $70.0 million in Q4 2023[42] Market and Strategic Outlook - White Mountains expects to incur a loss of approximately $12 million related to California wildfires in Q1 2025[26] - Future outlook includes continued market expansion and potential new product developments to enhance revenue streams[54] - White Mountains anticipates future growth and expansion, with a focus on strategic investments and potential mergers and acquisitions[79] - Forward-looking statements indicate expectations for revenue growth and operational targets, subject to various risks and uncertainties[80] Shareholder Information - As of December 31, 2024, White Mountains owned 17.9 million shares of MediaAlpha, representing a 27% basic ownership interest, with a share price decrease from $18.11 to $11.29[23] - The carrying value of White Mountains's investment in MediaAlpha decreased to $202 million from $323 million in the previous quarter[23] - The company's common shareholder's equity decreased to $4,483.7 million as of December 31, 2024, from $4,610.6 million in the previous quarter[35] Other Financial Metrics - The interest expense for the year ended December 31, 2024, was $19.5 million, a decrease from $21.3 million in 2023[42] - Kudu's GAAP net income for the year ended December 31, 2024, was $104.6 million, compared to $64.5 million in 2023, reflecting a year-over-year increase of approximately 62.3%[62] - Kudu's annualized adjusted EBITDA for the year ended December 31, 2024, was reported at $10.8 million, reflecting a significant increase from the previous year[77] - The company emphasizes the importance of non-GAAP financial measures for evaluating performance and understanding the full earnings profile[75]