White Mountains Insurance(US:WTM)2025-05-07 12:16Financial Performance - White Mountains reported a book value per share of $1,752 as of March 31, 2025, reflecting a 0.4% increase from the previous quarter[200]. - Comprehensive income attributable to common shareholders was $35 million in Q1 2025, a significant decrease from $236 million in Q1 2024, primarily due to unrealized investment losses from MediaAlpha[203]. - White Mountains reported total revenues of $577.8 million for Q1 2025, a decrease of 10.7% from $647.3 million in Q1 2024[218]. - The net income attributable to common shareholders was $33.9 million in Q1 2025, a significant decline of 85.7% compared to $236.4 million in Q1 2024[218]. - Total expenses for White Mountains increased to $505.4 million in Q1 2025, up from $414.7 million in Q1 2024, marking a 21.9% rise[218]. - Total consolidated portfolio return in Q1 2024 was 4.6%, including $211 million of unrealized gains from MediaAlpha; excluding MediaAlpha, the return was 1.2%[265]. - Total consolidated portfolio return for Q1 2025 was 1.7%, down from 4.6% in Q1 2024[313]. - Total consolidated portfolio return excluding MediaAlpha was 2.3% in Q1 2025, compared to 1.2% in Q1 2024[313]. Segment Performance - The Ark/WM Outrigger segment's gross written premiums increased to $1,108 million in Q1 2025 from $872 million in Q1 2024, with a combined ratio of 97% compared to 91% in the prior year[205]. - The P&C Insurance and Reinsurance segment generated revenues of $413.2 million in Q1 2025, up 22.7% from $336.8 million in Q1 2024[218]. - The Ark/WM Outrigger segment's combined ratio increased to 97% in Q1 2025 from 91% in Q1 2024[224]. - Gross written premiums for the Ark/WM Outrigger segment were $1,108 million in Q1 2025, up from $872 million in Q1 2024, representing a 27% increase[224]. - The combined ratio for the Ark/WM Outrigger segment was 96.5% in Q1 2025, compared to 91.4% in Q1 2024, indicating a decline in underwriting performance[231]. - WM Outrigger Re's combined ratio surged to 166% in Q1 2025 from 32% in Q1 2024, primarily due to catastrophe losses[228]. Investment Activities - Kudu reported total revenues of $64 million and pre-tax income of $53 million in Q1 2025, a substantial increase from $11 million and $2 million, respectively, in Q1 2024[210]. - Kudu has deployed $1.06 billion into 28 asset and wealth management firms globally, with combined assets under management of approximately $128 billion as of March 31, 2025[211]. - Kudu's net realized and unrealized investment gains in Q1 2025 were $44 million, a recovery from losses of $(7) million in Q1 2024, driven by improved fair value of Participation Contracts[249]. - The fixed income portfolio totaled $3.6 billion as of March 31, 2025, representing 54% of total invested assets, with a return of 1.7% compared to 0.7% in Q1 2024[266][267]. - The portfolio of common equity securities, MediaAlpha investment, and other long-term investments returned 1.6% in Q1 2025, including $37 million of unrealized losses from MediaAlpha, while the return was 9.5% in Q1 2024[268]. Acquisitions and Dividends - White Mountains acquired a majority interest in Enterprise Electric, LLC on April 1, 2025, marking its first acquisition by WTM Partners[204]. - During Q1 2025, Ark declared a $41 million dividend, with $30 million paid to White Mountains[286]. - Bamboo paid $90 million in dividends to shareholders during Q1 2025, with $65 million paid to White Mountains[293]. - GAIL has the ability to pay a dividend of up to $337 million in 2025, which is 25% of its statutory capital and surplus of $1,347 million as of December 31, 2024[285]. Catastrophe Losses - The Ark segment incurred $75 million in catastrophe losses related to the January 2025 California wildfires, impacting its combined ratio[225]. - Bamboo estimates losses from the January 2025 California wildfires at approximately $160 million, with the majority absorbed by reinsurance partners[254]. Cash and Debt Management - As of March 31, 2025, White Mountains had $566 million of net unrestricted cash, short-term investments, and fixed maturity investments[294]. - Total debt increased to $676.1 million as of March 31, 2025, compared to $562.5 million as of December 31, 2024, resulting in a total debt to total capital ratio of 11.6%[295]. - Cash used for operations was $40 million in Q1 2025, compared to net cash provided from operations of $37 million in Q1 2024[301]. Operational Improvements - Bamboo's MGA adjusted EBITDA was $20 million in Q1 2025, compared to $6 million in Q1 2024, indicating significant operational improvement[253]. - General and administrative expenses in White Mountains's Other Operations decreased to $36 million in Q1 2025 from $50 million in Q1 2024, reflecting lower compensation costs[261]. Regulatory and Compliance - White Mountains's disclosure controls and procedures were evaluated as adequate and effective as of March 31, 2025[321]. - There were no changes to internal control over financial reporting that materially affected White Mountains during Q1 2025[322]. - No legal proceedings were reported by White Mountains[323].